Announcement • Mar 14
Softchoice Corporation's Shares Expects to Delist from TSX on or About March 14, 2025 Softchoice Corporation (“Softchoice” or the “Company”) and World Wide Technology Holding Co. LLC (“WWT”) announced that an affiliate of WWT, 2672989 Alberta ULC (the “Purchaser”), has completed its previously announced acquisition of Softchoice pursuant to a plan of arrangement (the “Arrangement”) whereby the Purchaser has acquired all of the issued and outstanding common shares of Softchoice (the “Shares”) for CAD 24.50 in cash per Share. The Arrangement, which was announced on December 31, 2024, was approved by shareholders of the Company at a special meeting held on March 4, 2025. In connection with the closing of the Arrangement, it is expected that the Shares will be delisted from the Toronto Stock Exchange (the “TSX”) on or about March 14, 2025. Softchoice has also applied to cease to be a reporting issuer under applicable Canadian securities laws. Announcement • Mar 13
World Wide Technology Holding Co, LLC completed the acquisition of Softchoice Corporation (TSX:SFTC) from Birch Hill Equity Partners IV, L.P., managed by Birch Hill Equity Partners and others. World Wide Technology Holding Co, LLC entered into an arrangement agreement to acquire Softchoice Corporation (TSX:SFTC) from Birch Hill Equity Partners IV, L.P., managed by Birch Hill Equity Partners and others for CAD 1.5 billion on December 30, 2024. Under the terms of the agreement, WWT, through an affiliate, will acquire all the issued and outstanding common shares of Softchoice for a price of CAD 24.50 per share. Following completion of the Transaction, it is expected that the outstanding shares will be delisted from the TSX and that Softchoice will cease to be a reporting issuer in all applicable Canadian jurisdictions. A termination fee of CAD 49 million would be payable by Softchoice in certain circumstances.
The transaction is subject to the approval of Softchoice shareholders, court approval and customary closing conditions, including receipt of key regulatory approvals. The transaction is not subject to any financing condition. The board of directors of Softchoice unanimously approved the transaction following receipt of the unanimous recommendation of a committee of independent directors. The transaction is expected to close in late Q1 or early Q2 2025. As of March 4, 2025, the transaction has been approved by the target shareholders. As of March 6, 2025, the transaction was approved by the Ontario Superior Court of Justice. The transaction is expected to close on or about March 13, 2025.
TD Securities Inc. is acting as lead financial advisor to Softchoice, and RBC Dominion Securities Inc. is acting as co-lead financial advisor to Softchoice. Origin Merchant Partners is acting as an independent financial advisor to the Board of Directors of Softchoice. TD Securities Inc. and RBC Dominion Securities Inc. acted as fairness opinion provider to the board of directors of Softchoice and Origin Merchant Partners acted as fairness opinion provider to its Special Committee. Stikeman Elliott LLP is acting as legal advisor to the Softchoice. BDT & MSD and BofA Securities are acting as financial advisors to WWT, while Blake, Cassels & Graydon LLP and Bryan Cave Leighton Paisner LLP are acting as legal advisors to WWT. Laurel Hill Advisory Group acted as information agent to Softchoice. Laurel Hill will be paid fees which are not expected to exceed CAD 0.06 million. TSX Trust Company acted as transfer agent and depositary bank to Softchoice. KPMG LLP acted as an auditor to Softchoice.
World Wide Technology Holding Co, LLC completed the acquisition of Softchoice Corporation (TSX:SFTC) from Birch Hill Equity Partners IV, L.P., managed by Birch Hill Equity Partners and others on March 13, 2025. Pursuant to the Arrangement, World Wide Technology acquired all of the issued and outstanding Shares, for a price of CAD 24.50 per Share, or CAD 1,478.242241 million in the aggregate. In connection with the closing of the Arrangement, it is expected that the Shares will be delisted from the Toronto Stock Exchange on or about March 14, 2025. Softchoice has also applied to cease to be a reporting issuer under applicable Canadian securities laws. Announcement • Jan 02
Softchoice Expects to Delist from TSX Softchoice Corporation and World Wide Technology announced that they have entered into an arrangement agreement for Softchoice to be acquired by WWT, via an all-cash transaction, which values Softchoice at an enterprise value of approximately CAD 1.8 billion. The company intends to hold the shareholders' meeting in March 2025, where the transaction will be considered and voted upon by shareholders of record. The transaction is also subject to court approval and customary closing conditions, including receipt of key regulatory approvals, is not subject to any financing condition and, assuming the timely receipt of all required key regulatory approvals, is expected to close in late First Quarter or early Second Quarter 2025. Following completion of the transaction, it is expected that the outstanding shares will be delisted from the TSX and that Softchoice will cease to be a reporting issuer in all applicable Canadian jurisdictions. Announcement • Jan 01
World Wide Technology Holding Co, LLC entered into an arrangement agreement to acquire Softchoice Corporation (TSX:SFTC) from Birch Hill Equity Partners and others for CAD 1.5 billion. World Wide Technology Holding Co, LLC ("WWT") entered into an arrangement agreement to acquire Softchoice Corporation (TSX:SFTC) from Birch Hill Equity Partners and others for CAD 1.5 billion on December 31, 2024. Under the terms of the agreement, WWT, through an affiliate, will acquire all the issued and outstanding common shares of Softchoice for a price of CAD 24.50 per share. Following completion of the Transaction, it is expected that the outstanding shares will be delisted from the TSX and that Softchoice will cease to be a reporting issuer in all applicable Canadian jurisdictions. A termination fee of CAD 49 million would be payable by Softchoice in certain circumstances.
The transaction is subject to the approval of Softchoice shareholders, court approval and customary closing conditions, including receipt of key regulatory approvals. The transaction is not subject to any financing condition. The board of directors of Softchoice unanimously approved the transaction following receipt of the unanimous recommendation of a committee of independent directors. The transaction is expected to close in late Q1 or early Q2 2025.
TD Securities Inc. is acting as lead financial advisor to Softchoice, and RBC Dominion Securities Inc. is acting as co-lead financial advisor to Softchoice. Origin Merchant Partners is acting as an independent financial advisor to the Board of Directors of Softchoice. TD Securities Inc. and RBC Dominion Securities Inc. acted as fairness opinion provider to the board of directors of Softchoice and Origin Merchant Partners acted as fairness opinion provider to its Special Committee. Stikeman Elliott LLP is acting as legal advisor to the Softchoice. BDT & MSD and BofA Securities are acting as financial advisors to WWT, while Blake, Cassels & Graydon LLP and Bryan Cave Leighton Paisner LLP are acting as legal advisors to WWT. Upcoming Dividend • Dec 24
Upcoming dividend of CA$0.13 per share Eligible shareholders must have bought the stock before 31 December 2024. Payment date: 10 January 2025. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Canadian dividend payers (6.4%). In line with average of industry peers (2.4%). Declared Dividend • Nov 11
Third quarter dividend of CA$0.13 announced Shareholders will receive a dividend of CA$0.13. Ex-date: 31st December 2024 Payment date: 10th January 2025 Dividend yield will be 21%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 19% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 47% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: EPS: US$0.15 (up from US$0.14 in 3Q 2023). Revenue: US$189.2m (up 3.9% from 3Q 2023). Net income: US$9.03m (up 8.0% from 3Q 2023). Profit margin: 4.8% (up from 4.6% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) missed analyst estimates by 3.2%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Canada. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Nov 08
Softchoice Corporation Declares Quarterly Dividend for the Period from October 1, 2024 to December 31, 2024, Payable on January 10, 2025 On November 7, 2024, the board of Softchoice Corporation declared a quarterly dividend of CAD 0.13 per common share for the period from October 1, 2024 to December 31, 2024 to be paid on January 10, 2025 to shareholders of record at the close of business on December 31, 2024. Announcement • Oct 07
Softchoice Corporation to Report Q3, 2024 Results on Nov 08, 2024 Softchoice Corporation announced that they will report Q3, 2024 results Pre-Market on Nov 08, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of CA$0.13 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 October 2024. Payout ratio is a comfortable 55% but the company is paying out more than the cash it is generating. Trailing yield: 2.8%. Lower than top quartile of Canadian dividend payers (5.8%). Higher than average of industry peers (1.3%). Declared Dividend • Aug 14
Second quarter dividend of CA$0.13 announced Shareholders will receive a dividend of CA$0.13. Ex-date: 27th September 2024 Payment date: 11th October 2024 Dividend yield will be 25%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 19% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 70% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 11
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: US$0.20 (down from US$0.24 in 2Q 2023). Revenue: US$193.0m (down 7.0% from 2Q 2023). Net income: US$12.1m (down 14% from 2Q 2023). Profit margin: 6.3% (down from 6.8% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) also missed analyst estimates by 3.6%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Canada. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Aug 09
Softchoice Corporation Declares Quarterly Dividend for the Period from July 1, 2024 to September 30, 2024, payable October 11, 2024 Softchoice Corporation declared a quarterly dividend of CAD. $0.13 per Common Share for the period from July 1, 2024 to September 30, 2024 to be paid on October 11, 2024 to shareholders of record at the close of business on September 30, 2024, representing an approximate 18% increase over Third Quarter 2023. The dividend to which this notice relates is an eligible dividend for tax purposes. Announcement • Jul 10
Softchoice Corporation to Report Q2, 2024 Results on Aug 09, 2024 Softchoice Corporation announced that they will report Q2, 2024 results Pre-Market on Aug 09, 2024 Announcement • May 31
Softchoice Corporation Elects New Director, Martha Tory At the AGM, held on May 30, 2024, Softchoice Corporation's shareholders elected one new director, Martha Tory. Major Estimate Revision • May 15
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$839.4m to US$783.5m. EPS estimate also fell from US$0.80 per share to US$0.625 per share. Net income forecast to grow 3.9% next year vs 13% growth forecast for Electronic industry in Canada. Consensus price target down from CA$21.95 to CA$20.60. Share price fell 7.6% to CA$16.83 over the past week. Declared Dividend • May 12
First quarter dividend of CA$0.13 announced Shareholders will receive a dividend of CA$0.13. Ex-date: 28th June 2024 Payment date: 12th July 2024 Dividend yield will be 27%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is well covered by both earnings (47% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 19% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 09
Softchoice Corporation Declares Quarterly Dividend for the Period from April 1, 2024 to June 30, 2024, Payable on July 12, 2024 On May 7, 2024, the Board of Softchoice Corporation declared a quarterly dividend of CAD 0.13 per Common Share for the period from April 1, 2024 to June 30, 2024 to be paid on July 12, 2024 to shareholders of record at the close of business on June 28, 2024, representing an approximate 18% increase over Second Quarter 2023. Reported Earnings • May 08
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: US$0.02 loss per share (down from US$0.078 profit in 1Q 2023). Revenue: US$169.8m (down 19% from 1Q 2023). Net loss: US$1.03m (down 123% from profit in 1Q 2023). Revenue missed analyst estimates by 16%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Electronic industry in Canada. Announcement • Apr 09
Softchoice Corporation to Report Q1, 2024 Results on May 08, 2024 Softchoice Corporation announced that they will report Q1, 2024 results Pre-Market on May 08, 2024 Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CA$17.61, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Electronic industry in North America. Total returns to shareholders of 32% over the past year. Upcoming Dividend • Mar 20
Upcoming dividend of CA$4.13 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 12 April 2024. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Canadian dividend payers (6.4%). Higher than average of industry peers (1.3%). Announcement • Mar 19
Softchoice Corporation, Annual General Meeting, May 30, 2024 Softchoice Corporation, Annual General Meeting, May 30, 2024. Recent Insider Transactions Derivative • Mar 14
Insider exercised options to buy CA$2.8m worth of stock. On the 7th of March, Jeff Reis exercised options to buy 132k shares at a strike price of around CA$2.02, costing a total of CA$267k. This transaction amounted to 207% of their direct individual holding at the time of the trade. Since March 2023, Jeff has owned 63.96k shares directly. Company insiders have collectively bought CA$1.5m more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • Mar 08
Fourth quarter dividend of CA$4.13 announced Shareholders will receive a dividend of CA$4.13. Ex-date: 27th March 2024 Payment date: 12th April 2024 Dividend yield will be 21%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 13% per year over the past 3 years and payments have been stable during that time. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 06
Third quarter 2023 earnings released: EPS: US$0.14 (vs US$0.14 loss in 3Q 2022) Third quarter 2023 results: EPS: US$0.14 (up from US$0.14 loss in 3Q 2022). Revenue: US$182.2m (down 18% from 3Q 2022). Net income: US$8.35m (up US$16.3m from 3Q 2022). Profit margin: 4.6% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Electronic industry in Canada. Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CA$21.14, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 17x in the Electronic industry in North America. Total returns to shareholders of 32% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CA$40.64 per share. Announcement • Feb 02
Softchoice Launches Subscription Licensing Services Softchoice has launched SAM+, a suite of software asset management solutions and services to efficiently manage the complexities of subscription-based licensing. SAM+ comprises solutions for every stage of the subscription journey, including assessment, planning, transition, and deployment and adoption services that can be implemented independently or integrated, depending on an organization's maturity. With more than 680 technical resources, including partner-specific experts, Softchoice currently manages more than 6,400 enterprise agreements and software contracts, and delivers more than 630 software assessments and more than 1,000 Software Lifecycle Service engagements annually. Customers benefit from Softchoice's extensive multi-vendor support, with industry partnerships across major software vendors, including Microsoft, VMware, Cisco, Adobe, and Red Hat. A range of high value and low commitment offers with several fully funded services also mean that companies partnering with Softchoice can see cost savings without upfront investments. Announcement • Jan 30
Softchoice Corporation to Report Q4, 2023 Results on Mar 05, 2024 Softchoice Corporation announced that they will report Q4, 2023 results Pre-Market on Mar 05, 2024 New Risk • Dec 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (180% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Upcoming Dividend • Dec 21
Upcoming dividend of CA$0.11 per share at 2.8% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 12 January 2024. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Canadian dividend payers (6.5%). Higher than average of industry peers (1.4%). Recent Insider Transactions Derivative • Nov 19
Insider exercised options and sold CA$806k worth of stock On the 15th of November, Karen Scott exercised options to acquire 45k shares at no cost and sold these for an average price of CA$17.90 per share. This trade did not impact their existing holding. Since March 2023, Karen has owned 8.43k shares directly. Company insiders have collectively bought CA$608k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Nov 10
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$0.14 (up from US$0.14 loss in 3Q 2022). Revenue: US$182.2m (down 18% from 3Q 2022). Net income: US$8.35m (up US$16.3m from 3Q 2022). Profit margin: 4.6% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) also missed analyst estimates by 3.4%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Canada. Announcement • Oct 12
Softchoice Corporation to Report Q3, 2023 Results on Nov 09, 2023 Softchoice Corporation announced that they will report Q3, 2023 results on Nov 09, 2023 Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CA$18.00, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 17x in the Electronic industry in North America. Total loss to shareholders of 5.2% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CA$31.53 per share. Recent Insider Transactions Derivative • Sep 21
CEO, President & Director exercised options to buy CA$2.0m worth of stock. On the 15th of September, Andrew Caprara exercised options to buy 127k shares at a strike price of around CA$15.05, costing a total of CA$1.9m. This transaction amounted to 82% of their direct individual holding at the time of the trade. Since December 2022, Andrew's direct individual holding has increased from 94.44k shares to 154.25k. Company insiders have collectively bought CA$1.1m more than they sold, via options and on-market transactions, in the last 12 months. Upcoming Dividend • Sep 21
Upcoming dividend of CA$0.11 per share at 2.8% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 13 October 2023. Payout ratio is a comfortable 59% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Canadian dividend payers (6.3%). Higher than average of industry peers (1.5%). Major Estimate Revision • Aug 18
Consensus revenue estimates decrease by 11%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$942.5m to US$838.3m. EPS estimate increased from US$0.688 to US$0.71 per share. Net income forecast to grow 55% next year vs 10% growth forecast for Electronic industry in Canada. Consensus price target broadly unchanged at CA$20.85. Share price was steady at CA$15.30 over the past week. Reported Earnings • Aug 13
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: US$0.24 (up from US$0.13 in 2Q 2022). Revenue: US$207.6m (down 18% from 2Q 2022). Net income: US$14.1m (up 81% from 2Q 2022). Profit margin: 6.8% (up from 3.1% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 18%. Earnings per share (EPS) exceeded analyst estimates by 53%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Electronic industry in Canada. Announcement • Aug 12
Softchoice Corporation Declares Quarterly Dividend, Payable on October 13, 2023 On August 10, 2023, the Softchoice Corporation declared a quarterly dividend of CAD 0.11 per Common Share for the period from July 1, 2023, to September 30, 2023, to be paid on October 13, 2023, to shareholders of record at the close of business on September 29, 2023, representing an approximate 22% increase over third quarter of 2022. Announcement • Jul 12
Softchoice Corporation to Report Q2, 2023 Results on Aug 11, 2023 Softchoice Corporation announced that they will report Q2, 2023 results Pre-Market on Aug 11, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of CA$0.11 per share at 2.5% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 14 July 2023. Payout ratio is a comfortable 71% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Canadian dividend payers (6.3%). Higher than average of industry peers (1.5%). Announcement • Jun 03
Softchoice Corporation Announces Election of Andrew Caprara as Director Softchoice Corporation announced election of Andrew Caprara as director at the Annual General Meeting held on May 31, 2023. Recent Insider Transactions Derivative • May 29
Senior Vice President of Sales exercised options and sold CA$131k worth of stock On the 24th of May, Jeff Knowlton exercised options to acquire 8k shares at no cost and sold these for an average price of CA$17.40 per share. This trade did not impact their existing holding. Since September 2022, Jeff has owned 56.59k shares directly. Company insiders have collectively sold CA$3.2m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • May 22
Senior VP of Legal recently sold CA$340k worth of stock On the 16th of May, Habeeb Syed sold around 20k shares on-market at roughly CA$17.00 per share. This transaction amounted to 23% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$2.5m more than they bought in the last 12 months. Announcement • May 13
Softchoice Corporation Declares Quarterly Dividend for the Period from April 1, 2023, to June 30, 2023, Payable on July 14, 2023 Softchoice Corporation announced that on May 11, 2023, the Board declared a quarterly dividend of CAD 0.11 per Common Share for the period from April 1, 2023, to June 30, 2023, to be paid on July 14, 2023, to shareholders of record at the close of business on June 30, 2023. Reported Earnings • May 12
First quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2023 results: EPS: US$0.08 (up from US$0.063 in 1Q 2022). Revenue: US$208.8m (down 6.3% from 1Q 2022). Net income: US$4.54m (up 22% from 1Q 2022). Profit margin: 2.2% (up from 1.7% in 1Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) exceeded analyst estimates by 129%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electronic industry in Canada. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CA$16.16, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Electronic industry in North America. Total loss to shareholders of 27% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CA$31.30 per share. Upcoming Dividend • Mar 23
Upcoming dividend of CA$0.11 per share at 2.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 14 April 2023. Payout ratio is a comfortable 72% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Canadian dividend payers (6.0%). Higher than average of industry peers (1.5%). Reported Earnings • Mar 10
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: US$0.37 (up from US$0.21 loss in FY 2021). Revenue: US$928.2m (up 2.8% from FY 2021). Net income: US$21.8m (up US$33.3m from FY 2021). Profit margin: 2.3% (up from net loss in FY 2021). Revenue missed analyst estimates by 5.5%. Earnings per share (EPS) exceeded analyst estimates by 24%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Electronic industry in Canada. Announcement • Feb 09
Softchoice Corporation to Report Q4, 2022 Results on Mar 09, 2023 Softchoice Corporation announced that they will report Q4, 2022 results Pre-Market on Mar 09, 2023 Upcoming Dividend • Dec 22
Upcoming dividend of CA$0.09 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 13 January 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 2.1%. Lower than top quartile of Canadian dividend payers (6.0%). Higher than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 21% share price gain to CA$16.45, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Electronic industry in North America. Total loss to shareholders of 20% over the past year. Recent Insider Transactions Derivative • Nov 24
SVP of People & Growth exercised options and sold CA$311k worth of stock On the 18th of November, Karen Scott exercised options to acquire 21k shares at no cost and sold these for an average price of CA$15.09 per share. This trade did not impact their existing holding. Since March 2022, Karen has owned 8.43k shares directly. Company insiders have collectively sold CA$5.5m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 48% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from US$999.8m to US$981.8m. EPS estimate also fell from US$0.53 per share to US$0.28 per share. Net income forecast to grow 237% next year vs 11% growth forecast for Electronic industry in Canada. Consensus price target down from CA$26.00 to CA$23.41. Share price fell 6.1% to CA$16.03 over the past week. Reported Earnings • Nov 12
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: US$0.14 loss per share (further deteriorated from US$0.037 loss in 3Q 2021). Revenue: US$222.1m (up 12% from 3Q 2021). Net loss: US$7.96m (loss widened 259% from 3Q 2021). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Electronic industry in Canada. Announcement • Nov 11
Softchoice Corporation Declares Quarterly Dividend for the Period from October 1, 2022 to December 31, 2022, Payable on January 13, 2023 Softchoice Corporation announced On November 9, 2022, the Board declared a quarterly dividend of CAD 0.09 per Common Share for the period from October 1, 2022 to December 31, 2022, to be paid on January 13, 2023 to shareholders of record at the close of business on December 31, 2022. Upcoming Dividend • Sep 21
Upcoming dividend of CA$0.09 per share Eligible shareholders must have bought the stock before 28 September 2022. Payment date: 14 October 2022. Payout ratio is on the higher end at 96%, however this is supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Canadian dividend payers (5.7%). Higher than average of industry peers (1.6%). Recent Insider Transactions • Aug 27
Independent Director recently sold CA$65k worth of stock On the 19th of August, Anthony Gibbons sold around 3k shares on-market at roughly CA$21.81 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$7.7m more than they bought in the last 12 months. Reported Earnings • Aug 12
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: US$0.13 (up from US$0.30 loss in 2Q 2021). Revenue: US$254.3m (up 20% from 2Q 2021). Net income: US$7.79m (up US$22.7m from 2Q 2021). Profit margin: 3.1% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 9.2%. Earnings per share (EPS) missed analyst estimates by 33%. Over the next year, revenue is forecast to grow 9.1%, compared to a 17% growth forecast for the industry in Canada. Announcement • Jul 06
Softchoice Corporation to Report Q2, 2022 Results on Aug 12, 2022 Softchoice Corporation announced that they will report Q2, 2022 results Pre-Market on Aug 12, 2022 Upcoming Dividend • Jun 22
Upcoming dividend of CA$0.09 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 15 July 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Canadian dividend payers (5.2%). In line with average of industry peers (1.7%). 