SFTC Softchoice Corporation

Softchoice reiterates 2022 outlook, announces Q2 dividend, and provides update on share buybacks

Softchoice Corporation (“Softchoice” or the “Company”) (TSX: SFTC) today announced its financial results for the quarter ended March 31, 2022 (“Q1 2022”). The Company also maintained its 2022 Outlook, declared its Q2 dividend, and provided a progress update on its normal course issuer bid (share buyback). Softchoice will hold a conference call/webcast to discuss its results today, May 12, 2022, at 8:30 a.m. ET. Unless otherwise noted, all dollar ($) amounts are in U.S. dollars.

Selected Q1 2022 Financial Highlights

• Gross Sales increased by 7.3% to $466.6 million from $434.9 million in Q1 2021, driven by a 10.4% increase in Software & Cloud solutions. Net sales decreased by 4.4% to $222.9 million from $233.2 million in Q1 2021. Gross Sales grew as net sales declined due to an increase in the mix of Software & Cloud solutions within total Gross Sales, which are primarily recorded on a net basis for accounting purposes.
• Gross profit increased by 6.4% to $67.1 million, from $63.0 million in Q1 2021, driven by 10.9% growth in Software & Cloud solutions. The increase in Software & Cloud was driven by high growth in our public cloud and security solutions.
• Income from operations increased by $2.3 million to $3.8 million, from $1.5 million in Q1 2021.
• Adjusted EBITDA decreased by 4.9% to $10.0 million, from $10.5 million in Q1 2021, as Adjusted Cash Operating Expenses increased by $4.6 million, which was partially offset by the increase in gross profit of $4.1 million. This was driven by the decrease in Canada Emergency Wage Subsidy (“CEWS”) ($0.5 million in Q1 2021 versus $nil in Q1 2022), accelerated growth investments made by the Company in Q1 2022, and increases in certain variable compensation costs which are tied to gross profit performance.
• Increased the quarterly dividend to C$0.09 per common share, which was paid in April 2022.
• Initiated share buyback program.

Selected Q1 2022 Business Highlights

• Made significant growth investments in our technical resources, salesforce, and cloud strategies.
• Achieved the elite Managed Services Provider designation in the Google Cloud Partner Advantage program, demonstrating the Company’s continued success in enabling cloud transformation at scale with technical expertise in Google Cloud Platform.
• Subsequent to Q1 2022, Softchoice was named as the 2022 VMware Partner of the Year, which is a global distinction awarded to a single partner each year as part of VMware’s annual Partner Achievement Awards. VMware recognized Softchoice for delivering the most customer value and impact to their organizations, creating on-prem to cloud migration opportunities.
• Also subsequent to Q1 2022, Softchoice was named a Best Workplace™ in Canada by the Great Place to Work® Institute for the 17th straight year. This followed the Company’s recognition as a "Best Place to Work for LGBTQ Equality" in the Human Rights Campaign’s 2022 Corporate Equality Index, receiving a perfect score.

Commenting on Q1 2022 and the Company's 2022 outlook, Vince De Palma, Softchoice’s President & Chief Executive Officer, said:

“We experienced a solid first quarter of organic growth including double digit growth in our Software & Cloud solutions, led by our public cloud and security offerings. We generated record gross profit per customer and an exceptional Revenue Retention Rate of 112%, reflecting execution of our strategy to deliver advanced IT solutions to our customers and drive deeper engagements with them. We also accelerated our organic growth investments including an increase of more than 130 team members over the past year, half of whom were added in the first quarter of 2022. Despite a competitive labor market, our recognized brand and culture combined with our strategic focus on advanced IT solutions has resulted in faster than anticipated recruiting. With these personnel in revenue generating sales and technical sales roles, combined with double digit growth in our billings in Q1, we are reaffirming our 2022 outlook as well as restating our expectation that our growth rates will progress through the year as we realize the benefit of these investments.”

Commenting on Softchoice’s financial performance and capital allocation plans, Bryan Rocco, Softchoice’s Chief Financial Officer, said:

"Gross profit growth of more than 6% in Q1 was driven by approximately 11% growth in Software & Cloud. This was partially offset by lower growth in Hardware due to continued global supply chain constraints as well a decline in Services gross margin due to our increase in team members, who are recorded in Cost of Sales, as part of our strategy to increase our capabilities to deliver more advanced services. This decline in Services is not anticipated to continue as we recorded double digit growth in Services billings in the quarter. Excluding the impact of CEWS, Adjusted EBITDA was flat year over year as our gross profit growth was used to fund accelerated investments in our technical resources, salesforce, and cloud strategies, as reflected by a 7% growth in our headcount. Additionally, we incurred accelerated commission costs in Q1, driven by elevated billing activity in strategic focus areas yielding higher commission rates. We continue to generate strong free cash flow, which we have used to fund our growth investments, pay our dividend and initiate our active and ongoing share buyback program.”

Financial Summary1

US$ M except per share amounts and percentages

Q1 2022

Q1 2021

Growth %

Gross Sales

466.6

434.9

7.3%

Net sales

222.9

233.2

(4.4%)

Gross profit

67.1

63.0

6.4%

Adjusted EBITDA

10.0

10.5

(4.9%)

as a Percentage of Gross Profit

14.8%

16.6%

 

Income from operations

3.8

1.5

151.9%

Net income (loss)

3.7

(2.0)

NMF

Net income (loss) per Diluted Share (attributable to the Owners of the Company)

$0.06

$(0.04)

NMF

Adjusted Net Income

4.6

2.6

79.1%

Adjusted EPS (Diluted)

$0.07

$0.05

40.0%

 

 

 

 

US$ M except percentages

Q1 2022

Q1 2021

Growth %

Gross Sales Mix by IT Solution Type*:

 

 

 

Software & Cloud

299.0

270.7

10.4%

Services

24.7

24.2

2.0%

Hardware

142.9

139.9

2.1%

Gross Profit Mix by IT Solution Type*:

 

 

 

Software & Cloud

40.3

36.4

10.9%

as a percentage of Gross Sales

13.5%

13.4%

 

Services

6.5

7.1

(8.8%)

as a percentage of Gross Sales

26.2%

29.3%

 

Hardware

20.2

19.5

3.7%

as a percentage of Gross Sales

14.2%

14.0%

 

* Amounts may not add to total due to rounding

Financial Position

The Company ended Q1 2022 in strong financial condition, with approximately $189 million in available funds from cash on hand and through its $275 million revolving credit facility. Including internally generated cash flows, the Company anticipates having significant resources with which to pursue growth opportunities and enhance shareholder returns.

The Company had approximately $98.3 million in loans and borrowings outstanding at the end of Q1 2022. Net debt, equating to loans and borrowings plus lease liabilities less cash-on-hand, was $108.4 million at March 31, 2022, a decline from $185.0 million at March 31, 2021. Net debt increased from $85.9 million at December 31, 2021 due primarily to $18.8 million in non-cash working capital outflows in Q1 2022 driven by typical seasonality of our business. The quarter end ratio of net debt to Adjusted EBITDA for the trailing twelve-months ended March 31, 2022 was 1.6x compared with 2.7x at March 31, 2021, and 1.2x at December 31, 2021.

Dividend

The Board of Directors (the “Board”) of the Company has declared a quarterly cash dividend of C$0.09 per common share of the Company (each, a “Common Share”) for the period from April 1, 2022 to June 30, 2022, to be paid as of July 15, 2022 to shareholders of record at the close of business on June 30, 2022. The Dividend to which this notice relates is an eligible dividend for tax purposes.

NCIB

On March 3, 2022, the Board approved the commencement of a normal course issuer bid (“NCIB”) through the facilities of the TSX and/or alternative Canadian trading systems to purchase and cancel up to 3,018,528 of the Company’s Common Shares, representing approximately 10% of the public float of 30,185,282, during the twelve-month period commencing March 8, 2022 and ending March 7, 2023. During Q1 2022, the Company repurchased and cancelled 128,986 Common Shares at an average price of Cdn. $24.42 per share. Subsequent to quarter end in April, the Company repurchased and cancelled an additional 174,367 Common Shares at an average price of Cdn. $24.03 per share.

In connection with the NCIB, the Company entered into an automatic purchase plan effective as of March 8, 2022 with a designated broker which allows for the purchase for cancellation of Common Shares, subject to certain trading parameters, by the Company’s designated broker during times when Softchoice would ordinarily not be active in the market due to applicable regulatory restrictions or self-imposed blackout periods. Outside of these periods, the Common Shares will be repurchased by the Company at our discretion under the NCIB.

Our Outlook 2

Softchoice is reiterating its 2022 financial outlook that was originally provided on March 4, 2022:

 

Fiscal 2022 Outlook

Gross Profit

>$320 million (>11.5% growth over Fiscal 2021)

 

Adjusted EBITDA as a Percentage of Gross Profit

~30% margin (Inclusive of ~$25 million of Project Monarch Uplift)

 

Adjusted Free Cash Flow Conversion

Approximately 90%

Our outlook is based on certain assumptions and factors (including those relating to our view of the drivers of, and expectations related to, our anticipated growth), including the key assumptions and factors set out in the AIF (as defined below) under ‘Our Outlook’. Assumes an average U.S.$ / C$ exchange rate of 0.79 in Fiscal 2022. For important information on risk factors, refer to “Forward Looking Information Disclaimer” later in this news release.

Quarterly Conference Call

Softchoice’s management team will hold a conference call to discuss our first quarter 2022 results today at 8:30 a.m. (ET).

DATE: Thursday, May 12, 2022

TIME: 8:30 a.m. Eastern Time

DIAL-IN: 416-764-8659 or 1-888-664-6392, Confirmation # 47729546

WEBCAST: https://produceredition.webcasts.com/starthere.jsp?ei=1542926&tp_key=f24eae15b0

TAPED REPLAY: 416-764-8677 or 1-888-390-0541, Replay Code 729546 # (Available until May 19, 2022)

A link to the webcast will also be available on the Events page of the Investors section of Softchoice’s website at http://investors.softchoice.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

Capitalized Terms

Capitalized terms used in this release, including Project Monarch, and terms we use to describe our IT solution types including Software & Cloud, Services, and Hardware and sales channels including SMB, Commercial, and Enterprise are described in the Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three months ended March 31, 2022 (the “Q1 2022 MD&A”), and/or defined in our AIF (as defined below) filed on SEDAR and available on the Company’s investor relations website http://investors.softchoice.com.

1 Non-IFRS Measures

This news release makes reference to certain non-IFRS measures and other measures. These measures are not recognized measures under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including “Adjusted EBITDA”, “Adjusted EBITDA as a Percentage of Gross Profit”, “Adjusted Cash Operating Expenses”, “Adjusted Net Income (Loss)”, “Adjusted EPS”, “Adjusted Free Cash Flow Conversion”, and “Gross Sales”. These non-IFRS measures and other measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management uses these non-IFRS measures and other measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. We also believe that securities analysts, investors and other interested parties frequently use certain of these non-IFRS measures and other measures in the evaluation of issuers. As required by Canadian securities laws, we reconcile the non-IFRS measures to the most comparable IFRS measures. For more information on non-IFRS measures and other measures, see the Q1 2022 MD&A filed on SEDAR and available on the Company’s investor relations website http://investors.softchoice.com

Reconciliations of Non-IFRS Financial Measures

(Information in thousands of U.S. dollars, unless otherwise stated)

Three Months Ended

March 31,

Reconciliation of Net Sales to Gross Sales

2022

2021

Net sales

222,922

233,230

Net adjustment for sales transacted as agent

243,687

201,648

Gross Sales

466,609

434,878

 

Reconciliation of Operating Expenses to Adjusted Cash Operating Expenses

 

 

Operating expenses

63,226

61,488

Depreciation and amortization

(4,873)

(5,322)

Equity-settled share-based compensation and other costs (1)

(572)

(2,810)

Non-recurring compensation and other costs (2)

(20)

(282)

Business transformation non-recurring costs (3)

(561)

(273)

IPO related costs (4)

–

(253)

Non-recurring legal provision (5)

(87)

–

Adjusted Cash Operating Expenses

57,113

52,548

 

 

 

Reconciliation of Income from operations to Adjusted EBITDA

 

 

Income from operations

3,839

1,524

Depreciation and amortization

4,873

5,322

Equity-settled share-based compensation and other costs (1)

572

2,810

Non-recurring compensation and other costs (2)

20

282

Business transformation non-recurring costs (3)

561

273

IPO related costs (4)

–

253

Non-recurring legal provision (5)

87

–

Adjusted EBITDA

9,952

10,464

Adjusted EBITDA as a Percentage of Gross Profit (6)

14.8%

16.6%

 

 

 

Reconciliation of Net Income (Loss) to Adjusted Net Income

 

 

Net income (loss)

3,729

(1,996)

Amortization of intangible assets

3,208

3,219

Equity-settled share-based compensation and other costs (1)

572

2,810

Non-recurring compensation and other costs (2)

20

282

Business transformation non-recurring costs (3)

561

273

IPO related costs (4)

–

253

Non-recurring legal provision (5)

87

–

Related party debt interest (7)

–

1,015

Subordinated debt interest (7)

–

263

Interest expense on accretion of non-interest bearing notes (8)

–

120

Gain on lease modification (9)

(209)

–

Foreign exchange gain (10)

(2,654)

(1,883)

Related tax effects (11)

(675)

(1,766)

Adjusted Net Income

4,639

2,590

Weighted Average Number of Shares (Basic)

59,512,239

45,240,406

Weighted Average Number of Shares (Diluted)

63,392,680

56,309,860

Adjusted EPS (Basic) (12)

0.08

0.06

Adjusted EPS (Diluted) (12)

0.07

0.05

 

Reconciliation of Net Cash (used in) Provided by Operating Activities to Adjusted Free Cash Flow

Trailing Twelve-Months Ended March 31,

2022

2021

Net cash provided by (used in) operating activities (13)

32,611

12,839

Adjusted for:

 

 

Share-based compensation and other costs (14)

33,361

3,156

Non-recurring compensation and other costs (2)

426

2,752

Business transformation non-recurring costs (3)

1,861

11,019

IPO related costs (4)

2,818

253

Follow-On Offering costs (15)

287

–

Non-recurring legal provision (5)

1,801

–

Realized foreign exchange gain

(5,908)

(1,094)

Finance and other expense (income) (16)

806

(62)

Cash taxes paid

8,378

5,198

Cash interest paid

4,990

8,781

Change in non-cash operating working capital (13)

(12,862)

24,548

Adjusted EBITDA

68,569

67,390

Maintenance Capex

(1,895)

(810)

IFRS 16 lease payments (17)

(7,123)

(6,829)

Adjusted Free Cash Flow

59,551

59,751

Adjusted Free Cash Flow Conversion

87%

89%

 

 

 

Notes (Refer to the Q1 2022 MD&A for description of the sections with parentheses within these Notes)

(1)

These expenses represent costs recognized in connection with the Company’s legacy option plan and omnibus long-term equity incentive plan, pursuant to which options granted are fair valued at the time of grant using the Black-Scholes option pricing model and adjusted for any plan modifications, and expenses related to RSUs and DSUs (as defined below). Other costs relate to the employee investment plan and the long-term profit-sharing plan, which were dissolved upon the completion of the IPO, and fair value adjustments in relation to existing equity-based arrangements. See “Share Information Prior to the Completion of the Offering”.

(2)

These expenses include compensation costs relating to severance and other costs comprised of professional, legal, consulting, accounting and management fees that are non-recurring and are sporadic in nature as they primarily relate to costs incurred in connection with shareholder distributions.

(3)

These costs in Fiscal 2021 relate to the implementation of Project Monarch, which were largely comprised of one-time third-party consulting expenses, personnel costs for dedicated internal resources and software related costs. All costs relating to Project Monarch were segregated for tracking purposes and are monitored on a regular basis. The costs in Q1 2022 relate to system enhancements after the implementation of Project Monarch. As at March 31, 2022, $49.8 million has been invested in operating and capital expenditures for Project Monarch and related system enhancements. See “Summary of Factors Affecting Performance – Business Transformation (Project Monarch)”.

(4)

In connection with the IPO, the Company incurred expenses related to professional fees, legal, consulting, accounting and compensation that would otherwise not have been incurred and therefore are non-recurring. These costs have been separately identified and adjusted for clarity. There were $253 of IPO related costs which were incurred in Q1 2021 that were previously classified under non-recurring compensation and other costs; these costs have been reclassified into IPO related costs in Q1 2021 amount shown.

(5)

The Company has settled certain legal claims, without admission of liability or wrongdoing, in respect of U.S. wage and hour disputes and has provisioned $1.8 million for such settlements, which are non-recurring in nature.

(6)

Adjusted EBITDA as a Percentage of Gross Profit is calculated as Adjusted EBITDA divided by gross profit. See “Non-IFRS Measures and Other Measures – Non-IFRS Measures – Adjusted EBITDA and Adjusted EBITDA as a Percentage of Gross Profit”.

(7)

Related party and subordinated debt interest was settled at the time of Offering. For additional details see “Related Party Transactions”, “Subordinated Debt Information” and “Share Information Prior to the Completion of the Offering”.

(8)

This represents the expense relating to the accretion of the present value of the non-interest bearing notes recognized over the term of the notes. These notes were settled at the time of Offering. See also “Related Party Transactions”, “Subordinated Debt Information” and “Share Information Prior to the Completion of the Offering”.

(9)

Gain on lease modification recognized in Q1 2022 as a result the derecognition of the lease liabilities related to rental parking as the associated office space has been subleased.

(10)

Foreign exchange gain includes both realized and unrealized amounts.

(11)

This relates to the tax effects of the adjusting items, which was calculated by applying the statutory tax rate of 26.5% and adjusting for any permanent differences and capital losses. The comparative period has been reclassified due to a change in tax impact on adjusted items.

(12)

Basic Adjusted EPS is calculated using the weighted average number of shares outstanding during the period. Diluted Adjusted EPS includes the dilutive impact of the stock options in addition to the weighted average number of shares outstanding during the period. See “Non-IFRS Measures and Other Measures – Non-IFRS Measures – Adjusted Net Income (Loss) and Adjusted EPS”.

(13)

The Q1 2022 TTM figure includes adjusted figures for reclassification of costs between net cash provided by operating activities and change in non-cash operating working capital.

(14)

Share-based compensation represents costs recognized in connection with repurchases of stock options from terminated employees. Included in the trailing twelve months ended Q1 2022, there was $16.9 million relating to Cash-Out Agreements in conjunction with the IPO and $7.7 million relating to Cash-Out Agreements in conjunction with the Follow-On Offering. Other costs are comprised of the employee investment plan and the long-term profit-sharing plan, which were dissolved in connection with the IPO; and fair value adjustments in relation to existing equity-based arrangements. As a result of the IPO, a $6.1 million fair value adjustment was triggered on an existing equity-based arrangement which was dissolved thereafter. See “Share Information Prior to the Completion of the Offering”.

(15)

In connection with the Follow-On Offering, the Company incurred expenses related to professional fees, legal, and accounting fees that would otherwise not have been incurred and therefore are non-recurring. These costs have been separately identified and adjusted above.

(16)

Finance and other expense (income) refers to interest income on cash, and payments received from employees for parking, net of non-controlling interest portion of unrecoverable withholding taxes on royalties.

(17)

Lease payments in the TTM Q1 2022 included a one-time early lease termination payment of $0.5 million, which occurred in Q3 2021.

2 Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws in Canada.

Forward-looking information may relate to our future business, financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, NCIB, business plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “financial outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “does not anticipate”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding possible future events or circumstances.

Forward-looking information may include, among other things: (i) the Company’s expectations regarding its financial performance and outlook, including among others, net sales, gross profit, gross profit growth rates, expenses, Adjusted EBITDA, Adjusted EBITDA to Gross Profit margin, Adjusted Free Cash Flow Conversion, operations, the number of account executives and employees, organic growth and Adjusted EBITDA margin expansion; (ii) the Company’s expectations regarding industry and market trends, growth rates and growth strategies; (iii) the Company’s business plans and strategies; (iv) the Company’s ability to retain customers and increase margin per customer; (v) the Company’s relationship and status with technology partners; (vi) the Company’s growth strategies, future organic growth, and competitive position in the IT industry; (vii) the Company’s dividend program and dividend rates; (viii) the Company’s NCIB program and the purchase of Common Shares in connection with such programs; and (ix) the long-term impact of COVID-19 on our business, financial position, results of operations and/or cash flows; (x) M&A opportunities; and (xi) the materialization of the expected benefits of Project Monarch.

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as at the date such statements are made, and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors described in our Q1 2022 MD&A and under “Risk Factors” within the Company’s annual information form dated March 29, 2022 (the “AIF”). A copy of the AIF can be accessed under our profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and on our website at investors.softchoice.com. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as at the date made.

In addition to the Forward-looking information cautions described above, the outlook set forth herein includes Gross Profit, Gross Profit growth, Adjusted EBITDA, Adjusted EBITDA to Gross Profit margin and Adjusted Free Cash Flow Conversion, for Fiscal 2022. Key underlying drivers for our forecast, particularly related to Gross Profit and Gross Profit growth, include: (i) the expected growth of our addressable market; (ii) the expected growth of our salesforce and improvements of our salesforce productivity; and (iii) the expected growth in our customer base and wallet share amongst existing customers. A significant portion of the increase in Gross Profit and Adjusted EBITDA for Fiscal 2022 is attributable to the procurement savings, pricing margin improvements, and business growth and reduced revenue leakage and expected net workforce efficiencies anticipated to result from Project Monarch. To the extent that these underlying drivers and benefits are not realized as expected, our Gross Profit, Adjusted EBITDA, Adjusted EBITDA to Gross Profit margin and, as a result, our Adjusted Free Cash Flow Conversion, during the relevant period will be adversely affected. The underlying assumptions relating to future results are inherently uncertain and are subject to significant business, economic, financial, regulatory, market and competitive risks, including risks that our initiatives or projects (including Project Monarch) do not result in the growth and increase in efficiencies anticipated, and could cause actual results to differ materially. If we do not achieve the anticipated results, we may modify or discontinue certain of our other planned business initiatives. In light of the foregoing, investors are urged to put these statements in context and not to place undue reliance on them.

About Softchoice

Softchoice (TSX: SFTC) is a software-focused IT solutions provider that equips organizations to be agile and innovative, and for their people to be engaged, connected and creative at work. That means moving them to the cloud, helping them build the workplace of tomorrow, and enabling them to make smarter decisions about their technology portfolio. For more information, please visit www.softchoice.com.

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Investor Relations

Tim Foran (416) 986-8515 investors@softchoice.com

Media

Justin Hane (647) 917-1761 justin.hane@softchoice.com