Ladies and gentlemen, thank you for standing by, and welcome to the IFC Q4 2020 Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. I would now like to hand the conference to your speaker today, Jonathan Hackshaw, Director, Investor Relations and Capital Markets. Please go ahead, sir.
Thank you, Joel, and good morning, ladies and gentlemen. Welcome to ISC's conference call for the year ended December 31, 2020. On the call with me today are Jeff Stusick, President and CEO and Sean Peters, Executive Vice President and Chief Financial Officer. Jeff will provide some opening comments followed by a review of our operational and financial results for the year by Sean. Jeff will then make some closing remarks before we open the call up for the question and answer session.
Before we begin, we would like to remind everyone that we will only be summarizing results today. ISC's audited consolidated financial statements and management's discussion and analysis for the period ended December 31, 2020 have been filed on SEDAR and are also available in the Investors section on our website under Financial Reports. We encourage you to review those reports in their entirety. I would also like to remind you that any statements made today that are not historical facts are considered to be forward looking statements within the meaning of applicable securities laws. The statements may involve a number of risks and uncertainties that are described in detail in the company's SEDAR filings, in particular in Form for the year ended December 31, 2020, and ISC's audited consolidated financial statements and notes and management's discussion and analysis for the Q4 year ended December 31, 2020.
Those risks and uncertainties may cause actual results to differ materially from those stated. Today's comments are made as of today's date and will not be updated except as required under applicable securities legislation. Today's conference call is being broadcast live over the Internet will be archived for replay shortly after the call in the Investor section of our website. I would now like to turn the call over to Jeff Stusick.
Thank you, Jonathan, and good morning to everyone joining us for today's call. 1st and foremost, I hope that everyone is safe and well. I'm very pleased to report that we ended the year with some excellent results, in line with our strategy of producing profitable and sustainable growth. I'm especially proud that we delivered nearly $137,000,000 in revenue and almost $44,000,000 in EBITDA, both new records for us. All of this was achieved with a global pandemic unfolding in the background.
Much of this is down to the professionalism and ability of our employees to seamlessly shift in response to an immense challenge that none of us had ever faced before. Our 20 2Q1 results showed continued growth over last year, but were muted by the impact of COVID-nineteen in the last weeks of the quarter. We experienced an impact from COVID-nineteen in the second quarter, but again delivered strong results in the face of the economic conditions created by the pandemic. For the Q3, our performance remained strong, partly due to increased transactions in both registry operations and services, Combined with the measures implemented to continue to reduce our operating expenditures and mitigate the impact of the pandemic at the start of the Q2. We also completed several initiatives.
We acquired substantially all of the assets of Paragon Inc, whose primary focus is the facilitation and coordination of asset recovery On behalf of many of Canada's major banks, the acquisition strengthened our current service offering and we now offer our clients a complete solution in the credit life cycle. We also completed a soft launch of our newest technology platform Registry Complete, A unified and streamlined platform that enables customers to search and register with various ministries across Canada in a secure cloud based environment. The platform also allows our customers to take advantage of expanded API service offerings, improved tools, faster turnaround and a greater array of services in the legal and due diligence space. And we expanded our credit facility to refinance amounts under the previous facilities and to provide the company with additional room for future growth opportunities, capital expenditures and general corporate purposes. Performance in the 4th quarter surged as transaction levels continued to improve across much of the registry operations segment, which remains a significant part of ISC's business.
We continue to refine this segment's efficiency to preserve EBITDA and free cash flow, while still maintaining best in class customer service. Our Services segment also saw a strong quarter, up over last year due to organic new customer growth and the additional revenue from our Recovery Services Solutions division following Paragon's acquisition. Technology Solutions continued well despite the impact on some implementation timing during the year from pandemic restrictions. We still completed schedule implementation for existing clients, while we continue to develop new relationships with prospective clients. Based on the strength of our existing business, the continued execution of our growth strategy and the actions we took at the start of the pandemic to mitigate The impact on our business, we were able to deliver excellent results in 2020.
Before I look ahead to 2021, I'll ask Sean to summarize our financial and operating performance for the year.
Thank you, Jeff, and good morning, everyone. I'll provide you with some of the highlights of the full year on a On a consolidated basis, revenue was $136,700,000 for the year, an increase of $3,700,000 compared to the previous year. The increase was due to the higher revenue generated by services from new customer growth and the new recovery solutions revenue. Net income for the year was up 8 percent to $20,900,000 or $1.19 per basic share and $1.18 per diluted share compared to $19,400,000 or $1.11 per basic and diluted share last year. The increase was the result of our increased revenue, combined with savings from expense reduction measures implemented in 2020 in response to the pandemic.
EBITDA for the year was 43,600,000 compared to $39,000,000 last year, an increase of 12%. Adjusted EBITDA was $47,500,000,000 for the year compared to $40,000,000 last year, of 19%. Our EBITDA margin for the year was 31.9% compared to 29.3% for 2019 and our adjusted EBITDA margin was 34.7% compared to 30.1% last year. Free cash flow for the year increased to 36,200,000 up 21% compared to $30,000,000 last year due to higher cash flows provided by our operations, including changes in our working capital. Turning to our business segments.
In registry operations, revenue was $69,600,000 for the year, flat compared to 2019. Revenue for the land registry was $48,700,000 also flat compared to last year, despite overall revenue generating transactions in the land registry falling 7.9% for the year due to the impact of COVID-nineteen. The stable revenue on lower transactions was due to the increase in regular land transfers and mortgage registrations, which generate much of the revenue, combined with higher average land values for regular land transfers, particularly in the Q4. The volume of regular land transfers in 2020 increased by 1% and 6.6% respectively, while title search volumes declined by 7%. High value property registration revenue, where each high value registration generates revenue of $10,000 or more, was lower in 2020 at $3,800,000 compared to $4,300,000 in 20 19.
Revenue for the personal property was steady year over year at $10,100,000 compared to 2019. Overall volumes declined by 6.6% compared to the previous year, with the decline most prevalent in the Q2 when COVID-nineteen related restrictions had the greatest impact on the local economy. Registration and search volumes both dropped 6.9%, while maintenance volumes dropped 4.1%. Personal Property Security registration setup volumes decreased by 4.4% compared to 2019. Revenue for the corporate registry for the year was $10,500,000 up 3% compared to 2019.
In 2020, registration and maintenance revenue improved by 4.2% and 4.1%, respectively, compared to 2019. More specifically, revenue from the incorporation and registration of new business entities, up 5.3% drove registration revenue growth, while revenue from the filing of annual returns and renewal up 6.1% drove maintenance revenue growth. The pricing changes made in the Q3 of 2019 also contributed to revenue increases in both categories, and this growth was somewhat offset by a reduction of search revenue, which was down 4% compared to the previous year. Looking at the full year's results, overall EBITDA for registry operations was $34,600,000 for the year compared to $34,100,000 last year. The increase was due to decreased expenses overall, including measures implemented to reduce our operating costs and mitigate the impact of the pandemic at the start of the second quarter.
And while the impact of COVID-nineteen restrictions were evident in 2020, this line of business remains a strong free quote, Strong cash flow contributor and performed extremely well this year. In services, revenue for the year was $56,400,000 up 10% compared to $51,200,000 in 20 19. Revenue and services continues to grow primarily as a result of generating more business from existing customers through new products and services, such as those from our Paragon acquisition and attracting new customers because of our improved service and offerings versus our competition. This growth in new customers offset the reduction in overall volumes seen earlier in the year following the implementation of COVID-nineteen restrictions. As a reminder, during the year, We re categorized our reporting for our services segment to include our new recovery solutions division from Paragon acquisition, which closed on July 31.
Therefore, our offerings are categorized into 3 divisions, namely Corporate Solutions, Regulatory Solutions and Recovery Solutions. Revenue in regulatory solutions for 2020 was $47,700,000 compared to $46,000,000 for the same period last year, an increase of 3.8%, rebounding in the last half of the year from the second quarter impact of COVID-nineteen restrictions. Recovery Solutions revenue for the year was $3,700,000 following the acquisition of Paragon on July 31. Historically, the recovery industry trends lower in the Q4 due to temporary pausing of recovery efforts leading up to and during the holidays. Revenue for Corporate Solutions was $4,900,000 flat compared to last year with the impact from COVID-nineteen offsetting new growth.
Overall EBITDA for services was $12,100,000 for the year compared to $7,100,000 last year. The year over year increase was due to higher revenue from the organic growth I mentioned earlier and the acquisition of Paragon in the summer. Finally, Technology Solutions saw revenue of $20,600,000 for the year compared to $24,200,000 for the same period in 2019. Revenue from external parties was down slightly at $10,800,000 compared to $11,400,000 in 20 19 due to the timing of revenue milestones in 2020 versus 2019. Internal related party revenue decreased as we continue to reduce our Internal support costs through continuous improvement in providing application maintenance and operations services.
Overall EBITDA for Technology Solutions was $4,400,000 well up from the $2,300,000 last year, due partially to reduced costs to deliver our implementations in 2020 combined with expense reduction measures put in place during the pandemic. Finally, our Corporate and Other segment, which includes expenses related to our corporate activities and shared services functions, were $7,700,000 for the year versus $4,500,000 last year, primarily a result of acquisition and integration expenses related to growth initiatives such as Paragon. With respect to expenses, our consolidated expenses for the year were flat year over year at 106,000,000 This was due to reductions in wages and salaries from pandemic related actions, offset by increases in professional and consulting services and depreciation and amortization from our acquisition of Paragon. Capital expenditures for the year were $1,700,000 compared to $3,900,000 for the same period in 2019. The lower spend was primarily related to the actions we took to reduce spending across our business segments following the shift to remote working caused by the pandemic, which included deferrals of certain planned initiatives.
With respect to our debt, as at December 31, 2020, the company had $76,300,000 of total debt outstanding compared to $18,000,000 at December 31, 2019. As a reminder, on August 5, we entered into a new credit facility. The aggregate amount available under the new facility is $150,000,000 up from $80,000,000 The new facility was used to refinance amounts under the previous facilities with a balance available for future growth opportunities, capital expenditures and general corporate purposes. Further details on our debt and our credit facilities be found in our MD and A and our financial statements. From a liquidity perspective, as at December 31, 2020, We held $33,900,000 in cash compared to $23,700,000 as at December 31, 2019.
At the end of December 31, working capital was $28,100,000 compared to $17,700,000 at the end of last year. The increase in working capital is primarily the result of higher results of operations, reduced corporate income tax installments in 2020, the payment of contingent consideration in 2019 associated with our ERS acquisition and changes in contract liabilities and receivables due to the timing of sales and higher revenue. Finally, we also announced yesterday that our Board of Directors approved our quarterly cash dividend of $0.20 per share. The dividend will be payable on or before April 15, 2021 to shareholders of record as of March 31, 2021. With that, I'll now turn the call back over to Jeff for some concluding remarks.
Thanks, Sean.
Before we move to the Q and A session, I'd like Share a few thoughts with you about our outlook for 2021. While we've demonstrated strong results for 2020 and have positioned the company to manage through the global pandemic situation, we continue to be unable at this time to predict the full impact on our financial results in 2021. However, I reiterate that we are well positioned We've been focused on the years rather than the quarters ahead. Our long term strategy remains centered on delivering value for shareholders through the consistent performance of our existing business and the execution of appropriate growth opportunities, including acquisition targets that are complementary to or add value to existing lines of business. To conclude, I'd like to thank all of our stakeholders for their support over the course of the last year.
I believe in our strategy and our people, and it is because of this that I remain confident about the future. With that, I will hand the call back over to Jonathan.
Thanks, Jeff. Joel, we'd now like to begin the question and answer session, please.
Thank you. Please standby while we compile the Q and A roster. Our first question comes from Stephanie Price with CIBC. Your line is now open.
Good morning.
Good morning, Stephanie.
Registry operations came in above our expectations both in the revenue and EBITDA line. Just curious if you could talk about what you saw in the quarter and if there's been any changes to the outlook post quarter end?
Hi, Stephanie. It's Sean. Yes, so we did see an increase in revenue in the 4th quarter. It was a very strong 4th quarter. You'll know that normally our Q4 and our Q1 are the slower quarters for us, but I think the pandemic sort of shifted that timing.
We saw the reduction in Q2 and then a sort of a return to 2019 levels in Q3 and then a strong Q4. As I mentioned on the call, the overall number of transactions in the registry were down, but what we saw was some higher average land values. So Transactions were strong, but not where I would say that they were exceeding previous year's levels. Part of it was just The average land values and the types of transactions we saw. But all that said, it is it was a good strong quarter.
And anecdotally, Saskatchewan's Real estate market is continuing strong into the Q1.
That's helpful. And then in terms of the registry margins, can you talk a little bit about the sustainability of kind of the margin that we saw this quarter and maybe also around cost reductions. I know we talked in the past about permanent versus temporary. Just curious if you could give us an update on that?
Yes. So some of the cost reductions, as I said, were related to pandemic measures, Shifting employees to working from home. And we've yet to see how that's going to play out over the long term. But we're running full Really at full ability and capacity as we are right now. So we would expect to see some of those Savings continue.
I think the registry operations team does a good job of using attrition and looking for Process efficiencies, we talk about that quite a bit that they continue to focus on that. And I think they've used the pandemic as another way to optimize Processes. So I think some of those will continue. What we don't yet is when we have everybody come back to work with that, that's going to look like. And certainly in Any recovery in Saskatchewan, there might be some additional expenses associated with that and the number of transactions, but we're pretty happy with where they are right now.
Okay, great. And maybe just one last one for me is kind of the contribution from Paragon in the quarter. Just curious if it was in line with your expectations and what you're seeing from
the business at this point?
Yes. So as we talked about when we acquired Paragon, we acquired it in the middle of COVID and so we were certainly aware of the impact that COVID would have on the volumes in the business. Given that we went into a second wave, Those have persisted a little bit longer, not unexpected for us. Obviously, like most businesses, we would have hoped to come out of that a bit sooner Across all of our businesses, not just the Recovery Solutions. But yes, I think based on what we expected and what we saw from COVID, it's performing about where we thought.
Okay, that's helpful. Thank you.
Thanks, Stephanie.
Thank you. Our next question comes from Paul Treiber with RBC Capital Markets. Your line is now open.
Thanks very much. I just wanted to follow-up on the last question about Paragon. In the MD and A, there's a Sort of pro form a revenue contribution suggests that revenue for Paragon for 2020 was about in the $11,000,000 range. Is that the run rate that we should should we expect that run rate going forward? Is that depressed?
What's the magnitude that it's lower if it is depressed? Can you help sort of Sort of help give us some direction around where that revenue is relative to 2020?
Yes. So Paul, it when we bought Paragon, it had an LTM of about $12,000,000 So what you quoted there would be sort of In line with what it had historically performed. Now we expect to see growth in that. Part of the challenge is taking the 2 quarters that we have being Q3 and Q4. Q4, as I mentioned on the call, typically is a lower quarter for recovery solutions, again, because They tend to delay any recovery efforts during up to and during the holidays.
So it's not a great quarter to try to do A full run rate on, but you'll notice that it is in line with what the LTM was. And that's probably okay for right now As we work our way through COVID, but we would expect as we come out of that, that will change and that's what our growth expectations are for the business.
Okay. Thanks. That's helpful. Just looking at your the 'twenty one outlook or directional commentary, I mean, you are taking conservative stance and you're implying a little bit of a deceleration. Now can you just speak to as you think over the year, do you think as you lap some of these Tupper comps in the second half of the year, that's when you'll see the deceleration?
Or does it matter on when there's a reopening or the timing of reopening? Would that necessarily drive the acceleration or a rebound in growth?
I apologize here. That's a good question. It's a hard one to answer. I think I would say a few things. One is, COVID has had it has and continues to have an impact on our business.
We certainly see it on the recovery solutions side. And some of that sort of muted activity in the Recovery Solutions side speaks a little bit to Things like federal subsidies in the marketplace and things like that. And so if we had clearer sight on those types of things, we'd be able to More quickly sort of gauge the impact. I think both our registry operations business and our services business Our really reliance on economic activity and we are seeing some emergence of that, but it's not full yet, certainly nationally And in the places we operate, and we're seeing some activity, and that's great. I don't know if those are normal yet.
So I think to your point, Yes, it sort of depends on when we're kind of out in the clear on this. And I'm speaking from an economic standpoint, not a health standpoint necessarily. But it's hard to it's really hard to gauge. And so that's why we're uncomfortable about issuing Specific guidance, just because of the uncertainties that still exist around COVID and the impacts that those have on our business. All being said, 2020 was a pretty remarkable year despite that, and I do think there is COVID impact on our 2020 results.
And so we expect strength going forward. We just it's hard to pinpoint perfectly what that looks like.
Okay. That
makes sense. One last one for me. There's a comment in the MD and A about some pricing changes made I think around August or so. What was the magnitude of those price increases and the breadth of those price increases?
Sure, Paul. It's the price increases that we do every year in registry operations are related to Saskatchewan CPI. So in our Master Services Agreement, that's what's set out. And so those happen in and around that July, August timeframe. So It would be across the Saskatchewan registries in various spots equating to roughly Saskatchewan CPI.
In our services business, we actually We normally do price increases as well, but we did pause them out of respect for the companies that are our clients for COVID, but that would be normal sort of timing for those as well. Just this year, we didn't do it because of COVID.
Great. Thank you. I'll pass it on.
Thanks, Paul.
Thank you. Our next question comes from Stephen Volund with Raymond James. Your line is now open.
Hi. Just a couple of questions. First on Paragon, you mentioned you're gaining I think you said you're gaining new customers And part of that was you're offering new services or cross selling some of your other services. Could you just spend a minute on that please and just what services are working for those customers?
Yes. So thanks for the question, Stephen. Yes, more specifically, we're acquiring And services as the overall segment. So in our recovery solutions, our customers are the big banks. So That's not where we're acquiring the new customers right now.
We're continuing to service those customers. But where we see it is in our regulatory solutions, Which is the collateral management and the legal side of the business. Part of it is the improved Technology that we have, we talked about Registry Complete, which we launched this summer, which is a new technology for law firms, which is getting a lot of traction, And just our overall collateral management services is really starting to help that new customer acquisition. The part that ties into Recovery Solutions is that now that we have that full credit life cycle, we're able to acquire new customers that we might not have been able to before, given that we only had parts of the solution. So Recovery Solutions is helping to acquire new customers even though they may not directly be in the recovery space.
Okay. Thanks for clarifying that. And
then secondly,
I think I've asked this a couple of times now. Your dividend as a percent of free cash flow is, I think near historic levels or at historic levels, you have lots of room on the credit facility In terms of getting or completing another acquisition, maybe you just touch on what's the pipeline look for acquisitions? And 2, is there any thought in increasing that dividend?
Thanks, Stephen. Good question. Lots of ways to look at that and I appreciate you're asking that question again. I think this is a live conference call and we're investing our money and allocate our funds to date. What came out of the gate dividend was strong.
It is continues to be a strong dividend And attracts a certain type of investor and rewards investors for our sort of continued stable operation. I think What we have done and the Board supports is focused some of that attention, some of our capital allocation attention The growth and through the acquisitions and the reinvestment in the company to the company, it is today $137,000,000 and almost In revenue and $44,000,000 in EBITDA. I suspect going forward, we will continue to balance that between Growing our business, continue to look for opportunities to grow the business because we still think there's growth opportunities in front of us. And at the same time, taking a look at dividend and is it appropriate. I think the good news story in this is, We do have options now, and we do have choice.
And we've built a business with such a strong cash free cash flow that, yes, you're right, it is at probably record Low as a percentage of cash flow. And so it is a live conversation with our Board. Right now, I don't want to sort of guess or surmise on what that conclusion will be. We will continue to try to strike that appropriate balance. And Sean and I said from the beginning, at the beginning of the IPO, our intent was to grow the business so we could look for opportunities to increase the dividend.
And I think we have grown the business appropriately, and now we have to assess between future growth, not just it's not a binary choice, Just growth opportunities or dividend. It's probably striking a balance between the 2. So that's not a direct answer to your question, Although I can't directly answer it because I don't have the answer, but it is a live conversation for us.
Okay. Just on the pipeline of acquisitions or Sorry,
pipeline, I apologize. Yes, so we don't sort of specifically talk about what's in the pipeline. We You have a pipeline of acquisitions and we continue to sort of work them through our process. There's nothing magical about our Acquisition history, although we've done 5 in the last 5 years, 5 or 3 years, 6 years. So 1 a year seems to be a bit of a trend.
They've sort of generally got bigger As we've gone and Paragon was a $70,000,000 acquisition, which was our largest. So I don't think it would be Odd or unusual to expect an acquisition in 2020, but there's no commitments around that. Sean and I both believe that it has to be the right acquisition complementary to our It helps us grow the business and add value to our customer, and it has to be at the right price. We are not Serial acquirers because we think there's danger in that and we like the resilient, stable Cash flow generation businesses that we've built and we're not going to jeopardize those. So that's our approach to growth.
That's not everybody's approach to growth, but That's ours.
Okay. Thanks for your comments.
Yes. No worries. Thanks, Stephen.
Thank you. I'm not showing any further questions at this time. I will now turn the call back over to Jonathan Hackshaw for closing remarks.
Sorry, Joelle. I think we've just seen Trevor Reynolds I have a question. I think he's in the queue.
And our next question comes from Trevor Reynolds with Acumen Capital. Your line is now open.
Hey guys, thanks for that. Just noticed in the MD and A talking about 84% of all Land title registry transactions were submitted online in 2020. Wondering what that looks like in 2019 as a comparative?
Yes, Trevor, I don't have the exact number, but that number is actually pretty stable for us. It's been growing at sort of 0.5% or 1% maybe at most a year. Most of the transactions that we see from our large firms do come Online, the ones that aren't coming in online are still areas where they're just not interested in submitting them online. So it's not A functionality, it's just the client base that uses it. So that's remained pretty stable for us over the last number of years.
Got it. Thanks. And then, are you able to quantify any more on the new customer growth in services and also kind of what that looks
What I would say is that we saw The new customer growth and maybe this isn't really quantifying it, but the new customer growth more than offset what we saw in reductions from the COVID-nineteen. So In the prior years, we've quoted around a 20% organic growth. And I think this year was probably pretty close to the same Number just having to take into account the COVID impact of that. We continue to think there's lots of runway For growth for us in that. And so I don't know that the 20% is sustainable over the long term just on that business or Maybe as we continue to grow, but I think for the next bit, we do see continued runway in organic growth, particularly with the launch of our new Registry complete and the recovery solutions coming on.
Perfect. And then just on, you did touch on the registry side of maybe the land Robert,
sales have never been strong.
From the services side,
have transaction levels Held in so far Q1 to date from what you saw in Q4?
Well, I think that what we Saw in Q4 was a bit of some strength as there was some positive news in the market, even just anecdotally with vaccines Seems to have sort of increased optimism in the economy. And I think that's continuing into Q1. I don't have any specific Remarks to make in terms of service levels in or sorry, transaction levels in services. But I think what We're seeing anecdotally in both registry operations and services is continuing into Q1 where Q4 left off and just it was It will depend on what we see over the next few weeks as vaccines continue to roll out and if more lockdowns are put in place as to how that changes.
Okay. And then just last thing on the technology side, because of You had a few implementations here to begin in Q1. Do you see that is there a backlog there? Is it Are you kind of through what's been on hold
from COVID? Well, we've had a number of contracts that we worked on over the course of 2020 and successfully. So we're able to remotely work We work with our clients because it is challenging for them to do some of the testing and implementation remotely, which is what has delayed some of the implementations. But that's been pretty steady for us. I think in some ways the Technology Solutions business was the least impacted from COVID.
And as we move forward, we still got we just announced a new contract that we're working on. We still have the contract in the Irish Aviation Authority. So there's still good work in the queue. And again, there's a little bit of a COVID impact here where we need to see how jurisdictions are going to continue to move forward post COVID on the technology front. But it certainly is probably a positive thing that a lot of jurisdictions are looking at how to improve their online delivery of services
to customers. Perfect. Thanks. That's it for me. Thanks.
Thanks Trevor.
Thank you. Our next question comes from Jeffrey Pytlak with Cormark Securities. Your line is now open.
Hey, good morning. Just one quick question coming back to Paragon. I believe in the past you mentioned some reluctance by clients to kind of move ahead with recoveries. Just wondering if that kind of dynamic has changed at all?
Thanks, Jesse. A couple of things in that business. As Jeff mentioned, The business was impacted partly because of government subsidies, which has allowed well, mortgage deferrals and government Subsidies that have allowed people to maybe remain afloat on some of those loans that otherwise would have went into default. So that combined with Financial institutions being careful during COVID and not wanting to execute on recoveries, which is what you just mentioned, is why I think we're seeing that sort of flat. As we come out of this and as those wage subsidies end and Deferrals and I think we're going to see a pickup.
The business was performing well prior to COVID. I think we're going to see a pickup In that business, and the banks and other institutions are going to restart their Programs of recovery, which I think they have continued to defer even through the holidays and into Q1. So Again, it will depend on how quickly we come out of the pandemic when all of those things start to return to normal.
Okay. Thank you.
Thanks, Jesse.
Thank you. I'm not showing any further questions at this time. I would now like to turn the call back over to Jonathan Hackshaw for closing remarks.
Thank you, Joel. With no further questions, I'd like to once again thank everyone for joining us on today's call. And we look forward to talking with you again when we report our first our results for the Q1 of 2021. Have a good day.