2004 Crown Investments Corporation of Saskatchewan Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSISInformationServicesCorporationof Saskatchewan2004 ResultsEarnings were $8.3 million (2003 - $5.8 million loss including a $2.9 million payment to the GRF in 2003).2004 marked ISC’s first year of profitability since its inception in 2000.Revenues of $44.1 million (2003 - $36.7 million) increased $7.4 million primarily related to high valuetransactions, higher volumes of registrations, new contracts and the rebalanced Land Registry, PersonalProperty Registry and Geomatics fee models.Operating expenses were $35.8 million (2003 - $39.5 million), reflecting a concerted effort to optimizeand reduce core costs. This reduction was largely attributable to lower employee costs partly offsetby contractual arrangements with our technology service providers, and cost reductions across theorganization.Debt was $51.0 million (2003 - $62.9 million), reflecting the repayment of $11.9 million in short-term debtdue to strong operating performance.Capital spending was $4.7 million (2003 - $6.4 million) primarily related to computer software and hardware,geomatics enhancements, projects and system enhancements.Earnings ($ millions)Debt ($ millions)Capital Spending ($ millions)10 8.38056004051.062.98644.76.4-5-10-5.82004 20032002004 200320200420032005 OutlookFocus on broadening ISC’s reach to all customer sectors and identifying new services that address customerneeds, to solidify excellent working relationships with our customers.Continue with Land Registry Business Improvement Initiatives, which will address customer priorities throughon-line Land Registry submissions and improved title accuracy.Continue redevelopment of PPR services, to provide customers with a fully integrated self-serve, internet-basedapplication.Develop and implement a Geomatics Strategy to understand the future of Geomatics from a provincialperspective and determine ISC’s role in that future.Continue to advance our people practices; sustaining and enhancing established employee developmentinitiatives including succession planning.Further develop and implement strategies to attract youth and aboriginal people.Continue improving the quality of the products and services that we provide to our customers.Undertake a portfolio of Centennial projects to profile the current and historic work of the organization.Achieve Level II of the National Quality Institute standards of excellence.Develop and implement a new image strategy to heighten public awareness of ISC in the Province.Key Factors Affecting PerformanceVolume of searches and registrations.Customer satisfaction.Ability to achieve and sustain targeted cost reductions.Interest rates.C I C54