Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2020 and Declares Quarterly Dividend
August 06 2020 - 5:00PM
Constellation Software Inc. (TSX:CSU) (“Constellation” or the
“Company”) today announced its financial results for the second
quarter ended June 30, 2020 and declared a $1.00 per share dividend
payable on October 9, 2020 to all common shareholders of record at
close of business on September 18, 2020. This dividend has been
designated as an eligible dividend for the purposes of the Income
Tax Act (Canada). Please note that all dollar amounts
referred to in this press release are in U.S. Dollars unless
otherwise stated.
The following press release should be read in
conjunction with the Company’s Unaudited Condensed Consolidated
Interim Financial Statements for the three and six months ended
June 30, 2020 and the accompanying notes, our Management Discussion
and Analysis for the three and six months ended June 30, 2020 and
with our annual Consolidated Financial Statements, prepared in
accordance with International Financial Reporting Standards
(“IFRS”) and our annual Management’s Discussion and Analysis for
the year ended December 31, 2019, which can be found on SEDAR at
www.sedar.com and on the Company’s website
www.csisoftware.com. Additional information about the Company
is also available on SEDAR at www.sedar.com
Our board remain both grateful and impressed by
the Constellation employees who continue to re-think, re-invent and
re-imagine how they support each other and our customers through
the many challenges created by COVID-19.
Q2 2020 Headlines:
- Revenue grew 9% (negative 8% organic growth, negative 7% after
adjusting for changes in foreign exchange rates) to $922 million
compared to $846 million in Q2 2019.
- Net income increased 12% to $83
million ($3.90 on a diluted per share basis) from $73 million
($3.45 on a diluted per share basis) in Q2 2019.
- Impairment of intangible and other
non-financial assets was $4 million in Q2 2020 versus nil in Q2
2019.
- A number of acquisitions were
completed for aggregate cash consideration of $67 million (which
includes acquired cash). Deferred payments associated with
these acquisitions have an estimated value of $17 million resulting
in total consideration of $84 million.
- Cash flows from operations (“CFO”)
were $237 million, an increase of 370%, or $186 million, compared
to $50 million for the comparable period in 2019.
- Free cash flow available to
shareholders1 (“FCFA2S”) increased $178 million to $190 million
compared to $12 million for the same period in 2019.
- CFO and FCFA2S were positively
impacted by the deferral of approximately $29 million of tax
instalment payments to the second half of 2020 in conjunction with
the certain government’s COVID-19 relief programs.
- The Company determined that certain
of its subsidiaries qualified for an estimated aggregate amount of
$17 million of grants from various government authorities, and
recognized such amounts as a reduction to expenses in the
quarter.
- On May 20, 2020 the Company entered
into a binding agreement with IJssel B.V. to purchase 100% of the
shares of Topicus.com B.V., a Netherlands-based diversified
vertical market software provider. The transaction is
currently expected to close in 2020, subject to the satisfaction of
certain closing conditions.
- Subsequent to June 30, 2020, the
Company completed or entered into agreements to acquire a number of
businesses for aggregate cash consideration of $64 million (which
includes acquired cash). Deferred payments associated with
these acquisitions have an estimated value of $14 million resulting
in total consideration of $78 million.
1. See Non-IFRS measures.
Total revenue for the quarter ended June 30,
2020 was $922 million, an increase of 9%, or $76 million, compared
to $846 million for the comparable period in 2019. For the
first six months of 2020 total revenues were $1,875 million, an
increase of 13%, or $210 million, compared to $1,665 million for
the comparable period in 2019. The increase for both the
three and six month periods compared to the same periods in the
prior year is primarily attributable to growth from acquisitions as
the Company experienced organic growth of negative 8% and negative
5% respectively, negative 7% and negative 4% respectively after
adjusting for the impact of changes in the valuation of the US
dollar against most major currencies in which the Company transacts
business.
Net income for the quarter ended June 30, 2020
was $83 million compared to net income of $73 million for the same
period in 2019. On a per share basis, this translated into a
net income per diluted share of $3.90 in the quarter ended June 30,
2020 compared to net income per diluted share of $3.45 for the same
period in 2019. For the six months ended June 30, 2020, net
income was $166 million or $7.81 per diluted share compared to $160
million or $7.54 per diluted share for the same period in 2019.
For the quarter ended June 30, 2020, CFO
increased $186 million to $237 million compared to $50 million for
the same period in 2019 representing an increase of 370%. For
the first six months of 2020, CFO increased $263 million to $597
million compared to $334 million during the same period in 2019,
representing an increase of 79%.
For the quarter ended June 30, 2020, FCFA2S
increased $178 million to $190 million compared to $12 million for
the same period in 2019. For the first six months of 2020,
FCFA2S increased $238 million to $501 million compared to $263
million during the same period in 2019, representing an increase of
91%.
CFO and FCFA2S for the three and six months
ended June 30, 2020 were positively impacted by the deferral of
approximately $29 million of tax instalment payments to the second
half of 2020 in conjunction with certain government’s COVID-19
relief programs.
The Company is closely monitoring the impact of
COVID-19 on all aspects of its business. COVID-19 was declared a
global pandemic by the World Health Organization on March 11, 2020.
The COVID-19 pandemic has had disruptive effects in countries in
which the Company operates and has adversely impacted many of its
business units’ operations to date, including through the
cancellation by certain customers of their ongoing software
maintenance contracts and the suspension or cancellation of new
software purchases. The pandemic may also have an adverse
impact on many of the Company’s customers, including their ability
to satisfy ongoing payment obligations to the Company, which could
increase the Company’s bad debt exposure. The future impacts of the
pandemic and any resulting economic impact are largely unknown and
rapidly evolving. It is possible that the COVID-19 pandemic, the
measures taken by the governments of countries affected and the
resulting economic impact may continue to adversely affect the
Company’s results of operations, cash flows and financial position
as well as its customers in future periods, and this impact could
be material.
Forward Looking Statements
Certain statements herein may be “forward
looking” statements that involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Constellation or the industry to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not such results will be achieved.
A number of factors could cause actual results to vary
significantly from the results discussed in the forward looking
statements. These forward looking statements reflect current
assumptions and expectations regarding future events and operating
performance and are made as of the date hereof and Constellation
assumes no obligation, except as required by law, to update any
forward looking statements to reflect new events or
circumstances.
Non-IFRS Measures
Free cash flow available to shareholders
‘‘FCFA2S’’ refers to net cash flows from operating activities less
interest paid on lease obligations, interest paid on other
facilities, credit facility transaction costs, repayments of lease
obligations, the TSS membership liability revaluation charge, and
property and equipment purchased, and includes interest and
dividends received. Constellation believes that FCFA2S is
useful supplemental information as it provides an indication of the
uncommitted cash flow that is available to shareholders if
Constellation does not make any acquisitions, or investments, and
does not repay any debts. While Constellation could use the
FCFA2S to pay dividends or repurchase shares, Constellation’s
objective is to invest all of our FCFA2S in acquisitions which meet
Constellation’s hurdle rate.
FCFA2S is not a recognized measure under IFRS
and, accordingly, readers are cautioned that FCFA2S should not be
construed as an alternative to net cash flows from operating
activities.
The following table reconciles FCFA2S to net
cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
Six months ended June 30, |
|
|
|
|
|
2020 |
|
2019 |
|
|
|
|
2020 |
|
2019 |
|
|
|
|
|
($ in millions, except percentages) |
|
($ in millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
237 |
|
50 |
|
|
|
|
597 |
|
334 |
|
|
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
|
(2 |
) |
(2 |
) |
|
|
|
(4 |
) |
(4 |
) |
|
|
Interest paid on other facilities |
|
|
(5 |
) |
(7 |
) |
|
|
|
(14 |
) |
(15 |
) |
|
|
Credit facility transaction costs |
|
|
(0 |
) |
- |
|
|
|
|
(0 |
) |
- |
|
|
|
Payments of lease obligations |
|
|
(16 |
) |
(13 |
) |
|
|
|
(30 |
) |
(23 |
) |
|
|
TSS membership liability revaluation charge |
|
|
(17 |
) |
(8 |
) |
|
|
|
(35 |
) |
(18 |
) |
|
|
Property and equipment purchased |
|
|
(6 |
) |
(8 |
) |
|
|
|
(13 |
) |
(15 |
) |
|
|
Interest and dividends received |
|
|
0 |
|
0 |
|
|
|
|
0 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow available to shareholders |
|
|
190 |
|
12 |
|
|
|
|
501 |
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to rounding, certain totals may not foot. |
|
|
|
|
|
|
|
|
|
|
|
About Constellation Software
Inc.
Constellation's common shares are listed on the
Toronto Stock Exchange under the symbol "CSU". Constellation
acquires, manages and builds vertical market software
businesses.
For further information:
Jamal BakshChief Financial Officer (416)
861-9677 info@csisoftware.comwww.csisoftware.com
SOURCE: CONSTELLATION SOFTWARE
INC.
CONSTELLATION SOFTWARE INC. |
|
|
|
Condensed Consolidated Interim Statements of Financial
Position |
|
|
|
|
(In millions of U.S. dollars, except per share amounts. Due
to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020 |
December 31, 2019 |
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
$ |
585 |
|
$ |
316 |
|
$ |
214 |
|
|
Accounts receivable |
|
|
|
|
|
|
393 |
|
|
422 |
|
|
368 |
|
|
Unbilled revenue |
|
|
|
|
|
|
103 |
|
|
110 |
|
|
105 |
|
|
Inventories |
|
|
|
|
|
|
|
32 |
|
|
31 |
|
|
45 |
|
|
Other assets |
|
|
|
|
|
|
207 |
|
|
184 |
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
1,319 |
|
|
1,062 |
|
|
915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
78 |
|
|
78 |
|
|
69 |
|
|
Right of use assets |
|
|
|
|
|
|
241 |
|
|
234 |
|
|
211 |
|
|
Deferred income taxes |
|
|
|
|
|
|
45 |
|
|
45 |
|
|
48 |
|
|
Other assets |
|
|
|
|
|
|
73 |
|
|
72 |
|
|
66 |
|
|
Intangible assets |
|
2,011 |
|
|
1,997 |
|
|
1,621 |
|
|
|
|
|
|
|
|
|
|
|
2,448 |
|
|
2,425 |
|
|
2,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
$ |
3,767 |
|
$ |
3,488 |
|
$ |
2,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
CSI facility |
|
|
|
|
|
|
$ |
98 |
|
$ |
63 |
|
$ |
- |
|
|
Debt without recourse to Constellation Software Inc. |
|
|
|
3 |
|
|
57 |
|
|
11 |
|
|
TSS membership liability |
|
|
|
|
|
93 |
|
|
86 |
|
|
69 |
|
|
Accounts payable and accrued liabilities |
|
|
|
|
480 |
|
|
529 |
|
|
400 |
|
|
Dividends payable |
|
|
|
|
|
|
21 |
|
|
21 |
|
|
22 |
|
|
Deferred revenue |
|
|
|
|
|
|
938 |
|
|
788 |
|
|
802 |
|
|
Provisions |
|
|
|
|
|
|
|
10 |
|
|
13 |
|
|
17 |
|
|
Acquisition holdback payables |
|
|
|
|
|
72 |
|
|
76 |
|
|
53 |
|
|
Lease obligations |
|
|
|
|
|
|
67 |
|
|
62 |
|
|
54 |
|
|
Income taxes payable |
|
|
|
|
|
|
95 |
|
|
36 |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
1,879 |
|
|
1,732 |
|
|
1,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
Debt without recourse to Constellation Software Inc. |
|
|
|
159 |
|
|
153 |
|
|
106 |
|
|
TSS membership liability |
|
|
|
|
|
164 |
|
|
136 |
|
|
121 |
|
|
Debentures |
|
|
|
|
|
|
|
210 |
|
|
222 |
|
|
222 |
|
|
Deferred income taxes |
|
|
|
|
|
|
243 |
|
|
246 |
|
|
202 |
|
|
Acquisition holdback payables |
|
|
|
|
|
29 |
|
|
25 |
|
|
15 |
|
|
Lease obligations |
|
|
|
|
|
|
193 |
|
|
187 |
|
|
170 |
|
|
Other liabilities |
|
|
|
|
|
|
98 |
|
|
101 |
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
1,095 |
|
|
1,069 |
|
|
913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
|
|
|
2,974 |
|
|
2,800 |
|
|
2,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
|
99 |
|
|
99 |
|
|
99 |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
(57) |
|
|
(40) |
|
|
(32) |
|
|
Retained earnings |
|
|
|
|
|
|
752 |
|
|
628 |
|
|
497 |
|
|
|
|
|
|
|
|
|
|
|
794 |
|
|
687 |
|
|
564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
|
|
|
$ |
3,767 |
|
$ |
3,488 |
|
$ |
2,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
|
|
|
Condensed Consolidated Interim Statements of Income |
|
|
|
|
|
|
(In millions of U.S. dollars, except per share amounts. Due
to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three and six months ended June 30, 2020 and 2019 |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
License |
|
|
|
|
$ |
51 |
|
|
$ |
61 |
|
|
$ |
108 |
|
|
$ |
113 |
|
Professional services |
|
|
|
|
170 |
|
|
|
164 |
|
|
|
347 |
|
|
|
322 |
|
Hardware and other |
|
|
|
|
35 |
|
|
|
41 |
|
|
|
77 |
|
|
|
77 |
|
Maintenance and other recurring |
|
|
|
666 |
|
|
|
581 |
|
|
|
1,342 |
|
|
|
1,152 |
|
|
|
|
|
|
|
|
|
922 |
|
|
|
846 |
|
|
|
1,875 |
|
|
|
1,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff |
|
|
|
|
|
|
|
480 |
|
|
|
437 |
|
|
|
990 |
|
|
|
882 |
|
Hardware |
|
|
|
|
|
|
|
22 |
|
|
|
22 |
|
|
|
45 |
|
|
|
43 |
|
Third party license, maintenance and professional services |
|
|
|
|
|
|
|
77 |
|
|
|
73 |
|
|
|
156 |
|
|
|
142 |
|
Occupancy |
|
|
|
|
|
|
|
8 |
|
|
|
9 |
|
|
|
17 |
|
|
|
17 |
|
Travel, telecommunications, supplies, software and equipment |
|
31 |
|
|
|
49 |
|
|
|
82 |
|
|
|
93 |
|
Professional fees |
|
|
|
|
|
|
|
13 |
|
|
|
11 |
|
|
|
26 |
|
|
|
22 |
|
Other, net |
|
|
|
|
|
|
|
0 |
|
|
|
15 |
|
|
|
5 |
|
|
|
36 |
|
Depreciation |
|
|
|
|
|
|
|
25 |
|
|
|
21 |
|
|
|
51 |
|
|
|
42 |
|
Amortization of intangible assets |
|
|
|
|
|
|
|
96 |
|
|
|
75 |
|
|
|
190 |
|
|
|
151 |
|
|
|
|
|
|
|
|
|
752 |
|
|
|
713 |
|
|
|
1,562 |
|
|
|
1,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) |
|
|
|
10 |
|
|
|
13 |
|
|
|
4 |
|
|
|
15 |
|
TSS membership liability revaluation charge |
|
|
17 |
|
|
|
8 |
|
|
|
35 |
|
|
|
18 |
|
Finance and other expense (income) |
|
|
|
(1 |
) |
|
|
(0 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
Bargain purchase gain |
|
|
|
|
(0 |
) |
|
|
- |
|
|
|
(0 |
) |
|
|
(28 |
) |
Impairment of intangible and other non-financial assets |
|
4 |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
Finance costs |
|
|
|
|
|
10 |
|
|
|
9 |
|
|
|
22 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
39 |
|
|
|
30 |
|
|
|
67 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
131 |
|
|
|
103 |
|
|
|
246 |
|
|
|
218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax expense (recovery) |
|
|
|
70 |
|
|
|
42 |
|
|
|
115 |
|
|
|
78 |
|
Deferred income tax expense (recovery) |
|
|
|
|
|
|
|
(22 |
) |
|
|
(12 |
) |
|
|
(34 |
) |
|
|
(20 |
) |
Income tax expense (recovery) |
|
|
|
|
|
|
|
48 |
|
|
|
30 |
|
|
|
80 |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
83 |
|
|
|
73 |
|
|
|
166 |
|
|
|
160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
|
$ |
3.90 |
|
|
$ |
3.45 |
|
|
$ |
7.81 |
|
|
$ |
7.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
|
|
|
|
Condensed Consolidated Interim Statements of Comprehensive
Income |
|
|
|
|
|
|
(In millions of U.S. dollars, except per share amounts. Due
to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three and six months ended June 30, 2020 and 2019 |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
$ |
83 |
|
$ |
73 |
|
$ |
166 |
|
|
$ |
160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that are or may be reclassified subsequently to net
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from foreign
operations |
|
13 |
|
|
8 |
|
|
(17 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax recovery (expense) |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income for the period, net of income
tax |
|
13 |
|
|
8 |
|
|
(17 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period |
$ |
96 |
|
$ |
81 |
|
$ |
149 |
|
|
$ |
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
Condensed Consolidated Interim Statements of Changes in Equity |
|
|
(In millions of U.S. dollars, except per share amounts. Due
to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Six months ended June 30, 2020 |
|
|
|
|
|
|
|
Capital stock |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
|
|
|
|
Cumulative translation account |
|
|
|
|
|
|
|
|
|
Balance at January 1, 2020 |
$ |
99 |
$ |
(40 |
) |
$ |
628 |
|
$ |
687 |
|
|
|
|
|
|
|
|
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
- |
|
- |
|
|
166 |
|
|
166 |
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from |
|
|
|
|
|
foreign operations |
|
- |
|
(17 |
) |
|
- |
|
|
(17 |
) |
|
|
|
|
|
|
|
Total other comprehensive income (loss) |
|
|
|
|
|
for the period |
|
- |
|
(17 |
) |
|
- |
|
|
(17 |
) |
|
|
|
|
|
|
|
Total comprehensive income (loss) for the
period |
|
- |
|
(17 |
) |
|
166 |
|
|
149 |
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity |
|
|
|
|
Dividends to shareholders of the Company |
|
- |
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
|
|
|
|
|
|
Balance at June 30, 2020 |
$ |
99 |
$ |
(57 |
) |
$ |
752 |
|
$ |
794 |
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
Condensed
Consolidated Interim Statements of Changes in Equity |
|
|
(In millions of
U.S. dollars, except per share amounts. Due to rounding,
numbers presented may not foot.) |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Six months ended
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
|
|
|
|
Cumulative translation account |
|
|
|
|
|
|
|
|
|
Balance at
January 1, 2019 |
$ |
99 |
$ |
(37 |
) |
$ |
804 |
|
$ |
866 |
|
|
|
|
|
|
|
|
Total
comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
- |
|
|
160 |
|
|
160 |
|
|
|
|
|
|
|
|
Other
comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation differences from |
|
|
|
|
|
foreign operations |
|
- |
|
4 |
|
|
- |
|
|
4 |
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) for the
period |
|
- |
|
4 |
|
|
- |
|
|
4 |
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
- |
|
4 |
|
|
160 |
|
|
164 |
|
|
|
|
|
|
|
|
Transactions with
owners, recorded directly in equity |
|
|
|
|
Dividends
to shareholders of the Company |
|
- |
|
- |
|
|
(466 |
) |
|
(466 |
) |
|
|
|
|
|
|
|
Balance at June 30, 2019 |
$ |
99 |
$ |
(32 |
) |
$ |
497 |
|
$ |
564 |
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
|
|
|
|
Condensed Consolidated Interim Statements of Cash Flows |
|
|
|
|
|
|
|
(In millions of U.S. dollars, except per share amounts. Due
to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three and six months ended June 30, 2020 and 2019 |
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
83 |
|
|
$ |
73 |
|
|
$ |
166 |
|
|
$ |
160 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
25 |
|
|
|
21 |
|
|
|
51 |
|
|
|
42 |
|
|
|
Amortization of intangible assets |
|
96 |
|
|
|
75 |
|
|
|
190 |
|
|
|
151 |
|
|
|
TSS membership liability revaluation charge |
|
17 |
|
|
|
8 |
|
|
|
35 |
|
|
|
18 |
|
|
|
Finance and other expense (income) |
|
(1 |
) |
|
|
(0 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
Bargain purchase (gain) |
|
(0 |
) |
|
|
- |
|
|
|
(0 |
) |
|
|
(28 |
) |
|
|
Impairment of intangible and other non-financial assets |
|
4 |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
Finance costs |
|
|
|
10 |
|
|
|
9 |
|
|
|
22 |
|
|
|
18 |
|
|
|
Income tax expense (recovery) |
|
48 |
|
|
|
30 |
|
|
|
80 |
|
|
|
58 |
|
|
|
Foreign exchange loss (gain) |
|
10 |
|
|
|
13 |
|
|
|
4 |
|
|
|
15 |
|
|
Change in non-cash operating assets and liabilities |
|
|
|
|
|
|
|
|
|
exclusive of effects of business combinations |
|
(35 |
) |
|
|
(130 |
) |
|
|
100 |
|
|
|
(7 |
) |
|
Income taxes paid |
|
(19 |
) |
|
|
(49 |
) |
|
|
(57 |
) |
|
|
(88 |
) |
|
Net cash flows from operating activities |
|
237 |
|
|
|
50 |
|
|
|
597 |
|
|
|
334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities: |
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
Interest paid on other facilities |
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(14 |
) |
|
|
(15 |
) |
|
Increase (decrease) in CSI facility |
|
|
100 |
|
|
|
- |
|
|
|
35 |
|
|
|
- |
|
|
Increase (decrease) in revolving credit under debt facilities
without recourse to CSI |
|
- |
|
|
|
11 |
|
|
|
(55 |
) |
|
|
(40 |
) |
|
Proceeds from issuance of term debt under facilities without
recourse to CSI |
|
15 |
|
|
|
- |
|
|
|
15 |
|
|
|
- |
|
|
Repayments of term debt under facilities without recourse to
CSI |
|
(3 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(1 |
) |
|
Credit facility transaction costs |
|
(0 |
) |
|
|
- |
|
|
|
(0 |
) |
|
|
- |
|
|
Payments of lease obligations |
|
|
(16 |
) |
|
|
(13 |
) |
|
|
(30 |
) |
|
|
(23 |
) |
|
Distribution to TSS minority owners |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(11 |
) |
|
Dividends paid |
|
(21 |
) |
|
|
(445 |
) |
|
|
(42 |
) |
|
|
(466 |
) |
|
Net cash flows from (used in) in financing activities |
|
67 |
|
|
|
(457 |
) |
|
|
(100 |
) |
|
|
(560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities: |
|
|
|
|
|
|
|
|
Acquisition of businesses |
|
(68 |
) |
|
|
(82 |
) |
|
|
(175 |
) |
|
|
(130 |
) |
|
Cash obtained with acquired businesses |
|
|
10 |
|
|
|
10 |
|
|
|
24 |
|
|
|
35 |
|
|
Post-acquisition settlement payments, net of receipts |
|
(23 |
) |
|
|
(12 |
) |
|
|
(55 |
) |
|
|
(37 |
) |
|
Purchases of other investments |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
Interest, dividends and other proceeds received |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
Property and equipment purchased |
|
(6 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
|
Net cash flows from (used in) investing activities |
|
(87 |
) |
|
|
(97 |
) |
|
|
(220 |
) |
|
|
(149 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency on |
|
|
|
|
|
|
|
|
cash and cash equivalents |
|
5 |
|
|
|
1 |
|
|
|
(9 |
) |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash |
|
221 |
|
|
|
(503 |
) |
|
|
269 |
|
|
|
(375 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
|
364 |
|
|
|
717 |
|
|
|
316 |
|
|
|
589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, end of period |
$ |
585 |
|
|
$ |
214 |
|
|
|
585 |
|
|
|
214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constellation Software (TSX:CSU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Constellation Software (TSX:CSU)
Historical Stock Chart
From Jul 2023 to Jul 2024