Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2021 and Declares Quarterly Dividend
August 05 2021 - 5:02PM
Constellation Software Inc. (TSX:CSU) (“Constellation” or the
“Company”) today announced its financial results for the second
quarter ended June 30, 2021 and declared a $1.00 per share dividend
payable on October 8, 2021 to all common shareholders of record at
close of business on September 17, 2021. 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, 2021 and the accompanying notes, our Management Discussion
and Analysis for the three and six months ended June 30, 2021 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, 2020, 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
Q2 2021 Headlines:
- Revenue grew 35% (14% organic
growth, 8% after adjusting for changes in foreign exchange rates)
to $1,249 million compared to $922 million in Q2
2020.
- Net income attributable to common
shareholders increased 7% to $88 million ($4.16 on a diluted per
share basis) from $83 million ($3.90 on a diluted per share basis)
in Q2 2020.
- A number of acquisitions were
completed for aggregate cash consideration of $292 million (which
includes acquired cash). Deferred payments associated with these
acquisitions have an estimated value of $36 million resulting in
total consideration of $328 million.
- Cash flows from operations (“CFO”)
were $171 million, a decrease of 28%, or $66 million, compared to
$237 million for the comparable period in 2020.
- Free cash flow available to
shareholders1 (“FCFA2S”) decreased $46 million to $145 million
compared to $190 million for the same period in 2020.
- The Company determined that certain
of its subsidiaries qualified for an estimated aggregate amount of
$8 million of grants from various government authorities, and
recognized such amounts as a reduction to expenses in the
quarter.
- The holders of the Topicus Coop
Preference Units (the “Preferred Securities”) elected to convert
their Preferred Securities into Topicus Coop Ordinary Units, which
conversion will become effective on February 1, 2022.
- Subsequent to June 30, 2021, the
Company completed or entered into agreements to acquire a number of
businesses for aggregate cash consideration of $122 million.
Deferred payments associated with these acquisitions have an
estimated value of $25 million resulting in total consideration of
$146 million.
Total revenue for the quarter ended June 30,
2021 was $1,249 million, an increase of 35%, or $327 million,
compared to $922 million for the comparable period in 2020. For the
first six months of 2021 total revenues were $2,425 million, an
increase of 29%, or $550 million, compared to $1,875 million for
the comparable period in 2020. 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 14% and 10% respectively, 8% and 5%
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.
The Net income attributable to common
shareholders of CSI for the quarter ended June 30, 2021 was $88
million compared to net income of $83 million for the same period
in 2020. On a per share basis this translated into a net income per
diluted share of $4.16 in the quarter ended June 30, 2021 compared
to net income per diluted share of $3.90 for the same period in
2020. For the six months ended June 30, 2021, net income
attributable to common shareholders of CSI was $80 million or $3.76
per diluted share compared to $166 million or $7.81 per diluted
share for the same period in 2020. There was no change in the
number of shares outstanding.
For the quarter ended June 30, 2021, CFO
decreased $66 million to $171 million compared to $237 million for
the same period in 2020 representing a decrease of 28%. For the
first six months of 2021, CFO increased $69 million to $667 million
compared to $597 million during the same period in 2020,
representing an increase of 12%.
For the quarter ended June 30, 2021, FCFA2S
decreased $46 million to $145 million compared to $190 million for
the same period in 2020. For the first six months of
2021, FCFA2S decreased $88 million to $413 million compared to $501
million during the same period in 2020, representing a decrease of
18%.
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, |
|
|
|
|
2021 |
|
2020 |
|
|
|
|
2021 |
|
2020 |
|
|
|
|
($ in millions, except percentages) |
|
($ in millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
Net
cash flows from operating activities |
|
|
171 |
|
237 |
|
|
|
|
667 |
|
597 |
|
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
Interest
paid on lease obligations |
|
|
(2 |
) |
(2 |
) |
|
|
|
(5 |
) |
(4 |
) |
|
Interest
paid on other facilities |
|
|
(9 |
) |
(5 |
) |
|
|
|
(18 |
) |
(14 |
) |
|
Credit
facility transaction costs |
|
|
(2 |
) |
(0 |
) |
|
|
|
(4 |
) |
(0 |
) |
|
Payments of
lease obligations |
|
|
(20 |
) |
(16 |
) |
|
|
|
(41 |
) |
(30 |
) |
|
IRGA / TSS
membership liability revaluation charge |
|
|
(22 |
) |
(17 |
) |
|
|
|
(82 |
) |
(35 |
) |
|
Property and
equipment purchased |
|
|
(7 |
) |
(6 |
) |
|
|
|
(11 |
) |
(13 |
) |
|
Interest and
dividends received |
|
|
1 |
|
0 |
|
|
|
|
1 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110 |
|
190 |
|
|
|
|
507 |
|
501 |
|
|
Less amount
attributable to |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
35 |
|
|
|
|
|
(94 |
) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow available to shareholders |
|
|
145 |
|
190 |
|
|
|
|
413 |
|
501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
Consolidated
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, 2021 |
December 31, 2020 |
June 30, 2020 |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
851 |
|
$ |
758 |
|
$ |
585 |
|
|
Accounts
receivable |
|
505 |
|
|
483 |
|
|
393 |
|
|
Unbilled
revenue |
|
137 |
|
|
98 |
|
|
103 |
|
|
Inventories |
|
28 |
|
|
27 |
|
|
32 |
|
|
Other
assets |
|
271 |
|
|
219 |
|
|
207 |
|
|
|
|
1,792 |
|
|
1,585 |
|
|
1,319 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
Property and
equipment |
|
93 |
|
|
86 |
|
|
78 |
|
|
Right of use
assets |
|
263 |
|
|
251 |
|
|
241 |
|
|
Deferred
income taxes |
|
58 |
|
|
52 |
|
|
45 |
|
|
Other
assets |
|
86 |
|
|
75 |
|
|
73 |
|
|
Intangible assets |
|
3,000 |
|
|
2,325 |
|
|
2,011 |
|
|
|
|
3,499 |
|
|
2,790 |
|
|
2,448 |
|
|
|
|
|
|
Total assets |
$ |
5,291 |
|
$ |
4,375 |
|
$ |
3,767 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Debt with
recourse to Constellation Software Inc. |
$ |
131 |
|
$ |
113 |
|
$ |
192 |
|
|
Debt without
recourse to Constellation Software Inc. |
|
41 |
|
|
28 |
|
|
3 |
|
|
Redeemable
preferred securities |
|
7 |
|
|
- |
|
|
- |
|
|
Accounts
payable and accrued liabilities |
|
671 |
|
|
666 |
|
|
480 |
|
|
Dividends
payable |
|
21 |
|
|
21 |
|
|
21 |
|
|
Deferred
revenue |
|
1,222 |
|
|
962 |
|
|
938 |
|
|
Provisions |
|
13 |
|
|
12 |
|
|
10 |
|
|
Acquisition
holdback payables |
|
78 |
|
|
85 |
|
|
72 |
|
|
Lease
obligations |
|
80 |
|
|
74 |
|
|
67 |
|
|
Income taxes
payable |
|
67 |
|
|
78 |
|
|
95 |
|
|
|
|
2,332 |
|
|
2,040 |
|
|
1,879 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
Debt with
recourse to Constellation Software Inc. |
|
548 |
|
|
421 |
|
|
374 |
|
|
Debt without
recourse to Constellation Software Inc. |
|
327 |
|
|
199 |
|
|
159 |
|
|
Deferred
income taxes |
|
372 |
|
|
285 |
|
|
243 |
|
|
Acquisition
holdback payables |
|
43 |
|
|
37 |
|
|
29 |
|
|
Lease
obligations |
|
209 |
|
|
201 |
|
|
193 |
|
|
Other
liabilities |
|
139 |
|
|
146 |
|
|
98 |
|
|
|
|
1,637 |
|
|
1,288 |
|
|
1,095 |
|
|
|
|
|
|
Total liabilities |
|
3,969 |
|
|
3,328 |
|
|
2,974 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Capital
stock |
|
99 |
|
|
99 |
|
|
99 |
|
|
Other
equity |
|
(162 |
) |
|
- |
|
|
- |
|
|
Accumulated
other comprehensive income (loss) |
|
(56 |
) |
|
(31 |
) |
|
(57 |
) |
|
Retained
earnings |
|
1,017 |
|
|
980 |
|
|
752 |
|
|
Non-controlling interests |
|
423 |
|
|
- |
|
|
- |
|
|
|
|
1,322 |
|
|
1,048 |
|
|
794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
5,291 |
|
$ |
4,375 |
|
$ |
3,767 |
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
|
|
|
Condensed Consolidated Interim Statements of Income (loss) |
|
|
|
|
|
|
(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, 2021 |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
License |
$ |
71 |
|
|
$ |
51 |
|
|
$ |
137 |
|
|
$ |
108 |
|
Professional services |
|
254 |
|
|
|
170 |
|
|
|
491 |
|
|
|
347 |
|
Hardware and other |
|
43 |
|
|
|
35 |
|
|
|
82 |
|
|
|
77 |
|
Maintenance and other recurring |
|
880 |
|
|
|
666 |
|
|
|
1,714 |
|
|
|
1,342 |
|
|
|
1,249 |
|
|
|
922 |
|
|
|
2,425 |
|
|
|
1,875 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Staff |
|
665 |
|
|
|
480 |
|
|
|
1,306 |
|
|
|
990 |
|
Hardware |
|
23 |
|
|
|
22 |
|
|
|
45 |
|
|
|
45 |
|
Third party license, maintenance and professional services |
|
109 |
|
|
|
77 |
|
|
|
205 |
|
|
|
156 |
|
Occupancy |
|
10 |
|
|
|
8 |
|
|
|
19 |
|
|
|
17 |
|
Travel, telecommunications, supplies, software and equipment |
|
44 |
|
|
|
31 |
|
|
|
83 |
|
|
|
82 |
|
Professional fees |
|
17 |
|
|
|
13 |
|
|
|
32 |
|
|
|
26 |
|
Other, net |
|
14 |
|
|
|
0 |
|
|
|
19 |
|
|
|
5 |
|
Depreciation |
|
30 |
|
|
|
25 |
|
|
|
59 |
|
|
|
51 |
|
Amortization of intangible assets |
|
124 |
|
|
|
96 |
|
|
|
242 |
|
|
|
190 |
|
|
|
1,035 |
|
|
|
752 |
|
|
|
2,010 |
|
|
|
1,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss (gain) |
|
15 |
|
|
|
10 |
|
|
|
2 |
|
|
|
4 |
|
IRGA/TSS
Membership liability revaluation charge |
|
22 |
|
|
|
17 |
|
|
|
82 |
|
|
|
35 |
|
Finance and
other expense (income) |
|
(2 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
Bargain
purchase gain |
|
0 |
|
|
|
(0 |
) |
|
|
0 |
|
|
|
(0 |
) |
Impairment
of intangible and other non-financial assets |
|
2 |
|
|
|
4 |
|
|
|
5 |
|
|
|
8 |
|
Redeemable
preferred securities expense (income) |
|
32 |
|
|
|
- |
|
|
|
295 |
|
|
|
- |
|
Finance
costs |
|
17 |
|
|
|
10 |
|
|
|
32 |
|
|
|
22 |
|
|
|
86 |
|
|
|
39 |
|
|
|
413 |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
128 |
|
|
|
131 |
|
|
|
2 |
|
|
|
246 |
|
|
|
|
|
|
|
|
|
Current
income tax expense (recovery) |
|
75 |
|
|
|
70 |
|
|
|
138 |
|
|
|
115 |
|
Deferred income tax expense (recovery) |
|
(25 |
) |
|
|
(22 |
) |
|
|
(39 |
) |
|
|
(34 |
) |
Income tax
expense (recovery) |
|
50 |
|
|
|
48 |
|
|
|
99 |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
78 |
|
|
|
83 |
|
|
|
(97 |
) |
|
|
166 |
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to: |
|
|
|
|
|
|
|
Equity holders of Constellation Software Inc. |
|
88 |
|
|
|
83 |
|
|
|
80 |
|
|
|
166 |
|
Non-controlling interests |
|
(11 |
) |
|
|
- |
|
|
|
(177 |
) |
|
|
- |
|
Net income (loss) |
|
78 |
|
|
|
83 |
|
|
|
(97 |
) |
|
|
166 |
|
|
|
|
|
|
|
|
|
Earnings per
common share of Constellation Software Inc. |
|
|
|
|
|
|
|
Basic and diluted |
$ |
4.16 |
|
|
$ |
3.90 |
|
|
$ |
3.76 |
|
|
$ |
7.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTELLATION SOFTWARE INC. |
|
|
|
|
|
|
|
Condensed Consolidated Interim Statements of Comprehensive Income
(Loss) |
|
|
|
|
|
|
(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, 2021 |
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
78 |
|
|
$ |
83 |
|
$ |
(97 |
) |
|
$ |
166 |
|
|
|
|
|
|
|
|
|
Items that
are or may be reclassified subsequently to net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from foreign operations
and other |
|
5 |
|
|
|
13 |
|
|
(18 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of income
tax |
|
5 |
|
|
|
13 |
|
|
(18 |
) |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period |
$ |
83 |
|
|
$ |
96 |
|
$ |
(115 |
) |
|
$ |
149 |
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
Equity holders of Constellation Software Inc. |
|
11 |
|
|
|
13 |
|
|
(6 |
) |
|
|
(17 |
) |
Non-controlling interests |
|
(6 |
) |
|
|
- |
|
|
(11 |
) |
|
|
- |
|
Total other comprehensive income (loss) |
$ |
5 |
|
|
$ |
13 |
|
$ |
(18 |
) |
|
$ |
(17 |
) |
|
|
|
|
|
|
|
|
Total
comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
Equity holders of Constellation Software Inc. |
|
99 |
|
|
|
96 |
|
|
73 |
|
|
|
149 |
|
Non-controlling interests |
|
(16 |
) |
|
|
- |
|
|
(188 |
) |
|
|
- |
|
Total comprehensive income (loss) |
$ |
83 |
|
|
$ |
96 |
|
$ |
(115 |
) |
|
$ |
149 |
|
|
|
|
|
|
|
|
|
CONSTELLATION
SOFTWARE INC. |
Condensed Consolidated
Interim Statement 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, 2021 |
|
|
|
|
|
|
|
|
|
Equity Attributable to Shareholders of CSI |
|
|
|
|
Capital stock |
Other equity |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
|
|
|
|
|
|
|
|
|
Balance at January 1, 2021 |
$ |
99 |
$ |
- |
|
$ |
(31 |
) |
$ |
980 |
|
$ |
1,048 |
|
|
- |
|
$ |
1,048 |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
- |
|
- |
|
|
- |
|
|
80 |
|
|
80 |
|
|
(177 |
) |
|
(97 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from |
|
|
|
|
|
|
|
|
foreign operations and other |
|
- |
|
- |
|
|
(6 |
) |
|
- |
|
|
(6 |
) |
|
(11 |
) |
|
(18 |
) |
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) |
|
|
|
|
|
|
|
|
for
the period |
|
- |
|
- |
|
|
(6 |
) |
|
- |
|
|
(6 |
) |
|
(11 |
) |
|
(18 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the
period |
|
- |
|
- |
|
|
(6 |
) |
|
80 |
|
|
73 |
|
|
(188 |
) |
|
(115 |
) |
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special dividend of Topicus Subordinate Voting Shares |
|
- |
|
(141 |
) |
|
(16 |
) |
|
- |
|
|
(157 |
) |
|
157 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Issuance of Topicus Coop Ordinary Units to non-controlling
interests |
|
- |
|
(21 |
) |
|
(2 |
) |
|
- |
|
|
(23 |
) |
|
23 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net acquisition of non-controlling interest associated with
acquisitions and other movements |
|
- |
|
1 |
|
|
- |
|
|
0 |
|
|
1 |
|
|
2 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
Dividends to shareholders of the Company |
|
- |
|
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
- |
|
|
(42 |
) |
|
|
|
|
|
|
|
|
|
Reclassification of Redeemable preferred securities of Topicus Coop
from liabilities to non-controlling interest |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
434 |
|
|
434 |
|
|
|
|
|
|
|
|
|
|
Accrued dividends to preference unit holders of Topicus Coop |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(5 |
) |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
Balance at June 30, 2021 |
$ |
99 |
$ |
(162 |
) |
|
(56 |
) |
$ |
1,017 |
|
$ |
899 |
|
$ |
423 |
|
$ |
1,322 |
|
CONSTELLATION
SOFTWARE INC. |
Condensed Consolidated
Interim Statement 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Attributable to Shareholders of CSI |
|
|
|
|
Capital stock |
Other equity |
Accumulated other comprehensive income (loss) |
Retained earnings |
Total |
Non-controlling interests |
Total equity |
|
|
|
|
|
|
|
|
|
Balance at January 1, 2020 |
$ |
99 |
$ |
- |
$ |
(40 |
) |
$ |
628 |
|
$ |
687 |
|
$ |
- |
$ |
687 |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
- |
|
- |
|
- |
|
|
166 |
|
|
166 |
|
|
- |
|
166 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from |
|
|
|
|
|
|
|
|
foreign operations and other |
|
- |
|
- |
|
(17 |
) |
|
- |
|
|
(17 |
) |
|
- |
|
(17 |
) |
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) for the
period |
|
- |
|
- |
|
(17 |
) |
|
- |
|
|
(17 |
) |
|
- |
|
(17 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the
period |
|
- |
|
- |
|
(17 |
) |
|
166 |
|
|
149 |
|
|
- |
|
149 |
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity |
|
|
|
|
|
|
|
Dividends to shareholders of the Company |
|
- |
|
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
- |
|
(42 |
) |
|
|
|
|
|
|
|
|
|
Balance at June 30, 2020 |
$ |
99 |
$ |
- |
$ |
(57 |
) |
$ |
752 |
|
$ |
794 |
|
$ |
- |
$ |
794 |
|
|
|
|
|
|
|
|
|
|
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, 2021 |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
78 |
|
|
$ |
83 |
|
|
$ |
(97 |
) |
|
$ |
166 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
30 |
|
|
|
25 |
|
|
|
59 |
|
|
|
51 |
|
|
|
Amortization
of intangible assets |
|
124 |
|
|
|
96 |
|
|
|
242 |
|
|
|
190 |
|
|
|
IRGA/TSS
Membership liability revaluation charge |
|
22 |
|
|
|
17 |
|
|
|
82 |
|
|
|
35 |
|
|
|
Finance and
other expense (income) |
|
(2 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
Bargain
purchase (gain) |
|
0 |
|
|
|
(0 |
) |
|
|
0 |
|
|
|
(0 |
) |
|
|
Impairment
of intangible and other non-financial assets |
|
2 |
|
|
|
4 |
|
|
|
5 |
|
|
|
8 |
|
|
|
Redeemable
preferred securities expense (income) |
|
32 |
|
|
|
- |
|
|
|
295 |
|
|
|
- |
|
|
|
Finance
costs |
|
17 |
|
|
|
10 |
|
|
|
32 |
|
|
|
22 |
|
|
|
Income tax
expense (recovery) |
|
50 |
|
|
|
48 |
|
|
|
99 |
|
|
|
80 |
|
|
|
Foreign
exchange loss (gain) |
|
15 |
|
|
|
10 |
|
|
|
2 |
|
|
|
4 |
|
|
Change in non-cash operating assets and liabilities |
|
|
|
|
|
|
|
|
|
exclusive of
effects of business combinations |
|
(99 |
) |
|
|
(35 |
) |
|
|
100 |
|
|
|
100 |
|
|
Income taxes paid |
|
(97 |
) |
|
|
(19 |
) |
|
|
(149 |
) |
|
|
(57 |
) |
|
Net cash flows from (used in) operating activities |
|
171 |
|
|
|
237 |
|
|
|
667 |
|
|
|
597 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities: |
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
(2 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
Interest paid on debt |
|
(9 |
) |
|
|
(5 |
) |
|
|
(18 |
) |
|
|
(14 |
) |
|
Increase (decrease) in CSI facility |
|
- |
|
|
|
100 |
|
|
|
- |
|
|
|
35 |
|
|
Increase (decrease) in revolving credit debt facilities without
recourse to CSI |
|
6 |
|
|
|
- |
|
|
|
12 |
|
|
|
(55 |
) |
|
Proceeds from issuance of term debt facilities without recourse to
CSI |
|
55 |
|
|
|
15 |
|
|
|
134 |
|
|
|
15 |
|
|
Repayments of term debt facilities without recourse to CSI |
|
(1 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
Credit facility transaction costs |
|
(2 |
) |
|
|
(0 |
) |
|
|
(4 |
) |
|
|
(0 |
) |
|
Payments of lease obligations |
|
(20 |
) |
|
|
(16 |
) |
|
|
(41 |
) |
|
|
(30 |
) |
|
Distribution to the Joday Group |
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
|
- |
|
|
Dividends paid |
|
(21 |
) |
|
|
(21 |
) |
|
|
(42 |
) |
|
|
(42 |
) |
|
Net cash flows from (used in) in financing activities |
|
6 |
|
|
|
67 |
|
|
|
12 |
|
|
|
(100 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities: |
|
|
|
|
|
|
|
|
Acquisition of businesses |
|
(292 |
) |
|
|
(68 |
) |
|
|
(606 |
) |
|
|
(175 |
) |
|
Cash obtained with acquired businesses |
|
40 |
|
|
|
10 |
|
|
|
85 |
|
|
|
24 |
|
|
Post-acquisition settlement payments, net of receipts |
|
(39 |
) |
|
|
(23 |
) |
|
|
(85 |
) |
|
|
(55 |
) |
|
Receipt of additional subscription amount from the sellers of
Topicus.com B.V. |
|
33 |
|
|
|
- |
|
|
|
33 |
|
|
|
- |
|
|
Purchases of other investments |
|
- |
|
|
|
(1 |
) |
|
|
(0 |
) |
|
|
(2 |
) |
|
Interest, dividends and other proceeds received |
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
Property and equipment purchased |
|
(7 |
) |
|
|
(6 |
) |
|
|
(11 |
) |
|
|
(13 |
) |
|
Net cash flows from (used in) investing activities |
|
(263 |
) |
|
|
(87 |
) |
|
|
(582 |
) |
|
|
(220 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency on |
|
|
|
|
|
|
|
|
cash and cash equivalents |
|
5 |
|
|
|
5 |
|
|
|
(4 |
) |
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash |
|
(81 |
) |
|
|
221 |
|
|
|
94 |
|
|
|
269 |
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
$ |
932 |
|
|
$ |
364 |
|
|
$ |
758 |
|
|
$ |
316 |
|
|
|
|
|
|
|
|
|
|
|
Cash, end of period |
|
851 |
|
|
$ |
585 |
|
|
$ |
851 |
|
|
$ |
585 |
|
|
|
|
|
|
|
|
|
|
|
Constellation Software (TSX:CSU)
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