TORONTO, ONTARIO -- (Marketwire) -- 02/29/12 -- Constellation Software Inc. (TSX: CSU) ("Constellation" or the "Company") today announced its financial results for the fourth quarter and fiscal year ended December 31, 2011. 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 audited 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, 2011, 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.
2011 Highlights:
-- Revenue grew 22% to $773 million compared to $634 million in 2010.
Organic revenue growth was 10% in 2011 versus negative 4% in 2010.
Excluding the impact of the Public Transit Solutions business ('PTS')
acquired in Q4 2009, organic revenue growth was 6% in 2011 compared to
2% in 2010.
-- Adjusted EBITDA increased $52 million or 45% to $169 million as compared
to 2010
-- Adjusted Net Income increased $57 million or 68% to $140 million ($6.63
on a fully diluted per share basis) from $84 million ($3.95 on a fully
diluted per share basis) in 2010
-- $46 million was deployed on 22 acquisitions which includes $5 million of
post-acquisition settlement payments
-- Cash flow from operations increased $30 million or 28% to $138 million
in 2011 as compared to $107 million in 2010
-- Declaration of initial quarterly dividend of $1.00 per share payable on
April 2, 2012 to all shareholders of record as of March 12, 2012.
Q4 2011 Highlights:
-- Revenue grew 15% to $198 million compared to $172 million in Q4 2010.
Organic revenue growth was 7% compared to 1% in Q4 2010
-- Adjusted EBITDA grew 45% to $47 million compared to Q4 2010
-- Adjusted Net Income grew 78% to $40 million compared to Q4 2010
-- Six acquisitions were completed in the quarter for net cash
consideration of $10 million, including acquisition settlement payments
-- December 31, 2011 cash position (net of borrowings on our line of
credit) increased to $33 million, from negative $15 million at December
31, 2010.
Additional Highlights:
-- Subsequent to December 31, 2011, the Company completed 3 acquisitions
for aggregate cash consideration of $8 million
-- The Company's credit facility to be increased from $160 million to $300
million
Fourth quarter 2011 revenue was $198 million, an increase of 15%, or $26 million, compared to $172 million for the comparable period in 2010. For the 2011 fiscal year, total revenue was $773 million, an increase of 22% compared to $634 million for the 2010 fiscal year. The increases for both the fourth quarter and the full year compared to the same periods in the prior year were attributable to both organic growth and growth from acquisitions. Organic growth from our existing business was estimated at approximately 7% for the fourth quarter and 10% for the full year.
Constellation acquired PTS from Continental Automotive AG on November 2, 2009. Given the substantial amount of non-recurring revenue earned by PTS, gross revenue from PTS can fluctuate significantly from year to year. As such, management has chosen to provide supplemental organic growth disclosure to provide greater clarity regarding the impact of PTS on Constellation's consolidated financial results. Excluding PTS, organic growth for Constellation was 6% in Q4 2011 and 6% for fiscal 2011. The following table provides a summary of the impact of PTS on Constellation's organic revenue growth:
Organic Revenue Growth
----------------------------------------------------------------------------
Three months ended Fiscal year ended
December 31, 2011 December 31, 2011
----------------------------------------------------------------------------
Constellation 7% 10%
Constellation excluding PTS 6% 6%
Adjusted EBITDA for the fourth quarter 2011 was $47 million, a 45% increase compared to the prior year's fourth quarter Adjusted EBITDA of $33 million. Fourth quarter Adjusted EBITDA per share on a fully diluted basis increased 45% to $2.24, compared to $1.55 for the same period last year. Adjusted EBITDA for the year ended December 31, 2011 was $169 million, an increase of 45% over last year's Adjusted EBITDA of $116 million for the same period. Adjusted EBITDA per share on a fully diluted basis for the year increased 45% to $7.96, compared to $5.49 for the same period in 2010.
Adjusted Net Income for the fourth quarter 2011 was $40 million, compared to the prior year's fourth quarter Adjusted Net Income of $23 million, a 78% increase. Fourth quarter Adjusted Net Income per share on a fully diluted basis increased 78% to $1.90 compared to $1.06 for the prior year's fourth quarter. Adjusted Net Income for the year ended December 31, 2011 was $140 million, an increase of 68% over last year's Adjusted Net Income of $84 million for the same period. Adjusted Net Income per share on a fully diluted basis for the year increased 68% to $6.63 compared to $3.95 for the same period in 2010.
Net income for the fourth quarter 2011 was $19 million compared to the prior year's fourth quarter net income of $11 million. On a fully diluted per share basis, this translates into net income per share of $0.92 for the fourth quarter of 2011, compared to $0.51 for the same period of 2010. For the year ended December 31, 2011 net income was $157 million or $7.42 per diluted share compared to $30 million or $1.42 per share last year.
The following table displays our revenue by reportable segment and the percentage change for the three and twelve months ended December 31, 2011 compared to the same periods in 2010:
------------------------------- -------------------------------
Three months Period-Over- Fiscal year Period-Over-
ended Period ended Period
December 31, Change December 31, Change
------------------------------- -------------------------------
2011 2010 $ % 2011 2010 $ %
----------------------------------------------------------------
($000, except ($000, except
percentages) percentages)
Public
Sector
Licenses 11,125 10,705 420 4% 41,717 36,080 5,637 16%
Professional
services 37,081 35,637 1,444 4% 146,281 141,487 4,794 3%
Hardware and
other 22,822 20,063 2,759 14% 97,133 66,076 31,057 47%
Maintenance 73,591 61,898 11,693 19% 286,520 231,189 55,331 24%
------------------------------- -------------------------------
144,619 128,303 16,316 13% 571,651 474,832 96,819 20%
------------------------------- -------------------------------
------------------------------- -------------------------------
Private
Sector
Licenses 5,432 4,545 887 20% 19,359 13,907 5,452 39%
Professional
services 8,956 7,309 1,647 23% 34,885 28,250 6,635 23%
Hardware and
other 2,736 2,452 284 12% 11,583 8,526 3,057 36%
Maintenance 36,614 29,377 7,237 25% 135,863 108,450 27,413 25%
------------------------------- -------------------------------
53,738 43,683 10,055 23% 201,690 159,133 42,557 27%
------------------------------- -------------------------------
Public Sector
For the quarter ended December 31, 2011, total revenue in the public sector reportable segment increased 13%, or $16 million, to $145 million, compared to $128 million for the quarter ended December 31, 2010. For the year ended December 31, 2011, total revenue increased by 20% or $97 million, to $572 million, compared to $475 million for the comparable period in 2010. The increases for both the three and twelve month periods were significant across our license, hardware and other, and maintenance revenue streams. Revenue growth from acquired businesses was significant for both the three and twelve month periods as we completed twenty acquisitions since the beginning of 2010 in our public sector segment. Revenues increased organically by $9 million or 7% in Q4 2011 and by $44 million or 9% for the year ended December 31, 2011 compared to the same periods in 2010. Excluding PTS, revenues increased organically by 5% in Q4 2011 and 5% in the twelve months ended December 31, 2011.
Organic Revenue Growth
----------------------------------------------------------------------------
Three months ended Fiscal year ended
December 31, 2011 December 31, 2011
----------------------------------------------------------------------------
Public Sector 7% 9%
Public Sector excluding PTS 5% 5%
The organic revenue change was primarily driven by the following:
-- Volaris operating group (formerly the Trapeze operating group) (increase
of approximately $5 million in Q4 2011 and an increase of approximately
$38 million for the year ended December 31, 2011). For both the quarter
and year ended December 31, 2011, organic growth was primarily driven by
strong revenue from existing clients and new customers in its transit
and agricultural verticals.
-- Harris operating group (increase of approximately $4 million in Q4 2011
and an increase of approximately $8 million for the year ended December
31, 2011). For both the quarter and year ended December 31, 2011,
organic revenue was primarily driven by strong revenue from existing
clients and new customers in their utility and local government
verticals.
Private Sector
For the quarter ended December 31, 2011, total revenue in the private sector reportable segment increased by 23%, or $10 million, to $54 million, compared to $44 million for the quarter ended December 31, 2010. For the year ended December 31, 2011 total revenue increased by 27% or $43 million, to $202 million, compared to $159 million for the comparable period in 2010. Revenue growth from acquired businesses was significant for both the three and twelve month periods ended December 31, 2011 as we completed twenty-three acquisitions since the beginning of 2010 in our private sector segment. Revenues increased organically by $4 million or 9% in Q4 2011 and $16 million or 10% in the twelve months ended December 31, 2011 compared to the same periods in 2010.
The organic revenue change was primarily driven by the following:
-- Jonas operating group (increase of approximately $3 million in Q4 2011
and an increase of approximately $10 million for the year ended December
31, 2011). Jonas' organic growth was driven by strong sales to both
existing and new customers in its fitness, leisure centre, construction,
and food services verticals.
-- Homebuilder operating group (increase of approximately $1 million in Q4
2011 and an increase of approximately $7 million for the year ended
December 31, 2011). The organic growth was primarily driven by strong
sales to both existing and new customers in its pulp and paper
manufacturing and lease management verticals.
During the quarter, Constellation completed six acquisitions for total net cash consideration of approximately $8 million, and made $2 million in acquisition settlement payments. At December 31, 2011, Constellation's cash position (net of borrowings on our line of credit) increased to $33 million, from negative $15 million at December 31, 2010. Subsequent to December 31, 2011, the Company completed 3 acquisitions for aggregate cash consideration of $8 million. We have arranged an increase in our credit facility from $160 million to $300 million and will be adding additional lenders to our banking syndicate. The facility increase is expected to close in March and will be available for general corporate purposes including acquisitions and expires in 2016.
"We are very pleased with our results in 2011. We generated record returns on capital, 10% organic growth, and had strong cash flow from operations." said Mark Leonard, President of Constellation. "Growth in 2011 was driven by strong organic growth in PTS and by a large amount of capital deployed on acquisitions in 2010. Although we are optimistic about our acquisition pipeline, our overall growth will likely slow in 2012 given the relatively small amount of capital deployed on acquisitions in 2011 and a moderation in the PTS organic revenue growth rate."
Conference Call and Webcast
Management will host a conference call at 9:00 a.m. (ET) on Thursday, March 1, 2012 to answer questions regarding the results. The teleconference numbers are 416-340-8061 or 800-396-7098. The call will also be webcast live and archived on Constellation's website at www.csisoftware.com.
A replay of the conference call will be available as of 11:30 a.m. ET the same day until 11:59 p.m. ET on March 25, 2012. To access the replay, please dial 905-694-9451 or 800-408-3053 followed by the passcode 7560408.
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
The term "Adjusted EBITDA" refers to net income before deducting finance income, finance costs, income taxes, impairment of non-financial assets, depreciation, amortization, and foreign exchange loss (gain). The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed above. "Adjusted EBITDA margin" refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.
"Adjusted net income" means net income plus non-cash expenses (income) such as amortization of intangible assets, deferred income taxes, and certain other non-cash expenses (income). The Company believes that Adjusted net income is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration amortization of intangible assets, deferred income taxes, and certain other non-cash expenses (income) incurred by the Company from time to time. "Adjusted net income margin" refers to the percentage that Adjusted net income for any period represents as a portion of total revenue for that period.
Adjusted EBITDA and Adjusted net income are not recognized measures under IFRS and, accordingly, shareholders are cautioned that Adjusted EBITDA and Adjusted net income should not be construed as alternatives to net income determined in accordance with IFRS. The Company's method of calculating Adjusted EBITDA and Adjusted net income may differ from other issuers and, accordingly, Adjusted EBITDA and Adjusted net income may not be comparable to similar measures presented by other issuers. See "Results of Operations -Adjusted EBITDA" and "- Adjusted net income" for a reconciliation of Adjusted EBITDA and Adjusted net income to net income.
The following table reconciles Adjusted EBITDA to net income:
------------------------ ------------------------
Three months ended Fiscal year ended
December 31, December 31,
------------------------ ------------------------
2011 2010 2011 2010
----------- ------------ ----------- ------------
($000, except ($000, except
percentages) percentages)
Total revenue $ 198,357 $ 171,986 $ 773,341 $ 633,965
------------------------ ------------------------
------------------------ ------------------------
Net income 19,395 10,877 157,174 30,016
Adusted for:
Income tax expense
(recovery) 5,085 (1,919) (75,203) 4,397
Foreign exchange loss 364 2,483 3,392 4,526
Finance income (1,100) (341) (7,267) (1,241)
Finance costs 986 2,111 5,575 5,783
Bargain purchase gain 0 (1,745) 0 (1,745)
Impairment of non-
financial assets (29) - 489 -
Amortization of
intangible assets 20,917 19,260 76,650 67,926
Depreciation 1,829 2,028 7,868 6,756
Adjusted EBITDA 47,447 32,754 168,678 116,418
Adjusted EBITDA margin 24% 19% 22% 18%
------------------------ ------------------------
The following table reconciles Adjusted net income to net income:
------------------------ -------------------------
Three months ended Fiscal year ended
December 31, December 31,
------------------------ -------------------------
2011 2010 2011 2010
----------- ------------ ----------- ------------
($000, except ($000, except
percentages) percentages)
Total revenue $ 198,357 $ 171,986 $ 773,341 $ 633,965
------------------------ -------------------------
------------------------ -------------------------
Net income 19,395 10,877 157,174 30,016
Adusted for:
Amortization of intangible
assets 20,917 19,260 76,650 67,926
Impairment of non-
financial assets (29) - 489 -
Bargain purchase gain 0 (1,745) 0 (1,745)
Deferred income tax
recovery (54) (5,846) (93,818) (12,564)
Adjusted net income 40,229 22,546 140,495 83,633
Adjusted net income margin 20% 13% 18% 13%
------------------------ -------------------------
The following tables provide supplemental statement of operations and cash flow information for PTS:
Supplemental financial information
For the three months and fiscal year ended December 31, 2011
------------------------------------------------------------------------
For the three months ended December 31,
2011
------------------------------------------------------------------------
------------------------------------------------------------------------
Constellation
Software
Inc.
(excluding
(Unaudited) PTS) PTS Consolidated
---------------------------------------------
Revenue $ 164,379 $ 33,978 $ 198,357
Adjusted EBITDA 45,879 1,568 47,447
EBITDA as % Total Revenue 28% 5% 24
------------------------------------------------------------------------
Net Income $ 18,558 $ 837 $ 19,395
------------------------------------------------------------------------
------------------------------------------------------------------------
Cash flows from operating
activities:
Net income $ 18,558 $ 837 $ 19,395
Adjustments to reconcile
net income tonet cash
flows from operations,
less taxes paid: 22,119 707 22,826
Change in non-cash
operating working
capital (9,396) 23,937 14,541
------------------------------------------------------------------------
Cash flows from operating
activities $ 31,281 $ 25,481 $ 56,762
----------------------------------------------------------------------------
For the fiscal year ended December 31, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Constellation
Software
Inc.(excluding
(Unaudited) PTS) PTS Consolidated
-------------------------------------------------
Revenue $ 629,524 $ 143,817 $ 773,341
Adjusted EBITDA 147,233 21,445 168,678
EBITDA as % Total Revenue% 23% 15% 22%
----------------------------------------------------------------------------
Net Income $ 142,478 $ 14,696 $ 157,174
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flows from operating
activities:
Net income $ 142,478 $ 14,696 $ 157,174
Adjustments to reconcile
net income tonet cash
flows from operations,
less taxes paid: (10,151) 6,406 (3,745)
Change in non-cash
operating working
capital (10,661) (5,235) (15,896)
----------------------------------------------------------------------------
Cash flows from operating
activities $ 121,666 $ 15,867 $ 137,533
The following table reconciles Adjusted EBITDA to net income for PTS:
For the three months ended December 31, 2011
---------------------------------------------------------------------------
Constellation
Software
Inc.(excluding
(Unaudited) PTS) PTS Consolidated
-----------------------------------------------
Total revenue $ 164,379 $ 33,978 $ 198,357
-----------------------------------------------
-----------------------------------------------
Net income 18,558 837 19,395
Adjusted for:
Income tax expense 4,095 990 5,085
Other expenses (income) 640 (419) 221
Amortization of intangible
assets 20,917 - 20,917
Depreciation 1,669 160 1,829
Adjusted EBITDA 45,879 1,568 47,447
Adjusted EBITDA margin 28% 5% 24%
For the fiscal year ended December 31, 2011
----------------------------------------------------------------------------
Constellation
Software
Inc.(excluding
(Unaudited) PTS) PTS Consolidated
------------------------------------------------
Total revenue $ 629,524 $ 143,817 $ 773,341
------------------------------------------------
------------------------------------------------
Net income 142,478 14,696 157,174
Adjusted for:
Income tax expense (79,056) 3,853 (75,203)
Other expenses (income) 517 1,672 2,189
Amortization of intangible
assets 76,650 - 76,650
Depreciation 6,644 1,224 7,868
Adjusted EBITDA 147,233 21,445 168,678
Adjusted EBITDA margin 23% 15% 22%
About Constellation Software Inc.
Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation Software is an international provider of market leading software and services to a number of industries across both the public and private sectors. The Company acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the specific needs of its customers in those industries.
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)
December 31, December 31, January 1,
2011 2010 2010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets
Current assets:
Cash $ 33,492 $ 30,911 $ 33,249
Equity securities
available-for-sale 21,222 23,723 22,323
Accounts receivable 100,398 90,898 95,431
Work in progress 26,244 25,607 23,077
Inventories 13,539 15,945 14,320
Other assets 25,633 26,463 26,261
----------------------------------------------------------------------------
220,528 213,547 214,661
Non-current assets:
Property and equipment 14,591 13,469 8,226
Deferred income taxes 99,659 15,368 4,779
Other assets 28,005 23,548 13,879
Intangible assets 267,792 269,987 222,239
----------------------------------------------------------------------------
410,047 322,372 249,123
----------------------------------------------------------------------------
Total assets $ 630,575 $ 535,919 $ 463,784
----------------------------------------------------------------------------
Liabilities and
Shareholders' Equity
Current liabilities:
Bank indebtedness $ - $ 46,041 $ 41,153
Accounts payable and
accrued liabilities 114,952 104,905 86,640
Deferred revenue 181,450 158,025 135,299
Provisions 3,555 2,253 8,312
Acquired contract
liabilities 4,750 10,908 7,652
Acquisition holdback
payments 11,378 6,920 3,587
Income taxes payable 4,751 1,424 3,757
----------------------------------------------------------------------------
320,836 330,476 286,400
Non-current liabilities:
Deferred income taxes 11,259 17,809 16,321
Acquired contract
liabilities 28,051 35,633 41,482
Acquisition holdback
payments 2,474 2,744 2,537
Other liabilities 11,675 6,206 4,018
----------------------------------------------------------------------------
53,459 62,392 64,358
----------------------------------------------------------------------------
Total liabilities 374,295 392,868 350,758
----------------------------------------------------------------------------
Shareholders' equity
Capital stock 99,283 99,283 99,283
Accumulated other
comprehensive income 6,961 8,522 3,003
Retained earnings 150,036 35,246 10,740
----------------------------------------------------------------------------
256,280 143,051 113,026
----------------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 630,575 $ 535,919 $ 463,784
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Comprehensive
Income
(In thousands of U.S. dollars, except per
share amounts)
Years ended December 31, 2011 and 2010
2011 2010
----------------------------------------------------------------------------
Revenue $ 773,341 $ 633,965
Expenses
Staff 401,379 356,539
Hardware 60,854 45,109
Third party license, maintenance and
professional services 51,066 37,669
Occupancy 18,918 16,840
Travel 30,038 23,094
Telecommunications 9,992 9,177
Supplies 15,314 11,125
Professional fees 8,623 8,219
Other 8,479 9,775
----------------------------------------------------------------------------
Income before the undernoted 168,678 116,418
Depreciation 7,868 6,756
Amortization of intangible assets 76,650 67,926
Impairment of non-financial assets 489 -
Foreign exchange loss 3,392 4,526
Finance income (7,267) (1,241)
Finance costs 5,575 5,783
Bargain purchase gain - (1,745)
----------------------------------------------------------------------------
86,707 82,005
Profit before income tax 81,971 34,413
Current income tax expense 18,615 16,961
Deferred income tax recovery (93,818) (12,564)
----------------------------------------------------------------------------
Income tax expense (recovery) (75,203) 4,397
----------------------------------------------------------------------------
Net income 157,174 30,016
----------------------------------------------------------------------------
Net change in fair value
on available-for-sale financial
assets during the period 5,773 6,071
Net unrealized foreign exchange adjustment
gain (loss) on available-for-sale financial
assets during the period (31) 61
Reclassification of unrealized gain
upon derecognition of available-for-sale
investments - (733)
Amounts reclassified to profit during the
period
related to realized gains on
available-for-sale investments (6,253) -
Foreign currency translation differences from
foreign operations (1,188) 1,607
Current tax expense (34) -
Deferred tax recovery (expense) 172 (1,487)
----------------------------------------------------------------------------
Other comprehensive income for the period,
net of income tax (1,561) 5,519
----------------------------------------------------------------------------
Total comprehensive income for the period $ 155,613 $ 35,535
----------------------------------------------------------------------------
Earnings per share
Basic and diluted $ 7.42 $ 1.42
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Year ended December 31, 2011
Accumulated other
comprehensive
income/(loss)
Amounts
related to
gains/losses
on available
Cumulative for-sale
Capital translation financial
stock account assets
Balance at January 1, 2011 $99,283 $1,379 $ 7,143
Total comprehensive income for the
period
Net income
Other comprehensive income (loss)
Net change in fair value
on available-for-sale financial
assets during the period 5,773
Net unrealized foreign exchange
adjustment
gain (loss) on available-for-sale
financial
assets during the period (31)
Amounts reclassified to profit during
the period
related to realized gains on
available-for-sale investments (6,253)
Foreign currency translation
differences from foreign operations (1,188)
Current tax expense (34)
Deferred tax recovery 25 147
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total other comprehensive income
(loss) for the period (1,197) (364)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total comprehensive income for the
period (1,197) (364)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Transactions with owners, recorded
directly in equity
Dividends to owners of the Company
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Balance at December 31, 2011 $99,283 $182 $ 6,779
---------------------------------------------------------------------------
---------------------------------------------------------------------------
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year ended December 31, 2011
Total
accumulated
other
comprehensive Retained
income/(loss) earnings Total
Balance at January 1, 2011 $8,522 $35,246 $143,051
Total comprehensive income for the
period
Net income 157,174 157,174
Other comprehensive income (loss)
Net change in fair value
on available-for-sale financial
assets during the period 5,773 - 5,773
Net unrealized foreign exchange
adjustment
gain (loss) on available-for-sale
financial
assets during the period (31) - (31)
Amounts reclassified to profit during
the period
related to realized gains on
available-for-sale investments (6,253) - (6,253)
Foreign currency translation
differences from foreign operations (1,188) - (1,188)
Current tax expense (34) (34)
Deferred tax recovery 172 - 172
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total other comprehensive income
(loss) for the period (1,561) - (1,561)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total comprehensive income for the
period (1,561) 157,174 155,613
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Transactions with owners, recorded
directly in equity
Dividends to owners of the Company (42,384) (42,384)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance at December 31, 2011 $6,961 $150,036 $256,280
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
Year ended December 31, 2010 Accumulated other
comprehensive
income/(loss)
Amounts
related to
gains/losses
on available
Cumulative for-sale
Capital translation financial
stock account assets
Balance at January 1, 2010 $ 99,283 - $ 3,003
Total comprehensive income for
the period
Net income
Other comprehensive income
(loss)
Net change in fair value
on available-for-sale
financial
assets during the period 6,071
Net unrealized foreign exchange
adjustment
gain (loss) on available-for-
sale financial
assets during the period 61
Reclassification of unrealized
gain from prior periods
upon derecognition of
available-for-sale
investments (733)
Foreign currency translation
differences from foreign
operations 1,607 -
Deferred tax expense (227) (1,260)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total other comprehensive
income (loss) for the period 1,380 4,139
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total comprehensive income for
the period 1,380 4,139
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Transactions with owners,
recorded directly in equity
Dividends to owners of the
Company
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Balance at December 31, 2010 $ 99,283 1,380 $ 7,142
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
Year ended December 31, 2010
Total
accumulated
other
comprehensive Retained
income/(loss) earnings Total
Balance at January 1, 2010 $ 3,003 $ 10,740 $ 113,026
Total comprehensive income for
the period
Net income 30,016 30,016
Other comprehensive income
(loss)
Net change in fair value
on available-for-sale
financial
assets during the period 6,071 - 6,071
Net unrealized foreign exchange
adjustment
gain (loss) on available-for-
sale financial
assets during the period 61 - 61
Reclassification of unrealized
gain from prior periods
upon derecognition of
available-for-sale
investments (733) - (733)
Foreign currency translation
differences from foreign
operations 1,607 - 1,607
Deferred tax expense (1,487) - (1,487)
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
Total other comprehensive
income (loss) for the period 5,519 - 5,519
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
Total comprehensive income for
the period 5,519 30,016 35,535
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
Transactions with owners,
recorded directly in equity
Dividends to owners of the
Company (5,510) (5,510)
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
Balance at December 31, 2010 $ 8,522 $ 35,246 $ 143,051
------------------------------------------------------------- --------------
------------------------------------------------------------- --------------
CONSTELLATION SOFTWARE INC.
Condensed Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
2011 2010
---------------------------------------------------------------------------
Cash flows from operating activities:
Net income $ 157,174 $ 30,016
Adjustments for:
Depreciation 7,868 6,756
Amortization of intangible assets 76,650 67,926
Impairment of non-financial assets 489 -
Finance income (7,267) (1,241)
Finance costs 5,575 5,783
Bargain purchase gain - (1,745)
Income tax expense (recovery) (75,203) 4,397
Foreign exchange loss 3,392 4,526
Change in non-cash operating working capital (15,896) 10,550
Income taxes paid (15,249) (19,695)
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Net cash flows from operating activities 137,533 107,273
Cash flows from financing activities:
Interest paid (4,979) (4,558)
Decrease in other non current liabilities 3,720 326
Decrease in bank indebtedness, net (47,877) 4,191
Dividends paid (42,755) (5,510)
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Net cash flows from financing activities (91,891) (5,551)
Cash flows from investing activities:
Acquisition of businesses, net of cash
acquired (40,511) (90,627)
Post-acquisition settlement payments, net of
receipts (5,345) 7,697
Purchases of available-for-sale equity
securities (5,944) (20,035)
Proceeds from sale of available-for-sale equity
securities 14,268 -
Repayment of notes receivable - 4,085
Decrease in restricted cash 557 1,372
Interest and dividends received 1,113 838
Property and equipment purchased (7,350) (7,092)
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Cash flows provided for (used in) investing
activities (43,212) (103,762)
Effect of currency translation adjustment on
cash and cash equivalents 151 (298)
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Decrease in cash and cash equivalents 2,581 (2,338)
Cash, beginning of period 30,911 33,249
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Cash, end of period $ 33,492 $ 30,911
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Contacts:
Constellation Software Inc.
John Billowits
Chief Financial Officer
(416) 861-2279
info@csisoftware.com
www.csisoftware.com
