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Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2017 and Declares Quarterly Dividend

TORONTO, Oct. 26, 2017 (GLOBE NEWSWIRE) -- Constellation Software Inc. (CSU.TO) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2017 and declared a $1.00 per share dividend payable on January 4, 2018 to all common shareholders of record at close of business on December 15, 2017. 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 nine months ended September 30, 2017 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2017 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, 2016, 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.

Q3 2017 Headlines:

  • Revenue grew 17% (4% organic growth, 2% after adjusting for changes in foreign exchange rates) to $637 million compared to $546 million in Q3 2016.
  • Adjusted EBITA increased $21 million or 15% to $162 million as compared to $140 million in Q3 2016. 
  • Net income decreased 20% to $54 million ($2.56 on a diluted per share basis) from $68 million ($3.18 on a diluted per share basis) in Q3 2016.
  • Adjusted net income declined 4% to $116 million ($5.45 on a diluted per share basis) from $121 million ($5.70 on a diluted per share basis) in Q3 2016.  Excluding the impact of unrealized foreign exchange (gains) and losses recorded in Q3 2017 and Q3 2016 Adjusted net income increased 3% to $123 million ($5.81 on a diluted per share basis) from $120 million ($5.65 on a diluted per share basis) in Q3 2016.
  • Fourteen acquisitions were completed for aggregate cash consideration of $52 million (which includes acquired cash).  Deferred payments associated with these acquisitions have an estimated value of $12 million.
  • Cash flows from operations were $123 million, a decrease of 11%, or $15 million, compared to $138 million for the comparable period in 2016.
  • Subsequent to September 30, 2017, the Company entered into agreements to acquire seven entities for aggregate cash consideration of $41 million on closing plus cash holdbacks of $9 million for total consideration of $50 million.

Total revenue for the quarter ended September 30, 2017 was $637 million, an increase of 17%, or $91 million, compared to $546 million for the comparable period in 2016.  For the first nine months of 2017 total revenues were $1,792 million, an increase of 15%, or $231 million, compared to $1,561 million for the comparable period in 2016.  The increase for both the three and nine 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 4% and 2% respectively, 2% and 3% respectively after adjusting for the impact of the changes in the valuation of the US dollar against most major currencies in which the Company transacts business.

For the quarter ended September 30, 2017, Adjusted EBITA increased to $162 million compared to $140 million for the same period in 2016 representing an increase of 15%.  Adjusted EBITA margin was 25% for the quarter ended September 30, 2017 and 26% for the same period in 2016.  For the first nine months of 2017, Adjusted EBITA increased to $447 million compared to $379 million during the same period in 2016, representing an increase of 18%.  Adjusted EBITA margin was 25% in the first nine months of 2017 and 24% for the same period in 2016. 

Net income for the quarter ended September 30, 2017 was $54 million compared to net income of $68 million for the same period in 2016.  On a per share basis this translated into a net income per diluted share of $2.56 in the quarter ended September 30, 2017 compared to net income per diluted share of $3.18 for the same period in 2016.  For the nine months ended September 30, 2017, net income was $146 million or $6.88 per diluted share compared to $141 million or $6.66 per diluted share for the same period in 2016.

For the quarter ended September 30, 2017, Adjusted net income decreased to $116 million from $121 million for the same period in 2016, representing a decrease of 4%.  Adjusted net income margin was 18% for the quarter ended September 30, 2017 and 22% for the same period in 2016.  For the first nine months of 2017, Adjusted net income increased to $322 million from $273 million during the same period in 2016, representing an increase of 18%.  Adjusted net income margin was 18% in the first nine months of 2017 and 17% for the same period in 2016. Excluding the impact of the unrealized foreign exchange (gain) loss recorded in each of the three and nine month periods ended September 30, 2016 and 2017 the margins would have been 19% for both of the respective periods in 2017, and 22% and 19% for the respective periods in 2016. 

Cash flows from operations for the quarter ended September 30, 2017 were $123 million, a decrease of 11%, or $15 million, compared to $138 million for the comparable period in 2016.   

The following table displays our revenue by reportable segment and the percentage change for the three and nine months ended September 30, 2017 compared to the same periods in 2016:

                         
    Three months ended
September 30,
Period-Over-
Period Change
Organic
Growth
  Nine months ended
September 30,
Period-Over-
Period Change
Organic
Growth
    2017 2016 $ % %   2017 2016 $ % %
    ($M, except percentages)     ($M, except percentages)  
Public Sector                        
Licenses   28 21 7 34 % 2 %   75 63 12 20 % -9 %
Professional services   101 87 14 16 % 4 %   287 251 36 14 % 1 %
Hardware and other   37 33 4 12 % 4 %   96 88 8 9 % 3 %
Maintenance and other recurring   269 226 43 19 % 5 %   759 643 115 18 % 3 %
    436 368 68 18 % 5 %   1,217 1,045 172 16 % 2 %
                                 
Private Sector                        
Licenses   16 14 2 15 % 3 %   46 41 5 12 % 2 %
Professional services   24 22 2 8 % -3 %   72 67 5 8 % -2 %
Hardware and other   7 7 0 4 % -10 %   21 21 0 1 % -8 %
Maintenance and other recurring   153 134 19 14 % 4 %   437 388 48 12 % 3 %
    200 178 23 13 % 2 %   575 517 59 11 % 2 %
                         
Certain totals and percentages may not reconcile due to rounding.
 

For purposes of calculating organic growth, estimated pre-acquisition revenue from the relevant companies acquired in 2016 and 2017 was added to actual reported revenue for the three and nine months ended September 30, 2016.

Public Sector

For the quarter ended September 30, 2017, total revenue in the public sector reportable segment increased 18%, or $68 million to $436 million, compared to $368 million for the quarter ended September 30, 2016.  For the nine months ended September 30, 2017, total revenue increased by 16%, or $172 million to $1,217 million, compared to $1,045 million for the comparable period in 2016.  Organic revenue growth was 5% and 2% respectively for the three and nine months ended September 30, 2017 compared to the same periods in 2016, and 3% and 2% for after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business.   

Private Sector

For the quarter ended September 30, 2017, total revenue in the private sector reportable segment increased 13%, or $23 million to $200 million, compared to $178 million for the quarter ended September 30, 2016.  For the nine months ended September 30, 2017, total revenue increased by 11%, or $59 million to $575 million, compared to $517 million for the comparable period in 2016.  Organic revenue growth was 2% for both the three and nine months ended September 30, 2017 compared to the same periods in 2016, and 1% and 3% 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.  

Conference Call and Webcast
Management will host a conference call at 7:30 a.m. (ET) on Friday, October 27, 2017 to answer questions regarding the results.  The teleconference numbers are 647-788-4919 or 877-291-4570.  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 12:30 p.m. ET the same day until 11:59 p.m. ET on November 10, 2017. To access the replay, please dial 416-621-4642 or 800-585-8367 followed by the passcode 99526408.

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 EBITA’’ refers to net income before adjusting for finance and other income, bargain purchase gain, finance costs, income taxes, share in net income or loss of equity investees, impairment of non-financial assets, amortization, TSS membership liability revaluation charge, and foreign exchange gain or loss.  The Company believes that Adjusted EBITA 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 intangible asset amortization and the other items listed above.  ‘‘Adjusted EBITA margin’’ refers to the percentage that Adjusted EBITA for any period represents as a portion of total revenue for that period.

‘‘Adjusted net income’’ means net income adjusted for non-cash expenses (income) such as amortization of intangible assets, deferred income taxes, the TSS membership liability revaluation charge, and certain other expenses (income), and excludes the portion of the adjusted net income of Total Specific Solutions (TSS) B.V. (“TSS”) attributable to the minority owners of TSS.  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, the TSS membership liability revaluation charge, and certain other non-cash expenses (income) incurred or recognized by the Company from time to time, and adjusts for the portion of TSS’ Adjusted net income not attributable to shareholders of Constellation.  ‘‘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 EBITA and Adjusted net income are not recognized measures under IFRS and, accordingly, readers are cautioned that Adjusted EBITA 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 EBITA and Adjusted net income may differ from other issuers and, accordingly, Adjusted EBITA and Adjusted net income may not be comparable to similar measures presented by other issuers.  Adjusted EBITA includes 100% of the Adjusted EBITA of TSS.

The following table reconciles Adjusted EBITA to net income:

                     
      Three months ended
September 30,
      Nine months ended
September 30,
 
      2017   2016         2017   2016    
    ($M, except percentages)   ($M, except percentages)
                     
Total revenue     636   546         1,792   1,561    
                     
Net income     54   67         146   141    
Adjusted for:                    
Income tax expense (recovery)     26   27         69   59    
Foreign exchange (gain) loss     8   (1 )       11   25    
TSS membership liability revaluation charge     12   7         40   14    
Share in net (income) loss of equity investees     (0 ) (5 )       (0 ) (6 )  
Finance and other income     (1 ) (3 )       (2 ) (3 )  
Bargain purchase gain     (5 ) -         (5 ) -    
Finance costs     9   5         19   16    
Amortization of intangible assets     60   43         168   132    
                     
Adjusted EBITA     162   140         447   379    
Adjusted EBITA margin     25 % 26 %       25 % 24 %  
                     
Certain totals and percentages may not reconcile due to rounding.                
                     

The following table reconciles Adjusted net income to net income:

                     
      Three months ended
September 30,
      Nine months ended
September 30,
 
      2017   2016         2017   2016    
    ($M, except percentages)   ($M, except percentages)
                     
Total revenue     636   546         1,792   1,561    
                     
Net income     54   67         146   141    
Adjusted for:                    
Amortization of intangible assets     60   43         168   132    
TSS membership liability revaluation charge     12   7         40   14    
Bargain purchase gain     (5 ) -         (5 ) -    
Less non-controlling interest in the Adjusted                    
net income of TSS     (5 ) (4 )       (16 ) (13 )  
Deferred income tax expense (recovery)     (0 ) 8         (11 ) (1 )  
                     
Adjusted net income     115   121         322   273    
Adjusted net income margin     18 % 22 %       18 % 17 %  
                     
Certain totals and percentages may not reconcile due to rounding.
                 

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 Baksh
Chief Financial Officer
(416) 861-9677
info@csisoftware.com
www.csisoftware.com

       
CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of U.S. dollars)
         
Unaudited      
      September 30, 2017 December 31, 2016
         
Assets      
         
Current assets:      
  Cash   $ 414,586   $ 353,499  
  Equity securities available-for-sale     -     4,236  
  Accounts receivable, net     298,798     243,554  
  Work in progress     68,602     56,541  
  Inventories     29,240     19,667  
  Other assets     107,499     96,181  
        918,725     773,678  
         
Non-current assets:      
  Property and equipment     53,006     46,395  
  Deferred income taxes     34,494     49,863  
  Other assets     21,436     19,782  
  Intangible assets   1,139,435     993,743  
        1,248,371     1,109,783  
         
Total assets   $ 2,167,096   $ 1,883,461  
         
Liabilities and Shareholders' Equity      
         
Current liabilities:      
  CSI Facility   $ -   $ -  
  New CNH Facility     74,881     -  
  CNH Facility     -     7,361  
  TSS Membership Liability     45,063     26,435  
  Accounts payable and accrued liabilities     328,304     291,697  
  Dividends payable     20,794     21,051  
  Deferred revenue     556,190     460,975  
  Provisions     9,336     7,955  
  Acquisition holdback payments     34,968     17,056  
  Income taxes payable     55,537     40,634  
        1,125,073     873,164  
         
Non-current liabilities:      
  CNH Facility     -     115,336  
  TSS Membership Liability     79,271     46,502  
  Debentures     238,693     223,870  
  Deferred income taxes     139,657     129,585  
  Acquisition holdback payments     4,965     855  
  Other liabilities     30,588     36,640  
        493,174     552,788  
         
Total liabilities     1,618,247     1,425,952  
         
         
Shareholders' equity:      
  Capital stock     99,283     99,283  
  Accumulated other comprehensive income (loss)     (27,044 )   (36,108 )
  Retained earnings     476,610     394,334  
        548,849     457,509  
         
         
Total liabilities and shareholders' equity   $ 2,167,096   $ 1,883,461  
         

 

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income
(In thousands of U.S. dollars, except per share amounts)
                 
Three and nine months ended September 30, 2017 and 2016
Unaudited                
    Three months ended September 30,     Nine months ended September 30,  
      2017       2016       2017       2016  
                 
                 
Revenue                
License   $ 44,478     $ 35,285     $ 120,482     $ 103,110  
Professional services     125,530       109,872       358,648       317,464  
Hardware and other     43,852       39,515       117,208       109,030  
Maintenance and other recurring     422,599       360,974       1,195,531       1,031,692  
      636,459       545,646       1,791,869       1,561,296  
                 
Expenses                
Staff     312,667       266,142       898,751       781,744  
Hardware     24,208       21,660       63,619       61,725  
Third party license, maintenance and professional services     55,059       51,264       155,601       142,848  
Occupancy     15,584       13,047       43,454       37,590  
Travel     18,546       15,678       52,438       44,999  
Telecommunications     5,716       5,376       16,051       16,198  
Supplies     4,103       2,304       11,583       6,991  
Software and equipment     11,200       9,590       30,556       27,180  
Professional fees     7,921       6,438       21,614       19,932  
Other, net     14,126       8,263       35,112       28,029  
Depreciation     5,768       5,454       16,388       15,436  
Amortization of intangible assets     59,829       42,676       167,852       131,987  
      534,727       447,892       1,513,019       1,314,659  
                 
                 
Foreign exchange loss (gain)     7,567       (1,026 )     10,926       24,778  
TSS membership liability revaluation charge   11,781       7,070       40,311       13,937  
Share in net (income) loss of equity investee   (80 )     (5,410 )     (206 )     (5,717 )
Finance and other expense (income)     (1,291 )     (2,929 )     (1,720 )     (3,201 )
Bargain purchase gain     (5,008 )     -       (5,008 )     -  
Finance costs     8,725       5,332       19,456       16,353  
      21,694       3,037       63,759       46,150  
                 
Income before income taxes     80,038       94,717       215,091       200,487  
                 
Current income tax expense (recovery)     25,975       19,244       80,191       59,915  
Deferred income tax expense (recovery)     (206 )     8,011       (10,952 )     (556 )
Income tax expense (recovery)     25,769       27,255       69,239       59,359  
                 
Net income     54,269       67,462       145,852       141,128  
                 
Earnings per share                
Basic and diluted   $ 2.56     $ 3.18     $ 6.88     $ 6.66  
                 
                 

 

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts)
                 
Three and nine months ended September 30, 2017 and 2016
Unaudited                
    Three months ended September 30,     Nine months ended September 30,  
      2017       2016       2017       2016  
                 
Net income   $ 54,269     $ 67,462     $ 145,852     $ 141,128  
                 
Items that are or may be reclassified subsequently to net income:              
                 
Net change in fair value                
of available-for-sale financial                
asset during the period     -       6,612       (1,314 )     6,946  
                 
Net change in fair value                
of derivatives designated as hedges                
during the period     193       157       538       134  
                 
Amounts reclassified to profit during the period              
related to realized losses (gains) on                
available-for-sale financial assets     -       (2,539 )     1,288       (2,539 )
                 
Foreign currency translation differences from foreign operations   857       1,264       8,704       4,301  
                 
Deferred income tax recovery (expense)     (58 )     (541 )     (152 )     (578 )
                 
Other comprehensive (loss) income for the period, net of income tax   992       4,953       9,064       8,264  
                 
Total comprehensive income (loss) for the period $ 55,261     $ 72,415     $ 154,916     $ 149,392  
                 

 

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of U.S. dollars)
               
               
Unaudited              
Nine months ended September 30, 2017              
  Capital
stock
Accumulated other comprehensive
income/(loss)
Total accumulated
other comprehensive
income/(loss)
Retained
earnings
Total
    Cumulative
translation
account
Amounts
related to
gains/losses
on available-
for-sale
financial
assets
Amounts
related to
gains/(losses)
on derivatives
designed as
hedges
     
               
Balance at January 1, 2017 $    99,283 $    (35,748 ) $    17   $    (377 ) $    (36,108 ) $    394,334   $    457,509  
               
Total comprehensive income for the period:              
               
Net income   -   -     -     -     -     145,852     145,852  
               
Other comprehensive income (loss)              
               
Net change in fair value              
of available-for-sale financial              
asset during the period   -   -     (1,314 )   -     (1,314 )   -     (1,314 )
               
Net change in fair value              
of derivatives designated as hedges              
during the period   -   -     -     538     538     -     538  
               
Amounts reclassified to profit during the period              
related to realized losses (gains) on              
available-for-sale financial assets   -   -     1,288     -     1,288     -     1,288  
               
Foreign currency translation differences from              
foreign operations   -   8,704     -     -     8,704     -     8,704  
               
Deferred tax recovery (expense)   -   -     9     (161 )   (152 )   -     (152 )
               
Total other comprehensive income (loss)              
for the period     -      8,704       (17 )     377       9,064       -        9,064  
               
Total comprehensive income (loss) for the period     -      8,704       (17 )     377       9,064       145,852       154,916  
               
Transactions with owners, recorded directly in equity              
Dividends to shareholders of the Company   -   -     -     -     -     (63,576 )   (63,576 )
               
Balance at September 30, 2017 $    99,283 $    (27,044 ) $    -    $    -    $    (27,044 ) $    476,610   $    548,849  
               

 

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of U.S. dollars)
                 
                 
Unaudited                
Nine months ended September 30, 2016              
                 
    Capital
stock
Accumulated other comprehensive
income/(loss)
Total accumulated
other comprehensive
income/(loss)
Retained
earnings
Total
      Cumulative
translation
account
Amounts
related to
gains/losses
on available-
for-sale
financial
assets
Amounts
related to
gains/(losses)
on derivatives
designed as
hedges
     
                 
Balance at January 1, 2016 $    99,283 $    (33,614 ) $    -    $    (705 ) $    (34,319 ) $    272,318   $    337,282  
                 
Total comprehensive income for the period:              
                 
Net income     -   -     -     -     -     141,128     141,128  
                 
Other comprehensive income (loss)              
                 
Net change in fair value              
of available-for-sale financial              
asset during the period   -   -     6,946     -     6,946     -     6,946  
                 
Net change in fair value              
of derivatives designated as hedges              
during the period   -   -     -     134     134     -     134  
                 
Amounts reclassified to profit during the period              
related to realized losses (gains) on              
available-for-sale financial assets   -     (2,539 )   -     (2,539 )   -     (2,539 )
                 
Foreign currency translation differences from              
foreign operations   -   4,301     -     -     4,301     -     4,301  
                 
Deferred tax recovery (expense)   -   -     (545 )   (33 )   (578 )   -     (578 )
                 
Total other comprehensive income for the period     -      4,301       3,862       101       8,264       -        8,264  
                 
Total comprehensive income for the period     -      4,301       3,862       101       8,264       141,128       149,392  
                 
Transactions with owners, recorded directly in equity              
Dividends to shareholders of the Company   -   -       -     -     (63,576 )   (63,576 )
                 
Balance at September 30, 2016 $    99,283 $    (29,313 ) $    3,862   $    (604 ) $    (26,055 ) $    349,870   $    423,098  
                 

 

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of U.S. dollars)
                     
Three and nine months ended September 30, 2017 and 2016
Unaudited                
        Three months ended September 30,     Nine months ended September 30,  
          2017       2016       2017       2016  
                     
Cash flows from operating activities:                
  Net income   $ 54,269     $ 67,462     $ 145,852     $ 141,128  
  Adjustments for:                
    Depreciation     5,768       5,454       16,388       15,436  
    Amortization of intangible assets     59,829       42,676       167,852       131,987  
    TSS membership liability revaluation charge   11,781       7,070       40,311       13,937  
    Share in net (income) loss of equity investee   (80 )     (5,410 )     (206 )     (5,717 )
    Finance and other income     (1,291 )     (2,929 )     (1,720 )     (3,201 )
    Bargain purchase gain     (5,008 )     -       (5,008 )     -  
    Finance costs     8,725       5,332       19,456       16,353  
    Income tax expense (recovery)     25,769       27,255       69,239       59,359  
    Foreign exchange loss (gain)     7,567       (1,026 )     10,926       24,778  
  Change in non-cash operating working capital              
    exclusive of effects of business combinations   (28,069 )     2,038       (28,421 )     (9,210 )
  Income taxes paid     (16,539 )     (10,094 )     (69,517 )     (27,692 )
  Net cash flows from operating activities   122,721       137,828       365,152       357,158  
                     
Cash flows from (used in) financing activities:              
  Interest paid     (5,572 )     (5,547 )     (16,707 )     (17,395 )
  Increase (decrease) in New CNH Facility, net   74,608       -       74,608       -  
  Repayments of CNH facility     (134,248 )     -       (138,177 )     (4,495 )
  Credit facility transaction costs     (1,942 )     -       (1,942 )     (1,212 )
  Dividends paid     (21,192 )     (21,192 )     (63,576 )     (63,576 )
  Net cash flows from (used in) in financing activities   (88,346 )     (26,739 )     (145,794 )     (86,678 )
                     
Cash flows from (used in) investing activities:              
  Acquisition of businesses, net of cash              
    acquired     (41,863 )     (34,500 )     (156,062 )     (101,198 )
  Post-acquisition settlement payments, net of receipts   (4,723 )     (12,050 )     (21,611 )     (18,283 )
  Purchases of available-for-sale equity securities   -       (13,902 )     -       (26,596 )
  Proceeds from sale of available-for-sale equity securities   -       14,276       2,828       14,276  
  Interest, dividends and other proceeds received   1,152       644       21,607       794  
  Property and equipment purchased     (5,450 )     (3,934 )     (14,382 )     (13,621 )
  Net cash flows from (used in) investing activities   (50,884 )     (49,466 )     (167,620 )     (144,628 )
                     
Effect of foreign currency on                
  cash and cash equivalents     1,331       (143 )     9,349       131  
                     
Increase (decrease) in cash and cash equivalents   (15,178 )     61,480       61,087       125,983  
                     
Cash, beginning of period     429,764       242,974       353,499       178,471  
                     
Cash, end of period   $ 414,586     $ 304,454     $ 414,586     $ 304,454