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Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2020 and Declares Quarterly Dividend

Constellation Software Inc.

TORONTO, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the second quarter ended June 30, 2020 and declared a $1.00 per share dividend payable on October 9, 2020 to all common shareholders of record at close of business on September 18, 2020. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada).   Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.

The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2020 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 30, 2020 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management’s Discussion and Analysis for the year ended December 31, 2019, which can be found on SEDAR at www.sedar.com and on the Company’s website www.csisoftware.com.  Additional information about the Company is also available on SEDAR at www.sedar.com

Our board remain both grateful and impressed by the Constellation employees who continue to re-think, re-invent and re-imagine how they support each other and our customers through the many challenges created by COVID-19.

Q2 2020 Headlines:

  • Revenue grew 9% (negative 8% organic growth, negative 7% after adjusting for changes in foreign exchange rates) to $922 million compared to $846 million in Q2 2019. 

  • Net income increased 12% to $83 million ($3.90 on a diluted per share basis) from $73 million ($3.45 on a diluted per share basis) in Q2 2019.

  • Impairment of intangible and other non-financial assets was $4 million in Q2 2020 versus nil in Q2 2019.

  • A number of acquisitions were completed for aggregate cash consideration of $67 million (which includes acquired cash).  Deferred payments associated with these acquisitions have an estimated value of $17 million resulting in total consideration of $84 million.

  • Cash flows from operations (“CFO”) were $237 million, an increase of 370%, or $186 million, compared to $50 million for the comparable period in 2019.

  • Free cash flow available to shareholders1 (“FCFA2S”) increased $178 million to $190 million compared to $12 million for the same period in 2019.  

  • CFO and FCFA2S were positively impacted by the deferral of approximately $29 million of tax instalment payments to the second half of 2020 in conjunction with the certain government’s COVID-19 relief programs. 

  • The Company determined that certain of its subsidiaries qualified for an estimated aggregate amount of $17 million of grants from various government authorities, and recognized such amounts as a reduction to expenses in the quarter.

  • On May 20, 2020 the Company entered into a binding agreement with IJssel B.V. to purchase 100% of the shares of Topicus.com B.V., a Netherlands-based diversified vertical market software provider.  The transaction is currently expected to close in 2020, subject to the satisfaction of certain closing conditions.

  • Subsequent to June 30, 2020, the Company completed or entered into agreements to acquire a number of businesses for aggregate cash consideration of $64 million (which includes acquired cash).  Deferred payments associated with these acquisitions have an estimated value of $14 million resulting in total consideration of $78 million. 

1. See Non-IFRS measures.  

Total revenue for the quarter ended June 30, 2020 was $922 million, an increase of 9%, or $76 million, compared to $846 million for the comparable period in 2019.  For the first six months of 2020 total revenues were $1,875 million, an increase of 13%, or $210 million, compared to $1,665 million for the comparable period in 2019.  The increase for both the three and six month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of negative 8% and negative 5% respectively, negative 7% and negative 4% respectively after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business.

Net income for the quarter ended June 30, 2020 was $83 million compared to net income of $73 million for the same period in 2019.  On a per share basis, this translated into a net income per diluted share of $3.90 in the quarter ended June 30, 2020 compared to net income per diluted share of $3.45 for the same period in 2019.  For the six months ended June 30, 2020, net income was $166 million or $7.81 per diluted share compared to $160 million or $7.54 per diluted share for the same period in 2019.

For the quarter ended June 30, 2020, CFO increased $186 million to $237 million compared to $50 million for the same period in 2019 representing an increase of 370%.  For the first six months of 2020, CFO increased $263 million to $597 million compared to $334 million during the same period in 2019, representing an increase of 79%. 

For the quarter ended June 30, 2020, FCFA2S increased $178 million to $190 million compared to $12 million for the same period in 2019.  For the first six months of 2020, FCFA2S increased $238 million to $501 million compared to $263 million during the same period in 2019, representing an increase of 91%.   

CFO and FCFA2S for the three and six months ended June 30, 2020 were positively impacted by the deferral of approximately $29 million of tax instalment payments to the second half of 2020 in conjunction with certain government’s COVID-19 relief programs.

The Company is closely monitoring the impact of COVID-19 on all aspects of its business. COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. The COVID-19 pandemic has had disruptive effects in countries in which the Company operates and has adversely impacted many of its business units’ operations to date, including through the cancellation by certain customers of their ongoing software maintenance contracts and the suspension or cancellation of new software purchases.  The pandemic may also have an adverse impact on many of the Company’s customers, including their ability to satisfy ongoing payment obligations to the Company, which could increase the Company’s bad debt exposure. The future impacts of the pandemic and any resulting economic impact are largely unknown and rapidly evolving. It is possible that the COVID-19 pandemic, the measures taken by the governments of countries affected and the resulting economic impact may continue to adversely affect the Company’s results of operations, cash flows and financial position as well as its customers in future periods, and this impact could be material.

Forward Looking Statements

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.  A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements.  These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.  

Non-IFRS Measures

Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, the TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received.  Constellation believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Constellation does not make any acquisitions, or investments, and does not repay any debts.  While Constellation could use the FCFA2S to pay dividends or repurchase shares, Constellation’s objective is to invest all of our FCFA2S in acquisitions which meet Constellation’s hurdle rate.

FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities. 

The following table reconciles FCFA2S to net cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
June 30,

 

 

 

Six months ended
June 30,

 

 

 

 

 

2020

 

2019

 

 

 

 

2020

 

2019

 

 

 

 

 

($ in millions, except percentages)

 

($ in millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities

 

 

237

 

50

 

 

 

 

597

 

334

 

 

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

 

(2

)

(2

)

 

 

 

(4

)

(4

)

 

 

Interest paid on other facilities

 

 

(5

)

(7

)

 

 

 

(14

)

(15

)

 

 

Credit facility transaction costs

 

 

(0

)

-

 

 

 

 

(0

)

-

 

 

 

Payments of lease obligations

 

 

(16

)

(13

)

 

 

 

(30

)

(23

)

 

 

TSS membership liability revaluation charge

 

 

(17

)

(8

)

 

 

 

(35

)

(18

)

 

 

Property and equipment purchased

 

 

(6

)

(8

)

 

 

 

(13

)

(15

)

 

 

Interest and dividends received

 

 

0

 

0

 

 

 

 

0

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow available to shareholders

 

 

190

 

12

 

 

 

 

501

 

263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to rounding, certain totals may not foot.

 

 

 

 

 

 

 

 

 

 

 

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.

For further information:

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

SOURCE: CONSTELLATION SOFTWARE INC.

CONSTELLATION SOFTWARE INC.

 

 

 

Condensed Consolidated Interim Statements of Financial Position

 

 

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

December 31, 2019

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 

 

$

585

 

$

316

 

$

214

 

 

Accounts receivable

 

 

 

 

 

 

393

 

 

422

 

 

368

 

 

Unbilled revenue

 

 

 

 

 

 

103

 

 

110

 

 

105

 

 

Inventories

 

 

 

 

 

 

 

32

 

 

31

 

 

45

 

 

Other assets

 

 

 

 

 

 

207

 

 

184

 

 

183

 

 

 

 

 

 

 

 

 

 

 

1,319

 

 

1,062

 

 

915

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

 

 

 

78

 

 

78

 

 

69

 

 

Right of use assets

 

 

 

 

 

 

241

 

 

234

 

 

211

 

 

Deferred income taxes

 

 

 

 

 

 

45

 

 

45

 

 

48

 

 

Other assets

 

 

 

 

 

 

73

 

 

72

 

 

66

 

 

Intangible assets

 

2,011

 

 

1,997

 

 

1,621

 

 

 

 

 

 

 

 

 

 

 

2,448

 

 

2,425

 

 

2,014

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

$

3,767

 

$

3,488

 

$

2,929

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

CSI facility

 

 

 

 

 

 

$

98

 

$

63

 

$

-

 

 

Debt without recourse to Constellation Software Inc.

 

 

 

3

 

 

57

 

 

11

 

 

TSS membership liability

 

 

 

 

 

93

 

 

86

 

 

69

 

 

Accounts payable and accrued liabilities

 

 

 

 

480

 

 

529

 

 

400

 

 

Dividends payable

 

 

 

 

 

 

21

 

 

21

 

 

22

 

 

Deferred revenue

 

 

 

 

 

 

938

 

 

788

 

 

802

 

 

Provisions

 

 

 

 

 

 

 

10

 

 

13

 

 

17

 

 

Acquisition holdback payables

 

 

 

 

 

72

 

 

76

 

 

53

 

 

Lease obligations

 

 

 

 

 

 

67

 

 

62

 

 

54

 

 

Income taxes payable

 

 

 

 

 

 

95

 

 

36

 

 

25

 

 

 

 

 

 

 

 

 

 

 

1,879

 

 

1,732

 

 

1,452

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

Debt without recourse to Constellation Software Inc.

 

 

 

159

 

 

153

 

 

106

 

 

TSS membership liability

 

 

 

 

 

164

 

 

136

 

 

121

 

 

Debentures

 

 

 

 

 

 

 

210

 

 

222

 

 

222

 

 

Deferred income taxes

 

 

 

 

 

 

243

 

 

246

 

 

202

 

 

Acquisition holdback payables

 

 

 

 

 

29

 

 

25

 

 

15

 

 

Lease obligations

 

 

 

 

 

 

193

 

 

187

 

 

170

 

 

Other liabilities

 

 

 

 

 

 

98

 

 

101

 

 

76

 

 

 

 

 

 

 

 

 

 

 

1,095

 

 

1,069

 

 

913

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

 

 

2,974

 

 

2,800

 

 

2,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Capital stock

 

 

 

 

 

 

99

 

 

99

 

 

99

 

 

Accumulated other comprehensive income (loss)

 

 

 

(57)

 

 

(40)

 

 

(32)

 

 

Retained earnings

 

 

 

 

 

 

752

 

 

628

 

 

497

 

 

 

 

 

 

 

 

 

 

 

794

 

 

687

 

 

564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

 

 

 

$

3,767

 

$

3,488

 

$

2,929

 

 

 

 

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Income

 

 

 

 

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three and six months ended June 30, 2020 and 2019

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

 

 

 

$

51

 

 

$

61

 

 

$

108

 

 

$

113

 

Professional services

 

 

 

 

170

 

 

 

164

 

 

 

347

 

 

 

322

 

Hardware and other

 

 

 

 

35

 

 

 

41

 

 

 

77

 

 

 

77

 

Maintenance and other recurring

 

 

 

666

 

 

 

581

 

 

 

1,342

 

 

 

1,152

 

 

 

 

 

 

 

 

 

922

 

 

 

846

 

 

 

1,875

 

 

 

1,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Staff

 

 

 

 

 

 

 

480

 

 

 

437

 

 

 

990

 

 

 

882

 

Hardware

 

 

 

 

 

 

 

22

 

 

 

22

 

 

 

45

 

 

 

43

 

Third party license, maintenance and professional services

 

 

 

 

 

 

 

77

 

 

 

73

 

 

 

156

 

 

 

142

 

Occupancy

 

 

 

 

 

 

 

8

 

 

 

9

 

 

 

17

 

 

 

17

 

Travel, telecommunications, supplies, software and equipment

 

31

 

 

 

49

 

 

 

82

 

 

 

93

 

Professional fees

 

 

 

 

 

 

 

13

 

 

 

11

 

 

 

26

 

 

 

22

 

Other, net

 

 

 

 

 

 

 

0

 

 

 

15

 

 

 

5

 

 

 

36

 

Depreciation

 

 

 

 

 

 

 

25

 

 

 

21

 

 

 

51

 

 

 

42

 

Amortization of intangible assets

 

 

 

 

 

 

 

96

 

 

 

75

 

 

 

190

 

 

 

151

 

 

 

 

 

 

 

 

 

752

 

 

 

713

 

 

 

1,562

 

 

 

1,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange loss (gain)

 

 

 

10

 

 

 

13

 

 

 

4

 

 

 

15

 

TSS membership liability revaluation charge

 

 

17

 

 

 

8

 

 

 

35

 

 

 

18

 

Finance and other expense (income)

 

 

 

(1

)

 

 

(0

)

 

 

(2

)

 

 

(3

)

Bargain purchase gain

 

 

 

 

(0

)

 

 

-

 

 

 

(0

)

 

 

(28

)

Impairment of intangible and other non-financial assets

 

4

 

 

 

-

 

 

 

8

 

 

 

-

 

Finance costs

 

 

 

 

 

10

 

 

 

9

 

 

 

22

 

 

 

18

 

 

 

 

 

 

 

 

 

39

 

 

 

30

 

 

 

67

 

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

 

131

 

 

 

103

 

 

 

246

 

 

 

218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (recovery)

 

 

 

70

 

 

 

42

 

 

 

115

 

 

 

78

 

Deferred income tax expense (recovery)

 

 

 

 

 

 

 

(22

)

 

 

(12

)

 

 

(34

)

 

 

(20

)

Income tax expense (recovery)

 

 

 

 

 

 

 

48

 

 

 

30

 

 

 

80

 

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

83

 

 

 

73

 

 

 

166

 

 

 

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

$

3.90

 

 

$

3.45

 

 

$

7.81

 

 

$

7.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

 

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Comprehensive Income

 

 

 

 

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three and six months ended June 30, 2020 and 2019

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

$

83

 

$

73

 

$

166

 

 

$

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that are or may be reclassified subsequently to net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from foreign operations

 

13

 

 

8

 

 

(17

)

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax recovery (expense)

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income for the period, net of income tax

 

13

 

 

8

 

 

(17

)

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

$

96

 

$

81

 

$

149

 

 

$

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

 

 

 

Condensed Consolidated Interim Statements of Changes in Equity

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

Six months ended June 30, 2020

 

 

 

 

 

 

 

Capital
stock

Accumulated other
comprehensive income (loss)

Retained earnings

Total

 

 

 

 

Cumulative translation account

 

 

 

 

 

 

 

 

 

Balance at January 1, 2020

$

  99

$

  (40

)

$

  628

 

$

  687

 

 

 

 

 

 

 

 

Total comprehensive income for the period:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

-

 

-

 

 

166

 

 

166

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

foreign operations

 

-

 

(17

)

 

-

 

 

(17

)

 

 

 

 

 

 

 

Total other comprehensive income (loss)

 

 

 

 

 

for the period

 

  - 

 

  (17

)

 

  - 

 

 

  (17

)

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

 

  - 

 

  (17

)

 

  166

 

 

  149

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

Dividends to shareholders of the Company

 

-

 

-

 

 

(42

)

 

(42

)

 

 

 

 

 

 

 

Balance at June 30, 2020

$

  99

$

  (57

)

$

  752

 

$

  794

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

 

 

 

Condensed Consolidated Interim Statements of Changes in Equity

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

Six months ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital
stock

Accumulated other
comprehensive income (loss)

Retained earnings

Total

 

 

 

 

Cumulative translation account

 

 

 

 

 

 

 

 

 

Balance at January 1, 2019

$

  99

$

   (37

)

$

  804

 

$

  866

 

 

 

 

 

 

 

 

Total comprehensive income for the period:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

  - 

 

  - 

 

 

  160

 

 

  160

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

foreign operations

 

  - 

 

  4

 

 

  - 

 

 

  4

 

 

 

 

 

 

 

 

Total other comprehensive income (loss) for the period

 

  - 

 

  4

 

 

  - 

 

 

  4

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

  - 

 

  4

 

 

  160

 

 

  164

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

  Dividends to shareholders of the Company

 

  - 

 

  - 

 

 

  (466

)

 

  (466

)

 

 

 

 

 

 

 

Balance at June 30, 2019

$

  99

$

  (32

)

$

  497

 

$

  564

 

 

 

 

 

 

 

 


 


CONSTELLATION SOFTWARE INC.

 

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Cash Flows

 

 

 

 

 

 

 

(In millions of U.S. dollars, except per share amounts.  Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three and six months ended June 30, 2020 and 2019

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

 

 

$

83

 

 

$

73

 

 

$

166

 

 

$

160

 

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

25

 

 

 

21

 

 

 

51

 

 

 

42

 

 

 

Amortization of intangible assets

 

96

 

 

 

75

 

 

 

190

 

 

 

151

 

 

 

TSS membership liability revaluation charge

 

17

 

 

 

8

 

 

 

35

 

 

 

18

 

 

 

Finance and other expense (income)

 

(1

)

 

 

(0

)

 

 

(2

)

 

 

(3

)

 

 

Bargain purchase (gain)

 

(0

)

 

 

-

 

 

 

(0

)

 

 

(28

)

 

 

Impairment of intangible and other non-financial assets

 

4

 

 

 

-

 

 

 

8

 

 

 

-

 

 

 

Finance costs

 

 

 

10

 

 

 

9

 

 

 

22

 

 

 

18

 

 

 

Income tax expense (recovery)

 

48

 

 

 

30

 

 

 

80

 

 

 

58

 

 

 

Foreign exchange loss (gain)

 

10

 

 

 

13

 

 

 

4

 

 

 

15

 

 

Change in non-cash operating assets and liabilities

 

 

 

 

 

 

 

 

 

exclusive of effects of business combinations

 

(35

)

 

 

(130

)

 

 

100

 

 

 

(7

)

 

Income taxes paid

 

(19

)

 

 

(49

)

 

 

(57

)

 

 

(88

)

 

Net cash flows from operating activities

 

237

 

 

 

50

 

 

 

597

 

 

 

334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) financing activities:

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

 

(2

)

 

 

(2

)

 

 

(4

)

 

 

(4

)

 

Interest paid on other facilities

 

 

(5

)

 

 

(7

)

 

 

(14

)

 

 

(15

)

 

Increase (decrease) in CSI facility

 

 

100

 

 

 

-

 

 

 

35

 

 

 

-

 

 

Increase (decrease) in revolving credit under debt facilities without recourse to CSI

 

-

 

 

 

11

 

 

 

(55

)

 

 

(40

)

 

Proceeds from issuance of term debt under facilities without recourse to CSI

 

15

 

 

 

-

 

 

 

15

 

 

 

-

 

 

Repayments of term debt under facilities without recourse to CSI

 

(3

)

 

 

(1

)

 

 

(4

)

 

 

(1

)

 

Credit facility transaction costs

 

(0

)

 

 

-

 

 

 

(0

)

 

 

-

 

 

Payments of lease obligations

 

 

(16

)

 

 

(13

)

 

 

(30

)

 

 

(23

)

 

Distribution to TSS minority owners

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11

)

 

Dividends paid

 

(21

)

 

 

(445

)

 

 

(42

)

 

 

(466

)

 

Net cash flows from (used in) in financing activities

 

67

 

 

 

(457

)

 

 

(100

)

 

 

(560

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) investing activities:

 

 

 

 

 

 

 

 

Acquisition of businesses

 

(68

)

 

 

(82

)

 

 

(175

)

 

 

(130

)

 

Cash obtained with acquired businesses

 

 

10

 

 

 

10

 

 

 

24

 

 

 

35

 

 

Post-acquisition settlement payments, net of receipts

 

(23

)

 

 

(12

)

 

 

(55

)

 

 

(37

)

 

Purchases of other investments

 

 

(1

)

 

 

(6

)

 

 

(2

)

 

 

(6

)

 

Interest, dividends and other proceeds received

 

1

 

 

 

1

 

 

 

1

 

 

 

3

 

 

Property and equipment purchased

 

(6

)

 

 

(8

)

 

 

(13

)

 

 

(15

)

 

Net cash flows from (used in) investing activities

 

(87

)

 

 

(97

)

 

 

(220

)

 

 

(149

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign currency on

 

 

 

 

 

 

 

 

cash and cash equivalents

 

5

 

 

 

1

 

 

 

(9

)

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash

 

221

 

 

 

(503

)

 

 

269

 

 

 

(375

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

364

 

 

 

717

 

 

 

316

 

 

 

589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, end of period

$

585

 

 

$

214

 

 

 

585

 

 

 

214