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Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2022 and Declares Quarterly Dividend

Constellation Software Inc.
Constellation Software Inc.

TORONTO, Nov. 04, 2022 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2022 and declared a $1.00 per share dividend payable on January 11, 2023 to all common shareholders of record at close of business on December 20, 2022. 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, 2022 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2022 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, 2021, 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 2022 Headlines:

  • Revenue grew 33% (negative 3% organic growth, 2% after adjusting for changes in foreign exchange rates) to $1,725 million compared to $1,299 million in Q3 2021.

  • Net income attributable to common shareholders increased 28% to $136 million ($6.42 on a diluted per share basis) from $107 million ($5.04 on a diluted per share basis) in Q3 2021.

  • A number of acquisitions were completed for aggregate cash consideration of $207 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $61 million resulting in total consideration of $268 million.

  • Cash flows from operations (“CFO”) were $321 million, an increase of 10%, or $29 million, compared to $292 million for the comparable period in 2021.

  • Free cash flow available to shareholders1 (“FCFA2S”) increased $3 million to $229 million compared to $226 million for the same period in 2021.

Total revenue for the quarter ended September 30, 2022 was $1,725 million, an increase of 33%, or $426 million, compared to $1,299 million for the comparable period in 2021. For the first nine months of 2022 total revenues were $4,774 million, an increase of 28%, or $1,051 million, compared to $3,724 million for the comparable period in 2021. 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 negative 3% and negative 2% respectively, positive 2% 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. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income attributable to common shareholders of CSI for the quarter ended September 30, 2022 was $136 million compared to $107 million for the same period in 2021. On a per share basis this translated into a net income per diluted share of $6.42 in the quarter ended September 30, 2022 compared to net income per diluted share of $5.04 for the same period in 2021. For the nine months ended September 30, 2022, net income attributable to common shareholders of CSI was $360 million or $16.99 per diluted share compared to $186 million or $8.79 per diluted share for the same period in 2021. There was no change in the number of shares outstanding.

For the quarter ended September 30, 2022, CFO increased $29 million to $321 million compared to $292 million for the same period in 2021 representing an increase of 10%. For the nine months ended September 30, 2022, CFO decreased $61 million to $897 million compared to $959 million for the same period in 2021 representing a decrease of 6%. The primary reasons for the decline in CFO for the nine months ended September 30, 2022 is that CFO includes the impact of changes in non-cash operating assets and liabilities exclusive of effects of business combinations or, changes in non-cash operating working capital (“NCOWC”), and income taxes paid. For the nine months ended September 30, 2022 there was $27 million of cash used in NCOWC compared to $53 million of cash generated from NCOWC for the same period in 2021. Cash used in NCOWC associated with the Company’s recently acquired Altera business unit was $32 million for the nine months ended September 30, 2022. There are many reasons contributing to the NCOWC impact variance for the Company, including Altera, none of which are indicative of an underlying concern with the overall NCOWC balance. Specifically, there are no concerns with accounts receivable or unbilled revenue aging. Income taxes paid increased 87% or $41 million for the quarter ended September 30, 2022 and 42% or $83 million for the nine months ended September 30, 2022 over the same periods in 2021. Approximate $50 million and $100 million cash tax payments were made in the three and nine month periods ending September 30, 2022 respectively relating to the deferral of R&E expenses associated with the Tax Cuts and Jobs Act.

For the quarter ended September 30, 2022, FCFA2S increased $3 million to $229 million compared to $226 million for the same period in 2021 representing an increase of 1%. For the nine months ended September 30, 2022, FCFA2S decreased $76 million to $563 million compared to $639 million for the same period in 2021 representing a decrease of 12%. The items negatively impacting CFO summarized above are the same items negatively impacting FCFA2S. On February 1, 2022, the Topicus Preferred Shares and Topicus Coop Preference Units were converted to Topicus Subordinate Voting Shares and Topicus Coop Ordinary Units respectively. As a result of this conversion the non-controlling interest in Topicus.com Inc. decreased from approximately 70% to 39%.

1. See Non-IFRS measures.

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 IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our 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 September 30,

 

 

 

Nine months ended September 30,

 

 

 

 

2022

2021

 

 

 

2022

2021

 

 

 

($ in millions)

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities

 

 

321

 

292

 

 

 

 

897

 

959

 

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

 

(3

)

(2

)

 

 

 

(8

)

(7

)

 

Interest paid on other facilities

 

 

(23

)

(12

)

 

 

 

(49

)

(30

)

 

Credit facility transaction costs

 

 

(0

)

(0

)

 

 

 

(3

)

(4

)

 

Payments of lease obligations

 

 

(24

)

(21

)

 

 

 

(69

)

(61

)

 

IRGA / TSS membership liability revaluation charge

 

 

(33

)

(25

)

 

 

 

(89

)

(107

)

 

Property and equipment purchased

 

 

(8

)

(7

)

 

 

 

(27

)

(18

)

 

Interest and dividends received

 

 

0

 

1

 

 

 

 

0

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

230

 

226

 

 

 

 

652

 

732

 

 

Less amount attributable to

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

(1

)

1

 

 

 

 

(89

)

(93

)

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow available to shareholders

 

 

229

 

226

 

 

 

 

563

 

639

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

September 30, 2022

 

December 31, 2021

 

September 30, 2021

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

665

 

$

763

 

$

961

 

 

Accounts receivable

 

 

744

 

 

600

 

 

512

 

 

Unbilled revenue

 

 

219

 

 

140

 

 

144

 

 

Inventories

 

 

46

 

 

35

 

 

32

 

 

Other assets

 

 

473

 

 

296

 

 

278

 

 

 

 

 

2,146

 

 

1,835

 

 

1,929

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Property and equipment

 

 

121

 

 

93

 

 

91

 

 

Right of use assets

 

 

274

 

 

245

 

 

252

 

 

Deferred income taxes

 

 

155

 

 

66

 

 

63

 

 

Other assets

 

 

160

 

 

99

 

 

94

 

 

Intangible assets

 

4,469

 

 

3,428

 

 

3,006

 

 

 

 

 

5,179

 

 

3,931

 

 

3,506

 

 

 

 

 

 

 

Total assets

 

$

7,325

 

$

5,766

 

$

5,434

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Debt with recourse to Constellation Software Inc.

 

$

364

 

$

143

 

$

137

 

 

Debt without recourse to Constellation Software Inc.

 

 

234

 

 

60

 

 

54

 

 

Redeemable preferred securities

 

 

-

 

 

7

 

 

7

 

 

Accounts payable and accrued liabilities

 

 

917

 

 

832

 

 

720

 

 

Dividends payable

 

 

21

 

 

22

 

 

21

 

 

Deferred revenue

 

 

1,545

 

 

1,158

 

 

1,168

 

 

Provisions

 

 

9

 

 

11

 

 

11

 

 

Acquisition holdback payables

 

 

148

 

 

94

 

 

92

 

 

Lease obligations

 

 

89

 

 

79

 

 

81

 

 

Income taxes payable

 

 

99

 

 

56

 

 

86

 

 

 

 

 

3,425

 

 

2,461

 

 

2,377

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Debt with recourse to Constellation Software Inc.

 

 

522

 

 

561

 

 

550

 

 

Debt without recourse to Constellation Software Inc.

 

 

705

 

 

354

 

 

325

 

 

Deferred income taxes

 

 

465

 

 

436

 

 

393

 

 

Acquisition holdback payables

 

 

62

 

 

68

 

 

49

 

 

Lease obligations

 

 

206

 

 

190

 

 

195

 

 

Other liabilities

 

 

239

 

 

175

 

 

145

 

 

 

 

 

2,200

 

 

1,784

 

 

1,656

 

 

 

 

 

 

 

Total liabilities

 

 

5,625

 

 

4,245

 

 

4,034

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

Capital stock

 

 

99

 

 

99

 

 

99

 

 

Other equity

 

 

-

 

 

(179

)

 

(162

)

 

Accumulated other comprehensive income (loss)

 

 

(227

)

 

(66

)

 

(69

)

 

Retained earnings

 

 

1,632

 

 

1,206

 

 

1,103

 

 

Non-controlling interests

 

 

196

 

 

460

 

 

429

 

 

 

 

 

1,700

 

 

1,521

 

 

1,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

7,325

 

$

5,766

 

$

5,434

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statements of Income (loss)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

License

 

$

79

 

 

$

69

 

 

$

220

 

 

$

206

 

Professional services

 

 

375

 

 

 

256

 

 

 

985

 

 

 

747

 

Hardware and other

 

 

54

 

 

 

45

 

 

 

151

 

 

 

127

 

Maintenance and other recurring

 

 

1,217

 

 

 

929

 

 

 

3,418

 

 

 

2,643

 

 

 

 

1,725

 

 

 

1,299

 

 

 

4,774

 

 

 

3,724

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Staff

 

 

925

 

 

 

676

 

 

 

2,581

 

 

 

1,982

 

Hardware

 

 

31

 

 

 

25

 

 

 

88

 

 

 

71

 

Third party license, maintenance and professional services

 

167

 

 

 

113

 

 

 

443

 

 

 

317

 

Occupancy

 

 

12

 

 

 

10

 

 

 

35

 

 

 

30

 

Travel, telecommunications, supplies, software and equipment

 

80

 

 

 

46

 

 

 

215

 

 

 

129

 

Professional fees

 

 

26

 

 

 

21

 

 

 

78

 

 

 

53

 

Other, net

 

 

64

 

 

 

21

 

 

 

132

 

 

 

41

 

Depreciation

 

 

38

 

 

 

31

 

 

 

105

 

 

 

90

 

Amortization of intangible assets

 

 

177

 

 

 

134

 

 

 

491

 

 

 

376

 

 

 

 

1,521

 

 

 

1,077

 

 

 

4,167

 

 

 

3,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange loss (gain)

 

 

(57

)

 

 

(5

)

 

 

(98

)

 

 

(3

)

IRGA/TSS Membership liability revaluation charge

 

33

 

 

 

25

 

 

 

89

 

 

 

107

 

Finance and other expense (income)

 

 

8

 

 

 

(4

)

 

 

24

 

 

 

(9

)

Bargain purchase gain

 

 

(3

)

 

 

(1

)

 

 

(4

)

 

 

(1

)

Impairment of intangible and other non-financial assets

 

-

 

 

 

1

 

 

 

1

 

 

 

7

 

Redeemable preferred securities expense (income)

 

-

 

 

 

-

 

 

 

-

 

 

 

295

 

Finance costs

 

 

29

 

 

 

18

 

 

 

73

 

 

 

50

 

 

 

 

11

 

 

 

34

 

 

 

86

 

 

 

446

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

193

 

 

 

188

 

 

 

521

 

 

 

190

 

 

 

 

 

 

 

 

 

 

Current income tax expense (recovery)

 

 

113

 

 

 

70

 

 

 

322

 

 

 

209

 

Deferred income tax expense (recovery)

 

 

(63

)

 

 

(4

)

 

 

(189

)

 

 

(43

)

Income tax expense (recovery)

 

 

50

 

 

 

67

 

 

 

133

 

 

 

166

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

143

 

 

 

121

 

 

 

388

 

 

 

24

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to:

 

 

 

 

 

 

 

 

Common shareholders of Constellation Software Inc.

 

136

 

 

 

107

 

 

 

360

 

 

 

186

 

Non-controlling interests

 

 

7

 

 

 

15

 

 

 

28

 

 

 

(162

)

Net income (loss)

 

 

143

 

 

 

121

 

 

 

388

 

 

 

24

 

 

 

 

 

 

 

 

 

 

Earnings per common share of Constellation Software Inc.

 

 

 

 

 

 

 

Basic and diluted

 

$

6.42

 

 

$

5.04

 

 

$

16.99

 

 

$

8.79

 

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statements of Comprehensive Income (loss)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

143

 

 

$

121

 

 

$

388

 

 

$

24

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from foreign operations and other, net of tax

 

(93

)

 

 

(21

)

 

 

(184

)

 

 

(39

)

 

 

 

 

 

 

 

 

 

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

 

(93

)

 

 

(21

)

 

 

(184

)

 

 

(39

)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

$

50

 

 

$

100

 

 

$

204

 

 

$

(15

)

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

Common shareholders of Constellation Software Inc.

 

 

(80

)

 

 

(13

)

 

 

(156

)

 

 

(19

)

Non-controlling interests

 

 

(13

)

 

 

(8

)

 

 

(27

)

 

 

(19

)

Total other comprehensive income (loss)

 

$

(93

)

 

$

(21

)

 

$

(184

)

 

$

(39

)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

Common shareholders of Constellation Software Inc.

 

 

56

 

 

 

93

 

 

 

204

 

 

 

167

 

Non-controlling interests

 

 

(6

)

 

 

7

 

 

 

1

 

 

 

(182

)

Total comprehensive income (loss)

 

$

50

 

 

$

100

 

 

$

204

 

 

$

(15

)

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statement of Changes in Equity

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

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Equity Attributable to Common Shareholders of CSI

 

 

 

 

Capital stock

 

Other equity

Accumulated other comprehensive income (loss)

Retained earnings

 

Total

 

Non-controlling interests

 

Total equity

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2022

$

99

 

$

(179

)

$

(66

)

$

1,206

 

$

1,061

 

 

460

 

$

1,521

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

 

-

 

 

-

 

 

360

 

 

360

 

 

28

 

 

388

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

 

 

 

foreign operations and other, net of tax

 

-

 

 

-

 

 

(156

)

 

-

 

 

(156

)

 

(27

)

 

(184

)

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

 

 

 

 

 

 

 

 

for the period

 

-

 

 

-

 

 

(156

)

 

-

 

 

(156

)

 

(27

)

 

(184

)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

 

-

 

 

-

 

 

(156

)

 

360

 

 

204

 

 

1

 

 

204

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of redeemable preferred securities to subordinate voting shares of Topicus.com Inc. and ordinary units of Topicus Coop and other related movements

 

-

 

 

305

 

 

(5

)

 

-

 

 

301

 

 

(301

)

 

-

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests arising from business combinations

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

41

 

 

41

 

 

 

 

 

 

 

 

 

 

 

Other movements in non-controlling interests

 

-

 

 

-

 

 

-

 

 

2

 

 

2

 

 

(5

)

 

(2

)

 

 

 

 

 

 

 

 

 

 

Dividends to shareholders of the Company

 

-

 

 

-

 

 

-

 

 

(64

)

 

(64

)

 

-

 

 

(64

)

 

 

 

 

 

 

 

 

 

 

Reclassification of other equity to retained earnings

 

-

 

 

(127

)

 

-

 

 

127

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

$

99

 

$

-

 

$

(227

)

$

1,632

 

$

1,504

 

$

196

 

$

1,700

 

 

 

 

 

 

 

 

 

 


CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statement of Changes in Equity

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

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Attributable to Common Shareholders of CSI

 

 

 

 

Capital stock

 

Other equity

Accumulated other comprehensive income (loss)

Retained earnings

 

Total

 

Non-controlling interests

 

Total equity

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2021

$

99

 

$

-

 

$

(31

)

$

980

 

$

1,048

 

$

-

 

$

1,048

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

 

-

 

 

-

 

 

186

 

 

186

 

 

(162

)

 

24

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

 

 

 

foreign operations and other, net of tax

 

-

 

 

-

 

 

(19

)

 

-

 

 

(19

)

 

(19

)

 

(39

)

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss) for the period

 

-

 

 

-

 

 

(19

)

 

-

 

 

(19

)

 

(19

)

 

(39

)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

 

-

 

 

-

 

 

(19

)

 

186

 

 

167

 

 

(182

)

 

(15

)

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special dividend of Topicus Subordinated Voting Shares

 

-

 

 

(141

)

 

(16

)

 

-

 

 

(157

)

 

157

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Issuance of Topicus Coop Ordinary Units to non-controlling interests

 

-

 

 

(21

)

 

(2

)

 

-

 

 

(23

)

 

23

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Net acquisition of non-controlling interest associated with acquisitions and other movements

 

-

 

 

1

 

 

-

 

 

1

 

 

1

 

 

1

 

 

3

 

 

 

 

 

 

 

 

 

 

 

Dividends to shareholders of the Company

 

-

 

 

-

 

 

-

 

 

(64

)

 

(64

)

 

-

 

 

(64

)

 

 

 

 

 

 

 

 

 

 

Reclassification of Redeemable preferred securities of Topicus Coop from liabilities to non-controlling interest

 

-

 

 

-

 

 

-

 

 

 

-

 

 

434

 

 

434

 

 

 

 

 

 

 

 

 

 

 

Accrued dividends to preference unit holders of Topicus Coop

 

-

 

 

-

 

 

-

 

 

 

-

 

 

(5

)

 

(5

)

 

 

 

 

 

 

 

 

 

Balance at September 30, 2021

$

99

 

$

(162

)

$

(69

)

$

1,103

 

$

972

 

$

429

 

$

1,401

 

 

 

 

 

 

 

 

 

 


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.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

143

 

 

$

121

 

 

$

388

 

 

$

24

 

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

38

 

 

 

31

 

 

 

105

 

 

 

90

 

 

 

Amortization of intangible assets

 

177

 

 

 

134

 

 

 

491

 

 

 

376

 

 

 

IRGA/TSS Membership liability revaluation charge

 

33

 

 

 

25

 

 

 

89

 

 

 

107

 

 

 

Finance and other expense (income)

 

8

 

 

 

(4

)

 

 

24

 

 

 

(9

)

 

 

Bargain purchase (gain)

 

(3

)

 

 

(1

)

 

 

(4

)

 

 

(1

)

 

 

Impairment of intangible and other non-financial assets

 

 

-

 

 

 

1

 

 

 

1

 

 

 

7

 

 

 

Redeemable preferred securities expense (income)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

295

 

 

 

Finance costs

 

 

29

 

 

 

18

 

 

 

73

 

 

 

50

 

 

 

Income tax expense (recovery)

 

50

 

 

 

67

 

 

 

133

 

 

 

166

 

 

 

Foreign exchange loss (gain)

 

(57

)

 

 

(5

)

 

 

(98

)

 

 

(3

)

 

Change in non-cash operating assets and liabilities

 

 

 

 

 

 

 

 

 

exclusive of effects of business combinations

 

(8

)

 

 

(47

)

 

 

(27

)

 

 

53

 

 

Income taxes paid

 

(89

)

 

 

(48

)

 

 

(279

)

 

 

(196

)

 

Net cash flows from (used in) operating activities

 

321

 

 

 

292

 

 

 

897

 

 

 

959

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) financing activities:

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

 

(3

)

 

 

(2

)

 

 

(8

)

 

 

(7

)

 

Interest paid on debt

 

 

(23

)

 

 

(12

)

 

 

(49

)

 

 

(30

)

 

Increase (decrease) in CSI facility

 

 

(32

)

 

 

-

 

 

 

205

 

 

 

-

 

 

Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI

 

7

 

 

 

12

 

 

 

112

 

 

 

24

 

 

Proceeds from issuance of debt facilities without recourse to CSI

 

22

 

 

 

6

 

 

 

447

 

 

 

140

 

 

Repayments of debt facilities without recourse to CSI

 

(17

)

 

 

(2

)

 

 

(30

)

 

 

(4

)

 

Other financing activities

 

3

 

 

 

-

 

 

 

4

 

 

 

-

 

 

Credit facility transaction costs

 

(0

)

 

 

(0

)

 

 

(3

)

 

 

(4

)

 

Payments of lease obligations

 

 

(24

)

 

 

(21

)

 

 

(69

)

 

 

(61

)

 

Distribution to the Joday Group

 

 

-

 

 

 

-

 

 

 

(23

)

 

 

(22

)

 

Dividends paid to redeemable preferred security holders

 

 

-

 

 

 

-

 

 

 

(7

)

 

 

-

 

 

Dividends paid to common shareholders of the Company

 

(21

)

 

 

(21

)

 

 

(64

)

 

 

(64

)

 

Net cash flows from (used in) in financing activities

 

(89

)

 

 

(41

)

 

 

516

 

 

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) investing activities:

 

 

 

 

 

 

 

 

Acquisition of businesses

 

(207

)

 

 

(130

)

 

 

(1,421

)

 

 

(736

)

 

Cash obtained with acquired businesses

 

 

42

 

 

 

28

 

 

 

190

 

 

 

112

 

 

Post-acquisition settlement payments, net of receipts

 

(39

)

 

 

(16

)

 

 

(98

)

 

 

(101

)

 

Receipt of additional subscription amount from the sellers of Topicus.com B.V.

 

 

-

 

 

 

-

 

 

 

-

 

 

 

33

 

 

Purchases of other investments

 

 

(0

)

 

 

(14

)

 

 

(96

)

 

 

(15

)

 

Proceeds from sales of other investments

 

 

-

 

 

 

8

 

 

 

3

 

 

 

8

 

 

Interest, dividends and other proceeds received

 

1

 

 

 

1

 

 

 

4

 

 

 

4

 

 

Property and equipment purchased

 

(8

)

 

 

(7

)

 

 

(27

)

 

 

(18

)

 

Net cash flows from (used in) investing activities

 

(211

)

 

 

(131

)

 

 

(1,445

)

 

 

(713

)

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign currency on

 

 

 

 

 

 

 

 

cash and cash equivalents

 

(32

)

 

 

(10

)

 

 

(67

)

 

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash

 

(11

)

 

 

110

 

 

 

(99

)

 

 

203

 

 

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

$

676

 

 

$

851

 

 

$

763

 

 

$

758

 

 

 

 

 

 

 

 

 

 

 

 

Cash, end of period

$

665

 

 

$

961

 

 

$

665

 

 

$

961