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Constellation Software Inc. and Topicus.Com Inc. Announce Results for Topicus.com Inc. for the Second Quarter Ended June 30, 2022

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Topicus.com Inc.
Topicus.com Inc.

TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. (“Topicus” or the “Company”) for the second quarter ended June 30, 2022. Please note that all amounts referred to in this press release are in Euros 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, 2022 and the accompanying notes, our Management’s Discussion and Analysis for the three and six months ended June 30, 2022 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2021, which we prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s 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 Topicus.com Inc.’s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR at www.sedar.com.

Q2 2022 Headlines:

  • Revenue increased 24% (6% organic growth) to €220.6 million compared to €178.2 million in Q2 2021.

  • Net income decreased to €20.1 million (€0.16 on a diluted per share basis) from €168.8 million (€2.97 on a basic per share basis and €0.11 on a diluted per share basis) primarily due to the €154.6 million redeemable preferred securities gain in Q2 2021.

  • Acquisitions were completed for aggregate cash consideration of €94.5 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €28.3 million resulting in total consideration of €122.8 million.

  • Cash flows from operations (“CFO”) increased €2.6 million to negative €32.0 million compared to negative €34.6 million in Q2 2021 representing an increase of 8%.

  • Free cash flow available to shareholders1 (“FCFA2S”) decreased €1.4 million to negative €26.8 million compared to €25.4 million in Q2 2021 representing a decrease of 5%.

  • Subsequent to June 30, 2022, the Company completed or entered into agreements to acquire a number of businesses for aggregate cash consideration of €29.5 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €0.9 million resulting in total consideration of €30.4 million.

Total revenue for the quarter ended June 30, 2022 was €220.6 million, an increase of 24%, or €42.4 million, compared to €178.2 million for the comparable period in 2021. For the first six months of 2022 total revenues were €424.4 million, an increase of 19%, or €66.5 million, compared to €357.8 million for the comparable period in 2021. 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 6% and 4%. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income for the quarter ended June 30, 2022 declined €148.7 million to €20.1 million compared to €168.8 million for the same period in 2021. The decline primarily resulted from the €154.6 million redeemable preferred securities income, €163.6 million of which is non-cash related that was recorded in Q2 2021 with no similar expense in 2022. On a per share basis, this translated into net income per basic and diluted share of €0.16 in the quarter ended June 30, 2022 compared to net income per basic share of €2.97 and diluted share of €0.11 for the same period in 2021. For the six months ended June 30, 2022, net income was €40.5 million or €0.30 per basic and diluted share compared to a net loss of €2,267.4 million or €40.54 per basic and diluted share for the same period in 2021. The net loss per basic and diluted share for the six months ended June 30, 2021 primarily resulted from the €2,456.8 million redeemable preferred securities expense, €2,442.1 million of which is non-cash related. Diluted shares outstanding increased from 129.5 million to 129.8 million for the six months ended June 30, 2021.

For the quarter ended June 30, 2022, CFO were negative €32.0 million compared to negative €34.6 million for the same period in 2021. Many of the businesses invoice customers for annual software maintenance fees in Q1 each year resulting in a disproportionate amount of cash being received in the first quarter as compared to the remaining three quarters. For the six months ended June 30, 2022, CFO increased €18.8 million to €144.0 million compared to €125.2 million for the same period in 2021 representing an increase of 15%.

For the quarter ended June 30, 2022, FCFA2S was negative €26.8 million compared to negative €25.4 million for the same period in 2021. For the six months ended June 30, 2022, FCFA2S decreased €32.1 million to €34.7 million compared to €66.8 million for the same period in 2021 representing a decrease of 48%. The decline is primarily as a result of the dividend paid to the Preferred Securities holders.

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 Topicus 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 Topicus 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, dividends paid to redeemable preferred securities holders, and property and equipment purchased, and includes interest and dividends received. The portion of this amount applicable to non-controlling interests is then deducted. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ 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,

 

 

 

 

2022

 

2021

 

 

 

 

2022

 

2021

 

 

 

 

(€ in millions, except percentages)

 

(€ in millions, except percentages)

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities

 

 

(32.0

)

(34.6

)

 

 

 

144.0

 

125.2

 

 

Adjusted for:

 

 

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

 

(0.3

)

(0.4

)

 

 

 

(0.6

)

(0.6

)

 

Interest paid on other facilities

 

 

(2.4

)

(1.0

)

 

 

 

(4.0

)

(2.5

)

 

Credit facility transaction costs

 

 

-

 

(0.2

)

 

 

 

-

 

(2.4

)

 

Payments of lease obligations

 

 

(5.1

)

(4.2

)

 

 

 

(9.6

)

(8.5

)

 

Property and equipment purchased

 

 

(1.6

)

(1.2

)

 

 

 

(3.6

)

(1.9

)

 

Dividends paid to redeemable preferred securities holders

 

 

-

 

-

 

 

 

 

(66.6

)

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41.4

)

(41.5

)

 

 

 

59.7

 

109.2

 

 

Less amount attributable to

 

 

 

 

 

 

 

 

 

 

non-controlling interests

 

 

14.5

 

16.1

 

 

 

 

(25.0

)

(42.4

)

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow available to shareholders

 

 

(26.8

)

(25.4

)

 

 

 

34.7

 

66.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to rounding, certain totals may not foot.

 

 

 

 

 

 

 

 

 

 

Comparative financial information amended to reflect the Combination as if it occurred before the start of the earliest period presented.

 

 

 

 

 

 

 

 

 

 

 

About Topicus.com Inc.

Topicus’ subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses.

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@topicus.com
www.topicus.com

SOURCE: TOPICUS.COM INC.

Topicus.com Inc.

 

 

Condensed Consolidated Interim Statements of Financial Position

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

December 31, 2021

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 

 

159,728

75,326

 

65,218

 

 

 

Accounts receivable

 

 

 

 

 

92,317

70,725

 

58,595

 

 

 

Unbilled revenue

 

 

 

 

 

42,925

32,592

 

25,091

 

 

 

Inventories

 

 

 

 

 

 

902

570

 

583

 

 

 

Other assets

 

 

 

 

 

36,500

21,776

 

26,299

 

 

 

 

 

 

 

 

 

 

 

332,372

200,989

 

175,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

 

 

19,582

15,326

 

15,532

 

 

 

Right of use assets

 

 

 

 

 

57,927

54,382

 

56,021

 

 

 

Deferred income taxes

 

 

 

 

8,307

6,831

 

4,831

 

 

 

Other assets

 

 

 

 

 

11,502

6,655

 

4,875

 

 

 

Intangible assets

872,887

744,136

 

688,088

 

 

 

 

 

 

 

 

 

 

 

970,205

827,330

 

769,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

1,302,577

1,028,319

 

945,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Revolving credit facility and current portion of term loans

 

151,570

46,489

 

30,018

 

 

 

Loan from CSI

 

 

 

 

 

-

29,116

 

-

 

 

 

Redeemable preferred securities

 

 

 

-

66,614

 

66,614

 

 

 

Accounts payable and accrued liabilities

 

 

 

142,840

135,993

 

97,597

 

 

 

Deferred revenue

 

 

 

 

 

197,492

82,179

 

148,208

 

 

 

Provisions

 

 

 

 

 

 

1,076

1,893

 

1,867

 

 

 

Acquisition holdback payables

 

 

 

 

18,416

8,876

 

4,924

 

 

 

Lease obligations

 

 

 

 

 

18,927

16,234

 

15,863

 

 

 

Income taxes payable

 

 

 

 

14,457

11,400

 

10,333

 

 

 

 

 

 

 

 

 

 

 

544,779

398,794

 

375,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

Term loans

 

 

 

 

 

101,421

96,113

 

96,359

 

 

 

Loan from CSI

 

 

 

 

 

31,602

-

 

-

 

 

 

Deferred income taxes

 

 

 

 

145,731

125,004

 

128,150

 

 

 

Acquisition holdback payables

 

 

 

 

3,078

945

 

360

 

 

 

Lease obligations

 

 

 

 

 

40,076

38,955

 

40,859

 

 

 

Other liabilities

 

 

 

 

 

20,410

12,877

 

10,476

 

 

 

 

 

 

 

 

 

 

 

342,317

273,893

 

276,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

 

 

 

887,096

672,687

 

651,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred shares

 

 

 

 

 

-

2,047,473

 

2,047,473

 

 

 

Capital stock

 

 

 

 

 

39,412

39,412

 

39,412

 

 

 

Other equity

 

 

 

 

 

-

(1,009,996

)

(999,460

)

 

 

Accumulated other comprehensive income (loss)

 

 

1,576

(380

)

(501

)

 

 

Retained earnings (deficit)

 

 

 

 

192,970

(1,782,113

)

(1,801,383

)

 

 

Non-controlling interests

 

 

 

 

181,523

1,061,236

 

1,007,964

 

 

 

 

 

 

 

 

 

 

 

415,481

355,632

 

293,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

 

 

1,302,577

1,028,319

 

945,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Topicus.com Inc.

 

 

 

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Income (Loss)

 

 

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

License

 

 

 

 

6,418

 

 

6,209

 

 

11,885

 

 

11,139

 

Professional services

 

 

 

56,481

 

 

47,616

 

 

106,589

 

 

96,205

 

Hardware and other

 

 

 

2,293

 

 

1,498

 

 

4,534

 

 

2,843

 

Maintenance and other recurring

 

 

155,425

 

 

122,915

 

 

301,374

 

 

247,648

 

 

 

 

 

 

 

 

220,616

 

 

178,238

 

 

424,383

 

 

357,834

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Staff

 

 

 

 

123,809

 

 

96,727

 

 

235,704

 

 

195,544

 

Hardware

 

 

 

 

1,515

 

 

658

 

 

2,234

 

 

1,292

 

Third party license, maintenance and professional services

18,625

 

 

20,068

 

 

36,099

 

 

35,789

 

Occupancy

 

 

 

 

1,804

 

 

1,442

 

 

3,341

 

 

2,815

 

Travel, telecommunications, supplies, software and equipment

 

 

 

 

 

 

8,450

 

 

4,741

 

 

14,548

 

 

8,953

 

Professional fees

 

 

 

3,779

 

 

2,447

 

 

7,576

 

 

4,967

 

Other, net

 

 

 

 

4,762

 

 

2,222

 

 

9,182

 

 

3,644

 

Depreciation

 

 

 

 

7,008

 

 

5,800

 

 

13,203

 

 

12,031

 

Amortization of intangible assets

 

 

26,010

 

 

20,617

 

 

48,989

 

 

41,028

 

 

 

 

 

 

 

 

195,763

 

 

154,722

 

 

370,875

 

 

306,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable preferred securities expense (income)

-

 

 

(154,611

)

 

-

 

 

2,302,185

 

Impairment of intangible and other non-financial assets

-

 

 

1,600

 

 

-

 

 

1,600

 

Finance and other expenses (income)

 

(51

)

 

2,890

 

 

1,680

 

 

5,908

 

 

 

 

 

 

 

 

(51

)

 

(150,121

)

 

1,680

 

 

2,309,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

24,904

 

 

173,637

 

 

51,828

 

 

(2,257,922

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income tax expense (recovery)

 

11,041

 

 

8,549

 

 

22,263

 

 

18,913

 

Deferred income tax expense (recovery)

 

(6,237

)

 

(3,693

)

 

(10,894

)

 

(9,481

)

Income tax expense (recovery)

 

 

4,805

 

 

4,856

 

 

11,370

 

 

9,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 

20,099

 

 

168,781

 

 

40,458

 

 

(2,267,353

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to:

 

 

 

 

 

 

 

 

 

Equity holders of Topicus

 

 

12,526

 

 

161,601

 

 

24,097

 

 

(1,903,522

)

Non-controlling interests

 

 

 

7,573

 

 

7,180

 

 

16,362

 

 

(363,831

)

Net income (loss)

 

 

 

20,099

 

 

168,781

 

 

40,458

 

 

(2,267,353

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

 

80,097,017

 

 

54,421,997

 

 

80,011,366

 

 

46,958,654

 

Diluted shares outstanding

 

 

129,841,819

 

 

129,841,819

 

 

129,841,819

 

 

129,519,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share of Topicus

 

 

 

 

 

 

 

Basic

 

 

 

 

0.16

 

 

2.97

 

 

0.30

 

 

(40.54

)

Diluted

 

 

 

 

0.16

 

 

0.11

 

 

0.30

 

 

(40.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Topicus.com Inc.

 

 

 

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)

 

 

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 

20,099

 

168,781

 

40,458

 

(2,267,353

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from foreign operations and other

3,444

 

647

 

4,871

 

1,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

3,444

 

647

 

4,871

 

1,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

23,543

 

169,428

 

45,329

 

(2,266,100

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

Equity holders of Topicus

 

 

1,325

 

397

 

1,956

 

810

 

Non-controlling interests

 

 

 

2,119

 

250

 

2,915

 

444

 

Total other comprehensive income (loss)

3,444

 

647

 

4,871

 

1,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

Equity holders of Topicus

 

 

13,850

 

161,999

 

26,052

 

(1,902,712

)

Non-controlling interests

 

 

 

9,693

 

7,430

 

19,277

 

(363,388

)

Total comprehensive income (loss)

 

 

23,543

 

169,428

 

45,329

 

(2,266,100

)



Topicus.com Inc.

 

 

 

 

 

 

 

 

Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

Attributable to equity holders of Topicus

 

 

 

 

 

Preferred Shares

Capital Stock

Other equity

Accumulated other comprehensive (loss) income

Retained earnings (Deficit)

Total

Non-controlling interests

Total equity

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2022

2,047,473

 

39,412

(1,009,996

)

(380

)

(1,782,113

)

(705,604

)

1,061,236

 

355,632

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

-

 

-

-

 

-

 

24,097

 

24,097

 

16,362

 

40,458

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

 

 

 

 

foreign operations and other, net of income tax

-

 

-

-

 

1,956

 

-

 

1,956

 

2,915

 

4,871

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

for the period

-

 

-

-

 

1,956

 

-

 

1,956

 

2,915

 

4,871

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

 

-

-

 

1,956

 

24,097

 

26,052

 

19,277

 

45,329

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of preferred shares to subordinate voting shares

(2,047,473

)

-

2,047,473

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of non-controlling interest preferred units to ordinary units and other movements in non-controlling interests

-

 

-

912,788

 

-

 

-

 

912,788

 

(912,788

)

-

 

 

 

 

 

 

 

 

 

 

 

 

 

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

-

 

-

(23

)

(0

)

(54

)

(78

)

15,470

 

15,393

 

 

 

 

 

 

 

 

 

 

 

 

 

Reductions of non-controlling interest associated with disposals

-

 

-

-

 

-

 

-

 

-

 

(873

)

(873

)

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of other equity to retained earnings (deficit)

-

 

-

(1,950,242

)

-

 

1,950,242

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus

-

 

-

-

 

-

 

799

 

799

 

(799

)

-

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

-

 

39,412

-

 

1,576

 

192,970

 

233,958

 

181,523

 

415,481

 

 

 

 

 

 

 

 

 

 

 

 



Topicus.com Inc.

 

 

 

 

 

 

 

 

 

Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)

 

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to equity holders of Topicus

 

 

 

 

 

 

Preferred Shares

Capital Stock

Other equity

Accumulated other comprehensive (loss) income

Retained earnings (deficit)

Total

Non-controlling interests

Total equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2021

-

 

39,412

-

 

(1,409

)

138,572

 

176,575

 

88,106

 

264,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

-

 

-

-

 

-

 

(1,903,522

)

(1,903,522

)

(363,831

)

(2,267,353

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences from

 

 

 

 

 

 

 

 

 

 

foreign operations and other

-

 

-

-

 

810

 

-

 

810

 

444

 

1,254

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income (loss) for the period

-

 

-

-

 

810

 

-

 

810

 

444

 

1,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

 

-

-

 

810

 

(1,903,522

)

(1,902,712

)

(363,388

)

(2,266,100

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Topicus Coop Ordinary Units to non-controlling interests

 

-

 

-

9,770

 

127

 

-

 

9,896

 

(9,896

)

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

-

 

-

-

 

(29

)

(8

)

(37

)

2,602

 

2,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Redeemable preferred securities

-

 

-

(1,001,469

)

-

 

-

 

(1,001,469

)

(124,797

)

(1,126,267

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends to common shareholders of the Company

-

 

-

-

 

-

 

(36,425

)

(36,425

)

(18,175

)

(54,600

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of Redeemable preferred securities of Topicus from liabilities to preferred shares

2,073,205

 

-

-

 

-

 

-

 

2,073,205

 

-

 

2,073,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

-

 

-

-

 

-

 

-

 

-

 

1,442,910

 

1,442,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus

-

 

-

(7,760

)

-

 

-

 

(7,760

)

7,760

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued dividends to preferred shareholders of Topicus recorded subsequent to the Notification of Conversion

(25,731

)

-

-

 

-

 

-

 

(25,731

)

-

 

(25,731

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued dividends to preference unit holders of Topicus Coop recorded subsequent to the Notification of Conversion

-

 

-

-

 

-

 

-

 

-

 

(17,157

)

(17,157

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

2,047,473

 

39,412

(999,460

)

(501

)

(1,801,383

)

(714,459

)

1,007,964

 

293,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Topicus.com Inc.

 

 

 

 

 

 

 

 

Condensed Consolidated Interim Statements of Cash Flows

 

 

 

 

 

 

 

(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

 

20,099

 

 

168,781

 

 

40,458

 

 

(2,267,353

)

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

7,008

 

 

5,800

 

 

13,203

 

 

12,031

 

 

 

Amortization of intangible assets

26,010

 

 

20,617

 

 

48,989

 

 

41,028

 

 

 

Redeemable preferred securities expense (income)

 

-

 

 

(154,611

)

 

-

 

 

2,302,185

 

 

 

Impairment of intangible and other non-financial assets

 

-

 

 

1,600

 

 

-

 

 

1,600

 

 

 

Finance and other expenses (income)

 

(51

)

 

2,890

 

 

1,680

 

 

5,908

 

 

 

Income tax expense (recovery)

4,805

 

 

4,856

 

 

11,370

 

 

9,431

 

 

Change in non-cash operating assets and liabilities

 

 

 

 

 

 

 

 

 

exclusive of effects of business combinations

(79,639

)

 

(71,468

)

 

48,989

 

 

41,446

 

 

Income taxes (paid) received

(10,255

)

 

(13,102

)

 

(20,673

)

 

(21,110

)

 

Net cash flows from (used in) operating activities

(32,023

)

 

(34,637

)

 

144,014

 

 

125,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) financing activities:

 

 

 

 

 

 

 

 

Interest paid on lease obligations

 

(277

)

 

(395

)

 

(556

)

 

(599

)

 

Interest paid on other facilities

 

(2,432

)

 

(993

)

 

(3,987

)

 

(2,542

)

 

Increase (decrease) in revolving credit facility

45,000

 

 

4,968

 

 

100,000

 

 

10,000

 

 

Proceeds from issuance of term loans

-

 

 

64

 

 

346

 

 

65,907

 

 

Increase (decrease) in loan from Vela Software Group

 

7,904

 

 

-

 

 

6,086

 

 

-

 

 

Repayments of term loans

(1,052

)

 

-

 

 

(1,669

)

 

-

 

 

Credit facility transaction costs

-

 

 

(151

)

 

-

 

 

(2,397

)

 

Payments of lease obligations

 

(5,063

)

 

(4,186

)

 

(9,574

)

 

(8,508

)

 

Other financing activities

 

(580

)

 

-

 

 

(580

)

 

-

 

 

Dividends paid to redeemable preferred securities holders

 

-

 

 

-

 

 

(66,614

)

 

-

 

 

Dividends paid to common shareholders

-

 

 

-

 

 

-

 

 

(54,600

)

 

Net cash flows from (used in) in financing activities

43,500

 

 

(693

)

 

23,452

 

 

7,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from (used in) investing activities:

 

 

 

 

 

 

 

 

Acquisition of businesses

(94,502

)

 

(5,090

)

 

(107,659

)

 

(151,738

)

 

Cash obtained with acquired businesses

 

24,935

 

 

(722

)

 

27,612

 

 

14,246

 

 

Post-acquisition settlement payments, net of receipts

(671

)

 

(6,339

)

 

(2,431

)

 

(11,008

)

 

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

-

 

 

27,589

 

 

-

 

 

27,589

 

 

Interest, dividends and other proceeds received

3,028

 

 

-

 

 

3,028

 

 

-

 

 

Property and equipment purchased

(1,587

)

 

(1,167

)

 

(3,613

)

 

(1,933

)

 

Net cash flows from (used in) investing activities

(68,798

)

 

14,270

 

 

(83,064

)

 

(122,844

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign currency on

 

 

 

 

 

 

 

 

cash and cash equivalents

(0

)

 

0

 

 

(0

)

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash

(57,321

)

 

(21,059

)

 

84,402

 

 

9,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

217,049

 

 

86,278

 

 

75,326

 

 

55,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, end of period

159,728

 

 

65,218

 

 

159,728

 

 

65,218