Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2023 and Declares Quarterly Dividend
12 August 2023 - 7:01AM
Constellation Software Inc. (TSX:CSU) (“Constellation” or the
“Company”) today announced its financial results for the second
quarter ended June 30, 2023 and declared a $1.00 per share dividend
payable on October 11, 2023 to all common shareholders of record at
close of business on September 20, 2023. 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, 2023 and the accompanying notes, our Management Discussion
and Analysis for the three and six months ended June 30, 2023 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, 2022, which can be found on SEDAR at
www.sedarplus.ca and on the Company’s website www.csisoftware.com.
Additional information about the Company is also available on SEDAR
at www.sedarplus.ca
Q2 2023 and Subsequent
Headlines:
- Revenue grew 26% (4% organic
growth, 5% after adjusting for changes in foreign exchange rates)
to $2,039 million compared to $1,618 million in Q2
2022.
- A $94 million expense related to
the increase in fair value of redeemable preferred securities was
incurred in the quarter, which is non-cash related. Fair value of
the preferred securities is primarily dependent on the price
movement of Lumine Group Inc.’s (TSXV:LMN) Subordinate Voting
Shares.
- Net income attributable to common
shareholders decreased 18% to $103 million ($4.88 on a diluted per
share basis) from $126 million ($5.94 on a diluted per share basis)
in Q2 2022.
- A number of acquisitions were
completed for aggregate cash consideration of $392 million (which
includes acquired cash). Deferred payments associated with these
acquisitions have an estimated value of $114 million resulting in
total consideration of $506 million.
- Cash flows from operations (“CFO”)
were $123 million, an increase of 58%, or $45 million, compared to
$78 million for the comparable period in 2022.
- Free cash flow available to
shareholders1 (“FCFA2S”) increased 22% or $3 million to $14 million
compared to $12 million for the same period in 2022.
- On July 17, 2023, the Company
announced that its Perseus operating group has entered into a
binding commitment with Intercontinental Exchange, Inc. and Black
Knight, Inc. to acquire Black Knight’s Optimal Blue business for
$700 million.
- On August 3, 2023 the Company
announced a rights offering pursuant to which the Company intends
to distribute rights that will entitle holders of common shares of
the Company on the applicable record date to purchase up to C$700
million aggregate principal amount of Debentures of the
Company.
Total revenue for the quarter ended June 30,
2023 was $2,039 million, an increase of 26%, or $421 million,
compared to $1,618 million for the comparable period in 2022. For
the first six months of 2023 total revenues were $3,958 million, an
increase of 30%, or $908 million, compared to $3,050 million for
the comparable period in 2022. 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 4% and 3% respectively, 5% for both
periods 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.
The Net income attributable to common
shareholders of CSI for the quarter ended June 30, 2023 was $103
million compared to net income of $126 million for the same period
in 2022. On a per share basis this translated into a net income per
diluted share of $4.88 in the quarter ended June 30, 2023 compared
to net income per diluted share of $5.94 for the same period in
2022. For the six months ended June 30, 2023, net income
attributable to common shareholders of CSI was $198 million or
$9.32 per diluted share compared to $224 million or $10.58 per
diluted share for the same period in 2022.
For the quarter ended June 30, 2023, CFO
increased $45 million to $123 million compared to $78 million for
the same period in 2022 representing a increase of 58%. For the
first six months of 2023, CFO increased $179 million to $755
million compared to $576 million during the same period in 2022,
representing a increase of 31%.
For the quarter ended June 30, 2023, FCFA2S
increased $3 million to $14 million compared to $12 million for the
same period in 2022 representing an increase of 22%. For the six
months ended June 30, 2023, FCFA2S increased $133 million to $467
million compared to $335 million for the same period in 2022
representing an increase of 40%.
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 MeasuresFree 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, and the proceeds from
sale of interest rate caps. 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 June 30, |
|
|
|
Six months ended June 30, |
|
|
|
|
|
2023 |
2022 |
|
|
|
2023 |
2022 |
|
|
|
|
($ in millions) |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
123 |
|
78 |
|
|
|
|
755 |
|
576 |
|
|
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
|
(3 |
) |
(3 |
) |
|
|
|
(5 |
) |
(5 |
) |
|
|
Interest paid on other facilities |
|
|
(36 |
) |
(16 |
) |
|
|
|
(62 |
) |
(26 |
) |
|
|
Proceeds from sale of interest rate cap |
|
|
6 |
|
- |
|
|
|
|
6 |
|
- |
|
|
|
Credit facility transaction costs |
|
|
(1 |
) |
(2 |
) |
|
|
|
(3 |
) |
(3 |
) |
|
|
Payments of lease obligations |
|
|
(28 |
) |
(23 |
) |
|
|
|
(53 |
) |
(45 |
) |
|
|
IRGA / TSS membership liability revaluation charge |
|
|
(31 |
) |
(29 |
) |
|
|
|
(69 |
) |
(56 |
) |
|
|
Property and equipment purchased |
|
|
(9 |
) |
(12 |
) |
|
|
|
(19 |
) |
(19 |
) |
|
|
Interest and dividends received |
|
|
0 |
|
0 |
|
|
|
|
1 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
(7 |
) |
|
|
|
550 |
|
422 |
|
|
|
Less amount attributable to |
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
(7 |
) |
18 |
|
|
|
|
(83 |
) |
(87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow available to shareholders |
|
|
14 |
|
12 |
|
|
|
|
467 |
|
335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 BakshChief Financial Officer (416)
861-9677 info@csisoftware.comwww.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, 2023 |
December 31, 2022 |
June 30, 2022 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
970 |
|
$ |
811 |
|
$ |
676 |
|
|
Accounts
receivable |
|
976 |
|
|
892 |
|
|
758 |
|
|
Unbilled
revenue |
|
305 |
|
|
218 |
|
|
212 |
|
|
Inventories |
|
56 |
|
|
48 |
|
|
45 |
|
|
Other
assets |
|
459 |
|
|
497 |
|
|
512 |
|
|
|
|
2,767 |
|
|
2,465 |
|
|
2,203 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
Property and
equipment |
|
128 |
|
|
128 |
|
|
128 |
|
|
Right of use
assets |
|
285 |
|
|
283 |
|
|
284 |
|
|
Deferred
income taxes |
|
89 |
|
|
159 |
|
|
114 |
|
|
Other
assets |
|
189 |
|
|
172 |
|
|
145 |
|
|
Intangible assets |
|
5,730 |
|
|
4,667 |
|
|
4,447 |
|
|
|
|
6,422 |
|
|
5,410 |
|
|
5,117 |
|
|
|
|
|
|
Total assets |
$ |
9,188 |
|
$ |
7,875 |
|
$ |
7,320 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Debt with
recourse to Constellation Software Inc. |
$ |
734 |
|
$ |
505 |
|
$ |
389 |
|
|
Debt without
recourse to Constellation Software Inc. |
|
283 |
|
|
316 |
|
|
206 |
|
|
Redeemable
preferred securities |
|
500 |
|
|
- |
|
|
- |
|
|
Accounts
payable and accrued liabilities |
|
1,084 |
|
|
1,082 |
|
|
883 |
|
|
Dividends
payable |
|
21 |
|
|
21 |
|
|
21 |
|
|
Deferred
revenue |
|
1,867 |
|
|
1,484 |
|
|
1,555 |
|
|
Provisions |
|
11 |
|
|
11 |
|
|
10 |
|
|
Acquisition
holdback payables |
|
148 |
|
|
159 |
|
|
140 |
|
|
Lease
obligations |
|
98 |
|
|
96 |
|
|
96 |
|
|
Income taxes
payable |
|
77 |
|
|
99 |
|
|
81 |
|
|
|
|
4,824 |
|
|
3,772 |
|
|
3,380 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
Debt with
recourse to Constellation Software Inc. |
|
614 |
|
|
567 |
|
|
541 |
|
|
Debt without
recourse to Constellation Software Inc. |
|
795 |
|
|
586 |
|
|
746 |
|
|
Deferred
income taxes |
|
530 |
|
|
466 |
|
|
455 |
|
|
Acquisition
holdback payables |
|
104 |
|
|
75 |
|
|
62 |
|
|
Lease
obligations |
|
216 |
|
|
218 |
|
|
222 |
|
|
Other
liabilities |
|
237 |
|
|
257 |
|
|
244 |
|
|
|
|
2,496 |
|
|
2,169 |
|
|
2,269 |
|
|
|
|
|
|
Total liabilities |
|
7,320 |
|
|
5,941 |
|
|
5,650 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Capital
stock |
|
99 |
|
|
99 |
|
|
99 |
|
|
Accumulated
other comprehensive income (loss) |
|
(112 |
) |
|
(150 |
) |
|
(147 |
) |
|
Retained
earnings |
|
1,547 |
|
|
1,763 |
|
|
1,514 |
|
|
Non-controlling interests |
|
335 |
|
|
221 |
|
|
204 |
|
|
|
|
1,868 |
|
|
1,933 |
|
|
1,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
9,188 |
|
$ |
7,875 |
|
$ |
7,320 |
|
|
|
|
|
|
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 June 30, |
|
Six months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
License |
$ |
89 |
|
|
$ |
72 |
|
|
$ |
170 |
|
|
$ |
141 |
|
Professional services |
|
428 |
|
|
|
340 |
|
|
|
840 |
|
|
|
610 |
|
Hardware and other |
|
63 |
|
|
|
50 |
|
|
|
121 |
|
|
|
97 |
|
Maintenance and other recurring |
|
1,459 |
|
|
|
1,156 |
|
|
|
2,828 |
|
|
|
2,201 |
|
|
|
|
2,039 |
|
|
|
1,618 |
|
|
|
3,958 |
|
|
|
3,050 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Staff |
|
1,112 |
|
|
|
873 |
|
|
|
2,179 |
|
|
|
1,656 |
|
Hardware |
|
36 |
|
|
|
29 |
|
|
|
71 |
|
|
|
56 |
|
Third party license, maintenance and professional services |
|
199 |
|
|
|
153 |
|
|
|
384 |
|
|
|
276 |
|
Occupancy |
|
13 |
|
|
|
12 |
|
|
|
26 |
|
|
|
23 |
|
Travel, telecommunications, supplies, software and equipment |
|
97 |
|
|
|
80 |
|
|
|
185 |
|
|
|
135 |
|
Professional fees |
|
36 |
|
|
|
28 |
|
|
|
71 |
|
|
|
52 |
|
Other, net |
|
29 |
|
|
|
32 |
|
|
|
67 |
|
|
|
68 |
|
Depreciation |
|
40 |
|
|
|
35 |
|
|
|
79 |
|
|
|
67 |
|
Amortization of intangible assets |
|
213 |
|
|
|
168 |
|
|
|
406 |
|
|
|
314 |
|
|
|
|
1,774 |
|
|
|
1,411 |
|
|
|
3,469 |
|
|
|
2,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) |
|
16 |
|
|
|
(42 |
) |
|
|
26 |
|
|
|
(42 |
) |
IRGA/TSS Membership liability revaluation charge |
|
31 |
|
|
|
29 |
|
|
|
69 |
|
|
|
56 |
|
Finance and other expense (income) |
|
(2 |
) |
|
|
18 |
|
|
|
(9 |
) |
|
|
15 |
|
Bargain purchase gain |
|
0 |
|
|
|
(0 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Impairment of intangible and other non-financial assets |
|
1 |
|
|
|
0 |
|
|
|
3 |
|
|
|
1 |
|
Redeemable preferred securities expense (income) |
|
94 |
|
|
|
- |
|
|
|
282 |
|
|
|
- |
|
Finance costs |
|
46 |
|
|
|
25 |
|
|
|
82 |
|
|
|
44 |
|
|
|
|
186 |
|
|
|
30 |
|
|
|
453 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
79 |
|
|
|
177 |
|
|
|
36 |
|
|
|
328 |
|
|
|
|
|
|
|
|
|
|
Current income tax expense (recovery) |
|
114 |
|
|
|
110 |
|
|
|
217 |
|
|
|
209 |
|
Deferred income tax expense (recovery) |
|
(61 |
) |
|
|
(67 |
) |
|
|
(123 |
) |
|
|
(126 |
) |
Income tax expense (recovery) |
|
53 |
|
|
|
43 |
|
|
|
93 |
|
|
|
83 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
26 |
|
|
|
134 |
|
|
|
(57 |
) |
|
|
245 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to: |
|
|
|
|
|
|
|
Common shareholders of Constellation Software Inc. |
|
103 |
|
|
|
126 |
|
|
|
198 |
|
|
|
224 |
|
Non-controlling interests |
|
(78 |
) |
|
|
8 |
|
|
|
(255 |
) |
|
|
21 |
|
Net income (loss) |
|
26 |
|
|
|
134 |
|
|
|
(57 |
) |
|
|
245 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share of Constellation Software Inc. |
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
4.88 |
|
|
$ |
5.94 |
|
|
$ |
9.32 |
|
|
$ |
10.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, |
|
Six months ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
26 |
|
|
$ |
134 |
|
|
$ |
(57 |
) |
|
$ |
245 |
|
|
|
|
|
|
|
|
|
Items that are or may be reclassified subsequently to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from foreign operations
and other, net of tax |
|
15 |
|
|
|
(96 |
) |
|
|
31 |
|
|
|
(91 |
) |
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of income tax |
|
15 |
|
|
|
(96 |
) |
|
|
31 |
|
|
|
(91 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income (loss) |
$ |
41 |
|
|
$ |
38 |
|
|
$ |
(26 |
) |
|
$ |
154 |
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
Common shareholders of Constellation Software Inc. |
|
15 |
|
|
|
(85 |
) |
|
|
26 |
|
|
|
(76 |
) |
Non-controlling interests |
|
0 |
|
|
|
(11 |
) |
|
|
6 |
|
|
|
(15 |
) |
Total other comprehensive income (loss) |
$ |
15 |
|
|
$ |
(96 |
) |
|
$ |
31 |
|
|
$ |
(91 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
Common shareholders of Constellation Software Inc. |
|
118 |
|
|
|
41 |
|
|
|
223 |
|
|
|
148 |
|
Non-controlling interests |
|
(77 |
) |
|
|
(3 |
) |
|
|
(249 |
) |
|
|
6 |
|
Total comprehensive income (loss) |
$ |
41 |
|
|
$ |
38 |
|
|
$ |
(26 |
) |
|
$ |
154 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
Six months ended June 30, 2023 |
|
|
|
|
|
|
|
|
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, 2023 |
$ |
99 |
$ |
- |
$ |
(150 |
) |
$ |
1,763 |
|
$ |
1,713 |
|
|
221 |
|
$ |
1,933 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
- |
|
- |
|
- |
|
|
198 |
|
|
198 |
|
|
(255 |
) |
|
(57 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation differences from |
|
|
|
|
|
|
|
|
|
foreign operations and other, net of tax |
|
- |
|
- |
|
26 |
|
|
- |
|
|
26 |
|
|
6 |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) |
|
- |
|
- |
|
26 |
|
|
- |
|
|
26 |
|
|
6 |
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) |
|
- |
|
- |
|
26 |
|
|
198 |
|
|
223 |
|
|
(249 |
) |
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special dividend of Lumine Subordinate Voting Shares |
|
- |
|
- |
|
12 |
|
|
(378 |
) |
|
(366 |
) |
|
366 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of non-controlling interests |
|
- |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
Conversion of Lumine Special Shares to subordinate voting shares of
Lumine |
|
- |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
4 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Other movements in non-controlling interests |
|
- |
|
- |
|
0 |
|
|
6 |
|
|
6 |
|
|
(6 |
) |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to shareholders of the Company |
|
- |
|
- |
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
- |
|
|
(42 |
) |
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2023 |
$ |
99 |
$ |
- |
$ |
(112 |
) |
$ |
1,547 |
|
$ |
1,533 |
|
$ |
335 |
|
$ |
1,868 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
Six months
ended June 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): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
- |
|
- |
|
|
- |
|
|
224 |
|
|
224 |
|
|
21 |
|
|
245 |
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation differences from |
|
|
|
|
|
|
|
foreign operations and other, net of tax |
|
- |
|
- |
|
|
(76 |
) |
|
- |
|
|
(76 |
) |
|
(15 |
) |
|
(91 |
) |
|
|
|
|
|
|
|
|
Total other comprehensive income (loss) |
|
- |
|
- |
|
|
(76 |
) |
|
- |
|
|
(76 |
) |
|
(15 |
) |
|
(91 |
) |
|
|
|
|
|
|
|
|
Total comprehensive income (loss) |
|
- |
|
- |
|
|
(76 |
) |
|
224 |
|
|
148 |
|
|
6 |
|
|
154 |
|
|
|
|
|
|
|
|
|
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 movements |
|
- |
|
305 |
|
|
(5 |
) |
|
- |
|
|
301 |
|
|
(301 |
) |
|
- |
|
|
|
|
|
|
|
|
|
Non-controlling interests arising from business combinations |
|
- |
|
|
|
|
- |
|
|
40 |
|
|
40 |
|
|
|
|
|
|
|
|
|
Other movements in non-controlling interests |
|
- |
|
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
|
|
|
|
|
|
|
|
Dividends to shareholders of the Company (note 12) |
|
- |
|
- |
|
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
- |
|
|
(42 |
) |
|
|
|
|
|
|
|
|
Reclassification of other equity to retained earnings |
|
- |
|
(127 |
) |
|
|
127 |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Balance at June 30, 2022 |
$ |
99 |
$ |
- |
|
$ |
(147 |
) |
$ |
1,514 |
|
$ |
1,466 |
|
$ |
204 |
|
$ |
1,670 |
|
|
|
|
|
|
|
|
|
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 June 30, |
|
|
|
Six months ended June 30, |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
26 |
|
|
$ |
134 |
|
|
$ |
(57 |
) |
|
$ |
245 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
40 |
|
|
|
35 |
|
|
|
79 |
|
|
|
67 |
|
|
|
Amortization of intangible assets |
|
213 |
|
|
|
168 |
|
|
|
406 |
|
|
|
314 |
|
|
|
IRGA/TSS Membership liability revaluation charge |
|
31 |
|
|
|
29 |
|
|
|
69 |
|
|
|
56 |
|
|
|
Finance and other expense (income) |
|
(2 |
) |
|
|
18 |
|
|
|
(9 |
) |
|
|
15 |
|
|
|
Bargain purchase (gain) |
|
0 |
|
|
|
(0 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
Impairment of intangible and other non-financial assets |
|
1 |
|
|
|
0 |
|
|
|
3 |
|
|
|
1 |
|
|
|
Redeemable preferred securities expense (income) |
|
94 |
|
|
|
- |
|
|
|
282 |
|
|
|
- |
|
|
|
Finance costs |
|
46 |
|
|
|
25 |
|
|
|
82 |
|
|
|
44 |
|
|
|
Income tax expense (recovery) |
|
53 |
|
|
|
43 |
|
|
|
93 |
|
|
|
83 |
|
|
|
Foreign exchange loss (gain) |
|
16 |
|
|
|
(42 |
) |
|
|
26 |
|
|
|
(42 |
) |
|
Change in non-cash operating assets and liabilities |
|
|
|
|
|
|
|
|
|
exclusive of effects of business combinations |
|
(238 |
) |
|
|
(188 |
) |
|
|
30 |
|
|
|
(18 |
) |
|
Income taxes paid |
|
(158 |
) |
|
|
(146 |
) |
|
|
(249 |
) |
|
|
(190 |
) |
|
Net cash flows from (used in) operating activities |
|
123 |
|
|
|
78 |
|
|
|
755 |
|
|
|
576 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities: |
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
(3 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
Interest paid on debt |
|
(36 |
) |
|
|
(16 |
) |
|
|
(62 |
) |
|
|
(26 |
) |
|
Proceeds from sale of interest rate cap |
|
6 |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
Increase (decrease) in CSI facility |
|
240 |
|
|
|
237 |
|
|
|
189 |
|
|
|
237 |
|
|
Increase (decrease) in Topicus revolving credit debt facility
without recourse to CSI |
|
49 |
|
|
|
48 |
|
|
|
38 |
|
|
|
105 |
|
|
Proceeds from issuance of debt facilities without recourse to
CSI |
|
75 |
|
|
|
342 |
|
|
|
254 |
|
|
|
425 |
|
|
Repayments of debt facilities without recourse to CSI |
|
(42 |
) |
|
|
(6 |
) |
|
|
(128 |
) |
|
|
(13 |
) |
|
Other financing activities |
|
(2 |
) |
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
|
Credit facility transaction costs |
|
(1 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
Payments of lease obligations |
|
(28 |
) |
|
|
(23 |
) |
|
|
(53 |
) |
|
|
(45 |
) |
|
Distribution to the Joday Group |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(23 |
) |
|
Dividends paid to redeemable preferred security holders |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7 |
) |
|
Dividends paid to common shareholders of the Company |
|
(21 |
) |
|
|
(21 |
) |
|
|
(42 |
) |
|
|
(42 |
) |
|
Net cash flows from (used in) in financing activities |
|
238 |
|
|
|
559 |
|
|
|
195 |
|
|
|
605 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities: |
|
|
|
|
|
|
|
|
Acquisition of businesses |
|
(393 |
) |
|
|
(1,000 |
) |
|
|
(845 |
) |
|
|
(1,214 |
) |
|
Cash obtained with acquired businesses |
|
48 |
|
|
|
110 |
|
|
|
93 |
|
|
|
148 |
|
|
Post-acquisition settlement payments, net of receipts |
|
(61 |
) |
|
|
(26 |
) |
|
|
(133 |
) |
|
|
(59 |
) |
|
Purchases of investments and other assets |
|
(16 |
) |
|
|
- |
|
|
|
(18 |
) |
|
|
(96 |
) |
|
Proceeds from sales of other investments and other assets |
|
- |
|
|
|
- |
|
|
|
119 |
|
|
|
3 |
|
|
Decrease (increase) in restricted cash |
|
29 |
|
|
|
- |
|
|
|
(0 |
) |
|
|
- |
|
|
Interest, dividends and other proceeds received |
|
0 |
|
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
Property and equipment purchased |
|
(9 |
) |
|
|
(12 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
Net cash flows from (used in) investing activities |
|
(402 |
) |
|
|
(924 |
) |
|
|
(800 |
) |
|
|
(1,233 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency on |
|
|
|
|
|
|
|
|
cash |
|
1 |
|
|
|
(33 |
) |
|
|
8 |
|
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash |
|
(40 |
) |
|
|
(321 |
) |
|
|
159 |
|
|
|
(87 |
) |
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
$ |
1,010 |
|
|
$ |
996 |
|
|
$ |
811 |
|
|
$ |
763 |
|
|
|
|
|
|
|
|
|
|
|
Cash, end of period |
$ |
970 |
|
|
$ |
676 |
|
|
$ |
970 |
|
|
$ |
676 |
|
|
|
|
|
|
|
|
|
|
|
Constellation Software (TSX:CSU)
Historical Stock Chart
From Apr 2024 to May 2024
Constellation Software (TSX:CSU)
Historical Stock Chart
From May 2023 to May 2024