Constellation Announces 3rd Quarter 2015 Results and Declares Dividend

TORONTO, ONTARIO (28 October 2015) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2015 and declared a US$1.00 per share dividend payable on January 5, 2016 to all common shareholders of record at close of business on December 17, 2015.

Q3 2015 Headlines:

• Revenue grew 10% (negative 5% organic growth) to $460 million compared to $419 million in Q3 2014. Changes in foreign exchange rates resulted in an approximate 6% reduction in organic growth.

• Adjusted EBITA increased $20 million or 20% to $120 million as compared to $100 million in Q3 2014.

• Adjusted EBITA margin increased 2% from 24% in Q3 2014 to 26% in Q3 2015. Changes in foreign exchange rates resulted in less than a 1% reduction in Adjusted EBITA margin.

• Adjusted Net Income increased 43% to $99 million ($4.67 on a diluted per share basis) from $69 million ($3.27 on a diluted per share basis) in Q3 2014.

• Net income increased 43% to $46 million ($2.16 on a diluted per share basis) from $32 million ($1.51 on a diluted per share basis) in Q3 2014.

• Eleven acquisitions were completed for aggregate cash consideration of $64 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $11 million.

• Cash flows from operations were $105 million, an increase of 4%, or $4 million, compared to $101 million for the comparable period in 2014.

• An additional tranche of debentures were issued with a total principal value of C$186 million for total proceeds of C$214 million.

• The amount drawn on the Company’s credit facilities decreased to $145 million from $298 million in Q2 2015.

Third quarter 2015 revenue was $460 million, an increase of 10%, or $41 million, compared to $419 million for the comparable period in 2014. For the first nine months of 2015 total revenues were $1,327 million, an increase of 8%, or $97 million, compared to $1,230 million for the comparable period in 2014. The increase for both the three and nine month periods ended September 30, 2015 compared to the same periods in the prior year is attributable to growth from acquisitions as the Company experienced negative organic growth of growth of 5% and 4%, respectively.

For both the three and nine month periods ended September 30, 2015, the appreciation of the US dollar against most major currencies in which the Company transacts business resulted in an approximate 6% reduction in the Company’s organic growth rate compared to the comparable periods of 2014.

The Friedman Operating Group is one of several companies within Constellation’s Private Sector Segment.

Private Sector Results
For the quarter ended September 30, 2015, total revenue in the private sector reportable segment increased 16%, or $20 million to $144 million, compared to $124 million for the quarter ended September 30, 2014. For the nine months ended September 30, 2015 total revenue increased by 13%, or $48 million to $411 million, compared to $363 million for the comparable period in 2014. Total revenue growth from acquired businesses contributed approximately $23 million to our Q3 2015 revenues and $55 million to our nine months ended September 30, 2015 revenues compared to the same periods in 2014, as we completed 23 acquisitions since the beginning of 2014. Organic revenue growth was negative 2% for both the three and nine month periods ended September 30, 2015 compared to the same periods in 2014. For the three and nine months ended September 30, 2015, the appreciation of the US dollar against most major currencies in which the Company transacts business resulted in approximate 6% and 5% respective reductions in the private sector revenue organic growth rates compared to the comparable periods of 2014.

The full news 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, 2015 and the accompanying notes, our Management’s Discussion and Analysis for the three and nine months ended September 30, 2015, 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, 2014, which can be found on SEDAR  and on the Company’s website.

Comments are closed.