Results for the Third Quarter Ended September 30, 2021 TORONTO, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the third quarter ended September 30, 2021 and declared a $1.00 per share dividend payable on January 11, 2022 to all common shareholders of record at close of business on December 20, 2021. 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, 2021 and the accompanying notes, our Management Discussion and Analysis for the three and nine months ended September 30, 2021 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, 2020, 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 2021 Headlines:
- Revenue grew 30% (7% organic growth, 5% after adjusting for changes in foreign exchange rates) to $1,299 million compared to $1,003 million in Q3 2020.
- Net income attributable to common shareholders decreased 13% to $107 million ($5.04 on a diluted per share basis) from $122 million ($5.76 on a diluted per share basis) in Q3 2020.
- A number of acquisitions were completed for aggregate cash consideration of $126 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $47 million resulting in total consideration of $173 million.
- Cash flows from operations (“CFO”) were $292 million, an increase of 25%, or $58 million, compared to $234 million for the comparable period in 2020.
- Free cash flow available to shareholders1 (“FCFA2S”) increased $45 million to $226 million compared to $181 million for the same period in 2020.
- Subsequent to September 30, 2021, the Company completed or entered into agreements to acquire a number of businesses for aggregate cash consideration of $329 million. Deferred payments associated with these acquisitions have an estimated value of $41 million resulting in total consideration of $370 million.
Total revenue for the quarter ended September 30, 2021 was $1,299 million, an increase of 30%, or $296 million, compared to $1,003 million for the comparable period in 2020. For the first nine months of 2021 total revenues were $3,724 million, an increase of 29%, or $846 million, compared to $2,878 million for the comparable period in 2020. 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 7% and 9% respectively, and 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.
The net income attributable to common shareholders of CSI for the quarter ended September 30, 2021 was $107 million compared to net income of $122 million for the same period in 2020. On a per share basis this translated into a net income per diluted share of $5.04 in the quarter ended September 30, 2021 compared to net income per diluted share of $5.76 for the same period in 2020. For the nine months ended September 30, 2021, net income attributable to common shareholders of CSI was $186 million or $8.79 per diluted share compared to $288 million or $13.58 per diluted share for the same period in 2020. There was no change in the number of shares outstanding.
For the quarter ended September 30, 2021, CFO increased $58 million to $292 million compared to $234 million for the same period in 2020 representing an increase of 25%. For the first nine months of 2021, CFO increased $127 million to $959 million compared to $831 million during the same period in 2020, representing an increase of 15%.
For the quarter ended September 30, 2021, FCFA2S increased $45 million to $226 million compared to $181 million for the same period in 2020. For the first nine months of 2021, FCFA2S decreased $43 million to $639 million compared to $682 million during the same period in 2020, representing a decrease of 6%.
The directors of Constellation have unanimously agreed to appoint John Billowits, a current director and former Chief Executive Officer of Constellation's Vela operating group, as the Chair of the Board of Directors of the Company. Mark Leonard will continue in his current position as the President of the Company and (apart from relinquishing his duties as Chairman) his role and responsibilities within Constellation will remain unchanged. Mr. Leonard stated: "John brings intimate knowledge of the business of Constellation and had the deep respect of all of our directors and operating group managers, and so I'm very happy to leave the duties of Chair in John's very capable hands."
https://www.globenewswire.com/news-release/2021/11/04/2328169/0/en/Constellation-Software-Inc-Announces-Results-for-the-Third-Quarter-Ended-September-30-2021-Declares-Quarterly-Dividend-and-Appoints-John-Billowits-as-Chair-of-the-Board-of-Director.html