TORONTO, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2019 and declared a $1.00 per share dividend payable on April 7, 2020 to all common shareholders of record at close of business on March 16, 2020. 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 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, 2019, 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.
Q4 2019 Headlines:
- Revenue grew 15% (negative 3% organic growth, negative 2% after adjusting for changes in foreign exchange rates) to $956 million compared to $831 million in Q4 2018.
- Net income decreased 49% to $92 million ($4.34 on a diluted per share basis) from $179 million ($8.46 on a diluted per share basis) in Q4 2018. Excluding the amortization of intangible assets expense and bargain purchase gains net income decreased 1%.
- A number of acquisitions were completed for aggregate cash consideration of $141 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $33 million resulting in total consideration of $175 million.
- Cash flows from operations (“CFO”) (after adjusting for the impact of IFRS 16 Leases, which was adopted on January 1, 2019) were $236 million, an increase of 13%, or $28 million, compared to $208 million for the comparable period in 2018.
- Free cash flow available to shareholders (“FCFA2S”) increased $14 million to $193 million compared to $180 million for the same period in 2018 representing an increase of 8%.
- Subsequent to December 31, 2019, the Company completed or entered into agreements to acquire a number of businesses for aggregate cash consideration of $63 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $42 million resulting in total consideration of $104 million.
2019 Headlines:
- Revenue grew 14% (negative 1% organic growth, positive 1% after adjusting for changes in foreign exchange rates) to $3,490 million compared to $3,060 million in 2018.
- Net income decreased 12% to $333 million ($15.73 on a diluted per share basis) from $379 million ($17.91 on a diluted per share basis) in 2018. Excluding the amortization of intangible assets expense and bargain purchase gains net income increased 5%.
- A number of acquisitions were completed for aggregate cash consideration of $549 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $139 million resulting in total consideration of $688 million.
- Cash flows from operations (“CFO”) (after adjusting for the impact of IFRS 16 Leases, which was adopted on January 1, 2019) were $708 million, an increase of 7%, or $46 million, compared to $662 million for the comparable period in 2018.
- Free cash flow available to shareholders (“FCFA2S”) increased $32 million to $590 million compared to $559 million for the same period in 2018 representing an increase of 6%.
Total revenue for the quarter ended December 31, 2019 was $956 million, an increase of 15%, or $125 million, compared to $831 million for the comparable period in 2018. For the year ended December 31, 2019 total revenues were $3,490 million, an increase of 14%, or $430 million, compared to $3,060 million for the comparable period in 2018. The increase for both the three and twelve 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 1% respectively, negative 2% and positive 1% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business.
Net income for the quarter ended December 31, 2019 was $92 million compared to net income of $179 million for the same period in 2018. On a per share basis, this translated into a net income per diluted share of $4.34 in the quarter ended December 31, 2019 compared to net income per diluted share of $8.46 for the same period in 2018. For the year ended December 31, 2019, net income was $333 million or $15.73 per diluted share compared to $379 million or $17.91 per diluted share for the same period in 2018.
For the quarter ended December 31, 2019, CFO increased $46 million to $255 million compared to $208 million for the same period in 2018 representing an increase of 22%. For the year ended December 31, 2019, CFO increased $105 million to $767 million compared to $662 million during the same period in 2018, representing an increase of 16%. In conjunction with the Company’s adoption of IFRS 16 on January 1, 2019, lease obligation and interest payments that have historically been deducted from CFO are now recorded as a component of cash flows used in financing activities. For the three and twelve months ended December 31, 2019 lease obligation and interest payments totaled $19 million and $59 million respectively. If lease obligation and interest payments were deducted from CFO for the three and twelve months ended December 31, 2019 the increase in CFO would have been 13% and 7% over the same periods in 2018.
For the quarter ended December 31, 2019, FCFA2S increased $14 million to $193 million compared to $180 million for the same period in 2018 representing an increase of 8%. For the year ended December 31, 2019, FCFA2S increased $32 million to $590 million compared to $559 million during the same period in 2018, representing an increase of 6%. The primary reason for the large variance between the 6% growth in FCFA2S and the 14% revenue growth for the year-ended December 31, 2019 is that FCFA2S 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”. For the year ended December 31, 2019 there was $28 million of cash used in non-cash operating working capital compared to $14 million of cash generated from non-cash operating working capital for the same period in 2018.
The following table displays our revenue by reportable segment and the percentage change for the three and twelve months ended December 31, 2019 compared to the same periods in 2018:
|
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|
|
|
|
|
|
Three months ended
December 31, |
Period-Over-
Period Change |
Organic
Growth |
|
Year ended
December 31, |
Period-Over-
Period Change |
Organic
Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
2018 |
$ |
% |
% |
|
2019 |
2018 |
$ |
% |
% |
|
|
|
|
($ in millions, except percentages) |
|
($ in millions, except percentages) |
|
|
Public Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses |
|
41 |
33 |
8 |
|
24 |
% |
-4 |
% |
|
143 |
121 |
22 |
|
18 |
% |
-7 |
% |
|
|
Professional services |
|
147 |
132 |
15 |
|
12 |
% |
-8 |
% |
|
522 |
471 |
51 |
|
11 |
% |
-7 |
% |
|
|
Hardware and other |
|
42 |
51 |
(9 |
) |
-17 |
% |
-25 |
% |
|
143 |
146 |
(3 |
) |
-2 |
% |
-13 |
% |
|
|
Maintenance and other recurring |
425 |
340 |
85 |
|
25 |
% |
3 |
% |
|
1,544 |
1,309 |
235 |
|
18 |
% |
2 |
% |
|
|
|
|
655 |
556 |
99 |
|
18 |
% |
-2 |
% |
|
2,353 |
2,047 |
305 |
|
15 |
% |
-2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private Sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses |
|
21 |
24 |
(4 |
) |
-15 |
% |
-20 |
% |
|
83 |
77 |
6 |
|
8 |
% |
-3 |
% |
|
|
Professional services |
|
41 |
41 |
(0 |
) |
0 |
% |
-8 |
% |
|
151 |
144 |
7 |
|
5 |
% |
-7 |
% |
|
|
Hardware and other |
|
9 |
7 |
2 |
|
26 |
% |
-2 |
% |
|
30 |
28 |
2 |
|
7 |
% |
-8 |
% |
|
|
Maintenance and other recurring |
230 |
202 |
28 |
|
14 |
% |
0 |
% |
|
873 |
763 |
110 |
|
14 |
% |
1 |
% |
|
|
|
|
300 |
275 |
26 |
|
9 |
% |
-3 |
% |
|
1,138 |
1,013 |
125 |
|
12 |
% |
-1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to rounding, certain totals may not foot and certain percentages may not reconcile. |
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|
For purposes of calculating organic growth, estimated pre-acquisition revenue from the relevant companies acquired in 2018 and 2019 was added to actual reported revenue for the three and twelve months ended December 31, 2018.
Public Sector
For the quarter ended December 31, 2019, total revenue in the public sector reportable segment increased 18%, or $99 million to $655 million, compared to $556 million for the quarter ended December 31, 2018. For the year ended December 31, 2019, total revenue increased by 15%, or $305 million to $2,353 million, compared to $2,047 million for the comparable period in 2018. For purposes of calculating organic growth, estimated pre-acquisition revenues included from the relevant companies acquired in 2018 and 2019 was $115 million and $351 million for the three and twelve month periods ended December 31, 2019, respectively. Organic revenue growth was negative 2% for both the three and twelve months ended December 31, 2019 compared to the same periods in 2018, and negative 1% and 0% 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.
Private Sector
For the quarter ended December 31, 2019, total revenue in the private sector reportable segment increased 9%, or $26 million to $300 million, compared to $275 million for the quarter ended December 31, 2018. For the year ended December 31, 2019, total revenue increased by 12%, or $125 million to $1,138 million, compared to $1,013 million for the comparable period in 2018. For purposes of calculating organic growth, estimated pre-acquisition revenues included from the relevant companies acquired in 2018 and 2019 was $36 million and $132 million for the three and twelve month periods ended December 31, 2019, respectively. Organic revenue growth was negative 3% and negative 1% for the three and twelve months ended December 31, 2019 respectively compared to the same periods in 2018, and negative 2% and positive 2% 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.
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 TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received. Constellation believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Constellation does not make any acquisitions, or investments, and does not repay any debts. While Constellation could use the FCFA2S to pay dividends or repurchase shares, Constellation’s objective is to invest all of our FCFA2S in acquisitions which meet Constellation’s 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:
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|
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|
|
|
Three months ended
December 31, |
|
|
|
Year ended
December 31, |
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
($ in millions, except percentages) |
|
($ in millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
255 |
|
208 |
|
|
|
|
767 |
|
662 |
|
|
|
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on lease obligations |
|
|
(2 |
) |
- |
|
|
|
|
(7 |
) |
- |
|
|
|
|
Interest paid on other facilities |
|
|
(8 |
) |
(7 |
) |
|
|
|
(31 |
) |
(24 |
) |
|
|
|
Credit facility transaction costs |
|
|
(2 |
) |
(1 |
) |
|
|
|
(3 |
) |
(4 |
) |
|
|
|
Payments of lease obligations |
|
|
(17 |
) |
- |
|
|
|
|
(51 |
) |
- |
|
|
|
|
TSS membership liability revaluation charge |
|
|
(22 |
) |
(18 |
) |
|
|
|
(52 |
) |
(55 |
) |
|
|
|
Property and equipment purchased |
|
|
(10 |
) |
(7 |
) |
|
|
|
(34 |
) |
(25 |
) |
|
|
|
Interest and dividends received |
|
|
0 |
|
4 |
|
|
|
|
3 |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow available to shareholders |
|
|
193 |
|
180 |
|
|
|
|
590 |
|
559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
| Consolidated Statements of Financial Position |
|
|
|
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
$ |
316 |
|
$ |
589 |
|
|
Accounts receivable |
|
|
|
|
|
|
422 |
|
|
362 |
|
|
Unbilled revenue |
|
|
|
|
|
|
110 |
|
|
80 |
|
|
Inventories |
|
|
|
|
|
|
|
31 |
|
|
34 |
|
|
Other assets |
|
|
|
|
|
|
184 |
|
|
143 |
|
|
|
|
|
|
|
|
|
|
|
1,062 |
|
|
1,207 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-current assets: |
|
|
|
|
|
|
|
|
Property and equipment |
|
|
|
|
|
78 |
|
|
67 |
|
|
Right of use assets |
|
|
|
|
|
|
234 |
|
|
- |
|
|
Deferred income taxes |
|
|
|
|
|
|
45 |
|
|
47 |
|
|
Other assets |
|
|
|
|
|
|
72 |
|
|
64 |
|
|
Intangible assets |
|
1,997 |
|
|
1,549 |
|
|
|
|
|
|
|
|
|
|
|
2,425 |
|
|
1,728 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
|
|
|
|
$ |
3,488 |
|
$ |
2,935 |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
CSI facility |
|
|
|
|
|
|
$ |
63 |
|
$ |
- |
|
|
Debt without recourse to Constellation Software Inc. |
|
|
|
57 |
|
|
51 |
|
|
TSS membership liability |
|
|
|
|
|
86 |
|
|
67 |
|
|
Accounts payable and accrued liabilities |
|
|
|
|
529 |
|
|
464 |
|
|
Dividends payable |
|
|
|
|
|
|
21 |
|
|
21 |
|
|
Deferred revenue |
|
|
|
|
|
|
788 |
|
|
657 |
|
|
Provisions |
|
|
|
|
|
|
|
13 |
|
|
7 |
|
|
Acquisition holdback payables |
|
|
|
|
|
76 |
|
|
47 |
|
|
Lease obligations |
|
|
|
|
|
|
62 |
|
|
- |
|
|
Income taxes payable |
|
|
|
|
|
|
36 |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
1,732 |
|
|
1,344 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-current liabilities: |
|
|
|
|
|
|
|
|
Debt without recourse to Constellation Software Inc. |
|
|
|
153 |
|
|
102 |
|
|
TSS membership liability |
|
|
|
|
|
136 |
|
|
117 |
|
|
Debentures |
|
|
|
|
|
|
|
222 |
|
|
215 |
|
|
Deferred income taxes |
|
|
|
|
|
|
246 |
|
|
192 |
|
|
Acquisition holdback payables |
|
|
|
|
|
25 |
|
|
25 |
|
|
Lease obligations |
|
|
|
|
|
|
187 |
|
|
- |
|
|
Other liabilities |
|
|
|
|
|
|
101 |
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
1,069 |
|
|
725 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
|
|
|
2,800 |
|
|
2,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
|
99 |
|
|
99 |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
(40 |
) |
|
(37 |
) |
|
Retained earnings |
|
|
|
|
|
|
628 |
|
|
804 |
|
|
|
|
|
|
|
|
|
|
|
687 |
|
|
866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
|
|
$ |
3,488 |
|
$ |
2,935 |
|
|
|
|
|
|
|
|
|
|
|
|
| CONSTELLATION SOFTWARE INC. |
| Consolidated Statements of Income |
|
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
| License |
$ |
226 |
|
|
$ |
198 |
|
| Professional services |
|
673 |
|
|
|
616 |
|
| Hardware and other |
|
173 |
|
|
|
175 |
|
| Maintenance and other recurring |
|
2,417 |
|
|
|
2,072 |
|
|
|
3,490 |
|
|
|
3,060 |
|
|
|
|
|
| Expenses |
|
|
|
| Staff |
|
1,797 |
|
|
|
1,565 |
|
| Hardware |
|
101 |
|
|
|
96 |
|
| Third party license, maintenance and professional services |
|
300 |
|
|
|
265 |
|
| Occupancy |
|
35 |
|
|
|
78 |
|
| Travel, telecommunications, supplies, software and equipment |
|
201 |
|
|
|
181 |
|
| Professional fees |
|
49 |
|
|
|
39 |
|
| Other, net |
|
73 |
|
|
|
52 |
|
| Depreciation |
|
92 |
|
|
|
27 |
|
| Amortization of intangible assets |
|
331 |
|
|
|
279 |
|
|
|
2,979 |
|
|
|
2,582 |
|
|
|
|
|
|
|
|
|
| Foreign exchange loss (gain) |
|
11 |
|
|
|
(3 |
) |
| TSS membership liability revaluation charge |
|
52 |
|
|
|
55 |
|
| Finance and other expense (income) |
|
(4 |
) |
|
|
(17 |
) |
| Bargain purchase gain |
|
(45 |
) |
|
|
(69 |
) |
| Finance costs |
|
42 |
|
|
|
26 |
|
|
|
55 |
|
|
|
(8 |
) |
|
|
|
|
| Income before income taxes |
|
456 |
|
|
|
486 |
|
|
|
|
|
| Current income tax expense (recovery) |
|
164 |
|
|
|
127 |
|
| Deferred income tax expense (recovery) |
|
(41 |
) |
|
|
(20 |
) |
| Income tax expense (recovery) |
|
123 |
|
|
|
106 |
|
|
|
|
|
| Net income |
|
333 |
|
|
|
379 |
|
|
|
|
|
| Earnings per share |
|
|
|
| Basic and diluted |
$ |
15.73 |
|
|
$ |
17.91 |
|
|
|
|
|
| CONSTELLATION SOFTWARE INC. |
|
|
|
|
| Consolidated Statements of Comprehensive Income |
|
|
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
|
|
$ |
333 |
|
|
$ |
379 |
|
|
|
|
|
|
|
|
|
|
|
|
| Items that are or may be reclassified subsequently to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation differences from foreign operations |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Deferred income tax recovery (expense) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive (loss) income for the period, net of income tax |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) for the period |
|
$ |
330 |
|
|
$ |
369 |
|
| CONSTELLATION SOFTWARE INC. |
|
|
| Consolidated Statements of Changes in Equity |
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year ended December 31, 2019 |
|
|
|
|
|
|
|
Capital
stock |
Accumulated other
comprehensive (loss) income |
Retained earnings |
Total |
|
|
|
|
|
|
|
|
|
|
Cumulative translation account |
|
|
|
|
|
|
|
| Balance at January 1, 2019 |
$ |
99 |
$ |
(37 |
) |
$ |
804 |
|
$ |
866 |
|
|
|
|
|
|
|
|
| Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
- |
|
- |
|
|
333 |
|
|
333 |
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation differences from |
|
|
|
|
|
foreign operations |
|
- |
|
(4 |
) |
|
- |
|
|
(4 |
) |
|
|
|
|
|
|
|
| Total other comprehensive income (loss) |
|
|
|
|
|
for the period |
|
- |
|
(4 |
) |
|
- |
|
|
(4 |
) |
|
|
|
|
|
|
|
| Total comprehensive income (loss) for the period |
|
- |
|
(4 |
) |
|
333 |
|
|
330 |
|
|
|
|
|
|
|
|
| Transactions with owners, recorded directly in equity |
|
|
|
|
| Dividends to shareholders of the Company |
|
- |
|
- |
|
|
(509 |
) |
|
(509 |
) |
|
|
|
|
|
|
|
| Balance at December 31, 2019 |
$ |
99 |
$ |
(40 |
) |
$ |
628 |
|
$ |
687 |
|
| CONSTELLATION SOFTWARE INC. |
|
|
| Consolidated Statements of Changes in Equity |
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
stock |
Accumulated other
comprehensive (loss) income |
Retained earnings |
Total |
|
|
|
|
|
|
|
|
|
|
Cumulative translation account |
|
|
|
|
|
|
|
| Balance at January 1, 2018 |
$ |
99 |
$ |
(27 |
) |
$ |
532 |
|
$ |
604 |
|
|
|
|
|
|
|
|
| Impact of change in accounting policy |
|
- |
|
- |
|
|
(23 |
) |
|
(23 |
) |
|
|
|
|
|
|
|
| Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
- |
|
- |
|
|
379 |
|
|
379 |
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation differences from |
|
|
|
|
|
foreign operations |
|
- |
|
(10 |
) |
|
- |
|
|
(10 |
) |
|
|
|
|
|
|
|
| Total other comprehensive income for the period |
|
- |
|
(10 |
) |
|
- |
|
|
(10 |
) |
|
|
|
|
|
|
|
| Total comprehensive income for the period |
|
- |
|
(10 |
) |
|
379 |
|
|
369 |
|
|
|
|
|
|
|
|
| Transactions with owners, recorded directly in equity |
|
|
|
|
| Dividends to shareholders of the Company |
|
- |
|
- |
|
|
(85 |
) |
|
(85 |
) |
|
|
|
|
|
|
|
| Balance at December 31, 2018 |
$ |
99 |
$ |
(37 |
) |
$ |
804 |
|
$ |
866 |
|
| CONSTELLATION SOFTWARE INC. |
|
|
|
| Consolidated Statements of Cash Flows |
|
|
|
| (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities: |
|
|
|
|
Net income |
|
|
|
$ |
333 |
|
|
$ |
379 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
92 |
|
|
|
27 |
|
|
|
Amortization of intangible assets |
|
331 |
|
|
|
279 |
|
|
|
TSS membership liability revaluation charge |
|
52 |
|
|
|
55 |
|
|
|
Finance and other expense (income) |
|
(4 |
) |
|
|
(17 |
) |
|
|
Bargain purchase (gain) |
|
(45 |
) |
|
|
(69 |
) |
|
|
Finance costs |
|
|
|
42 |
|
|
|
26 |
|
|
|
Income tax expense (recovery) |
|
123 |
|
|
|
106 |
|
|
|
Foreign exchange loss (gain) |
|
11 |
|
|
|
(3 |
) |
|
Change in non-cash operating assets and liabilities |
|
|
|
|
|
exclusive of effects of business combinations |
|
(28 |
) |
|
|
14 |
|
|
Income taxes paid |
|
(140 |
) |
|
|
(135 |
) |
|
Net cash flows from operating activities |
|
767 |
|
|
|
662 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from (used in) financing activities: |
|
|
|
|
Interest paid on lease obligations |
|
|
(7 |
) |
|
|
- |
|
|
Interest paid on other facilities |
|
|
(31 |
) |
|
|
(24 |
) |
|
Increase (decrease) in CSI facility |
|
|
65 |
|
|
|
- |
|
|
Increase (decrease) in revolving credit under debt facilities without recourse to CSI |
|
5 |
|
|
|
(46 |
) |
|
Proceeds from issuance of term debt under facilities without recourse to CSI |
|
49 |
|
|
|
110 |
|
|
Repayments of term debt under facilities without recourse to CSI |
|
(2 |
) |
|
|
(1 |
) |
|
Credit facility transaction costs |
|
(3 |
) |
|
|
(4 |
) |
|
Payments of lease obligations |
|
|
(51 |
) |
|
|
- |
|
|
Distribution to TSS minority owners |
|
|
(11 |
) |
|
|
- |
|
|
Dividends paid |
|
(509 |
) |
|
|
(85 |
) |
|
Net cash flows from (used in) in financing activities |
|
(496 |
) |
|
|
(49 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from (used in) investing activities: |
|
|
|
|
Acquisition of businesses |
|
(549 |
) |
|
|
(523 |
) |
|
Cash obtained with acquired businesses |
|
|
118 |
|
|
|
118 |
|
|
Post-acquisition settlement payments, net of receipts |
|
(74 |
) |
|
|
(80 |
) |
|
Purchases of other investments |
|
|
(11 |
) |
|
|
(3 |
) |
|
Interest, dividends and other proceeds received |
|
6 |
|
|
|
5 |
|
|
Property and equipment purchased |
|
(34 |
) |
|
|
(25 |
) |
|
Net cash flows from (used in) investing activities |
|
(544 |
) |
|
|
(508 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Effect of foreign currency on |
|
|
|
|
cash and cash equivalents |
|
1 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in cash |
|
(273 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, beginning of period |
|
589 |
|
|
|
489 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash, end of period |
$ |
316 |
|
|
$ |
589 |
|
