TORONTO, ONTARIO (May 7, 2008) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the first quarter ended March 31, 2008. Please note that all dollar amounts referred to in this press release are U.S. Dollars unless otherwise stated.
The following press release should be read in conjunction with the unaudited consolidated interim financial statements for the three month period ended March 31, 2008 and the accompanying notes, and with our audited consolidated annual financial statements and our annual MD&A for the year ended December 31, 2007 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.
Q1 2008 Highlights:
- Revenue increased to $73.6 million from $55.9 million in Q1 2007, representing a 32% increase. Organic revenue growth over the same period was 8%
- Adjusted EBITDA increased to $12.5 million or 49% from $8.4 million in Q1 2007
- Adjusted Net Income increased to $11.1 million ($0.52 on a fully diluted per share basis) or 62% from $6.9 million ($0.32 on a fully diluted per share basis) in Q1 2007
- 3 acquisitions were completed in the quarter for net cash consideration of $2.7 million, and holdback related to prior acquisitions of $0.5 million were paid
First quarter revenue was $73.6 million, an increase of 32%, or $17.7 million, compared to $55.9 million for the comparable period in 2007. The increase was largely attributable to growth from acquisitions, as organic growth from our existing business was estimated at approximately 8% for the first quarter.
Adjusted EBITDA for the first quarter was $12.5 million, a 49% increase compared to the prior year’s first quarter Adjusted EBITDA of $8.4 million. First quarter Adjusted EBITDA per share on a fully diluted basis increased 48% to $0.59, compared to $0.40 for the same period last year.
Adjusted Net Income for the first quarter was $11.1 million, compared to the prior year’s first quarter Adjusted Net Income of $6.9 million, a 62% increase. First quarter Adjusted Net Income per share on a fully diluted basis increased 63% to $0.52 compared to $0.32 for the prior year’s first quarter. The method of calculating Adjusted Net Income was modified this quarter. The change was a result of the large increase in “future tax expense (recovery)” in the first quarter. Future tax recovery primarily relates to the amortization of intangible assets. Adjusted Net Income is now defined to exclude the impact of this non-cash amount. Management believes that excluding the impact of future tax provides a more accurate picture of the company’s results as it more closely matches the non cash future tax items with the associated amortization of intangibles. A reconciliation of net income to Adjusted Net Income and a restatement of previously reported Adjusted Net Income amounts are included in this press release.
Net income for the first quarter was $4.3 million compared to the prior year’s first quarter net income of $2.6 million. On a fully diluted per share basis, this translates into net income per share of $0.20 for the first quarter of 2008, compared to $0.12 in the same period of 2007.