TORONTO, ONTARIO (May 5, 2010) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the first quarter ended March 31, 2010. 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 our unaudited consolidated interim financial statements for the three month period ended March 31, 2010 and the accompanying notes, and with our audited annual Consolidated Financial Statements and our annual MD&A for the year ended December 31, 2009 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 2010 Highlights:
- Revenue grew 48% compared to Q1 2009. Organic revenue growth was negative 6% in both Q1 2010 and in Q1 2009.
- Adjusted EBITDA grew 16% compared to Q1 2009
- Adjusted Net Income grew by 11% compared to Q1 2009
- $15 million was deployed on five acquisitions and $1 million in holdbacks related to prior acquisitions was paid
First quarter 2010 revenue was $144 million, an increase of 48%, or $47 million, compared to $97 million for the comparable period in 2009. The increase for the first quarter compared to the same period in the prior year was attributable to growth from acquisitions, as organic growth from our existing business was estimated at approximately negative 6%.
Constellation acquired the PTS business from Continental Automotive AG (‘Continental’) on November 2, 2009. Given the substantial amount of non-recurring revenue historically earned by PTS, gross revenue from PTS has fluctuated significantly in the past and may continue to do so in the future. Constellation expects revenue from PTS to decline significantly in the twelve months following acquisition compared to revenue in the twelve months preceding acquisition. Excluding PTS, organic growth for Constellation was 3% in Q1.
The following table provides a summary of the impact of PTS on Constellation’s organic revenue growth: