TORONTO, ONTARIO (March 5, 2008) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2007, and declared a $0.18 per share dividend payable on March 31, 2007 to all common shareholders and class A non-voting shareholders of record at close of business on March 19, 2007. 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 Company’s audited annual Consolidated Financial Statements, prepared in accordance with Canadian GAAP 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.
- Revenue grew 15% compared to 2006
- Adjusted EBITDA increased $10.3 million or 33% as compared to 2006
- Adjusted Net Income increased by 29% to $33.5 million ($1.58 on a per share basis) from $26.0 million ($1.23 on a per share basis) in 2006
- Declared a dividend of $0.18 per share, a 20% increase over 2006
- $52 million in cash was deployed on fifteen acquisitions
Q4 2007 Highlights:
- Revenue grew 23% compared to Q4 2006. Organic revenue growth over the same period was 4%
- $30 million in cash was deployed on seven acquisitions in Q4
- Adjusted EBITDA increased $2.1 million or 26% as compared to Q4 2006
- Adjusted Net Income in Q4 2007 increased slightly to $9.1 million ($0.43 on a per share basis) from $9.0 million in Q4 2006
- Existing credit facility replaced with new $50 million facility
Fourth quarter revenue was $66.1 million, an increase of 23%, or $12.6 million, compared to $53.5 million for the comparable period in 2006. For the 2007 fiscal year, total revenues were $243 million, an increase of 15% over 2006. The increases for both the fourth quarter and the full year compared to the same periods in the prior year, were largely attributable to growth from acquisitions, as organic growth from our existing business was estimated at approximately 4% for the fourth quarter and 1% for the full year.
Adjusted EBITDA for the fourth quarter was $10.5 million, a 26% increase compared to the prior year’s fourth quarter Adjusted EBITDA of $8.4 million. Fourth quarter Adjusted EBITDA per share on a fully diluted basis increased 25% to $0.50, compared to $0.40 for the same period last year. Adjusted EBITDA for the year ended December 31, 2007 was $41.2 million, an increase of 33% over last year’s Adjusted EBITDA of $30.8 million for the comparable period. Adjusted EBITDA per share on a fully diluted basis for the twelve month period ending December 31, 2007 increased 33% to $1.94, compared to $1.46 for the same period in 2006.
Adjusted Net Income for the fourth quarter was $9.1 million, compared to the prior year’s fourth quarter Adjusted Net Income of $9.0 million, a 1% increase. Fourth quarter Adjusted Net Income per share on a fully diluted basis increased 2% to $0.43 compared to $0.42 for the prior year’s fourth quarter. Adjusted Net Income for the twelve month period ended December 31, 2007 was $33.5 million, an increase of 29% over last year’s Adjusted Net Income of $26.0 million. Adjusted Net Income per share on a fully diluted basis for the twelve month period ended December 31, 2007 increased 29% to $1.58, compared to $1.23 for the same period in 2006.
Net income for the fourth quarter was $1.6 million compared to the prior year’s fourth quarter net income of $3.8 million. On a fully diluted per share basis, this translates into net income per share of $0.08 for the fourth quarter of 2007, compared to $0.18 in the same period of 2006. For the twelve months ended December 31, 2007 net income was $11.1 million or $0.52 per fully diluted share compared to a net loss of $1.2millionor$0.06persharelastyear. Aspreviouslynoted,thereasonforthenetlossinthetwelvemonths ended 2006 was the $10.1 million charge to net income caused by the appreciation in common shares eligible for redemption (“ACSER”). ACSER was a non-cash expense which occurred during the first quarter of 2006 and will not be repeated now that we have completed our initial public offering.