TORONTO, ONTARIO (November 3, 2010) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the three and nine months ended September 30, 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 the unaudited consolidated interim financial statements for the three and nine month periods ended September 30, 2010 and the accompanying notes, and with our 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.
Q3 2010 Highlights:
- Revenue grew 52% compared to Q3 2009. Organic revenue growth was negative 3%. Excluding the impact of the Public Transit Solutions (‘PTS’) business acquired in Q4 2009, organic growth was 2% in Q3 2010 compared to 0% in Q3 2009.
- Adjusted EBITDA grew 38% compared to Q3 2009.
- Adjusted Net Income grew 76% compared to Q3 2009.
- Two acquisitions were completed in the quarter for net cash consideration of $4 million, and holdbacks related to prior acquisitions of $3 million were paid.
- Subsequent to September 30, 2010, the Company completed two acquisitions for aggregate cash consideration of $36 million.
Third quarter revenue was $163 million, an increase of 52%, or $56 million, compared to $107 million for the comparable period in 2009. Total revenue for the nine months ended September 30, 2010 was $459 million, an increase of 50% over last year’s revenues of $306 million for the same period.
Constellation acquired PTS 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 2% in Q3 2010 and 3% for the first nine months of 2010 compared to nil organic growth and negative organic growth of 2% for the same periods in 2009, respectively.