TORONTO, ONTARIO (March 4, 2009) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008, and declared a $0.216 per share dividend payable on March 31, 2009 to all common shareholders and class A non-voting shareholders of record at close of business on March 17, 2009. 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, 2008 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.
2008 Highlights:
- Revenue grew 36% compared to 2007. Organic revenue growth was 5% in 2008 versus 1% in 2007
- Adjusted EBITDA increased $23 million or 56% to $64 million as compared to 2007
- Adjusted Net Income increased by 64% to $54 million ($2.57 on a fully diluted per share basis) from $33 million ($1.56 on a fully diluted per share basis) in 2007
- $62 million was deployed on 21 acquisitions and $9 million in holdbacks relating to prior acquisitions was paid
- Dividend declared of $0.216 per share, a 20% increase over 2007
Q4 2008 Highlights:
- Revenue grew 49% compared to Q4 2007. Organic revenue growth was 2% versus 4% in Q4 2007
- Adjusted EBITDA increased $12 million or 111% to $22 million as compared to Q4 2007
- Adjusted Net Income increased by 103% to $19 million ($0.90 on a fully diluted per share basis) from $9 million ($0.44 on a fully diluted per share basis) in Q4 2007
- $2.5 million was deployed on five acquisitions and $6.2 million in holdbacks related to prior acquisitions was paid
- The company’s credit facility was increased from $105 million to $130 million
- A full quarter of results were included for the Asset, Justice, and Education Solutions businesses purchased from MAXIMUS (the “MAJES” acquisition) on September 30, 2008. Revenue, Adjusted EBITDA and Cashflow from Operations for the MAJES businesses were $17 million, $3 million, and ($1) million, respectively
Fourth quarter revenue was $98 million, an increase of 49%, or $32 million, compared to $66 million for the comparable period in 2007. For the 2008 fiscal year, total revenues were $331 million, an increase of 36% over 2007. The increases for both the fourth quarter and the full year compared to the same periods in the prior year, were mainly attributable to growth from acquisitions, as organic growth from our existing business was estimated at approximately 2% for the fourth quarter and 5% for the full year.
Adjusted EBITDA for the fourth quarter was $22 million, a 111% increase compared to the prior year’s fourth quarter Adjusted EBITDA of $11 million. Fourth quarter Adjusted EBITDA per share on a fully diluted basis increased 110% to $1.05 compared to $0.50 for the same period last year. Adjusted EBITDA for the year ended December 31, 2008 was $64 million, an increase of 56% over last year’s Adjusted EBITDA of $41 million for the comparable period. Adjusted EBITDA per share on a fully diluted basis for the year ended December 31, 2008 increased 57% to $3.04, compared to $1.94 for the same period in 2007.
Adjusted Net Income for the fourth quarter was $19 million, compared to the prior year’s fourth quarter Adjusted Net Income of $9 million, an 103% increase. Fourth quarter Adjusted Net Income per share on a fully diluted basis increased 105% to $0.90 compared to $0.44 for the prior year’s fourth quarter. Adjusted Net Income for the year ended December 31, 2008 was $54 million, an increase of 64% over last year’s Adjusted Net Income of $33 million. Adjusted Net Income per share on a fully diluted basis for the twelve month period ended December 31, 2008 increased 65% to $2.57, compared to $1.56 for the same period in 2007.
Net income for the fourth quarter was $4 million compared to the prior year’s fourth quarter net income of $2 million. On a fully diluted per share basis, this translates into net income per share of $0.19 for the fourth quarter of 2008, compared to $0.08 in the same period of 2007. For the year ended December 31, 2008 net income was $15 million or $0.71 per diluted share compared to net income of $11 million or $0.52 per share last year.
The following table displays our revenue by reporting segment and the percentage change for the three and twelve months ended December 31, 2008 compared to the same periods in 2007: