TORONTO, ONTARIO (March 3, 2010) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2009, and declared a $0.26 per share dividend payable on March 31, 2010 to all common shareholders and class A non-voting shareholders of record at close of business on March 17, 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 Company’s audited annual Consolidated Financial Statements, prepared in accordance with Canadian GAAP 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.
2009 Highlights:
- Revenue grew 32% compared to 2008. Organic revenue growth was negative 3% in 2009 versus positive 5% in 2008
- Adjusted EBITDA increased $24 million or 37% to $88 million as compared to 2008
- Adjusted Net Income increased by $8 million or 15% to $62 million ($2.95 on a fully diluted per share basis) from $54 million ($2.57 on a fully diluted per share basis) in 2008
- $38 million was deployed on 13 acquisitions and $4 million in holdbacks relating to prior acquisitions was paid
- Dividend declared of $0.26 per share, a 20% increase over 2008
Q4 2009 Highlights:
- Revenue grew 34% compared to Q4 2008. Organic revenue growth was negative 4% in Q4 2009 versus positive 2% in Q4 2008
- Adjusted EBITDA was $22 million, consistent with Q4 2008
- Adjusted Net Income declined by 23% to $15 million ($0.69 on a fully diluted per share basis) from $19 million ($0.90 on a fully diluted per share basis) in Q4 2008
- The company’s credit facility was increased from $130 million to $160 million
- We acquired the Public Transit Solutions (‘PTS’) business on November 2, 2009. Revenue,
Adjusted EBITDA and Cash flow from Operations for the PTS business were $17 million, ($1.3) million, and $6.6 million, respectively.
Fourth quarter 2009 revenue was $132 million, an increase of 34%, or $34 million, compared to $98 million for the comparable period in 2008. For the 2009 fiscal year, total revenues were $438 million, an increase of 32% over 2008. 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 negative 4% for the fourth quarter and negative 3% for the full year.
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 Q4 2009 and was flat for 2009. Excluding PTS, organic growth for the Public Sector was 7% in Q4 2009 and 5% for 2009.