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Constellation Software Inc. Announces Results for the Third Quarter Ended September 30, 2011

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TORONTO, ONTARIO (November 2, 2011) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the three and nine months ended September 30, 2011. 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 Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2011 and the accompanying notes, and with our annual Consolidated Financial Statements and our annual MD&A for the year ended December 31, 2010 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 2011 Highlights:

  • Revenue grew 24% compared to Q3 2010. Organic revenue growth was 11% in Q3 2011 compared to negative 3% in Q3 2010.
  • Adjusted EBITDA grew 40% compared to Q3 2010.
  • Adjusted EBITDA margin was 22% in Q3 2011 compared to 19% in Q3 2010.
  • Adjusted net income grew 76% compared to Q3 2010.
  • Two acquisitions were completed in the quarter for net cash consideration of $2 million.
  • Subsequent to September 30, 2011, the Company completed three acquisitions for aggregate cash consideration of $2.6 million.

Total revenue for the quarter ended September 30, 2011 was $202 million, an increase of 24%, or $38 million, compared to $164 million for the comparable period in 2010. For the first nine months of 2011 total revenues were $575 million, an increase of 24%, or $113 million, compared to $462 million for the comparable period in 2010.

Constellation acquired the Public Transit Solutions business (‘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 will continue to do so in the future. As well, a number of acquired contracts were recorded at their estimated fair value as of the date of acquisition. Under this treatment, excess profits or costs relative to estimated normalized profitability are recorded as acquired contract assets or liabilities and amortized against revenues over the remaining life of the contract. As a result, the revenue and costs of these contracts reflected through profit or loss will differ from the revenue and costs that would have been recognized under normal course percentage of completion contract accounting. As such, management has chosen to provide supplemental organic growth disclosure to provide greater clarity regarding the impact of PTS on Constellation’s consolidated financial results. Excluding PTS, organic growth for Constellation was 6% in Q3 2011 and 6% for the nine months ended September 30, 2011.

 

 

November 2nd 2011

November 02, 2011