Constellation Software : Q1 2021 Financial Statements

Condensed Consolidated Interim Financial Statements (In U.S. dollars)

CONSTELLATION

SOFTWARE INC.

For the three months ended March 31, 2021 and 2020 Unaudited

CONSTELLATION SOFTWARE INC.

Consolidated Statements of Financial Position

(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.) Unaudited

			March 31, 2021		December 31, 2020		March 31, 2020
Assets
Current assets:
	Cash	$	932	$	758	$	364
	Accounts receivable		518		483		455
	Unbilled revenue		128		98		104
	Inventories		27		27		32
	Other assets (note 5)		288		219		209
			1,892		1,585		1,163
Non-current assets:
	Property and equipment		92		86		78
	Right of use assets		266		251		233
	Deferred income taxes		57		52		46
	Other assets (note 5)		80		75		70
	Intangible assets (note 6)		2,759		2,325		1,987
			3,254		2,790		2,414
Total assets	$	5,147	$	4,375	$	3,577
Liabilities and Shareholders' Equity
Current liabilities:
	Debt with recourse to Constellation Software Inc. (note 7)	$	122	$	113	$	90
	Debt without recourse to Constellation Software Inc. (note 8)		34		28		2
	Redeemable preferred securities (note 9)		390		-		-
	Accounts payable and accrued liabilities		637		666		453
	Dividends payable (note 12)		21		21		21
	Deferred revenue		1,296		962		1,035
	Provisions (note 10)		15		12		10
	Acquisition holdback payables		78		85		78
	Lease obligations		77		74		59
	Income taxes payable (note 11)		91		78		60
			2,761		2,040		1,809
Non-current liabilities:
	Debt with recourse to Constellation Software Inc. (note 7)		527		421		348
	Debt without recourse to Constellation Software Inc. (note 8)		271		199		143
	Deferred income taxes (note 11)		371		285		250
	Acquisition holdback payables		31		37		30
	Lease obligations		214		201		191
	Other liabilities (note 5)		139		146		87
			1,554		1,288		1,049
Total liabilities		4,315		3,328		2,858
Shareholders' equity (note 12):
	Capital stock		99		99		99
	Other equity		(165)		-		-
	Accumulated other comprehensive income (loss)		(67)		(31)		(70)
	Retained earnings		950		980		690
	Non-controlling interests (notes 1 and 18)		15		-		-
			832		1,048		719
Subsequent events (notes 12 and 19)
Total liabilities and shareholders' equity	$	5,147	$	4,375	$	3,577

See accompanying notes to the condensed consolidated interim financial statements.

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CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statements of Income

(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited

		Three months ended March 31,
		2021		2020
Revenue
License	$	66	$	57
Professional services		237		178
Hardware and other		39		42
Maintenance and other recurring		834		676
		1,176		953
Expenses
Staff		641		510
Hardware		22		23
Third party license, maintenance and professional services		96		79
Occupancy		9		9
Travel, telecommunications, supplies, software and equipment		39		51
Professional fees		15		14
Other, net		5		5
Depreciation		29		25
Amortization of intangible assets (note 6)		118		94
		975		810
Foreign exchange loss (gain)		(13)		(6)
IRGA/TSS Membership liability revaluation charge (note 7)		61		18
Finance and other expense (income) (note 13)		(2)		(0)
Impairment of intangible and other non-financial assets (note 6)		3		5
Redeemable preferred securities expense (income) (note 9)		263		-
Finance costs (note 13)		15		11
		327		28
Income (loss) before income taxes		(126)		115
Current income tax expense (recovery)		64		44
Deferred income tax expense (recovery)		(14)		(12)
Income tax expense (recovery)		49		33
Net income (loss)		(175)		83
Net income (loss) attributable to:
Equity holders of Constellation Software Inc. (notes 1 and 18)		(9)		83
Non-controlling interests (notes 1 and 18)		(166)		-
Net income (loss)		(175)		83
Earnings per common share of Constellation Software Inc.
Basic and diluted (note 14)	$	(0.41)	$	3.91

See accompanying notes to the condensed consolidated interim financial statements.

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CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited

		Three months ended March 31,
		2021		2020
Net income (loss)	$	(175)	$	83
Items that are or may be reclassified subsequently to net income:
Foreign currency translation differences from foreign operations and other		(23)		(30)
Other comprehensive income (loss) for the period, net of income tax		(23)		(30)
Total comprehensive income (loss) for the period	$	(198)	$	53
Total other comprehensive income (loss) attributable to:
Equity holders of Constellation Software Inc. (notes 1 and 18)		(17)		(30)
Non-controlling interests (notes 1 and 18)		(6)		-
Total other comprehensive income (loss)	$	(23)	$	(30)
Total comprehensive income (loss) attributable to:
Equity holders of Constellation Software Inc. (notes 1 and 18)		(26)		53
Non-controlling interests (notes 1 and 18)		(172)		-
Total comprehensive income (loss)	$	(198)	$	53

See accompanying notes to the condensed consolidated interim financial statements.

3

CONSTELLATION SOFTWARE INC.

Condensed Consolidated Interim Statement of Changes in Equity

(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited

Three months ended March 31, 2021

				Equity Attributable to Shareholders of CSI				Non-		Total equity
	Capital stock		Other equity		Accumulated		Retained		Total
						other		earnings				controlling
					comprehensive						interests
						income (loss)
Balance at January 1, 2021	$	99	$	-	$	(31)	$	980	$	1,048		-	$	1,048
Total comprehensive income for the period:
Net income (loss)		-		-		-		(9)		(9)		(166)		(175)
Other comprehensive income (loss)
Foreign currency translation differences from
foreign operations and other		-		-		(17)		-		(17)		(6)		(23)
Total other comprehensive income (loss)
for the period		-		-		(17)		-		(17)		(6)		(23)
Total comprehensive income (loss) for the period		-		-		(17)		(9)		(26)		(172)		(198)
Transactions with owners, recorded directly in equity
Special dividend of Topicus Subordinated Voting Shares (note 1
and 12)		-		(141)		(16)		-		(157)		157		-
Issuance of Topicus Coop Ordinary Units to non-controlling
interests (note 4)		-		(21)		(2)		-		(23)		23		-
Net acquisition of non-controlling interest associated with
acquisitions and other movements		-		(3)		-		0		(3)		6		3
Dividends to shareholders of the Company (note 12)		-				-		(21)		(21)		-		(21)
Balance at March 31, 2021	$	99	$	(165)	$	(67)	$	950	$	817	$	15	$	832

See accompanying notes to the condensed consolidated interim financial statements.

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