The following press release should be read in conjunction with the Annual Consolidated Financial Statements of
Our board continues to be humbled by the Company’s employees who are embracing the continued disruption caused by COVID-19, as they support each other and focus on creating value and stronger relationships with our customers.
Q4 2020 Headlines:
- Revenue grew 18% (3% organic growth) to €137.4 million compared to €116.9 million in Q4 2019.
- Net income increased 15% to €12.9 million (€0.22 on a diluted per unit basis) from €11.2 million (€0.19 on a diluted per unit basis) in Q4 2019.
- A number of acquisitions were completed for aggregate cash consideration of €39.0 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €7.0 million resulting in total consideration of €46.0 million.
- Cash flows from operations (“CFO”) were €30.3 million, an increase of 59%, or €11.2 million, compared to €19.1 million for the comparable period in 2019.
- Free cash flow available to shareholders1 (“FCFA2S”) increased €11.4 million to €23.9 million compared to €12.5 million for the same period in 2019.
2020 Headlines:
- Revenue grew 18% (2% organic growth) to €494.0 million compared to €417.4 million in 2019.
- Net income increased 37% to €63.7 million (€1.08 on a diluted per unit basis) from €46.5 million (€0.76 on a diluted per unit basis) in 2019.
- A number of acquisitions were completed for aggregate cash consideration of €85.4 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €15.8 million resulting in total consideration of €101.2 million.
- Cash flows from operations (“CFO”) were €151.9 million, an increase of 25%, or €30.5 million, compared to €121.4 million for the comparable period in 2019.
- Free cash flow available to shareholders1 (“FCFA2S”) increased €26.7 million to €130.1 million compared to €103.4 million for the same period in 2019.
- See Non-IFRS measures.
Total revenue for the quarter ended
Net income for the quarter ended
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Subsequent Events
On
On
The Coop now operates, together with
As at
Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Topicus or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Topicus assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
Non-IFRS Measures
Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, and property and equipment purchased, and includes interest and dividends received. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ hurdle rate.
FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.
The following table reconciles FCFA2S to net cash flows from operating activities:
Three months ended | Year ended | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
(€ in millions, except percentages) | (€ in millions, except percentages) | ||||||||||||
Net cash flows from operating activities | 30.3 | 19.1 | 151.9 | 121.4 | |||||||||
Adjusted for: | |||||||||||||
Interest paid on lease obligations | (0.3 | ) | (0.2 | ) | (1.0 | ) | (0.8 | ) | |||||
Interest paid on other facilities | (1.2 | ) | (0.7 | ) | (4.6 | ) | (2.5 | ) | |||||
Credit facility transaction costs | - | (1.8 | ) | - | (1.8 | ) | |||||||
Payments of lease obligations | (4.3 | ) | (3.3 | ) | (13.8 | ) | (10.4 | ) | |||||
Property and equipment purchased | (0.6 | ) | (0.6 | ) | (2.4 | ) | (2.6 | ) | |||||
Free cash flow available to shareholders | 23.9 | 12.5 | 130.1 | 103.4 | |||||||||
Due to rounding, certain totals may not foot. | |||||||||||||
About
Topicus’ subordinate voting shares are listed on the
About
Constellation's common shares are listed on the
For further information:
Chief Financial Officer
(416) 861-9677
info@topicus.com
www.topicus.com
SOURCE:
Constellation Software Netherlands Holding Coöperatief U.A. | |||||
Consolidated Statements of Financial Position | |||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | |||||
Assets | |||||
Current assets: | |||||
Cash | 55,635 | 28,036 | |||
Accounts receivable | 46,644 | 42,743 | |||
Unbilled revenue | 12,609 | 9,571 | |||
Inventories | 375 | 400 | |||
Other assets | 14,461 | 12,551 | |||
129,724 | 93,302 | ||||
Non-current assets: | |||||
Property and equipment | 8,782 | 8,575 | |||
Right of use assets | 50,517 | 42,635 | |||
Deferred income taxes | 1,946 | 1,170 | |||
Other assets | 3,956 | 4,078 | |||
Intangible assets | 446,213 | 393,783 | |||
511,415 | 450,242 | ||||
Total assets | 641,139 | 543,543 | |||
Liabilities and Members' Equity | |||||
Current liabilities: | |||||
Revolving credit facility | 19,482 | 49,169 | |||
Accounts payable and accrued liabilities | 97,386 | 84,979 | |||
Deferred revenue | 59,721 | 43,795 | |||
Provisions | 1,222 | 2,042 | |||
Acquisition holdback payables | 12,601 | 5,462 | |||
Lease obligations | 13,953 | 11,549 | |||
Income taxes payable | 12,576 | 3,580 | |||
216,941 | 200,576 | ||||
Non-current liabilities: | |||||
Term loan | 32,572 | 32,274 | |||
Deferred income taxes | 79,958 | 71,525 | |||
Acquisition holdback payables | 608 | 1,012 | |||
Lease obligations | 37,154 | 30,483 | |||
Other liabilities | 9,225 | 5,279 | |||
159,518 | 140,572 | ||||
Total liabilities | 376,459 | 341,148 | |||
Members' equity: | |||||
Ordinary units | 59,078 | 59,078 | |||
Accumulated other comprehensive income (loss) | (2,113 | ) | (714 | ) | |
Retained earnings | 207,715 | 144,031 | |||
264,681 | 202,395 | ||||
Total liabilities and members' equity | 641,139 | 543,543 |
Constellation Software Netherlands Holding Coöperatief U.A. | ||||||
Consolidated Statements of Income | ||||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | ||||||
Years ended | ||||||
2020 | 2019 | |||||
Revenue | ||||||
License | 14,395 | 8,068 | ||||
Professional services | 119,522 | 111,915 | ||||
Hardware and other | 6,192 | 4,677 | ||||
Maintenance and other recurring | 353,877 | 292,740 | ||||
493,986 | 417,399 | |||||
Expenses | ||||||
Staff | 254,694 | 217,197 | ||||
Hardware | 2,986 | 3,193 | ||||
Third party license, maintenance and professional services | 45,515 | 39,962 | ||||
Occupancy | 3,298 | 3,156 | ||||
Travel, telecommunications, supplies, software and equipment | 12,888 | 14,643 | ||||
Professional fees | 9,485 | 7,006 | ||||
Other, net | 4,675 | 7,546 | ||||
Depreciation | 18,703 | 15,210 | ||||
Amortization of intangible assets | 50,381 | 46,301 | ||||
402,626 | 354,213 | |||||
Finance costs and other | 6,347 | 4,480 | ||||
6,347 | 4,480 | |||||
Income before income taxes | 85,013 | 58,707 | ||||
Current income tax expense (recovery) | 28,961 | 20,555 | ||||
Deferred income tax expense (recovery) | (7,632 | ) | (8,314 | ) | ||
Income tax expense (recovery) | 21,329 | 12,241 | ||||
Net income (loss) | 63,684 | 46,466 | ||||
Weighted average units | ||||||
Basic units outstanding | 59,078,027 | 59,078,027 | ||||
Diluted units outstanding | 59,078,027 | 61,438,835 | ||||
Earnings per unit | ||||||
Basic | 1.08 | 0.79 | ||||
Diluted | 1.08 | 0.76 | ||||
Constellation Software Netherlands Holding Coöperatief U.A. | |||||
Consolidated Statements of Comprehensive Income | |||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | |||||
Years ended | |||||
2020 | 2019 | ||||
Net income | 63,684 | 46,466 | |||
Items that are or may be reclassified subsequently to net income: | |||||
Foreign currency translation differences from foreign operations and other | (1,398 | ) | (207 | ) | |
Other comprehensive (loss) income for the period, net of income tax | (1,398 | ) | (207 | ) | |
Total comprehensive income (loss) for the period | 62,285 | 46,258 |
Constellation Software Netherlands Holding Coöperatief U.A. | ||||||
Consolidated Statement of Changes in Members' Equity | ||||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | ||||||
Year ended | ||||||
Ordinary units | Accumulated other comprehensive (loss) income | Retained earnings | Total | |||
Cumulative translation account and other | ||||||
Balance at | 59,078 | (714 | ) | 144,031 | 202,395 | |
Total comprehensive income for the period: | ||||||
Net income | - | - | 63,684 | 63,684 | ||
Other comprehensive income (loss) | ||||||
Foreign currency translation differences from | ||||||
foreign operations and other | - | (1,398 | ) | - | (1,398 | ) |
Total other comprehensive income (loss) | ||||||
for the period | - | (1,398 | ) | - | (1,398 | ) |
Total comprehensive income (loss) for the period | - | (1,398 | ) | 63,684 | 62,285 | |
Balance at | 59,078 | (2,113 | ) | 207,715 | 264,681 |
Constellation Software Netherlands Holding Coöperatief U.A. | ||||||
Consolidated Statement of Changes in Members' Equity | ||||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | ||||||
Year ended | ||||||
Ordinary Units | Accumulated other comprehensive (loss) income | Retained earnings | Total | |||
Cumulative translation account and other | ||||||
Balance at | 59,078 | (507 | ) | 97,236 | 155,806 | |
Total comprehensive income for the period: | ||||||
Net income | - | - | 46,466 | 46,466 | ||
Other comprehensive income (loss) | ||||||
Foreign currency translation differences from | ||||||
foreign operations and other | - | (207 | ) | - | (207 | ) |
Total other comprehensive income (loss) for the period | - | (207 | ) | - | (207 | ) |
Total comprehensive income (loss) for the period | - | (207 | ) | 46,466 | 46,258 | |
Capital contribution | 330 | 330 | ||||
Balance at | 59,078 | (714 | ) | 144,031 | 202,395 |
Constellation Software Netherlands Holding Coöperatief U.A. | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands of euros, except per unit amounts. Due to rounding, numbers presented may not foot.) | |||||||
Years ended | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | 63,684 | 46,466 | |||||
Adjustments for: | |||||||
Depreciation | 18,703 | 15,210 | |||||
Amortization of intangible assets | 50,381 | 46,301 | |||||
Finance costs and other | 6,347 | 4,480 | |||||
Income tax expense (recovery) | 21,329 | 12,241 | |||||
Change in non-cash operating assets and liabilities | |||||||
exclusive of effects of business combinations (note 24) | 11,209 | 8,290 | |||||
Income taxes (paid) received | (19,787 | ) | (11,620 | ) | |||
Net cash flows from operating activities | 151,866 | 121,366 | |||||
Cash flows from (used in) financing activities: | |||||||
Interest paid on lease obligations | (952 | ) | (777 | ) | |||
Interest paid on other facilities | (4,643 | ) | (2,450 | ) | |||
Increase (decrease) in Revolving credit facility | (30,000 | ) | 5,000 | ||||
Proceeds from issuance of term loan | - | 34,000 | |||||
Repayments of other debt facilities | - | (749 | ) | ||||
Credit facility transaction costs | - | (1,775 | ) | ||||
Payments of lease obligations | (13,776 | ) | (10,389 | ) | |||
Repayment of preferred units classified as a liability | - | (9,723 | ) | ||||
Repayment of unitholder loans | (647 | ) | (19,487 | ) | |||
Net cash flows from (used in) in financing activities | (50,018 | ) | (6,350 | ) | |||
Cash flows from (used in) investing activities: | |||||||
Acquisition of businesses (note 4) | (85,390 | ) | (114,876 | ) | |||
Cash obtained with acquired businesses (note 4) | 19,690 | 21,737 | |||||
Post-acquisition settlement payments, net of receipts | (7,011 | ) | (5,787 | ) | |||
Purchases of other investments | - | (480 | ) | ||||
Interest, dividends and other proceeds received | 870 | - | |||||
Property and equipment purchased | (2,408 | ) | (2,565 | ) | |||
Net cash flows from (used in) investing activities | (74,249 | ) | (101,970 | ) | |||
Effect of foreign currency on | |||||||
cash and cash equivalents | 0 | 0 | |||||
Increase (decrease) in cash | 27,599 | 13,046 | |||||
Cash, beginning of period | 28,036 | 14,990 | |||||
Cash, end of period | 55,635 | 28,036 |
Source:
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