The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three months ended
Q1 2021 Headlines:
- Revenue increased 50% (7% organic growth) to €179.6 million compared to €119.8 million in Q1 2020.
- A €2,456.8 million expense related to the increase in fair value of redeemable preferred securities was incurred in the quarter, €2,442.1 million of which is non-cash related. Fair value of the preferred securities is primarily dependent on the price movement of Topicus’ Subordinate Voting Shares.
- Earnings decreased to a net loss of €2,436.1 million (€52.40 on a diluted per share basis) from net income of €17.5 million (€0.15 on a diluted per share basis) in Q1 2020 primarily resulting from the €2,456.8 million redeemable preferred securities expense.
- On
January 5, 2021 , the Company acquired 100% of the shares ofTopicus.com B.V . fromIjssel B.V . (“Ijssel”). The Company paid cash of €133.6 million to Ijssel. Furthermore, the Company issued 5,842,882 Topicus Coop Preference Units to Ijssel for an initial subscription price of €83.8 million plus an additional subscription amount of €27.6 million which will be paid by Ijssel to the Company inMay 2021 . The Company also issued 5,842,882 Topicus Coop Ordinary Units to Ijssel. The aggregate consideration totalled €217.4 million. - Additional acquisitions were completed for aggregate cash consideration of €13.0 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €0.7 million resulting in total consideration of €13.7 million.
- Cash flows from operations (“CFO”) increased €39.4 million to €159.8 million compared to €120.4 million in Q1 2020 representing an increase of 33%.
- Free cash flow available to shareholders1 (“FCFA2S”) increased €14.8 million to €91.5 million compared to €76.7 million in Q1 2020 representing an increase of 19%.
Total revenue for the quarter ended
On
The Preferred Securities will be recorded at fair value at the end of each reporting period. The change in fair value of the Preferred Securities is recorded as redeemable preferred securities expense (income) in the condensed consolidated interim statements of income. Based on the Preferred Securities conversion right, the value of the Preferred Securities is primarily dependent on the price movement of Topicus’ Subordinate Voting Shares. At
As the threshold for the mandatory conversion or redemption of all Preferred Securities was reached on
Further descriptions of the significant terms and conditions of the Preferred Securities are described in Note 9 to the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three month period ended
Net loss for the quarter ended
For the quarter ended
For the quarter ended
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. The portion of this amount applicable to non-controlling interests is then deducted. 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 | |||||
2021 | 2020 | ||||
(€ in millions, except percentages) | |||||
Net cash flows from operating activities | 159.8 | 120.4 | |||
Adjusted for: | |||||
Interest paid on lease obligations | (0.2 | ) | (0.2 | ) | |
Interest paid on other facilities | (1.5 | ) | (1.4 | ) | |
Credit facility transaction costs | (2.2 | ) | - | ||
Payments of lease obligations | (4.3 | ) | (3.2 | ) | |
Property and equipment purchased | (0.8 | ) | (0.7 | ) | |
Interest and dividends received | - | - | |||
150.7 | 114.9 | ||||
Less amount attributable to | |||||
Non-controlling interests | (59.2 | ) | (38.3 | ) | |
Free cash flow available to shareholders | 91.5 | 76.7 | |||
Due to rounding, certain totals may not foot. |
About
Topicus’ subordinate voting shares are listed on the
About Constellation Software Inc.
Constellation’s common shares are listed on the
For further information:
Chief Financial Officer
(416) 861-9677
info@topicus.com
www.topicus.com
SOURCE:
Condensed Consolidated Interim Statements of Financial Position | ||||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | ||||||
Unaudited | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | 86,278 | 55,635 | 86,592 | |||
Accounts receivable | 71,079 | 46,644 | 55,878 | |||
Unbilled revenue | 22,553 | 12,609 | 11,704 | |||
Inventories | 568 | 375 | 396 | |||
Other assets | 53,900 | 14,461 | 32,905 | |||
234,377 | 129,724 | 187,475 | ||||
Non-current assets: | ||||||
Property and equipment | 15,797 | 8,782 | 8,159 | |||
Right of use assets | 58,742 | 50,517 | 42,795 | |||
Deferred income taxes | 5,035 | 1,946 | 942 | |||
Other assets | 4,908 | 3,956 | 3,614 | |||
Intangible assets | 710,942 | 446,213 | 389,058 | |||
795,424 | 511,415 | 444,567 | ||||
Total assets | 1,029,801 | 641,139 | 632,042 | |||
Liabilities and Members’ Equity | ||||||
Current liabilities: | ||||||
Revolving credit facility and current portion of term loans | 24,625 | 19,482 | - | |||
Redeemable preferred securities | 3,694,452 | - | - | |||
Accounts payable and accrued liabilities | 133,481 | 97,386 | 95,736 | |||
Deferred revenue | 193,158 | 59,721 | 151,372 | |||
Provisions | 1,198 | 1,222 | 1,354 | |||
Acquisition holdback payables | 11,040 | 12,601 | 5,247 | |||
Lease obligations | 15,676 | 13,953 | 8,537 | |||
Income taxes payable | 14,520 | 12,576 | 9,443 | |||
4,088,150 | 216,941 | 271,689 | ||||
Non-current liabilities: | ||||||
Term loans | 96,613 | 32,572 | 32,351 | |||
Deferred income taxes | 139,751 | 79,958 | 69,604 | |||
Acquisition holdback payables | - | 608 | 887 | |||
Lease obligations | 44,194 | 37,154 | 33,598 | |||
Other liabilities | 10,014 | 9,225 | 4,467 | |||
290,573 | 159,518 | 140,907 | ||||
Total liabilities | 4,378,723 | 376,459 | 412,596 | |||
Shareholders’ Equity (Deficiency): | ||||||
Capital stock | 39,412 | 39,412 | 39,412 | |||
Other equity | (991,700 | ) | - | - | ||
Accumulated other comprehensive income (loss) | (899 | ) | (1,409 | ) | (769 | ) |
Retained earnings (deficit) | (1,962,757 | ) | 138,572 | 107,755 | ||
Non-controlling interests | (432,979 | ) | 88,106 | 73,048 | ||
(3,348,921 | ) | 264,680 | 219,446 | |||
Total liabilities and shareholders’ equity | 1,029,801 | 641,139 | 632,042 |
Condensed Consolidated Interim Statements of Income (Loss) | |||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | |||||
Unaudited | |||||
Three months ended | |||||
2021 | 2020 | ||||
Revenue | |||||
License | 4,930 | 3,197 | |||
Professional services | 48,589 | 28,270 | |||
Hardware and other | 1,345 | 1,261 | |||
Maintenance and other recurring | 124,733 | 87,040 | |||
179,596 | 119,769 | ||||
Expenses | |||||
Staff | 98,817 | 60,964 | |||
Hardware | 634 | 749 | |||
Third party license, maintenance and professional services | 15,721 | 10,593 | |||
Occupancy | 1,373 | 862 | |||
Travel, telecommunications, supplies, software and equipment | 4,212 | 3,798 | |||
Professional fees | 2,520 | 1,937 | |||
Other, net | 1,422 | 1,463 | |||
Depreciation | 6,231 | 4,211 | |||
Amortization of intangible assets | 20,411 | 11,772 | |||
151,341 | 96,349 | ||||
Redeemable preferred securities expense (income) | 2,456,796 | - | |||
Finance and other expenses (income) | 3,018 | 1,954 | |||
2,459,814 | 1,954 | ||||
Income before income taxes | (2,431,559 | ) | 21,466 | ||
Current income tax expense (recovery) | 10,363 | 6,665 | |||
Deferred income tax expense (recovery) | (5,788 | ) | (2,690 | ) | |
Income tax expense (recovery) | 4,575 | 3,976 | |||
Net income (loss) | (2,436,134 | ) | 17,490 | ||
Net income (loss) attributable to: | |||||
Equity holders of Topicus | (2,065,123 | ) | 11,668 | ||
Non-controlling interests | (371,011 | ) | 5,822 | ||
Net income (loss) | (2,436,134 | ) | 17,490 | ||
Weighted average shares | |||||
Basic shares outstanding | 39,412,386 | 39,412,386 | |||
Diluted shares outstanding | 129,322,452 | 118,156,055 | |||
Earnings (loss) per common share of Topicus | |||||
Basic | (52.40 | ) | 0.30 | ||
Diluted | (52.40 | ) | 0.15 | ||
Condensed Consolidated Interim Statements of Comprehensive Income (Loss) | |||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | |||||
Unaudited | |||||
Three months ended | |||||
2021 | 2020 | ||||
Net income (loss) | (2,436,134 | ) | 17,490 | ||
Items that are or may be reclassified subsequently to net income: | |||||
Foreign currency translation differences from foreign operations and other | 607 | (439 | ) | ||
Other comprehensive (loss) income for the period, net of income tax | 607 | (439 | ) | ||
Total comprehensive income (loss) for the period | (2,435,528 | ) | 17,051 | ||
Total other comprehensive income (loss) attributable to: | |||||
Equity holders of Topicus | 413 | (293 | ) | ||
Non-controlling interests | 194 | (146 | ) | ||
Total other comprehensive income (loss) | 607 | (439 | ) | ||
Total comprehensive income (loss) attributable to: | |||||
Equity holders of Topicus | (2,064,711 | ) | 11,375 | ||
Non-controlling interests | (370,817 | ) | 5,676 | ||
Total comprehensive income (loss) | (2,435,528 | ) | 17,051 |
Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity (Deficiency) | |||||||||||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | |||||||||||||
Unaudited | |||||||||||||
Three months ended | |||||||||||||
Attributable to equity holders of Topicus | |||||||||||||
Capital Stock | Other equity | Accumulated other comprehensive (loss) income | Retained earnings (Deficit) | Total | Non-controlling interests | Total equity | |||||||
Balance at | 39,412 | - | (1,409 | ) | 138,572 | 176,575 | 88,106 | 264,680 | |||||
Total comprehensive income for the period: | - | ||||||||||||
Net income (loss) | - | - | - | (2,065,123 | ) | (2,065,123 | ) | (371,011 | ) | (2,436,134 | ) | ||
Other comprehensive income (loss) | |||||||||||||
Foreign currency translation differences from | |||||||||||||
foreign operations and other | - | - | 413 | - | 413 | 194 | 607 | ||||||
Total other comprehensive income (loss) | |||||||||||||
for the period | - | - | 413 | - | 413 | 194 | 607 | ||||||
Total comprehensive income (loss) for the period | - | - | 413 | (2,065,123 | ) | (2,064,711 | ) | (370,817 | ) | (2,435,528 | ) | ||
Transactions with owners, recorded directly in equity | |||||||||||||
Issuance of Topicus Coop Ordinary Units to non-controlling interests | - | 9,770 | 127 | - | 9,896 | (9,896 | ) | - | |||||
Net acquisition of non-controlling interest associated with acquisitions and other movements | - | - | (29 | ) | 220 | 191 | 2,602 | 2,793 | |||||
Issuance of redeemable preferred securities | - | (1,001,469 | ) | - | - | (1,001,469 | ) | (124,797 | ) | (1,126,267 | ) | ||
Dividends to shareholders of the Company | - | - | - | (36,425 | ) | (36,425 | ) | (18,175 | ) | (54,600 | ) | ||
Balance at | 39,412 | (991,700 | ) | (899 | ) | (1,962,757 | ) | (2,915,943 | ) | (432,979 | ) | (3,348,921 | ) |
Condensed Consolidated Interim Statement of Changes in Shareholders’ Equity (Deficiency) | |||||||||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | |||||||||||
Unaudited | |||||||||||
Three months ended | |||||||||||
Attributable to equity holders of Topicus | |||||||||||
Capital Stock | Other equity | Accumulated other comprehensive (loss) income | Retained earnings (deficit) | Total | Non-controlling interests | Total equity | |||||
Balance at | 39,412 | - | (477 | ) | 96,087 | 135,022 | 67,372 | 202,395 | |||
Total comprehensive income for the period: | |||||||||||
Net income (loss) | - | - | - | 11,668 | 11,668 | 5,822 | 17,490 | ||||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation differences from | |||||||||||
foreign operations and other | - | - | (293 | ) | - | (293 | ) | (146 | ) | (439 | ) |
Total other comprehensive income (loss) for the period | - | - | (293 | ) | - | (293 | ) | (146 | ) | (439 | ) |
Total comprehensive income (loss) for the period | - | (293 | ) | 11,668 | 11,375 | 5,676 | 17,051 | ||||
Balance at | 39,412 | - | (769 | ) | 107,755 | 146,398 | 73,048 | 219,446 |
Condensed Consolidated Interim Statements of Cash Flows | |||||
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.) | |||||
Unaudited | |||||
Three months ended | |||||
2021 | 2020 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | (2,436,134 | ) | 17,490 | ||
Adjustments for: | |||||
Depreciation | 6,231 | 4,211 | |||
Amortization of intangible assets | 20,411 | 11,772 | |||
Redeemable preferred securities expense (income) | 2,456,796 | - | |||
Finance and other expenses (income) | 3,018 | 1,954 | |||
Income tax expense (recovery) | 4,575 | 3,976 | |||
Change in non-cash operating assets and liabilities | |||||
exclusive of effects of business combinations | 112,914 | 97,470 | |||
Income taxes (paid) received | (8,008 | ) | (16,480 | ) | |
Net cash flows from operating activities | 159,803 | 120,392 | |||
Cash flows from (used in) financing activities: | |||||
Interest paid on lease obligations | (203 | ) | (213 | ) | |
Interest paid on other facilities | (1,550 | ) | (1,418 | ) | |
Increase (decrease) in Revolving credit facility | 5,032 | (50,000 | ) | ||
Proceeds from issuance of term loans | 65,843 | - | |||
Credit facility transaction costs | (2,245 | ) | - | ||
Payments of lease obligations | (4,323 | ) | (3,156 | ) | |
Dividends paid | (54,600 | ) | - | ||
Net cash flows from (used in) in financing activities | 7,954 | (54,787 | ) | ||
Cash flows from (used in) investing activities: | |||||
Acquisition of businesses | (146,648 | ) | (7,058 | ) | |
Cash obtained with acquired businesses | 14,968 | 1,719 | |||
Post-acquisition settlement payments, net of receipts | (4,668 | ) | (1,150 | ) | |
Interest, dividends and other proceeds received | - | 100 | |||
Property and equipment purchased | (766 | ) | (660 | ) | |
Net cash flows from (used in) investing activities | (137,115 | ) | (7,049 | ) | |
Effect of foreign currency on | |||||
cash and cash equivalents | (0 | ) | 0 | ||
Increase (decrease) in cash | 30,643 | 58,556 | |||
Cash, beginning of period | 55,635 | 28,036 | |||
Cash, end of period | 86,278 | 86,592 |
Source:
2021 GlobeNewswire, Inc., source