(MENAFN- GlobeNewsWire - Nasdaq) TORONTO, March 07, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the“Company”) today announced its financial results for the fourth quarter and year ended December 31, 2024 and declared a $1.00 per share dividend payable on April 15, 2025 to all common shareholders of record at close of business on March 28, 2025. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.

The following press release should be read in conjunction with the Company's annual Consolidated Financial Statements, prepared in accordance with IFRS Accounting Standards (“IFRS”) and our annual Management's Discussion and Analysis for the year ended December 31, 2024, which can be found on SEDAR+ at and on the Company's website . Additional information about the Company is also available on SEDAR+ at .

Q4 2024 Headlines:

• Revenue grew 16% (1% organic growth, 2% after adjusting for changes in foreign exchange rates) to $2,703 million compared to $2,323 million in Q4 2023.
• Net income attributable to common shareholders increased 102% to $285 million ($13.44 on a diluted per share basis) from $141 million ($6.65 on a diluted per share basis) in Q4 2023.
• A number of acquisitions were completed for aggregate cash consideration of $475 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $144 million resulting in total consideration of $620 million.
• Cash flows from operations (“CFO”) was $678 million, an increase of 33%, or $167 million, compared to $511 million for the comparable period in 2023.
• Free cash flow available to shareholders¹ (“FCFA2S”) was $482 million, an increase of 48%, or $157 million compared to $325 million for the comparable period in 2023.
  

2024 Headlines:

• Revenue grew 20% (2% organic growth, 2% after adjusting for changes in foreign exchange rates) to $10,066 million compared to $8,407 million in 2023.
• Net income attributable to common shareholders increased 29% to $731 million ($34.48 on a diluted per share basis) from $565 million ($26.67 on a diluted per share basis) in 2023.
• A number of acquisitions were completed for total consideration of $1,792 million including holdbacks and contingent consideration.
• Cash flows from operations (“CFO”) was $2,196 million, an increase of 23%, or $417 million, compared to $1,779 million for the comparable period in 2023.
• Free cash flow available to shareholders (“FCFA2S”) was $1,472 million, an increase of 27%, or $312 million, compared to $1,160 million for the comparable period in 2023.
  

Total revenue for the quarter ended December 31, 2024 was $2,703 million, an increase of 16%, or $380 million, compared to $2,323 million for the comparable period in 2023. For the year ended December 31, 2024 total revenues were $10,066 million, an increase of 20%, or $1,660 million, compared to $8,407 million for the comparable period in 2023. The increase for both the three and twelve month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 1% and 2% respectively, 2% for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income attributable to common shareholders of CSI for the quarter ended December 31, 2024 was $285 million compared to $141 million for the same period in 2023. On a per share basis this translated into a net income per diluted share of $13.44 in the quarter ended December 31, 2024 compared to net income per diluted share of $6.65 for the same period in 2023. For the year ended December 31, 2024, net income attributable to common shareholders of CSI was $731 million or $34.48 per diluted share compared to $565 million or $26.67 per diluted share for the same period in 2023.

For the quarter ended December 31, 2024, CFO increased $167 million to $678 million compared to $511 million for the same period in 2023 representing an increase of 33%. For the year ended December 31, 2024, CFO increased $417 million to $2,196 million compared to $1,779 million during the same period in 2023, representing an increase of 23%.

For the quarter ended December 31, 2024, FCFA2S increased $157 million to $482 million compared to $325 million for the same period in 2023 representing an increase of 48%. For the year ended December 31, 2024, FCFA2S increased $312 million to $1,472 million compared to $1,160 million for the same period in 2023 representing an increase of 27%.

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 Constellation 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 Constellation 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 debt, debt transaction costs, payments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our 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 December 31,				Year ended December 31,
			2024			2023					2024			2023
		($ in millions)		($ in millions)
Net cash flows from operating activities			678			511					2,196			1,779
Adjusted for:
Interest paid on lease obligations			(4	)		(3	)				(14	)		(11	)
Interest paid on debt			(37	)		(37	)				(178	)		(133	)
Proceeds from sale of interest rate cap			-			-					-			5
Debt transaction costs			(3	)		(2	)				(16	)		(5	)
Payments of lease obligations			(29	)		(31	)				(118	)		(109	)
IRGA / TSS membership liability revaluation charge			(61	)		(58	)				(183	)		(152	)
Property and equipment purchased			(25	)		(13	)				(67	)		(42	)
Interest and dividends received			9			2					33			3
			527			369					1,653			1,333
Less amount attributable to
Non-controlling interests			(45	)		(44	)				(180	)		(173	)
Free cash flow available to shareholders			482			325					1,472			1,160
Due to rounding, certain totals may not foot.

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.

For further information:

Jamal Baksh
Chief Financial Officer
(416) 861-9677
...

S OURCE: CONSTELLATION SOFTWARE INC.

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.)
				December 31, 2024			December 31, 2023
Assets
Current assets:
	Cash	$	1,980		$	1,284
	Accounts receivable		1,292			1,138
	Unbilled revenue		369			325
	Inventories		56			51
	Other assets		597			541
				4,294			3,339
Non-current assets:
	Property and equipment		223			142
	Right of use assets		328			312
	Deferred income taxes		219			108
	Other assets		329			286
	Intangible assets		7,470			6,675
				8,569			7,523
Total assets	$	12,863		$	10,862
Liabilities and Shareholders' Equity
Current liabilities:
	Debt with recourse to Constellation Software Inc.	$	303		$	861
	Debt without recourse to Constellation Software Inc.		319			225
	Redeemable preferred securities		-			814
	Accounts payable and accrued liabilities		1,589			1,427
	Dividends payable		21			21
	Deferred revenue		1,967			1,757
	Provisions		22			9
	Acquisition holdback payables		225			168
	Lease obligations		115			112
	Income taxes payable		111			89
				4,672			5,483
Non-current liabilities:
	Debt with recourse to Constellation Software Inc.		1,855			863
	Debt without recourse to Constellation Software Inc.		1,689			1,385
	Deferred income taxes		673			604
	Acquisition holdback payables		134			88
	Lease obligations		252			236
	Other liabilities		300			242
				4,903			3,418
Total liabilities		9,575			8,901
Shareholders' equity:
	Capital stock		99			99
	Accumulated other comprehensive income (loss)		(224	)		(99	)
	Retained earnings		2,919			1,876
	Non-controlling interests		493			85
				3,288			1,961
Total liabilities and shareholders' equity	$	12,863		$	10,862

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
		Years ended December 31,
			2024			2023
Revenue
License	$	393		$	386
Professional services		1,975			1,766
Hardware and other		302			268
Maintenance and other recurring		7,396			5,985
			10,066			8,407
Expenses
Staff		5,322			4,493
Hardware		169			158
Third party license, maintenance and professional services		960			810
Occupancy		64			51
Travel, telecommunications, supplies, software and equipment		502			398
Professional fees		178			151
Other, net		182			138
Depreciation		182			162
Amortization of intangible assets		1,044			859
			8,602			7,219
Foreign exchange loss (gain)		(26	)		43
IRGA/TSS Membership liability revaluation charge		183			152
Finance and other expense (income)		(60	)		(34	)
Bargain purchase gain		(10	)		(54	)
Impairment of intangible and other non-financial assets		28			26
Redeemable preferred securities expense (income)		58			597
Finance costs		280			192
			452			922
Income (loss) before income taxes		1,011			265
Current income tax expense (recovery)		525			370
Deferred income tax expense (recovery)		(281	)		(166	)
Income tax expense (recovery)		244			204
Net income (loss)		767			62
Net income (loss) attributable to:
Common shareholders of Constellation Software Inc.		731			565
Non-controlling interests		37			(503	)
Net income (loss)		767			62
Earnings per common share of Constellation Software Inc.
	Basic and diluted	$	34.48		$	26.67

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Comprehensive Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
	Years ended December 31,
		2024				2023
Net income (loss)	$	767			$	62
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other, net of tax		(135	)			51
Other comprehensive income (loss), net of income tax		(135	)			51
Total comprehensive income (loss)	$	633			$	113
Total other comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		(119	)			38
Non-controlling interests		(16	)			13
Total other comprehensive income (loss)	$	(135	)		$	51
Total comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		612				603
Non-controlling interests		21				(490	)
Total comprehensive income (loss)	$	633			$	113

CONSTELLATION SOFTWARE INC.
Consolidated Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Year ended December 31, 2024
			Equity Attributable to Common Shareholders of CSI
			Capital stock	Accumulated other comprehensive income (loss)	Retained earnings	Total	Non-controlling interests	Total equity
Balance at January 1, 2024	$	99	$	(99	)	$	1,876		$	1,877		$	85		$	1,961
Total comprehensive income (loss):
Net income (loss)		-		-			731			731			37			767
Other comprehensive income (loss)
Foreign currency translation differences from
	foreign operations and other, net of tax		-		(119	)		-			(119	)		(16	)		(135	)
Total other comprehensive income (loss)		-		(119	)		-			(119	)		(16	)		(135	)
Total comprehensive income (loss)		-		(119	)		731			612			21			633
Transactions with owners, recorded directly in equity
Non-controlling interests arising from business combinations		-		-			-			-			(0	)		(0	)
Conversion of Lumine Special Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Special Shares through the issuance of subordinate voting shares of Lumine		-		-			-			-			872			872
Conversion of Lumine Preferred Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Preferred Shares through the issuance of subordinate voting shares of Lumine			(6	)		400			394			(394	)		-
Other movements in non-controlling interests		-		-			(2	)		(2	)		(2	)		(4	)
Dividends paid to non-controlling interests		-		-			-			-			(89	)		(89	)
Dividends to shareholders of the Company		-		-			(85	)		(85	)		-			(85	)
Balance at December 31, 2024	$	99	$	(224	)	$	2,919		$	2,795		$	493		$	3,288

CONSTELLATION SOFTWARE INC.
Consolidated Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
Year ended December 31, 2023
			Equity Attributable to Common Shareholders of CSI
			Capital stock	Accumulated other comprehensive income (loss)	Retained earnings	Total	Non-controlling interests	Total equity
Balance at January 1, 2023	$	99	$	(150	)	$	1,763		$	1,713		$	221		$	1,933
Total comprehensive income (loss):
Net income (loss)		-		-			565			565			(503	)		62
Other comprehensive income (loss)
Foreign currency translation differences from
	foreign operations and other, net of tax		-		38			-			38			13			51
Total other comprehensive income (loss)		-		38			-			38			13			51
Total comprehensive income (loss)		-		38			565			603			(490	)		113
Transactions with owners, recorded directly in equity
Special dividend of Lumine Subordinate Voting Shares		-		12			(378	)		(366	)		366			-
Non-controlling interests arising from business combinations						2			2
Acquisition of non-controlling interests		-		-			-			-			(2	)		(2	)
Conversion of Lumine Special Shares to subordinate voting shares of Lumine		-		-			-			-			5			5
Other movements in non-controlling interests		-		0			15			15			(17	)		(2	)
Other distributions and movements in equity			2			(4	)		(3	)		-			(3	)
Dividends to shareholders of the Company (note 17)		-		-			(85	)		(85	)		-			(85	)
Balance at December 31, 2023	$	99	$	(99	)	$	1,876		$	1,877		$	85		$	1,961

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Cash Flows
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
			Years ended December 31,
				2024				2023
Cash flows from (used in) operating activities:
	Net income (loss)	$	767			$	62
	Adjustments for:
		Depreciation		182				162
		Amortization of intangible assets		1,044				859
		IRGA/TSS Membership liability revaluation charge		183				152
		Finance and other expense (income)		(60	)			(34	)
		Bargain purchase (gain)		(10	)			(54	)
		Impairment of intangible and other non-financial assets		28				26
		Redeemable preferred securities expense (income)		58				597
		Finance costs		280				192
		Income tax expense (recovery)		244				204
		Foreign exchange loss (gain)		(26	)			43
		Depreciation of third party costs		12				-
	Change in non-cash operating assets and liabilities
		exclusive of effects of business combinations		(45	)			(36	)
	Income taxes paid		(460	)			(394	)
	Net cash flows from (used in) operating activities		2,196				1,779
Cash flows from (used in) financing activities:
	Interest paid on lease obligations		(14	)			(11	)
	Interest paid on debt		(178	)			(133	)
	Proceeds from sale of interest rate cap		-				5
	Increase (decrease) in CSI facility		(578	)			256
	Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI		73				27
	Proceeds from issuance of debentures		-				209
	Proceeds from issuance of Senior Notes		1,000				-
	Proceeds from issuance of debt facilities without recourse to CSI		381				447
	Repayments of debt facilities without recourse to CSI		(149	)			(282	)
	Other financing activities		(25	)			(1	)
	Dividends paid to non-controlling interests		(89	)			-
	Debt transaction costs		(16	)			(5	)
	Payments of lease obligations, net of sublease receipts		(118	)			(109	)
	Distribution to the Joday Group		(64	)			-
	Principal repayments to the Joday Group pursuant to the Call Notice		(22	)			-
	Dividends paid to common shareholders of the Company		(85	)			(85	)
	Net cash flows from (used in) in financing activities		114				316
Cash flows from (used in) investing activities:
	Acquisition of businesses		(1,347	)			(1,609	)
	Cash obtained with acquired businesses		164				152
	Post-acquisition settlement payments, net of receipts		(336	)			(238	)
	Purchases of investments and other assets		(8	)			(23	)
	Proceeds from sales of other investments and other assets		7				119
	Decrease (increase) in restricted cash		(14	)			(2	)
	Interest, dividends and other proceeds received		33				4
	Property and equipment purchased		(67	)			(42	)
	Net cash flows from (used in) investing activities		(1,567	)			(1,639	)
Effect of foreign currency on
	cash		(48	)			17
Increase (decrease) in cash		696				473
Cash, beginning of period	$	1,284			$	811
Cash, end of period	$	1,980			$	1,284

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