Computer Modelling Group Announces Third Quarter Results


CALGARY, Alberta, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three and nine months ended December 31, 2023.

CMG Group and its subsidiaries include the following; Computer Modelling Group Inc., CMG Middle East FZ LLC, CMGL Services Corporation Inc., CMG Europe Ltd., and CMG Collaboration Centre India Private Ltd., (together referred to as “CMG”), and CMG Holdings (USA) Inc., Bluware-Headwave Ventures Inc., Bluware Inc., Hue AS, and Kalkulo AS (together referred to as “BHV” or “Bluware”).

As a result of CMG Group’s acquisition of BHV on September 25, 2023, the Company’s operations are now organized into two reportable operating segments represented by CMG; the development and licensing of reservoir simulation software, and BHV; the development and licensing of seismic interpretation software.

THIRD QUARTER FISCAL 2024 (“Q3 2024”) OVERVIEW

CMG GROUP KEY FINANCIAL METRICS

For the Three Months EndedFor the Nine Months Ended
December 31, 2023 and compared to the same period of the previous fiscal year, when appropriate:
 
  • Annuity/maintenance license revenue increased by 21%;
  • Annuity/maintenance license revenue increased by 18%;
  • Annuity license fees have increased by 100% or $3.8 million as a result of a full quarter of BHV operations;
  • Annuity license fees have increased by 100% or $4.0 million as a result of a full quarter of BHV operations;
  • Total revenue increased by 70%;
  • Total revenue increased by 43%;
  • Total operating expenses increased by 99%. Adjusted for acquisition related expenses in the current quarter and restructuring charges in the prior year’s third quarter, operating expenses increased by 92%, primarily due to a combination of higher stock-based compensation expense, direct employee costs, professional service costs and office-related costs;
  • Total operating expenses increased by 35%. Adjusted for acquisition related expenses in the current year and restructuring charges in the prior year, operating expenses increased by 51% from the comparative period in the prior year, primarily due to a combination of higher stock-based compensation expenses, direct employee costs, professional services, travel-related and office-related costs;
  • Quarterly adjusted EBITDA as a % of total revenue was 38%, decreasing from 49% in the comparative quarter with, CMG achieving 44% and BHV achieving 27% in the current quarter;
  • Year-to-date adjusted EBITDA as a % of total revenue was 44%, decreasing from 46% in the comparative period, with CMG achieving 47% and BHV achieving 27% in the current quarter;
  • Basic EPS of $0.07, down $0.01 per share from the comparative quarter in the prior fiscal year;
  • Basic EPS of $0.24, up $0.06 per share from the comparative period in the prior fiscal year;
  • Achieved free cash flow per share of $0.09.
  • Achieved free cash flow per share of $0.32.
  

THIRD QUARTER BUSINESS HIGHLIGHTS

  • Our third quarter results represent the first full quarter of operations following the acquisition of BHV, which contributed $11.2 million to total revenue and $1.7 million to net income:
  • Generated total revenue of $33.0 million in the third quarter of fiscal 2024 compared to $19.4 million in the prior year’s quarter, an increase of 70% with 58% contributed by BHV and 12% by CMG. Geographically, all regions saw increases in annuity/maintenance revenue due to new customers and increased licensing by existing customers. Our existing customers continue to grow their product offerings on contract renewals. Annuity license fee revenue increased due to the acquisition of BHV and was impacted by contract renewals;
  • Adjusted EBITDA was 38%, compared to 49% in the same period of last fiscal year with BHV achieving 27% and CMG achieving 44% adjusted EBITDA;
  • Recognition of annuity license fee from BHV had a positive impact on total revenue and adjusted EBITDA (see under “Quarterly Performance” heading for further description);
  • Reported free cash flow of $7.7 million, representing $0.09 per share;
  • Subsequent to quarter-end, declared a quarterly cash dividend of $0.05 per share to be paid on March 15, 2024 to all shareholders on record at the close of business on March 7, 2024.

The following press release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three and nine months ended December 31, 2023 and the accompanying notes, our Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended December 31, 2023 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and with our MD&A for the year ended March 31, 2023 which can be found on SEDAR at www.sedarplus.ca and on the Company’s website www.cmgl.ca. Additional information about the Company is also available on SEDAR at www.sedarplus.ca.

QUARTERLY PERFORMANCE

 Fiscal 2022(2)Fiscal 2023(3)Fiscal 2024(4)
($ thousands, unless otherwise stated)Q4Q1Q2Q3Q4Q1Q2Q3
Annuity/maintenance license14,30613,52914,82515,53315,803

15,607


17,610


18,814
Annuity license fee-------3,846
Perpetual license2,3513867805181,5561,8491,176 584
Total software license revenue16,65713,91515,60516,05117,35917,45618,786 23,244
Professional services revenue2,1372,1922,4773,3412,9063,2923,847 9,763
Total revenue18,79416,10718,08219,39220,265

20,748


22,633


33,007
Operating expenses11,4829,38210,8709,26213,3569,07912,41418,434
Adjusted operating expenses(1)12,3987,7808,5299,26213,3569,07911,84117,738
Operating profit7,3124,9615,5558,4356,9099,7647,726 8,217
Operating profit (%)39313143344734 25
Adjusted operating profit(1)6,3966,5637,8968,4356,9099,7648,2998,913
Adjusted operating profit (%)3441444334473727
Profit before income and other taxes6,5635,1825,9898,3507,1279,1488,793 8,117
Income and other taxes1,6111,3691,5792,0021,9012,2442,277 2,507
Net income for the period4,9523,8134,4106,3485,2266,9046,516 5,610
Adjusted EBITDA(1)7,8796,7758,4359,4988,5209,94810,718 12,634
Cash dividends declared and paid4,0164,0174,0254,0254,0324,0394,0434,059
Funds flow from operations7,1054,5584,9748,1697,6567,92011,4918,477
Free cash flow(1)6,5844,2554,5057,5455,3967,46311,0287,654
Per share amounts – ($/share)        
Earnings per share (EPS) – basic0.060.050.050.080.070.090.080.07
Earnings per share (EPS) – diluted0.060.050.050.080.060.080.080.07
Cash dividends declared and paid0.050.050.050.050.050.050.050.05
Funds flow from operations per share – basic0.090.060.060.100.090.100.140.10
Free cash flow per share – basic(1)0.080.050.060.090.070.090.140.09


(1)This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.
(2)Q4 of fiscal 2022 includes $0.8 million of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(3)Q1, Q2, Q3, and Q4 of fiscal 2023 include $0.2 million, $0.3 million, $0.3 million, and $0.4 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(4)Q1, Q2, and Q3 of fiscal 2024 include $0.1 million, $0.4 million, and $0.2 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.


Total software license revenue for the three months ended December 31, 2023 increased by 45%, compared to the same period of the previous fiscal year, of which 31% is due to BHV acquisition and 14% due to increases in annuity/maintenance and perpetual license revenue of CMG. Total software license revenue for the nine months ended December 31, 2023 increased by 31%, compared to the same period of the previous fiscal year, of which 11% is due to BHV acquisition and 19% due to increases in annuity/maintenance and perpetual license revenue of CMG.

Annuity/maintenance license revenue increased by 21% during the three months ended December 31, 2023, compared to the same period of the previous fiscal year, of which 8% is due to BHV acquisition and 13% due to annuity/ maintenance license revenue increase of CMG. Annuity/maintenance license revenue increased by 18% during the nine months ended December 31, 2023, compared to the same period in the previous fiscal year, of which 3% is due to BHV acquisition and 15% due to increases in annuity/ maintenance license revenue of CMG. CMG’s annuity/maintenance license revenue increases during both three and nine months ended December 31, 2023 were a result of increases in all regions, supported by license fee increases, increased the license usage by existing customers and addition of new customers. We continue to see a strong contribution to revenue from CMG energy transition customers and estimate during the three and nine months ended December 31, 2023, 22% of total software license revenue is related to energy transition.

Annuity license fee revenue relates to BHV and this revenue stream is expected to fluctuate quarterly depending on the timing of contract renewals as the annuity license fees are recognized in revenue when the software license is delivered. Historically, a majority of contracts renew during the third and fourth quarters.

Perpetual license revenue increased by 13% during the three months ended December 31, 2023, compared to the same period of the previous fiscal year, due to perpetual license sales generated in Canada during the quarter. During the nine months ended December 31, 2023, compared to the same period of the previous fiscal year, perpetual license revenue increased by 114% due to increases in all regions.

Professional services revenue for the three and nine months ended December 31, 2023 was $9.8 million and $16.9 million which represents increases of 192% and 111%, respectively, compared to the same periods of the previous fiscal year. The acquisition of BHV contributed 185% and 82% of the increase, respectively, for the three and nine months ended December 31, 2023.The remaining increases are due to increased CMG professional services revenue from consulting projects as a result of expanded services to address customer demand.

Total operating expenses for the three and nine months ended December 31, 2023, increased by 99% and 35%, respectively, compared to the same periods of the previous fiscal year. Adjusted total operating expenses increased by 92% and 51% for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year. The acquisition of BHV contributed to 46% and 17% of the increase in total adjusted operating costs for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year. CMG’s total adjusted operating expenses increased by 46% and 34% for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year, due to an increase in both direct employee costs and other corporate costs.

Operating profit as a percentage of total revenue for the three months ended December 31, 2023 was 25%, down from 43% in the comparative quarter. Adjusted operating profit was 27%, down from 43% in the comparative quarter. Current quarter includes BHV’s adjusted operating profit as a percentage of revenue at 26% and CMG’s adjusted operating profit as a percentage of revenue at 28%. CMG’s adjusted operating profit as a percentage of revenue decreased from 43% recorded in the same quarter of the previous fiscal year, due to an increase in direct employee costs driven by the increase in stock-based compensation, other corporate costs inclusive of the increase in amortization expense as a result of BHV acquisition, partially offset by an increase in revenue. Operating profit as a percentage of total revenue for the nine months ended December 31, 2023 was 34%, slightly down from 35% in the comparative quarter. Adjusted operating profit was 35%, down from 43% in the comparative quarter. Current year-to-date quarter includes BHV’s adjusted operating profit as a percentage of revenue at 26% and CMG’s adjusted operating profit as a percentage of revenue at 37%. CMG’s adjusted operating profit as a percentage of revenue decreased from 43% recorded in the same period of the previous fiscal year, due to the same reasons that affected the quarterly comparison as explained above.

NON-IFRS FINANCIAL MEASURES AND RECONCILIATION OF NON-IFRS MEASURES

Funds flow from operations is an additional IFRS measure that the Company presents in its consolidated statements of cash flows. Funds flow from operations is calculated as cash flows provided by operating activities adjusted for changes in non-cash working capital. Management believes that this measure provides useful supplemental information about operating performance and liquidity, as it represents cash generated during the period, regardless of the timing of collection of receivables and payment of payables, which may reduce comparability between periods.

Certain financial measures – namely, Adjusted EBITDA, free cash flow, adjusted total operating expenses, direct employee costs, adjusted direct employee costs, other corporate costs, adjusted other corporate costs, adjusted operating profit, and adjusted net income – do not have a standard meaning prescribed by IFRS and, accordingly, may not be comparable to measures used by other companies. Management believes that these indicators nevertheless provide useful measures in evaluating the Company’s performance. Reconciliations of the non-IFRS financial measures to the most directly comparable IFRS financial measure are presented below:

Free Cash Flow Reconciliation to Funds Flow from Operations

 Fiscal 2022 Fiscal 2023  Fiscal 2024  
($ thousands, unless otherwise stated)Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 
Funds flow from operations7,105 4,558 4,974 8,169 7,656 7,920 11,491 8,477 
Capital expenditures(62)- (130)(211)(1,707)(45)(51)(459)
Repayment of lease liabilities(459)(303)(339)(413)(553)(412)(412)(364)
Free cash flow6,584 4,255 4,505 7,545 5,396 7,463 11,028 7,654 
Weighted average shares – basic (thousands)80,335 80,335 80,412 80,511 80,603 80,685 80,834  81,067 
Free cash flow per share – basic0.08 0.05 0.06 0.09 0.07 0.09 0.14 0.09 


Adjusted EBITDA and Adjusted EBITDA as a % of Total Revenue

 Three months ended December 31 Nine months ended December 31
 2023 2022 $ change % change 2023 2022 $ change % change 
($ thousands, except per share data)               
                
Net income5,610  6,348 (738)(12%)19,030 14,571 4,459 31%
Add (deduct):               
Depreciation and amortization 1,555  864 691 80%3,537 2,732 805 29%
Stock-based compensation 2,974  1,094 1,880 172%5,370 1,596 3,774 236%
Acquisition related expenses 696  - 696 100%1,269 - 1,269 100%
Restructuring charges -  - - 0%- 3,943 (3,943)(100%)
Income and other tax expense 2,507  2,002 505 25%7,028 4,950 2,078 42%
Interest income (986)(548)(438)80%(2,438)(1,105)(1,333)121%
Foreign exchange loss (gain) 642  151 491 325%693 (923)1,616 (175%)
Repayment of lease liabilities (364)(413)49 (12%)(1,188)(1,055)(133)13%
Adjusted EBITDA 12,634  9,498 3,136 33%33,301 24,709 8,592 35%
Adjusted EBITDA as a % of total revenue38%49%    44%46%   


OPERATIONS BY REPORTABLE SEGMENT AND ANALYSIS

CMGThree months ended December 31Nine months ended December 31
 2023 2022 $ change % change 2023 2022 $ change % change 
($ thousands)              
               
Software license revenue18,209 16,051 2,158 13%54,282 45,571 8,711 19%
Professional service revenue3,594 3,341 253 7%10,338 8,010 2,238 29%
Total revenue21,803 19,392 2,411 12%64,620 53,581 11,039 21%
Cost of revenues2,288 1,695 593 35%6,464 5,116 1,348 26%
Operating expenses13,606 9,262 4,344 47%34,912 29,514 5,398 18%
Operating profit5,909 8,435 (2,526)(30%)23,244 18,951 4,293 23%
               
Adjusted EBITDA:               
Net Income3,918 6,348 (2,430)(38%)17,245 14,571 2,674 18%
Add (deduct):              
Depreciation and amortization1,449 865 584 68%3,424 2,732 692 25%
Stock-based compensation2,974 1,093 1,881 172%5,370 1,596 3,774 236%
Acquisition related expenses146 - 146 100%719 - 719 100%
Restructuring charges- - - -- 3,943 (3,943)(100%)
Income and other tax expense1,805 2,002 (197)(10%)6,288 4,950 1,338 27%
Interest income(982)(548)(434)79%(2,434)(1,105)(1,329)120%
Foreign exchange loss (gain)701 151 550 364%752 (923)1,675 (181%)
Repayment of lease liabilities(428)(413)(15)4%(1,248)(1,055)(193)18%
Adjusted EBITDA9,583 9,498 85 1%30,116 24,709 5,407 22%
Adjusted EBITDA as a % CMG total revenue44%49%   47%46%   


CMG experienced increases in revenue for the three and nine months ended December 31, 2023, with increases of $2.4 million or 12% and $11.0 million or 21%, respectively. This consistent growth demonstrates CMG’s ability to capture new customers and grow existing customers’ revenue through increased license contracts and pricing.

Cost of revenues has increased for the three and nine months ended December 31, 2023, by 35% and 26%, respectively, primarily as a result of increased headcount and headcount related costs to support increased professional services revenue growth.

Operating expenses have increased for the three and nine months ended December 31, 2023, by 47% and 18%, respectively, primarily as a result of acquisition-related expenses, and increases in stock-based compensation, headcount and headcount related costs, agent commissions, depreciation and amortization expenses, and other corporate costs.

CMG adjusted EBITDA as a percentage of CMG total revenue is 44% for the three months ended December 31, 2023, compared to 49% in the prior year comparative quarter, primarily due to an increase in operating expenses as a result of an increase in headcount and headcount related costs and other corporate costs. Adjusted EBITDA as a percentage of total revenue for the nine months ended December 31, 2023, for CMG was 47% which is relatively consistent with the prior year.

BHVThree months ended December 31Nine months ended December 31
 2023 2022$ change % change 2023 2022$ change % change 
($ thousands)             
            
Software license revenues5,035 -5,035 100%5,200 -5,200 100%
Professional service revenue6,169 -6,169 100%6,568 -6.568 100%
Total revenue11,204 -11,204 100%11,768 -11,768 100%
Cost of revenues4,068 -4,068 100%4,290 -4,290 100%
Operating expenses4,828 -4,828 100%5,015 -5,015 100%
Operating profit2,308 -2,308 100%2,463 -2,463 100%
            
Adjusted EBITDA:           
Net Income1,692 -1,692 100%1,785 -1,785 100%
Depreciation and amortization106 -106 100%113 -113 100%
Acquisition related expenses550 -550 100%550 -550 100%
Income and other tax expense702 -702 100%740 -740 100%
Interest income(4)-(4)100%(4)-(4)100%
Foreign exchange loss (gain)(59)-(59)100%(59)-(59)100%
Repayment of lease liabilities64 -64 100%60 -60 100%
Adjusted EBITDA3,051 -3,404 100%3,184    
Adjusted EBITDA as a % of BHV total revenue27%-   27%-  


BHVs revenue for the three and nine months ended December 31, 2023, is comprised of 55% professional services revenue, which is primarily driven by a contract with one customer. BHVs software license revenue for the three and nine months ended December 31, 2023, was supported by contract renewals.

BHVs cost of revenues consist mainly of headcount and headcount related costs incurred to support professional services revenue.

Operating expenses for BHV are primarily comprised of headcount and headcount related costs, office related costs and professional services costs.

BHV adjusted EBITDA as a percentage of BHV revenue is 27% for both the three and nine months ended December 31, 2023, respectively. The recognition of the annual license fee revenue in connection to third quarter contract renewals had a positive effect on adjusted EBITDA. We expect that adjusted EBITDA will fluctuate on a quarterly basis as a result of annual license fee revenue recognition which is skewed towards the last two quarters of the fiscal year.

CORPORATE PROFILE        

CMG Group (TSX:CMG) is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world. The Company is headquartered in Calgary, AB, with offices in Houston, Oxford, Dubai, Bogota, Rio de Janeiro, Bengaluru, Oslo, and Kuala Lumpur. For more information, please visit www.cmgl.ca.

QUARTERLY FILINGS AND RELATED QUARTERLY FINANCIAL INFORMATION

Management’s Discussion and Analysis (“MD&A”) and condensed consolidated interim financial statements and the notes thereto for the three and nine-months ended December 31, 2023 can be obtained from our website www.cmgl.ca. The documents will also be available under CMG Group’s SEDAR profile www.sedarplus.ca.

Condensed Consolidated Statements of Financial Position

UNAUDITED (thousands of Canadian $)December 31, 2023 March 31, 2023 
     
Assets    
Current assets:    
Cash45,183 66,850 
Restricted cash158 - 
Trade and other receivables32,090 23,910 
Prepaid expenses1,652 1,060 
Prepaid income taxes2,858 444 
 81,941 92,264 
Intangible assets24,347 1,321 
Right-of-use assets30,008 30,733 
Property and equipment10,072 10,366 
Goodwill3,787 - 
Deferred tax asset- 2,444 
Total assets150,155 137,128 
     
Liabilities and shareholders’ equity    
Current liabilities:    
Trade payables and accrued liabilities13,329 9,883 
Income taxes payable1,027 33 
Acquisition holdback payable2,283 - 
Deferred revenue27,089 34,797 
Lease liabilities2,738 1,829 
 46,466 46,542 
Lease liabilities35,017 36,151 
Stock-based compensation liabilities2,706 1,985 
Acquisition earnout1,470 - 
Other long-term liabilities261 - 
Deferred tax liabilities1,113 - 
Total liabilities87,033 84,678 
     
Shareholders’ equity:    
Share capital85,925 81,820 
Contributed surplus15,596 15,471 
Cumulative translation adjustment(448)- 
Deficit(37,951)(44,841)
Total shareholders’ equity63,122 52,450 
Total liabilities and shareholders' equity150,155 137,128 


Condensed Consolidated Statements of Operations and Comprehensive Income

 Three months ended
December 31
 Nine months ended
December 31
 
UNAUDITED (thousands of Canadian $ except per share amounts)2023

 2022

 2023

 2022

 
         
Revenue
Cost of revenue
33,007
6,356
 19,392
1,695
 76,388
10,754
 53,581
5,116
 
Gross profit 26,651 17,697 65,634 48,465 
         
Operating expenses         
Sales and marketing4,857 2,480 10,596 6,674 
Research and development7,253 4,096 16,072 13,268 
General and administrative6,324 2,686 13,259 9,572 
 18,434 9,262 39,927 29,514 
Operating profit8,217 8,435 25,707 18,951 
         
Finance income986 548 2,644 2,028 
Finance costs(1,086)(633)(2,293)(1,458)
Profit before income and other taxes8,117 8,350 26,058 19,521 
Income and other taxes2,507 2,002 7,028 4,950 
         
Net income for the period5,610 6,348 19,030 14,571 
         
Other comprehensive income:        
Foreign currency translation adjustment(453)- (449)- 
Other comprehensive income (453)- (449)- 
Total comprehensive income 4,157 6,348 18,581 14,571 
         
Net income per share – basic0.07 0.08 0.24 0.18 
Net income per share – diluted0.07 0.08 0.23 0.18 
Dividend per share0.05 0.05 0.15 0.15 


Condensed Consolidated Statements of Cash Flows

 Three months ended
December 31
 Nine months ended
December 31
 
UNAUDITED (thousands of Canadian $)2023 2022 2023 2022 
         
Operating activities        
Net income5,610 6,348 19,030 14,571 
Adjustments for:        
Depreciation and amortization of property, equipment, right-
of use assets
890 864 2,686 2,732 
Amortization of intangible assets665 - 851 - 
Deferred income tax expense (recovery)1,104 (145)3,082 (64)
Stock-based compensation513 1,102 2,222 462 
Foreign exchange and other non-cash items(305)- 17 - 
Funds flow from operations8,477 8,169 27,888 17,701 
Movement in non-cash working capital:        
Trade and other receivables(5,413)(4,872)(2,112)(1,048)
Trade payables and accrued liabilities2,413 649 24 27 
Prepaid expenses and other assets(639)1 (349)(421)
Income taxes receivable (payable)(181)1,157 (1,432)733 
Deferred revenue(4,214)2,553 (9,351)(3,737)
Change in non-cash working capital(8,034)(512)(13,220)(4,446)
Net cash provided by operating activities443 7,657 14,668 13,255 
         
Financing activities        
Repayment of acquired line of credit- -  (2,012)- 
Proceeds from issuance of common shares1,783 19 2,996 434 
Repayment of lease liabilities(364)(413)(1,188)(1,055)
Dividends paid(4,059)(4,025)(12,140)(12,067)
Net cash used in financing activities(2,640)(4,419)(12,344)(12,688)
         
Investing activities        
Corporate acquisition, net of cash acquired157 - (22,893)- 
Change in non-cash working capital(517)- (517)- 
Property and equipment additions(459)(211)(555)(341)
Net cash used in investing activities(819)(211)(23,695)(341)
         
Increase (decrease) in cash(3,016)3,027 (21,641)226 
Effect of foreign exchange on cash(26)- (26)- 
Cash, beginning of period48,225 56,859 66,850 59,660 
Cash, end of period45,183 59,886 45,183 59,886 
         
Supplementary cash flow information        
Interest received986 548 2,438 1,105 
Interest paid444 482 1,394 1,458 
Income taxes paid1,071 1,732 5,429 4,615 


For further information, please contact:

Pramod JainorSandra Balic
Chief Executive Officer Vice President, Finance & CFO
(403) 531-1300 (403) 531-1300
pramod.jain@cmgl.ca sandra.balic@cmgl.ca
   
For investor inquiries, please contact:  
Kim MacEachern  
Manager, Investor Relations  
cmg-investors@cmgl.ca  
   
For media inquiries, please contact:  
marketing@cmgl.ca  
   

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements". Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "may", "should", "will", and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding the benefits of the acquired technology, the ongoing development thereof; and the ability of data analytics to improve efficiency, cut costs and reduce risks.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are detailed in the companies’ public filings.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.