CALGARY, Alberta, May 23, 2019 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. (“CMG” or the “Company”) is pleased to announce its financial results for the fiscal year ended March 31, 2019.
ANNUAL PERFORMANCE | ||||||
($ thousands, unless otherwise stated) | March 31, 2019 | March 31, 2018 (1) | March 31, 2017 (1) | |||
Annuity/maintenance licenses | 63,800 | 64,679 | 65,263 | |||
Perpetual licenses | 5,000 | 4,164 | 4,971 | |||
Software licenses | 68,800 | 68,843 | 70,234 | |||
Professional services | 6,057 | 5,837 | 4,863 | |||
Total revenue | 74,857 | 74,680 | 75,097 | |||
Operating profit | 29,554 | 28,030 | 33,321 | |||
Operating profit (%) | 39 | % | 38 | % | 44 | % |
Net income for the year | 22,135 | 20,806 | 24,269 | |||
EBITDA(2) | 31,507 | 30,027 | 34,414 | |||
Cash dividends declared and paid | 32,090 | 32,041 | 31,697 | |||
Funds flow from operations (3) | 25,593 | 25,503 | 27,560 | |||
Total assets | 90,305 | 97,990 | 106,725 | |||
Total shares outstanding | 80,227 | 80,215 | 79,482 | |||
Trading price per share at March 31 | 6.15 | 9.29 | 10.35 | |||
Market capitalization at March 31 | 493,396 | 745,194 | 822,634 | |||
Per share amounts - ($/share) | ||||||
Earnings per share - basic | 0.28 | 0.26 | 0.31 | |||
Earnings per share - diluted | 0.28 | 0.26 | 0.31 | |||
Cash dividends declared and paid | 0.40 | 0.40 | 0.40 | |||
Funds flow from operations per share - basic (3) | 0.32 | 0.32 | 0.35 |
(1) On April 1, 2018, the Company adopted IFRS 15 Revenue from Contracts with Customers using the cumulative effect method, by recognizing the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity at April 1, 2018. Accordingly, comparative information is not restated and continues to be reported under the previous standard
(2) EBITDA is defined as net income before adjusting for depreciation expense, finance income, finance costs, and income and other taxes. See “Non-IFRS Financial Measures”.
(3) Funds flow from operations is a non-IFRS financial measure that represents net income adjusted for depreciation expense, non-cash stock-based compensation expense and deferred tax expense (recovery). See “Non-IFRS Financial Measures”.
Quarterly Performance | Fiscal 2018 | Fiscal 2019 | ||||||
($ thousands, unless otherwise stated) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
Annuity/maintenance licenses | 16,516 | 16,341 | 16,158 | 15,664 | 14,715 | 15,111 | 17,240 | 16,734 |
Perpetual licenses | 1,078 | 290 | 743 | 2,053 | 326 | 1,172 | 611 | 2,891 |
Software licenses | 17,594 | 16,631 | 16,901 | 17,717 | 15,041 | 16,283 | 17,851 | 19,625 |
Professional services | 1,392 | 1,350 | 1,418 | 1,677 | 1,664 | 1,658 | 1,222 | 1,513 |
Total revenue | 18,986 | 17,981 | 18,319 | 19,394 | 16,705 | 17,941 | 19,073 | 21,138 |
Operating profit | 6,978 | 6,615 | 6,908 | 7,529 | 5,374 | 7,024 | 8,406 | 8,750 |
Operating profit (%) | 37 | 37 | 38 | 39 | 32 | 39 | 44 | 41 |
Profit before income and other taxes | 6,930 | 6,253 | 7,151 | 8,547 | 5,980 | 7,104 | 9,406 | 8,400 |
Income and other taxes | 1,973 | 1,647 | 2,054 | 2,401 | 1,722 | 2,048 | 2,559 | 2,426 |
Net income for the period | 4,957 | 4,606 | 5,097 | 6,146 | 4,258 | 5,056 | 6,847 | 5,974 |
EBITDA | 7,447 | 7,090 | 7,400 | 8,090 | 5,837 | 7,505 | 8,915 | 9,250 |
Cash dividends declared and paid | 7,977 | 8,021 | 8,022 | 8,021 | 8,021 | 8,024 | 8,022 | 8,023 |
Funds flow from operations | 6,205 | 5,788 | 6,225 | 7,285 | 5,242 | 5,777 | 7,550 | 7,024 |
Per share amounts - ($/share) | ||||||||
Earnings per share - basic | 0.06 | 0.06 | 0.06 | 0.08 | 0.05 | 0.06 | 0.09 | 0.07 |
Earnings per share - diluted | 0.06 | 0.06 | 0.06 | 0.08 | 0.05 | 0.06 | 0.09 | 0.07 |
Cash dividends declared and paid | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Funds flow from operations per share - basic | 0.08 | 0.07 | 0.08 | 0.09 | 0.07 | 0.07 | 0.09 | 0.09 |
Highlights
During the year ended March 31, 2019, as compared to the previous fiscal year, CMG’s:
- Net income increased by 6% and basic earnings per share increased by 8%;
- Total revenue remained consistent;
- Perpetual license revenue grew by 20%;
- Total operating expenses decreased by 3%.
During the year ended March 31, 2019, CMG:
- Achieved EBITDA of 42% of total revenue;
- Realized basic earnings per share of $0.28;
- Generated funds flow from operations of $0.32 per share;
- Declared and paid a regular dividend of $0.40 per share.
Revenue
Three months ended March 31, | 2019 | 2018 | $ change | % change | ||||
($ thousands) | ||||||||
Software license revenue | 19,625 | 17,717 | 1,908 | 11 | % | |||
Professional services | 1,513 | 1,677 | (164 | ) | -10 | % | ||
Total revenue | 21,138 | 19,394 | 1,744 | 9 | % | |||
Software license revenue - % of total revenue | 93 | % | 91 | % | ||||
Professional services - % of total revenue | 7 | % | 9 | % |
Year ended March 31, | 2019 | 2018 | $ change | % change | ||||
($ thousands) | ||||||||
Software license revenue | 68,800 | 68,843 | (43 | ) | 0 | % | ||
Professional services | 6,057 | 5,837 | 220 | 4 | % | |||
Total revenue | 74,857 | 74,680 | 177 | 0 | % | |||
Software license revenue - % of total revenue | 92 | % | 92 | % | ||||
Professional services - % of total revenue | 8 | % | 8 | % |
CMG’s revenue is comprised of software license sales, which provide the majority of the Company’s revenue, and fees for professional services.
Total revenue for the three months ended March 31, 2019 increased by 9%, compared to the same period of the previous fiscal year, mainly due to an increase in software license revenue. Total revenue for the year ended March 31, 2019 remained consistent with the previous fiscal year.
Software License Revenue
Three months ended March 31, | 2019 | 2018 | $ change | % change | |||
($ thousands) | |||||||
Annuity/maintenance license revenue | 16,734 | 15,664 | 1,070 | 7 | % | ||
Perpetual license revenue | 2,891 | 2,053 | 838 | 41 | % | ||
Total software license revenue | 19,625 | 17,717 | 1,908 | 11 | % | ||
Annuity/maintenance as a % of total software license revenue | 85 | % | 88 | % | |||
Perpetual as a % of total software license revenue | 15 | % | 12 | % |
Year ended March 31, | 2019 | 2018 | $ change | % change | ||||
($ thousands) | ||||||||
Annuity/maintenance license revenue | 63,800 | 64,679 | (879 | ) | -1 | % | ||
Perpetual license revenue | 5,000 | 4,164 | 836 | 20 | % | |||
Total software license revenue | 68,800 | 68,843 | (43 | ) | 0 | % | ||
Annuity/maintenance as a % of total software license revenue | 93 | % | 94 | % | ||||
Perpetual as a % of total software license revenue | 7 | % | 6 | % |
Total software license revenue for the three months ended March 31, 2019 increased by 11% compared the same period of the previous fiscal year, due to increases in both annuity/maintenance license revenue and perpetual license revenue. Total software license revenue for the year ended March 31, 2019 remained consistent with the previous fiscal year, as an increase in perpetual licenses revenue was offset by a decrease in annuity/maintenance license revenue.
CMG’s annuity/maintenance license revenue increased by 7% during the three months ended March 31, 2019, compared to the same period of the previous fiscal year, primarily due to maintenance reactivation and increased licensing by a customer in the Eastern Hemisphere.
CMG’s annuity/maintenance license revenue decreased by 1% during the year ended March 31, 2019, compared to the previous fiscal year, mainly due to lower licensing in Canada and South America, partially offset by increases in the Eastern Hemisphere and the United States.
Perpetual license revenue increased by 41% for the three months ended March 31, 2019, compared to the same period of the previous fiscal year, due to increases in the United States and the Eastern Hemisphere. On an annual basis, more perpetual sales were realized in most geographic areas, with the exception of South America, which resulted in a 20% increase in perpetual license revenue, compared to the previous fiscal year. Software licensing under perpetual sales may fluctuate significantly between periods due to the uncertainty associated with the timing and the location where sales are generated. For this reason, even though we expect to achieve a certain level of aggregate perpetual sales on an annual basis, we expect to observe fluctuations in the quarterly perpetual revenue amounts throughout the fiscal year.
Software Revenue by Geographic Segment
Three months ended March 31, | 2019 | 2018 | $ change | % change | ||
($ thousands) | ||||||
Annuity/maintenance license revenue | ||||||
Canada | 3,725 | 3,748 | (23 | ) | -1 | % |
United States | 4,664 | 4,565 | 99 | 2 | % | |
South America | 1,924 | 2,142 | (218 | ) | -10 | % |
Eastern Hemisphere(1) | 6,421 | 5,209 | 1,212 | 23 | % | |
16,734 | 15,664 | 1,070 | 7 | % | ||
Perpetual license revenue | ||||||
Canada | - | - | - | 0 | % | |
United States | 582 | 107 | 475 | 444 | % | |
South America | - | - | - | 0 | % | |
Eastern Hemisphere | 2,309 | 1,946 | 363 | 19 | % | |
2,891 | 2,053 | 838 | 41 | % | ||
Total software license revenue | ||||||
Canada | 3,725 | 3,748 | (23 | ) | -1 | % |
United States | 5,246 | 4,672 | 574 | 12 | % | |
South America | 1,924 | 2,142 | (218 | ) | -10 | % |
Eastern Hemisphere | 8,730 | 7,155 | 1,575 | 22 | % | |
19,625 | 17,717 | 1,908 | 11 | % | ||
Year ended March 31, | 2019 | 2018 | $ change | % change | ||
($ thousands) | ||||||
Annuity/maintenance license revenue | ||||||
Canada | 15,151 | 16,754 | (1,603 | ) | -10 | % |
United States | 18,620 | 18,519 | 101 | 1 | % | |
South America | 8,734 | 9,009 | (275 | ) | -3 | % |
Eastern Hemisphere(1) | 21,295 | 20,397 | 898 | 4 | % | |
63,800 | 64,679 | (879 | ) | -1 | % | |
Perpetual license revenue | ||||||
Canada | 156 | - | 156 | 100 | % | |
United States | 1,096 | 262 | 834 | 318 | % | |
South America | 6 | 394 | (388 | ) | -98 | % |
Eastern Hemisphere | 3,742 | 3,508 | 234 | 7 | % | |
5,000 | 4,164 | 836 | 20 | % | ||
Total software license revenue | ||||||
Canada | 15,307 | 16,754 | (1,447 | ) | -9 | % |
United States | 19,716 | 18,781 | 935 | 5 | % | |
South America | 8,740 | 9,403 | (663 | ) | -7 | % |
Eastern Hemisphere | 25,037 | 23,905 | 1,132 | 5 | % | |
68,800 | 68,843 | (43 | ) | 0 | % |
(1) Includes Europe, Africa, Asia and Australia.
During the three months ended March 31, 2019, on a geographic basis, total software license revenue increased in the United States and the Eastern Hemisphere, partially offset by decreases in South America.
During the year ended March 31, 2019, on a geographic basis, total software license sales remained flat, as increases in the United States and the Eastern Hemisphere were offset by decreases in Canada and South America.
The Canadian market (representing 22% of total annual software license revenue) remained relatively flat for the three months ended March 31, 2019, compared to the same period of the previous fiscal year, representing the first consistent quarter-over-quarter comparison since fiscal 2015. Canada experienced a decrease of 10% in annuity/maintenance license revenue during the year ended March 31, 2019, compared to the previous fiscal year, due to reduction in licensing by some customers. There were no significant perpetual sales realized in Canada during the three months and year ended March 31, 2019 or in the comparative periods.
The United States market (representing 29% of total annual software license revenue) experienced increases of 2% and 1% in annuity/maintenance license revenue during the three months and year ended March 31, 2019, respectively, compared to the same periods of the previous fiscal year, due to increased licensing by new and existing customers involved in unconventional shale and tight hydrocarbon recovery processes. The increase in annuity/maintenance license revenue for the year was partially offset by the negative impact of IFRS 15 adoption. There were more perpetual sales realized in the three months and year ended March 31, 2019, compared to the same periods of the previous fiscal year, primarily contributing to the growth in total U.S. software license revenue.
South America (representing 13% of total annual software license revenue) experienced decreases of 10% and 3% in annuity/maintenance license revenue during the three months and year ended March 31, 2019, compared to the same periods of the previous fiscal year, due to maintenance reactivation on perpetual licenses included in the comparative periods. Our revenue in South America can be significantly impacted by the variability of the amounts recorded from a long-standing customer and its affiliates for whom revenue is recognized only when cash is received. We recognized similar amounts of revenue from this customer in the years ended March 31, 2019 and 2018. There were no significant perpetual license sales in South America during fiscal 2019.
The Eastern Hemisphere (representing 36% of total annual software license revenue) experienced increases of 23% and 4% in annuity/maintenance license revenue during the three months and year ended March 31, 2019, respectively, compared to the same periods of the previous fiscal year, mainly due to maintenance reactivation and increased licensing by a customer in the Middle East. Eastern Hemisphere perpetual revenue for the three months and year ended March 31, 2019 was higher by 19% and 7%, respectively, compared the same periods of the previous fiscal year.
Deferred Revenue
Fiscal | Fiscal | ||||||||
2019 | 2018 | $ change | % change | ||||||
($ thousands) | |||||||||
Deferred revenue at: | |||||||||
Q1 (June 30) | 29,350 | (4) | 31,551 | (1) | (2,201 | ) | -7 | % | |
Q2 (September 30) | 23,222 | (5) | 23,686 | (2) | (464 | ) | -2 | % | |
Q3 (December 31) | 13,782 | 17,785 | (4,003 | ) | -23 | % | |||
Q4 (March 31) | 35,015 | (6) | 34,362 | (3) | 653 | 2 | % | ||
(1) Includes current deferred revenue of $30.3 million and long-term deferred revenue of $1.3 million.
(2) Includes current deferred revenue of $23.0 million and long-term deferred revenue of $0.6 million.
(3) Includes current deferred revenue of $33.4 million and long-term deferred revenue of $1.0 million.
(4) Includes current deferred revenue of $28.8 million and long-term deferred revenue of $0.6 million.
(5) Includes current deferred revenue of $22.9 million and long-term deferred revenue of $0.3 million.
(6) Includes current deferred revenue of $34.7 million and long-term deferred revenue of $0.3 million.
CMG’s deferred revenue consists primarily of amounts for pre-sold licenses. Our annuity/maintenance revenue is deferred and recognized on a straight-line basis or according to usage over the life of the related license period, which is generally one year or less. Amounts are deferred for licenses that have been provided and revenue recognition reflects the passage of time.
The above table illustrates the normal trend in the deferred revenue balance from the beginning of the calendar year (which corresponds with Q4 of our fiscal year), when most renewals occur, to the end of the calendar year (which corresponds with Q3 of our fiscal year). Our fourth quarter corresponds with the beginning of the fiscal year for most oil and gas companies, representing a time when they enter a new budget year and sign/renew their contracts.
Deferred revenue as at Q4 of fiscal 2019 increased by 2% compared to Q4 of fiscal 2018, primarily due to increased licensing in the Eastern Hemisphere.
Expenses
Three months ended March 31, | 2019 | 2018 | $ change | % change | |
($ thousands) | |||||
Sales, marketing and professional services | 5,216 | 5,068 | 148 | 3 | % |
Research and development | 5,280 | 5,171 | 109 | 2 | % |
General and administrative | 1,892 | 1,626 | 266 | 16 | % |
Total operating expenses | 12,388 | 11,865 | 523 | 4 | % |
Direct employee costs(1) | 9,237 | 8,877 | 360 | 4 | % |
Other corporate costs | 3,151 | 2,988 | 163 | 5 | % |
12,388 | 11,865 | 523 | 4 | % |
Year ended March 31, | 2019 | 2018 | $ change | % change | ||
($ thousands) | ||||||
Sales, marketing and professional services | 18,690 | 19,535 | (845 | ) | -4 | % |
Research and development | 19,893 | 20,371 | (478 | ) | -2 | % |
General and administrative | 6,720 | 6,744 | (24 | ) | 0 | % |
Total operating expenses | 45,303 | 46,650 | (1,347 | ) | -3 | % |
Direct employee costs(1) | 33,481 | 33,959 | (478 | ) | -1 | % |
Other corporate costs | 11,822 | 12,691 | (869 | ) | -7 | % |
45,303 | 46,650 | (1,347 | ) | -3 | % |
(1) Includes salaries, bonuses, stock-based compensation, benefits, commissions, and professional development. See “Non-IFRS Financial Measures”.
CMG’s total operating expenses increased by 4% for the three months ended March 31, 2019, compared to the same period of the previous fiscal year, due to increases in both direct employee costs and other corporate costs. CMG’s total operating expenses decreased by 3% for the year ended March 31, 2019, compared to the previous fiscal year, due to decreases in both direct employee costs and other corporate costs.
Direct employee costs increased by 4% during the three months ended March 31, 2019, compared to the same period of the previous fiscal year, due to higher commissions and a bonus adjustment as a result of higher billings and revenue achievement during the quarter. Direct employee costs decreased by 1% during the year ended March 31, 2019, compared to the previous fiscal year, due to lower stock-based compensation and a lower headcount during the year. Other corporate costs increased by 5% during the three months ended March 31, 2019, compared to the same period of the previous fiscal year, mainly as a result of increased travel for customer visits and contract negotiation and a strengthening of the US dollar compared to the Canadian dollar. Other corporate costs decreased by 7% during the year ended March 31, 2019, compared to the same period of the previous fiscal year, mainly because the comparative year included $0.6 million of non-recurring charges related to the head office move, which were incurred in the first quarter of the year.
Outlook
As we exit fiscal 2019, we are very pleased with the financial performance achieved in the last quarter of the year. During the fourth quarter, annuity and maintenance revenue increased by 7%, mainly due to an increase in the Eastern Hemisphere, while perpetual license sales grew by 41% as a result of increases in both the United States and the Eastern Hemisphere.
Supported by the strong fourth quarter revenue growth, we achieved increases in operating profit and EBITDA of 16% and 14%, respectively, compared to the fourth quarter of the previous fiscal year.
Our total software revenue for fiscal 2019 remained consistent with the previous fiscal year as a decrease in annuity and maintenance revenue was offset by an increase in perpetual sales. We are very pleased to have achieved $5.0 million in perpetual sales during fiscal 2019, which represents an increase of 20% over the previous year.
Annuity and maintenance revenue decreased by 1% during the year, mainly due to decreased licensing in Canada, as the Canadian oil and gas industry continued to be under pressure. We are, however, encouraged by fourth quarter Canadian annuity and maintenance revenue, which was consistent with the fourth quarter of last year. The United States region continued to benefit from strong activity by unconventional customers during fiscal 2019; however, the revenue growth in that region was partially offset by the negative impact of adopting the new revenue recognition accounting standard and the movement in the CAD/USD exchange rate. While South America saw a slight decrease in annuity and maintenance revenue during fiscal 2019, the Eastern Hemisphere grew by 5%, mainly due to revenue growth experienced in the fourth quarter. Another positive indicator was a 2% increase in deferred revenue as we exited the year.
Operating expenses decreased by 3% during fiscal 2019.
During fiscal 2019, we maintained strong profitability with operating profit of 39% of revenue and EBITDA of 42% of revenue, demonstrating the resilience of our business model and the value of our products even in the difficult operating environment faced by the oil and gas sector. One of the notable accomplishments during the fiscal year was the closing of our first commercial contract for CoFlow, our newest product, in February for use on an onshore asset, which was followed by two more contracts, signed in March and April, with two new customers for short-term use of CoFlow on specific projects.
We continued to maintain a strong balance sheet and closed the year with $54.3 million of cash in our bank account and no debt. We further demonstrated a solid liquidity position by maintaining annual funds flow from operations at the same level as in the previous fiscal year, at $0.32 per share.
During fiscal 2019, we paid dividends of $0.40 per share. CMG’s Board of Directors declared a quarterly dividend of $0.10 per share to be paid on June 14, 2019, representing the 50th successive quarter of dividend payments.
For further details on the results, please refer to CMG’s Management Discussion and Analysis and Consolidated Financial Statements, which are available on SEDAR at www.sedar.com or on CMG’s website at www.cmgl.ca.
Non-IFRS Financial Measures
This press release includes certain measures that have not been prepared in accordance with IFRS, such as “EBITDA”, “direct employee costs”, “other corporate costs” and “funds flow from operations”. Since these measures do not have a standard meaning prescribed by IFRS, they are unlikely to be comparable to similar measures presented by other issuers. Management believes that these indicators nevertheless provide useful measures in evaluating the Company’s performance.
“Direct employee costs” include salaries, bonuses, stock-based compensation, benefits, commission expenses, and professional development. “Other corporate costs” include facility-related expenses, corporate reporting, professional services, marketing and promotion, computer expenses, travel, and other office-related expenses. Direct employee costs and other corporate costs should not be considered an alternative to total operating expenses as determined in accordance with IFRS. People-related costs represent the Company’s largest area of expenditure; hence, management considers highlighting separately corporate and people-related costs to be important in evaluating the quantitative impact of cost management of these two major expenditure pools. See “Expenses” heading for a reconciliation of direct employee costs and other corporate costs to total operating expenses.
“EBITDA” refers to net income before adjusting for depreciation expense, finance income, finance costs, and income and other taxes. EBITDA should not be construed as an alternative to net income as determined by IFRS. The Company believes that EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities prior to consideration of how those activities are amortized, financed or taxed.
“Funds flow from operations” is a non-IFRS financial measure that represents net income adjusted for certain non-cash items, such as depreciation expense, stock-based compensation expense, deferred tax expense (recovery) and deferred rent. The Company considers funds flow from operations a useful measure as it represents the cash generated during the period, regardless of the timing of collection of receivables and payment of payables, and demonstrates the Company’s ability to generate the cash flow necessary to fund future growth and dividend payments. Funds flow from operations may not be comparable to similar measures presented by other companies.
Forward-looking Information
Certain information included in this press release is forward-looking. Forward-looking information includes statements that are not statements of historical fact and which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as investment objectives and strategy, the development plans and status of the Company’s software development projects, the Company’s intentions, results of operations, levels of activity, future capital and other expenditures (including the amount, nature and sources of funding thereof), business prospects and opportunities, research and development timetable, and future growth and performance. When used in this press release, statements to the effect that the Company or its management “believes”, “expects”, “expected”, “plans”, “may”, “will”, “projects”, “anticipates”, “estimates”, “would”, “could”, “should”, “endeavours”, “seeks”, “predicts” or “intends” or similar statements, including “potential”, “opportunity”, “target” or other variations thereof that are not statements of historical fact should be construed as forward-looking information. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management of the Company. The Company believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Corporate Profile
CMG is a computer software technology company serving the oil and gas industry. The Company is a leading supplier of advanced process reservoir modelling software with a blue chip customer base of international oil companies and technology centers in approximately 60 countries. The Company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities. CMG has sales and technical support services based in Calgary, Houston, London, Dubai, Bogota and Kuala Lumpur. CMG’s Common Shares are listed on the Toronto Stock Exchange (“TSX”) and trade under the symbol “CMG”.
Consolidated Statements of Financial Position
(thousands of Canadian $) | March 31, 2019 | March 31, 2018* | ||
Assets | ||||
Current assets: | ||||
Cash | 54,290 | 63,719 | ||
Trade and other receivables | 19,220 | 16,272 | ||
Prepaid expenses | 1,332 | 1,415 | ||
Prepaid income taxes | 367 | - | ||
75,209 | 81,406 | |||
Property and equipment | 14,501 | 16,062 | ||
Deferred tax asset | 595 | 522 | ||
Total assets | 90,305 | 97,990 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities: | ||||
Trade payables and accrued liabilities | 6,162 | 6,550 | ||
Income taxes payable | 60 | 126 | ||
Deferred revenue | 34,653 | 33,360 | ||
40,875 | 40,036 | |||
Deferred revenue | 362 | 1,002 | ||
Deferred rent liability | 1,813 | 1,388 | ||
Total liabilities | 43,050 | 42,426 | ||
Shareholders’ equity: | ||||
Share capital | 79,711 | 79,598 | ||
Contributed surplus | 12,808 | 11,775 | ||
Deficit | (45,264 | ) | (35,809 | ) |
Total shareholders' equity | 47,255 | 55,564 | ||
Total liabilities and shareholders' equity | 90,305 | 97,990 | ||
Consolidated Statements of Operations and
Comprehensive Income
Years ended March 31, (thousands of Canadian $ except per share amounts) | 2019 | 2018* | |
Revenue | 74,857 | 74,680 | |
Operating expenses | |||
Sales, marketing and professional services | 18,690 | 19,535 | |
Research and development | 19,893 | 20,371 | |
General and administrative | 6,720 | 6,744 | |
45,303 | 46,650 | ||
Operating profit | 29,554 | 28,030 | |
Finance income | 1,336 | 905 | |
Finance costs | - | (54 | ) |
Profit before income and other taxes | 30,890 | 28,881 | |
Income and other taxes | 8,755 | 8,075 | |
Net and total comprehensive income | 22,135 | 20,806 | |
Earnings Per Share | |||
Basic | 0.28 | 0.26 | |
Diluted | 0.28 | 0.26 | |
Consolidated Statements of Cash Flows
Years ended March 31, (thousands of Canadian $) | 2019 | 2018 | ||||
Operating activities | ||||||
Net income | 22,135 | 20,806 | ||||
Adjustments for: | ||||||
Depreciation | 1,953 | 1,997 | ||||
Income and other taxes | 8,755 | 8,075 | ||||
Stock-based compensation | 1,154 | 2,087 | ||||
Interest income | (1,214 | ) | (905 | ) | ||
Deferred rent | 425 | 1,388 | ||||
33,208 | 33,448 | |||||
Changes in non-cash working capital: | ||||||
Trade and other receivables | (2,954 | ) | 9,033 | |||
Trade payables and accrued liabilities | (63 | ) | 35 | |||
Prepaid expenses | 83 | (179 | ) | |||
Deferred revenue | 1,338 | (3,870 | ) | |||
Cash provided by operating activities | 31,612 | 38,467 | ||||
Interest received | 1,221 | 905 | ||||
Income taxes paid | (9,447 | ) | (8,842 | ) | ||
Net cash provided by operating activities | 23,386 | 30,530 | ||||
Financing activities | ||||||
Proceeds from issue of common shares | 17 | 6,664 | ||||
Dividends paid | (32,090 | ) | (32,041 | ) | ||
Net cash used in financing activities | (32,073 | ) | (25,377 | ) | ||
Investing activities | ||||||
Property and equipment additions | (742 | ) | (4,673 | ) | ||
(Decrease) increase in cash | (9,429 | ) | 480 | |||
Cash, beginning of year | 63,719 | 63,239 | ||||
Cash, end of year | 54,290 | 63,719 | ||||
* The Company adopted IFRS 15 effective April 1, 2018 using the cumulative effect method. Under this method, comparative information is not restated.
See accompanying notes to consolidated financial statements.
For further information, contact:
Ryan N. Schneider President & CEO (403) 531-1300 ryan.schneider@cmgl.ca | or | Sandra Balic Vice President, Finance & CFO (403) 531-1300 sandra.balic@cmgl.ca |