CALGARY, Alberta, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. (“CMG” or the “Company”) is very pleased to report our financial results for the three and six months ended September 30, 2017.
Quarterly Performance
Fiscal 2016 | Fiscal 2017 | Fiscal 2018 | ||||||
($ thousands, unless otherwise stated) | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
Annuity/maintenance licenses | 17,297 | 16,980 | 16,893 | 15,379 | 18,378 | 14,613 | 16,516 | 16,341 |
Perpetual licenses | 2,729 | 782 | 579 | 521 | 835 | 3,036 | 1,078 | 290 |
Software licenses | 20,026 | 17,762 | 17,472 | 15,900 | 19,213 | 17,649 | 17,594 | 16,631 |
Professional services | 1,191 | 1,254 | 1,345 | 1,027 | 1,082 | 1,409 | 1,392 | 1,350 |
Total revenue | 21,217 | 19,016 | 18,817 | 16,927 | 20,295 | 19,058 | 18,986 | 17,981 |
Operating profit | 10,342 | 7,040 | 8,975 | 6,905 | 9,811 | 7,630 | 6,978 | 6,615 |
Operating profit (%) | 49 | 37 | 48 | 41 | 48 | 40 | 37 | 37 |
EBITDA(1) | 10,686 | 7,389 | 9,277 | 7,189 | 10,081 | 7,867 | 7,447 | 7,090 |
Profit before income and other taxes | 10,974 | 5,550 | 9,212 | 7,119 | 10,176 | 7,685 | 6,930 | 6,253 |
Income and other taxes | 3,121 | 1,668 | 2,398 | 2,128 | 2,917 | 2,480 | 1,973 | 1,647 |
Net income for the period | 7,853 | 3,882 | 6,814 | 4,991 | 7,259 | 5,205 | 4,957 | 4,606 |
Cash dividends declared and paid | 7,871 | 7,876 | 7,896 | 7,929 | 7,930 | 7,942 | 7,977 | 8,021 |
Funds flow from operations(2) | 8,981 | 4,979 | 7,489 | 5,903 | 8,084 | 6,085 | 6,205 | 5,788 |
Per share amounts - ($/share) | ||||||||
Earnings per share - basic | 0.10 | 0.05 | 0.09 | 0.06 | 0.09 | 0.07 | 0.06 | 0.06 |
Earnings per share - diluted | 0.10 | 0.05 | 0.09 | 0.06 | 0.09 | 0.07 | 0.06 | 0.06 |
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(2) | 0.11 | 0.06 | 0.09 | 0.07 | 0.10 | 0.08 | 0.08 | 0.07 |
(1) EBITDA is a non-IFRS financial measure defined as net income before adjusting for depreciation expense, finance income, finance costs, and income and other taxes. See “Non-IFRS Financial Measures”.
(2) 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”.
Highlights
During the six months ended September 30, 2017, as compared to the same period of the previous fiscal year, CMG:
- Increased annuity/maintenance license revenue by 2%;
- Increased total software license revenue by 3%;
- Experienced an increase in total operating expenses of 18%, mainly due to moving into the new headquarters.
During the six months ended September 30, 2017, CMG:
- Realized basic earnings per share of $0.12;
- Declared and paid a regular dividend of $0.20 per share.
Revenue
Three months ended September 30, | 2017 | 2016 | $ change | % change | |||
($ thousands) | |||||||
Software license revenue | 16,631 | 15,900 | 731 | 5 | % | ||
Professional services | 1,350 | 1,027 | 323 | 31 | % | ||
Total revenue | 17,981 | 16,927 | 1,054 | 6 | % | ||
Software license revenue - % of total revenue | 92 | % | 94 | % | |||
Professional services - % of total revenue | 8 | % | 6 | % |
Six months ended September 30, | 2017 | 2016 | $ change | % change | |||
($ thousands) | |||||||
Software license revenue | 34,225 | 33,372 | 853 | 3 | % | ||
Professional services | 2,742 | 2,372 | 370 | 16 | % | ||
Total revenue | 36,967 | 35,744 | 1,223 | 3 | % | ||
Software license revenue - % of total revenue | 93 | % | 93 | % | |||
Professional services - % of total revenue | 7 | % | 7 | % | |||
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 increased by 6% and 3% for the three and six months ended September 30, 2017, respectively, compared the same periods of the previous fiscal year, due to increases in both software license revenue and professional services.
Software License Revenue
Three months ended September 30, | 2017 | 2016 | $ change | % change | ||||
($ thousands) | ||||||||
Annuity/maintenance license revenue | 16,341 | 15,379 | 962 | 6 | % | |||
Perpetual license revenue | 290 | 521 | (231 | ) | -44 | % | ||
Total software license revenue | 16,631 | 15,900 | 731 | 5 | % | |||
Annuity/maintenance as a % of total software license revenue | 98 | % | 97 | % | ||||
Perpetual as a % of total software license revenue | 2 | % | 3 | % |
Six months ended September 30, | 2017 | 2016 | $ change | % change | |||
($ thousands) | |||||||
Annuity/maintenance license revenue | 32,857 | 32,272 | 585 | 2 | % | ||
Perpetual license revenue | 1,368 | 1,100 | 268 | 24 | % | ||
Total software license revenue | 34,225 | 33,372 | 853 | 3 | % | ||
Annuity/maintenance as a % of total software license revenue | 96 | % | 97 | % | |||
Perpetual as a % of total software license revenue | 4 | % | 3 | % | |||
Total software license revenue increased by 5% for the three months ended September 30, 2017, compared to the same period of the previous fiscal year, due to an increase in annuity/maintenance license revenue, partially offset by a decrease in perpetual license revenue.
Total software license revenue increased by 3% for the six months ended September 30, 2017, compared to the same period of the previous fiscal year, due to increases in both annuity/maintenance license revenue and perpetual license revenue.
CMG’s annuity/maintenance license revenue increased by 6% and 2% during the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year, primarily due to increases in South America and the United States.
Our annuity/maintenance license revenue can be significantly impacted by the variability of the amounts recorded from a long-standing customer and its affiliates for whom revenue recognition criteria are fulfilled only at the time of the receipt of funds. The timing of such payments may skew the comparison of annuity/maintenance license revenue between periods. We received payments from these customers during the six months ended September 30, 2017 and during the three months ended June 30, 2016. To provide a normalized comparison, if we remove this revenue from the three months ended September 30, 2017 and 2016, we note that the annuity/maintenance license revenue increased by 1% instead of 6%. Normalizing the annuity/maintenance revenue for the six months ended September 30, 2017 and 2016 has no impact on the percentage of increase. Due to the economic conditions in the country where this customer and its affiliates are located, revenue from this customer and its affiliates will continue to be recognized on a cash basis, which may result in fluctuations in our annuity/maintenance license revenue.
Perpetual license revenue decreased by 44% for the three months ended September 30, 2017, compared to the same period of the previous fiscal year, due to fewer perpetual sales having been realized in the Eastern Hemisphere. Perpetual license revenue increased by 24% for the six months ended September 30, 2017, compared to the same period of the previous fiscal year, mainly due to high perpetual license revenue in the Eastern Hemisphere in the first quarter of the current 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 September 30, | 2017 | 2016 | $ change | % change | ||
($ thousands) | ||||||
Annuity/maintenance license revenue | ||||||
Canada | 4,462 | 4,677 | (215 | ) | -5 | % |
United States | 4,466 | 4,171 | 295 | 7 | % | |
South America | 2,412 | 1,347 | 1,065 | 79 | % | |
Eastern Hemisphere(1) | 5,001 | 5,184 | (183 | ) | -4 | % |
16,341 | 15,379 | 962 | 6 | % | ||
Perpetual license revenue | ||||||
Canada | - | - | - | 0 | % | |
United States | 129 | 22 | 107 | 486 | % | |
South America | 62 | - | 62 | 100 | % | |
Eastern Hemisphere | 99 | 499 | (400 | ) | -80 | % |
290 | 521 | (231 | ) | -44 | % | |
Total software license revenue | ||||||
Canada | 4,462 | 4,677 | (215 | ) | -5 | % |
United States | 4,595 | 4,193 | 402 | 10 | % | |
South America | 2,474 | 1,347 | 1,127 | 84 | % | |
Eastern Hemisphere | 5,100 | 5,683 | (583 | ) | -10 | % |
16,631 | 15,900 | 731 | 5 | % |
Six months ended September 30, | 2017 | 2016 | $ change | % change | ||
($ thousands) | ||||||
Annuity/maintenance license revenue | ||||||
Canada | 8,626 | 9,455 | (829 | ) | -9 | % |
United States | 9,057 | 8,212 | 845 | 10 | % | |
South America | 4,745 | 4,243 | 502 | 12 | % | |
Eastern Hemisphere(1) | 10,429 | 10,362 | 67 | 1 | % | |
32,857 | 32,272 | 585 | 2 | % | ||
Perpetual license revenue | ||||||
Canada | - | - | - | 0 | % | |
United States | 155 | 80 | 75 | 94 | % | |
South America | 220 | 312 | (92 | ) | -29 | % |
Eastern Hemisphere | 993 | 708 | 285 | 40 | % | |
1,368 | 1,100 | 268 | 24 | % | ||
Total software license revenue | ||||||
Canada | 8,626 | 9,455 | (829 | ) | -9 | % |
United States | 9,212 | 8,292 | 920 | 11 | % | |
South America | 4,965 | 4,555 | 410 | 9 | % | |
Eastern Hemisphere | 11,422 | 11,070 | 352 | 3 | % | |
34,225 | 33,372 | 853 | 3 | % |
(1) Includes Europe, Africa, Asia and Australia.
During the three months ended September 30, 2017, on a geographic basis, South America and the United States experienced an increase in total software license revenue, which was offset by decreases in the Eastern Hemisphere and Canada, as compared to the same period of the previous fiscal year.
During the six months ended September 30, 2017, on a geographic basis, total software license revenue increased in all geographic segments, with the exception of Canada, as compared to the same period of the previous fiscal year.
The Canadian market (representing 25% of year-to-date software license revenue) experienced a 5% and 9% decrease in annuity/maintenance license revenue during the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year, due to a reduction in licensing by some customers. No perpetual sales were recorded in Canada during the three and six months ended September 30, 2017.
The United States market (representing 27% of year-to-date software license revenue) experienced a 7% and 10% increase in annuity/maintenance license revenue during the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year, mainly due to increased licensing to existing customers. Perpetual license revenue increased in the three and six months ended September 30, 2017 as more perpetual sales were realized.
South America (representing 15% of year-to-date software license revenue) experienced an increase of 79% and 12% in annuity/maintenance license revenue during the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year. Our revenue in South America can be significantly impacted by the variability of the amounts recorded from a customer and its affiliates for whom revenue is recognized only when cash is received. We received payments from these customers during the six months ended September 30, 2017 and during the three months ended June 30, 2016. To provide a normalized comparison, if we remove this revenue from the three and six months ended September 30, 2017 and 2016, we note that the annuity/maintenance license revenue increased by 17% instead of 79% in the three-month period and increased by 20% instead of 12% in the six-month period.
South American perpetual license revenue was up 100% for the three months ended September 30, 20017, compared to the same period of the previous fiscal year, because there were no perpetual sales realized in the comparative period. Fewer perpetual sales were realized in South America during the six months ended September 30, 2017, compared to the same period of the previous fiscal year, resulting in a 29% decrease.
The Eastern Hemisphere (representing 33% of year-to-date software license revenue) experienced a 4% decrease in annuity/maintenance license revenue during the three months ended September 30, 2017, compared to the same period of the previous fiscal year, mainly due to decreased licensing by some European customers. For the six months ended September 30, 2017, annuity/maintenance license revenue in the Eastern Hemisphere stayed relatively consistent with the same period of the previous fiscal year, with an increase of only 1%. There was an 80% decrease in perpetual license revenue during the three months ended September 30, 2017, compared to the same period of the previous fiscal year. During the six months ended September 30, 2017, more perpetual license sales were realized in the Eastern Hemisphere, compared to the same period of the previous fiscal year, resulting in an increase of 40%.
Deferred Revenue
Fiscal | Fiscal | Fiscal | ||||||||
($ thousands) | 2018 | 2017 | 2016 | $ change | % change | |||||
Deferred revenue at: | ||||||||||
Q1 (June 30) | 31,551 | (2 | ) | 26,154 | 5,397 | 21 | % | |||
Q2 (September 30) | 23,686 | (3 | ) | 20,787 | 2,899 | 14 | % | |||
Q3 (December 31) | 18,916 | 17,243 | 1,673 | 10 | % | |||||
Q4 (March 31) | 38,232 | (1 | ) | 33,629 | 4,603 | 14 | % |
(1) Includes current deferred revenue of $36.3 million and long-term deferred revenue of $1.9 million.
(2) Includes current deferred revenue of $30.3 million and long-term deferred revenue of $1.3 million.
(3) Includes current deferred revenue of $23.0 million and long-term deferred revenue of $0.6 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 Q2 of fiscal 2018 increased by 14% compared to Q2 of fiscal 2017. The increase is mostly due to the fact that the deferred revenue balance at September 30, 2017 includes a number of contracts that were not included in the deferred revenue balance in the comparative quarter, because the contracts were finalized and invoiced prior to September 30, 2017, whereas in the previous fiscal year the contracts were finalized and invoiced subsequent to September 30, 2016. The increase is also partially due to increased licensing in the United States and South America.
Expenses
Three months ended September 30, | 2017 | 2016 | $ change | % change | |
($ thousands) | |||||
Sales, marketing and professional services | 4,779 | 4,569 | 210 | 5 | % |
Research and development | 4,865 | 3,941 | 924 | 23 | % |
General and administrative | 1,722 | 1,512 | 210 | 14 | % |
Total operating expenses | 11,366 | 10,022 | 1,344 | 13 | % |
Direct employee costs(1) | 8,268 | 8,093 | 175 | 2 | % |
Other corporate costs | 3,098 | 1,929 | 1,169 | 61 | % |
11,366 | 10,022 | 1,344 | 13 | % |
Six months ended September 30, | 2017 | 2016 | $ change | % change | |
($ thousands) | |||||
Sales, marketing and professional services | 9,696 | 9,147 | 549 | 6 | % |
Research and development | 10,172 | 7,750 | 2,422 | 31 | % |
General and administrative | 3,506 | 2,967 | 539 | 18 | % |
Total operating expenses | 23,374 | 19,864 | 3,510 | 18 | % |
Direct employee costs(1) | 16,771 | 16,038 | 733 | 5 | % |
Other corporate costs | 6,603 | 3,826 | 2,777 | 73 | % |
23,374 | 19,864 | 3,510 | 18 | % |
(1) Includes salaries, bonuses, stock-based compensation, benefits, commissions, and professional development. See “Non-IFRS Financial Measures”.
CMG’s total operating expenses increased by 13% and 18% for the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year, mainly due to an increase in other corporate costs.
Direct Employee Costs
As a technology company, CMG’s largest area of expenditure is its people. Approximately 72% of the total operating expenses for the six months ended September 30, 2017 related to direct employee costs. Staffing levels in the current fiscal year were lower compared to the previous fiscal year. At September 30, 2017, CMG’s full-time equivalent staff complement was 196 employees and consultants, down from 207 full-time equivalent employees and consultants at September 30, 2016, mainly due to the reduction of the CoFlow development team. Direct employee costs increased by 2% during the three months ended September 30, 2017, compared to the same period of the previous fiscal year, due to CMG recording a larger share of CoFlow salaries in the current period as a result of the new agreement with Shell. The 5% increase in direct employee costs during the six months ended September 30, 2017 was due to the aforementioned new CoFlow agreement and also due to a large credit recorded in the first quarter of the previous fiscal year as a result of the difference between the annual bonus accrual for the year ended March 31, 2016 and the actual bonus paid.
Other Corporate Costs
Other corporate costs increased by 61% and 73% during the three and six months ended September 30, 2017, respectively, compared to the same periods of the previous fiscal year, due to higher office costs and depreciation related to moving into our new headquarters. The six-month period ended September 30, 2017 includes $0.6 million of non-recurring charges related to the move, which were incurred in the first quarter of the fiscal year.
Outlook
During the current quarter and year to date, our annuity and maintenance license revenue increased by 6% and 2%, respectively, supported by increases in the United States and South America. In the current quarter this revenue stream was positively affected by payments received for contracts for which revenue is recognized only when cash is received. During the current quarter and year to date, the weakening of the US dollar had a negative impact of 2% and 1%, respectively, on our annuity and maintenance license revenue.
While the oil and gas industry appears to be on a very slow road to recovery, petroleum producers have been focusing their efforts on efficiency improvements, increasing production, and value creation. In particular, the recovery in oil prices has led to oil production growth from shale plays in the United States, which had a positive impact on our software revenue. CMG continues to invest in R&D initiatives to enhance the functionality and performance of our products and help operators to optimize their production.
During the first quarter of fiscal 2018, we moved into our new headquarters in Calgary, which we will lease for the next 20 years. The new building features training facilities for customers and brings together our entire team in one location. We invested just under $16 million into the new building infrastructure over the past four fiscal years. Now that the new headquarters is substantially complete, our capital expenditures are expected to recede to their normal levels of a couple of million dollars a year.
Mainly due to costs associated with the new headquarters, our total operating expenses increased by 18% in the six months ended September 30, 2017, compared to the same period of the previous fiscal year. The other factor contributing to the increase in operating expenses was the new agreement with our CoFlow partner Shell, under which CMG is responsible for a larger share of CoFlow costs starting January 1, 2017.
We continue to work on identifying customers for trial modelling work in CoFlow, which will provide a one-vendor solution for integrated asset modelling by combining both reservoir and production networks.
We ended the second quarter of 2018 with a strong balance sheet, no debt and $57.3 million in cash. Subsequent to quarter end, CMG’s Board of Directors declared a quarterly dividend of $0.10 per share.
For further detail on the results, please refer to CMG’s Management Discussion and Analysis and Condensed Consolidated Financial Statements, which are available on SEDAR at www.sedar.com or on CMG’s website at www.cmgl.ca.
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.
Non-IFRS Financial Measures
This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards (“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.
“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.
For reconciliation of the non-IFRS financial measures used in this press release to the most directly comparable IFRS financial measures, please refer to CMG’s Management Discussion and Analysis, available on SEDAR at www.sedar.com or on CMG’s website at www.cmgl.ca.
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 and trade under the symbol “CMG”.
Condensed Consolidated Statements of Financial Position
UNAUDITED (thousands of Canadian $) | September 30, 2017 | March 31, 2017 | ||
Assets | ||||
Current assets: | ||||
Cash | 57,348 | 63,239 | ||
Trade and other receivables | 11,544 | 25,305 | ||
Prepaid expenses | 2,273 | 1,236 | ||
Prepaid income taxes | 1,247 | 72 | ||
72,412 | 89,852 | |||
Property and equipment | 16,397 | 16,873 | ||
Deferred tax asset | 429 | - | ||
Total assets | 89,238 | 106,725 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities: | ||||
Trade payables and accrued liabilities | 4,623 | 9,331 | ||
Income taxes payable | 21 | 190 | ||
Deferred revenue | 23,041 | 36,303 | ||
27,685 | 45,824 | |||
Deferred revenue | 645 | 1,929 | ||
Deferred rent liability | 1,175 | - | ||
Deferred tax liability | - | 254 | ||
Total liabilities | 29,505 | 48,007 | ||
Shareholders’ equity: | ||||
Share capital | 79,598 | 71,859 | ||
Contributed surplus | 11,144 | 11,433 | ||
Deficit | (31,009 | ) | (24,574 | ) |
Total shareholders' equity | 59,733 | 58,718 | ||
Total liabilities and shareholders' equity | 89,238 | 106,725 | ||
Condensed Consolidated Statements of Operations and Comprehensive Income
Three months ended September 30 | Six months ended September 30 | |||||
UNAUDITED (thousands of Canadian $ except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||
Revenue | 17,981 | 16,927 | 36,967 | 35,744 | ||
Operating expenses | ||||||
Sales, marketing and professional services | 4,779 | 4,569 | 9,696 | 9,147 | ||
Research and development | 4,865 | 3,941 | 10,172 | 7,750 | ||
General and administrative | 1,722 | 1,512 | 3,506 | 2,967 | ||
11,366 | 10,022 | 23,374 | 19,864 | |||
Operating profit | 6,615 | 6,905 | 13,593 | 15,880 | ||
Finance income | 218 | 214 | 420 | 451 | ||
Finance costs | (580 | ) | - | (830 | ) | - |
Profit before income and other taxes | 6,253 | 7,119 | 13,183 | 16,331 | ||
Income and other taxes | 1,647 | 2,128 | 3,620 | 4,526 | ||
Net and total comprehensive income | 4,606 | 4,991 | 9,563 | 11,805 | ||
Earnings Per Share | ||||||
Basic | 0.06 | 0.06 | 0.12 | 0.15 | ||
Diluted | 0.06 | 0.06 | 0.12 | 0.15 | ||
Condensed Consolidated Statements of Cash Flows
Three months ended September 30 | Six months ended September 30 | |||||||
UNAUDITED (thousands of Canadian $) | 2017 | 2016 | 2017 | 2016 | ||||
Operating activities | ||||||||
Net income | 4,606 | 4,991 | 9,563 | 11,805 | ||||
Adjustments for: | ||||||||
Depreciation | 475 | 284 | 944 | 586 | ||||
Income and other taxes | 1,647 | 2,128 | 3,620 | 4,526 | ||||
Stock-based compensation | 530 | 572 | 994 | 1,167 | ||||
Interest income | (218 | ) | (148 | ) | (420 | ) | (301 | ) |
Deferred rent | 347 | - | 1,175 | - | ||||
7,387 | 7,827 | 15,876 | 17,783 | |||||
Changes in non-cash working capital: | ||||||||
Trade and other receivables | (846 | ) | 3,378 | 13,882 | 15,197 | |||
Trade payables and accrued liabilities | 112 | (284 | ) | (1,722 | ) | (2,568 | ) | |
Prepaid expenses | (307 | ) | (116 | ) | (1,037 | ) | 19 | |
Deferred revenue | (7,865 | ) | (5,367 | ) | (14,546 | ) | (12,842 | ) |
Cash (used in) provided by operating activities | (1,519 | ) | 5,438 | 12,453 | 17,589 | |||
Interest received | 219 | 151 | 417 | 301 | ||||
Income taxes paid | (2,727 | ) | (1,853 | ) | (5,765 | ) | (4,617 | ) |
Net cash (used in) provided by operating activities | (4,027 | ) | 3,736 | 7,105 | 13,273 | |||
Financing activities | ||||||||
Proceeds from issue of common shares | 2,540 | 2,128 | 6,664 | 3,227 | ||||
Dividends paid | (8,021 | ) | (7,929 | ) | (15,998 | ) | (15,825 | ) |
Net cash used in financing activities | (5,481 | ) | (5,801 | ) | (9,334 | ) | (12,598 | ) |
Investing activities | ||||||||
Property and equipment additions | (416 | ) | (1,975 | ) | (3,662 | ) | (2,584 | ) |
Decrease in cash | (9,924 | ) | (4,040 | ) | (5,891 | ) | (1,909 | ) |
Cash, beginning of period | 67,272 | 74,811 | 63,239 | 72,680 | ||||
Cash, end of period | 57,348 | 70,771 | 57,348 | 70,771 | ||||
See accompanying notes to condensed consolidated financial statements at www.sedar.com.
For further information, please contact:
Kenneth M. Dedeluk President & CEO (403) 531-1300 ken.dedeluk@cmgl.ca | or | Sandra Balic Vice President, Finance & CFO (403) 531-1300 sandra.balic@cmgl.ca |
www.cmgl.ca |