CALGARY, Alberta, Nov. 12, 2024 (GLOBE NEWSWIRE) — Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three and six months ended September 30, 2024, and the approval by its Board of Directors (the “Board”) of the payment of a cash dividend of $0.05 per Common Share for the second quarter ended September 30, 2024.
SECOND QUARTER 2025 CONSOLIDATED HIGHLIGHTS
Select financial highlights for the three months ended September 30, 2024
- Closed the Company’s second major acquisition, Sharp Reflections GmbH (“SR” or “Sharp”), on November 12, 2024;
- Generated total revenue of $29.5 million in the second quarter of fiscal 2025, compared to $22.6 million in the prior year’s quarter, reflecting a 1% increase in CMG’s revenue and a 29% contribution from BHV;
- Operating profit increased to $8.4 million, an increase of 9% from the same period of the previous fiscal year, primarily due to a decrease in stock-based compensation in the quarter as a result of the decrease in share price. Adjusted operating profit decreased by 8% from the same period of the previous fiscal year, with CMG contributing to 6% and BHV contributing to 2% of the decrease;
- Adjusted EBITDA Margin was 34%, compared to 47% in the same period of the previous fiscal year with CMG generating 45% and BHV generating (2%) in Adjusted EBITDA Margin;
- Net income during the period was $3.8 million, a 42% decrease compared to the prior year’s quarter, primarily due to a change in the fair value of contingent consideration and FX loss incurred in the current year’s quarter, partially offset by increased operating profit;
- Earnings per share was $0.05, a 38% decrease compared to the prior year’s quarter;
- Reported Free Cash Flow of $0.07 per share, a decrease of 50%, primarily due to BHV generating negative cash flows.
Select financial highlights for the six months ended September 30, 2024
- Closed the Company’s second major acquisition, Sharp Reflections GmbH (“SR” or “Sharp”), on November 12, 2024;
- Generated total revenue of $60.0 million for the second quarter fiscal 2025 year-to-date period, compared to $43.4 million in the prior year-to-date period, reflecting a 6% increase in CMG’s revenue and a 32% contribution from BHV;
- Operating profit decreased to $14.1 million, a decrease of 19% from the same year-to-date period of the previous fiscal year, primarily due to increased stock-based compensation as a result of an increase in share price, as well as increased operating expenses from having a full quarter of Bluware operating expenses as compared to 5 days in the previous fiscal year-to-date period. Adjusted operating profit decreased by 6% from the same period of the previous fiscal year, with CMG contributing to 4% and BHV contributing to 2% of the decrease;
- Adjusted EBITDA Margin was 32%, compared to 48% in the same period of the previous fiscal year with CMG generating 43% and BHV generating (3%) in Adjusted EBITDA Margin;
- Net income during the period was $7.7 million, a 42% decrease compared to the prior year-to-date period;
- Earnings per share was $0.09, a 47% decrease compared to the prior year-to-date period;
- Reported Free Cash Flow of $0.14 per share, a decrease of 39%, primarily due to BHV generating negative cash flows.
MANAGEMENT COMMENTARY
Second Quarter
In the second quarter, total revenue grew by 30% from the prior fiscal year to $29.5 million, reflecting the acquisition of Bluware (“BHV”) which contributed 29%, and growth within the CMG operating segment of 1%. Adjusted EBITDA Margin was 34% compared to 47% in the prior year period, reflecting the acquisition of BHV which currently operates at a lower margin than CMG, and a decline in Adjusted EBITDA compared to the prior year period in the CMG operating segment, discussed below. Net income for the quarter declined to $3.8 million from $6.5 million in the prior year period, significantly impacted by a change in the fair value of contingent consideration relating to the acquisition of Bluware and foreign exchange losses. Free Cash Flow declined from $0.14 per share in the prior period to $0.07 per share, impacted by the lower Free Cash Flow generation at BHV resulting from seasonality associated with revenue recognition. Free Cash Flow per share remained constant from the first quarter of 2025. At September 30, 2024, the cash balance was $61.4 million. The effective tax rate for the quarter increased due to the non-deductibility of the change in fair value of the acquisition earnout.
In the CMG operating segment, total revenue was up 1%, however, annuity/maintenance (“A/M”) revenue declined compared to the second quarter of 2024. Delays occurred in the closing of a sizeable new contract which would have been accretive to A/M revenue in the second quarter. This was completed after quarter-end and is expected to be recorded starting in the third quarter. Given the timing of the new contract, it did not offset a combination of variability in short-term contracts and the non-renewal of one contract in the US which led to the modest decline.
By geography, total software revenue grew in the Eastern Hemisphere due to strong perpetual licenses, offset primarily by lower A/M licenses in South America and the US, as mentioned above.
Software revenue attributable to energy transition was 19% in the quarter, compared to 22% in the comparable prior year period and 28% in the first quarter of this year. From a trend perspective, on a year-to-date basis, software revenue attributable to energy transition was 24% compared to 22% in the same period of the previous year, evidence of ongoing demand. CMG operating segment operating profit in the second quarter increased to $8.8 million, from $7.6 million in the prior year period, driven by a reduction in stock-based compensation expense due to lower share price, partially offset by increased expenses including headcount and headcount related costs, increased amortization of acquired IP, and other corporate costs. Sequentially from Q1 2025, CMG operating segment Adjusted Operating Profit increased by 3%. CMG operating segment Adjusted EBITDA Margin in the quarter decreased to 45% from 48% in the prior fiscal year, due primarily to higher expenses described above, but represented a small sequential increase from 42% in the first quarter of 2025. Maintaining our customary high renewal rates in the fourth quarter will be critical to achieving our revenue and profitability objectives.
In the BHV operating segment, total software revenue and professional services revenue were materially unchanged from the first quarter of 2025. A small decrease in operating expenses resulted in an Adjusted EBITDA and Adjusted EBITDA Margin of ($0.1 million), or (2%), a slight improvement from ($0.3 million) and (4%) respectively compared to the first quarter of this year. We do not expect material growth in professional services revenue throughout the balance of the year, however software revenue is expected to increase in the second half of 2025, compared to the first half of 2025, as we begin contract renewals in these quarters. The impact of this revenue recognition is expected to drive a commensurate increase in profitability. This pattern of revenue recognition and profitability aligns with our reporting since acquiring BHV. We would continue to encourage shareholders to evaluate BHV operating segment profitability on a full-year basis.
SUMMARY OF FINANCIAL PERFORMANCE
| CMG | BHV | Consolidated | ||||||||||
| Three months ended September 30, ($ thousands, except per share data) |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||
|
Annuity/maintenance licenses |
16,794 |
17,441 |
1,508 |
169 |
18,302 |
17,610 |
||||||
| Annuity license fee | – | – | 71 | – | 71 | – | ||||||
| Perpetual licenses | 2,149 | 1,176 | – | – | 2,149 | 1,176 | ||||||
| Total software license revenue | 18,943 | 18,617 | 1,579 | 169 | 20,522 | 18,786 | ||||||
| Professional services | 3,382 | 3,452 | 5,563 | 395 | 8,945 | 3,847 | ||||||
| Total revenue | 22,325 | 22,069 | 7,142 | 564 | 29,467 | 22,633 | ||||||
| Total revenue growth | 1 | % | 22 | % | 1166 | % | 30 | % | 25 | % | ||
| Annuity/maintenance licenses growth | (4 | %) | 18 | % | 792 | % | 4 | % | 19 | % | ||
| Cost of revenue | 2,332 | 2,271 | 3,360 | 222 | 5,692 | 2,493 | ||||||
| Operating expenses | ||||||||||||
| Sales & marketing | 3,363 | 3,362 | 866 | 22 | 4,229 | 3,384 | ||||||
| Research and development | 4,463 | 4,651 | 1,965 | 116 | 6,428 | 4,767 | ||||||
| General & administrative | 3,389 | 4,214 | 1,299 | 49 | 4,688 | 4,263 | ||||||
| Operating expenses | 11,215 | 12,227 | 4,130 | 187 | 15,345 | 12,414 | ||||||
| Operating profit | 8,778 | 7,571 | (348 | ) | 155 | 8,430 | 7,726 | |||||
| Operating Margin | 39 | % | 34 | % | (5 | %) | 27 | % | 29 | % | 34 | % |
| Acquisition related expenses | 395 | 573 | 181 | – | 576 | 573 | ||||||
| Amortization of acquired intangible assets | 575 | 124 | 89 | 5 | 664 | 129 | ||||||
| Stock-based compensation | 232 | 2,291 | – | – | 232 | 2,291 | ||||||
| Adjusted operating profit (1) | 9,980 | 10,559 | (78 | ) | 160 | 9,902 | 10,719 | |||||
| Adjusted Operating Margin (1) | 45 | % | 48 | % | (1 | %) | 28 | % | 34 | % | 47 | % |
| Net income (loss) | 4,630 | 6,423 | (867 | ) | 93 | 3,763 | 6,516 | |||||
| Adjusted EBITDA (1) | 10,069 | 10,584 | (132 | ) | 134 | 9,937 | 10,718 | |||||
| Adjusted EBITDA Margin (1) | 45 | % | 48 | % | (2 | %) | 24 | % | 34 | % | 47 | % |
| Earnings per share – basic | 0.05 | 0.08 | ||||||||||
| Free Cash Flow per share – basic (1) | 0.07 | 0.14 | ||||||||||
| CMG | BHV | Consolidated | ||||||||||
| Six months ended September 30, ($ thousands, except per share data) |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||
|
Annuity/maintenance licenses |
34,551 |
33,048 |
3,086 |
169 |
37,637 |
33,217 |
||||||
| Annuity license fee | – | – | 249 | – | 249 | – | ||||||
| Perpetual licenses | 4,259 | 3,025 | – | – | 4,259 | 3,025 | ||||||
| Total software license revenue | 38,810 | 36,073 | 3,335 | 169 | 42,145 | 36,242 | ||||||
| Professional services | 6,662 | 6,744 | 11,183 | 395 | 17,845 | 7,139 | ||||||
| Total revenue | 45,472 | 42,817 | 14,518 | 564 | 59,990 | 43,381 | ||||||
| Total revenue growth | 6 | % | 25 | % | 2474 | % | 38 | % | 27 | % | ||
| Annuity/maintenance licenses growth | 5 | % | 17 | % | 1726 | % | 13 | % | 17 | % | ||
| Cost of revenue | 4,952 | 4,176 | 6,932 | 222 | 11,884 | 4,398 | ||||||
| Operating expenses | ||||||||||||
| Sales & marketing | 7,504 | 5,717 | 1,656 | 22 | 9,160 | 5,739 | ||||||
| Research and development | 10,514 | 8,703 | 4,159 | 116 | 14,673 | 8,819 | ||||||
| General & administrative | 7,533 | 6,886 | 2,644 | 49 | 10,177 | 6,935 | ||||||
| Operating expenses | 25,551 | 21,306 | 8,459 | 187 | 34,010 | 21,493 | ||||||
| Operating profit | 14,969 | 17,335 | (873 | ) | 155 | 14,096 | 17,490 | |||||
| Operating Margin | 33 | % | 40 | % | (6 | %) | 27 | % | 23 | % | 40 | % |
| Acquisition related expenses | 395 | 573 | 369 | – | 764 | 573 | ||||||
| Amortization of acquired intangible assets | 1,151 | 181 | 178 | 5 | 1,329 | 186 | ||||||
| Stock-based compensation | 3,138 | 2,395 | – | – | 3,138 | 2,395 | ||||||
| Adjusted operating profit (1) | 19,653 | 20,484 | (325 | ) | 160 | 19,327 | 20,644 | |||||
| Adjusted Operating Margin (1) | 43 | % | 48 | % | (2 | %) | 28 | % | 32 | % | 48 | % |
| Net income (loss) | 9,995 | 13,327 | (2,268 | ) | 93 | 7,727 | 13,420 | |||||
| Adjusted EBITDA (1) | 19,771 | 20,532 | (397 | ) | 134 | 19,374 | 20,666 | |||||
| Adjusted EBITDA Margin (1) | 43 | % | 48 | % | (3 | %) | 24 | % | 32 | % | 48 | % |
| Earnings per share – basic | 0.09 | 0.17 | ||||||||||
| Free Cash Flow per share – basic (1) | 0.14 | 0.23 | ||||||||||
| (1) Non-IFRS financial measures are defined in the “Non-IFRS Financial Measures” section of the MD&A. | ||||||||||||
Q2 2025 Dividend
Computer Modelling Group’s Board approved a cash dividend of $0.05 per Common Share. The dividend will be paid on December 13, 2024, to shareholders of record at the close of business on December 5, 2024.
All dividends paid by Computer Modelling Group Ltd. to holders of Common Shares in the capital of the Company will be treated as eligible dividends within the meaning of such term in section 89(1) of the Income Tax Act (Canada), unless otherwise indicated.
NON-IFRS FINANCIAL MEASURES AND RECONCILIATION OF NON-IFRS MEASURES
Free Cash Flow Reconciliation to Funds Flow from Operations
Free cash flow is a non-IFRS financial measure that is calculated as funds flow from operations less capital expenditures and repayment of lease liabilities. Free Cash Flow per share is calculated by dividing free cash flow by the number of weighted average outstanding shares during the period. Management believes that this measure provides useful supplemental information about operating performance and liquidity, as it represents cash generated during the period, regardless of the timing of collection of receivables and payment of payables, which may reduce comparability between periods. Management uses free cash flow and free cash flow per share to help measure the capacity of the Company to pay dividends and invest in business growth opportunities.
| Fiscal 2023 | Fiscal 2024 | Fiscal 2025 | ||||||||||||||
| ($ thousands, unless otherwise stated) | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||
| Funds flow from operations | 8,169 | 7,656 | 7,920 | 11,491 | 8,477 | 10,367 | 6,515 | 7,101 | ||||||||
| Capital expenditures(1) | (211 | ) | (1,707 | ) | (45 | ) | (51 | ) | (459 | ) | (95 | ) | (93 | ) | (236 | ) |
| Repayment of lease liabilities | (413 | ) | (553 | ) | (412 | ) | (412 | ) | (728 | ) | (803 | ) | (743 | ) | (769 | ) |
| Free Cash Flow | 7,545 | 5,396 | 7,463 | 11,028 | 7,290 | 9,469 | 5,679 | 6,096 | ||||||||
| Weighted average shares – basic (thousands) | 80,511 | 80,603 | 80,685 | 80,834 | 81,067 | 81,314 | 81,476 | 81,887 | ||||||||
| Free Cash Flow per share – basic | 0.09 | 0.07 | 0.09 | 0.14 | 0.09 | 0.12 | 0.07 | 0.07 | ||||||||
(1) Capital expenditures include cash consideration for USI acquisition in Q4 2023.
Free Cash Flow per share has decreased by 50% and 39%, respectively, for the three and six months ended September 30, 2024, compared to the same periods of the previous fiscal year. The decrease in Free Cash Flow is primarily a result of negative cash flow generated in the BHV segment, which primarily relates to reduced net income in the period due to revenue recognition being skewed towards the third and fourth quarters of the fiscal year. Additionally, the repayment of lease liabilities has increased compared to the prior year comparative quarter as a result of the acquisition of BHV, resulting in a further decrease in free cash flow for the three and six months ended September 30, 2024, compared to the same periods of the previous fiscal year.
Adjusted EBITDA and Adjusted EBITDA Margin
| CMG | BHV | Consolidated | ||||||||||
| Three months ended September 30, ($ thousands) |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||
| Net income (loss) | 4,630 | 6,423 | (867 | ) | 93 | 3,763 | 6,516 | |||||
| Add (deduct): | ||||||||||||
| Depreciation and amortization | 1,539 | 1,014 | 408 | 7 | 1,947 | 1,021 | ||||||
| Stock-based compensation | 232 | 2,291 | – | – | 232 | 2,291 | ||||||
| Acquisition related expenses | 395 | 573 | 181 | – | 576 | 573 | ||||||
| Loss on contingent consideration | 2,112 | – | – | – | 2,112 | – | ||||||
| Income and other tax expense | 1,802 | 2,239 | 442 | 38 | 2,244 | 2,277 | ||||||
| Interest income | (680 | ) | (692 | ) | (81 | ) | – | (761 | ) | (692 | ) | |
| Foreign exchange loss (gain) | 453 | (856 | ) | 140 | – | 593 | (856 | ) | ||||
| Repayment of lease liabilities | (414 | ) | (408 | ) | (355 | ) | (4 | ) | (769 | ) | (412 | ) |
| Adjusted EBITDA (1) | 10,069 | 10,584 | (132 | ) | 134 | 9,937 | 10,718 | |||||
| Adjusted EBITDA Margin (1) | 45 | % | 48 | % | (2 | %) | 24 | % | 34 | % | 47 | % |
(1) This is a non-IFRS financial measure. Refer to definition of the measures above.
| CMG | BHV | Consolidated | ||||||||||
| Six months ended September 30, ($ thousands) |
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||
| Net income (loss) | 9,995 | 13,327 | (2,268 | ) | 93 | 7,727 | 13,420 | |||||
| Add (deduct): | ||||||||||||
| Depreciation and amortization | 3,037 | 1,975 | 793 | 7 | 3,830 | 1,982 | ||||||
| Stock-based compensation | 3,138 | 2,395 | – | – | 3,138 | 2,395 | ||||||
| Acquisition related expenses | 395 | 573 | 369 | – | 764 | 573 | ||||||
| Loss on contingent consideration | 1,913 | – | – | – | 1,913 | – | ||||||
| Income and other tax expense | 3,416 | 4,483 | 1,316 | 38 | 4,732 | 4,521 | ||||||
| Interest income | (1,460 | ) | (1,452 | ) | (179 | ) | – | (1,639 | ) | (1,452 | ) | |
| Foreign exchange loss (gain) | 198 | 51 | 223 | – | 421 | 51 | ||||||
| Repayment of lease liabilities | (861 | ) | (820 | ) | (651 | ) | (4 | ) | (1,512 | ) | (824 | ) |
| Adjusted EBITDA (1) | 19,771 | 20,532 | (397 | ) | 134 | 19,374 | 20,666 | |||||
| Adjusted EBITDA Margin (1) | 43 | % | 48 | % | (3 | %) | 24 | % | 32 | % | 48 | % |
(1) This is a non-IFRS financial measure. Refer to definition of the measures above.
Adjusted EBITDA Margin was 34% and 32% for both the three and six months ended September 30, 2024, respectively, a decrease from 47% and 48%, respectively for the three and six months ended September 30, 2023.
CMG’s Adjusted EBITDA Margin is 45% and 43% for the three and six months ended September 30, 2024, respectively, compared to 48% for both the three and six months ended September 30, 2023, primarily due to an increase in operating expenses as a result of an increase in headcount and headcount related costs and other corporate costs. Refer to the “Operating Expenses” section of the MD&A for further detail on the increase in operating expenses by category.
BHV’s Adjusted EBITDA Margin for the three and six months ended September 30, 2024, is (2%) and (3%), respectively, compared to 24% for the three and six months ended September 30, 2023. Contract renewals at BHV typically occur in the third and fourth quarters, resulting in Adjusted EBITDA fluctuation on a quarterly basis. As a result of annuity license fee revenue recognition being skewed towards the last two quarters of the fiscal year, Adjusted EBITDA is expected to be lower in the first and second quarters of the fiscal year.
Condensed Consolidated Statements of Financial Position
| UNAUDITED (thousands of Canadian $) | September 30, 2024 | March 31, 2024 | April 1, 2023 | |||
|
Assets |
||||||
| Current assets: | ||||||
| Cash | 61,373 | 63,083 | 66,850 | |||
| Restricted cash | 96 | 142 | – | |||
| Trade and other receivables | 34,704 | 36,550 | 23,910 | |||
| Prepaid expenses | 2,213 | 2,321 | 1,060 | |||
| Prepaid income taxes | 986 | 3,841 | 444 | |||
| 99,372 | 105,937 | 92,264 | ||||
| Intangible assets | 22,354 | 23,683 | 1,321 | |||
| Right-of-use assets | 29,628 | 29,072 | 30,733 | |||
| Property and equipment | 9,496 | 9,877 | 10,366 | |||
| Goodwill | 4,426 | 4,399 | – | |||
| Deferred tax asset | 136 | – | 2,444 | |||
| Total assets | 165,412 | 172,968 | 137,128 | |||
|
Liabilities and shareholders’ equity |
||||||
| Current liabilities: | ||||||
| Trade payables and accrued liabilities | 13,920 | 18,551 | 11,126 | |||
| Income taxes payable | 1,422 | 2,136 | 33 | |||
| Acquisition holdback payable | 2,288 | 2,292 | – | |||
| Acquisition earnout | 3,416 | – | – | |||
| Deferred revenue | 32,274 | 41,120 | 34,797 | |||
| Lease liabilities | 2,263 | 2,566 | 1,829 | |||
| 55,583 | 66,665 | 47,785 | ||||
| Lease liabilities | 35,521 | 34,395 | 36,151 | |||
| Stock-based compensation liabilities | 253 | 624 | 742 | |||
| Acquisition earnout | – | 1,503 | – | |||
| Other long-term liabilities | 200 | 305 | – | |||
| Deferred tax liabilities | 1,776 | 1,661 | – | |||
| Total liabilities | 93,333 | 105,153 | 84,678 | |||
|
Shareholders’ equity: |
||||||
| Share capital | 91,083 | 87,304 | 81,820 | |||
| Contributed surplus | 15,892 | 15,667 | 15,471 | |||
| Cumulative translation adjustment | 343 | (367 | ) | – | ||
| Deficit | (35,239 | ) | (34,789 | ) | (44,841 | ) |
| Total shareholders’ equity | 72,079 | 67,815 | 52,450 | |||
| Total liabilities and shareholders’ equity | 165,412 | 172,968 | 137,128 |
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) | 2024 | 2023 | 2024 | 2023 | ||||
| Revenue Cost of revenue |
29,467 5,692 |
22,633 2,493 |
59,990 11,884 |
43,381 4,398 |
||||
| Gross profit | 23,775 | 20,140 | 48,106 | 38,983 | ||||
| Operating expenses | ||||||||
| Sales and marketing | 4,229 | 3,384 | 9,160 | 5,739 | ||||
| Research and development | 6,428 | 4,767 | 14,673 | 8,819 | ||||
| General and administrative | 4,688 | 4,263 | 10,177 | 6,935 | ||||
| 15,345 | 12,414 | 34,010 | 21,493 | |||||
| Operating profit | 8,430 | 7,726 | 14,096 | 17,490 | ||||
| Finance income | 761 | 1,548 | 1,639 | 1,452 | ||||
| Finance costs | (1,072 | ) | (481 | ) | (1,363 | ) | (1,001 | ) |
| Change in fair value of contingent consideration | (2,112 | ) | – | (1,913 | ) | – | ||
| Profit before income and other taxes | 6,007 | 8,793 | 12,459 | 17,941 | ||||
| Income and other taxes | 2,244 | 2,277 | 4,732 | 4,521 | ||||
| Net income for the period | 3,763 | 6,516 | 7,727 | 13,420 | ||||
| Other comprehensive income: | ||||||||
| Foreign currency translation adjustment | (189 | ) | 4 | 710 | 4 | |||
| Other comprehensive income | (189 | ) | 4 | 710 | 4 | |||
| Total comprehensive income | 3,574 | 6,520 | 8,437 | 13,424 | ||||
| Net income per share – basic | 0.05 | 0.08 | 0.09 | 0.17 | ||||
| Net income per share – diluted | 0.05 | 0.08 | 0.09 | 0.16 | ||||
| Dividend per share | 0.05 | 0.05 | 0.10 | 0.10 | ||||
Condensed Consolidated Statements of Cash Flows
| Three months ended September 30 |
Six months ended September 30 |
|||||||
| UNAUDITED (thousands of Canadian $) | 2024 | 2023 | 2024 | 2023 | ||||
| Operating activities | ||||||||
| Net income | 3,763 | 6,516 | 7,727 | 13,420 | ||||
| Adjustments for: | ||||||||
| Depreciation and amortization of property, equipment, right- of use assets |
1,283 | 892 | 2,501 | 1,796 | ||||
| Amortization of intangible assets | 664 | 129 | 1,329 | 186 | ||||
| Deferred income tax expense (recovery) | 575 | 2,028 | (78 | ) | 1,978 | |||
| Stock-based compensation | (2,106 | ) | 1,604 | (214 | ) | 1,709 | ||
| Foreign exchange and other non-cash items | 810 | 322 | 438 | 322 | ||||
| Change in fair value of contingent consideration | 2,112 | – | 1,913 | – | ||||
| Funds flow from operations | 7,101 | 11,491 | 13,616 | 19,411 | ||||
| Movement in non-cash working capital: | ||||||||
| Trade and other receivables | (11,965 | ) | (581 | ) | 1,846 | 3,301 | ||
| Trade payables and accrued liabilities | 264 | 405 | (3,067 | ) | (2,389 | ) | ||
| Prepaid expenses and other assets | 74 | 291 | 108 | 290 | ||||
| Income taxes receivable (payable) | 687 | (1,612 | ) | 2,111 | (1,251 | ) | ||
| Deferred revenue | 1,384 | 3,044 | (8,846 | ) | (5,137 | ) | ||
| Change in non-cash working capital | (9,556 | ) | 1,547 | (7,848 | ) | (5,186 | ) | |
| Net cash provided by (used in) operating activities | (2,455 | ) | 13,038 | 5,768 | 14,225 | |||
| Financing activities | ||||||||
| Repayment of acquired line of credit | – | (2,012 | ) | – | (2,012 | ) | ||
| Proceeds from issuance of common shares | 480 | 512 | 2,729 | 1,213 | ||||
| Repayment of lease liabilities | (769 | ) | (412 | ) | (1,512 | ) | (824 | ) |
| Dividends paid | (4,101 | ) | (4,042 | ) | (8,177 | ) | (8,081 | ) |
| Net cash used in financing activities | (4,390 | ) | (5,954 | ) | (6,960 | ) | (9,704 | ) |
| Investing activities | ||||||||
| Corporate acquisition, net of cash acquired | – | (23,050 | ) | – | (23,050 | ) | ||
| Property and equipment additions | (236 | ) | (51 | ) | (329 | ) | (96 | ) |
| Net cash used in investing activities | (236 | ) | (23,101 | ) | (329 | ) | (23,146 | ) |
| Increase (decrease) in cash | (7,081 | ) | (16,017 | ) | (1,521 | ) | (18,625 | ) |
| Effect of foreign exchange on cash | (638 | ) | – | (189 | ) | – | ||
| Cash, beginning of period | 69,092 | 64,242 | 63,083 | 66,850 | ||||
| Cash, end of period | 61,373 | 48,225 | 61,373 | 48,225 | ||||
| Supplementary cash flow information | ||||||||
| Interest received | 761 | 692 | 1,639 | 1,452 | ||||
| Interest paid | 479 | 481 | 942 | 950 | ||||
| Income taxes paid | 4,229 | 2,580 | 5,725 | 4,358 | ||||
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, Oslo, Stavanger, Kaiserslautern, Oxford, Dubai, Bogota, Rio de Janeiro, Bengaluru, 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 six months ended September 30, 2024, can be obtained from our website www.cmgl.ca. The documents will also be available under CMG Group’s SEDAR profile www.sedarplus.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.
