Constellation Software Inc. and Topicus.com Inc. Announce Results for Topicus.com Inc. for the Third Quarter Ended September 30, 2024

Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Topicus.com Inc.

Thu, Oct 31, 2024, 3:04 PM 16 min read

TORONTO, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV:TOI) in a joint release with Constellation Software Inc. (TSX:CSU) today announced financial results for Topicus.com Inc. (“Topicus” or the “Company”) for the third quarter ended September 30, 2024. Please note that all amounts referred to in this press release are in Euros unless otherwise stated.

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 September 30, 2024 and the accompanying notes, our Management’s Discussion and Analysis for the three and nine months ended September 30, 2024 and the Annual Consolidated Financial Statements of Topicus.com Inc. for the year ended December 31, 2023, which we prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s annual Management’s Discussion and Analysis for the year ended December 31, 2023, which can be found on SEDAR+ at www.sedarplus.com and on Topicus.com Inc.’s website www.topicus.com. Additional information about Topicus.com Inc. is also available on SEDAR+ at www.sedarplus.com.

Q3 2024 Headlines:

Revenue increased 12% (4% organic growth) to €312.2 million compared to €278.8 million in Q3 2023.
Net income increased 34% to €38.0 million (€0.28 on a diluted per share basis) from €28.3 million (€0.22 on a diluted per share basis).
Acquisitions were completed for aggregate cash consideration of €18.2 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of €8.5 million resulting in total consideration of €26.7 million.
Cash flows from operations (“CFO”) increased €6.2 million to €31.7 million compared to €25.5 million in Q3 2023.
Free cash flow available to shareholders¹ (“FCFA2S”) increased €3.9 million to €10.4 million compared to €6.5 million in Q3 2023.

Total revenue for the quarter ended September 30, 2024 was €312.2 million, an increase of 12%, or €33.4 million, compared to €278.8 million for the comparable period in 2023. For the first nine months of 2024 total revenues were €930.0 million, an increase of 14%, or €114.7 million, compared to €815.3 million for the comparable period in 2023. The increase for both the three and nine-month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 4% for each of the periods. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

Net income for the quarter ended September 30, 2024 increased €9.7 million to €38.0 million compared to €28.3 million for the same period in 2023. On a per share basis, this translated into net income per basic and diluted share of €0.28 in the quarter ended September 30, 2024 compared to net income per basic and diluted share of €0.22 for the same period in 2023. For the nine months ended September 30, 2024 net income increased €20.4 million to €93.3 million compared to €72.9 million for the same period in 2023. On a per share basis, this translated into net income per basic and diluted share of €0.71 in the nine months ended September 30, 2024 compared to €0.57 for the same period in 2023.

For the quarter ended September 30, 2024, CFO increased €6.2 million to €31.7 million compared to €25.5 million for the same period in 2023 representing an increase of 24%. For the nine months ended September 30, 2024, CFO increased €83.9 million to €268.0 million compared to €184.1 million for the same period in 2023 representing an increase of 46%.

For the quarter ended September 30, 2024, FCFA2S increased €3.9 million to €10.4 million compared to €6.5 million for the same period in 2023 representing an increase of 61%. For the nine months ended September 30, 2024, FCFA2S increased €46.2 million to €140.7 million compared to €94.5 million for the same period in 2023 representing an increase of 49%.

Forward Looking Statements

Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Topicus or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Topicus assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

Non-IFRS Measures

Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, dividends paid to redeemable preferred securities holders, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. Topicus believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Topicus does not make any acquisitions, or investments, and does not repay any debts. While Topicus could use the FCFA2S to pay dividends or repurchase shares, Topicus’ objective is to invest all of our FCFA2S in acquisitions which meet Topicus’ hurdle rate.

FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

The following table reconciles FCFA2S to net cash flows from operating activities:

		Three months ended September 30,					Nine months ended September 30,
		2024		2023			2024		2023
	(€ in millions)					(€ in millions)

Net cash flows from operating activities		31.7		25.5			268.0		184.1
Adjusted for:
Interest paid on lease obligations		(0.5	)	(0.4	)		(1.5	)	(1.0	)
Interest paid on other facilities		(5.6	)	(4.8	)		(15.4	)	(11.4	)
Proceeds from sale of interest rate cap		-		(0.7	)		-		4.8
Credit facility transaction costs		(0.7	)	-			(1.0	)	(0.2	)
Payments of lease obligations		(6.1	)	(5.5	)		(18.1	)	(16.3	)
Property and equipment purchased		(2.0	)	(1.4	)		(6.4	)	(5.2	)

		16.9		12.8			225.7		154.8
Less amount attributable to non-controlling interests		(6.5	)	(6.3	)		(85.0	)	(60.3	)

Free cash flow available to shareholders		10.4		6.5			140.7		94.5

Due to rounding, certain totals may not foot.

About Topicus.com Inc.

Topicus’ subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol "TOI". Topicus acquires, manages and builds vertical market software businesses.

About Constellation Software Inc.

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

For further information:
Jamal Baksh
Chief Financial Officer
jbaksh@csisoftware.com
info@topicus.com
www.topicus.com

SOURCE: TOPICUS.COM INC.



Topicus.com Inc.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
		September 30, 2024	December 31, 2023	September 30, 2023

Assets

Current assets:
	Cash	234,603	179,059	161,707
	Accounts receivable	107,575	134,079	114,818
	Unbilled revenue	46,394	44,838	48,132
	Inventories	5,262	4,517	4,797
	Other assets	63,830	55,250	59,685
		457,663	417,742	389,139

Non-current assets:
	Property and equipment	20,730	20,030	19,437
	Right of use assets	67,189	61,066	55,631
	Deferred income taxes	20,468	16,412	6,392
	Other assets	12,942	13,824	13,540
	Intangible assets	927,295	906,082	913,333
		1,048,624	1,017,415	1,008,334

Total assets		1,506,286	1,435,157	1,397,473

Liabilities and Shareholders' Equity

Current liabilities:
	Topicus Revolving Credit Facility and current portion of term and other loans	295,855	161,077	175,845
	Accounts payable and accrued liabilities	184,555	211,423	172,183
	Deferred revenue	202,880	138,854	179,833
	Provisions	1,578	1,708	1,208
	Acquisition holdback payables	14,315	12,292	9,875
	Lease obligations	21,544	20,614	19,055
	Income taxes payable	21,616	20,068	19,689
		742,343	566,035	577,688

Non-current liabilities:
	Term and other loans	49,259	64,615	65,468
	Deferred income taxes	142,913	137,155	135,164
	Acquisition holdback payables	10,439	1,339	1,529
	Lease obligations	46,788	41,524	37,665
	Other liabilities	44,155	32,005	27,733
		293,554	276,639	267,559

Total liabilities		1,035,897	842,674	845,247


Shareholders' Equity:
	Capital stock	39,412	39,412	39,412
	Accumulated other comprehensive income (loss)	2,649	2,390	839
	Retained earnings (deficit)	232,796	297,382	273,519
	Non-controlling interests	195,532	253,299	238,456
		470,389	592,483	552,226



Total liabilities and shareholders' equity		1,506,286	1,435,157	1,397,473

Topicus.com Inc.
Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)


Unaudited
		Three months ended September 30,				Nine months ended September 30,
		2024		2023		2024		2023

Revenue
License		8,650		7,513		25,984		22,338
Professional services		76,318		72,104		230,632		213,418
Hardware and other		4,494		3,906		15,081		10,291
Maintenance and other recurring		222,760		195,286		658,282		569,276
		312,222		278,810		929,979		815,322
Expenses
Staff		164,506		152,862		515,083		458,811
Hardware		3,204		2,988		11,395		7,111
Third party license, maintenance and professional services		23,737		22,265		70,794		64,153
Occupancy		2,674		679		8,063		5,705
Travel, telecommunications, supplies, software and equipment		11,789		11,140		36,675		31,407
Professional fees		4,991		3,815		15,265		12,653
Other, net		5,008		3,303		13,373		10,481
Depreciation		8,430		7,718		24,880		22,708
Amortization of intangible assets		34,255		31,874		99,337		89,820
		258,594		236,644		794,865		702,848

Impairment of intangible and other non-financial assets		-		-		633		-
Bargain purchase (gain)		-		-		(323	)	-
Finance and other expenses (income)		6,821		5,308		18,255		14,705
		6,821		5,308		18,565		14,705

Income (loss) before income taxes		46,807		36,857		116,549		97,769

Current income tax expense (recovery)		16,168		14,317		44,698		41,543
Deferred income tax expense (recovery)		(7,390	)	(5,805	)	(21,429	)	(16,699	)
Income tax expense (recovery)		8,778		8,512		23,269		24,844

Net income (loss)		38,029		28,345		93,280		72,926

Net income (loss) attributable to:
Equity holders of Topicus		23,340		17,983		58,447		46,455
Non-controlling interests		14,689		10,362		34,834		26,471
Net income (loss)		38,029		28,345		93,280		72,926

Weighted average shares
	Basic shares outstanding	82,912,026		81,889,764		82,664,754		81,889,764
	Diluted shares outstanding	129,841,819		129,841,819		129,841,819		129,841,819

Earnings (loss) per common share of Topicus
	Basic	0.28		0.22		0.71		0.57
	Diluted	0.28		0.22		0.71		0.57

Topicus.com Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)


Unaudited
	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024	2023

Net income (loss)	38,029		28,345		93,280	72,926

Items that are or may be reclassified subsequently to net income (loss):

Foreign currency translation differences from foreign operations and other	(2,365	)	481		806	2,684

Other comprehensive (loss) income for the period, net of income tax	(2,365	)	481		806	2,684

Total comprehensive income (loss) for the period	35,664		28,826		94,086	75,610

Total other comprehensive income (loss) attributable to:
Equity holders of Topicus	(1,019	)	(5	)	258	1,078
Non-controlling interests	(1,346	)	486		547	1,606
Total other comprehensive income (loss)	(2,365	)	481		806	2,684

Total comprehensive income (loss) attributable to:
Equity holders of Topicus	22,321		17,978		58,705	47,533
Non-controlling interests	13,342		10,848		35,381	28,076
Total comprehensive income (loss)	35,664		28,826		94,086	75,610


Topicus.com Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
Nine months ended September 30, 2024

		Capital Stock	Accumulated other comprehensive (loss) income	Retained earnings (Deficit)		Total		Non-controlling interests		Total equity

Balance at January 1, 2024		39,412	2,390	297,382		339,185		253,299		592,483

Total comprehensive income (loss) for the period:

Net income (loss)		-	-	58,447		58,447		34,834		93,280

Other comprehensive income (loss)

Foreign currency translation differences from foreign operations and other, net of income tax		-	258	-		258		547		806


Total other comprehensive income (loss) for the period		-	258	-		258		547		806

Total comprehensive income (loss) for the period		-	258	58,447		58,705		35,381		94,086

Transactions with owners, recorded directly in equity

	Other movements in non-controlling interests and equity	-	-	(188	)	(188	)	(305	)	(493	)

	Exchange of Topicus Coop ordinary units held by non-controlling interests to subordinate voting shares of Topicus	-	-	4,797		4,797		(4,797	)	-

	Dividends paid to shareholders of the Company	-	-	(127,641	)	(127,641	)	-		(127,641	)

	Return of capital to non-controlling interests							(9,048	)	(9,048	)

	Dividends paid to non-controlling interests	-	-	-		-		(78,998	)	(78,998	)

Balance at September 30, 2024		39,412	2,649	232,796		274,857		195,532		470,389

Topicus.com Inc.
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity (Deficiency)
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
Nine months ended September 30, 2023


		Capital Stock	Accumulated other comprehensive (loss) income		Retained earnings (deficit)	Total	Non-controlling interests		Total equity

Balance at January 1, 2023		39,412	(232	)	226,919	266,099	201,685		467,784

Total comprehensive income (loss) for the period:

Net income (loss)		-	-		46,455	46,455	26,471		72,926

Other comprehensive income (loss)

Foreign currency translation differences from foreign operations and other, net of income tax		-	1,078		-	1,078	1,606		2,684

Total other comprehensive income (loss) for the period		-	1,078		-	1,078	1,606		2,684

Total comprehensive income (loss) for the period		-	1,078		46,455	47,533	28,076		75,610


Transactions with owners, recorded directly in equity

	Other movements in non-controlling interests and equity	-	(7	)	144	138	(196	)	(58	)

	Contribution by non-controlling interests	-	-		-	-	9,617		9,617

	Dividends paid to non-controlling interests	-	-		-	-	(726	)	(726	)

Balance at September 30, 2023		39,412	839		273,519	313,770	238,456		552,226

Topicus.com Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of euros, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
			Three months ended September 30,				Nine months ended September 30,
			2024		2023		2024		2023

Cash flows from (used in) operating activities:
	Net income (loss)		38,029		28,345		93,280		72,926
	Adjustments for:
		Depreciation	8,430		7,718		24,880		22,708
		Amortization of intangible assets	34,255		31,874		99,337		89,820
		Impairment of intangible and other non-financial assets	-		-		633		-
		Bargain purchase (gain)	-		-		(323	)	-
		Finance and other expenses (income)	6,821		5,308		18,255		14,705
		Income tax expense (recovery)	8,778		8,512		23,269		24,844
	Change in non-cash operating assets and liabilities exclusive of effects of business combinations		(49,742	)	(42,776	)	46,296		(1,642	)
	Income taxes (paid) received		(14,839	)	(13,463	)	(37,588	)	(39,216	)
	Net cash flows from (used in) operating activities		31,732		25,518		268,039		184,145

Cash flows from (used in) financing activities:
	Interest paid on lease obligations		(524	)	(375	)	(1,461	)	(1,029	)
	Interest paid on other facilities		(5,553	)	(4,801	)	(15,441	)	(11,366	)
	Proceeds from sale of interest rate cap		-		(707	)	-		4,809
	Net increase (decrease) in Topicus Revolving Credit Facility		50,000		5,000		135,000		40,000
	Proceeds from issuance of term and other loans		-		4,954		29,733		31,172
	Repayment of loan from CSI		-		(29,878	)	-		(29,878	)
	Increase (decrease) in loan from Vela Software Group		(300	)	1,810		(300	)	1,342
	Contribution from Vela Software Group into GeoSoftware and Geoactive		-		9,617		-		9,617
	Return of capital to non-controlling interests		-		-		(9,048	)	-
	Repayments of term and other loans		(39,014	)	(4,232	)	(44,681	)	(77,173	)
	Credit facility transaction costs		(657	)	-		(971	)	(238	)
	Payments of lease obligations		(6,124	)	(5,475	)	(18,057	)	(16,280	)
	Other financing activities		(356	)	(24	)	(356	)	(24	)
	Dividends paid to non-controlling interests		(1,809	)	-		(78,997	)	(726	)
	Dividends paid to shareholders of the Company		-		-		(127,641	)	-
	Net cash flows from (used in) in financing activities		(4,337	)	(24,112	)	(132,222	)	(49,775	)

Cash flows from (used in) investing activities:
	Acquisition of businesses		(18,221	)	(7,190	)	(65,052	)	(95,238	)
	Cash obtained with acquired businesses		2,325		1,443		14,444		7,026
	Post-acquisition settlement payments, net of receipts		(6,707	)	(4,845	)	(15,940	)	(15,900	)
	(Increase) decrease in restricted cash		(1,525	)	-		(7,525	)	-
	Property and equipment purchased		(1,960	)	(1,381	)	(6,366	)	(5,249	)
	Net cash flows from (used in) investing activities		(26,090	)	(11,973	)	(80,439	)	(109,362	)

Effect of foreign currency on cash and cash equivalents			(452	)	(41	)	166		(73	)

Increase (decrease) in cash			854		(10,608	)	55,544		24,935

Cash, beginning of period			233,749		172,315		179,059		136,772

Cash, end of period			234,603		161,707		234,603		161,707

Terms and Privacy Policy

Your Privacy Choices

Utah Privacy Notice

More Info

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

In This Article:

Recommended Stories