Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three and nine months ended December 31, 2023.

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

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

THIRD QUARTER FISCAL 2024 (“Q3 2024”) OVERVIEW

CMG GROUP KEY FINANCIAL METRICS

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

THIRD QUARTER BUSINESS HIGHLIGHTS

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

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

QUARTERLY PERFORMANCE

  Fiscal 2022(2) Fiscal 2023(3) Fiscal 2024(4)
($ thousands, unless otherwise stated) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Annuity/maintenance license 14,306 13,529 14,825 15,533 15,803 15,607 17,610 18,814
Annuity license fee - - - - - - - 3,846
Perpetual license 2,351 386 780 518 1,556 1,849 1,176 584
Total software license revenue 16,657 13,915 15,605 16,051 17,359 17,456 18,786 23,244
Professional services revenue 2,137 2,192 2,477 3,341 2,906 3,292 3,847 9,763
Total revenue 18,794 16,107 18,082 19,392 20,265 20,748 22,633 33,007
Operating expenses 11,482 9,382 10,870 9,262 13,356 9,079 12,414 18,434
Adjusted operating expenses(1) 12,398 7,780 8,529 9,262 13,356 9,079 11,841 17,738
Operating profit 7,312 4,961 5,555 8,435 6,909 9,764 7,726 8,217
Operating profit (%) 39 31 31 43 34 47 34 25
Adjusted operating profit(1) 6,396 6,563 7,896 8,435 6,909 9,764 8,299 8,913
Adjusted operating profit (%) 34 41 44 43 34 47 37 27
Profit before income and other taxes 6,563 5,182 5,989 8,350 7,127 9,148 8,793 8,117
Income and other taxes 1,611 1,369 1,579 2,002 1,901 2,244 2,277 2,507
Net income for the period 4,952 3,813 4,410 6,348 5,226 6,904 6,516 5,610
Adjusted EBITDA(1) 7,879 6,775 8,435 9,498 8,520 9,948 10,718 12,634
Cash dividends declared and paid 4,016 4,017 4,025 4,025 4,032 4,039 4,043 4,059
Funds flow from operations 7,105 4,558 4,974 8,169 7,656 7,920 11,491 8,477
Free cash flow(1) 6,584 4,255 4,505 7,545 5,396 7,463 11,028 7,654
Per share amounts – ($/share)                
Earnings per share (EPS) – basic 0.06 0.05 0.05 0.08 0.07 0.09 0.08 0.07
Earnings per share (EPS) – diluted 0.06 0.05 0.05 0.08 0.06 0.08 0.08 0.07
Cash dividends declared and paid 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Funds flow from operations per share – basic 0.09 0.06 0.06 0.10 0.09 0.10 0.14 0.10
Free cash flow per share – basic(1) 0.08 0.05 0.06 0.09 0.07 0.09 0.14 0.09
(1) This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.
(2) Q4 of fiscal 2022 includes $0.8 million of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(3) Q1, Q2, Q3, and Q4 of fiscal 2023 include $0.2 million, $0.3 million, $0.3 million, and $0.4 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(4) Q1, Q2, and Q3 of fiscal 2024 include $0.1 million, $0.4 million, and $0.2 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.

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

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

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

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

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

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

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

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

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

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

Free Cash Flow Reconciliation to Funds Flow from Operations

  Fiscal 2022   Fiscal 2023   Fiscal 2024  
($ thousands, unless otherwise stated) Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3  
Funds flow from operations 7,105   4,558   4,974   8,169   7,656   7,920   11,491   8,477  
Capital expenditures (62 ) -   (130 ) (211 ) (1,707 ) (45 ) (51 ) (459 )
Repayment of lease liabilities (459 ) (303 ) (339 ) (413 ) (553 ) (412 ) (412 ) (364 )
Free cash flow 6,584   4,255   4,505   7,545   5,396   7,463   11,028   7,654  
Weighted average shares – basic (thousands) 80,335   80,335   80,412   80,511   80,603   80,685   80,834   81,067  
Free cash flow per share – basic 0.08   0.05   0.06   0.09   0.07   0.09   0.14   0.09  

Adjusted EBITDA and Adjusted EBITDA as a % of Total Revenue

  Three months ended December 31   Nine months ended December 31
  2023   2022   $ change   % change   2023   2022   $ change   % change  
($ thousands, except per share data)                              
                               
Net income 5,610   6,348   (738 ) (12 %) 19,030   14,571   4,459   31 %
Add (deduct):                              
Depreciation and amortization 1,555   864   691   80 % 3,537   2,732   805   29 %
Stock-based compensation 2,974   1,094   1,880   172 % 5,370   1,596   3,774   236 %
Acquisition related expenses 696   -   696   100 % 1,269   -   1,269   100 %
Restructuring charges -   -   -   0 % -   3,943   (3,943 ) (100 %)
Income and other tax expense 2,507   2,002   505   25 % 7,028   4,950   2,078   42 %
Interest income (986 ) (548 ) (438 ) 80 % (2,438 ) (1,105 ) (1,333 ) 121 %
Foreign exchange loss (gain) 642   151   491   325 % 693   (923 ) 1,616   (175 %)
Repayment of lease liabilities (364 ) (413 ) 49   (12 %) (1,188 ) (1,055 ) (133 ) 13 %
Adjusted EBITDA 12,634   9,498   3,136   33 % 33,301   24,709   8,592   35 %
Adjusted EBITDA as a % of total revenue 38 % 49 %         44 % 46 %      

OPERATIONS BY REPORTABLE SEGMENT AND ANALYSIS

CMG Three months ended December 31 Nine months ended December 31
  2023   2022   $ change   % change   2023   2022   $ change   % change  
($ thousands)                            
                             
Software license revenue 18,209   16,051   2,158   13 % 54,282   45,571   8,711   19 %
Professional service revenue 3,594   3,341   253   7 % 10,338   8,010   2,238   29 %
Total revenue 21,803   19,392   2,411   12 % 64,620   53,581   11,039   21 %
Cost of revenues 2,288   1,695   593   35 % 6,464   5,116   1,348   26 %
Operating expenses 13,606   9,262   4,344   47 % 34,912   29,514   5,398   18 %
Operating profit 5,909   8,435   (2,526 ) (30 %) 23,244   18,951   4,293   23 %
                             
Adjusted EBITDA:                            
Net Income 3,918   6,348   (2,430 ) (38 %) 17,245   14,571   2,674   18 %
Add (deduct):                            
Depreciation and amortization 1,449   865   584   68 % 3,424   2,732   692   25 %
Stock-based compensation 2,974   1,093   1,881   172 % 5,370   1,596   3,774   236 %
Acquisition related expenses 146   -   146   100 % 719   -   719   100 %
Restructuring charges -   -   -   - -   3,943   (3,943 ) (100 %)
Income and other tax expense 1,805   2,002   (197 ) (10 %) 6,288   4,950   1,338   27 %
Interest income (982 ) (548 ) (434 ) 79 % (2,434 ) (1,105 ) (1,329 ) 120 %
Foreign exchange loss (gain) 701   151   550   364 % 752   (923 ) 1,675   (181 %)
Repayment of lease liabilities (428 ) (413 ) (15 ) 4 % (1,248 ) (1,055 ) (193 ) 18 %
Adjusted EBITDA 9,583   9,498   85   1 % 30,116   24,709   5,407   22 %
Adjusted EBITDA as a % CMG total revenue 44 % 49 %       47 % 46 %      

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

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

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

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

BHV Three months ended December 31 Nine months ended December 31
  2023   2022 $ change   % change   2023   2022 $ change   % change  
($ thousands)                          
                       
Software license revenues 5,035   - 5,035   100 % 5,200   - 5,200   100 %
Professional service revenue 6,169   - 6,169   100 % 6,568   - 6.568   100 %
Total revenue 11,204   - 11,204   100 % 11,768   - 11,768   100 %
Cost of revenues 4,068   - 4,068   100 % 4,290   - 4,290   100 %
Operating expenses 4,828   - 4,828   100 % 5,015   - 5,015   100 %
Operating profit 2,308   - 2,308   100 % 2,463   - 2,463   100 %
                       
Adjusted EBITDA:                      
Net Income 1,692   - 1,692   100 % 1,785   - 1,785   100 %
Depreciation and amortization 106   - 106   100 % 113   - 113   100 %
Acquisition related expenses 550   - 550   100 % 550   - 550   100 %
Income and other tax expense 702   - 702   100 % 740   - 740   100 %
Interest income (4 ) - (4 ) 100 % (4 ) - (4 ) 100 %
Foreign exchange loss (gain) (59 ) - (59 ) 100 % (59 ) - (59 ) 100 %
Repayment of lease liabilities 64   - 64   100 % 60   - 60   100 %
Adjusted EBITDA 3,051   - 3,404   100 % 3,184        
Adjusted EBITDA as a % of BHV total revenue 27 % -       27 % -    

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

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

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

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

CORPORATE PROFILE        

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

QUARTERLY FILINGS AND RELATED QUARTERLY FINANCIAL INFORMATION

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

Condensed Consolidated Statements of Financial Position

UNAUDITED (thousands of Canadian $) December 31, 2023   March 31, 2023  
         
Assets        
Current assets:        
Cash 45,183   66,850  
Restricted cash 158   -  
Trade and other receivables 32,090   23,910  
Prepaid expenses 1,652   1,060  
Prepaid income taxes 2,858   444  
  81,941   92,264  
Intangible assets 24,347   1,321  
Right-of-use assets 30,008   30,733  
Property and equipment 10,072   10,366  
Goodwill 3,787   -  
Deferred tax asset -   2,444  
Total assets 150,155   137,128  
         
Liabilities and shareholders’ equity        
Current liabilities:        
Trade payables and accrued liabilities 13,329   9,883  
Income taxes payable 1,027   33  
Acquisition holdback payable 2,283   -  
Deferred revenue 27,089   34,797  
Lease liabilities 2,738   1,829  
  46,466   46,542  
Lease liabilities 35,017   36,151  
Stock-based compensation liabilities 2,706   1,985  
Acquisition earnout 1,470   -  
Other long-term liabilities 261   -  
Deferred tax liabilities 1,113   -  
Total liabilities 87,033   84,678  
         
Shareholders’ equity:        
Share capital 85,925   81,820  
Contributed surplus 15,596   15,471  
Cumulative translation adjustment (448 ) -  
Deficit (37,951 ) (44,841 )
Total shareholders’ equity 63,122   52,450  
Total liabilities and shareholders' equity 150,155   137,128  

Condensed Consolidated Statements of Operations and Comprehensive Income

  Three months endedDecember 31   Nine months endedDecember 31  
UNAUDITED (thousands of Canadian $ except per share amounts) 2023   2022   2023   2022  
                 
RevenueCost of revenue 33,0076,356   19,3921,695   76,38810,754   53,5815,116  
Gross profit 26,651   17,697   65,634   48,465  
                 
Operating expenses                
Sales and marketing 4,857   2,480   10,596   6,674  
Research and development 7,253   4,096   16,072   13,268  
General and administrative 6,324   2,686   13,259   9,572  
  18,434   9,262   39,927   29,514  
Operating profit 8,217   8,435   25,707   18,951  
                 
Finance income 986   548   2,644   2,028  
Finance costs (1,086 ) (633 ) (2,293 ) (1,458 )
Profit before income and other taxes 8,117   8,350   26,058   19,521  
Income and other taxes 2,507   2,002   7,028   4,950  
                 
Net income for the period 5,610   6,348   19,030   14,571  
                 
Other comprehensive income:                
Foreign currency translation adjustment (453 ) -   (449 ) -  
Other comprehensive income (453 ) -   (449 ) -  
Total comprehensive income 4,157   6,348   18,581   14,571  
                 
Net income per share – basic 0.07   0.08   0.24   0.18  
Net income per share – diluted 0.07   0.08   0.23   0.18  
Dividend per share 0.05   0.05   0.15   0.15  

Condensed Consolidated Statements of Cash Flows

  Three months endedDecember 31   Nine months endedDecember 31  
UNAUDITED (thousands of Canadian $) 2023   2022   2023   2022  
                 
Operating activities                
Net income 5,610   6,348   19,030   14,571  
Adjustments for:                
Depreciation and amortization of property, equipment, right-of use assets 890   864   2,686   2,732  
Amortization of intangible assets 665   -   851   -  
Deferred income tax expense (recovery) 1,104   (145 ) 3,082   (64 )
Stock-based compensation 513   1,102   2,222   462  
Foreign exchange and other non-cash items (305 ) -   17   -  
Funds flow from operations 8,477   8,169   27,888   17,701  
Movement in non-cash working capital:                
Trade and other receivables (5,413 ) (4,872 ) (2,112 ) (1,048 )
Trade payables and accrued liabilities 2,413   649   24   27  
Prepaid expenses and other assets (639 ) 1   (349 ) (421 )
Income taxes receivable (payable) (181 ) 1,157   (1,432 ) 733  
Deferred revenue (4,214 ) 2,553   (9,351 ) (3,737 )
Change in non-cash working capital (8,034 ) (512 ) (13,220 ) (4,446 )
Net cash provided by operating activities 443   7,657   14,668   13,255  
                 
Financing activities                
Repayment of acquired line of credit -   -   (2,012 ) -  
Proceeds from issuance of common shares 1,783   19   2,996   434  
Repayment of lease liabilities (364 ) (413 ) (1,188 ) (1,055 )
Dividends paid (4,059 ) (4,025 ) (12,140 ) (12,067 )
Net cash used in financing activities (2,640 ) (4,419 ) (12,344 ) (12,688 )
                 
Investing activities                
Corporate acquisition, net of cash acquired 157   -   (22,893 ) -  
Change in non-cash working capital (517 ) -   (517 ) -  
Property and equipment additions (459 ) (211 ) (555 ) (341 )
Net cash used in investing activities (819 ) (211 ) (23,695 ) (341 )
                 
Increase (decrease) in cash (3,016 ) 3,027   (21,641 ) 226  
Effect of foreign exchange on cash (26 ) -   (26 ) -  
Cash, beginning of period 48,225   56,859   66,850   59,660  
Cash, end of period 45,183   59,886   45,183   59,886  
                 
Supplementary cash flow information                
Interest received 986   548   2,438   1,105  
Interest paid 444   482   1,394   1,458  
Income taxes paid 1,071   1,732   5,429   4,615  

For further information, please contact:

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

Cautionary Note Regarding Forward-Looking Statements

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

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

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

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