CMG Computer Modelling Group Ltd

Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three and nine months ended December 31, 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 third quarter ended December 31, 2024.

THIRD QUARTER 2025 CONSOLIDATED HIGHLIGHTS

As a result of CMG Group’s acquisition of Sharp Reflections GmbH (“SR” or “Sharp”) on November 12, 2024, the Company’s operations are organized into two reportable operating segments represented by “Reservoir & Production Solutions” segment (“R&P”) which reflects the operations of CMG and includes the development and licensing of reservoir simulation software and “Seismic Solutions” segment (“Seismic”) represented by Bluware-Headwave Ventures Inc. (“BHV” or “Bluware”) and SR and includes the development and licensing of seismic interpretation software.

Select financial highlights

• Closed the Company’s second major acquisition, Sharp on November 12, 2024;
• Generated total revenue of $35.8 million in the third quarter of fiscal 2025, compared to $33.0 million in the prior year’s quarter, reflecting a 1% decrease in R&P segment revenue and a 9% contribution from the Seismic segment, of which 6% was growth from acquisitions;
• Operating profit increased to $11.2 million, an increase of 37% from the same period of the previous fiscal year, primarily due to increased software and professional service revenues and a decrease in operating expenses primarily driven by a decrease in stock-based compensation in the quarter as a result of the decrease in share price. Adjusted operating profit increased by 9% from the same period of the previous fiscal year, with the R&P segment decreasing by 5% and the Seismic segment increasing by 14%, of which 1% was contributed from the acquisition;
• Adjusted EBITDA Margin was 39%, compared to 37% in the same period of the previous fiscal year with the R&P segment generating 42% and the Seismic segment generating 34% in Adjusted EBITDA Margin;
• Net income during the period was $9.6 million, a 71% increase compared to the prior year’s quarter, primarily due to a increased operating profit and significant FX gains, partially offset by a change in the fair value of contingent consideration;
• Earnings per share was $0.12, a 71% increase compared to the prior year’s quarter;
• Funds flow from operations per share was $0.12, a 20% increase from the prior year comparative period. Reported Free Cash Flow of $0.11 per share, an increase of 22%, primarily due to increased funds flow from operations and a decrease in both capital expenditures and repayment of lease liabilities.

THIRD QUARTER YEAR TO DATE 2025 CONSOLIDATED HIGHLIGHTS

Select financial highlights

• Closed the Company’s second major acquisition, Sharp on November 12, 2024;
• Generated total revenue of $95.8 million for the third quarter fiscal 2025 year-to-date period, compared to $76.4 million in the prior year-to-date period, reflecting a 3% increase in the R&P segment revenue and a 22% contribution from the Seismic segment of which 21% was growth from acquisitions;
• Operating profit decreased to $25.3 million, a decrease of 2% from the same year-to-date period of the previous fiscal year, primarily due to increased headcount and headcount related costs, increased acquisition costs, increased amortization of acquired intangible assets, and increased agent commissions as a result of increased revenues, partially offset by a decrease in stock-based compensation expense. Adjusted operating profit remained consistent with the prior year comparative period, with the R&P segment decreasing by 4% and the Seismic segment contributing an increase of 4%;
• Adjusted EBITDA Margin was 35%, compared to 43% in the same period of the previous fiscal year with the R&P Segment generating 43% and the Seismic segment generating 15% in Adjusted EBITDA Margin;
• Net income during the period was $17.3 million, a 9% decrease compared to the prior year-to-date period, primarily due to a decrease in operating profit, change in fair value of contingent consideration and increased income tax;
• Earnings per share was $0.21, a 13% decrease compared to the prior year-to-date period;
• Funds flow from operations per share was $0.29, a 15% decrease from the prior year-to-date period. Reported Free Cash Flow of $0.25 per share, a decrease of 22%, primarily due to decreased funds flow from operations and increases in both capital expenditures and repayment of lease liabilities.

MANAGEMENT COMMENTARY

The company has defined Organic growth to include CMG revenue and Adjusted EBITDA and BHV revenue and Adjusted EBITDA generated beginning on October 1, 2024.

Third Quarter

In the third quarter, total revenue grew by 8% from the prior fiscal year to $35.8 million, of which 2% was Organic growth and 6% was growth from acquisitions.

Adjusted EBITDA Margin of 39% compared to 37% in the prior year period, with reductions in the Reservoir and Productions Solutions segment offset by increases in the Seismic Solutions segment.

Net income for the quarter increased to $9.6 million, up from $5.6 million in the prior year period, supported by an increase in operating profit and significant foreign exchange rate gains. Free Cash Flow increased from $0.09 per share in the prior period to $0.11 per share, impacted by the increase in funds flow from operations. At December 31, 2024, the cash balance was $39.7 million, a decrease from $61.4 million at September 30, 2024 due primarily to the acquisition of Sharp Reflections.

Reservoir and Production Solutions

Total revenue declined by 1% with declines in Professional Services revenue partially offset by gains in Perpetual license revenue. Annuity/maintenance (“A/M”) revenue was flat compared to the third quarter of 2024 with decreases in the US, Canada and South America, offset by growth in the Eastern Hemisphere. Software revenue attributable to energy transition was 23% in the quarter, compared to 22% in the comparable prior year period. From a trend perspective, on a year-to-date basis, software revenue attributable to energy transition was 23% compared to 22% in the same period of the previous year.

Operating profit in the segment for the third quarter increased to $7.0 million, from $5.9 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 acquisition related expenses, agent commission and other related fees, and other corporate costs. Adjusted EBITDA Margin in the quarter decreased to 42% from 44% in the prior fiscal year, due primarily to the slight decline in revenue and an increase in expenses.

Maintaining our customary high renewal rates in the fourth quarter will be important for sustaining our current growth trajectory which, on a year-to-date basis, is below our expectation of low double-digits.

Seismic Solutions

Total revenue increased 26% of which 9% was Organic growth and 17% growth from acquisitions.

A/M revenue increased 131% compared to the prior year period, of which 49% was Organic growth, due to an increase in licensing and the positive impact of foreign exchange rates. Growth from acquisitions was 82%. Annuity license fee increase of 12% Organic growth was also positively impacted by an increase in licensing and the positive impact of USD/CAD foreign exchange rates.

Operating profit in the segment for the third quarter increased to $4.2 million from $2.3 million as a result of higher revenue and lower G&A expenses. Adjusted EBITDA increased to $4.8 million from $2.7 million, of which 6% is from acquisitions. Adjusted EBITDA Margin grew to 34% from 24% in the prior year. Contract renewals in the Seismic segment 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. We would encourage shareholders to evaluate the Seismic Solutions segment revenue and profitability on a full-year basis.

SUMMARY OF FINANCIAL PERFORMANCE

	Reservoir & Production Solutions				Seismic Solutions				Consolidated
Three months ended December 31,($ thousands, except per share data)	2024		2023		2024		2023		2024		2023
Annuity/maintenance licenses	17,706		17,625		2,746		1,189		20,452		18,814
Annuity license fee	-		-		4,303		3,846		4,303		3,846
Perpetual licenses	804		584		-		-		804		584
Total software license revenue	18,510		18,209		7,049		5,035		25,559		23,244
Professional services	3,181		3,594		7,033		6,169		10,214		9,763
Total revenue	21,691		21,803		14,082		11,204		35,773		33,007
Total revenue growth	(1	%)	12	%	26	%			8	%	70	%
Annuity/maintenance licenses growth	(0	%)	13	%	131	%			9	%	21	%
Cost of revenue	2,389		2,288		3,918		4,068		6,307		6,356
Operating expenses
Sales & marketing	2,914		4,379		1,449		478		4,363		4,857
Research and development	4,656		5,337		2,684		1,916		7,340		7,253
General & administrative	4,743		3,890		1,803		2,434		6,546		6,324
Operating expenses	12,313		13,606		5,936		4,828		18,249		18,434
Operating profit	6,989		5,909		4,228		2,308		11,217		8,217
Operating Margin	32	%	27	%	30	%	21	%	31	%	25	%
Acquisition related expenses	1,533		146		54		551		1,587		697
Amortization of acquired intangible assets	575		565		430		87		1,005		652
Stock-based compensation	(82	)	2,974		3		-		(79	)	2,974
Adjusted operating profit (1)	9,015		9,594		4,715		2,946		13,730		12,540
Adjusted Operating Margin (1)	42	%	44	%	33	%	26	%	38	%	38	%
Net income (loss)	5,496		3,918		4,110		1,692		9,606		5,610
Adjusted EBITDA (1)	9,003		9,583		4,821		2,689		13,824		12,272
Adjusted EBITDA Margin (1)	42	%	44	%	34	%	24	%	39	%	37	%
Earnings per share – basic & diluted									0.12		0.07
Funds flow from operations per share - basic									0.12		0.10
Free Cash Flow per share – basic (1)									0.11		0.09

   (1) Non-IFRS financial measures are defined in the “Non-IFRS Financial Measures” section.

	Reservoir & Production Solutions				Seismic Solutions				Consolidated
Nine months ended December 31,($ thousands, except per share data)	2024		2023		2024		2023		2024		2023
Annuity/maintenance licenses	52,257		50,673		5,832		1,196		58,089		51,869
Annuity license fee	-		-		4,552		4,004		4,552		4,004
Perpetual licenses	5,063		3,609		-		-		5,063		3,609
Total software license revenue	57,320		54,282		10,384		5,200		67,704		59,482
Professional services	9,843		10,338		18,216		6,568		28,059		16,906
Total revenue	67,163		64,620		28,600		11,768		95,763		76,388
Total revenue growth	4	%	21	%	143	%			25	%	43	%
Annuity/maintenance licenses growth	3	%	15	%	388	%			12	%	18	%
Cost of revenue	7,341		6,464		10,850		4,290		18,191		10,754
Operating expenses
Sales & marketing	10,418		10,096		3,105		500		13,523		10,596
Research and development	15,170		14,040		6,843		2,032		22,013		16,072
General & administrative	12,276		10,776		4,447		2,483		16,723		13,259
Operating expenses	37,864		34,912		14,395		5,015		52,259		39,927
Operating profit	21,958		23,244		3,355		2,463		25,313		25,707
Operating Margin	33	%	36	%	12	%	21	%	26	%	34	%
Acquisition related expenses	1,928		719		423		551		2,351		1,270
Amortization of acquired intangible assets	1,726		746		608		92		2,334		838
Stock-based compensation	3,057		5,370		3		-		3,060		5,370
Adjusted operating profit (1)	28,669		30,079		4,389		3,106		33,058		33,185
Adjusted Operating Margin (1)	43	%	47	%	15	%	26	%	35	%	43	%
Net income (loss)	15,491		17,245		1,842		1,785		17,333		19,030
Adjusted EBITDA (1)	28,774		30,116		4,425		2,822		33,199		32,938
Adjusted EBITDA Margin (1)	43	%	47	%	15	%	24	%	35	%	43	%
Earnings per share – basic & diluted									0.21		0.24
Funds flow from operations per share – basic									0.29		0.34
Free Cash Flow per share – basic (1)									0.25		0.32

   (1)   Non-IFRS financial measures are defined in the “Non-IFRS Financial Measures” section.

Q3 2025 Dividend

Computer Modelling Group’s Board approved a cash dividend of $0.05 per Common Share. The dividend will be paid on March 14, 2025, to shareholders of record at the close of business on March 6, 2025.

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)	Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3
Funds flow from operations	7,656		7,920		11,491		8,477		10,367		6,515		7,101		9,937
Capital expenditures(1)	(1,707	)	(45	)	(51	)	(459	)	(95	)	(93	)	(236	)	(432	)
Repayment of lease liabilities	(553	)	(412	)	(412	)	(728	)	(803	)	(743	)	(769	)	(689	)
Free Cash Flow	5,396		7,463		11,028		7,290		9,469		5,679		6,096		8,816
Weighted average shares – basic (thousands)	80,603		80,685		80,834		81,067		81,314		81,476		81,887		82,753
Free Cash Flow per share - basic	0.07		0.09		0.14		0.09		0.12		0.07		0.07		0.11
Funds flow from operations per share- basic	0.09		0.10		0.14		0.10		0.13		0.08		0.09		0.12

 

   (1)   Capital expenditures include cash consideration for USI acquisition in Q4 2023. Free Cash Flow per share increased by 22% for the three months ended December 31, 2024, and decreased by 22% for the nine months ended December 31, 2024, as compared to the three and nine months ended December 31, 2023, respectively. The increase in Free Cash Flow for the three months ended December 31, 2024, primarily relates to an increase in net income and decrease in the repayment of lease liabilities relating to timing of payments as the BHV office lease in Houston concluded during the period. The decrease in Free Cash Flow for the nine months ended December 31, 2024, primarily relates to a decrease in net income and increase in repayment of lease liabilities compared to the prior year comparative period as a result of the acquisition of BHV.

Adjusted EBITDA and Adjusted EBITDA Margin

	Reservoir & Production Solutions				Seismic Solutions				Consolidated
Three months ended December 31,($ thousands)	2024		2023		2024		2023		2024		2023
Net income (loss)	5,496		3,918		4,110		1,692		9,606		5,610
Add (deduct):
Depreciation and amortization	1,460		1,449		807		106		2,267		1,555
Stock-based compensation	(82	)	2,974		3		-		(79	)	2,974
Acquisition related expenses	1,533		146		54		551		1,587		697
Loss on contingent consideration	150		-		-		-		150		-
Income and other tax expense	2,497		1,805		1,065		702		3,562		2,507
Interest income	(474	)	(982	)	(179	)	(2	)	(653	)	(984)
Foreign exchange loss (gain)	(1,146	)	701		(781	)	(59	)	(1,927	)	642
Repayment of lease liabilities	(431	)	(428	)	(258	)	(300	)	(689	)	(728	)
Adjusted EBITDA (1)	9,003		9,583		4,821		2,689		13,824		12,272
Adjusted EBITDA Margin (1)	42	%	44	%	34	%	24	%	39	%	37	%

    (1)   This is a non-IFRS financial measure. Refer to definition of the measures above.

	Reservoir & Production Solutions				Seismic Solutions				Consolidated
Nine months ended December 31,($ thousands)	2024		2023		2024		2023		2024		2023
Net income (loss)	15,491		17,245		1,842		1,785		17,333		19,030
Add (deduct):
Depreciation and amortization	4,496		3,424		1,601		113		6,097		3,537
Stock-based compensation	3,057		5,370		3		-		3,060		5,370
Acquisition related expenses	1,928		719		423		551		2,351		1,270
Loss on contingent consideration	2,063		-		-		-		2,063		-
Income and other tax expense	5,913		6,288		2,381		740		8,294		7,028
Interest income	(1,934	)	(2,434	)	(358	)	(4	)	(2,292	)	(2,438	)
Foreign exchange loss (gain)	(948	)	752		(558	)	(59	)	(1,506	)	693
Repayment of lease liabilities	(1,292	)	(1,248	)	(909	)	(304	)	(2,201	)	(1,552	)
Adjusted EBITDA (1)	28,774		30,116		4,425		2,822		33,199		32,938
Adjusted EBITDA Margin (1)	43	%	47	%	15	%	24	%	35	%	43	%

     (1)   This is a non-IFRS financial measure. Refer to definition of the measures above.

Adjusted EBITDA Margin for the three and nine months ended December 31, 2024, was 39% and 35%, respectively, down from 37% and 43% during the period year comparative periods.

The R&P segment’s Adjusted EBITDA Margin is 42% and 43% for the three and nine months ended December 31, 2024, respectively, compared to 44% and 47%, respectively for the three and nine months ended December 31, 2023. The decline in Adjusted EBITDA Margin for the three months ended December 31, 2024, is primarily due to a slight decline in revenue and increase in other corporate costs. The decline in Adjusted EBITDA Margin for the nine months ended December 31, 2024, is primarily due to an increase in headcount and headcount related costs and other corporate costs, partially offset by an increase in total revenues. Refer to the “Operating Expenses” section of this MD&A for further detail on the increase in operating expenses by category.

The Seismic segment’s Adjusted EBITDA Margin for the three and nine months ended December 31, 2024, is 34% and 15%, respectively, compared to 24% for the three and nine months ended December 31, 2023. Seismic Adjusted EBITDA for the three months ended December 31, 2024, increased by 79%, of which 6% is due to growth from acquisitions. The increase in Seismic Adjusted EBITDA not related to growth from acquisitions for the three months ended December 31, 2024, is primarily due to higher revenues and lower G&A expenses. Seismic Adjusted EBITDA for the nine months ended December 31, 2024, increased by 57%, of which there was an 8% decline due to acquisitions. The increase in Seismic Adjusted EBITDA not related to growth from acquisitions for the nine months ended December 31, 2024, is impacted by the same reasons as the three months ended December 31, 2024. The decrease in Seismic Adjusted EBITDA due to decline from acquisitions for the nine months ended December 31, 2024, is primarily due to negative Adjusted EBITDA in the first six months of fiscal 2025, influenced by revenue recognition being skewed to the last two quarters of the fiscal year. Contract renewals in the Seismic segment 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 $)	December 31, 2024		March 31, 2024		April 1, 2023
Assets
Current assets:
Cash	39,731		63,083		66,850
Restricted cash	194		142		-
Trade and other receivables	43,193		36,550		23,910
Prepaid expenses	2,267		2,321		1,060
Prepaid income taxes	647		3,841		444
	86,032		105,937		92,264
Intangible assets	59,919		23,683		1,321
Right-of-use assets	28,969		29,072		30,733
Property and equipment	9,808		9,877		10,366
Goodwill	14,850		4,399		-
Deferred tax asset	97		-		2,444
Total assets	199,675		172,968		137,128
Liabilities and shareholders’ equity
Current liabilities:
Trade payables and accrued liabilities	16,420		18,551		11,126
Income taxes payable	2,842		2,136		33
Acquisition holdback payable	7,214		2,292		-
Acquisition earnout	3,782		-		-
Deferred revenue	34,822		41,120		34,797
Lease liabilities	2,298		2,566		1,829
Government loan	299		-		-
	67,677		66,665		47,785
Lease liabilities	35,144		34,395		36,151
Stock-based compensation liabilities	252		624		742
Government loan	1,169		-		-
Acquisition earnout	-		1,503		-
Acquisition holdback payable	1,213		-		-
Other long-term liabilities	213		305		-
Deferred tax liabilities	12,303		1,661		-
Total liabilities	117,971		105,153		84,678
Shareholders’ equity:
Share capital	94,255		87,304		81,820
Contributed surplus	15,452		15,667		15,471
Cumulative translation adjustment	1,745		(367	)	-
Deficit	(29,748	)	(34,789	)	(44,841	)
Total shareholders’ equity	81,704		67,815		52,450
Total liabilities and shareholders' equity	199,675		172,968		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)	2024		2023		2024		2023
Revenue Cost of revenue	35,7736,307		33,0076,356		95,76318,191		76,38810,754
Gross profit	29,466		26,651		77,572		65,634
Operating expenses
Sales and marketing	4,363		4,857		13,523		10,596
Research and development	7,340		7,253		22,013		16,072
General and administrative	6,546		6,324		16,723		13,259
	18,249		18,434		52,259		39,927
Operating profit	11,217		8,217		25,313		25,707
Finance income	2,580		986		3,798		2,438
Finance costs	(479	)	(1,086	)	(1,421	)	(2,087	)
Change in fair value of contingent consideration	(150	)	-		(2,063	)	-
Profit before income and other taxes	13,168		8,117		25,627		26,058
Income and other taxes	3,562		2,507		8,294		7,028
Net income for the period	9,606		5,610		17,333		19,030
Other comprehensive income:
Foreign currency translation adjustment	1,402		(453	)	2,112		(449	)
Other comprehensive income	1,402		(453	)	2,112		(449	)
Total comprehensive income	11,008		5,157		19,445		18,581
Net income per share – basic	0.12		0.07		0.21		0.24
Net income per share – diluted	0.12		0.07		0.21		0.23
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 $)	2024		2023		2024		2023
Operating activities
Net income	9,606		5,610		17,333		19,030
Adjustments for:
Depreciation and amortization of property, equipment, right-of use assets	1,262		890		3,763		2,686
Amortization of intangible assets	1,005		665		2,334		851
Deferred income tax expense (recovery)	(150	)	1,104		(228	)	3,082
Stock-based compensation	(641	)	513		(855	)	2,222
Foreign exchange and other non-cash items	(1,295	)	(305	)	(857	)	17
Change in fair value of contingent consideration	150		-		2,063		-
Funds flow from operations	9,937		8,477		23,553		27,888
Movement in non-cash working capital:
Trade and other receivables	(3,827	)	(5,413	)	(1,981	)	(2,112	)
Trade payables and accrued liabilities	(645	)	2,413		(3,712	)	24
Prepaid expenses and other assets	85		(639	)	193		(349	)
Income taxes receivable (payable)	1,567		(181	)	3,678		(1,432	)
Deferred revenue	1,149		(4,214	)	(7,697	)	(9,351	)
Change in non-cash working capital	(1,671	)	(8,034	)	(9,519	)	(13,220	)
Net cash provided by (used in) operating activities	8,266		443		14,034		14,668
Financing activities
Repayment of acquired line of credit	-		-		-		(2,012	)
Repayment of government loan	(63	)	-		(63	)	-
Proceeds from issuance of common shares	2,395		1,783		5,124		2,996
Repayment of lease liabilities	(689	)	(364	)	(2,201	)	(1,188	)
Dividends paid	(4,115	)	(4,059	)	(12,292	)	(12,140	)
Net cash used in financing activities	(2,472	)	(2,640	)	(9,432	)	(12,344	)
Investing activities
Corporate acquisition, net of cash acquired	(27,071	)	157		(27,071	)	(22,893	)
Change in non-cash working capital	-		(517	)	-		(517	)
Property and equipment additions	(432	)	(459	)	(761	)	(555	)
Repayment of acquisition holdback payable	(2,130	)	-		(2,130	)	-
Net cash used in investing activities	(29,633	)	(819	)	(29,962	)	(23,965	)
Increase (decrease) in cash	(23,839	)	(3,016	)	(25,360	)	(21,641	)
Effect of foreign exchange on cash	2,197		(26	)	2,008		(26	)
Cash, beginning of period	61,373		48,225		63,083		66,850
Cash, end of period	39,731		45,183		39,731		45,183
Supplementary cash flow information
Interest received	653		986		2,292		2,438
Interest paid	479		444		1,421		1,394
Income taxes paid	2,128		1,071		7,853		5,429

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 nine months ended December 31, 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.

For investor inquiries, please contact:Kim MacEachernDirector, Investor Relationscmg-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.

For further information, please contact:

Pramod Jain
Chief Executive Officer (403) 531-1300
pramod.jain@cmgl.ca        

or Sandra Balic
Vice President, Finance & CFO (403) 531-1300
sandra.balic@cmgl.ca