par Computer Modelling Group Ltd. (isin : CA2052491057)
Computer Modelling Group Announces First Quarter Results
CALGARY, AB / ACCESSWIRE / August 10, 2023 / Computer Modelling Group Ltd. ("CMG" or the "Company") announces its financial results for the three months ended June 30, 2023.
Quarterly Performance
| Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | |||||||||||||||||||||||
($ thousands, unless otherwise stated) | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||||
Annuity/maintenance license revenue | 13,239 | 13,575 | 14,306 | 13,529 | 14,825 | 15,533 | 15,803 | 15,607 | |||||||||||||||||
Perpetual license revenue | 846 | 1,497 | 2,351 | 386 | 780 | 518 | 1,556 | 1,849 | |||||||||||||||||
Software license revenue | 14,085 | 15,072 | 16,657 | 13,915 | 15,605 | 16,051 | 17,359 | 17,456 | |||||||||||||||||
Professional services revenue | 1,864 | 1,973 | 2,137 | 2,192 | 2,477 | 3,341 | 2,906 | 3,292 | |||||||||||||||||
Total revenue | 15,949 | 17,045 | 18,794 | 16,107 | 18,082 | 19,392 | 20,265 | 20,748 | |||||||||||||||||
Operating profit | 5,440 | 7,755 | 7,312 | 4,961 | 5,555 | 8,435 | 6,909 | 9,764 | |||||||||||||||||
Operating profit (%) | 34 | 45 | 39 | 31 | 31 | 43 | 34 | 47 | |||||||||||||||||
Profit before income and other taxes | 5,321 | 7,310 | 6,563 | 5,182 | 5,989 | 8,350 | 7,127 | 9,148 | |||||||||||||||||
Income and other taxes | 1,175 | 1,736 | 1,611 | 1,369 | 1,579 | 2,002 | 1,901 | 2,244 | |||||||||||||||||
Net income for the period | 4,146 | 5,574 | 4,952 | 3,813 | 4,410 | 6,348 | 5,226 | 6,904 | |||||||||||||||||
Adjusted EBITDA (1) | 6,948 | 8,672 | 8,795 | 6,775 | 8,509 | 10,595 | 8,515 | 9,948 | |||||||||||||||||
Cash dividends declared and paid | 4,016 | 4,017 | 4,016 | 4,017 | 4,025 | 4,025 | 4,032 | 4,039 | |||||||||||||||||
Funds flow from operations | 4,904 | 7,022 | 7,105 | 4,558 | 4,974 | 8,169 | 7,656 | 7,920 | |||||||||||||||||
Free cash flow (1) | 4,494 | 6,227 | 6,584 | 4,255 | 4,505 | 7,545 | 5,396 | 7,463 | |||||||||||||||||
Per share amounts - ($/share) | |||||||||||||||||||||||||
Earnings per share (EPS) - basic | 0.05 | 0.07 | 0.06 | 0.05 | 0.05 | 0.08 | 0.07 | 0.09 | |||||||||||||||||
Earnings per share (EPS) - diluted | 0.05 | 0.07 | 0.06 | 0.05 | 0.05 | 0.08 | 0.06 | 0.08 | |||||||||||||||||
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 | 0.06 | 0.09 | 0.09 | 0.06 | 0.06 | 0.10 | 0.09 | 0.10 | |||||||||||||||||
Free cash flow per share - basic (1) | 0.06 | 0.08 | 0.08 | 0.05 | 0.06 | 0.09 | 0.07 | 0.09 | |||||||||||||||||
- This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.
Commentary on Quarterly Performance
For the Three Months Ended
June 30, 2023 and compared to the same period of the previous fiscal year:
- Annuity/maintenance license revenue increased by 15%;
- Total revenue increased by 29%;
- Total operating expenses decreased by 3%. Adjusted for restructuring charges in the comparative quarter, operating expenses increased by 17%; primarily due to an increase in variable direct employee costs, higher professional services, travel-related, office-related and marketing corporate costs;
- Operating profit margin was 47%, up from 31% in the comparative quarter. Adjusted for restructuring charges in the comparative quarter, operating profit margin was 47%, compared to 41%;
- Basic EPS of $0.09 was higher than the comparative quarter's EPS of $0.05;
- Achieved free cash flow per share of $0.09;
- Declared and paid a dividend of $0.05 per share.
Revenue
Three months ended June 30, ($ thousands) | 2023 | 2022 | $ change | % change | ||||||||||||
Software license revenue | 17,456 | 13,915 | 3,541 | 25 | % | |||||||||||
Professional services revenue | 3,292 | 2,192 | 1,100 | 50 | % | |||||||||||
Total revenue | 20,748 | 16,107 | 4,641 | 29 | % | |||||||||||
Software license revenue as a % of total revenue | 84 | % | 86 | % | ||||||||||||
Professional services revenue as a % of total revenue | 16 | % | 14 | % | ||||||||||||
CMG's revenue is comprised of software license sales, which provides the majority of the Company's revenue, and fees for professional services.
Total revenue for the three months ended June 30, 2023, increased by 29%, due to increases in both software license revenue and professional services revenue.
Software License Revenue
Three months ended June 30, ($ thousands) | 2023 | 2022 | $ change | % change | ||||||||||||
Annuity/maintenance license revenue | 15,607 | 13,529 | 2,078 | 15 | % | |||||||||||
Perpetual license revenue | 1,849 | 386 | 1,463 | 379 | % | |||||||||||
Total software license revenue | 17,456 | 13,915 | 3,541 | 25 | % | |||||||||||
Annuity/maintenance as a % of total software license revenue | 89 | % | 97 | % | ||||||||||||
Perpetual as a % of total software license revenue | 11 | % | 3 | % | ||||||||||||
Total software license revenue for the three months ended June 30, 2023 increased by 25%, compared to the same period of the previous fiscal year, due to increases in both annuity/maintenance license revenue and perpetual license revenue.
Software Revenue by Geographic Region
Three months ended June 30, ($ thousands) | 2023 | 2022 | $ change | % change | ||||||||||||
Annuity/maintenance license revenue | ||||||||||||||||
Canada | 3,241 | 2,950 | 290 | 10 | % | |||||||||||
United States | 4,254 | 3,350 | 904 | 27 | % | |||||||||||
South America | 1,822 | 1,699 | 123 | 7 | % | |||||||||||
Eastern Hemisphere (1) | ||||||||||||||||