Quick Summary:
Condensed Consolidated Statements of Financial Position UNAUDITED (thousands of Canadian $)September 30, 2024 March 31, 2024 April 1, 2023 Assets Current assets: Cash61,373 63,083 66,850 Restricted cash96 142 - Trade and other receivables34,704 36,550 23,910 Prepaid expenses2,213 2,321 1,060 Prepaid income taxes986 3,841 444 99,372 105,937 92,264 Intangible assets22,354 23,683 1,321 Right-of-use assets29,628 29,072 30,733 Property and equipment9,496 9,877 10,366 Goodwill4,426 4,399 - Deferred tax asset136 - 2,444 Total assets165,412 172,968 137,128 Liabilities and shareholders’ equity Current liabilities: Trade payables and accrued liabilities13,920 18,551 11,126 Income taxes payable1,422 2,136 33 Acquisition holdback payable2,288 2,292 - Acquisition earnout3,416 - - Deferred revenue32,274 41,120 34,797 Lease liabilities2,263 2,566 1,829 55,583 66,665 47,785 Lease liabilities35,521 34,395 36,151 Stock-based compensation liabilities253 624 742 Acquisition earnout- 1,503 - Other long-term liabilities200 305 - Deferred tax liabilities1,776 1,661 - Total liabilities93,333 105,153 84,678 Shareholders’ equity: Share capital91,083 87,304 81,820 Contributed surplus15,892 15,667 15,471 Cumulative translation adjustment343 (367)- Deficit(35,239)(34,789)(44,841)Total shareholders’ equity72,079 67,815 52,450 Total liabilities and shareholders' equity165,412 172,968 137,128 Condensed Consolidated Statements of Operations and Comprehensive Income Three months endedSeptember 30 Six months endedSeptember 30 UNAUDITED (thousands of Canadian $ except per share amounts)2024 2023 2024 2023 Revenue Cost of revenue 29,4675,692 22,6332,493 59,99011,884 43,3814,398 Gross profit 23,775 20,140 48,106 38,983 Operating expenses Sales and marketing4,229 3,384 9,160 5,739 Research and development6,428 4,767 14,673 8,819 General and administrative4,688 4,263 10,177 6,935 15,345 12,414 34,010 21,493 Operating profit8,430 7,726 14,096 17,490 Finance income761 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 taxes6,007 8,793 12,459 17,941 Income and other taxes2,244 2,277 4,732 4,521 Net income for the period3,763 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 – basic0.05 0.08 0.09 0.17 Net income per share – diluted0.05 0.08 0.09 0.16 Dividend per share0.05 0.05 0.10 0.10 Condensed Consolidated Statements of Cash Flows Three months endedSeptember 30 Six months endedSeptember 30 UNAUDITED (thousands of Canadian $)2024 2023 2024 2023 Operating activities Net income3,763 6,516 7,727 13,420 Adjustments for: Depreciation and amortization of property, equipment, right-of use assets1,283 892 2,501 1,796 Amortization of intangible assets664 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 items810 322 438 322 Change in fair value of contingent consideration2,112 - 1,913 - Funds flow from operations7,101 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 liabilities264 405 (3,067)(2,389)Prepaid expenses and other assets74 291 108 290 Income taxes receivable (payable)687 (1,612)2,111 (1,251)Deferred revenue1,384 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 shares480 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 period69,092 64,242 63,083 66,850 Cash, end of period61,373 48,225 61,373 48,225 Supplementary cash flow information Interest received761 692 1,639 1,452 Interest paid479 481 942 950 Income taxes paid4,229 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.
SUMMARY OF FINANCIAL PERFORMANCE CMGBHVConsolidatedThree months ended September 30,($ thousands, except per share data)2024 2023 2024 2023 2024 2023 Annuity/maintenance licenses16,794 17,441 1,508 169 18,302 17,610 Annuity license fee- - 71 - 71 - Perpetual licenses2,149 1,176 - - 2,149 1,176 Total software license revenue18,943 18,617 1,579 169 20,522 18,786 Professional services3,382 3,452 5,563 395 8,945 3,847 Total revenue22,325 22,069 7,142 564 29,467 22,633 Total revenue growth1%22%1166% 30%25%Annuity/maintenance licenses growth(4%)18%792% 4%19%Cost of revenue2,332 2,271 3,360 222 5,692 2,493 Operating expenses Sales & marketing3,363 3,362 866 22 4,229 3,384 Research and development4,463 4,651 1,965 116 6,428 4,767 General & administrative3,389 4,214 1,299 49 4,688 4,263 Operating expenses11,215 12,227 4,130 187 15,345 12,414 Operating profit8,778 7,571 (348)155 8,430 7,726 Operating Margin39%34%(5%)27%29%34%Acquisition related expenses395 573 181 - 576 573 Amortization of acquired intangible assets575 124 89 5 664 129 Stock-based compensation232 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 CMGBHVConsolidatedSix months ended September 30,($ thousands, except per share data)2024 2023 2024 2023 2024 2023 Annuity/maintenance licenses34,551 33,048 3,086 169 37,637 33,217 Annuity license fee- - 249 - 249 - Perpetual licenses4,259 3,025 - - 4,259 3,025 Total software license revenue38,810 36,073 3,335 169 42,145 36,242 Professional services6,662 6,744 11,183 395 17,845 7,139 Total revenue45,472 42,817 14,518 564 59,990 43,381 Total revenue growth6%25%2474% 38%27%Annuity/maintenance licenses growth5%17%1726% 13%17%Cost of revenue4,952 4,176 6,932 222 11,884 4,398 Operating expenses Sales & marketing7,504 5,717 1,656 22 9,160 5,739 Research and development10,514 8,703 4,159 116 14,673 8,819 General & administrative7,533 6,886 2,644 49 10,177 6,935 Operating expenses25,551 21,306 8,459 187 34,010 21,493 Operating profit14,969 17,335 (873)155 14,096 17,490 Operating Margin33%40%(6%)27%23%40%Acquisition related expenses395 573 369 - 764 573 Amortization of acquired intangible assets1,151 181 178 5 1,329 186 Stock-based compensation3,138 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.
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.
