Quick Summary:
Consolidated Statements of Financial Position (thousands of Canadian $)March 31, 2024March 31, 2023 Assets Current assets: Cash63,08366,850Restricted cash142-Trade and other receivables36,55023,910Prepaid expenses2,3211,060Prepaid income taxes3,841444 105,93792,264Intangible assets23,6831,321Right-of-use assets29,07230,733Property and equipment9,87710,366Goodwill3,745-Deferred tax asset592,444Total assets172,373137,128 Liabilities and shareholders’ equity Current liabilities: Trade payables and accrued liabilities16,5829,883Income taxes payable1,60433Acquisition holdback payable2,292-Deferred revenue41,12034,797Lease liabilities2,5661,829 64,16446,542Lease liabilities34,39536,151Stock-based compensation liabilities2,5931,985Acquisition earnout1,503-Other long-term liabilities305-Deferred tax liabilities1,598-Total liabilities104,55884,678 Shareholders’ equity: Share capital87,30481,820Contributed surplus15,66715,471Cumulative translation adjustment(367)-Deficit(34,789)(44,841)Total shareholders’ equity67,81552,450Total liabilities and shareholders' equity172,373137,128 Consolidated Statements of Operations and Comprehensive Income Years ended March 31, (thousands of Canadian $ except per share amounts)20242023 Revenue Cost of revenue 108,679 17,22473,846 7,481Gross profit 91,45566,365 Operating expenses Sales and marketing14,9579,968Research and development23,67917,857General and administrative18,83512,680 57,47140,505Operating profit33,98425,860 Finance income3,1462,720Finance costs(1,908)(1,932)Profit before income and other taxes35,22226,648Income and other taxes8,9636,851 Net income26,25919,797 Other comprehensive income: Foreign currency translation adjustment(367)-Other comprehensive income (367)-Total comprehensive income 25,89219,797 Net income per share – basic0.320.25Net income per share – diluted0.320.24Dividend per share0.200.20 Consolidated Statements of Cash Flows Years ended March 31, (thousands of Canadian $)20242023 Operating activities Net income26,25919,797Adjustments for: Depreciation and amortization of property, equipment, right- of use assets4,1873,649Amortization of intangible assets1,501-Deferred income tax expense (recovery)3,518(235)Stock-based compensation2,7952,146Foreign exchange and other non-cash items(5)-Funds flow from operations38,25525,357Movement in non-cash working capital: Trade and other receivables(6,697)(6,403)Trade payables and accrued liabilities2,6182,315Prepaid expenses and other assets(1,183)(268)Income taxes receivable (payable)(1,826)535Deferred revenue4,9104,343Change in non-cash working capital(2,178)522Net cash provided by operating activities36,07725,879 Financing activities Repayment of acquired line of credit(2,012)-Proceeds from issuance of common shares4,1931,066Repayment of lease liabilities(2,355)(1,608)Dividends paid(16,207)(16,099)Net cash used in financing activities(16,381)(16,641) Investing activities Corporate acquisition, net of cash acquired(22,814)-Intangible asset additions-(1,340)Property and equipment additions, net of disposals(650)(708)Net cash used in investing activities(23,464)(2,048) Increase (decrease) in cash(3,768)7,190Effect of foreign exchange on cash1-Cash, beginning of year66,85059,660Cash, end of year63,08366,850 Supplementary cash flow information Interest received3,0961,810Interest paid1,9081,932Income taxes paid7,2016,635 CORPORATE PROFILE CMG Group (TSX:CMG) is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world.
Year ended March 31CMGBHVConsolidated($ thousands, except per share data)202420232024202320242023 Annuity/maintenance licenses68,53759,6902,993-71,53059,690Annuity license fee--5,146-5,146-Perpetual licenses5,7393,240--5,7393,240Total software license revenue74,27662,9308,139-82,41562,930Professional services13,61810,91612,646-26,26410,916Total revenue 87,89473,84620,785-108,67973,846 Total revenue growth 19%12% 47%12% Annuity/maintenance licenses growth15%12% 20%12% Cost of revenue8,8587,4818,366-17,2247,481Operating expenses Sales & marketing13,7879,9681,170-14,9579,968Research and development19,87017,8573,809-23,67917,857General & administrative14,23412,6804,601-18,83512,680Operating expenses47,89140,5059,580-57,47140,505Operating profit31,14525,8602,839-33,98425,860 Operating Margin35%35%14%-%31%35%Acquisition related expenses719-737-1,456-Amortization of acquired intangible assets1,32219179-1,50119Restructuring charge-3,943---3,943Stock based compensation6,2923,317 - -6,2923,317Adjusted operating profit (1)39,47833,1393,755-43,23333,139 Adjusted Operating Margin (1)45%45%18%-%40%45% Net income24,61019,7971,649-26,25919,797Adjusted EBITDA (1)39,46933,2293,688-43,15733,229 Adjusted EBITDA Margin (1)45%45%18%-%40%45% Earnings per share – basic 0.320.25Free cash flow per share – basic (1) 0.440.27 (1) Non-IFRS financial measures are defined in the "Non-IFRS Financial Measures” section.
SUMMARY OF FINANCIAL PERFORMANCE Three months ended March 31CMGBHVConsolidated($ thousands, except per share data)202420232024202320242023 Annuity/maintenance licenses17,86415,8031,797-19,66115,803Annuity license fee--1,142-1,142-Perpetual licenses2,1301,556--2,1301,556Total software license revenue19,99417,3592,939-22,93317,359Professional services3,2802,9066,078-9,3582,906Total revenue 23,27420,2659,017-32,29120,265 Total revenue growth 15%8% 59%8% Annuity/maintenance licenses growth13%10% 24%10% Cost of revenue2,3942,3654,076-6,4702,365Operating expenses Sales & marketing3,6913,294670-4,3613,294Research and development5,8304,5891,777-7,6074,589General & administrative3,4583,1082,118-5,5763,108Operating expenses12,97910,9914,565-17,54410,991Operating profit 7,9016,909376-8,2776,909 Operating Margin 34%34%4%-%26%34%Acquisition related expenses--186-186-Amortization of acquired intangible assets5751989-66419Stock based compensation9221,721--9221,721Adjusted operating profit (1)9,3988,649651-10,0498,649 Adjusted Operating Margin (1)40%43%7%-%31%43% Net income (loss)7,3655,226(136)-7,2295,226Adjusted EBITDA (1)9,3538,520866-10,2198,520 Adjusted EBITDA Margin (1)40%42%10%-%32%42% Earnings per share – basic 0.090.07Free cash flow per share – basic (1) 0.120.07 (1) Non-IFRS financial measures are defined in the "Non-IFRS Financial Measures” section.
