PRESS RELEASE

from 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 2022Fiscal 2023
Fiscal 2024
($ thousands, unless otherwise stated)
Q2Q3Q4Q1Q2Q3Q4Q1
Annuity/maintenance license revenue
13,23913,57514,30613,52914,82515,53315,80315,607
Perpetual license revenue
8461,4972,3513867805181,5561,849
Software license revenue
14,08515,07216,65713,91515,60516,05117,35917,456
Professional services revenue
1,8641,9732,1372,1922,4773,3412,9063,292
Total revenue
15,94917,04518,79416,10718,08219,39220,26520,748
Operating profit
5,4407,7557,3124,9615,5558,4356,9099,764
Operating profit (%)
3445393131433447
Profit before income and other taxes
5,3217,3106,5635,1825,9898,3507,1279,148
Income and other taxes
1,1751,7361,6111,3691,5792,0021,9012,244
Net income for the period
4,1465,5744,9523,8134,4106,3485,2266,904
Adjusted EBITDA (1)
6,9488,6728,7956,7758,50910,5958,5159,948
Cash dividends declared and paid
4,0164,0174,0164,0174,0254,0254,0324,039
Funds flow from operations
4,9047,0227,1054,5584,9748,1697,6567,920
Free cash flow (1)
4,4946,2276,5844,2554,5057,5455,3967,463
Per share amounts - ($/share)
Earnings per share (EPS) - basic
0.050.070.060.050.050.080.070.09
Earnings per share (EPS) - diluted
0.050.070.060.050.050.080.060.08
Cash dividends declared and paid
0.050.050.050.050.050.050.050.05
Funds flow from operations per share - basic
0.060.090.090.060.060.100.090.10
Free cash flow per share - basic (1)
0.060.080.080.050.060.090.070.09
  1. 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)
20232022$ change% change
Software license revenue
17,45613,9153,54125%
Professional services revenue
3,2922,1921,10050%
Total revenue
20,74816,1074,64129%

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)
20232022$ change% change
Annuity/maintenance license revenue
15,60713,5292,07815%
Perpetual license revenue
1,8493861,463379%
Total software license revenue
17,45613,9153,54125%
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)
20232022$ change% change
Annuity/maintenance license revenue
Canada
3,2412,95029010%
United States
4,2543,35090427%
South America
1,8221,6991237%
Eastern Hemisphere (1)
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