Constellation Software Inc.
TSX : CSU

Constellation Software Inc.

March 03, 2010 17:00 ET

Constellation Software Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2009 and Declares Annual Dividend

TORONTO, ONTARIO--(Marketwire - March 3, 2010) - Constellation Software Inc. (TSX:CSU) ("Constellation" or the "Company") today announced its financial results for the fourth quarter and fiscal year ended December 31, 2009, and declared a $0.26 per share dividend payable on March 31, 2010 to all common shareholders and class A non-voting shareholders of record at close of business on March 17, 2010. Please note that all dollar amounts referred to in this press release are U.S. Dollars unless otherwise stated.

The following press release should be read in conjunction with the Company's audited annual Consolidated Financial Statements, prepared in accordance with Canadian GAAP and our annual MD&A for the year ended December 31, 2009 which can be found on SEDAR at www.sedar.com and on the Company's website www.csisoftware.com. Additional information about the Company is also available on SEDAR at www.sedar.com.

2009 Highlights:

  • Revenue grew 32% compared to 2008. Organic revenue growth was negative 3% in 2009 versus positive 5% in 2008
  • Adjusted EBITDA increased $24 million or 37% to $88 million as compared to 2008
  • Adjusted Net Income increased by $8 million or 15% to $62 million ($2.95 on a fully diluted per share basis) from $54 million ($2.57 on a fully diluted per share basis) in 2008
  • $38 million was deployed on 13 acquisitions and $4 million in holdbacks relating to prior acquisitions was paid
  • Dividend declared of $0.26 per share, a 20% increase over 2008

Q4 2009 Highlights:

  • Revenue grew 34% compared to Q4 2008. Organic revenue growth was negative 4% in Q4 2009 versus positive 2% in Q4 2008
  • Adjusted EBITDA was $22 million, consistent with Q4 2008
  • Adjusted Net Income declined by 23% to $15 million ($0.69 on a fully diluted per share basis) from $19 million ($0.90 on a fully diluted per share basis) in Q4 2008
  • The company's credit facility was increased from $130 million to $160 million
  • We acquired the Public Transit Solutions ('PTS') business on November 2, 2009. Revenue, Adjusted EBITDA and Cash flow from Operations for the PTS business were $17 million, ($1.3) million, and $6.6 million, respectively

Fourth quarter 2009 revenue was $132 million, an increase of 34%, or $34 million, compared to $98 million for the comparable period in 2008. For the 2009 fiscal year, total revenues were $438 million, an increase of 32% over 2008. The increases for both the fourth quarter and the full year compared to the same periods in the prior year were mainly attributable to growth from acquisitions, as organic growth from our existing business was estimated at approximately negative 4% for the fourth quarter and negative 3% for the full year.

Constellation acquired the PTS business from Continental Automotive AG ('Continental') on November 2, 2009. Given the substantial amount of non-recurring revenue historically earned by PTS, gross revenue from PTS has fluctuated significantly in the past and may continue to do so in the future. Constellation expects revenue from PTS to decline significantly in the twelve months following acquisition compared to revenue in the twelve months preceding acquisition. Excluding PTS, organic growth for Constellation was 3% in Q4 2009 and was flat for 2009. Excluding PTS, organic growth for the Public Sector was 7% in Q4 2009 and 5% for 2009.

The following table provides a summary of the impact of PTS on organic revenue growth:

Organic Revenue Growth
  Q4-09 2009
Constellation -4% -3%
Constellation excluding PTS 3% 0%
     
Public Sector -2% 2%
Public Sector excluding PTS 7% 5%

Adjusted EBITDA for the fourth quarter 2009 was $22 million, the same as Q4 2008. Fourth quarter Adjusted EBITDA per share on a fully diluted basis was $1.05 for both Q4 2009 and Q4 2008. Adjusted EBITDA for the year ended December 31, 2009 was $88 million, an increase of 37% over last year's Adjusted EBITDA of $64 million for the comparable period. Adjusted EBITDA per share on a fully diluted basis for the year ended December 31, 2009 increased 37% to $4.16, compared to $3.04 for the same period in 2008.

Adjusted Net Income for the fourth quarter 2009 was $15 million, compared to the prior year's fourth quarter Adjusted Net Income of $19 million, a 23% decline. Fourth quarter Adjusted Net Income per share on a fully diluted basis decreased 23% to $0.69 compared to $0.90 for the prior year's fourth quarter. Adjusted Net Income for the year ended December 31, 2009 was $62 million, an increase of 15% over last year's Adjusted Net Income of $54 million. Adjusted Net Income per share on a fully diluted basis for the twelve month period ended December 31, 2009 increased 15% to $2.95, compared to $2.57 for the same period in 2008.

Net Income for the fourth quarter 2009 was nil, compared to the prior year's fourth quarter Net Income of $4 million. On a fully diluted per share basis, this translates into net income per share of nil for the fourth quarter of 2009, compared to $0.19 in the same period of 2008. For the year ended December 31, 2009 Net Income was $10 million or $0.48 per diluted share compared to Net Income of $15 million or $0.71 per share for the same period in 2008.

The following table displays our revenue by reporting segment and the percentage change for the three and twelve months ended December 31, 2009 compared to the same periods in 2008:

  Three months ended Period-Over-Period Fiscal year ended Period-Over-Period
  Dec. 31, Change Dec. 31, Change
  2009 2008 $ % 2009 2008 $ %
  ($000, except percentages) ($000, except percentages)
Public Sector                
Licenses 9,759 7,433 2,326 31% 33,954 25,028 8,926 36%
Professional services and other:                
  Services 31,603 23,251 8,352 36% 97,234 65,440 31,794 49%
  Hardware and other 9,908 5,419 4,489 83% 30,008 16,114 13,894 86%
Maintenance 51,992 38,224 13,768 36% 175,423 124,187 51,236 41%
  103,262 74,327 28,935 39% 336,619 230,769 105,850 46%
 
Private Sector                
Licenses 2,561 2,570 (9) 0% 8,716 11,969 (3,253) -27%
Professional services and other:                
  Services 3,379 3,516 (137) -4% 12,461 15,443 (2,982) -19%
  Hardware and other 1,044 775 269 35% 3,789 3,844 (55) -1%
Maintenance 21,648 17,209 4,439 26% 76,355 68,507 7,848 11%
  28,632 24,070 4,562 19% 101,321 99,763 1,558 2%

Public Sector

For the quarter ended December 31, 2009, total revenue in the public sector segment increased 39%, or $29 million, to $103 million, compared to $74 million for the quarter ended December 31, 2008. For the year ended December 31, 2009, total revenue increased by 46%, or $106 million, to $337 million, compared to $231 million for the comparable period in 2008. The increases for both the three months and the full year were significant across all revenue types. Revenue growth from acquired businesses was significant for both the three and twelve month periods as we completed eighteen acquisitions since the beginning of 2008 in our public sector segment. It is estimated that acquisitions completed since the beginning of 2008 contributed approximately $31 million to our Q4 2009 revenues and $104 million to our revenues in the year ended December 31, 2009. Revenues decreased organically by 2% or $1 million in Q4 2009 and increased organically by 2% or $5 million in the year ended December 31, 2009 compared to the same periods in 2008. Excluding PTS, organic growth for the Public Sector was 7% in Q4 2009 and 5% for 2009.

Organic Revenue Growth
  Q4-09 2009
 
Public Sector -2% 2%
Public Sector excluding PTS 7% 5%

The organic revenue change was primarily driven by the following:

  • Trapeze operating group (decrease of approximately $4 million for Q4 and $2 million for the full year). For Q4 and the full year, Trapeze experienced an organic increase in maintenance revenues primarily due to continued strong bookings in their North American transit business. This growth was offset by organic shrinkage in the PTS business.

  • Harris operating group (increase of approximately $2 million for Q4 and $6 million for the full year). For Q4 and the full year, Harris had continued strong sales both to existing clients and to new customers as well as a strong increase in maintenance revenues from completed implementations.

Private Sector

For the quarter ended December 31, 2009, total revenue in the private sector segment increased 19%, or $5 million, to $29 million, compared to $24 million for the quarter ended December 31, 2008. For the year ended December 31, 2009 total revenue increased by 2%, or $1 million, to $101 million, compared to $100 million for the comparable period in 2008. Revenue growth from acquired businesses was significant for both the three and twelve month periods as we completed sixteen acquisitions since the beginning of 2008 in our private sector segment. It is estimated that acquisitions completed since the beginning of 2008 contributed approximately $7 million to our Q4 2009 revenues and $15 million to our revenues in the year ended December 31, 2009. Revenues decreased organically by 9% or $2 million in Q4 2009 and 13% or $13 million in the year ended December 31, 2009 compared to the same periods in 2008. The organic revenue decline was primarily driven by the following:

  • Homebuilder and Friedman operating groups (decrease of approximately $2 million for Q4 and $10 million for the full year). These operating groups continued to feel the effects of the housing slowdown in the U.S. The decline was apparent across all revenue streams as many of our existing and prospective clients have delayed purchasing decisions. Our Homebuilding and Friedman operating groups are significantly affected by decreasing demand for new housing and building products. These groups continue to see decreased demand for their products and services and we are uncertain when demand will improve given the weakness in the underlying industries that they serve.

  • Jonas operating group (decrease of approximately $0.6 million for Q4 and $3 million for the full year). Jonas experienced decreased demand in their construction, club and food services verticals. The decline was apparent in licenses and services as many existing and prospective clients delayed purchasing decisions.

"Excluding the impact of PTS, organic growth improved slightly in Q4 in all of our operating groups", said John Billowits, Chief Financial Officer of Constellation. "Although we generated positive cash flow from PTS in Q4, it may take some time before it contributes positive operating cash flow on a consistent basis. We are pleased with integration efforts to date and believe the PTS business represents a significant strategic opportunity for our Trapeze operating group."

Constellation advises that the dividend declared for the year ended December 31, 2009 is an eligible dividend for purposes of the Income Tax Act (Canada).

Conference Call and Webcast

Management will host a conference call at 8:30 a.m. (ET) on Thursday, March 4, 2010 to answer questions regarding the results. The teleconference numbers are 416-340-2218 or 866-226-1793. The call will also be webcast live and archived on Constellation's web site at www.csisoftware.com.

A replay of the conference call will be available as of 11:30 a.m. ET the same day until 11:59 p.m. ET on March 18, 2010. To access the replay, please dial 416-695-5800 or 800-408-3053 followed by the passcode 2245031#.

Forward Looking Statements

Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

Non-GAAP Measures

The term ''Adjusted EBITDA'' refers to net income before deducting interest, taxes, depreciation, other expenses (income), amortization, and foreign exchange (gain) loss. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset depreciation and the other items listed above. ''Adjusted EBITDA margin'' refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.

''Adjusted Net Income'' means net income plus non-cash expenses (income) such as amortization of intangible assets, future income taxes, and certain other income/expenses. The Company believes that Adjusted Net Income is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration amortization of intangible assets, future income taxes, and certain other non-cash income/expenses incurred by the Company from time to time. ''Adjusted Net Income margin'' refers to the percentage that Adjusted Net Income for any period represents as a portion of total revenue for that period.

Adjusted EBITDA and Adjusted Net Income are not recognized measures under GAAP and, accordingly, shareholders are cautioned that Adjusted EBITDA and Adjusted Net Income should not be construed as alternatives to net income determined in accordance with GAAP as an indicator of the financial performance of the Company. The Company's method of calculating Adjusted EBITDA and Adjusted Net Income may differ from other issuers and, accordingly, Adjusted EBITDA and Adjusted Net Income may not be comparable to similar measures presented by other issuers. See ''Results of Operations —Adjusted EBITDA'' and ''— Adjusted Net Income'' for a reconciliation of Adjusted EBITDA and Adjusted Net Income to net income.

The following table reconciles Adjusted EBITDA to net income:

  Three months ended Fiscal year ended
  Dec. 31, Dec. 31,
  2009 2008 2009 2008
  ($000, except percentages) ($000, except percentages)
     
Total revenue $ 131,894 $ 98,397 $       437,940 $ 330,532
 
Net income (loss) (10) 3,970 10,224 14,994
Add back:        
Income taxes 2,523 543 7,237 1,996
Foreign exchange loss (gain) 1,944 30 2,568 (455)
Interest expense 794 598 2,702 1,115
Other (income) expense (445) 288 996 413
Amortization of intangible assets 16,317 15,629 60,588 42,635
Depreciation 1,105 1,133 3,811 3,642
 
Adjusted EBITDA 22,228 22,191 88,126 64,340
Adjusted EBITDA margin 17% 23% 20% 19%
 
 
The following table reconciles Adjusted Net Income to net income:    
 
  Three months ended Fiscal year ended
  Dec. 31, Dec. 31,
  2009 2008 2009 2008
  ($000, except percentages) ($000, except percentages)
     
Total revenue $ 131,894 $ 98,397 $ 437,940 $ 330,532
 
Net income (loss) (10) 3,970 10,224 14,994
Add back:        
Amortization of intangible assets 16,317 15,629 60,588 42,635
Future income taxes (recovery) (1,649) (603) (8,398) (3,185)
 
Adjusted net income 14,658 18,996 62,414 54,444
Adjusted net income margin 11% 19% 14% 16%

The following tables provide supplemental income statement and cash flow information of PTS and MAJES:

Statement of Operations
For the three and twelve months ended December 31, 2009

  For the 3 months ended December 31, 2009 For the 12 months ended December 31, 2009
(Unaudited) Constellation Software Inc. (excluding MAJES and PTS) MAJES PTS Consolidated Constellation Software Inc. (excluding MAJES and PTS) MAJES PTS Consolidated
                                                 
Revenue $ 95,424   $ 19,464   $ 17,006   $ 131,894   $ 345,310   $ 75,624   $ 17,006   $ 437,940  
Cost of revenue   35,314     6,571     11,788     53,673     127,276     27,543     11,788     166,607  
Gross Profit   60,110     12,893     5,218     78,221     218,034     48,081     5,218     271,333  
                                                 
Total Expenses (pre amortization)   42,245     7,262     6,486     55,993     149,626     27,095     6,486     183,207  
                                                 
Adjusted EBITDA   17,865     5,631     (1,268 )   22,228     68,408     20,986     (1,268 )   88,126  
                                                 
  EBITDA as % Total Revenue   19 %   29 %   -7 %   17 %   20 %   28 %   -7 %   20 %
                                                   
  Depreciation   963     112     30     1,105     3,409     372     30     3,811  
                                                   
Income before the undernoted   16,902     5,519     (1,298 )   21,123     64,999     20,614     (1,298 )   84,315  
                                                 
Amortization of intangible assets   14,652     1,665     -     16,317     51,847     8,741     -     60,588  
                                                 
Other expenses (income)   2,825     (647 )   115     2,293     6,144     7     115     6,266  
                                                 
Income before income taxes   (575 )   4,501     (1,413 )   2,513     7,008     11,866     (1,413 )   17,461  
                                                 
Income taxes   1,880     558     86     2,523     4,178     2,974     86     7,237  
                                                 
Net Income (loss) $ (2,455 ) $ 3,943   $ (1,499 ) $ (10 ) $ 2,830   $ 8,892   $ (1,499 ) $ 10,224  

;

Cash flow from operating activities 
For the three and twelve months ended December 31, 2009 
                 
 For the 3 months ended December 31, 2009 For the 12 months ended December 31, 2009 
                 
(Unaudited) Constellation Software Inc. (excluding MAJES and PTS) MAJES PTS Consolidated Constellation Software Inc. (excluding MAJES and PTS) MAJES PTS Consolidated 
                         
Cash flows from operating activities:                        
 Net income (loss)$(2,455)$3,943 $(1,499)$(10)$2,830 $8,892 $(1,499)$10,224 
 Adjustments to reconcile net income to net cash flows from operations:                        
  Depreciation 963  112  30  1,105  3,409  372  30  3,811 
  Amortization of intangible assets 14,652  1,665  -  16,317  51,847  8,741  -  60,588 
  Future income taxes (2,259) 610  -  (1,649) (6,829) (1,569) -  (8,398)
  Other non-cash items 3,420  (647) 583  3,356  4,427  (2) 583  5,008 
 Change in non-cash operating working capital 10,656  (2,112) 7,414  15,958  1,067  2,934  7,414  11,415 
Cash flows from operating activities$24,977 $3,572 $6,528 $35,077 $56,752 $19,368 $6,528 $82,648 

The following table reconciles Adjusted EBITDA to net income for PTS and MAJES:

Adjusted EBITDA to net income reconciliation

For the three and twelve months ended December 31, 2009

  For the 3 months ended December 31, 2009   For the 12 months ended December 31, 2009  
(Unaudited) Constellation Software Inc. (excluding MAJES and PTS)   MAJES   PTS   Consolidated   Constellation  Software Inc.  (excluding MAJES and PTS)   MAJES   PTS   Consolidated  
Total revenue $ 95,424   $ 19,464   $ 17,006   $ 131,894   $ 345,310   $ 75,624   $ 17,006   $ 437,940  
                                                 
Net income (loss)   (2,455 )   3,943     (1,499 )   (10 )   2,830     8,892     (1,499 )   10,224  
Add back:                                                
Income tax expense   1,880     558     86     2,523     4,178     2,974     86     7,237  
Other expenses (income)   2,825     (647 )   115     2,293     6,144     7     115     6,266  
Amortization of intangible assets   14,652     1,665     -     16,317     51,847     8,741     -     60,588  
Depreciation   963     112     30     1,105     3,409     372     30     3,811  
                                                 
Adjusted EBITDA   17,865     5,631     (1,268 )   22,228     68,408     20,986     (1,268 )   88,126  
Adjusted EBITDA margin   19 %   29 %   -7 %   17 %   20 %   28 %   -7 %   20 %

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation Software is an international provider of market leading software and services to a number of industries across both the public and private sectors. The Company acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the specific needs of its customers in those industries.

CONSTELLATION SOFTWARE INC.
 
Consolidated Balance Sheets (In thousands of U.S. dollars)
 
December 31, 2009 and 2008
    2009     2008  
Assets            
             
Current assets:            
  Cash $ 33,249   $ 30,405  
  Short-term investments and marketable securities available for sale   22,323     9,979  
  Accounts receivable   99,742     61,079  
  Work in progress   21,349     15,392  
  Inventory   12,702     2,308  
  Prepaid expenses and other current assets   15,368     8,395  
  Notes receivable   3,833     -  
  Investment tax credits recoverable   2,250     1,504  
  Future income taxes   4,445     3,779  
    215,261     132,841  
             
Restricted cash   2,229     750  
Property and equipment   10,539     9,381  
Future income taxes   10,155     5,713  
Notes receivable   -     3,643  
Investment tax credits recoverable   2,133     1,808  
Other long-term assets   11,407     3,656  
Intangible assets   187,788     188,070  
Goodwill   40,977     39,937  
  $ 480,489   $ 385,799  
Liabilities and Shareholders' Equity            
             
Current liabilities:            
  Bank indebtedness $ 43,100   $ 60,200  
  Accounts payable and accrued liabilities   103,655     63,429  
  Acquisition holdback payments   3,587     10,901  
  Deferred revenue   136,857     115,466  
  Income taxes payable   3,751     3,197  
    290,950     253,193  
             
Future income taxes   28,121     26,778  
Other long-term liabilities   53,360     10,446  
             
Shareholders equity:            
  Capital stock   99,283     99,283  
  Shareholder loans   (646 )   (931 )
  Accumulated other comprehensive loss   (157 )   (6,901 )
  Retained earnings   9,578     3,931  
    108,058     95,382  
Commitments and contingencies            
Subsequent events            
  $ 480,489   $ 385,799  
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Operations
 
(In thousands of U.S. dollars, except per share amounts)
Years ended December 31, 2009 and 2008  
    2009     2008  
Revenue $ 437,940   $ 330,532  
Cost of revenue   166,607     124,690  
    271,333     205,842  
             
Research and development   65,632     48,224  
Sales and marketing   45,174     37,693  
General and administration   72,401     55,585  
Depreciation   3,811     3,642  
    187,018     145,144  
             
Income before the undernoted   84,315     60,698  
             
Amortization of intangible assets   60,588     42,635  
Other expenses   996     413  
Interest expense, net   2,702     1,115  
Foreign exchange (gain) loss   2,568     (455 )
Income before income taxes   17,461     16,990  
             
Income taxes (recovery)            
  Current   15,635     5,181  
  Future   (8,398 )   (3,185 )
    7,237     1,996  
Net income $ 10,224   $ 14,994  
             
Income per share:            
  Basic $ 0.48   $ 0.71  
  Diluted   0.48     0.71  
   
Weighted average number of shares outstanding:            
  Basic   21,165     21,140  
  Diluted   21,192     21,192  
  Outstanding at the end of the period   21,192     21,192  

CONSTELLATION SOFTWARE INC.

Consolidated Statements of Retained Earnings (deficit)

(In thousands of U.S. dollars)

Years ended December 31, 2009 and 2008            
    2009     2008  
   
Retained earnings (deficit),            
  beginning of period $ 3,931   $ (7,249 )
   
Net income   10,224     14,994  
   
Dividends   (4,577 )   (3,814 )
   
Retained earnings, end of period $ 9,578   $ 3,931  
   
Consolidated Statements of Comprehensive Income            
(In thousands of U.S. dollars)            
   
Years ended December 31, 2009 and 2008            
    2009     2008  
   
Net Income $ 10,224   $ 14,994  
   
Other comprehensive net income, net of tax:            
   
  Net unrealized mark-to-market adjustment
gain (loss) on available-for-sale financial
assets during the period (taxes - nil)
           
           
  4,853     (1,518 )
   
  Net unrealized foreign exchange adjustment
gain (loss) on available-for-sale financial
assets during the period (taxes - nil)
           
           
  426     (2,107 )
   
  Transfer of unrealized gain from prior periods
upon derecognition of available-for-sale
investments (taxes - nil)
           
           
  -     (39 )
   
  Amounts reclassified to earnings during
the period (taxes - nil)
           
  1,474     -  
   
  Foreign currency translation adjustment   (9 )   -  
   
Comprehensive income $ 16,968   $ 11,330  
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Cash Flows (In thousands of U.S. dollars)
 
Years ended December 31, 2009 and 2008
    2009     2008  
   
Cash flows from operating activities:            
  Net income $ 10,224   $ 14,994  
  Adjustments to reconcile net income to  net cash flows from operations:            
           
    Depreciation   3,811     3,642  
    Amortization of intangible assets   60,588     42,635  
    Non-cash interest   (167 )   (153 )
    Future income taxes   (8,398 )   (3,185 )
    Other   1,486     413  
    Foreign exchange (gain) loss   3,689     (423 )
  Change in non-cash operating working  capital            
  11,415     4,845  
  Cash flows from operating activities   82,648     62,768  
               
Cash flows from (used in) financing activities:            
  Increase (decrease) in other long-term liabilities   (661 )   297  
  Increase (decrease) in bank indebtedness   (17,100 )   40,858  
  Credit facility financing fees   (1,070 )   (1,268 )
  Dividends   (4,577 )   (3,814 )
  Repayment of shareholder loans   362     959  
  Cash flows from (used in) financing activities   (23,046 )   37,032  
               
Cash flows from (used in) investing activities:            
  Acquisition of businesses, net of cash  acquired            
  (37,905 )   (62,134 )
  Acquisition holdback payments   (4,166 )   (8,736 )
  Investment in VCG LLC   -     (85 )
  Additions to short-term investments,  marketable securities and other assets            
  (7,032 )   (12,379 )
  Increase in restricted cash   (1,479 )   -  
  Increase in other assets   (112 )   (1,442 )
  Property and equipment purchased   (3,506 )   (2,771 )
  Cash flows used in investing activities   (54,200 )   (87,547 )
             
Effect of currency translation adjustment on
cash and cash equivalents
           
  (2,558 )   (1,644 )
             
Increase in cash and cash equivalents   2,844     10,609  
             
Cash, beginning of period   30,405     19,796  
             
Cash, end of period $ 33,249   $ 30,405  
             
Supplemental cash flow information:            
  Income taxes paid $ 15,526   $ 3,791  
  Interest paid   3,663     1,821  
  Investment tax credits received   1,780     908  
  Interest received   752     660  

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