CSU Constellation Software Inc

Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced a correction to the supplemental cashflow information provided on its Altera business unit included in the Company’s Management Discussion and Analysis for the first quarter ended March 31, 2023. The correct information as well as the previously disclosed information is summarized below.

		For the three months ended March 31, 2023
(Unaudited)		ConstellationSoftware Inc. (excluding Altera)		Altera		Consolidated
CORRECT INFORMATION
Net cash flows from operating activities		592		40		632
Free cash flow available to shareholders	1	420		33		453
PREVIOUSLY REPORTED
Net cash flows from operating activities		536		96		632
Free cash flow available to shareholders	1	393		60		453

1. See Non-IFRS measures. 

Non-IFRS Measures

Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on other facilities, credit facility transaction costs, repayments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our hurdle rate.  

FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

The following table reconciles FCFA2S to net cash flows from operating activities:

		Three months ended March 31,
		2023		2022
	($ in millions)
Net cash flows from operating activities		632		498
Adjusted for:
Interest paid on lease obligations		(3	)	(2	)
Interest paid on other facilities		(26	)	(10	)
Credit facility transaction costs		(2	)	(1	)
Payments of lease obligations		(25	)	(22	)
IRGA / TSS membership liability revaluation charge		(39	)	(27	)
Property and equipment purchased		(10	)	(8	)
Interest and dividends received		1		0
		529		429
Less amount attributable to
Non-controlling interests		(76	)	(105	)
Free cash flow available to shareholders		453		324
Due to rounding, certain totals may not foot.

 

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.

For further information:

Jamal BakshChief Financial Officer (416) 861-9677 info@csisoftware.comwww.csisoftware.com

SOURCE: CONSTELLATION SOFTWARE INC.