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Computer Modelling Group Announces Year-End Results

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Computer Modelling Group Ltd
Computer Modelling Group Ltd

CALGARY, Alberta, May 19, 2022 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. (“CMG” or the “Company”) announces its financial results for year ended March 31, 2022.

Annual Performance

($ thousands, unless otherwise stated)

March 31, 2022

 

March 31, 2021

 

March 31, 2020

 

Annuity/maintenance license revenue

53,406

 

55,934

 

63,974

 

Perpetual license revenue

4,819

 

3,619

 

4,672

 

Software license revenue

58,225

 

59,553

 

68,646

 

Professional service revenue

7,977

 

7,810

 

7,140

 

Total revenue

66,202

 

67,363

 

75,786

 

Operating profit

26,080

 

30,565

 

31,751

 

Operating profit (%)

39

%

45

%

42

%

Net income for the year

18,405

 

20,190

 

23,485

 

EBITDA(1)

30,278

 

34,836

 

36,111

 

Cash dividends declared and paid

16,064

 

16,055

 

32,097

 

Funds flow from operations

23,842

 

26,283

 

28,765

 

Free cash flow (1)

21,783

 

24,473

 

26,547

 

Total assets

125,148

 

122,491

 

120,866

 

Total shares outstanding

80,335

 

80,286

 

80,249

 

Trading price per share at March 31

5.36

 

5.75

 

3.83

 

Market capitalization at March 31

430,596

 

461,645

 

307,353

 

Per share amounts – ($/share)

 

 

 

Earnings per share – basic and diluted

0.23

 

0.25

 

0.29

 

Cash dividends declared and paid

0.20

 

0.20

 

0.40

 

Funds flow from operations per share – basic

0.30

 

0.33

 

0.36

 

Free cash flow per share – basic (1)

0.27

 

0.30

 

0.33

 

(1)   This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.

Quarterly Performance

 

Fiscal 2021

Fiscal 2022

($ thousands, unless otherwise stated)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Annuity/maintenance license revenue

14,523

14,144

13,477

13,790

12,286

13,239

13,575

14,306

Perpetual license revenue

-

1,775

660

1,184

125

846

1,497

2,351

Software license revenue

14,523

15,919

14,137

14,974

12,411

14,085

15,072

16,657

Professional services revenue

2,149

1,933

1,901

1,827

2,003

1,864

1,973

2,137

Total revenue

16,672

17,852

16,038

16,801

14,414

15,949

17,045

18,794

Operating profit

5,711

9,861

8,437

6,556

5,573

5,440

7,755

7,312

Operating profit (%)

34

55

53

39

39

34

45

39

Profit before income and other taxes

4,405

9,360

7,410

5,747

4,827

5,321

7,310

6,563

Income and other taxes

1,143

2,600

1,535

1,454

1,094

1,175

1,736

1,611

Net income for the period

3,262

6,760

5,875

4,293

3,733

4,146

5,574

4,952

EBITDA(1)

6,767

10,933

9,509

7,627

6,596

6,473

8,843

8,366

Cash dividends declared and paid

4,013

4,013

4,015

4,014

4,015

4,016

4,017

4,016

Funds flow from operations

4,703

7,991

7,322

6,267

4,811

4,904

7,022

7,105

Free cash flow(1)

4,239

7,474

7,005

5,755

4,478

4,494

6,227

6,584

Per share amounts – ($/share)

 

 

 

 

 

 

 

 

Earnings per share (EPS) – basic and diluted

0.04

0.08

0.07

0.05

0.05

0.05

0.07

0.06

Cash dividends declared and paid

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

Funds flow from operations per share – basic

0.06

0.10

0.09

0.08

0.06

0.06

0.09

0.09

Free cash flow per share – basic(1)

0.05

0.09

0.09

0.07

0.06

0.06

0.08

0.08

(1)   This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.

Commentary on Quarterly Performance

For the Three Months Ended

For the Year Ended

March 31, 2022 and compared to the same period of the previous fiscal year, when appropriate:

 

  • Annuity/maintenance license revenue increased by 4%;

  • Annuity/maintenance license revenue decreased by 5%;

  • Perpetual license revenue increased by $1.2 million, or 99%;

  • Perpetual license revenue increased by $1.2 million, or 33%;

  • Total revenue increased by 12%;

  • Total revenue decreased by 2%;

  • Total operating expenses increased by 12%. Adjusted for CEWS and CERS benefits, operating expenses increased by 8%;

  • Total operating expenses increased by 9%. Adjusted for CEWS and CERS benefits and a one-time restructuring charge, operating expenses decreased by 3%;

  • Quarterly operating profit margin was 39%, consistent with the comparative quarter. Adjusted for CEWS and CERS benefits, operating profit margin was 34% and 32%, respectively;

  • Year-to-date operating profit margin was 39%, down from the comparative period’s figure of 45%. Adjusted for CEWS and CERS benefits and the one-time restructuring charge, operating profit was 38% and 37%, respectively;

  • Basic EPS of $0.06 was $0.01 higher than the comparative quarter;

  • Basic EPS of $0.23 was lower than the comparative year’s EPS of $0.25;

  • Achieved free cash flow per share of $0.08;

  • Achieved free cash flow per share of $0.27;

  • Declared and paid a dividend of $0.05 per share.

  • Declared and paid dividends of $0.20 per share.

Revenue

Three months ended March 31,

2022

 

2021

 

$ change

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Software license revenue

16,657

 

14,974

 

1,683

11

%

Professional services revenue

2,137

 

1,827

 

310

17

%

Total revenue

18,794

 

16,801

 

1,993

12

%

 

 

 

 

 

Software license revenue as a % of total revenue

89

%

89

%

 

 

Professional services revenue as a % of total revenue

11

%

11

%

 

 


Years ended March 31,

2022

 

2021

 

$ change

 

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Software license revenue

58,225

 

59,553

 

(1,328

)

-2

%

Professional services revenue

7,977

 

7,810

 

167

 

2

%

Total revenue

66,202

 

67,363

 

(1,161

)

-2

%

 

 

 

 

 

Software license revenue as a % of total revenue

88

%

88

%

 

 

Professional services revenue as a % of total revenue

12

%

12

%

 

 

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 March 31, 2022 increased by 12%, due to increases in both software license revenue and professional services revenue.

Total revenue for the year ended March 31, 2022 decreased by 2%, due to a decrease in software license revenue, slightly offset by an increase in professional services revenue.

Software License Revenue

Three months ended March 31,

2022

 

2021

 

$ change

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Annuity/maintenance license revenue

14,306

 

13,790

 

516

4

%

Perpetual license revenue

2,351

 

1,184

 

1,167

99

%

Total software license revenue

16,657

 

14,974

 

1,683

11

%

 

 

 

 

 

Annuity/maintenance as a % of total software license revenue

86

%

92

%

 

 

Perpetual as a % of total software license revenue

14

%

8

%

 

 


Years ended March 31,

2022

 

2021

 

$ change

 

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Annuity/maintenance license revenue

53,406

 

55,934

 

(2,528

)

-5

%

Perpetual license revenue

4,819

 

3,619

 

1,200

 

33

%

Total software license revenue

58,225

 

59,553

 

(1,328

)

-2

%

 

 

 

 

 

Annuity/maintenance as a % of total software license revenue

92

%

94

%

 

 

Perpetual as a % of total software license revenue

8

%

6

%

 

 

Total software license revenue for the three months ended March 31, 2022 increased by 11%, compared to the same period of the previous fiscal year, due to increases in both perpetual license revenue and annuity/maintenance license revenue. Annuity/maintenance license revenue increased by 4%, due to increases in Canada and the Eastern Hemisphere, partially offset by decreases in the United States and South America.

During the year ended March 31, 2022, CMG’s total software license revenue decreased by 2%, compared to the previous fiscal year, due to a decrease in annuity/maintenance license revenue, partially offset by an increase in perpetual license revenue. Annuity/maintenance license revenue decreased by 5%, due to decreases in the United States and the Eastern Hemisphere, partially offset by increases in South America and Canada.

Software Revenue by Geographic Region

Three months ended March 31,

2022

2021

$ change

 

% change

 

($ thousands)

 

 

 

 

Annuity/maintenance license revenue

 

 

 

 

Canada

3,274

3,012

262

 

9

%

United States

3,408

3,580

(172

)

-5

%

South America

1,663

1,752

(89

)

-5

%

Eastern Hemisphere(1)

5,961

5,446

515

 

9

%

 

14,306

13,790

516

 

4

%

Perpetual license revenue

 

 

 

 

Canada

-

-

-

 

-

 

United States

-

32

(32

)

-100

%

South America

-

-

-

 

-

 

Eastern Hemisphere

2,351

1,152

1,199

 

104

%

 

2,351

1,184

1,167

 

99

%

Total software license revenue

 

 

 

 

Canada

3,274

3,012

262

 

9

%

United States

3,408

3,612

(204

)

-6

%

South America

1,663

1,752

(89

)

-5

%

Eastern Hemisphere

8,312

6,598

1,714

 

26

%

 

16,657

14,974

1,683

 

11

%


Years ended March 31,

2022

2021

$ change

 

% change

 

($ thousands)

 

 

 

 

Annuity/maintenance license revenue

 

 

 

 

Canada

12,699

12,464

235

 

2

%

United States

12,910

15,113

(2,203

)

-15

%

South America

6,858

6,164

694

 

11

%

Eastern Hemisphere(1)

20,939

22,193

(1,254

)

-6

%

 

53,406

55,934

(2,528

)

-5

%

Perpetual license revenue

 

 

 

 

Canada

-

-

-

 

-

 

United States

401

32

369

 

1153

%

South America

-

1,020

(1,020

)

-100

%

Eastern Hemisphere

4,418

2,567

1,851

 

72

%

 

4,819

3,619

1,200

 

33

%

Total software license revenue

 

 

 

 

Canada

12,699

12,464

235

 

2

%

United States

13,311

15,145

(1,834

)

-12

%

South America

6,858

7,184

(326

)

-5

%

Eastern Hemisphere

25,357

24,760

597

 

2

%

 

58,225

59,553

(1,328

)

-2

%

(1)   Includes Europe, Africa, Asia and Australia.

During the three months and year ended March 31, 2022, compared to the same periods of the previous fiscal year, total software license revenue increased in the Eastern Hemisphere and Canada and decreased in the United States and South America.

The Canadian region (representing 22% of annual total software license revenue) experienced 9% and 2% increases in annuity/maintenance license revenue during the three months and year ended March 31, 2022, respectively, due to a returning customer and increased licensing by some existing customers.

The United States (representing 23% of annual total software license revenue), experienced decreases of 5% and 15% in annuity/maintenance license revenue during the three months and year ended March 31, 2022, compared to the same periods of the previous fiscal year. The decreases were largely due to the same factors that affected the region’s revenue in the previous fiscal year: consolidation in the industry and reduced licensing due to ongoing challenges experienced by US unconventional shale plays. Perpetual license revenue decreased slightly during the quarter and increased during the year, compared to the same periods of the previous fiscal year.

South America (representing 12% of annual total software license revenue) showed a decrease of 5% in annuity/maintenance license revenue during the three months ended March 31, 2022, mainly due to reactivation of maintenance on perpetual licenses in the comparative quarter. During the year ended March 31, 2022, annuity/maintenance license revenue from South America increased by 11%, compared to the previous fiscal year, primarily due to a new multi-year lease that included CoFlow. There were no perpetual sales in South America during the current quarter or year.

The Eastern Hemisphere (representing 43% of annual total software license revenue) experienced a 9% increase in annuity/maintenance license revenue during the three months ended March 31, 2022, primarily due to a three-year agreement with a customer in Asia. During the year ended March 31, 2022, annuity/maintenance license revenue from the Eastern Hemisphere decreased by 6%, due to reduced licensing by some customers. Perpetual revenue during the three months and year ended December 31, 2022 increased by 104% and 72%, respectively, as a result of perpetual sales realized in Asia and Europe.

Deferred Revenue

($ thousands)

Fiscal 2022

Fiscal 2021

$ change

 

% change

 

Deferred revenue at:

 

 

 

 

Q1 (June 30)

23,451

25,492

(2,041

)

-8

%

Q2 (September 30)

21,242

19,549

1,693

 

9

%

Q3 (December 31)

23,056

15,347

7,709

 

50

%

Q4 (March 31)

30,454

30,461

(7

)

0

%

CMG’s deferred revenue consists primarily of amounts for prepaid licenses. Our annuity/maintenance revenue is deferred and recognized ratably over the license period, which is generally one year or less. Amounts are deferred for licenses that have been provided and revenue recognition reflects the passage of time.

The above table illustrates the normal trend in the deferred revenue balance from the beginning of the calendar year (which corresponds with Q4 of our fiscal year), when most renewals occur, to the end of the calendar year (which corresponds with Q3 of our fiscal year). Our fourth quarter corresponds with the beginning of the fiscal year for most oil and gas companies, representing a time when they enter a new budget year and sign/renew their contracts.

The deferred revenue balance at the end of Q4 of fiscal 2022 was comparable to Q4 of fiscal 2021.

Expenses

Three months ended March 31,

2022

2021

$ change

 

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Sales, marketing and professional services

4,933

4,481

452

 

10

%

Research and development

4,106

4,036

70

 

2

%

General and administrative

2,443

1,728

715

 

41

%

Total operating expenses

11,482

10,245

1,237

 

12

%

 

 

 

 

 

Direct employee costs(1)

7,889

7,970

(81

)

-1

%

Other corporate costs(1)

3,593

2,275

1,318

 

58

%

 

11,482

10,245

1,237

 

12

%


Years ended March 31,

2022

2021

$ change

% change

 

($ thousands)

 

 

 

 

 

 

 

 

 

Sales, marketing and professional services

15,995

15,690

305

2

%

Research and development

16,705

15,194

1,511

10

%

General and administrative

7,422

5,914

1,508

25

%

Total operating expenses

40,122

36,798

3,324

9

%

 

 

 

 

 

Direct employee costs(1)

30,592

28,227

2,365

8

%

Other corporate costs(1)

9,530

8,571

959

11

%

 

40,122

36,798

3,324

9

%

(1)   This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.

Adjusted total operating expenses, adjusted direct employee costs and adjusted other corporate costs are non-IFRS financial measures. They do not have a standard meaning prescribed by IFRS and, accordingly, may not be comparable to measures used by other companies. They are calculated by excluding CEWS subsidies, CERS subsidies and restructuring charges, as applicable, from the related non-adjusted measures. Management believes that analyzing the Company’s expenses exclusive of these items illustrates underlying trends in our costs and provides better comparability between periods.

The following tables provide a reconciliation of total operating expenses to adjusted total operating expenses, direct employee costs to adjusted direct employee costs and other corporate costs to adjusted other corporate costs:

 


Three months ended
March 31

 

Years ended
March 31

($ thousands)

2022

2021

2022

 

2021

 

 

 

 

 

Total operating expenses

11,482

10,245

40,122

 

36,798

CEWS

916

1,116

1,499

 

5,206

CERS

-

109

183

 

248

Restructuring charge

-

-

(851

)

-

Adjusted total operating expenses

12,398

11,470

40,953

 

42,252

 

 

 

 

 

Direct employee costs

7,889

7,970

30,592

 

28,227

CEWS

916

1,116

1,499

 

5,206

Restructuring charge

-

-

(851

)

-

Adjusted direct employee costs

8,805

9,086

31,240

 

33,433

 

 

 

 

 

Other corporate costs

3,593

2,275

9,530

 

8,571

CERS

-

109

183

 

248

Adjusted other corporate costs

3,593

2,384

9,713

 

8,819

For the three months ended March 31, 2022, adjusted direct employee costs decreased by $0.3 million, or 3%, compared to the same period of the previous fiscal year, primarily due to lower headcount. For the year ended March 31, 2022, adjusted direct employee costs decreased by $2.2 million, or 7%, compared to the previous fiscal year, due to lower headcount and lower stock-based compensation expense.

Adjusted other corporate costs increased by 51% and 10% for the three months and year ended March 31, 2022, compared to the same periods of the previous fiscal year, primarily due to the write-off of receivables from Russian customers as a result of the Company’s decision to suspend doing business in Russia.

Outlook

During fiscal 2022, CMG had to navigate a very volatile economic environment characterized by fluctuating demand for oil and gas and volatility in global energy prices, which were influenced by the uncertainty of the COVID-19 pandemic and geopolitical instability.

Compared to fiscal 2021, our fiscal 2022 total revenue decreased by 2%, due to a decrease in software license revenue, which also decreased by 2%. Total software license revenue decreased as the headwinds of the first two quarters offset the growth of the last two quarters of fiscal 2022. On a full-year basis, Canada and the Eastern Hemisphere grew by 2% each, while the Unites States and South America experienced decreases. CMG experienced growth in Canada as a result of increased licensing, and the Eastern Hemisphere segment grew as a result of strong perpetual sales. Similar to the previous fiscal year, the United States continued to be affected by industry consolidation and reduced licensing due to ongoing challenges experienced by US unconventional shale plays. While South America was positively impacted by the new multi-year lease that included CoFlow, it recorded lower perpetual sales in the current fiscal year.

Annuity and maintenance license revenue decreased by 5% compared to last year. This was due to decreases in the first two quarters of fiscal 2022, which were impacted by ongoing oil and gas industry disruption caused by the pandemic, corporate consolidations, economic pressures, and lower unconventional shale activity. Our annuity and maintenance revenue improved in the last two quarters of fiscal 2022 with a 4% increase experienced in the most recent quarter, which was supported by improved industry conditions and the CoFlow lease in South America.

Perpetual license sales increased by 33% compared to last year, supported by sales in the United States and the Eastern Hemisphere.

During fiscal 2022, our efforts towards the commercialization of CoFlow were rewarded with four additional leases, including a multi-year lease to Petroleo Brasileiro S.A. (Petrobras), one of the original partners of the CoFlow project. Subsequent to fiscal year end, we closed another deal with a Middle Eastern customer for commercial licensing of CoFlow. We are pleased that the revenue stream from our existing CoFlow commercial customers, combined with the development funding from Shell, is projected to generate a positive margin for CoFlow in the upcoming fiscal year.

Fiscal 2022 adjusted total operating expenses decreased by 3% due to lower headcount and stock-based compensation expense. At the end of the second quarter, we restructured our Calgary office, which resulted in lower headcount, incurring a one-time restructuring cost of $0.9 million before tax. Effective July 1, 2021, we also revised staff compensation, resulting in partial reinstatements of staff salaries that had been reduced since July 1, 2020. Executives’ and directors’ cash compensation remained reduced in fiscal 2022.

Adjusted other corporate costs increased in fiscal 2022 compared to last year primarily due to the write-off of receivables from Russian customers as a result of CMG’s decision to suspend doing business in Russia. As we generated approximately 1% of annual revenue from Russia in the past few years, we do not expect our decision to have a significant impact on our ongoing operations.

Adjusted operating profit margin was at 38%, compared to 37% recorded last year, and adjusted EBITDA was 44% of total revenue, which is comparable to the last year’s adjusted EBITDA. We are pleased with this fiscal year’s achievement in profitability margins, particularly in light of last year’s operating results being positively affected by the receipt of the wage-related (“CEWS”) and rent-related (“CERS”) COVID-related subsidies ($5.5 million in fiscal 2021 compared to $1.7 million in fiscal 2022), and our current fiscal year’s results being negatively affected by a combination of the one-time restructuring charge and the write-off of Russian receivables.

Basic earnings per share was $0.23, compared to $0.25 last year, due to the factors noted in the preceding paragraph.

CMG continues to maintain a strong financial position and closed the year with $59.7 million of cash and no debt. We generated $0.27 per share of free cash flow, compared to $0.30 per share during the previous year. The cash flows in the previous year were positively affected by the CEWS and CERS subsidies received.

As we emerge from the global pandemic, oil prices continue to strengthen having a positive effect on our customers’ cash flows, and as new opportunities are created by demand for energy transition projects, we look forward to fiscal 2023 with increasing optimism. With fiscal 2022 renewal season mostly behind us, our focus is on generating customer traction and growth for the upcoming fiscal year. We are also cautious as we continue to face complex market conditions with volatile energy prices, geopolitical challenges, ESG policy tightening, supply and demand imbalances, and increasing inflation. Despite these challenges, we are encouraged by the strength of our technology and our team. Our technology has never been more relevant and important as during these times. Retaining our employees, prioritizing product development, and maintaining global customer technical support continue to be instrumental to our ongoing success. In addition, our global diversification helps CMG mitigate the effects of world-wide instability.

On May 10, 2022, Ryan Schneider stepped down as President and Chief Executive Officer and as a director of CMG, in order to pursue other opportunities. Ryan made many contributions to CMG during his eleven-year tenure. CMG’s Board of Directors, and I personally, thank Ryan for his leadership and commitment to CMG over the years.

Pramod Jain succeeded Ryan as Chief Executive Officer. Pramod is a seasoned executive with over 15 years of experience in the software industry with a demonstrated track record of leading multiple acquisition businesses and numerous turnarounds. We are excited for Pramod to join CMG. His history and skillset of leading diverse teams to international success will be of benefit to CMG and we look forward to the next chapter of growth and success under his leadership.

For further details on the results, please refer to CMG’s Management Discussion and Analysis (“MD&A”) and Consolidated Financial Statements, which are available on SEDAR at www.sedar.com or on CMG’s website at www.cmgl.ca.

Additional IFRS Measure

Funds flow from operations is an additional IFRS measure that the Company presents in its consolidated statements of cash flows. Funds flow from operations is calculated as cash flows provided by operating activities adjusted for changes in non-cash working capital. Management believes that this measure provides useful supplemental information about operating performance and liquidity, as it represents cash generated during the period, regardless of the timing of collection of receivables and payment of payables, which may reduce comparability between periods.

Non-IFRS Financial Measures

Certain financial measures in this press release – namely, EBITDA, free cash flow, free cash flow per share, direct employee costs, other corporate costs, adjusted total operating expenses, adjusted direct employee costs and adjusted other corporate costs – do not have a standard meaning prescribed by IFRS and, accordingly, may not be comparable to measures used by other companies.

Certain additional disclosures for these non-IFRS financial measures have been incorporated by reference and can be found on page 2 in the Company’s MD&A for the three months and year ended March 31, 2022, available on SEDAR at www.sedar.com and on the Company’s website under the Investors section at www.cmgl.ca/investors.

Reconciliations of the non-IFRS financial measures to the most directly comparable IFRS financial measure are presented below:

Free Cash Flow Reconciliation to Funds Flow from Operations

 

 

 

Fiscal 2021

Fiscal 2022

($ thousands, unless otherwise stated)

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

 

 

 

 

 

 

 

 

 

Funds flow from operations

4,703

 

7,991

 

7,322

 

6,267

 

4,811

 

4,904

 

7,022

 

7,105

 

Capital expenditures

(149

)

(200

)

(7

)

(41

)

(27

)

(133

)

(481

)

(62

)

Repayment of lease liabilities

(315

)

(317

)

(310

)

(471

)

(306

)

(277

)

(314

)

(459

)

Free cash flow

4,239

 

7,474

 

7,005

 

5,755

 

4,478

 

4,494

 

6,227

 

6,584

 

Weighted average shares – basic
(thousands)

80,249

 

80,265

 

80,286

 

80,286

 

80,286

 

80,307

 

80,335

 

80,335

 

Free cash flow per share – basic

0.05

 

0.09

 

0.09

 

0.07

 

0.06

 

0.06

 

0.08

 

0.08

 


Years ended March 31,

 

 

 

($ thousands)

2022

 

2021

 

2020

 

 

 

 

 

Funds flow from operations

23,842

 

26,283

 

28,765

 

Capital expenditures

(703

)

(397

)

(990

)

Repayment of lease liabilities

(1,356

)

(1,413

)

(1,228

)

Free cash flow

21,783

 

24,473

 

26,547

 

Weighted average shares – basic (thousands)

80,316

 

80,272

 

80,240

 

Free cash flow per share – basic

0.27

 

0.30

 

0.33

 

Forward-Looking Information

Certain information included in this press release is forward-looking. Forward-looking information includes statements that are not statements of historical fact and which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as investment objectives and strategy, the development plans and status of the Company’s software development projects, the Company’s intentions, results of operations, levels of activity, future capital and other expenditures (including the amount, nature and sources of funding thereof), business prospects and opportunities, research and development timetable, and future growth and performance. When used in this press release, statements to the effect that the Company or its management “believes”, “expects”, “expected”, “plans”, “may”, “will”, “projects”, “anticipates”, “estimates”, “would”, “could”, “should”, “endeavours”, “seeks”, “predicts” or “intends” or similar statements, including “potential”, “opportunity”, “target” or other variations thereof that are not statements of historical fact should be construed as forward-looking information. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management of the Company. The Company believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Corporate Profile

CMG is a computer software technology company serving the energy industry. The Company is a leading supplier of advanced process reservoir modelling software, with a diverse customer base of international oil companies and technology centers in approximately 60 countries. CMG’s existing technology has differentiating capabilities built into its software products that can also be directly applied to the energy transition needs of its customers. The Company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities. CMG has sales and technical support services based in Calgary, Houston, London, Dubai, Bogota and Kuala Lumpur. CMG’s Common Shares are listed on the Toronto Stock Exchange (“TSX”) and trade under the symbol “CMG”.


Consolidated Statements of Financial Position

(thousands of Canadian $)

March 31, 2022

 

March 31, 2021

 

 

 

 

Assets

 

 

Current assets:

 

 

Cash

59,660

 

49,068

 

Trade and other receivables

17,507

 

23,239

 

Prepaid expenses

792

 

820

 

Prepaid income taxes

959

 

8

 

 

78,918

 

73,135

 

Property and equipment

10,908

 

12,025

 

Right-of-use assets

33,113

 

35,509

 

Deferred tax asset

2,209

 

1,822

 

Total assets

125,148

 

122,491

 

 

 

 

Liabilities and shareholders’ equity

 

 

Current liabilities:

 

 

Trade payables and accrued liabilities

6,819

 

6,316

 

Income taxes payable

13

 

49

 

Deferred revenue

30,454

 

30,461

 

Lease liabilities

1,626

 

1,356

 

 

38,912

 

38,182

 

Long-term stock-based compensation liability

1,556

 

1,281

 

Long-term lease liabilities

37,962

 

39,606

 

Total liabilities

78,430

 

79,069

 

 

 

 

Shareholders’ equity:

 

 

Share capital

80,248

 

80,051

 

Contributed surplus

15,009

 

14,251

 

Deficit

(48,539

)

(50,880

)

Total shareholders’ equity

46,718

 

43,422

 

Total liabilities and shareholders’ equity

125,148

 

122,491

 


Consolidated Statements of Operations and Comprehensive Income

Years ended March 31,

2022

 

2021

 

(thousands of Canadian $ except per share amounts)

 

 

 

 

 

Revenue

66,202

 

67,363

 

 

 

 

Operating expenses

 

 

Sales, marketing and professional services

15,995

 

15,690

 

Research and development

16,705

 

15,194

 

General and administrative

7,422

 

5,914

 

 

40,122

 

36,798

 

Operating profit

26,080

 

30,565

 

 

 

 

Finance income

440

 

374

 

Finance costs

(2,499

)

(4,017

)

Profit before income and other taxes

24,021

 

26,922

 

Income and other taxes

5,616

 

6,732

 

 

 

 

Net and total comprehensive income

18,405

 

20,190

 

 

 

 

Earnings per share – basic and diluted

0.23

 

0.25

 

Dividend per share

0.20

 

0.20

 


Consolidated Statements of Cash Flows

Years ended March 31,

2022

 

2021

 

(thousands of Canadian $)

 

 

 

 

 

Operating activities

 

 

Net income

18,405

 

20,190

 

Adjustments for:

 

 

Depreciation

4,198

 

4,271

 

Deferred income tax recovery

(386

)

(831

)

Stock-based compensation

1,625

 

2,653

 

Funds flow from operations

23,842

 

26,283

 

Movement in non-cash working capital:

 

 

Trade and other receivables

5,732

 

3,038

 

Trade payables and accrued liabilities

107

 

(361

)

Prepaid expenses

28

 

93

 

Income taxes payable

(987

)

752

 

Deferred revenue

(7

)

(3,377

)

Decrease in non-cash working capital

4,873

 

145

 

Net cash provided by operating activities

28,715

 

26,428

 

 

 

 

Financing activities

 

 

Repayment of lease liabilities

(1,356

)

(1,413

)

Dividends paid

(16,064

)

(16,055

)

Net cash used in financing activities

(17,420

)

(17,468

)

 

 

 

Investing activities

 

 

Property and equipment additions

(703

)

(397

)

Increase in cash

10,592

 

8,563

 

Cash, beginning of period

49,068

 

40,505

 

Cash, end of period

59,660

 

49,068

 

 

 

 

Supplementary cash flow information

 

 

Interest received

440

 

374

 

Interest paid

2,004

 

2,074

 

Income taxes paid

6,113

 

6,107

 

See accompanying notes to consolidated financial statements, which are available on SEDAR at www.sedar.com or on CMG’s website at www.cmgl.ca.

For further information, contact:

Pramod Jain
Chief Executive Officer
(403) 531-1300
pramod.jain@cmgl.ca

or

Sandra Balic
Vice President, Finance & CFO
(403) 531-1300
sandra.balic@cmgl.ca

www.cmgl.ca


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