Quick Summary:
Consolidated Statements of Financial Position March 31, 2025 March 31, 2024 April 1, 2023 (thousands of Canadian $) Assets Current assets: Cash43,884 63,083 66,850 Restricted cash 362 142 - Trade and other receivables41,457 36,550 23,910 Prepaid expenses2,572 2,321 1,060 Prepaid income taxes1,641 3,841 444 89,916 105,937 92,264 Intangible assets59,955 23,683 1,321 Right-of-use assets28,443 29,072 30,733 Property and equipment10,157 9,877 10,366 Goodwill15,814 4,399 - Deferred tax asset471 - 2,444 Total assets204,756 172,968 137,128 Liabilities and shareholders’ equity Current liabilities: Trade payables and accrued liabilities18,452 18,551 11,126 Income taxes payable2,667 2,136 33 Acquisition holdback payable188 2,292 - Acquisition earnout3,864 - - Deferred revenue40,276 41,120 34,797 Lease liabilities2,278 2,566 1,829 Government loan310 - - 68,035 66,665 47,785 Lease liabilities34,668 34,395 36,151 Stock-based compensation liabilities256 624 742 Government loan1,319 - - Acquisition earnout- 1,503 - Acquisition holdback payable1,257 - - Other long-term liabilities212 305 - Deferred tax liabilities13,102 1,661 - Total liabilities118,849 105,153 84,678 Shareholders’ equity: Share capital94,849 87,304 81,820 Contributed surplus15,460 15,667 15,471 Cumulative translation adjustment4,326 (367)- Deficit(28,728)(34,789)(44,841)Total shareholders’ equity85,907 67,815 52,450 Total liabilities and shareholders' equity204,756 172,968 137,128 Consolidated Statements of Operations and Comprehensive Income Years ended March 31, (thousands of Canadian $ except per share amounts)2025 2024 Revenue129,446 108,679 Cost of revenue24,940 17,224 Gross profit104,506 91,455 Operating expenses Sales and marketing18,617 14,957 Research and development30,142 23,679 General and administrative21,599 18,835 70,358 57,471 Operating profit34,148 33,984 Finance income2,968 3,146 Finance costs(2,080)(1,908)Change in fair value of contingent consideration(2,151)- Profit before income and other taxes32,885 35,222 Income and other taxes10,448 8,963 Net income22,437 26,259 Other comprehensive income: Foreign currency translation adjustment4,693 (367)Other comprehensive income4,693 (367)Total comprehensive income27,130 25,892 Net income per share – basic0.27 0.32 Net income per share – diluted0.27 0.32 Dividend per share0.20 0.20 Consolidated Statements of Cash Flows Years ended March 31, (thousands of Canadian $)2025 2024 Operating activities Net income22,437 26,259 Adjustments for: Depreciation and amortization of property, equipment, right-of use assets4,756 4,187 Amortization of intangible assets3,709 1,501 Deferred income tax expense (recovery)(776)3,518 Stock-based compensation(1,297)2,795 Foreign exchange and other non-cash items800 (5)Change in fair value of contingent consideration2,151 - Funds flow from operations31,780 38,255 Movement in non-cash working capital: Trade and other receivables(527)(6,697)Trade payables and accrued liabilities(818)2,618 Prepaid expenses and other assets(169)(1,183)Income taxes receivable (payable)2,421 (1,826)Deferred revenue(2,770)4,910 Change in non-cash working capital(1,863)(2,178)Net cash provided by operating activities29,917 36,077 Financing activities Repayment of acquired line of credit- (2,012)Repayment of government loan(141)- Proceeds from issuance of common shares5,597 4,193 Repayment of lease liabilities(2,750)(2,355)Dividends paid(16,376)(16,207)Net cash used in financing activities(13,670)(16,381) Investing activities Corporate acquisition, net of cash acquired(27,292)(22,814)Repayment of acquisition holdback payable(9,247)- Property and equipment additions, net of disposals(1,422)(650)Net cash used in investing activities(37,961)(23,464)Decrease in cash(21,714)(3,768)Effect of foreign exchange on cash2,515 1 Cash, beginning of year63,083 66,850 Cash, end of year43,884 63,083 Supplementary cash flow information Interest received2,605 3,096 Interest paid1,891 1,908 Income taxes paid11,370 7,201 CORPORATE PROFILE CMG Group (TSX:CMG) is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world.
SUMMARY OF FINANCIAL PERFORMANCE Three months ended March 31,Year ended March 31,($ thousands, except per share data)20252024% change 20252024% change Annuity/maintenance licenses19,43619,661(1%)77,52571,5308%Annuity license fee4,7281,142314%9,2805,14680%Recurring revenue(1) (2)24,16420,80316%86,80576,67613%Perpetual licenses5542,130(74%)5,6175,739(2%)Total software license revenue24,71822,9338%92,42282,41512%Professional services8,9659,358(4%)37,02426,26441%Total revenue33,68332,2914%129,446108,67919%Cost of revenue6,7496,4704%24,94017,22445%Operating expenses Sales & marketing5,0944,36117%18,61714,95724%Research and development8,1297,6077%30,14223,67927%General & administrative4,8765,576(13%)21,59918,83515%Operating expenses18,09917,5443%70,35857,47122%Operating profit8,8358,2777%34,14833,984-%Net income 5,1047,229(29%)22,43726,259(15%)Adjusted EBITDA (1)10,50010,2952%44,00943,3452%Adjusted EBITDA Margin (1)31%32% 34%40% Earnings per share – basic & diluted0.060.09(33%)0.270.32(16%)Funds flow from operations per share - basic0.100.13(23%)0.380.47(19%)Free Cash Flow per share – basic (1)0.080.12(33%)0.330.44(25%) (1) Non-IFRS financial measures are defined in the "Non-IFRS Financial Measures” section. (2) Included in the number is a reduction of $0.5 million and $0.8 million for the three months and year ended March 31, 2025, respectively ($0.1 million and $0.2 million for the three months and year ended March 31, 2024, respectively), attributed to the amortization of a deferred revenue fair value reduction recognized on acquisition.
FISCAL 2025 CONSOLIDATED HIGHLIGHTS Select financial highlights Total revenue increased by 19% (1% Organic decline and 20% growth from acquisitions) to $129.4 million;Recurring revenue increased by 13% (1% Organic growth and 12% was growth from acquisitions) to $86.8 million;Adjusted EBITDA increased by 2% to $44.0 million;Adjusted EBITDA Margin was 34%, compared to 40% in the comparative period;Earnings per share was $0.27, a 16% decrease;Free Cash Flow decreased by 22% to $27.6 million; Free Cash flow per share decreased to $0.33 from $0.44.(1) Organic growth/decline, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are not standardized financial measures and might not be comparable to measures disclosed by other issuers.
