Constellation Software Announces 4th Quarter 2015

Constellation Software Announces 4th Quarter 2015, updated 3/3/16, 8:45 PM

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Constellation Software is a leading provider of software and services to a select group of public and private sector markets. We acquire, manage and build industry specific software businesses which provide specialized, mission-critical software solutions that address the particular needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With over 85,000 customers in over 100 countries and a proven track record of solid growth, we're establishing a broad portfolio of software businesses to provide our customers and shareholders with exceptional returns.

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Founded Accusoft (Pegasus Imaging) in 1991 and has been CEO ever since.

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1
Constellation Software Inc. Announces Results for the Fourth Quarter and
Year Ended December 31, 2015 and Declares Quarterly Dividend

TORONTO, ONTARIO (February 17, 2016) -- Constellation Software Inc. (TSX:CSU) (“Constellation” or the
“Company”) today announced its financial results for the fourth quarter and year ended December 31, 2015 and
declared a $1.00 per share dividend payable on April 5, 2016 to all common shareholders of record at close of
business on March 18, 2016. This dividend has been designated as an eligible dividend for the purposes of the
Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars
unless otherwise stated.

The following press release should be read in conjunction with the Company’s annual Consolidated Financial
Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual
Management’s Discussion and Analysis for the year ended December 31, 2015, 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.

Q4 2015 Headlines:
 Revenue grew 16% (negative 1% organic growth) to $512 million compared to $440 million in Q4 2014.
Changes in foreign exchange rates resulted in an approximate 5% reduction in organic growth.
 Adjusted EBITA increased $29 million or 28% to $133 million as compared to $104 million in Q4 2014.
 Adjusted EBITA margin increased 2% from 24% in Q4 2014 to 26% in Q4 2015. Changes in foreign
exchange rates resulted in less than a 1% reduction in Adjusted EBITA margin.
 Adjusted net income increased 36% to $118 million ($5.55 on a diluted per share basis) from $87 million
($4.09 on a diluted per share basis) in Q4 2014.
 Net income increased 68% to $66 million ($3.11 on a diluted per share basis) from $39 million ($1.86 on
a diluted per share basis) in Q4 2014.
 Nine acquisitions were completed for aggregate cash consideration of $25 million (which includes acquired
cash). Deferred payments associated with these acquisitions have an estimated value of $7 million.
 Cash flows from operations were $114 million, an increase of 18%, or $17 million, compared to $97 million
in Q4 2014.

2015 Headlines:
 Revenue grew 10% (negative 3% organic growth) to $1,838 million compared to $1,669 million in 2014.
Changes in foreign exchange rates resulted in an approximate 6% reduction in organic growth.
 Adjusted EBITA increased $98 million or 28% to $446 million as compared to $348 million in 2014.
 Adjusted EBITA margin increased 3% from 21% in 2014 to 24% in 2015. Changes in foreign exchange
rates resulted in less than a 1% reduction in Adjusted EBITA margin.
 Adjusted net income increased 35% to $371 million ($17.51 on a diluted per share basis) from $274 million
($12.94 on a diluted per share basis) in 2014.
 Net income increased 72% to $177 million ($8.36 on a diluted per share basis) from $103 million ($4.87
on a diluted per share basis) in 2014.
 Thirty-one acquisitions were completed for aggregate cash consideration of $223 million (which includes
acquired cash). Deferred payments associated with these acquisitions have an estimated value of $25
million.
 Cash flows from operations were $396 million, an increase of 16%, or $55 million, compared to $341
million in 2014.

Fourth quarter 2015 revenue was $512 million, an increase of 16%, or $72 million, compared to $440 million for
the comparable period in 2014. For the 2015 fiscal year total revenues were $1,838 million, an increase of 10%, or
$169 million, compared to $1,669 million for the comparable period in 2014. The increase for both the three and
twelve month periods compared to the same periods in the prior year is attributable to growth from acquisitions as
the Company experienced negative organic growth of 1% and 3% respectively. For the three and twelve months
ended December 31, 2015, the appreciation of the US dollar against most other major currencies in which the

2
Company transacts business resulted in an approximate 5% and 6% respective reduction in the Company’s organic
growth rate compared to the comparable periods of 2014. The negative impact of foreign exchange on the
Company’s Q4 organic growth rate was partially offset by an increase in hardware sales recorded in our public
sector relating to various large projects in our transit vertical. Hardware revenue is primarily recognized on delivery
and as such can result in temporary spikes in revenue. Organic growth in Q4 was positive 1% after adjusting for
both factors.

Adjusted EBITA for the fourth quarter of 2015 was $133 million, a 28% increase compared to the prior year’s
fourth quarter Adjusted EBITA of $104 million. Fourth quarter 2015 Adjusted EBITA per share on a diluted basis
increased 28% to $6.27, compared to $4.90 for the same period in the prior year. Adjusted EBITA for the 2015
fiscal year was $446 million, a 28% increase over the 2014 fiscal year Adjusted EBITA of $348 million. Adjusted
EBITA per share on a diluted basis for the 2015 fiscal year increased 28% to $21.02, compared to $16.43 for the
2014 fiscal year.

Adjusted net income for the fourth quarter of 2015 was $118 million, compared to the prior year’s fourth quarter
Adjusted net income of $87 million, a 36% increase. Fourth quarter 2015 Adjusted net income per share on a diluted
basis increased 36% to $5.55 compared to $4.09 for the prior year’s fourth quarter. Adjusted net income for the
2015 fiscal year was $371 million, an increase of 35% over the 2014 fiscal year Adjusted net income of $274
million. Adjusted net income per share on a diluted basis for the 2015 fiscal year increased 35% to $17.51,
compared to $12.94 for the 2014 fiscal year.

Net income for the fourth quarter 2015 was $66 million compared to the prior year’s fourth quarter net income of
$39 million. Net income per share on a diluted per share basis for the fourth quarter of 2015 increased 68% to
$3.11, compared to $1.86 for the same period of 2014. Net income for the 2015 fiscal year was $177 million, an
increase of 72% over net income of $103 million for the 2014 fiscal year. Net income per share on a diluted basis
for the 2015 fiscal year increased 72% to $8.36, compared to $4.87 for the 2014 fiscal year.

Cash flows from operations for the fourth quarter of 2015 were $114 million, an increase of 18%, or $17 million,
compared to $97 million for the comparable period in 2014. For the 2015 fiscal year cash flows from operations
were $396 million, an increase of 16%, or $55 million, compared to $341 million for the 2014 fiscal year.

The following table displays our revenue by reportable segment and the percentage change for the quarter and year
ended December 31, 2015 compared to the same periods in 2014:
 

2015
2014
$
%
2015
2014
$
%
Public Sector
Licenses
22.0

22.1

(0.1)

-1%
85.8

77.5

8.3

11%
Professional services
83.1

87.4

(4.3)

-5%
310.6

327.0

(16.4)

-5%
Hardware and other
46.4

30.5

15.9

52%
126.3

116.3

10.0

9%
Maintenance and other recurring
196.6

165.3

31.3

19%
740.8

650.7

90.1

14%
348.1

305.3

42.8

14%
1,263.6

1,171.6

92.0

8%
Private Sector
Licenses
12.4

11.5

0.8

7%
45.2

41.3

3.8

9%
Professional services
20.4

18.0

2.3

13%
74.0

69.1

4.8

7%
Hardware and other
6.9

7.1

(0.1)

-2%
26.6

23.0

3.6

15%
Maintenance and other recurring
123.8

97.8

26.0

27%
429.0

364.3

64.7

18%
163.5

134.5

29.0

22%
574.7

497.7

76.9

15%
Three months ended
December 31,
Period-Over-
Period Change
Fiscal year ended
December 31,
Period-Over-
Period Change
($M, except percentages)
($M, except percentages)

3

Public Sector
For the quarter ended December 31, 2015, total revenue in the public sector reportable segment increased by 14%,
or $43 million to $348 million, compared to $305 million for the quarter ended December 31, 2014. For the fiscal
year ended December 31, 2015, total revenue increased by 8%, or $92 million to $1,264 million, compared to
$1,172 million for the comparable period in 2014. Total revenue growth from acquired businesses contributed
approximately $44 million to our Q4 2015 revenues and $134 million to our fiscal year ended December 31, 2015
revenues compared to the same periods in 2015, as we completed 27 acquisitions since the beginning of 2014.
Organic revenue growth was 0% in Q4 2015 and negative 3% for the year ended December 31, 2015 compared to
the same periods in 2014. For the three and twelve months ended December 31, 2015 the appreciation of the US
dollar against most other major currencies in which the Company transacts business resulted in approximate 5%
and 6% respective reductions in the public sector revenue organic growth rates compared to the comparable periods
of 2014. The negative impact of foreign exchange on the public sector Q4 organic growth rate was offset by an
increase in hardware sales relating to various large projects in our transit vertical. Hardware revenue is primarily
recognized on delivery and as such can result in temporary spikes in revenue. Organic growth for the public sector
in Q4 was 0% after adjusting for both factors.
Private Sector
For the quarter ended December 31, 2015, total revenue in the private sector reportable segment increased 22%, or
$29 million to $164 million, compared to $135 million for the quarter ended December 31, 2014. For the fiscal year
ended December 31, 2015, total revenue increased by 15%, or $77 million to $575 million, compared to $498
million for the comparable period in 2014. Total revenue growth from acquired businesses contributed
approximately $32 million to our Q4 2015 revenues and $88 million to our fiscal year ended December 31, 2015
revenues compared to the same periods in 2014, as we completed 27 acquisitions since the beginning of 2014.
Organic revenue growth was negative 2% for both the three and twelve months ended December 31, 2015 compared
to the same periods in 2014. For the three and twelve months ended December 31, 2015, the appreciation of the
US dollar against most other major currencies in which the Company transacts business resulted in approximate
4% and 5% respective reductions in the private sector revenue organic growth rates compared to the comparable
periods of 2014.

Conference Call and Webcast
Management will host a conference call at 8:00 a.m. (ET) on Friday, February 19, 2016 to answer questions
regarding the results. The teleconference numbers are 416-340-8530 or 800-952-4972. The call will also be
webcast live and archived on Constellation’s website at www.csisoftware.com.

A replay of the conference call will be available as of 12:30 a.m. ET the same day until 11:59 p.m. ET on March 4,
2016. To access the replay, please dial 905-694-9451 or 800-408-3053 followed by the passcode 7911261.

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.


4


Non-IFRS Measures

The term ‘‘Adjusted EBITA’’ refers to net income before adjusting for finance and other income, bargain
purchase gain, finance costs, income taxes, share in net income or loss of equity investees, impairment of non-
financial assets, amortization, TSS membership liability revaluation charge, and foreign exchange gain or loss. The
Company believes that Adjusted EBITA 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 intangible asset amortization and the other items
listed above. ‘‘Adjusted EBITA margin’’ refers to the percentage that Adjusted EBITA for any period represents
as a portion of total revenue for that period. Previously the Company has reported “Adjusted EBITDA” in certain
financial disclosures, but has determined that Adjusted EBITA is a more meaningful measure going forward.
Adjusted EBITDA refers to Adjusted EBITA as defined above then further excludes depreciation. The Company
uses depreciation as a proxy for the cash flows used to purchase property and equipment required to support the
Company’s main business activities. As such, the Company believes Adjusted EBITA is a more useful measure
then Adjusted EBITDA.
‘‘Adjusted net income’’ means net income adjusted for non-cash expenses (income) such as amortization
of intangible assets, deferred income taxes, the TSS membership liability revaluation charge, and certain other
expenses (income), and excludes the portion of the adjusted net income of Total Specific Solutions (TSS) B.V.
(“TSS”) attributable to the minority owners of TSS. 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, deferred income taxes, the TSS
membership liability revaluation charge, and certain other non-cash expenses (income) incurred or recognized by
the Company from time to time, and adjusts for the portion of TSS’ Adjusted net income not attributable to
shareholders of Constellation. ‘‘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 EBITA and Adjusted net income are not recognized measures under IFRS and, accordingly,
readers are cautioned that Adjusted EBITA and Adjusted net income should not be construed as alternatives to net
income determined in accordance with IFRS. The Company’s method of calculating Adjusted EBITA and Adjusted
net income may differ from other issuers and, accordingly, Adjusted EBITA and Adjusted net income may not be
comparable to similar measures presented by other issuers. Adjusted EBITA includes 100% of the Adjusted EBITA
of TSS.

5
The following table reconciles Adjusted EBITA to net income:




The following table reconciles Adjusted net income to net income:





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.
2015
2014
2015
2014
Total revenue
511.6

439.8

1,838.3

1,669.3

Net income
66.0

39.3

177.2

103.1

Adjusted for:
Income tax expense (recovery)
15.8

17.6

67.1

51.8

Foreign exchange (gain) loss
(7.3)

1.8

(15.7)

10.5

TSS membership liability revaluation charge
7.1

-

22.2

-

Share in net (income) loss of equity investees
(0.2)

(0.1)

(1.1)

(0.8)

Finance and other income
(1.5)

(1.4)

(4.8)

(4.1)

Bargain purchase gain
-

(2.2)

-

(2.2)

Finance costs
5.1

5.8

20.1

16.7

Amortization of intangible assets
47.9

43.2

180.5

173.2

Adjusted EBITA
132.8

103.9

445.5

348.1

Adjusted EBITA margin
26%
24%
24%
21%
Three months ended
December 31,
Fiscal year ended
December 31,
($M, except percentages)
($M, except percentages)
2015
2014
2015
2014
Total revenue
511.6

439.8

1,838.3

1,669.3

Net income
66.0

39.3

177.2

103.1

Adjusted for:
Amortization of intangible assets
47.9

43.2

180.5

173.2

TSS membership liability revaluation charge
7.1

-

22.2

-

Bargain purchase gain
-

(2.2)

-

(2.2)

Less non-controlling interest in the Adjusted
net income of TSS
(3.1)

-

(12.6)

-

Deferred income tax expense (recovery)
(0.1)

6.3

3.6

0.2

Adjusted net income
117.7

86.6

371.0

274.3

Adjusted net income margin
23%
20%
20%
16%
($M, except percentages)
($M, except percentages)
Three months ended
December 31,
Fiscal year ended
December 31,

6


For further information:

Jamal Baksh
Chief Financial Officer
(416) 861-9677
info@csisoftware.com
www.csisoftware.com

SOURCE: CONSTELLATION SOFTWARE INC.





7

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)
December 31,
2015
December 31,
2014
Assets
Current assets:
Cash
178,471
$          
70,679
$            
Accounts receivable
226,771
            
200,056
            
Work in progress
59,483
               
51,483
              
Inventories
24,332
               
25,246
              
Other assets
67,246
               
63,294
              
556,303
            
410,758
            
Non-current assets:
Property and equipment
42,072
               
37,227
              
Deferred income taxes
56,650
               
60,763
              
Other assets
32,186
               
36,942
              
Intangible assets
952,109
            
887,435
            
1,083,017
         
1,022,367
        
Total assets
1,639,320
$      
1,433,125
$      
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness

$                   
63,894
$            
CNH Facility
8,725
                 
2,432
                 
TSS membership liability
19,602
               
17,345
              
Accounts payable and accrued liabilities
274,981
            
244,996
            
Dividends payable
21,326
               
21,192
              
Deferred revenue
421,027
            
347,336
            
Provisions
8,420
                 
13,399
              
Acquisition holdback payments
9,116
                 
22,665
              
Income taxes payable
6,561
                 
25,588
              
769,758
            
758,847
            
Non-current liabilities:
CNH Facility
126,407
            
149,654
            
TSS membership liability
34,482
               
30,515
              
Debentures
220,043
            
78,642
              
Deferred income taxes
109,795
            
107,275
            
Acquisition holdback payments
6,987
                 
3,603
                 
Other liabilities
34,566
               
44,758
              
532,280
            
414,447
            
Total liabilities
1,302,038
         
1,173,294
        
Shareholders' equity:
Capital stock
99,283
               
99,283
              
Accumulated other comprehensive income (loss)
(34,319)
             
(19,290)
             
Retained earnings
272,318
            
179,838
            
337,282
            
259,831
            
Total liabilities and shareholders' equity
1,639,320
$      
1,433,125
$      

8
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Income
(In thousands of U.S. dollars, except per share amounts)
2015
2014
Revenue
License
131,022
$
118,868
$
Professional services
384,583

396,128

Hardware and other
152,909

139,340

Maintenance and other recurring
1,169,795

1,015,008

1,838,309

1,669,344

Expenses
Staff
912,416

881,587

Hardware
90,308

79,532

Third party license, maintenance and professional services
163,684

152,191

Occupancy
43,218

41,043

Travel
54,643

50,144

Telecommunications
17,909

16,356

Supplies
10,951

9,849

Software and equipment
30,954

26,978

Professional fees
22,619

22,844

Other, net
29,042

24,278

Depreciation
17,028

16,462

Amortization of intangible assets
180,469

173,186

1,573,241

1,494,450

Foreign exchange loss (gain)
(15,743)

10,528

TSS membership liability revaluation charge
22,244

-

Share in net (income) loss of equity investee
(1,070)

(830)

Finance and other income
(4,772)

(4,109)

Bargain purchase gain
-

(2,246)

Finance costs
20,110

16,680

20,769

20,023

Income before income taxes
244,299

154,871

Current income tax expense (recovery)
63,450

51,542

Deferred income tax expense (recovery)
3,601

231

Income tax expense (recovery)
67,051

51,773

Net income
177,248

103,098

Earnings per share
Basic and diluted
8.36
$
4.87
$
Years ended December 31,

9
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts)
2015
2014
Net income
177,248
$
103,098
$
Items that are or may be reclassified subsequently to net income:
Net change in fair value
of available-for-sale financial
asset during the period
-

93

Net change in fair value
of derivatives designated as hedges
during the period
(423)

(546)

Amounts reclassified to profit during the period
related to realized gains on
available-for-sale financial asset
-

(574)

Foreign currency translation differences from foreign operations
(14,734)

(18,871)

Current income tax recovery (expense)
-

35

Deferred income tax recovery (expense)
128

124

Other comprehensive (loss) income for the period, net of income tax
(15,029)

(19,739)

Total comprehensive income for the period
162,219
$
83,359
$
Years ended December 31,

10
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
Year ended December 31, 2015
Capital
stock
Total accumulated
other comprehensive
income/(loss)
Retained
earnings
Total
Cumulative
translation
account
Amounts
related to
gains/(losses)
on derivatives
designed as
hedges
Amounts
related to
gains/losses
on available-
for-sale
financial
assets
Balance at January 1, 2015
$ 99,283
$ (18,880)
$ (410)
-
$
$ (19,290)
$ 179,838
$ 259,831
Total comprehensive income for the period
Net income
-

-

-

-

-

177,248

177,248

Other comprehensive income (loss)
Net change in fair value
of available-for-sale financial
asset during the period
-

-

-

-

-

-

-

Net change in fair value
of derivatives designated as hedges
during the period
-

-

(423)

-

(423)

-

(423)

Amounts reclassified to profit during the period
related to realized gains on
available-for-sale financial assets
-

-

-

-

-

-

-

Foreign currency translation differences from
foreign operations
-

(14,734)

-

-

(14,734)

-

(14,734)

Current tax recovery (expense)
-

-

-

-

-

-

-

Deferred tax recovery (expense)
-

-

128

-

128

-

128

Total other comprehensive income (loss)
for the period
-

(14,734)

(295)

-

(15,029)

-

(15,029)

Total comprehensive income (loss) for the period
-

(14,734)

(295)

-

(15,029)

177,248

162,219

Transactions with owners, recorded directly in equity
Dividends to shareholders of the Company
-

-

-

-

-

(84,768)

(84,768)

Balance at December 31, 2015
$ 99,283
$ (33,614)
$ (705)
-
$
$ (34,319)
$ 272,318
$ 337,282
Accumulated other comprehensive
income/(loss)

11
CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)
Year ended December 31, 2014
Capital
stock
Total accumulated
other comprehensive
income/(loss)
Retained
earnings
Total
Cumulative
translation
account
Amounts
related to
gains/(losses)
on derivatives
designed as
hedges
Amounts
related to
gains/losses
on available-
for-sale
financial
assets
Balance at January 1, 2014
$ 99,283
$ (32)
-
$
$ 481
$ 449
$ 166,267
$ 265,999
Total comprehensive income for the period
Net income
-

-

-

-

-

103,098

103,098

Other comprehensive income (loss)
Net change in fair value
of available-for-sale financial
assets during the period
-

-

-

93

93

-

93

Net change in fair value
of derivatives designated as hedges
during the year
-

-

(546)

-

(546)

(546)

Amounts reclassified to profit during the period
related to realized gains on
available-for-sale financial assets
-

-

-

(574)

(574)

-

(574)

Foreign currency translation differences from
foreign operations
-

(18,871)

-

-

(18,871)

-

(18,871)

Current tax recovery (expense)
-

35

-

-

35

-

35

Deferred tax recovery (expense)
-

(12)

136

124

-

124

Total other comprehensive income for the period
-

(18,848)

(410)

(481)

(19,739)

-

(19,739)

Total comprehensive income for the period
-

(18,848)

(410)

(481)

(19,739)

103,098

83,359

Transactions with owners, recorded directly in equity
Dividends to shareholders of the Company
-

-

-

-

-

(84,768)

(84,768)

Fair value of rights offered to shareholders of the Company
(4,759)

(4,759)

Balance at December 31, 2014
$ 99,283
$ (18,880)
$ (410)
-
$
$ (19,290)
$ 179,838
$ 259,831
Accumulated other comprehensive
income/(loss)

12

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)
2015
2014
Cash flows from operating activities:
Net income
177,248
$
103,098
$
Adjustments for:
Depreciation
17,028

16,462

Amortization of intangible assets
180,469

173,186

TSS membership liability revaluation charge
22,244

-

Share in net (income) loss of equity investee
(1,070)

(830)

Finance and other income
(4,772)

(4,109)

Finance costs
20,110

16,680

Bargain purchase gain
-

(2,246)

Income tax expense (recovery)
67,051

51,773

Foreign exchange loss (gain)
(15,743)

10,528

Change in non-cash operating working capital
exclusive of effects of business combinations
3,080

(1,713)

Income taxes paid
(69,701)

(21,367)

Net cash flows from operating activities
395,944

341,462

Cash flows from (used in) financing activities:
Interest paid
(17,533)

(12,877)

Increase (decrease) in revolving credit facility, net
(64,500)

(84,700)

Proceeds from issuance of CNH facility
-

177,000

Repayments of CNH facility and TSS Acquisition Facility
(2,199)

(325,813)

Credit facility transaction costs
-

(7,166)

Proceeds from issuance of debentures
159,709

81,233

Proceeds from issuance of TSS Membership Liability
-

48,503

Distribution to TSS minority owners
(10,879)

-

Dividends paid
(84,768)

(84,768)

Net cash flows from (used in) in financing activities
(20,170)

(208,588)

Cash flows from (used in) investing activities:
Acquisition of businesses, net of cash
acquired
(210,299)

(98,688)

Post-acquisition settlement payments, net of receipts
(38,473)

(22,952)

Proceeds from sale of available-for-sale equity securities
-

873

Interest and dividends received
570

788

Proceeds from sale of assets
-

153

Property and equipment purchased
(12,894)

(13,868)

Net cash flows from (used in) investing activities
(261,096)

(133,694)

Effect of foreign currency on
cash and cash equivalents
(6,886)

(6,468)

Increase (decrease) in cash and cash equivalents
107,792

(7,288)

Cash, beginning of period
70,679

77,967

Cash, end of period
178,471
$
70,679
$
Year ended December 31,