Computer Modelling Group Announces Third Quarter Results

CALGARY, Alberta, Feb. 07, 2024 (GLOBE NEWSWIRE) — Computer Modelling Group Ltd. (“CMG Group” or the “Company”) announces its financial results for the three and nine months ended December 31, 2023.

CMG Group and its subsidiaries include the following; Computer Modelling Group Inc., CMG Middle East FZ LLC, CMGL Services Corporation Inc., CMG Europe Ltd., and CMG Collaboration Centre India Private Ltd., (together referred to as “CMG”), and CMG Holdings (USA) Inc., Bluware-Headwave Ventures Inc., Bluware Inc., Hue AS, and Kalkulo AS (together referred to as “BHV” or “Bluware”).

As a result of CMG Group’s acquisition of BHV on September 25, 2023, the Company’s operations are now organized into two reportable operating segments represented by CMG; the development and licensing of reservoir simulation software, and BHV; the development and licensing of seismic interpretation software.

THIRD QUARTER FISCAL 2024 (“Q3 2024”) OVERVIEW

CMG GROUP KEY FINANCIAL METRICS

For the Three Months Ended	For the Nine Months Ended
December 31, 2023 and compared to the same period of the previous fiscal year, when appropriate:
Annuity/maintenance license revenue increased by 21%;	Annuity/maintenance license revenue increased by 18%;
Annuity license fees have increased by 100% or $3.8 million as a result of a full quarter of BHV operations;	Annuity license fees have increased by 100% or $4.0 million as a result of a full quarter of BHV operations;
Total revenue increased by 70%;	Total revenue increased by 43%;
Total operating expenses increased by 99%. Adjusted for acquisition related expenses in the current quarter and restructuring charges in the prior year’s third quarter, operating expenses increased by 92%, primarily due to a combination of higher stock-based compensation expense, direct employee costs, professional service costs and office-related costs;	Total operating expenses increased by 35%. Adjusted for acquisition related expenses in the current year and restructuring charges in the prior year, operating expenses increased by 51% from the comparative period in the prior year, primarily due to a combination of higher stock-based compensation expenses, direct employee costs, professional services, travel-related and office-related costs;
Quarterly adjusted EBITDA as a % of total revenue was 38%, decreasing from 49% in the comparative quarter with, CMG achieving 44% and BHV achieving 27% in the current quarter;	Year-to-date adjusted EBITDA as a % of total revenue was 44%, decreasing from 46% in the comparative period, with CMG achieving 47% and BHV achieving 27% in the current quarter;
Basic EPS of $0.07, down $0.01 per share from the comparative quarter in the prior fiscal year;	Basic EPS of $0.24, up $0.06 per share from the comparative period in the prior fiscal year;
Achieved free cash flow per share of $0.09.	Achieved free cash flow per share of $0.32.

THIRD QUARTER BUSINESS HIGHLIGHTS

• Our third quarter results represent the first full quarter of operations following the acquisition of BHV, which contributed $11.2 million to total revenue and $1.7 million to net income:
• Generated total revenue of $33.0 million in the third quarter of fiscal 2024 compared to $19.4 million in the prior year’s quarter, an increase of 70% with 58% contributed by BHV and 12% by CMG. Geographically, all regions saw increases in annuity/maintenance revenue due to new customers and increased licensing by existing customers. Our existing customers continue to grow their product offerings on contract renewals. Annuity license fee revenue increased due to the acquisition of BHV and was impacted by contract renewals;
• Adjusted EBITDA was 38%, compared to 49% in the same period of last fiscal year with BHV achieving 27% and CMG achieving 44% adjusted EBITDA;
• Recognition of annuity license fee from BHV had a positive impact on total revenue and adjusted EBITDA (see under “Quarterly Performance” heading for further description);
• Reported free cash flow of $7.7 million, representing $0.09 per share;
• Subsequent to quarter-end, declared a quarterly cash dividend of $0.05 per share to be paid on March 15, 2024 to all shareholders on record at the close of business on March 7, 2024.

The following press release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three and nine months ended December 31, 2023 and the accompanying notes, our Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended December 31, 2023 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and with our MD&A for the year ended March 31, 2023 which can be found on SEDAR at www.sedarplus.ca and on the Company’s website www.cmgl.ca. Additional information about the Company is also available on SEDAR at www.sedarplus.ca.

QUARTERLY PERFORMANCE

	Fiscal 2022(2)	Fiscal 2023(3)				Fiscal 2024(4)
($ thousands, unless otherwise stated)	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
Annuity/maintenance license	14,306	13,529	14,825	15,533	15,803	15,607	17,610	18,814
Annuity license fee	–	–	–	–	–	–	–	3,846
Perpetual license	2,351	386	780	518	1,556	1,849	1,176	584
Total software license revenue	16,657	13,915	15,605	16,051	17,359	17,456	18,786	23,244
Professional services revenue	2,137	2,192	2,477	3,341	2,906	3,292	3,847	9,763
Total revenue	18,794	16,107	18,082	19,392	20,265	20,748	22,633	33,007
Operating expenses	11,482	9,382	10,870	9,262	13,356	9,079	12,414	18,434
Adjusted operating expenses(1)	12,398	7,780	8,529	9,262	13,356	9,079	11,841	17,738
Operating profit	7,312	4,961	5,555	8,435	6,909	9,764	7,726	8,217
Operating profit (%)	39	31	31	43	34	47	34	25
Adjusted operating profit(1)	6,396	6,563	7,896	8,435	6,909	9,764	8,299	8,913
Adjusted operating profit (%)	34	41	44	43	34	47	37	27
Profit before income and other taxes	6,563	5,182	5,989	8,350	7,127	9,148	8,793	8,117
Income and other taxes	1,611	1,369	1,579	2,002	1,901	2,244	2,277	2,507
Net income for the period	4,952	3,813	4,410	6,348	5,226	6,904	6,516	5,610
Adjusted EBITDA(1)	7,879	6,775	8,435	9,498	8,520	9,948	10,718	12,634
Cash dividends declared and paid	4,016	4,017	4,025	4,025	4,032	4,039	4,043	4,059
Funds flow from operations	7,105	4,558	4,974	8,169	7,656	7,920	11,491	8,477
Free cash flow(1)	6,584	4,255	4,505	7,545	5,396	7,463	11,028	7,654
Per share amounts – ($/share)
Earnings per share (EPS) – basic	0.06	0.05	0.05	0.08	0.07	0.09	0.08	0.07
Earnings per share (EPS) – diluted	0.06	0.05	0.05	0.08	0.06	0.08	0.08	0.07
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	0.09	0.06	0.06	0.10	0.09	0.10	0.14	0.10
Free cash flow per share – basic(1)	0.08	0.05	0.06	0.09	0.07	0.09	0.14	0.09

(1)	This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section.
(2)	Q4 of fiscal 2022 includes $0.8 million of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(3)	Q1, Q2, Q3, and Q4 of fiscal 2023 include $0.2 million, $0.3 million, $0.3 million, and $0.4 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.
(4)	Q1, Q2, and Q3 of fiscal 2024 include $0.1 million, $0.4 million, and $0.2 million, respectively, of annuity/maintenance revenue that pertains to usage of CMG’s products in prior quarters.

Total software license revenue for the three months ended December 31, 2023 increased by 45%, compared to the same period of the previous fiscal year, of which 31% is due to BHV acquisition and 14% due to increases in annuity/maintenance and perpetual license revenue of CMG. Total software license revenue for the nine months ended December 31, 2023 increased by 31%, compared to the same period of the previous fiscal year, of which 11% is due to BHV acquisition and 19% due to increases in annuity/maintenance and perpetual license revenue of CMG.

Annuity/maintenance license revenue increased by 21% during the three months ended December 31, 2023, compared to the same period of the previous fiscal year, of which 8% is due to BHV acquisition and 13% due to annuity/ maintenance license revenue increase of CMG. Annuity/maintenance license revenue increased by 18% during the nine months ended December 31, 2023, compared to the same period in the previous fiscal year, of which 3% is due to BHV acquisition and 15% due to increases in annuity/ maintenance license revenue of CMG. CMG’s annuity/maintenance license revenue increases during both three and nine months ended December 31, 2023 were a result of increases in all regions, supported by license fee increases, increased the license usage by existing customers and addition of new customers. We continue to see a strong contribution to revenue from CMG energy transition customers and estimate during the three and nine months ended December 31, 2023, 22% of total software license revenue is related to energy transition.

Annuity license fee revenue relates to BHV and this revenue stream is expected to fluctuate quarterly depending on the timing of contract renewals as the annuity license fees are recognized in revenue when the software license is delivered. Historically, a majority of contracts renew during the third and fourth quarters.

Perpetual license revenue increased by 13% during the three months ended December 31, 2023, compared to the same period of the previous fiscal year, due to perpetual license sales generated in Canada during the quarter. During the nine months ended December 31, 2023, compared to the same period of the previous fiscal year, perpetual license revenue increased by 114% due to increases in all regions.

Professional services revenue for the three and nine months ended December 31, 2023 was $9.8 million and $16.9 million which represents increases of 192% and 111%, respectively, compared to the same periods of the previous fiscal year. The acquisition of BHV contributed 185% and 82% of the increase, respectively, for the three and nine months ended December 31, 2023.The remaining increases are due to increased CMG professional services revenue from consulting projects as a result of expanded services to address customer demand.

Total operating expenses for the three and nine months ended December 31, 2023, increased by 99% and 35%, respectively, compared to the same periods of the previous fiscal year. Adjusted total operating expenses increased by 92% and 51% for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year. The acquisition of BHV contributed to 46% and 17% of the increase in total adjusted operating costs for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year. CMG’s total adjusted operating expenses increased by 46% and 34% for the three and nine months ended December 31, 2023, respectively, compared to the same periods of the previous fiscal year, due to an increase in both direct employee costs and other corporate costs.

Operating profit as a percentage of total revenue for the three months ended December 31, 2023 was 25%, down from 43% in the comparative quarter. Adjusted operating profit was 27%, down from 43% in the comparative quarter. Current quarter includes BHV’s adjusted operating profit as a percentage of revenue at 26% and CMG’s adjusted operating profit as a percentage of revenue at 28%. CMG’s adjusted operating profit as a percentage of revenue decreased from 43% recorded in the same quarter of the previous fiscal year, due to an increase in direct employee costs driven by the increase in stock-based compensation, other corporate costs inclusive of the increase in amortization expense as a result of BHV acquisition, partially offset by an increase in revenue. Operating profit as a percentage of total revenue for the nine months ended December 31, 2023 was 34%, slightly down from 35% in the comparative quarter. Adjusted operating profit was 35%, down from 43% in the comparative quarter. Current year-to-date quarter includes BHV’s adjusted operating profit as a percentage of revenue at 26% and CMG’s adjusted operating profit as a percentage of revenue at 37%. CMG’s adjusted operating profit as a percentage of revenue decreased from 43% recorded in the same period of the previous fiscal year, due to the same reasons that affected the quarterly comparison as explained above.

NON-IFRS FINANCIAL MEASURES AND RECONCILIATION OF NON-IFRS MEASURES

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.

Certain financial measures – namely, Adjusted EBITDA, free cash flow, adjusted total operating expenses, direct employee costs, adjusted direct employee costs, other corporate costs, adjusted other corporate costs, adjusted operating profit, and adjusted net income – do not have a standard meaning prescribed by IFRS and, accordingly, may not be comparable to measures used by other companies. Management believes that these indicators nevertheless provide useful measures in evaluating the Company’s performance. 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 2022		Fiscal 2023								Fiscal 2024
($ thousands, unless otherwise stated)	Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3
Funds flow from operations	7,105		4,558		4,974		8,169		7,656		7,920		11,491		8,477
Capital expenditures	(62	)	–		(130	)	(211	)	(1,707	)	(45	)	(51	)	(459	)
Repayment of lease liabilities	(459	)	(303	)	(339	)	(413	)	(553	)	(412	)	(412	)	(364	)
Free cash flow	6,584		4,255		4,505		7,545		5,396		7,463		11,028		7,654
Weighted average shares – basic (thousands)	80,335		80,335		80,412		80,511		80,603		80,685		80,834		81,067
Free cash flow per share – basic	0.08		0.05		0.06		0.09		0.07		0.09		0.14		0.09

Adjusted EBITDA and Adjusted EBITDA as a % of Total Revenue

	Three months ended December 31								Nine months ended December 31
	2023		2022		$ change		% change		2023		2022		$ change		% change
($ thousands, except per share data)
Net income	5,610		6,348		(738	)	(12	%)	19,030		14,571		4,459		31	%
Add (deduct):
Depreciation and amortization	1,555		864		691		80	%	3,537		2,732		805		29	%
Stock-based compensation	2,974		1,094		1,880		172	%	5,370		1,596		3,774		236	%
Acquisition related expenses	696		–		696		100	%	1,269		–		1,269		100	%
Restructuring charges	–		–		–		0	%	–		3,943		(3,943	)	(100	%)
Income and other tax expense	2,507		2,002		505		25	%	7,028		4,950		2,078		42	%
Interest income	(986	)	(548	)	(438	)	80	%	(2,438	)	(1,105	)	(1,333	)	121	%
Foreign exchange loss (gain)	642		151		491		325	%	693		(923	)	1,616		(175	%)
Repayment of lease liabilities	(364	)	(413	)	49		(12	%)	(1,188	)	(1,055	)	(133	)	13	%
Adjusted EBITDA	12,634		9,498		3,136		33	%	33,301		24,709		8,592		35	%
Adjusted EBITDA as a % of total revenue	38	%	49	%					44	%	46	%

OPERATIONS BY REPORTABLE SEGMENT AND ANALYSIS

CMG		Three months ended December 31								Nine months ended December 31
		2023		2022		$ change		% change		2023		2022		$ change		% change
($ thousands)
Software license revenue		18,209		16,051		2,158		13	%	54,282		45,571		8,711		19	%
Professional service revenue		3,594		3,341		253		7	%	10,338		8,010		2,238		29	%
Total revenue		21,803		19,392		2,411		12	%	64,620		53,581		11,039		21	%
Cost of revenues		2,288		1,695		593		35	%	6,464		5,116		1,348		26	%
Operating expenses		13,606		9,262		4,344		47	%	34,912		29,514		5,398		18	%
Operating profit		5,909		8,435		(2,526	)	(30	%)	23,244		18,951		4,293		23	%
Adjusted EBITDA:
Net Income		3,918		6,348		(2,430	)	(38	%)	17,245		14,571		2,674		18	%
Add (deduct):
Depreciation and amortization		1,449		865		584		68	%	3,424		2,732		692		25	%
Stock-based compensation		2,974		1,093		1,881		172	%	5,370		1,596		3,774		236	%
Acquisition related expenses		146		–		146		100	%	719		–		719		100	%
Restructuring charges		–		–		–		–		–		3,943		(3,943	)	(100	%)
Income and other tax expense		1,805		2,002		(197	)	(10	%)	6,288		4,950		1,338		27	%
Interest income		(982	)	(548	)	(434	)	79	%	(2,434	)	(1,105	)	(1,329	)	120	%
Foreign exchange loss (gain)		701		151		550		364	%	752		(923	)	1,675		(181	%)
Repayment of lease liabilities		(428	)	(413	)	(15	)	4	%	(1,248	)	(1,055	)	(193	)	18	%
Adjusted EBITDA		9,583		9,498		85		1	%	30,116		24,709		5,407		22	%
Adjusted EBITDA as a % CMG total revenue		44	%	49	%					47	%	46	%

CMG experienced increases in revenue for the three and nine months ended December 31, 2023, with increases of $2.4 million or 12% and $11.0 million or 21%, respectively. This consistent growth demonstrates CMG’s ability to capture new customers and grow existing customers’ revenue through increased license contracts and pricing.

Cost of revenues has increased for the three and nine months ended December 31, 2023, by 35% and 26%, respectively, primarily as a result of increased headcount and headcount related costs to support increased professional services revenue growth.

Operating expenses have increased for the three and nine months ended December 31, 2023, by 47% and 18%, respectively, primarily as a result of acquisition-related expenses, and increases in stock-based compensation, headcount and headcount related costs, agent commissions, depreciation and amortization expenses, and other corporate costs.

CMG adjusted EBITDA as a percentage of CMG total revenue is 44% for the three months ended December 31, 2023, compared to 49% in the prior year comparative quarter, primarily due to an increase in operating expenses as a result of an increase in headcount and headcount related costs and other corporate costs. Adjusted EBITDA as a percentage of total revenue for the nine months ended December 31, 2023, for CMG was 47% which is relatively consistent with the prior year.

BHV		Three months ended December 31							Nine months ended December 31
		2023		2022	$ change		% change		2023		2022	$ change		% change
($ thousands)
Software license revenues		5,035		–	5,035		100	%	5,200		–	5,200		100	%
Professional service revenue		6,169		–	6,169		100	%	6,568		–	6.568		100	%
Total revenue		11,204		–	11,204		100	%	11,768		–	11,768		100	%
Cost of revenues		4,068		–	4,068		100	%	4,290		–	4,290		100	%
Operating expenses		4,828		–	4,828		100	%	5,015		–	5,015		100	%
Operating profit		2,308		–	2,308		100	%	2,463		–	2,463		100	%
Adjusted EBITDA:
Net Income		1,692		–	1,692		100	%	1,785		–	1,785		100	%
Depreciation and amortization		106		–	106		100	%	113		–	113		100	%
Acquisition related expenses		550		–	550		100	%	550		–	550		100	%
Income and other tax expense		702		–	702		100	%	740		–	740		100	%
Interest income		(4	)	–	(4	)	100	%	(4	)	–	(4	)	100	%
Foreign exchange loss (gain)		(59	)	–	(59	)	100	%	(59	)	–	(59	)	100	%
Repayment of lease liabilities		64		–	64		100	%	60		–	60		100	%
Adjusted EBITDA		3,051		–	3,404		100	%	3,184
Adjusted EBITDA as a % of BHV total revenue		27	%	–					27	%	–

BHVs revenue for the three and nine months ended December 31, 2023, is comprised of 55% professional services revenue, which is primarily driven by a contract with one customer. BHVs software license revenue for the three and nine months ended December 31, 2023, was supported by contract renewals.

BHVs cost of revenues consist mainly of headcount and headcount related costs incurred to support professional services revenue.

Operating expenses for BHV are primarily comprised of headcount and headcount related costs, office related costs and professional services costs.

BHV adjusted EBITDA as a percentage of BHV revenue is 27% for both the three and nine months ended December 31, 2023, respectively. The recognition of the annual license fee revenue in connection to third quarter contract renewals had a positive effect on adjusted EBITDA. We expect that adjusted EBITDA will fluctuate on a quarterly basis as a result of annual license fee revenue recognition which is skewed towards the last two quarters of the fiscal year.

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. The Company is headquartered in Calgary, AB, with offices in Houston, Oxford, Dubai, Bogota, Rio de Janeiro, Bengaluru, Oslo, and Kuala Lumpur. For more information, please visit www.cmgl.ca.

QUARTERLY FILINGS AND RELATED QUARTERLY FINANCIAL INFORMATION

Management’s Discussion and Analysis (“MD&A”) and condensed consolidated interim financial statements and the notes thereto for the three and nine-months ended December 31, 2023 can be obtained from our website www.cmgl.ca. The documents will also be available under CMG Group’s SEDAR profile www.sedarplus.ca.

Condensed Consolidated Statements of Financial Position

UNAUDITED (thousands of Canadian $)	December 31, 2023		March 31, 2023
Assets
Current assets:
Cash	45,183		66,850
Restricted cash	158		–
Trade and other receivables	32,090		23,910
Prepaid expenses	1,652		1,060
Prepaid income taxes	2,858		444
	81,941		92,264
Intangible assets	24,347		1,321
Right-of-use assets	30,008		30,733
Property and equipment	10,072		10,366
Goodwill	3,787		–
Deferred tax asset	–		2,444
Total assets	150,155		137,128
Liabilities and shareholders’ equity
Current liabilities:
Trade payables and accrued liabilities	13,329		9,883
Income taxes payable	1,027		33
Acquisition holdback payable	2,283		–
Deferred revenue	27,089		34,797
Lease liabilities	2,738		1,829
	46,466		46,542
Lease liabilities	35,017		36,151
Stock-based compensation liabilities	2,706		1,985
Acquisition earnout	1,470		–
Other long-term liabilities	261		–
Deferred tax liabilities	1,113		–
Total liabilities	87,033		84,678
Shareholders’ equity:
Share capital	85,925		81,820
Contributed surplus	15,596		15,471
Cumulative translation adjustment	(448	)	–
Deficit	(37,951	)	(44,841	)
Total shareholders’ equity	63,122		52,450
Total liabilities and shareholders’ equity	150,155		137,128

Condensed Consolidated Statements of Operations and Comprehensive Income

	Three months ended December 31				Nine months ended December 31
UNAUDITED (thousands of Canadian $ except per share amounts)	2023		2022		2023		2022
Revenue Cost of revenue	33,007 6,356		19,392 1,695		76,388 10,754		53,581 5,116
Gross profit	26,651		17,697		65,634		48,465
Operating expenses
Sales and marketing	4,857		2,480		10,596		6,674
Research and development	7,253		4,096		16,072		13,268
General and administrative	6,324		2,686		13,259		9,572
	18,434		9,262		39,927		29,514
Operating profit	8,217		8,435		25,707		18,951
Finance income	986		548		2,644		2,028
Finance costs	(1,086	)	(633	)	(2,293	)	(1,458	)
Profit before income and other taxes	8,117		8,350		26,058		19,521
Income and other taxes	2,507		2,002		7,028		4,950
Net income for the period	5,610		6,348		19,030		14,571
Other comprehensive income:
Foreign currency translation adjustment	(453	)	–		(449	)	–
Other comprehensive income	(453	)	–		(449	)	–
Total comprehensive income	4,157		6,348		18,581		14,571
Net income per share – basic	0.07		0.08		0.24		0.18
Net income per share – diluted	0.07		0.08		0.23		0.18
Dividend per share	0.05		0.05		0.15		0.15

Condensed Consolidated Statements of Cash Flows

	Three months ended December 31				Nine months ended December 31
UNAUDITED (thousands of Canadian $)	2023		2022		2023		2022
Operating activities
Net income	5,610		6,348		19,030		14,571
Adjustments for:
Depreciation and amortization of property, equipment, right- of use assets	890		864		2,686		2,732
Amortization of intangible assets	665		–		851		–
Deferred income tax expense (recovery)	1,104		(145	)	3,082		(64	)
Stock-based compensation	513		1,102		2,222		462
Foreign exchange and other non-cash items	(305	)	–		17		–
Funds flow from operations	8,477		8,169		27,888		17,701
Movement in non-cash working capital:
Trade and other receivables	(5,413	)	(4,872	)	(2,112	)	(1,048	)
Trade payables and accrued liabilities	2,413		649		24		27
Prepaid expenses and other assets	(639	)	1		(349	)	(421	)
Income taxes receivable (payable)	(181	)	1,157		(1,432	)	733
Deferred revenue	(4,214	)	2,553		(9,351	)	(3,737	)
Change in non-cash working capital	(8,034	)	(512	)	(13,220	)	(4,446	)
Net cash provided by operating activities	443		7,657		14,668		13,255
Financing activities
Repayment of acquired line of credit	–		–		(2,012	)	–
Proceeds from issuance of common shares	1,783		19		2,996		434
Repayment of lease liabilities	(364	)	(413	)	(1,188	)	(1,055	)
Dividends paid	(4,059	)	(4,025	)	(12,140	)	(12,067	)
Net cash used in financing activities	(2,640	)	(4,419	)	(12,344	)	(12,688	)
Investing activities
Corporate acquisition, net of cash acquired	157		–		(22,893	)	–
Change in non-cash working capital	(517	)	–		(517	)	–
Property and equipment additions	(459	)	(211	)	(555	)	(341	)
Net cash used in investing activities	(819	)	(211	)	(23,695	)	(341	)
Increase (decrease) in cash	(3,016	)	3,027		(21,641	)	226
Effect of foreign exchange on cash	(26	)	–		(26	)	–
Cash, beginning of period	48,225		56,859		66,850		59,660
Cash, end of period	45,183		59,886		45,183		59,886
Supplementary cash flow information
Interest received	986		548		2,438		1,105
Interest paid	444		482		1,394		1,458
Income taxes paid	1,071		1,732		5,429		4,615

For further information, please contact:

Pramod Jain	or	Sandra Balic
Chief Executive Officer		Vice President, Finance & CFO
(403) 531-1300		(403) 531-1300
pramod.jain@cmgl.ca		sandra.balic@cmgl.ca
For investor inquiries, please contact:
Kim MacEachern
Manager, Investor Relations
cmg-investors@cmgl.ca
For media inquiries, please contact:
marketing@cmgl.ca

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will”, and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding the benefits of the acquired technology, the ongoing development thereof; and the ability of data analytics to improve efficiency, cut costs and reduce risks.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are detailed in the companies’ public filings.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.