Computer Modelling Group Announces Third Quarter Results

| Source: Computer Modelling Group Ltd Computer Modelling Group Ltd

CALGARY, Alberta, Feb. 10, 2022 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. (“CMG” or the “Company”) announces its financial results for the three and nine months ended December 31, 2021.

Quarterly Performance

 Fiscal 2020 Fiscal 2021 Fiscal 2022
($ thousands, unless otherwise stated)Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Annuity/maintenance license revenue15,233 14,523 14,144 13,477 13,790 12,286 13,239 13,575
Perpetual license revenue1,403 - 1,775 660 1,184 125 846  1,497
Software license revenue16,636 14,523 15,919 14,137 14,974 12,411 14,085 15,072
Professional services1,879 2,149 1,933 1,901 1,827 2,003 1,864  1,973
Total revenue18,515 16,672 17,852 16,038 16,801 14,414 15,949 17,045
Operating profit7,802 5,711 9,861 8,437 6,556 5,573 5,440  7,755
Operating profit (%)42 34 55 53 39 39 34  45
Profit before income and other taxes9,613 4,405 9,360 7,410 5,747 4,827 5,321  7,310
Income and other taxes2,550 1,143 2,600 1,535 1,454 1,094 1,175  1,736
Net income for the period7,063 3,262 6,760 5,875 4,293 3,733 4,146  5,574
EBITDA(1)8,923 6,767 10,933 9,509 7,627 6,596 6,473  8,843
Cash dividends declared and paid8,024 4,013 4,013 4,015 4,014 4,015 4,016  4,017
Funds flow from operations7,515 4,703 7,991 7,322 6,267 4,811 4,904  7,022
Free cash flow(1)6,840 4,239 7,474 7,005 5,755 4,478 4,494  6,227
Per share amounts – ($/share)               
Earnings per share (EPS) – basic and diluted0.09 0.04 0.08 0.07 0.05 0.05 0.05 0.07
Cash dividends declared and paid0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Funds flow from operations per share – basic0.09 0.06 0.10 0.09 0.08 0.06 0.06 0.09
Free cash flow per share – basic(1)0.09 0.05 0.09 0.09 0.07 0.06 0.06 0.08

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

Commentary on Quarterly Performance

For the Three Months EndedFor the Nine Months Ended
December 31, 2021 and compared to the same period of the previous fiscal year, when appropriate:
 
  • Annuity/maintenance license revenue increased by 1%;
  • Annuity/maintenance license revenue decreased by 7%;
  • Perpetual license revenue increased by $0.8 million, or 127%;
  • Perpetual license revenue remained flat;
  • Total revenue increased by 6%;
  • Total revenue decreased by 6%;
  • Total operating expenses increased by 22%. Adjusted for CEWS and CERS benefits, operating expenses increased by 4%;
  • Total operating expenses increased by 8%. Adjusted for CEWS and CERS benefits and a one-time restructuring charge, operating expenses decreased by 7%, due to lower stock-based compensation expense, salary reductions and lower headcount;
  • Quarterly operating profit margin was 45%, down from the comparative quarter’s figure of 53%. Adjusted for CEWS and CERS benefits, operating profit margin was 43% and 42%, respectively, in line with the pre-COVID average for fiscal 2019 and fiscal 2020 of 40%;
  • Year-to-date operating profit margin was 40%, down from the comparative period’s figure of 47%. Adjusted for CEWS and CERS benefits and the one-time restructuring charge, operating profit was 40% and 39%, respectively;
  • Basic EPS of $0.07 was consistent with the comparative quarter;
  • Basic EPS of $0.17 was lower than the comparative period’s EPS of $0.20;
  • Achieved free cash flow per share of $0.08;
  • Achieved free cash flow per share of $0.19;
  • Declared and paid a dividend of $0.05 per share.
  • Declared and paid dividends of $0.15 per share.

Revenue

Three months ended December 31,2021  2020  $ change  % change 
($ thousands)      
       
Software license revenue 15,072   14,137  935  7%
Professional services 1,973   1,901  72  4%
Total revenue 17,045   16,038  1,007  6%
       
Software license revenue as a % of total revenue88% 88%     
Professional services as a % of total revenue12% 12%     


Nine months ended December 31,2021  2020  $ change  % change 
($ thousands)    
     
Software license revenue 41,568   44,579  (3,011) -7%
Professional services 5,840   5,983  (143) -2%
Total revenue 47,408   50,562  (3,154) -6%
     
Software license revenue as a % of total revenue88% 88%   
Professional services as a % of total revenue12% 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 December 31, 2021 increased by 6%, due to increases in both software license revenue and professional services revenue. Total revenue for the nine months ended December 31, 2021 decreased by 6%, due to decreases in both software license revenue and professional services revenue.

Software License Revenue

Three months ended December 31,2021  2020  $ change  % change 
($ thousands)      
       
Annuity/maintenance license revenue 13,575   13,477  98  1%
Perpetual license revenue 1,497   660  837  127%
Total software license revenue 15,072   14,137  935  7%
       
Annuity/maintenance as a % of total software license revenue90% 95%     
Perpetual as a % of total software license revenue10% 5%     


Nine months ended December 31,2021  2020  $ change  % change 
($ thousands)    
     
Annuity/maintenance license revenue 39,100   42,144  (3,044) -7%
Perpetual license revenue 2,468   2,435  33  1%
Total software license revenue 41,568   44,579  (3,011) -7%
     
Annuity/maintenance as a % of total software license revenue94% 95%   
Perpetual as a % of total software license revenue6% 5%   

Total software license revenue for the three months ended December 31, 2021 increased by 7%, compared to the same period of the previous fiscal year, primarily due to higher perpetual license revenue. Total software license revenue for the nine months ended December 31, 2021 decreased by 7%, compared to the same period of the previous fiscal year, due to a decrease in annuity/maintenance license revenue.

During the three months ended December 31, 2021, CMG’s annuity/maintenance license revenue remained consistent with same period of the previous fiscal year, increasing by 1%. Increases in Canada and South America were almost offset by decreases in the US and the Eastern Hemisphere. During the nine months ended December 31, 2021, CMG’s annuity/maintenance license revenue decreased by 7%, as decreases in the US and the Eastern Hemisphere were partially offset by an increase in South America, which was primarily due to a multi-year agreement that includes CoFlow annuity licensing.

Perpetual license revenue increased by 127% and 1% during the three and nine months ended December 31, 2021, respectively, compared to the same periods of the previous fiscal year.

Software Revenue by Geographic Region

Three months ended December 31,2021  2020  $ change  % change 
($ thousands)        
Annuity/maintenance license revenue        
Canada 3,303   3,097  206  7%
United States 3,429   3,649  (220) -6%
South America 1,884   1,320  564  43%
Eastern Hemisphere(1) 4,959   5,411  (452) -8%
  13,575   13,477  98  1%
Perpetual license revenue        
Canada -   -  -  - 
United States 180   -  180  100%
South America -   41  (41) -100%
Eastern Hemisphere 1,317   619  698  113%
  1,497   660  837  127%
Total software license revenue        
Canada 3,303   3,097  206  7%
United States 3,609   3,649  (40) -1%
South America 1,884   1,361  523  38%
Eastern Hemisphere 6,276   6,030  246  4%
  15,072   14,137  935  7%


Nine months ended December 31,2021  2020  $ change  % change 
($ thousands)        
Annuity/maintenance license revenue        
Canada 9,425   9,452  (27) 0%
United States 9,502   11,533  (2,031) -18%
South America 5,195   4,412  783  18%
Eastern Hemisphere(1) 14,978   16,747  (1,769) -11%
  39,100   42,144  (3,044) -7%
Perpetual license revenue        
Canada -   -  -  - 
United States 401   -  401  100%
South America -   1,020  (1,020) -100%
Eastern Hemisphere 2,067   1,415  652  46%
  2,468   2,435  33  1%
Total software license revenue        
Canada 9,425   9,452  (27) 0%
United States 9,903   11,533  (1,630) -14%
South America 5,195   5,432  (237) -4%
Eastern Hemisphere 17,045   18,162  (1,117) -6%
  41,568   44,579  (3,011) -7%

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

During the three months ended December 31, 2021, compared to the same period of the previous fiscal year, total software license revenue increased in all geographic regions, with the exception of United States, which experienced a slight 1% decrease. During the nine months ended December 31, 2021, total software licensing revenue decreased in all geographic regions, except for Canada, which stayed flat.

The Canadian region (representing 23% of year-to-date total software license revenue) experienced a 7% increase in annuity/maintenance license revenue during the three months ended December 31, 2021, due to a returning customer and increased licensing by some existing customers. Annuity/maintenance license revenue remained flat during the nine months ended December 31, 2021.

The United States (representing 24% of year-to-date total software license revenue) experienced decreases of 6% and 18% in annuity/maintenance license revenue during the three and nine months ended December 31, 2021, 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 was up, as there were no perpetual sales in the comparative periods.

South America (representing 12% of year-to-date total software license revenue) experienced increases of 43% and 18% in annuity/maintenance license revenue during the three and nine months ended December 31, 2021, compared to the same periods of the previous fiscal year, primarily due to a new multi-year lease that includes CoFlow. There were no perpetual sales in South America in the current period and year to date.

The Eastern Hemisphere (representing 41% of year-to-date total software license revenue) experienced decreases of 8% and 11% in annuity/maintenance license revenue during the three and nine months ended December 31, 2021, mainly due to reduced licensing by some customers. Perpetual revenue during the three and nine months ended December 31, 2021 increased by 113% and 46%, respectively, as a result of perpetual sales realized in Asia and Europe.

Deferred Revenue

($ thousands)Fiscal 2022  Fiscal 2021  Fiscal 2020  $ 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)   30,461  33,838  (3,377) -10%

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 Q3 of fiscal 2022 increased by 50% compared to Q3 of fiscal 2021, mainly due to the positive effect of early renewals.

Expenses

Three months ended December 31,2021  2020  $ change  % change 
($ thousands)          
           
Sales, marketing and professional services 3,810   3,335  475  14%
Research and development 3,926   3,092  834  27%
General and administrative 1,554   1,174  380  32%
Total operating expenses 9,290   7,601  1,689  22%
           
Direct employee costs(1) 7,054   5,590  1,464  26%
Other corporate costs(1) 2,236   2,011  225  11%
  9,290   7,601  1,689  22%


Nine months ended December 31,2021  2020  $ change  % change 
($ thousands)        
         
Sales, marketing and professional services 11,062   11,209  (147) -1%
Research and development 12,599   11,158  1,441  13%
General and administrative 4,979   4,186  793  19%
Total operating expenses 28,640   26,553  2,087  8%
         
Direct employee costs(1) 22,703   20,257  2,446  12%
Other corporate costs(1) 5,937   6,296  (359) -6%
  28,640   26,553  2,087  8%

(1) This is a non-IFRS financial measure. Refer to 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 adjust other corporate costs:

 Three months ended December 31  Nine months ended December 31 
($ thousands)2021  2020  2021  2020 
          
Total operating expenses 9,290   7,601   28,640   26,553 
CEWS 259   1,550   583   4,090 
CERS 140   139   183   139 
Restructuring charge -   -   (851) - 
Adjusted total operating expenses 9,689   9,290   28,555   30,782 
          
Direct employee costs 7,054   5,590   22,703   20,257 
CEWS 259   1,550   583   4,090 
Restructuring charge -   -   (851) - 
Adjusted direct employee costs 7,313   7,140   22,435   24,347 
          
Other corporate costs 2,236   2,011   5,937   6,296 
CERS 140   139   183   139 
Adjusted other corporate costs 2,376   2,150   6,120   6,435 

For the three months ended December 31, 2021, adjusted direct employee costs increased by $0.2 million, or 2%, compared to the same period of the previous fiscal year. For the nine months ended December 31, 2021, adjusted direct employee costs decreased by $1.9 million, or 8%, compared to the same period of the previous fiscal year, due to lower stock-based compensation expense, salary reductions implemented on July 1, 2020 and lower headcount.

Adjusted other corporate costs increased by 11% for the three months ended December 31, 2021, compared to the same period of the previous fiscal year, due to small increases in a number of corporate categories. Adjusted other corporate costs for the nine months ended December 31, 2021 decreased by 5%, compared to the same period of the previous fiscal year, due to a refund of office operating costs and higher SR&ED credits.

Outlook

Our annuity/maintenance revenue increased slightly by 1% during Q3 of fiscal 2022 compared to Q3 of fiscal 2021, which was encouraging to see after experiencing comparable quarter declines in this revenue stream since late in fiscal 2020 when the COVID-19 pandemic first occurred. We are also encouraged by consecutive increases in fiscal 2022 sequential quarter annuity/maintenance revenue and a number of early renewals which had a positive effect on our December 31, 2021 deferred revenue balance.

On a year-to-date basis, annuity/maintenance revenue decreased by 7% affected by the headwinds experienced earlier in the fiscal year when our customers’ spending was affected by COVID-related cautions and uncertainties.

Geographically, South American annuity/maintenance revenue was positively affected by a multi-year agreement with Petroleo Brasileiro S.A that includes commercial use of CoFlow. We are observing stability in Canadian annuity/maintenance revenue as evidenced by a 7% growth during the quarter which contributed to a flat year-to-date comparison. The United States and the Eastern Hemisphere saw decreases both during the quarter and year to date, as license reductions that occurred at the beginning of calendar 2021 continue to negatively affect revenue comparison with the prior year.

During the quarter, we closed two more deals for commercial licensing of CoFlow – one with a customer in South America and one in the Eastern Hemisphere.

Perpetual revenue was up $0.8 million, or 127%, during the three months ended December 31, 2021, mainly due to perpetual sales realized in Asia and Europe. Year-to-date perpetual sales were comparable to the same period of the previous fiscal year.

We remain focused on expense management. In Q2 of this year, we reduced our headcount and adjusted staff salaries. Executives’ and directors’ cash compensation remains reduced in fiscal 2022. Adjusted total operating expenses increased by 4% during the quarter, compared to the same quarter of the previous fiscal year. Year-to-date adjusted total operating expenses decreased by 7%, due to lower stock-based compensation expense, salary reductions and lower headcount. For almost two fiscal years now, discretionary expenses, such as travel, tradeshows and customer engagement have been reduced due to pandemic restrictions.

We continue to maintain a strong financial position. We closed the quarter with $47.7 million in cash, no debt and no significant accounts receivable collectability concerns. Basic earnings per share were $0.07 for the quarter and $0.17 for the year to date. During the quarter and year to date, we generated free cash flow of $0.08 and $0.19 per share, respectively. During the three months ended December 31, 2021, we declared and paid dividends totaling $0.05 per share.

Energy transition-related modelling, such as carbon capture and sequestration and geothermal processes, continues to be an area of opportunity for CMG, as CMG’s existing software has the technical capabilities to support energy transition-related modelling. As producers and governments become increasingly interested in these processes, we believe that CMG is the experienced go-to partner for energy transition modelling solutions. During the current quarter, we continued to add new software and consulting contracts for energy transition and CO2-related work.

During the current quarter we continued to observe recovery in both oil and gas demand and commodity prices. As market sentiment improves and our customers adapt to operating in volatile market conditions, we are encouraged by the renewals that we have seen in our customers’ calendar 2022 budget cycle. As the market focuses on energy transition, capital discipline, operational efficiencies and debt reduction, CMG will be responsive and proactive to our customers’ needs and will support them in improving the value of their assets by optimizing production and realizing operational cost efficiencies. We are hopeful for a more positive 2022. We look forward to getting back into the office, as well as attending in-person trade shows and events and re-engaging with customers in a more significant way, as the pandemic restrictions are loosened.

For further details on the results, please refer to CMG's Management Discussion and Analysis 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 3 in the Company’s MD&A for the three and nine months ended December 31, 2021, 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:

EBITDA Reconciliation to Net Income

Three months ended December 31,2021  2020  $ change  % change 
($ thousands)        
         
Net income 5,574   5,875  (301) -5%
Add (deduct):        
Depreciation 1,088   1,072  16  1%
Finance (income) costs 445   1,027  (582) -57%
Income and other taxes 1,736   1,535  201  13%
EBITDA 8,843   9,509  (666) -7%


Nine months ended December 31,2021  2020  $ change  % change 
($ thousands)        
         
Net income 13,453   15,897  (2,444) -15%
Add (deduct):        
Depreciation 3,144   3,200  (56) -2%
Finance (income) costs 1,310   2,834  (1,524) -54%
Income and other taxes 4,005   5,278  (1,273) -24%
EBITDA 21,912   27,209  (5,297) -19%

Free Cash Flow Reconciliation to Funds Flow from Operations

 Fiscal 2020 Fiscal 2021 Fiscal 2022
($ thousands, unless otherwise stated)Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3 
         
Funds flow from operations7,515  4,703  7,991  7,322  6,267  4,811  4,904  7,022 
Capital expenditures(296) (149) (200) (7) (41) (27) (133) (481)
Repayment of lease liabilities(379) (315) (317) (310) (471) (306) (277) (314)
Free cash flow6,840  4,239  7,474  7,005  5,755  4,478  4,494  6,227 
Weighted average shares – basic (thousands)80,249  80,249  80,265  80,286  80,286  80,286  80,307  80,335  
Free cash flow per share – basic0.09  0.05  0.09  0.09  0.07  0.06  0.06  0.08  
                        

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”.

Condensed Consolidated Statements of Financial Position

UNAUDITED (thousands of Canadian $)December 31, 2021  March 31, 2021 
   
Assets  
Current assets:  
Cash47,727   49,068 
Trade and other receivables18,768   23,239 
Prepaid expenses1,065   820 
Prepaid income taxes1,149   8 
 68,709   73,135 
Property and equipment11,305   12,025 
Right-of-use assets33,698   35,509 
Deferred tax asset1,926   1,822 
Total assets 115,638   122,491 
   
Liabilities and shareholders’ equity  
Current liabilities:  
Trade payables and accrued liabilities5,781   6,316 
Income taxes payable18   49 
Deferred revenue23,056   30,461 
Lease liability1,526   1,356 
 30,381   38,182 
Long-term stock-based compensation liability1,156  1,281 
Long-term lease liability38,510  39,606 
Total liabilities70,047  79,069 
   
Shareholders’ equity:  
Share capital80,248  80,051 
Contributed surplus14,818  14,251 
Deficit(49,475) (50,880)
Total shareholders' equity45,591  43,422 
Total liabilities and shareholders' equity115,638  122,491 
      

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)2021  2020  2021  2020 
     
Revenue17,045  16,038  47,408  50,562 
     
Operating expenses    
Sales, marketing and professional services 3,810   3,335   11,062   11,209 
Research and development 3,926   3,092   12,599   11,158 
General and administrative 1,554   1,174   4,979   4,186 
 9,290   7,601  28,640   26,553 
Operating profit 7,755   8,437   18,768   24,009 
     
Finance income115  92  339  288 
Finance costs(560) (1,119) (1,649) (3,122)
Profit before income and other taxes7,310  7,410  17,458  21,175 
Income and other taxes1,736  1,535  4,005  5,278 
     
Net and total comprehensive income5,574  5,875  13,453  15,897 
     
Earnings per share    
Basic and diluted0.07  0.07  0.17  0.20 
            

Condensed Consolidated Statements of Cash Flows

 Three months ended December 31  Nine months ended December 31 
UNAUDITED (thousands of Canadian $)2021  2020   2021  2020 
     
Operating activities    
Net income5,574  5,875  13,453   15,897 
Adjustments for:    
Depreciation1,088  1,072  3,144  3,200 
Deferred income tax expense (recovery)(49) (120) (104) (554)
Stock-based compensation409  495  244  1,473 
Funds flow from operations 7,022  7,322  16,737  20,016 
Movement in non-cash working capital:    
Trade and other receivables (4,687) (4,345) 4,471  10,857 
Trade payables and accrued liabilities68  676  (141) (1,371)
Prepaid expenses(45) 98   (245) (70)
Income taxes payable 355  (23)  (1,172) 1,069 
Deferred revenue 1,814  (4,202)  (7,405) (18,491)
Increase in non-cash working capital (2,495) (7,796)  (4,492) (8,006)
Net cash provided by (used in) by operating activities 4,527  (474) 12,245  12,010 
     
Financing activities    
Repayment of lease liability (314) (310)  (897) (942)
Dividends paid (4,017) (4,015)  (12,048) (12,041)
Net cash used in financing activities (4,331) (4,325)  (12,945) (12,983)
     
Investing activities    
Property and equipment additions(481) (7)  (641) (356)
Decrease in cash(285) (4,806) (1,341) (1,329)
Cash, beginning of period48,012  43,982  49,068  40,505 
Cash, end of period47,727  39,176  47,727  39,176 
     
Supplementary cash flow information    
Interest received115  91  339  289 
Interest paid500  517  1,510  1,563 
Income taxes paid1,107  722  4,617  4,200 
            

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:

Ryan N. Schneider
President & CEO
(403) 531-1300
ryan.schneider@cmgl.ca		orSandra Balic
Vice President, Finance & CFO
(403) 531-1300
sandra.balic@cmgl.ca

www.cmgl.ca