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Constellation Software Q1 profit soars; revenue gains boosted by acquisitions

TORONTO – Constellation Software Inc. (TSX:CSU) has reported a big, triple-digit increase in first-quarter earnings amid a seven per cent boost in revenue attributed to growth from acquisitions.

The Toronto-based supplier of software to both government and commercial customers said net income increased 270 per cent to US$33 million or $1.55 per diluted share from US$9 million or 42 cents a share in the same 2014 quarter.

Adjusted income increased 40 per cent to US$75 million or $3.52 a diluted per share from $53 million or $2.52 per share.

Revenue rose to US$423 million from US$395 million.

Revenue in the public sector segment increased $13 million or five per cent to $291 million from $278 million, with a “significant” portion due to 14 acquisitions since the beginning of 2014.

Revenue in the private sector segment was up $15 million or 13 per cent to $132 million from $117 million in the year-earlier period, with a significant portion attributable to 12 completed acquisitions in that segment since the beginning of 2014.

Organic revenue growth in both segments was negative, pulled down by the impact of the appreciation of the U.S. dollar.