Author Topic: CSU - Constellation Software  (Read 208211 times)

Liberty

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Re: CSU - Constellation Software
« Reply #580 on: April 30, 2019, 09:34:55 AM »
Getting closer to the AGM (May 2). Like the past couple of years, I'm planning on having drinks with whoever shows up the night before (May 1st). Very likely to be at the 'C'est What' pub again (I don't know any other pubs in Toronto, to be honest). More details to come..

https://goo.gl/maps/jSM4XtVu2tLAiciR6

https://twitter.com/LibertyRPF/status/1121879553637527553

So I'm going to Toronto tomorrow (May 1st). Plan is to meet whoever wants to come at C'Est What (address above), I'll aim to be there around 6-7 PM. Will post on Twitter when I'm more sure of the time (hard to estimate how long it'll take to do various thing in an unfamiliar city).

Hopefully I see some of you there tomorrow!
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen


khturbo

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Re: CSU - Constellation Software
« Reply #581 on: April 30, 2019, 12:04:52 PM »
Sounds great, see you tomorrow! Looking forward to it!

gary17

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Shooter MacGavin

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Re: CSU - Constellation Software
« Reply #583 on: May 01, 2019, 04:34:10 PM »
seems like a weak quarter

https://www.csisoftware.com/docs/default-source/press-releases/csi---press-release-q1-2019---final.pdf

It's not that bad.  It's actually fairly good.

They bought a company in 4Q18 which had a 13M EBITDA loss in 1Q19 for which they got $53M from the seller to plug the hole.  Therefore normalized for that EBITDA grew almost 21%.  Depreciation expense would've been 7M but they adopted IAS16.  So there is some increased depreciation relative to last year.  This is due to the totally unnecessary right of use stuff showing up on balance sheets for leases. 

If you normalize - then you get something like a 21% growth in Adj. EPS, with $9 in excess cash on the books after subtracting the dividends payable. 

There's some fx stuff too and bargain purchase gains.  But that's my initial take.
« Last Edit: May 01, 2019, 04:48:57 PM by Shooter MacGavin »

snowball82

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Re: CSU - Constellation Software
« Reply #584 on: May 01, 2019, 06:44:30 PM »
With that news we can expect more large acquisitions..

Constellation Software Inc. Announces Reduction in Hurdle Rate for Large
Acquisitions
TORONTO, May 01, 2019 -- Constellation Software Inc. (TSX:CSU) announced today that the Board of Directors has approved
lowering the hurdle rate for acquisitions requiring an equity investment of at least US$100 million. Management believes that
by lowering the hurdle rate the Company will become more price competitive on these larger transactions.
About Constellation Software Inc.
Constellation Software acquires, manages and builds vertical market software businesses.
Contact:
Jamal Baksh
Chief Financial Officer
416-861-9677

thefatbaboon

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Re: CSU - Constellation Software
« Reply #585 on: May 02, 2019, 11:40:56 AM »
Weird.  Why in the world would this be announced?

Shooter MacGavin

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Re: CSU - Constellation Software
« Reply #586 on: May 02, 2019, 12:25:41 PM »
Weird.  Why in the world would this be announced?

it's probably an advertisement.

walkie518

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Re: CSU - Constellation Software
« Reply #587 on: May 07, 2019, 02:25:38 PM »
seems like a weak quarter

https://www.csisoftware.com/docs/default-source/press-releases/csi---press-release-q1-2019---final.pdf

It's not that bad.  It's actually fairly good.

They bought a company in 4Q18 which had a 13M EBITDA loss in 1Q19 for which they got $53M from the seller to plug the hole.  Therefore normalized for that EBITDA grew almost 21%.  Depreciation expense would've been 7M but they adopted IAS16.  So there is some increased depreciation relative to last year.  This is due to the totally unnecessary right of use stuff showing up on balance sheets for leases. 

If you normalize - then you get something like a 21% growth in Adj. EPS, with $9 in excess cash on the books after subtracting the dividends payable. 

There's some fx stuff too and bargain purchase gains.  But that's my initial take.

no one thinks negatively on the "bargain purchase gain" accounting here?  seems like a net income boost without merit? ... ie they paid what they paid, shouldn't be marked as if they paid more?

bizaro86

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Re: CSU - Constellation Software
« Reply #588 on: May 07, 2019, 02:34:44 PM »
Weird.  Why in the world would this be announced?

"We've offered you a crappy price for your business in the past, but we're getting less cheap. Get back in contact and we'll make you a better offer!"

Probably makes sense to do this. If they're anticipating having excess capital, it'd be better to deploy it at slightly lower rates than they've been getting in the past than to keep it as cash. It is also likely better than doing buybacks at the current valuation.


walkie518

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Re: CSU - Constellation Software
« Reply #589 on: May 07, 2019, 03:45:48 PM »
Weird.  Why in the world would this be announced?

"We've offered you a crappy price for your business in the past, but we're getting less cheap. Get back in contact and we'll make you a better offer!"

Probably makes sense to do this. If they're anticipating having excess capital, it'd be better to deploy it at slightly lower rates than they've been getting in the past than to keep it as cash. It is also likely better than doing buybacks at the current valuation.

on this point, I think the '15 letter noted that once the managers show the ability to make disciplined acquisitions, the bar gets raised... if so, one has to imagine, that the large dividend was likely a 1x item?