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TORONTO, ONTARIO -- (Marketwired) -- 03/06/14 -- Constellation Software Inc. (TSX: CSU) ("Constellation" or the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2013. 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, 2013, 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.

2013 Headlines:

--  Revenue grew 36% (4% organically) to $1,211 million compared to $891
    million in 2012.
--  Adjusted EBITA increased $56 million or 31% to $234 million as compared
    to $178 million in 2012.
--  Adjusted net income increased 20% to $207 million ($9.76 on a diluted
    per share basis) from $172 million ($8.13 on a diluted per share basis)
    in 2012.
--  Net income increased 1% to $93 million ($4.39 on a diluted per share
    basis) from $93 million ($4.37 on a diluted per share basis) in 2012.
--  Thirty acquisitions were completed for aggregate upfront cash
    consideration of $558 million (which includes $57 million paid for
    acquired cash). Deferred payments associated with these acquisitions
    have an estimated value of $31 million.
--  Cash flows from operations increased $75 million or 52% to $220 million
    from $145 million in 2012.

Q4 2013 Headlines:

--  Revenue grew 30% (5% organically) to $340 million compared to $261
    million in Q4 2012.
--  Adjusted EBITA increased $24 million or 45% to $76 million as compared
    to $52 million in Q4 2012.
--  Adjusted net income increased 11% to $69 million ($3.26 on a diluted per
    share basis) from $62 million ($2.94 on a diluted per share basis) in Q4
    2012.
--  Net income increased 6% to $43 million ($2.00 on a diluted per share
    basis) from $40 million ($1.89 on a diluted per share basis) in 2012.
--  On December 31, 2013, the Company acquired 100% of the shares of Total
    Specific Solutions (TSS) B.V. for aggregate upfront cash consideration
    of $342 million (which includes $31 million paid for acquired cash).
--  Eight additional acquisitions were completed in the quarter for
    aggregate upfront cash consideration of $46 million (which includes $7
    million paid for acquired cash). Deferred payments associated with these
    acquisitions have an estimated value of $10 million.
--  The amount drawn on the Company's credit facility increased to $479
    million from $148 million in Q3 2013.

--  Cash flows from operations increased $20 million or 33% to $81 million
    from $61 million in Q4 2012.

Additional Headlines:

--  Subsequent to December 31, 2013, the Company completed five acquisitions
    for aggregate cash consideration of $14 million.

Fourth quarter 2013 revenue was $340 million, an increase of 30%, or $79 million, compared to $261 million for the comparable period in 2012. For fiscal year 2013, total revenue was $1,211 million, an increase of 36%, or $320 million, compared to $891 million for the 2012 fiscal year. The increase for both the quarter and fiscal year ended December 31, 2013 compared to the same periods in the prior year is mainly attributable to growth from acquisitions, however, the Company did experience positive organic growth of 5% and 4%, respectively.

Adjusted EBITA for the fourth quarter of 2013 was $76 million, a 45% increase compared to the prior year's fourth quarter Adjusted EBITA of $52 million. (See "Non-IFRS Measures" below for a definition of EBITA.) Fourth quarter 2013 Adjusted EBITA per share on a diluted basis increased 45% to $3.59, compared to $2.47 for the same period last year. Adjusted EBITA for fiscal year 2013 was $234 million, a 31% increase over last year's Adjusted EBITA of $178 million. Adjusted EBITA per share on a diluted basis for fiscal year 2013 increased 31% to $11.03, compared to $8.41 for fiscal year 2012.

Adjusted Net Income for the fourth quarter of 2013 was $69 million, compared to the prior year's fourth quarter Adjusted Net Income of $62 million, an 11% increase. Fourth quarter 2013 Adjusted Net Income per share on a diluted basis increased 11% to $3.26, compared to $2.94 for the prior year's fourth quarter. Adjusted Net Income for fiscal year 2013 was $207 million, an increase of 20% over last year's Adjusted Net Income of $172 million. Adjusted Net Income per share on a diluted basis for fiscal year 2013 increased 20% to $9.76, compared to $8.13 for fiscal year 2012.

Net income for the fourth quarter 2013 was $43 million compared to the prior year's fourth quarter net income of $40 million. On a diluted per share basis, this translates into net income per share of $2.00 for the fourth quarter of 2013 compared to $1.89 for the same period of 2012. Net income for fiscal year 2013 was $93 million, which is consistent with last year's net income of $93 million. Net income per share on a diluted basis for fiscal year 2013 increased 1% to $4.39, compared to $4.37 for fiscal year 2012.

The following table displays our revenue by reportable segment and the percentage change for the three and twelve months ended December 31, 2013 compared to the same periods in 2012:

                 ----------------------------   ----------------------------
                  Three months                    Fiscal Year
                      ended     Period-Over-         ended     Period-Over-
                  December 31,  Period Change    December 31,  Period Change
                 ----------------------------   ----------------------------
                    2013   2012      $      %      2013   2012      $      %
                   ($M, except percentages)       ($M, except percentages)
Public Sector
Licenses            21.3   15.5    5.8    37%      67.9   48.9   19.0    39%
Professional
 services           57.4   47.3   10.1    21%     203.1  154.8   48.3    31%
Hardware and
 other              33.1   34.3  (1.3)    -4%     111.7   97.8   13.9    14%
Maintenance and
 other recurring   125.0   92.2   32.7    36%     449.6  334.5  115.0    34%
                 ----------------------------   ----------------------------
                   236.8  189.5   47.4    25%     832.2  636.0  196.2    31%
                 ----------------------------   ----------------------------
                 ----------------------------   ----------------------------

Private Sector
Licenses             8.8    7.1    1.6    23%      33.8   23.6   10.3    44%
Professional
 services           14.5   11.3    3.3    29%      53.6   42.3   11.3    27%
Hardware and
 other               4.6    3.6    1.0    27%      16.2   13.6    2.7    20%
Maintenance and
 other recurring    75.6   49.5   26.1    53%     274.9  175.8   99.1    56%
                 ----------------------------   ----------------------------
                   103.5   71.5   31.9    45%     378.6  255.2  123.3    48%
                 ----------------------------   ----------------------------

Public Sector

For the quarter ended December 31, 2013, total revenue in the public sector reportable segment increased by 25%, or $47 million to $237 million, compared to $190 million for the quarter ended December 31, 2012. For the fiscal year ended December 31, 2013, total revenue increased by 31%, or $196 million to $832 million, compared to $636 million for the comparable period in 2012. Total revenue growth from acquired businesses contributed approximately $37 million to our Q4 2013 revenues and $169 million to our fiscal year ended December 31, 2013 revenues compared to the same periods in 2012, as we completed 36 acquisitions since the beginning of 2012. Organic revenue growth was 5% in Q4 2013 and 4% for the fiscal year ended December 31, 2013 compared to the same periods in 2012.

Private Sector

For the quarter ended December 31, 2013, total revenue in the private sector reportable segment increased 45%, or $32 million to $104 million, compared to $72 million for the quarter ended December 31, 2012. For the fiscal year ended December 31, 2013 total revenue increased by 48%, or $123 million to $379 million, compared to $255 million for the comparable period in 2012. Total revenue growth from acquired businesses contributed approximately $29 million to our Q4 2013 revenues and $112 million to our fiscal year ended December 31, 2013 revenues compared to the same periods in 2012, as we completed 29 acquisitions since the beginning of 2012. Organic revenue growth was 4% for both the three and twelve months ended December 31, 2013 compared to the same periods in 2012.

Acquisition of Total Specific Solutions (TSS) B.V. ("TSS")

On December 31, 2013, the Company acquired 100% of the shares of TSS for aggregate cash consideration of $342 million (EUR248 million). As TSS was acquired on December 31, 2013, there was no impact of the acquisition on Constellation's actual statement of income for the year ended December 31, 2013. Unaudited pro forma consolidated financial information for the year ended December 31, 2013 has been prepared to give effect to the acquisition of TSS as if it had occurred on January 1, 2013, and is included in the Company's most recently filed Management's Discussion and Analysis and Business Acquisition Report both of which are available on SEDAR at www.sedar.com.

Conference Call and Webcast

Management will host a conference call at 9:00 a.m. (ET) on Friday, March 7th, 2014 to answer questions regarding the results. The teleconference numbers are 416-340-2216 or 866-226-1792. 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 11:30 a.m. ET the same day until 11:59 p.m. ET on March 19, 2014. To access the replay, please dial 905-694-9451 or 800-408-3053 followed by the passcode 9393313.

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.

Non-IFRS Measures

The term "Adjusted EBITA" refers to net income before adjusting for finance income, finance costs, income taxes, equity in net income or loss of equity investees, impairment of non-financial assets, amortization, 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. 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, and certain other expenses (income). 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, and certain other non-cash expenses (income) incurred or recognized by the Company from time to time. "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.

The following table reconciles Adjusted EBITA to net income:

                         ------------------------   ------------------------
                            Three months ended          Fiscal Year ended
                               December 31,               December 31,
                         ------------------------   ------------------------
                                 2013        2012           2013        2012
                         ($M, except percentages)   ($M, except percentages)

Total revenue                   340.3       261.0        1,210.8       891.2
                         ------------------------   ------------------------
                         ------------------------   ------------------------

Net income                       42.5        40.1           93.1        92.6
Adjusted for:
Income tax expense
 (recovery)                      12.0         6.2           25.1        18.1
Foreign exchange (gain)
 loss                           (1.3)         1.2          (0.8)         0.8
Equity in net (income)
 loss of equity investees       (0.1)       (0.0)          (0.8)         0.8
Finance income                  (0.2)      (19.6)          (1.0)      (23.2)
Bargain purchase gain           (8.1)           -          (8.1)           -
Finance costs                     2.2         1.1            7.1         4.0
Amortization of
 intangible assets               29.1        23.5          119.1        85.1

Adjusted EBITA                   76.1        52.3          233.8       178.3
Adjusted EBITA margin             22%         20%            19%         20%
                         ------------------------   ------------------------

The following table reconciles Adjusted net income to net income:

                           ------------------------ ------------------------
                              Three months ended        Fiscal Year ended
                                 December 31,             December 31,
                           ------------------------ ------------------------
                                   2013        2012         2013        2012
                           ($M, except percentages) ($M, except percentages)

Total revenue                     340.3       261.0      1,210.8       891.2
                           ------------------------ ------------------------
                           ------------------------ ------------------------

Net income                         42.5        40.1         93.1        92.6
Adjusted for:
Amortization of intangible
 assets                            29.1        23.5        119.1        85.1
Bargain purchase gain             (8.1)           -        (8.1)           -
Deferred income tax expense
 (recovery)                         5.7       (1.3)          2.6       (5.6)

Adjusted net income                69.2        62.3        206.8       172.2
Adjusted net income margin          20%         24%          17%         19%
                           ------------------------ ------------------------

About Constellation Software Inc.

Constellation Software acquires, manages and builds vertical market software businesses that provide mission-critical software solutions.

SOURCE: CONSTELLATION SOFTWARE INC.

CONSTELLATION SOFTWARE INC.
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                               December 31,     December 31,
                                                       2013             2012
----------------------------------------------------------------------------

Assets

Current assets:
  Cash                                       $       77,967   $       41,313
  Equity security available-for-sale                    780              470
  Accounts receivable                               191,446          126,987
  Work in progress                                   53,682           36,926
  Inventories                                        21,145           18,739
  Other assets                                       67,161           29,178
  --------------------------------------------------------------------------
                                                    412,181          253,613

Non-current assets:
  Property and equipment                             36,017           21,300
  Deferred income taxes                              71,673          104,307
  Other assets                                       36,171           31,104
  Intangible assets                                 981,662          402,355
  --------------------------------------------------------------------------
                                                  1,125,523          559,066

----------------------------------------------------------------------------
Total assets                                 $    1,537,704   $      812,679
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
  Bank indebtedness                          $      477,170   $       44,356
  Accounts payable and accrued liabilities          260,585          147,559
  Dividends payable                                  21,031           20,945
  Deferred revenue                                  306,213          227,584
  Provisions                                         11,887            6,396
  Acquisition holdback payments                      26,496           20,635
  Income taxes payable                                5,474            5,066
  --------------------------------------------------------------------------
                                                  1,108,856          472,541

Non-current liabilities:
  Deferred income taxes                             112,780           29,283
  Acquisition holdback payments                       4,203            5,973
  Other liabilities                                  45,866           46,078
  --------------------------------------------------------------------------
                                                    162,849           81,334

----------------------------------------------------------------------------
Total liabilities                                 1,271,705          553,875
----------------------------------------------------------------------------


Shareholders' equity:
  Capital stock                                      99,283           99,283
  Accumulated other comprehensive income                449            1,621
  Retained earnings                                 166,267          157,900
  --------------------------------------------------------------------------
                                                    265,999          258,804



----------------------------------------------------------------------------
Total liabilities and shareholders' equity   $    1,537,704   $      812,679
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSTELLATION SOFTWARE INC.
Consolidated Statements of Income
(In thousands of U.S. dollars, except per share amounts)


----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                 Year ended December 31
                                                       2013            2012
----------------------------------------------------------------------------


Revenue                                        $  1,210,776    $    891,226

Expenses
  Staff                                             643,672         469,677
  Hardware                                           73,475          61,446
  Third party license, maintenance and
   professional services                            102,377          61,469
  Occupancy                                          29,309          21,023
  Travel                                             44,724          35,967
  Telecommunications                                 14,208          10,996
  Supplies                                           22,023          15,308
  Professional fees                                  17,633          15,031
  Other, net                                         19,593          14,358
  Depreciation                                        9,944           7,643
  Amortization of intangible assets                 119,144          85,142
----------------------------------------------------------------------------
                                                  1,096,102         798,060


Foreign exchange loss (gain)                           (768)            822
Equity in net (income) loss of equity
 investees                                             (780)            839
Finance income                                       (1,041)        (23,178)
Bargain purchase gain                                (8,111)              -
Finance costs                                         7,124           4,001
----------------------------------------------------------------------------
                                                     (3,576)        (17,516)

Profit before income taxes                          118,250         110,682

Current income tax expense (recovery)                22,528          23,626
Deferred income tax expense (recovery)                2,587          (5,576)
----------------------------------------------------------------------------
Income tax expense (recovery)                        25,115          18,050

----------------------------------------------------------------------------
Net income                                           93,135          92,632
----------------------------------------------------------------------------

Earnings per share
  Basic and diluted                            $       4.39    $       4.37

----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSTELLATION SOFTWARE INC.
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts)



----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                Year ended December 31,
                                                       2013            2012
----------------------------------------------------------------------------

Net income                                     $     93,135    $     92,632

Items that are or may be reclassified
 subsequently to profit or loss:

  Net change in fair value of available-for-
   sale financial asset during the year                 310          13,968

  Net unrealized foreign exchange gain
   (loss) on available-for-sale financial
   asset during the year                                  -              45

  Amounts reclassified to profit during the
   year related to realized gains on
   available-for-sale financial asset                     -         (21,735)

  Foreign currency translation differences
   from foreign operations                           (1,535)          1,164

  Current income tax recovery (expense)                  53             104

  Deferred income tax recovery (expense)                  -           1,114

----------------------------------------------------------------------------
Other comprehensive (loss) income for the
 year, net of income tax                             (1,172)         (5,340)

----------------------------------------------------------------------------
Total comprehensive income for the year        $     91,963    $     87,292
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)



----------------------------------------------------------------------------
Year ended December 31, 2013
                                                     Accumulated other
                                 Capital stock  comprehensive income/(loss)

                                                             Amounts related
                                                             to gains/losses
                                                               on available-
                                                  Cumulative        for-sale
                                                 translation       financial
                                                     account          assets

Balance at January 1, 2013           $  99,283      $  1,450          $  171

Total comprehensive income for
 the year

Net income                                   -             -               -

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 asset during the year                       -             -             310

Net unrealized foreign exchange
 adjustment gain (loss) on
 available-for-sale financial
 asset during the year                       -             -               -

Amounts reclassified to profit
 during the year related to
 realized gains on available-
 for-sale investment                         -             -               -

Foreign currency translation
 differences from foreign
 operations                                  -        (1,535)              -

Current tax recovery (expense)               -            53               -

Deferred tax recovery (expense)              -             -               -

----------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the year                  -        (1,482)            310

----------------------------------------------------------------------------
Total comprehensive income
 (loss) for the year                         -        (1,482)            310
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Balance at December 31, 2013         $  99,283      $    (32)         $  481
----------------------------------------------------------------------------
----------------------------------------------------------------------------



CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)



----------------------------------------------------------------------------
Year ended December 31, 2013
                                        Total
                                  accumulated
                                        other
                                comprehensive       Retained
                                income/(loss)       earnings          Total



Balance at January 1, 2013           $  1,621     $  157,900     $  258,804

Total comprehensive income for
 the year

Net income                                  -         93,135         93,135

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 asset during the year                    310              -            310

Net unrealized foreign exchange
 adjustment gain (loss) on
 available-for-sale financial
 asset during the year                      -              -              -

Amounts reclassified to profit
 during the year related to
 realized gains on available-
 for-sale investment                        -              -              -

Foreign currency translation
 differences from foreign
 operations                            (1,535)             -         (1,535)

Current tax recovery (expense)             53              -             53

Deferred tax recovery (expense)             -              -              -

----------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the year            (1,172)             -         (1,172)

----------------------------------------------------------------------------
Total comprehensive income
 (loss) for the year                   (1,172)        93,135         91,963
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity
 Dividends to shareholders of
  the Company                               -        (84,768)       (84,768)

----------------------------------------------------------------------------
Balance at December 31, 2013         $    449     $  166,267     $  265,999
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)



----------------------------------------------------------------------------
----------------------------------------------------------------------------
Year ended December 31, 2012

                                                    Accumulated other
                                Capital stock  comprehensive income/(loss)

                                                                    Amounts
                                                                 related to
                                                               gains/losses
                                                              on available-
                                                   Cumulative      for-sale
                                                  translation     financial
                                                      account        assets

Balance at January 1, 2012          $  99,283       $     182     $   6,779

Total comprehensive income for
 the year

Net income                                  -               -             -

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 assets during the year                     -               -        13,968

Net unrealized foreign
 exchange adjustment gain
 (loss) on available-for-sale
 financial assets during the
 year                                       -               -            45

Amounts reclassified to profit
 during the year related to
 realized gains on available-
 for-sale financial assets                  -               -       (21,735)

Foreign currency translation
 differences from foreign
 operations                                 -           1,164             -

Current tax recovery (expense)              -             104             -

Deferred tax recovery
 (expense)                                  -               -         1,114

----------------------------------------------------------------------------
Total other comprehensive
 income for the year                        -           1,268        (6,608)

----------------------------------------------------------------------------
Total comprehensive income for
 the year                                   -           1,268        (6,608)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Balance at December 31, 2012        $  99,283       $   1,450     $     171
----------------------------------------------------------------------------
----------------------------------------------------------------------------



CONSTELLATION SOFTWARE INC.
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)



---------------------------------------------------------------------------
---------------------------------------------------------------------------
Year ended December 31, 2012

                                       Total
                                 accumulated
                                       other
                               comprehensive       Retained
                               income/(loss)       earnings          Total



Balance at January 1, 2012         $   6,961     $  150,036     $  256,280

Total comprehensive income for
 the year

Net income                                 -         92,632         92,632

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 assets during the year               13,968              -         13,968

Net unrealized foreign
 exchange adjustment gain
 (loss) on available-for-sale
 financial assets during the
 year                                     45              -             45

Amounts reclassified to profit
 during the year related to
 realized gains on available-
 for-sale financial assets           (21,735)             -        (21,735)

Foreign currency translation
 differences from foreign
 operations                            1,164              -          1,164

Current tax recovery (expense)           104              -            104

Deferred tax recovery
 (expense)                             1,114              -          1,114

---------------------------------------------------------------------------
Total other comprehensive
 income for the year                  (5,340)             -         (5,340)

---------------------------------------------------------------------------
Total comprehensive income for
 the year                             (5,340)        92,632         87,292
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity
 Dividends to shareholders of
  the Company                              -        (84,768)       (84,768)

---------------------------------------------------------------------------
Balance at December 31, 2012       $   1,621     $  157,900     $  258,804
---------------------------------------------------------------------------
---------------------------------------------------------------------------


CONSTELLATION SOFTWARE INC.
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)



----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                 Year ended December 31,
                                                        2013           2012
----------------------------------------------------------------------------

Cash flows from operating activities:
  Net income                                     $    93,135    $    92,632
  Adjustments for:
    Depreciation                                       9,944          7,643
    Amortization of intangible assets                119,144         85,142
    Equity in net (income) loss of equity
     investees                                          (780)           839
    Finance income                                    (1,041)       (23,178)
    Finance costs                                      7,124          4,001
    Bargain purchase gain                             (8,111)             -
    Income tax expense                                25,115         18,050
    Foreign exchange loss (gain)                        (768)           822
  Change in non-cash operating working capital
   exclusive of effects of business
   combinations                                          519        (17,390)
  Income taxes paid                                  (23,988)       (23,770)
  --------------------------------------------------------------------------
  Net cash flows from operating activities           220,293        144,791

Cash flows from (used in) financing
 activities:
  Interest paid                                       (3,428)        (1,761)
  Increase (decrease) in other non current
   liabilities                                             -           (973)
  Increase (decrease) in bank indebtedness,
   net                                               432,645         41,052
  Credit facility transaction costs                     (343)        (2,077)
  Dividends paid                                     (84,768)       (63,576)
  --------------------------------------------------------------------------
  Net cash flows from (used in) in financing
   activities                                        344,106        (27,335)

Cash flows from (used in) investing
 activities:
  Acquisition of businesses, net of cash
   acquired                                         (501,095)      (121,154)
  Post-acquisition settlement payments, net of
   receipts                                          (21,771)       (17,445)
  Purchases of available-for-sale financial
   assets                                                  -           (211)
  Proceeds from sale of available-for-sale
   equity securities                                       -         34,977
  Proceeds from sale of intangible assets                  -            101
  Interest and dividends received                        348              5
  Proceeds from sale of assets                         5,690              -
  Property and equipment purchased                   (11,100)        (6,100)
  --------------------------------------------------------------------------
  Net cash flows used in investing activities       (527,928)      (109,827)

Effect of foreign currency on cash and cash
 equivalents                                             183            192
----------------------------------------------------------------------------

Increase (decrease) in cash and cash
 equivalents                                          36,654          7,821

Cash, beginning of year                               41,313         33,492

----------------------------------------------------------------------------
Cash, end of year                                $    77,967    $    41,313
----------------------------------------------------------------------------
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