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TORONTO, ONTARIO -- (Marketwired) -- 10/30/14 -- Constellation Software Inc. (TSX: CSU) ("Constellation" or the "Company") today announced its financial results for the third quarter ended September 30, 2014 and declared a $1.00 per share dividend payable on January 5, 2015 to all common shareholders of record at close of business on December 17, 2014. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). 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 Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2014 and the accompanying notes, our Management's Discussion and Analysis for the three and nine months ended September 30, 2014, our 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.

Q3 2014 Headlines:

--  Revenue grew 33% (4% organically) to $419 million compared to $316
    million in Q3 2013.
--  Adjusted EBITA increased $42 million or 73% to $100 million as compared
    to $58 million in Q3 2013. Adjusted EBITA was positively impacted by the
    following items; $4 million settlement payment received and recorded as
    professional services revenue with no offsetting expense, $3 million
    credit relating to US benefits claims, $2 million dollar reversal of
    vacation accruals, $1 million recovery of bad debt, and $4 million of
    R&D tax credits relating to prior periods. Similar adjustments were not
    recorded in 2013.
--  Adjusted Net Income increased 28% to $69 million ($3.27 on a diluted per
    share basis) from $54 million ($2.55 on a diluted per share basis) in Q3
    2013. Adjusted net income was positively impacted by the same Adjusted
    EBITA items listed above on an after tax basis.
--  Net income increased 44% to $32 million ($1.51 on a diluted per share
    basis) from $22 million ($1.05 on a diluted per share basis) in Q3 2013.
    Net income was impacted by the same Adjusted EBITA items listed above on
    an after tax basis.
--  Four acquisitions were completed for aggregate cash consideration of $19
    million (which includes acquired cash). Deferred payments associated
    with these acquisitions have an estimated value of $8 million.
--  Cash flows from operations for the third quarter of 2014 were $101
    million, an increase of 15%, or $13 million, compared to $88 million for
    the comparable period in 2013.
--  The amount drawn on the Company's credit facilities decreased to $367
    million from $447 million in Q2 2014.
--  R&D tax credits in the amount of $13 million are expected to be utilized
    to offset taxes payable on taxable income for the nine months ended
    September 30, 2014. Current tax expense however reflects gross taxes
    before the application of R&D tax credits.

Third quarter 2014 revenue was $419 million, an increase of 33%, or $103 million, compared to $316 million for the comparable period in 2013. For the first nine months of 2014 total revenues were $1,230 million, an increase of 41%, or $359 million, compared to $871 million for the comparable period in 2013. The increase for both the three and nine month periods ended September 30, 2014 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 4% and 5%, respectively.

Adjusted EBITA for the third quarter of 2014 was $100 million, a 73% increase compared to the prior year's third quarter Adjusted EBITA of $58 million. Third quarter 2014 Adjusted EBITA per share on a diluted basis increased 73% to $4.73, compared to $2.74 for the same period last year. Adjusted EBITA for the nine month period ended September 30, 2014 was $244 million, a 55% increase over last year's Adjusted EBITA of $158 million for the same period. Adjusted EBITA per share on a diluted basis for the nine month period ended September 30, 2014 increased 55% to $11.52, compared to $7.44 for the same period last year. Adjusted EBITA for the three and nine months ended September 30, 2014 was positively impacted by the items listed above and similar items were not recorded in 2013.

Adjusted Net Income for the third quarter of 2014 was $69 million, compared to the prior year's third quarter Adjusted Net Income of $54 million, a 28% increase. Third quarter 2014 Adjusted Net Income per share on a diluted basis increased 28% to $3.27 compared to $2.55 for the prior year's third quarter. Adjusted Net Income for the nine month period ended September 30, 2014 was $188 million, an increase of 36% over last year's Adjusted Net Income of $138 million. Adjusted Net Income per share on a diluted basis for the nine month period ended September 30, 2014 increased 36% to $8.86, compared to $6.49 for the same period in 2013. Adjusted net income was positively impacted by the same items as Adjusted EBITA listed above on an after tax basis.

Net income for the third quarter 2014 was $32 million compared to the prior year's third quarter net income of $22 million. On a diluted per share basis, this translates into net income per share of $1.51 for the third quarter of 2014 compared to $1.05 for the same period of 2013. Net income for the nine month period ended September 30, 2014 was $64 million, an increase of 26% over net income of $51 million for the same period in 2013. Net income per share on a diluted basis for the nine month period ended September 30, 2014 increased 26% to $3.01, compared to $2.39 for the same period in 2013. Net income was positively impacted by the same items as Adjusted EBITA listed above on an after tax basis.

Cash flows from operations for the third quarter of 2014 were $101 million, an increase of 15%, or $13 million, compared to $88 million for the comparable period in 2013. For the first nine months of 2014 cash flows from operations were $245 million, an increase of 75%, or $105 million, compared to $139 million for the comparable period in 2013. The increase for both the three and nine month periods compared to the same periods in the prior year is mainly attributable to growth from acquisitions.

The following table displays our revenue by reportable segment and the percentage change for the three and nine months ended September 30, 2014 compared to the same periods in 2013:

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

                 Three months                     Nine months
                        ended    Period-Over- ended September   Period-Over-
                September 30,   Period Change             30,  Period Change
              ------------------------------- ------------------------------
                 2014   2013       $       %     2014   2013       $      %
               ------ ------  ------  ------   ------ ------  ------ ------
                  ($M, except percentages)       ($M, except percentages)
Public Sector
Licenses         18.2   17.0     1.2      7%     55.4   44.9    10.5    23%
Professional
 services        82.9   48.2    34.7     72%    239.6  142.4    97.2    68%
Hardware and
 other           27.5   30.9    (3.5)   -11%     85.9   78.1     7.7    10%
Maintenance
 and other
 recurring      166.3  116.0    50.3     43%    485.4  313.3   172.1    55%
              ------------------------------- ------------------------------
                294.8  212.2    82.7     39%    866.3  578.7   287.6    50%
              ------------------------------- ------------------------------

Private Sector
Licenses         10.2    9.8     0.4      4%     29.8   26.7     3.2    12%
Professional
 services        16.6   14.5     2.1     14%     51.1   42.4     8.6    20%
Hardware and
 other            5.5    4.0     1.5     37%     15.9   12.1     3.8    32%
Maintenance
 and other
 recurring       91.7   75.3    16.3     22%    266.4  210.5    55.9    27%
              ------------------------------- ------------------------------
                124.0  103.7    20.2     20%    363.3  291.8    71.5    25%
              ------------------------------- ------------------------------

Comparative figures have been reclassified to conform to the current year's presentation.

Public Sector

For the quarter ended September 30, 2014, total revenue in the public sector reportable segment increased by 39%, or $83 million to $295 million, compared to $212 million for the quarter ended September 30, 2013. For the nine months ended September 30, 2014, total revenue increased by 50%, or $288 million to $866 million, compared to $579 million for the comparable period in 2013. Revenue growth from acquired businesses contributed approximately $75 million to our Q3 2014 revenues and $259 million to our nine months ended September 30, 2014 revenues compared to the same periods in 2013, as we completed 26 acquisitions since the beginning of 2013. Organic revenue growth was 4% in Q3 2014 and 5% for the nine months ended September 30, 2014 compared to the same periods in 2013.

Private Sector

For the quarter ended September 30, 2014, total revenue in the private sector reportable segment increased 20%, or $20 million to $124 million, compared to $104 million for the quarter ended September 30, 2013. For the nine months ended September 30, 2014 total revenue increased by 25%, or $72 million to $363 million, compared to $292 million for the comparable period in 2013. Revenue growth from acquired businesses contributed approximately $17 million to our Q3 2014 revenues and $57 million to our nine months ended September 30, 2014 revenues compared to the same periods in 2013, as we completed 19 acquisitions since the beginning of 2013. Revenues increased organically by 3% in Q3 2014 and 5% for the nine months ended September 30, 2014 compared to the same periods in 2013.

Conference Call and Webcast

Management will host a conference call at 9:00 a.m. (ET) on Monday, November 3, 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 November 14, 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 and other income, finance costs, income taxes, share 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, but has determined that Adjusted EBITA is a more meaningful measure going forward. 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 September   Nine months ended
                                                    30,       September 30,
                                      -----------------   -----------------
                                         2014     2013       2014     2013
                                      -------  -------    -------  -------
                                         ($M, except         ($M, except
                                         percentages)        percentages)

Total revenue                           418.8    315.9    1,229.6    870.5
                                      -----------------   -----------------
                                      -----------------   -----------------

Net income                               31.9     22.2       63.8     50.7
Adjusted for:
Income tax expense (recovery)            15.7      2.7       34.2     13.1
Foreign exchange (gain) loss              6.4     (1.6)       8.7      0.5
Equity in net (income) loss of equity
 investees                               (0.2)    (0.3)      (0.7)    (0.7)
Finance and other income                 (0.9)    (0.4)      (2.7)    (0.9)
Finance costs                             4.1      1.7       10.9      5.0
Amortization of intangible assets        43.2     33.8      130.0     90.0

Adjusted EBITA                          100.2     58.1      244.2    157.7
Adjusted EBITA margin                      24%      18%        20%      18%
                                     ------------------- -------------------

The following table reconciles Adjusted net income to net income:

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

                                           Three months
                                        ended September   Nine months ended
                                                    30,       September 30,
                                      -----------------   -----------------
                                         2014     2013       2014     2013
                                      -------  -------    -------  -------
                                         ($M, except         ($M, except
                                         percentages)        percentages)

Total revenue                           418.8    315.9    1,229.6    870.5
                                      -----------------   -----------------
                                      -----------------   -----------------

Net income                               31.9     22.2       63.8     50.7
Adjusted for:
Amortization of intangible assets        43.2     33.8      130.0     90.0
Deferred income tax expense
 (recovery)                              (5.8)    (1.9)      (6.1)    (3.1)

Adjusted net income                      69.3     54.1      187.7    137.6
Adjusted net income margin                 17%      17%        15%      16%
                                     ------------------- -------------------

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation acquires, manages and builds vertical market software businesses.

SOURCE: CONSTELLATION SOFTWARE INC.

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

(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                               September 30,    December 31,
                                                        2014            2013
----------------------------------------------------------------------------
Assets

Current assets:
 Cash                                         $       81,601  $       77,967
 Equity security available-for-sale                        -             780
 Accounts receivable                                 184,434         191,446
 Work in progress                                     62,925          55,728
 Inventories                                          28,192          21,145
 Other assets                                         59,938          65,115
 ---------------------------------------------------------------------------
                                                     417,090         412,181

Non-current assets:
 Property and equipment                               35,267          36,017
 Deferred income taxes                                65,970          71,673
 Other assets                                         39,011          36,171
 Intangible assets                                   879,067         981,662
 ---------------------------------------------------------------------------
                                                   1,019,315       1,125,523

----------------------------------------------------------------------------
Total assets                                  $    1,436,405  $    1,537,704
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
 Bank indebtedness                            $      202,303  $      477,170
 Accounts payable and accrued liabilities            235,868         260,585
 Dividends payable                                    20,819          21,031
 Deferred revenue                                    361,729         306,213
 Provisions                                            9,143          11,887
 Acquisition holdback payments                        18,208          26,496
 Income taxes payable                                 21,106           5,474
 ---------------------------------------------------------------------------
                                                     869,176       1,108,856

Non-current liabilities:
 Deferred income taxes                               104,759         112,780
 Bank indebtedness                                   157,251               -
 Acquisition holdback payments                         7,117           4,203
 Other liabilities                                    47,174          45,866
 ---------------------------------------------------------------------------
                                                     316,301         162,849

----------------------------------------------------------------------------
Total liabilities                                  1,185,477       1,271,705
----------------------------------------------------------------------------


Shareholders' equity:
 Capital stock                                        99,283          99,283
 Accumulated other comprehensive income              (10,066)            449
 Retained earnings                                   161,711         166,267
 ---------------------------------------------------------------------------
                                                     250,928         265,999
----------------------------------------------------------------------------
Total liabilities and shareholders' equity    $    1,436,405  $    1,537,704
----------------------------------------------------------------------------

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income
(In thousands of U.S. dollars, except per share amounts)
Three and nine months ended September 30, 2014 and 2013
(Unaudited)
----------------------------------------------------------------------------
                               Three months ended         Nine months ended
                                    September 30,             September 30,
                                2014         2013         2014         2013
----------------------------------------------------------------------------


Revenue
 License                 $    28,362  $    26,836  $    85,200  $    71,561
 Professional services        99,553       62,777      290,713      184,827
 Hardware and other           32,950       34,953      101,798       90,238
 Maintenance and other
  recurring                  257,942      191,311      751,876      523,871
----------------------------------------------------------------------------
                             418,807      315,877    1,229,587      870,497

Expenses
 Staff                       213,195      167,493      663,293      473,840
 Hardware                     18,243       20,800       56,737       53,057
 Third party license,
  maintenance and
  professional services       38,979       27,579      112,494       71,848
 Occupancy                    10,237        7,895       30,401       21,169
 Travel                       12,263       11,154       36,213       31,785
 Telecommunications            4,021        3,831       12,118       10,258
 Supplies                      8,260        5,782       26,141       15,405
 Professional fees             6,293        3,999       16,543       11,220
 Other, net                    3,051        6,639       19,255       16,908
 Depreciation                  4,054        2,624       12,235        7,258
 Amortization of
  intangible assets           43,184       33,773      129,971       90,034
----------------------------------------------------------------------------
                             361,780      291,569    1,115,401      802,782


Foreign exchange loss
 (gain)                        6,359       (1,636)       8,708          500
Share in net (income)
 loss of equity investee        (150)        (300)        (685)        (657)
Finance and other income        (853)        (375)      (2,707)        (875)
Finance costs                  4,059        1,705       10,901        4,972
----------------------------------------------------------------------------
                               9,415         (606)      16,217        3,940

Income before income
 taxes                        47,612       24,914       97,969       63,775

Current income tax
 expense (recovery)           21,452        4,563       40,246       16,230
Deferred income tax
 expense (recovery)           (5,765)      (1,896)      (6,056)      (3,133)
----------------------------------------------------------------------------
Income tax expense
 (recovery)                   15,687        2,667       34,190       13,097

----------------------------------------------------------------------------
Net income                    31,925       22,247       63,779       50,678
----------------------------------------------------------------------------

Earnings per share
 Basic and diluted       $      1.51  $      1.05  $      3.01  $      2.39

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

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts)
Three and nine months ended September 30, 2014 and 2013
(Unaudited)
----------------------------------------------------------------------------
                               Three months ended         Nine months ended
                                    September 30,             September 30,
                                2014         2013         2014         2013
----------------------------------------------------------------------------

Net income               $    31,925  $    22,247  $    63,779  $    50,678

Items that are or may be
 reclassified
 subsequently to net
 income:

 Net change in fair
  value of available-
  for-sale financial
  asset during the
  period                           -         (115)          93          157

 Amounts reclassified to
  profit during the
  period related to
  realized gains on
  available-for-sale
  financial asset                  -            -         (574)           -

 Foreign currency
  translation
  differences from
  foreign operations         (11,695)       2,083      (10,057)      (1,350)

 Current income tax
  recovery (expense)               -           92           35           13

 Deferred income tax
  recovery (expense)               -            -          (12)           -

----------------------------------------------------------------------------
Other comprehensive
 (loss) income for the
 period, net of income
 tax                         (11,695)       2,060      (10,515)      (1,180)

----------------------------------------------------------------------------
Total comprehensive
 income for the period   $    20,230  $    24,307  $    53,264  $    49,498
----------------------------------------------------------------------------

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

(Unaudited)
----------------------------------------------------------------------------
Nine months ended September
 30, 2014
                                                          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, 2014    $       99,283 $          (32) $          481

Total comprehensive income
 for the period

Net income                                 -              -               -

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 asset during the period                   -              -              93

Amounts reclassified to
 profit during the period
 related to realized gains on
 available-for-sale financial
 assets                                    -              -            (574)

Foreign currency translation
 differences from foreign
 operations                                -        (10,057)              -

Current tax recovery
 (expense)                                 -             35               -

Deferred tax recovery
 (expense)                                 -            (12)              -

----------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the period              -        (10,034)           (481)

----------------------------------------------------------------------------
Total comprehensive income
 (loss) for the period                     -        (10,034)           (481)
----------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity
 Dividends to shareholders of
  the Company                              -              -               -
 Fair value of rights offered
  to shareholders of the
  Company

----------------------------------------------------------------------------
Balance at September 30, 2014 $       99,283 $      (10,066) $            -
----------------------------------------------------------------------------


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

(Unaudited)
----------------------------------------------------------------------------
Nine months ended September
 30, 2014
                                          Total
                                    accumulated
                                          other
                                  comprehensive      Retained
                                  income/(loss)      earnings         Total




Balance at January 1, 2014    $             449  $    166,267  $    265,999

Total comprehensive income
 for the period

Net income                                    -        63,779        63,779

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 asset during the period                     93             -            93

Amounts reclassified to
 profit during the period
 related to realized gains on
 available-for-sale financial
 assets                                    (574)            -          (574)

Foreign currency translation
 differences from foreign
 operations                             (10,057)            -       (10,057)

Current tax recovery
 (expense)                                   35             -            35

Deferred tax recovery
 (expense)                                  (12)            -           (12)

----------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the period           (10,515)            -       (10,515)

----------------------------------------------------------------------------
Total comprehensive income
 (loss) for the period                  (10,515)       63,779        53,264
----------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity
 Dividends to shareholders of
  the Company                                 -       (63,576)      (63,576)
 Fair value of rights offered
  to shareholders of the
  Company                                              (4,759)       (4,759)

----------------------------------------------------------------------------
Balance at September 30, 2014 $         (10,066) $    161,711  $    250,928
----------------------------------------------------------------------------

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

(Unaudited)
----------------------------------------------------------------------------
Nine months ended September
 30, 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 period

Net income                                 -              -               -

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 assets during the period                  -              -             157

Amounts reclassified to
 profit during the period
 related to realized gains on
 available-for-sale financial
 assets                                    -              -               -

Foreign currency translation
 differences from foreign
 operations                                -         (1,350)              -

Current tax recovery
 (expense)                                 -             13               -

Deferred tax recovery
 (expense)                                 -              -

----------------------------------------------------------------------------
Total other comprehensive
 income for the period                     -         (1,337)            157

----------------------------------------------------------------------------
Total comprehensive income
 for the period                            -         (1,337)            157
----------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Balance at September 30, 2013 $       99,283 $          113  $          328
----------------------------------------------------------------------------


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

(Unaudited)
----------------------------------------------------------------------------
Nine months ended September
 30, 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 period

Net income                                    -        50,678        50,678

Other comprehensive income
 (loss)

Net change in fair value of
 available-for-sale financial
 assets during the period                   157             -           157

Amounts reclassified to
 profit during the period
 related to realized gains on
 available-for-sale financial
 assets                                       -             -             -

Foreign currency translation
 differences from foreign
 operations                              (1,350)            -        (1,350)

Current tax recovery
 (expense)                                   13             -            13

Deferred tax recovery
 (expense)                                    -             -             -

----------------------------------------------------------------------------
Total other comprehensive
 income for the period                   (1,180)            -        (1,180)

----------------------------------------------------------------------------
Total comprehensive income
 for the period                          (1,180)       50,678        49,498
----------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity
 Dividends to shareholders of
  the Company                                 -       (63,576)      (63,576)

----------------------------------------------------------------------------
Balance at September 30, 2013 $             441  $    145,002  $    244,726
----------------------------------------------------------------------------

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of U.S. dollars)
Three and nine months ended September 30, 2014 and 2013
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Three months ended         Nine months ended
                                    September 30,             September 30,
                                2014         2013         2014         2013
----------------------------------------------------------------------------

Cash flows from
 operating activities:
 Net income              $    31,925  $    22,247  $    63,779  $    50,678
 Adjustments for:
  Depreciation                 4,054        2,624       12,235        7,258
  Amortization of
   intangible assets          43,184       33,773      129,971       90,034
  Share in net (income)
   loss of equity
   investee                     (150)        (300)        (685)        (657)
  Finance and other
   income                       (853)        (375)      (2,707)        (875)
  Finance costs                4,059        1,705       10,901        4,972
  Income tax expense          15,687        2,667       34,190       13,097
  Foreign exchange loss
   (gain)                      6,359       (1,636)       8,708          500
 Change in non-cash
  operating working
  capital exclusive of
  effects of business
  combinations                (1,305)      32,317        7,785       (5,932)
 Income taxes paid            (1,909)      (5,440)     (19,539)     (19,609)
 ---------------------------------------------------------------------------
 Net cash flows from
  operating activities       101,051       87,582      244,638      139,466

Cash flows from (used
 in) financing
 activities:
 Interest paid                (3,185)      (1,053)      (8,198)      (2,334)
 Increase (decrease) in
  other non current
  liabilities                      -         (191)           -          (70)
 Increase (decrease) in
  bank indebtedness, net     (67,300)     (36,949)     (96,782)     102,302
 Credit facility
  transaction costs           (1,425)           -       (6,864)           -
 Dividends paid              (21,192)     (21,192)     (63,576)     (63,576)
 ---------------------------------------------------------------------------
 Net cash flows from
  (used in) in financing
  activities                 (93,102)     (59,385)    (175,420)      36,322

Cash flows from (used
 in) investing
 activities:
 Acquisition of
  businesses, net of
  cash acquired              (16,399)      (7,073)     (38,296)    (152,124)
 Post-acquisition
  settlement payments,
  net of receipts             (6,528)      (6,008)     (14,545)     (16,693)
 Proceeds from sale of
  available-for-sale
  equity securities                -            -          873            -
 Interest and dividends
  received                        40          348          272          348
 Proceeds from sale of
  assets                         153         (105)         153        5,439
 Property and equipment
  purchased                   (1,020)      (3,181)     (10,024)      (8,478)
 ---------------------------------------------------------------------------
 Net cash flows used in
  investing activities       (23,754)     (16,019)     (61,567)    (171,508)

Effect of foreign
 currency on cash and
 cash equivalents             (3,870)         420       (4,017)        (631)
----------------------------------------------------------------------------

Increase (decrease) in
 cash and cash
 equivalents                 (19,675)      12,598        3,634        3,649

Cash, beginning of
 period                      101,276       32,364       77,967       41,313

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Cash, end of period      $    81,601  $    44,962  $    81,601  $    44,962
----------------------------------------------------------------------------