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TORONTO, ONTARIO -- (Marketwire) -- 10/31/12 -- Constellation Software Inc. (TSX: CSU) ("Constellation" or the "Company") today announced its financial results for the three and nine months ended September 30, 2012 and declared a $1.00 per share dividend payable on January 4, 2013 to all common shareholders of record at the close of business on December 17, 2012. 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, 2012 and the accompanying notes, and with our Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ("IFRS") and our Management's Discussion and Analysis for the year ended December 31, 2011, 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 2012 Highlights:

--  Revenue grew 12% to $226 million compared to $202 million in Q3 2011.
    Organic revenue growth was negative 2% in Q3 2012 compared to 11% in Q3
    2011.
--  Adjusted EBITDA grew 9% to $49 million compared to $44 million in Q3
    2011.
--  Adjusted net income increased $2 million or 6% to $42 million ($1.99 on
    a diluted per share basis) from $40 million ($1.87 on a diluted per
    share basis) in Q3 2011.
--  Seven acquisitions were completed in the quarter for aggregate cash
    consideration of $24 million (which includes acquired cash and acquired
    bank indebtedness) plus cash holdbacks of $9 million and the estimated
    value of contingent consideration of $6 million.
--  Cash flows from operating activities declined to $46 million ($2.15 on a
    diluted per share basis) compared to $54 million ($2.53 on a diluted per
    share basis) in Q3 2011.
--  Subsequent to September 30, 2012, the Company completed three
    acquisitions for aggregate cash consideration of $4 million plus
    holdbacks of $0.4 million.

Third quarter 2012 revenue was $226 million, an increase of 12%, or $24 million, compared to $202 million for the comparable period in 2011. For the first nine months of 2012, total revenue was $630 million, an increase of 10% or $55 million, compared to $575 million for the comparable period in 2011.

Net income for the third quarter 2012 was $21 million compared to the prior year's third quarter net income of $19 million. On a diluted per share basis, this represents net income per share of $0.99 for the third quarter of 2012. This compares favourably to $0.91 for the same period in 2011. Net income for the first nine months of 2012 was $53 million compared to last year's net income of $138 million. On a diluted per share basis, this represents net income per share of $2.48 for the first nine months of 2012. This compares unfavourably to $6.50 for the same period in 2011, which included a significant deferred income tax recovery that was recognized in the prior period. Excluding the income tax recovery, net income remained unchanged at $20 million in the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011 and increased by 10% to $48 million from $44 million in the nine months ended September 30, 2012.

Adjusted EBITDA for the third quarter 2012 was $49 million, a 9% increase compared to the prior year's third quarter Adjusted EBITDA of $44 million. Third quarter 2012 Adjusted EBITDA per share on a diluted basis increased 9% to $2.30, compared to $2.10 for the same period last year. Adjusted EBITDA for the nine month period ended September 30, 2012 was $132 million, a 9% increase over Adjusted EBITDA of $121 million for the same period in the prior year. Adjusted EBITDA per share on a diluted basis for the nine month period ended September 30, 2012 increased 9% to $6.21, compared to $5.72 for the same period in prior year.

Adjusted net income for the third quarter of 2012 was $42 million, compared to the prior year's third quarter Adjusted net income of $40 million, a 6% increase. Third quarter 2012 Adjusted net income per share on a diluted basis increased 6% to $1.99 compared to $1.87 for the prior year's third quarter. Adjusted net income for the nine month period ended September 30, 2012 was $110 million, an increase of 10% over Adjusted net income of $100 million for the same period in the prior year. Adjusted net income per share on a diluted basis for the nine month period ended September 30, 2012 increased 10% to $5.19, compared to $4.73 for the same period in 2011.

Net indebtedness (bank indebtedness less cash) of $3 million, increased by $36 million for the nine months ended September 30, 2012 primarily due to acquisitions. For the nine month period ended September 30, 2012, twenty-two acquisitions were completed and combined with post-acquisition settlement payments resulted in cash outflows of $77 million. In the prior year, sixteen acquisitions were completed for net cash consideration, when combined with post-acquisition settlement payments, of $36 million.

The following table displays our revenue by reportable segment and the percentage change for the three and nine months ended September 30, 2012 compared to the same period in 2011:

                              --------------------------------------------
                                Three months ended    Period-Over-Period
                                   September 30,           Change
                              --------------------------------------------
                                     2012       2011          $         %
                                       ($000, except percentages)
Public Sector
Licenses                           12,656     10,927      1,729        16%
Professional services              39,689     36,706      2,983         8%
Hardware and other                 22,407     29,035     (6,628)      -23%
Maintenance and other
 recurring                         85,831     73,174     12,657        17%
                              --------------------------------------------
                                  160,583    149,842     10,741         7%
                              --------------------------------------------
                              --------------------------------------------

Private Sector
Licenses                            6,134      4,713      1,421        30%
Professional services              10,805      9,018      1,787        20%
Hardware and other                  3,302      3,019        283         9%
Maintenance and other
 recurring                         45,156     35,661      9,495        27%
                              --------------------------------------------
                                   65,397     52,411     12,986        25%
                              --------------------------------------------

                                 -------------------------------------------
                                   Nine months ended    Period-Over-Period
                                     September 30,           Change
                                 -------------------------------------------
                                        2012      2011          $         %
                                         ($000, except percentages)
Public Sector
Licenses                              33,310    32,237      1,073         3%
Professional services                107,480   109,200     (1,720)       -2%
Hardware and other                    63,452    74,311    (10,859)      -15%
Maintenance and other
 recurring                           242,295   211,284     31,011        15%
                                 -------------------------------------------
                                     446,537   427,032     19,505         5%
                                 -------------------------------------------
                                 -------------------------------------------

Private Sector
Licenses                              16,414    13,927      2,487        18%
Professional services                 31,076    25,929      5,147        20%
Hardware and other                     9,963     8,847      1,116        13%
Maintenance and other
 recurring                           126,237    99,249     26,988        27%
                                 -------------------------------------------
                                     183,690   147,952     35,738        24%
                                 -------------------------------------------

Public Sector

For the quarter ended September 30, 2012, total revenue in the public sector reportable segment increased by 7%, or $11 million to $161 million, compared to $150 million for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, total revenue increased by 5%, or $20 million to $447 million, compared to $427 million for the comparable period in 2011. Revenue growth from acquired businesses contributed approximately $17 million to our Q3 2012 revenue and $33 million to our nine months ended September 30, 2012 revenue compared to the same periods in 2011. We completed 21 acquisitions in this segment since the beginning of 2011, 10 of which were acquired in fiscal year 2011. Organic revenue decreased by 4% in Q3 2012 and decreased by 3% in the nine months ended September 30, 2012 compared to the same periods in 2011. Excluding Public Transit Solutions ("PTS"), where revenue was expected to decrease, organic revenue remained unchanged in Q3 2012 and decreased by 1% in the nine months ended September 30, 2012 respectively, compared to the same periods in 2011.

Constellation acquired the Public Transit Solutions business ("PTS") from Continental Automotive AG ("Continental") on November 2, 2009. Given the substantial amount of non-recurring revenue historically earned by PTS, gross revenue from PTS has fluctuated significantly in the past and will continue to do so in the future.

Private Sector

For the quarter ended September 30, 2012, total revenue in the private sector reportable segment increased 25%, or $13 million to $65 million, compared to $52 million for the quarter ended September 30, 2011. For the nine months ended September 30, 2012 total revenue increased by 24%, or $36 million to $184 million, compared to $148 million for the comparable period in 2011. Revenue growth from acquired businesses contributed approximately $10 million to our Q3 2012 revenue and $28 million to our nine months ended September 30, 2012 revenue compared to the same periods in 2011. We completed 23 acquisitions in this segment since the beginning of 2011, 12 of which were acquired in fiscal year 2011. Revenue increased organically by 5% in both Q3 2012 and in the nine months ended September 30, 2012 compared to the same periods in 2011.

Conference Call and Webcast

Management will host a conference call at 9:00 a.m. (ET) on Friday, November 2, 2012 to answer questions regarding the results. The teleconference numbers are 416-340-8527 or 877-440-9795. 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 17, 2012. To access the replay, please dial 905-694-9451 or 800-408-3053 followed by the passcode 2722800.

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 EBITDA" refers to net income before adjusting for finance income, finance costs, income taxes, equity in net loss of equity investees, impairment of non-financial assets, depreciation, amortization, and foreign exchange loss (gain). The Company believes that Adjusted EBITDA 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 asset depreciation and amortization and the other items listed above. "Adjusted EBITDA margin" refers to the percentage that Adjusted EBITDA for any period represents as a portion of total revenue for that period.

"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 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 EBITDA and Adjusted net income are not recognized measures under IFRS and, accordingly, shareholders are cautioned that Adjusted EBITDA 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 EBITDA and Adjusted net income may differ from other issuers and, accordingly, Adjusted EBITDA and Adjusted net income may not be comparable to similar measures presented by other issuers. See "Results of Operations - Adjusted EBITDA" and "- Adjusted net income" for a reconciliation of Adjusted EBITDA and Adjusted net income to net income.

The following table reconciles Adjusted EBITDA to net income:

                           -----------------------  ------------------------
                              Three months ended         Nine months ended
(Unaudited)                      September 30,             September 30,
                           -----------------------  ------------------------
                                  2012       2011          2012        2011
                                ($000, except             ($000, except
                                percentages)              percentages)

Total revenue               $  225,980 $  202,253     $ 630,227   $ 574,984
                           -----------------------  ------------------------
                           -----------------------  ------------------------

Net income                      21,065     19,305        52,581     137,779
Adjusted for:
Income tax expense
 (recovery)                      4,833      5,758        11,810     (80,288)
Foreign exchange (gain)
 loss                             (321)      (905)         (330)      3,028
Equity in net (income) loss
 of equity investees              (216)         0           875           0
Finance income                  (2,066)    (2,795)       (3,529)     (6,167)
Finance costs                    1,131      1,462         2,923       4,589
Impairment of non-financial
 assets                              0        518             0         518
Amortization of intangible
 assets                         22,099     19,135        61,643      55,733
Depreciation                     2,112      1,957         5,633       6,039

Adjusted EBITDA                 48,637     44,435       131,606     121,231
Adjusted EBITDA margin              22%        22%           21%         21%
                           -----------------------  ------------------------

The following table reconciles Adjusted net income to net income:

                         ------------------------   ------------------------
                            Three months ended         Nine months ended
(Unaudited)                   September 30,              September 30,
                         ------------------------   ------------------------
                                2012        2011          2012         2011
                                   ($000, except              ($000, except
                                    percentages)               percentages)

Total revenue              $ 225,980   $ 202,253     $ 630,227  $   574,984
                         ------------------------   ------------------------
                         ------------------------   ------------------------

Net income                    21,065      19,305        52,581      137,779
Adjusted for:
Amortization of
 intangible assets            22,099      19,135        61,643       55,733
Impairment of non-
 financial assets                  0         518             0          518
Deferred income tax
 (recovery) expense           (1,085)        759        (4,277)     (93,764)

Adjusted net income           42,079      39,717       109,947      100,266
Adjusted net income
 margin                           19%         20%           17%          17%
                         ------------------------   ------------------------

The following tables provide supplemental statement of operations and cash
flow information for PTS:

Supplemental financial information


                               For the three months ended September 30, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                 Constellation
                                 Software Inc.
(Unaudited)                    (excluding PTS)           PTS   Consolidated
                             -----------------------------------------------

Revenue                        $       193,251    $   32,729   $    225,980
Adjusted EBITDA                         42,795         5,842         48,637
  EBITDA as % Total Revenue                 22%           18%            22%

----------------------------------------------------------------------------
Net Income                     $        16,509    $    4,556   $     21,065
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Cash flows from operating
 activities:
  Net income                   $        16,509    $    4,556   $     21,065
  Adjustments to reconcile
   net income to net cash
   flows from operations,
   including taxes paid:
                                        18,854         1,122         19,976
  Change in non-cash
   operating working capital
                                         2,951         1,541          4,492

                             -----------------------------------------------
  Cash flows from operating
   activities                  $        38,314    $    7,219   $     45,533




                             For the nine months ended September 30, 2012
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                 Constellation
                                 Software Inc.
(Unaudited)                    (excluding PTS)           PTS  Consolidated
                             ----------------------------------------------

Revenue                         $      535,099    $   95,128   $   630,227
Adjusted EBITDA                        113,633        17,973       131,606
  EBITDA as % Total Revenue                 21%           19%           21%

---------------------------------------------------------------------------
Net Income                      $       37,894    $   14,687   $    52,581
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Cash flows from operating
 activities:
  Net income                    $       37,894    $   14,687   $    52,581
  Adjustments to reconcile
   net income to net cash
   flows from operations,
   including taxes paid:
                                        57,772         2,942        60,714
  Change in non-cash
   operating working capital
                                        (9,317)      (20,030)      (29,347)

                             ----------------------------------------------
  Cash flows from operating
   activities                   $       86,349    $   (2,401)  $    83,948


The following table reconciles Adjusted EBITDA to net income for PTS:


Adjusted EBITDA to net income reconciliation



                             For the three months ended September 30, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 Constellation
                                 Software Inc.
(Unaudited)                    (excluding PTS)           PTS   Consolidated
                            ------------------------------------------------


Total revenue                 $        193,251    $   32,729   $    225,980
                            ------------------------------------------------
                            ------------------------------------------------
Net income                              16,509         4,556         21,065
Adjusted for:
Income tax expense                       3,989           844          4,833
Other expenses (income)                 (1,739)          267         (1,472)
Amortization of intangible
 assets                                 22,099             -         22,099
Depreciation                             1,937           175          2,112

Adjusted EBITDA                         42,795         5,842         48,637
Adjusted EBITDA margin                      22%           18%            22%




                             For the nine months ended September 30, 2012
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                Constellation
                                Software Inc.
(Unaudited)                   (excluding PTS)           PTS  Consolidated
                            ----------------------------------------------


Total revenue                  $      535,099    $   95,128   $   630,227
                            ----------------------------------------------
                            ----------------------------------------------
Net income                             37,894        14,687        52,581
Adjusted for:
Income tax expense                      9,635         2,175        11,810
Other expenses (income)                  (678)          617           (61)
Amortization of intangible
 assets                                61,643             -        61,643
Depreciation                            5,139           494         5,633

Adjusted EBITDA                       113,633        17,973       131,606
Adjusted EBITDA margin                     21%           19%           21%

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation Software is an international provider of market leading software and services to a number of industries across both the public and private sectors. The Company acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the specific needs of its customers in those industries.

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,
                                                       2012             2011
----------------------------------------------------------------------------
Assets

Current assets:
  Cash                                      $        35,742    $      33,492
  Equity securities available-for-sale               26,145           21,222
  Accounts receivable                               120,163           96,259
  Work in progress                                   35,301           26,244
  Inventories                                        19,888           13,539
  Other assets                                       33,586           29,772
  --------------------------------------------------------------------------
                                                    270,825          220,528
Non-current assets:
  Property and equipment                             17,532           14,591
  Deferred income taxes                             105,271           99,659
  Other assets                                       36,712           28,005
  Intangible assets                                 330,032          267,792
  --------------------------------------------------------------------------
                                                    489,547          410,047
----------------------------------------------------------------------------
Total assets                                $       760,372    $     630,575
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
  Bank indebtedness                         $        39,226    $           -
  Accounts payable and accrued
   liabilities                                      123,516          114,952
  Dividends payable                                  20,970                -
  Deferred revenue                                  224,618          181,450
  Provisions                                          3,947            3,555
  Acquired contract liabilities                       2,412            4,750
  Acquisition holdback payments                      19,928           11,378
  Income taxes payable                                3,535            4,751
  --------------------------------------------------------------------------
                                                    438,152          320,836
Non-current liabilities:
  Deferred income taxes                              20,550           11,259
  Acquired contract liabilities                      24,858           28,051
  Acquisition holdback payments                       4,729            2,474
  Other liabilities                                  16,172           11,675
  --------------------------------------------------------------------------
                                                     66,309           53,459

----------------------------------------------------------------------------
Total liabilities                                   504,461          374,295
----------------------------------------------------------------------------


Shareholders' equity:
  Capital stock                                      99,283           99,283
  Accumulated other comprehensive income             17,587            6,961
  Retained earnings                                 139,041          150,036
----------------------------------------------------------------------------
                                                    255,911          256,280

----------------------------------------------------------------------------
Total liabilities and shareholders'
 equity                                     $       760,372    $     630,575
----------------------------------------------------------------------------


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

(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Three months ended         Nine months ended
                                    September 30,             September 30,
                                2012         2011         2012         2011
----------------------------------------------------------------------------
                                         (Recast)                  (Recast)

Revenue                   $  225,980   $  202,253   $  630,227   $  574,984

Expenses
  Staff                      120,197      103,085      339,517      299,691
  Hardware                    14,554       18,723       37,486       47,607
  Third party license,
   maintenance and
   professional services      15,134       13,320       44,095       37,932
  Occupancy                    5,450        4,948       15,114       14,251
  Travel                       8,595        7,221       24,607       20,679
  Telecommunications           2,792        2,554        7,842        7,435
  Supplies                     3,512        3,451       10,810       11,747
  Professional fees            3,979        2,068        8,046        6,788
  Other                        3,130        2,448       11,104        7,623
  Depreciation                 2,112        1,957        5,633        6,039
  Amortization of
   intangible assets          22,099       19,135       61,643       55,733
  --------------------------------------------------------------------------
                             201,554      178,910      565,897      515,525

Impairment of non-
 financial assets                  -          518            -          518
Foreign exchange (gain)
 loss                           (321)        (905)        (330)       3,028
Equity in net (income)
 loss of equity investees       (216)           -          875            -
Finance income                (2,066)      (2,795)      (3,529)      (6,167)
Finance costs                  1,131        1,462        2,923        4,589
----------------------------------------------------------------------------
                              (1,472)      (1,720)         (61)       1,968

Profit before income tax      25,898       25,063       64,391       57,491

Current income tax
 expense                       5,918        4,999       16,087       13,476
Deferred income tax
 (recovery) expense           (1,085)         759       (4,277)     (93,764)
----------------------------------------------------------------------------
Income tax expense
 (recovery)                    4,833        5,758       11,810      (80,288)

----------------------------------------------------------------------------
Net income                    21,065       19,305       52,581      137,779
----------------------------------------------------------------------------

Net change in fair value
  on available-for-sale
   financial assets
   during the period           8,907          913       13,821        4,478

Net unrealized foreign
 exchange gain (loss)
  on available-for-sale
   financial assets
   during the period              72         (308)          45          (90)

Amounts reclassified to
 profit during the period
  related to realized
   gains on available-
   for-sale financial
   assets                     (1,900)      (2,770)      (2,963)      (5,882)

Foreign currency
 translation differences
 from foreign operations       1,875       (2,015)       1,073       (1,212)

Current income tax
 recovery                         34           75           26           75

Deferred income tax
 recovery (expense)           (1,063)         430       (1,376)         408

----------------------------------------------------------------------------
Other comprehensive
 income (loss) for the
 period, net of income
 tax                           7,925       (3,675)      10,626       (2,223)

----------------------------------------------------------------------------
Total comprehensive
 income for the period    $   28,990   $   15,630   $   63,207   $  135,556
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings per share
  Basic and diluted       $     0.99   $     0.91   $     2.48   $     6.50

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





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

Nine months ended September 30, 2012
(Unaudited)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

                                    Capital       Accumulated other
                                      stock         comprehensive
                                                    income/(loss)
                                               Cumulative          Amounts
                                              translation       related to
                                                  account     gains/losses
                                                             on available-
                                                                  for-sale
                                                                 financial
                                                                    assets

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

Total comprehensive income
 for the period

Net income

Other comprehensive income
 (loss)

Net change in fair value
 on available-for-sale
  financial assets during
  the period                                                        13,821

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

Amounts reclassified to
 profit during the period
 related to realized gains
  on available-for-sale
  investments                                                       (2,963)

Foreign currency translation
 differences from foreign
 operations                                         1,073                -

Current tax expense                                    26                -

Deferred tax expense                                    -           (1,376)

---------------------------------------------------------------------------
Total other comprehensive
 income for the period                              1,099            9,527

---------------------------------------------------------------------------
Total comprehensive income
 for the period                                     1,099            9,527
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity

Dividends to owners of the
 Company

---------------------------------------------------------------------------
Balance at September 30,
 2012                          $     99,283  $      1,281    $      16,306
---------------------------------------------------------------------------
---------------------------------------------------------------------------

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

Nine months ended September 30, 2012
(Unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

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








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

Total comprehensive income
 for the period

Net income                                          52,581         52,581

Other comprehensive income
 (loss)

Net change in fair value
 on available-for-sale
  financial assets during
  the period                         13,821              -         13,821

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

Amounts reclassified to
 profit during the period
 related to realized gains
  on available-for-sale
  investments                        (2,963)             -         (2,963)

Foreign currency translation
 differences from foreign
 operations                           1,073              -          1,073

Current tax expense                      26              -             26

Deferred tax expense                 (1,376)             -         (1,376)

--------------------------------------------------------------------------
Total other comprehensive
 income for the period               10,626              -         10,626

--------------------------------------------------------------------------
Total comprehensive income
 for the period                      10,626         52,581         63,207
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity

Dividends to owners of the
 Company                                           (63,576)       (63,576)

--------------------------------------------------------------------------
Balance at September 30,
 2012                         $      17,587   $    139,041   $    255,911
--------------------------------------------------------------------------
--------------------------------------------------------------------------



Nine months ended September 30, 2011
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


                                    Capital        Accumulated other
                                      stock          comprehensive
                                                     income/(loss)

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

Balance at January 1, 2011     $     99,283  $        432     $       7,143

Total comprehensive income
 for the period

Net income

Other comprehensive income
 (loss)

Net change in fair value
 on available-for-sale
  financial assets during
  the period                                                          4,478

Net unrealized foreign
 exchange adjustment
 gain (loss) on available-
  for-sale financial assets
  during the period                                                     (90)

Amounts reclassified to
 profit during the period
 related to realized gains
  on available-for-sale
  investments                                                        (5,882)


Foreign currency translation
 differences from foreign
 operations                                        (1,212)                -

Current tax expense                                    75                 -

Deferred tax expense                                  124               284

----------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the
 period                                            (1,013)           (1,210)

----------------------------------------------------------------------------
Total comprehensive income
 (loss) for the period                             (1,013)           (1,210)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity

Dividends to owners of the
 Company

----------------------------------------------------------------------------
Balance at September 30,
 2011                          $     99,283  $       (581)    $       5,933
----------------------------------------------------------------------------


Nine months ended September 30, 2011
(Unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------


                                      Total
                                accumulated
                                      other       Retained          Total
                              comprehensive       earnings
                              income/(loss)      (Recast -
                                                   Note 2)








Balance at January 1, 2011    $       7,575   $     36,193   $    143,051

Total comprehensive income
 for the period

Net income                                         137,779        137,779

Other comprehensive income
 (loss)

Net change in fair value
 on available-for-sale
  financial assets during
  the period                          4,478              -          4,478

Net unrealized foreign
 exchange adjustment
 gain (loss) on available-
  for-sale financial assets
  during the period                     (90)             -            (90)

Amounts reclassified to
 profit during the period
 related to realized gains
  on available-for-sale
  investments                        (5,882)             -         (5,882)


Foreign currency translation
 differences from foreign
 operations                          (1,212)             -         (1,212)

Current tax expense                      75              -             75

Deferred tax expense                    408              -            408

--------------------------------------------------------------------------
Total other comprehensive
 income (loss) for the
 period                              (2,223)             -         (2,223)

--------------------------------------------------------------------------
Total comprehensive income
 (loss) for the period               (2,223)       137,779        135,556
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Transactions with owners,
 recorded directly in equity

Dividends to owners of the
 Company                                           (42,384)       (42,384)

--------------------------------------------------------------------------
Balance at September 30,
 2011                         $       5,352   $    131,588   $    236,223
--------------------------------------------------------------------------


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

(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                  Three months ended      Nine months ended
                                       September 30,          September 30,
                                    2012        2011       2012        2011
----------------------------------------------------------------------------

                                            (Recast)               (Recast)
Cash flows from operating
 activities:
  Net income                    $ 21,065   $  19,305   $ 52,581   $ 137,779
  Adjustments for:
    Depreciation                   2,112       1,957      5,633       6,039
    Amortization of intangible
     assets                       22,099      19,135     61,643      55,733
    Impairment of non-
     financial assets                  -         518          -         518
    Equity in net (income)
     loss of equity investees       (216)          -        875           -
    Finance income                (2,066)     (2,795)    (3,529)     (6,167)
    Finance costs                  1,131       1,462      2,923       4,589
    Income tax expense
     (recovery)                    4,833       5,758     11,810     (80,288)
    Foreign exchange (gain)
     loss                           (321)       (905)      (330)      3,028
  Change in non-cash operating
   working capital                 4,492      12,511    (29,347)    (30,437)
  Income taxes paid               (7,596)     (3,295)   (18,311)    (10,023)
  --------------------------------------------------------------------------
  Net cash flows from
   operating activities           45,533      53,651     83,948      80,771

Cash flows from financing
 activities:
  Interest paid                     (634)     (1,526)    (1,471)     (3,989)
  Increase (decrease) in other
   non current liabilities          (192)     (1,800)       (70)     (1,959)
  Increase (decrease) in bank
   indebtedness, net               6,710     (67,746)    36,052     (12,031)
  Credit facility transaction
   costs                            (191)          -     (2,077)          -
  Dividends paid                 (21,192)          -    (42,384)    (42,384)
  --------------------------------------------------------------------------
  Net cash flows used in
   financing activities          (15,499)    (71,072)    (9,950)    (60,363)

 Cash flows from investing
 activities:
  Acquisition of businesses,
   net of cash acquired          (14,507)     (1,510)   (65,144)    (33,054)
  Post-acquisition settlement
   payments, net of receipts      (7,038)     (1,503)   (11,671)     (2,602)
  Purchases of equity
   securities available-for-
   sale                             (131)          -       (211)     (5,944)
  Proceeds from sale of equity
   securities available-for-
   sale                            7,293       7,011      9,156      13,499
  Proceeds from sale of
   intangible assets                   -                    101           -
  Decrease in restricted cash          -         107          -         557
  Interest received                  164         164        243         318
  Property and equipment
   purchased                      (2,132)     (1,640)    (4,673)     (5,704)
  --------------------------------------------------------------------------
  Cash flows provided from
   (used in) investing
   activities                    (16,351)      2,629    (72,199)    (32,930)

Effect of foreign currency
 translation adjustment on
 cash and cash equivalents           388       2,751        451        (218)
----------------------------------------------------------------------------
Increase (decrease) in cash
 and cash equivalents             14,071     (12,041)     2,250     (12,740)

Cash, beginning of period         21,671      30,212     33,492      30,911

----------------------------------------------------------------------------
Cash, end of period             $ 35,742   $  18,171   $ 35,742   $  18,171
----------------------------------------------------------------------------
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