TORONTO, ONTARIO--(Marketwire - May 2, 2012) - Constellation Software Inc. (TSX:CSU) ("Constellation" or the "Company") today announced its financial results for the first quarter ended March 31, 2012 and declared a $1.00 per share dividend payable on July 4, 2012 to all common shareholders of record at close of business on June 18, 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 months ended March 31, 2012 and the accompanying notes, and with 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, 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.

Q1 2012 Highlights:

• Revenue grew 10% to $195 million compared to $178 million in Q1 2011. Organic revenue growth was 3% in Q1 2012 compared to 5% in Q1 2011.
• Adjusted EBITDA increased $4 million or 12% to $39 million as compared to Q1 2011.
• Adjusted Net Income increased $5 million or 17% to $32 million ($1.50 on a diluted per share basis) from $27 million ($1.28 on a diluted per share basis) in Q1 2012.
• March 31, 2012 cash position (net of borrowings on our line of credit) increased to $38 million, from $33 million at December 31, 2011.
• The Company's $160 million credit facility was replaced with a $300 million credit facility on more favourable terms.
• Four acquisitions were completed in the quarter for net cash consideration of $8 million.
• Subsequent to March 31, 2012, the Company completed four acquisitions for aggregate cash consideration of $12 million plus holdbacks of $3 million and declared a quarterly dividend of $1.00 per share payable on July 4, 2012 to all shareholders of record as of June 18, 2012.

First quarter 2012 revenue was $195 million, an increase of 10%, or $17 million, compared to $178 million for the comparable period in 2011. The increase was mainly attributable to growth from acquisitions, as organic growth from our existing businesses increased by approximately $5 million or 3% for the quarter.

Adjusted EBITDA for the first quarter 2012 was $39 million, a 12% increase compared to the prior year's first quarter Adjusted EBITDA of $35 million. First quarter 2012 Adjusted EBITDA per share on a diluted basis increased 12% to $1.85, compared to $1.65 for the same period last year.

Adjusted Net Income for the first quarter 2012 was $32 million, compared to the prior year's first quarter Adjusted Net Income of $27 million, a 17% increase. First quarter 2012 Adjusted Net Income per share on a diluted basis increased 17% to $1.50 compared to $1.28 for the prior year's first quarter.

Net income for the first quarter 2012 was $14 million compared to the prior year's first quarter net income of $62 million. On a diluted per share basis, this translates into net income per share of $0.66 for the first quarter of 2012. This compares unfavorably to $2.95 for the same period of 2011, which included an unusual deferred income tax recovery. Excluding the deferred income tax recovery, net income increased by 46% to $12 million in the quarter ended March 31, 2012 from $8 million in the quarter ended March 31, 2011.

The following table displays our revenue by reportable segment and the percentage change for the three months ended March 31, 2012 compared to the same period in 2011:

	Three months ended March 31,		Period-Over-Period Change
	2012	2011	$		%
	($000, except percentages)
Public Sector
Licenses	9,790	10,545	(755	)	-7	%
Professional services	32,302	33,459	(1,157	)	-3	%
Hardware and other	22,289	21,257	1,032		5	%
Maintenance and other recurring	73,851	65,689	8,162		12	%
	138,232	130,950	7,282		6	%
Private Sector
Licenses	5,150	4,666	484		10	%
Professional services	9,825	8,330	1,495		18	%
Hardware and other	3,066	2,750	316		11	%
Maintenance and other recurring	39,005	30,936	8,069		26	%
	57,046	46,682	10,364		22	%

Public Sector

For the quarter ended March 31, 2012, total revenue in the public sector reportable segment increased 6% or $7 million, to $138 million, compared to $131 million for the quarter ended March 31, 2011. Revenue growth from acquired businesses was significant as we completed ten acquisitions since the beginning of 2011 in our public sector segment. It is estimated that acquisitions completed since the beginning of 2011 contributed approximately $5 million to our Q1 2012 revenues. Revenues increased organically by 2% or $2 million in Q1 2012 compared to the same period in 2011.

The organic revenue change was primarily driven by the following:

• Volaris operating group (increase of approximately $2 million for the three months ended March 31, 2012). The organic growth was primarily driven from strong revenue in its PTS and agriculture verticals.

Private Sector

For the quarter ended March 31, 2012, total revenue in the private sector reportable segment increased by 22%, or $10 million, to $57 million, compared to $47 million for the quarter ended March 31, 2011. Revenue growth from acquired businesses was significant for the three month period as we completed twelve acquisitions since the beginning of 2011 in our private sector segment. It is estimated that acquisitions completed since the beginning of 2011 contributed approximately $7 million to our Q1 2012 revenues. Revenues increased organically by 6% or $3 million in Q1 2012 compared to the same period in 2011.

The organic revenue change was primarily driven by the following:

• Jonas operating group (increase of approximately $3 million for the three months ended March 31, 2012). Jonas' organic growth was driven by strong sales to both existing and new customers primarily in its fitness, construction, and food service verticals.

During the quarter, Constellation completed four acquisitions for total net cash consideration of approximately $8 million, and made $1 million in acquisition holdback payments. At March 31, 2012, Constellation's cash position (net of borrowings on our line of credit) increased to $38 million, from $33 million at December 31, 2011. Subsequent to March 31, 2012, the Company completed four acquisitions for aggregate cash consideration of $12 million.

"Q1 was a respectable quarter across all metrics. Our businesses generated high rates of return while delivering modest organic growth." commented John Billowits, Chief Financial Officer of Constellation. "As previously noted, it was anticipated that our overall growth will slow in 2012 given the relatively small amount of capital deployed on acquisitions in 2011 and a moderation in the PTS organic revenue growth rate. However, we are optimistic about our acquisition prospects in the short term."

Conference Call and Webcast

Management will host a conference call at 9:00 a.m. (ET) on Thursday, May 3, 2012 to answer questions regarding the results. The teleconference numbers are 416-340-8061 or 800-396-7098. 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 May 17, 2012. To access the replay, please dial 905-694-9451 or 800-408-3053 followed by the passcode 3771898.

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 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 plus non-cash expenses (income) such as amortization of intangible assets, deferred income taxes, and certain other non-cash 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 March 31,
	2012		2011
	($000, except percentages)
Total revenue	$195,278		$ 177,632
Net income	13,924		62,488
Adusted for:
Income tax expense (recovery)	3,311		(50,963	)
Foreign exchange loss	208		2,065
Equity in net loss of equity investees	882		0
Finance income	(1,069	)	(368	)
Finance costs	1,018		1,161
Amortization of intangible assets	19,275		18,525
Depreciation	1,718		2,126
Adjusted EBITDA	39,267		35,034
Adjusted EBITDA margin	20	%	20	%

The following table reconciles Adjusted net income to net income:
	Three months ended March 31,
	2012		2011
	($000, except percentages)
Total revenue	$195,278		$ 177,632
Net income	13,924		62,488
Adusted for:
Amortization of intangible assets	19,275		18,525
Deferred income tax recovery	(1,492	)	(53,971	)
Adjusted net income	31,707		27,042
Adjusted net income margin	16	%	15	%

The following tables provide supplemental statement of operations and cash flow information for PTS:
Supplemental financial information
		For the three months ended March 31, 2012
(Unaudited)		Constellation Software Inc. (excluding PTS)			PTS			Consolidated
Revenue		$	162,468		$	32,810		$	195,278
Adjusted EBITDA			32,611			6,656			39,267
	EBITDA as % Total Revenue		20	%		20	%		20	%
Net Income		$	8,178		$	5,746		$	13,924
Cash flows from operating activities:
	Net income	$	8,178		$	5,746		$	13,924
	Adjustments to reconcile net income to net cash flows from operations, including taxes paid:		21,780			861			22,641
	Change in non-cash operating working capital		(6,536	)		(17,808	)		(24,344	)
	Cash flows from operating activities	$	23,422		$	(11,201	)	$	12,221

The following table reconciles Adjusted EBITDA to net income for PTS:
Adjusted EBITDA to net income reconciliation
		For the three months ended March 31, 2012
(Unaudited)		Constellation Software Inc. (excluding PTS)			PTS			Consolidated
Total revenue	$	162,468		$	32,810		$	195,278
Net income		8,178			5,746			13,924
Adjusted for:
Income tax expense		2,914			397			3,311
Other expenses (income)		691			348			1,039
Amortization of intangible assets		19,275			-			19,275
Depreciation		1,553			165			1,718
Adjusted EBITDA		32,611			6,656			39,267
Adjusted EBITDA margin		20	%		20	%		20	%

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.

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of U.S. dollars)
(Unaudited)
		March 31,		December 31,
		2012		2011
Assets
Current assets:
	Cash	$	48,813	$	33,492
	Equity securities available-for-sale		23,382		21,222
	Accounts receivable		103,100		100,398
	Work in progress		29,209		26,244
	Inventories		15,205		13,539
	Other assets		27,702		25,633
			247,411		220,528
Non-current assets:
	Property and equipment		14,401		14,591
	Deferred income taxes		101,636		99,659
	Other assets		26,205		28,005
	Intangible assets		262,756		267,792
			404,998		410,047
Total assets		$	652,409	$	630,575
Liabilities and Shareholders' Equity
Current liabilities:
	Bank indebtedness	$	11,198	$	-
	Accounts payable and accrued liabilities		80,158		114,952
	Dividends payable		21,192		-
	Deferred revenue		207,032		181,450
	Provisions		3,162		3,555
	Acquired contract liabilities		1,438		4,750
	Acquisition holdback payments		13,254		11,378
	Income taxes payable		7,058		4,751
			344,492		320,836
Non-current liabilities:
	Deferred income taxes		12,423		11,259
	Acquired contract liabilities		29,365		28,051
	Acquisition holdback payments		2,723		2,474
	Other liabilities		10,725		11,675
			55,236		53,459
Total liabilities			399,728		374,295
Shareholders' equity:
	Capital stock		99,283		99,283
	Accumulated other comprehensive income		10,630		6,961
	Retained earnings		142,768		150,036
			252,681		256,280
Total liabilities and shareholders' equity		$	652,409	$	630,575

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts)
Three months ended March 31, 2012 and 2011
(Unaudited)
		2012			2011
					(Recast)
Revenue		$	195,278		$	177,632
Expenses
	Staff		105,631			95,919
	Hardware		12,227			12,121
	Third party license, maintenance and professional services		14,246			12,663
	Occupancy		4,625			4,588
	Travel		8,246			6,268
	Telecommunications		2,497			2,537
	Supplies		3,432			4,163
	Professional fees		1,845			2,136
	Other		3,262			2,203
	Depreciation		1,718			2,126
	Amortization of intangible assets		19,275			18,525
			177,004			163,249
Foreign exchange loss			208			2,065
Equity in net loss of equity investees			882			-
Finance income			(1,069	)		(368	)
Finance costs			1,018			1,161
			1,039			2,858
Profit before income tax			17,235			11,525
Current income tax expense			4,803			3,008
Deferred income tax recovery			(1,492	)		(53,971	)
Income tax expense (recovery)			3,311			(50,963	)
Net income			13,924			62,488
Net change in fair value
	on available-for-sale financial
	assets during the period		3,848			3,325
Net unrealized foreign exchange adjustment gain on available-for-sale financial assets during the period			121			209
Amounts reclassified to profit during the period related to realized gains on available-for-sale investments			(1,032	)		(334	)
Foreign currency translation differences from foreign operations			1,141			1,103
Current tax expense			(78	)		-
Deferred tax expense			(331	)		(480	)
Other comprehensive income for the period, net of income tax			3,669			3,823
Total comprehensive income for the period		$	17,593		$	66,311
Earnings per share
	Basic and diluted	$	0.66		$	2.95

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of U.S. dollars)
Three months ended March 31, 2012
(Unaudited)
		Capital stock		Accumulated other comprehensive income/(loss)							Total accumulated other comprehensive income/(loss)			Retained earnings			Total
				Cumulative translation account				Amounts related to gains/losses on available-for-sale financial assets
Balance at January 1, 2012		$	99,283	$	182			$	6,779		$	6,961		$	150,036		$	256,280
Total comprehensive income for the period
Net income															13,924			13,924
Other comprehensive income (loss)
Net change in fair value
	on available-for-sale financial
	assets during the period								3,848			3,848			-			3,848
Net unrealized foreign exchange adjustment
	gain (loss) on available-for-sale financial
	assets during the period								121			121			-			121
Amounts reclassified to profit during the period
	related to realized gains on
	available-for-sale investments								(1,032	)		(1,032	)		-			(1,032	)
Foreign currency translation differences from foreign operations					1,141							1,141			-			1,141
Current tax expense					(78	)						(78	)					(78	)
Deferred tax expense					(11	)			(320	)		(331	)		-			(331	)
Total other comprehensive income for the period					1,052				2,617			3,669			-			3,669
Total comprehensive income for the period					1,052				2,617			3,669			13,924			17,593
Transactions with owners, recorded directly in equity
Dividends to owners of the Company															(21,192	)		(21,192	)
Balance at March 31, 2012		$	99,283	$	1,234			$	9,396		$	10,630		$	142,768		$	252,681

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Changes in Equity
(In thousands of U.S. dollars)
Three months ended March 31, 2011
(Unaudited)
		Capital stock		Accumulated other comprehensive income/(loss)						Total accumulated other comprehensive income/(loss)			Retained earnings (Recast)			Total
				Cumulative translation account			Amounts related to gains/losses on available-for-sale financial assets
Balance at January 1, 2011		$	99,283	$	432		$	7,143		$	7,575		$	36,193		$	143,051
Total comprehensive income for the period
Net income														62,488			62,488
Other comprehensive income (loss)
Net change in fair value
	on available-for-sale financial
	assets during the period							3,325			3,325			-			3,325
Net unrealized foreign exchange adjustment
	gain (loss) on available-for-sale financial
	assets during the period							209			209			-			209
Amounts reclassified to profit during the period
	related to realized gains on
	available-for-sale investments							(334	)		(334	)		-			(334	)
Foreign currency translation differences from foreign operations					1,103			-			1,103			-			1,103
Deferred tax expense								(480	)		(480	)		-			(480	)
Total other comprehensive income (loss) for the period					1,103			2,720			3,823			-			3,823
Total comprehensive income for the period					1,103			2,720			3,823			62,488			66,311
Transactions with owners, recorded directly in equity
Dividends to owners of the Company														(42,384	)		(42,384	)
Balance at March 31, 2011		$	99,283	$	1,535		$	9,863		$	11,398		$	56,297		$	166,978

CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of U.S. dollars)
Three months ended March 31, 2012 and 2011
(Unaudited)
			2012			2011
						(Recast)
Cash flows from operating activities:
	Net income		$	13,924		$	62,488
	Adjustments for:
		Depreciation		1,718			2,126
		Amortization of intangible assets		19,275			18,525
		Equity in net earnings of equity investees		882			-
		Finance income		(1,069	)		(368	)
		Finance costs		1,018			1,161
		Income tax expense (recovery)		3,311			(50,963	)
		Foreign exchange loss		208			2,065
	Change in non-cash operating working capital			(24,344	)		(13,376	)
	Income taxes paid			(2,702	)		(2,379	)
	Net cash flows from operating activities			12,221			19,279
Cash flows from financing activities:
	Interest paid			(336	)		(887	)
	Increase in other non current liabilities			(200	)		87
	Increase in bank indebtedness, net			13,000			38,644
	Credit facility financing fees			(1,840	)		-
	Dividends paid			-			(42,384	)
	Net cash flows from financing activities			10,624			(4,540	)
Cash flows from investing activities:
	Acquisition of businesses, net of cash acquired			(7,807	)		(10,391	)
	Post-acquisition settlement payments, net of receipts			(501	)		(1,052	)
	Purchases of available-for-sale equity securities			-			(1,249	)
	Proceeds from sale of available-for-sale equity securities			1,808			643
	Increase in restricted cash			-			450
	Interest received			38			37
	Property and equipment purchased			(1,290	)		(2,599	)
Cash flows provided for (used in) investing activities				(7,752	)		(14,161	)
Effect of currency translation adjustment on cash and cash equivalents				228			(1,346	)
Increase (decrease) in cash and cash equivalents				15,321			(768	)
Cash, beginning of period				33,492			30,911
Cash, end of period			$	48,813		$	30,143

FOR FURTHER INFORMATION PLEASE CONTACT:

John Billowits
Constellation Software Inc.
Chief Financial Officer
(416) 861-2279
info@csisoftware.com
www.csisoftware.com