Computer Modelling Group Announces Third Quarter Results and Quarterly Dividend

Core Viewpoint - Computer Modelling Group Ltd. reported its financial results for the three and nine months ended December 31, 2024, highlighting a cash dividend approval of $0.05 per Common Share for the third quarter [1][18]. Financial Highlights - Total revenue for Q3 fiscal 2025 was $35.8 million, a slight increase from $33.0 million in the prior year, with a 1% decrease in the Reservoir & Production Solutions (R&P) segment and a 9% contribution from the Seismic segment, including 6% growth from acquisitions [5][8]. - Operating profit rose to $11.2 million, a 37% increase from the same period last year, driven by higher software and professional service revenues and reduced operating expenses [5][9]. - Net income for the quarter was $9.6 million, a 71% increase compared to the prior year's quarter, attributed to increased operating profit and significant foreign exchange gains [5][9]. - Earnings per share increased to $0.12, reflecting a 71% rise from the previous year [5][9]. - Free Cash Flow per share was reported at $0.11, a 22% increase, primarily due to higher funds flow from operations and lower capital expenditures [5][9]. Segment Performance Reservoir & Production Solutions - Revenue in this segment declined by 1%, with professional services revenue decreasing but partially offset by gains in perpetual license revenue [10][11]. - Operating profit increased to $7.0 million, up from $5.9 million in the prior year, despite increased expenses related to acquisitions and agent commissions [11][24]. - Adjusted EBITDA Margin for the segment was 42%, down from 44% in the previous year [11][24]. Seismic Solutions - Total revenue increased by 26%, with 9% from organic growth and 17% from acquisitions [13][14]. - Operating profit for the Seismic segment rose to $4.2 million from $2.3 million, supported by higher revenue and lower general and administrative expenses [14][25]. - Adjusted EBITDA Margin improved to 34% from 24% in the prior year [14][25]. Year-to-Date Performance - For the nine months ended December 31, 2024, total revenue was $95.8 million, compared to $76.4 million in the prior year, with a 3% increase in R&P segment revenue and a 22% contribution from the Seismic segment [5][17]. - Operating profit for the year-to-date period decreased by 2% to $25.3 million, primarily due to increased headcount and related costs [5][17]. - Net income for the nine-month period was $17.3 million, a 9% decrease compared to the prior year [5][17]. Cash and Dividend Information - The company’s cash balance at December 31, 2024, was $39.7 million, down from $61.4 million at September 30, 2024, mainly due to the acquisition of Sharp Reflections [9][18]. - A cash dividend of $0.05 per Common Share was approved, to be paid on March 14, 2025, to shareholders of record as of March 6, 2025 [1][18].