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85	85	* Pharmaceutical manufacturing
86	86
87	87
88		-Topicuscom
	88	+**Topicuscom**
89	89
90		-Government
	90	+* Government
	91	+* Real Estate
	92	+* Healthcare
	93	+* Automotive
	94	+* Finance
	95	+* Retail
	96	+* Legal
91	91
92		-Real Estate
93	93
94		-Healthcare
95	95
96		-Automotive
	100	+[[image:CSU1.jpg]]
97	97
98		-Finance
99	99
100		-Retail
	103	+= Financial Highlights =
101	101
102		-Legal
103	103
	106	+Total revenue for the quarter ended September 30, 2021 was $1,299 million, an increase of 30%, or $296 million, compared to $1,003 million for the comparable period in 2020. For the first nine months of 2021 total revenues were $3,724 million, an increase of 29%, or $846 million, compared to $2,878 million for the comparable period in 2020. The increase for both the three and nine month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 7% and 9% respectively, and 5% for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business.{{footnote}}https://www.csisoftware.com/docs/default-source/investor-relations/statutory-filings/csi---mda-q3-2021.pdf{{/footnote}}
104	104
105		-Financial Highlights
106	106
107		-
108		-Total revenue for the quarter ended September 30, 2021 was $1,299 million, an increase of 30%, or $296 million, compared to $1,003 million for the comparable period in 2020. For the first nine months of 2021 total revenues were $3,724 million, an increase of 29%, or $846 million, compared to $2,878 million for the comparable period in 2020. The increase for both the three and nine month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 7% and 9% respectively, and 5% for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business.
109		-
110		-[[https:~~/~~/www.csisoftware.com/docs/default-source/investor-relations/statutory-filings/csi~~-~~--mda-q3-2021.pdf>>url:https://www.csisoftware.com/docs/default-source/investor-relations/statutory-filings/csi---mda-q3-2021.pdf]]
111		-
112	112	Overall expenses for the quarter ended September 30, 2021 increased 35%, or $246 million to $943 million, compared to $697 million during the same period in 2020. As a percentage of total revenue, expenses equalled 73% for the quarter ended September 30, 2021 and 70% for the same period in 2020. During the nine months ended September 30, 2021, expenses increased 31%, or $643 million to $2,712 million, compared to $2,069 million during the same period in 2020. As a percentage of total revenue, expenses equalled 73% for the nine months ended September 30, 2021 and 72% for the same period in 2020. F
113	113
	111	+
114	114	Depreciation of property and equipment increased 17% or $4 million for the quarter ended September 30, 2021 and 17% or $13 million for the nine months ended September 30, 2021 over the same periods in 2020. The increases are primarily due to the depreciation expense associated with acquired businesses.
115	115
	114	+
116	116	Finance costs for the quarter ended September 30, 2021 increased $6 million to $18 million, compared to $13 million for the same period in 2020. During the nine months ended September 30, 2021, finance costs increased $16 million to $50 million, from $34 million for the same period in 2020. The increases are primarily a result of an increase in the average debt outstanding in 2021 as compared to 2020.
117	117
	117	+
118	118	For the quarter ended September 30, 2021, income tax expense increased $20 million to $67 million compared to $46 million for the same period in 2020. During the nine months ended September 30, 2021, income tax expense increased $39 million to $166 million compared to $127 million for the same period in 2020.
119	119
	120	+
120	120	The Company’s consolidated effective tax rate in respect of continuing operations for the three and nine months ended September 30, 2021 was 35% and 87% respectively (27% and 31% respectively for the three and nine months ended September 30, 2020).
121	121
	123	+
122	122	The net income attributable to common shareholders of CSI for the quarter ended September 30, 2021 was $107 million compared to net income of $122 million for the same period in 2020. On a per share basis this translated into a net income per diluted share of $5.04 in the quarter ended September 30, 2021 compared to net income per diluted share of $5.76 for the same period in 2020. For the nine months ended September 30, 2021, net income attributable to common shareholders of CSI was $186 million or $8.79 per diluted share compared to $288 million or $13.58 per diluted share for the same period in 2020. There was no change in the number of shares outstanding.
123	123
	126	+
124	124	The company's net cash position (cash less bank indebtedness excluding capitalized transaction costs) decreased by $38 million to $487 million in the nine months ended September 30, 2021 resulting from the net capital deployed on acquisitions plus dividends exceeding cash flows from operations. Cash increased by $203 million to $961 million at September 30, 2021 compared to $758 million at December 31, 2020 and bank indebtedness increased by $241 million to $474 million at September 30, 2021 compared to $233 million at December 31, 2020.
125	125
	129	+
126	126	Total assets increased $1,059 million, from $4,375 million at December 31, 2020 to $5,434 million at September 30, 2021. The increase is primarily due to a $203 million increase in cash, $29 million increase in accounts receivable, $46 million increase in unbilled revenue, $59 million increase in other current assets, and $681 million increase in intangible assets. At September 30, 2021 six subsidiaries holding cash totalling $125 million maintained debt facilities, which facilities are without recourse to Constellation. As explained in the “Capital Resources and Commitments” section below, there are limitations on the ability of these subsidiaries to distribute funds to Constellation.
127	127
	132	+
128	128	Current liabilities increased $338 million, from $2,040 million at December 31, 2020 to $2,377 million at September 30, 2021. The increase is primarily due to an increase in deferred revenue of $206 million mainly due to acquisitions made since December 31, 2020 and the timing of maintenance and other billings versus performance and delivery under those customer arrangements, a $49 million increase in the current portion of debt, and $54 million increase in accounts payable and accrued liabilities.
129	129
130	130
131		-Recent developments
	136	+= Recent developments =
132	132
	138	+**Constellation Software Inc. Announces Formation of a Venture Capital Fund and Management Changes**
133	133
134		-Constellation Software Inc. Announces Formation of a Venture Capital Fund and Management Changes
	140	+**November 25, 2021**; Constellation Software Inc. (TSX:CSU) (“Constellation”) today announced the creation of a two hundred-million-dollar venture capital fund ("VMS Ventures“, or “the Fund”). The Fund will provide financing for start-up and rapidly growing vertical market software businesses, most of which will have been either incubated or identified by a sponsoring Constellation business unit.{{footnote}}https://www.csisoftware.com/docs/default-source/press-releases/vms-ventures-fund-press-release-25-nov-2021-(final).pdf{{/footnote}}
135	135
136		-November 25, 2021’ Constellation Software Inc. (TSX:CSU) (“Constellation”) today announced the creation of a two hundred-million-dollar venture capital fund ("VMS Ventures“, or “the Fund”). The Fund will provide financing for start-up and rapidly growing vertical market software businesses, most of which will have been either incubated or identified by a sponsoring Constellation business unit.
137	137
138		-[[https:~~/~~/www.csisoftware.com/docs/default-source/press-releases/vms-ventures-fund-press-release-25-nov-2021-(final).pdf>>url:https://www.csisoftware.com/docs/default-source/press-releases/vms-ventures-fund-press-release-25-nov-2021-(final).pdf]]
139		-
140	140	While Constellation regularly invests in dozens of small initiatives and will continue to do so, VMS Ventures will invest in larger initiatives and take a different approach:
141	141
142		-.
	145	+* The Fund will only invest in businesses (“Investees”) that have the potential to become standalone business units within Constellation.
	146	+* The managers and employees of the Fund's Investees will be significant shareholders in their businesses.
	147	+* The Fund will not back start-ups that have to rely upon a Constellation business unit for ongoing sales, marketing, customer support, development, etc.
	148	+* Many of the Investees' staff will be hired from outside of Constellation.
	149	+* The Fund's employees will be compensated based upon the Fund's results.
143	143
144		-The Fund will only invest in businesses (“Investees”) that have the potential to become standalone business units within Constellation.
145	145
146		-The managers and employees of the Fund's Investees will be significant shareholders in their businesses.
147		-
148		-The Fund will not back start-ups that have to rely upon a Constellation business unit for ongoing sales, marketing, customer support, development, etc.
149		-
150		-Many of the Investees' staff will be hired from outside of Constellation.
151		-
152		-The Fund's employees will be compensated based upon the Fund's results.
153		-
154		-
155	155	Investing only $200 million over a three-to-five-year period, Constellation does not expect the Fund to add meaningfully to Constellation’s organic revenue growth rate. The Fund's objective is to develop and refine organic growth processes which can eventually be rolled out more broadly by Constellation's operating groups. Constellation does not anticipate that the Fund will detract from Constellation's existing initiative programs nor its acquisition momentum.
156	156
	154	+
157	157	The Managing Partner of the Fund will be Daan Dijkhuizen. In addition to managing the Fund, he will continue to be the CEO of the Topicus Operating Group (“TOG”) within Topicus.com, but will resign his role as CEO of Topicus.com. Robin van Poelje will take on the role of the CEO Of Topicus.com in addition to his current position as Chairman.
158	158
	157	+
159	159	“Leading the Topicus Operating Group into Topicus.com Inc., and the subsequent public listing of Topicus.com Inc., was an exciting and fruitful journey. I will stay at Topicus.com Inc as a board member. I look forward to continue building the future of TOG as CEO and to leading the fund as managing partner focusing on Constellation’s larger organic growth opportunities”, said Daan Dijkhuizen.
160	160
	160	+
161	161	Mark Leonard, President of Constellation stated: “Organic growth will be a critically important part of CSI's enduring success. I’m delighted that Daan will continue to lead TOG and will take on the additional responsibility for the Fund. TOG has one of the best track records of sustained organic growth at scale that I’ve seen in the VMS industry. I’ll personally support the Fund and Daan as he focuses on leading Constellation’s larger organic growth efforts.”
162	162
163	163
164		-References
	164	+= References =
165	165
166	166	{{putFootnotes/}}