Altus Group Limited — Annual Report 2020

Feb 24, 2021

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Altus Group Reports Fourth Quarter and Full Year 2020 Financial Results

Delivers 15% Growth in Altus Analytics Over Time Revenues & Property Tax Revenues in 2020

TORONTO (February 24, 2021) - Altus Group Limited (ʺAltus Groupʺ or “the Company”) (TSX: AIF), a leading provider of software, data solutions and independent advisory services to the global commercial real estate industry, announced today its financial and operating results for the fourth quarter and year ended December 31, 2020.

All amounts are in Canadian dollars and percentages are in comparison to the same period in 2019.

2020 Summary:

• Consolidated revenues were $561.2 million, up 6.7%

• Consolidated profit from continuing operations, in accordance with IFRS, was $27.0 million, up 13.1%

• Consolidated earnings per share from continuing operations, in accordance with IFRS, was $0.67 per share basic and $0.66 per share diluted, compared to $0.61 and $0.60, respectively

• Consolidated Adjusted EBITDA[1] was $98.9 million, up 16.8%

• Adjusted earnings per share[2] (“Adjusted EPS”) was $1.67, compared to $1.43

• Altus Analytics Over Time[3] revenues grew 14.7% to $167.7 million (reflecting ongoing revenue model transition, total Altus Analytics revenues increased modestly by 0.9% to $203.7 million while Adjusted EBITDA[1] decreased by 2.6% to $35.8 million)

• Finished the year surpassing 1,000 customers on cloud-enabled Argus Enterprise (“AE”) and 14% of total AE user base contracted on ARGUS Cloud

• CRE Consulting revenues grew 10.4% to $357.8 million and Adjusted EBITDA[1] increased by 21.0% to $92.1 million, driven by 14.8% revenue and 22.7% Adjusted EBITDA growth at Property Tax

• At the end of the year Bank debt was $123.0 million (representing a funded debt to EBITDA leverage ratio of 1.09 times) and cash and cash equivalents was $69.6 million

Fourth Quarter 2020 Summary:

• Consolidated revenues were $139.5 million, up 0.7%

• Consolidated profit from continuing operations, in accordance with IFRS, was $4.6 million, down 24.5%

• Consolidated earnings per share from continuing operations, in accordance with IFRS, was $0.11 per share basic and diluted, compared to $0.15 per share basic and diluted, respectively

• Consolidated Adjusted EBITDA[1] was $26.7 million, up 19.7%

• Adjusted EPS was $0.44, compared to $0.42

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• Altus Analytics Over Time[3] revenues grew 11.5% to $43.5 million (total Altus Analytics revenues decreased by 5.6% to $51.5 million while Adjusted EBITDA[1] increased by 8.2% to $5.8 million)

• CRE Consulting revenues grew 4.9% to $88.0 million and Adjusted EBITDA[1] increased by 24.3% to $16.7 million, driven by 6.0% revenue and 24.1% Adjusted EBITDA growth at Property Tax

• Subsequent to quarter end, the Company entered into exclusive negotiations to acquire 100% of Finance Active SAS, a leading European provider of SaaS debt and financial risk management solutions for CRE treasury and investment management

“We’re really pleased to have achieved robust top-line and earnings growth in 2020, particularly with the backdrop of a challenging external environment for our industry. More than ever, our clients are valuing the insights we provide through our technology and service solutions,” said Mike Gordon, Chief Executive Officer at Altus Group. “At Altus Analytics, we passed a significant transition period as we fully shifted to a subscription model, finishing the year strong with healthy Over Time revenue growth, over 1,000 AE customers on our cloud platform, and a pick-up of some of our larger customers beginning their migration to the cloud platform. Our Property Tax business continued to make market share gains and drive high success rates for our clients, contributing to another record year.”

Mr. Gordon added: “We are excited about the opportunities ahead of us this year, which combined with our strong financial position and a positive market outlook, make this the right time to accelerate our strategy for emerging opportunities in the debt adjacency and in data-driven solutions to support our long-term growth.”

Proposed Acquisition of Finance Active

Subsequent to year end, the Company entered into exclusive negotiations to acquire 100% of Finance Active SAS (“Finance Active”) for a proposed purchase price in the range of €100 million (on a debt free, cash free basis), to be paid primarily in cash, drawn from the Company’s credit facility. Founded in 2000, Finance Active is a leading European provider of SaaS debt and financial risk management solutions for CRE treasury and investment management serving public sector entities, corporations and financial institutions. The company of approximately 160 employees is headquartered in Paris, France, with over 3,000 customers across Europe, and generated gross revenue of approximately €25 million in 2020. If completed, it is anticipated that the transaction will close in the second quarter and Finance Active would join the Altus Analytics business unit. There can be no assurance that the parties will reach agreement on all material terms and conditions or that the transaction will ultimately be completed.

Summary of Operating and Financial Performance by Business Segment:

All amounts are in Canadian dollars and percentages are in comparison to the same period in 2019, as applicable. As the Company’s Geomatics business has been classified as discontinued operations and contributed into the GeoVerra joint venture, it is not included in the current and comparative period consolidated results from continuing operations.

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CONSOLIDATED	Year ended Dec. 31,	Quarter ended Dec. 31,
In thousands of dollars	2020 2019 % Change	2020 2019 % Change
Revenues Adjusted EBITDA1 Adjusted EBITDA1Margin Profit (loss) from continuing operations Earnings (loss) per share from continuing operations: Basic Diluted Adjusted Dividends declaredper share	$ 561,156 $ 525,717 6.7% $ 98,928 $ 84,709 16.8% 17.6% 16.1% $ 27,009 $ 23,891 $0.67 $0.61 $0.66 $0.60 $1.67 $1.43 $0.60 $0.60	$ 139,480 $138,451 0.7% $ 26,734 $ 22,331 19.7% 19.2% 16.1% $ 4,622 $ 6,118 $0.11 $0.15 $0.11 $0.15 $0.44 $0.42 $0.15 $0.15

Altus Analytics	Year ended Dec. 31,	Quarter ended Dec. 31,
In thousands of dollars	2020 2019 % Change	2020 2019 % Change
Revenues Adjusted EBITDA1 Adjusted EBITDA1Margin	$ 203,707 $ 201,951 0.9% $ 35,845 $ 36,803 (2.6%) 17.6% 18.2%	$ 51,515 $ 54,581 (5.6%) $ 5,786 $ 5,346 8.2% 11.2% 9.8%
Selected Metrics*
Over Time3revenues AE software maintenance retention rate4 Geographical revenue split: North America International Cloud adoption rate5(as at end ofperiod)	$ 167,678 $ 146,248 14.7% 96% 97% 81% 81% 19% 19%	$ 43,466 $ 38,992 11.5% 94% 97% 81% 81% 19% 19% 14% n/a

*Refer to the definitions below or on pages 3 and 4 of the MD&A for the year ended Dec. 31, 2020

CRE Consulting	Year ended Dec. 31,	Quarter ended Dec. 31,
In thousands of dollars	2020 2019 % Change	2020 2019 % Change
Revenues Property Tax Valuation and Cost Advisory	$ 245,162 $ 213,483 14.8% 112,592 110,649 1.8%	$ 57,477 $ 54,234 6.0% 30,564 29,713 2.9%
Revenues	$357,754 $324,132 10.4%	$88,041 $83,947 4.9%
Adjusted EBITDA1 Property Tax Valuation and Cost Advisory	$ 76,961 $ 62,746 22.7% 15,127 13,337 13.4%	$ 12,242 $ 9,866 24.1% 4,428 3,540 25.1%
Adjusted EBITDA1	$92,088 $76,083 21.0%	$16,670 $13,406 24.3%
Adjusted EBITDA1Margin	25.7% 23.5%	18.9% 16.0%

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Q4 2020 Review

On a consolidated basis, revenues grew modestly by 0.7% year-over-year to $139.5 million and Adjusted EBITDA[1] increased by 19.7% to $26.7 million. Exchange rate movements against the Canadian dollar, namely the U.S. and U.K. currencies, benefitted consolidated revenues by nil% and Adjusted EBITDA[1] by 0.3%.

Consolidated profit from continuing operations, in accordance with IFRS, was $4.6 million, down 24.5% from $6.1 million in the same period in 2019. In addition to the higher Adjusted EBITDA performance, profits from continuing operations were impacted by costs restructuring related to the Company’s 2020 global restructuring program, and increased income tax from business operations, offset by lower amortization of some historical acquisition-related intangibles, lower interest related to the Company’s bank credit facilities, and its share of profit (loss) in the GeoVerra joint venture. Profit from continuing operations was $0.11 per share, basic and diluted, compared to $0.15 per share, basic and diluted, in the same period in 2019.

The global restructuring program that was initiated in the second quarter of 2020 resulted in one-time restructuring costs of $3.4 million incurred in the fourth quarter, relating primarily to employee severance costs. The restructuring was planned as part of the Company’s strategy to continue to focus and invest in technology and information services platforms.

Adjusted EPS[2] was $0.44, compared to $0.42 in the fourth quarter of 2019.

Altus Analytics revenues decreased by 5.6% to $51.5 million, however Over Time[3] revenues grew 11.5% to $43.5 million. Adjusted EBITDA[1] was up 8.2% to $5.8 million. Changes in foreign exchange negatively impacted revenues by 0.5% and Adjusted EBITDA[1] by 0.4%.

• The fourth quarter of 2020 reflected a full shift to a subscription model with a greater portion of Over Time[3] revenues, compared to the prior year which still included a hybrid sales model with both subscription and upfront perpetual license revenues. Although the new sales model change creates a stronger long-term economic model, the transition negatively impacts overall revenue growth in the transition period but has a positive effect on Over Time revenues.

• The healthy growth in Over Time revenues benefitted from higher sales of subscription licenses, Appraisal Management solutions, and data subscription products, supported by stable software maintenance revenues.

• Total revenues in the fourth quarter continued to be impacted by the expected decline in perpetual license revenues resulting from the transition, as well as lower revenues from software consulting and training services due to the ongoing impact of the COVID-19 pandemic.

• The transition of AE to cloud subscriptions progressed steadily throughout the fourth quarter and included two large service provider customers initiate their move to ARGUS Cloud at the end of the quarter. As at the end of the fourth quarter, 14% of Company’s total AE user base had been contracted on ARGUS Cloud and the Company had surpassed over 1,000 cloud-enabled AE customers, reaching an important milestone in its cloud transition journey.

• Adjusted EBITDA[1] performance improvement was driven by operating cost savings due to reduced

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travel and conference related costs.

CRE Consulting revenues increased by 4.9% to $88.0 million and Adjusted EBITDA[1] increased 24.3% to $16.7 million driven by continued growth at Property Tax. Changes in exchange rates benefitted CRE Consulting revenues by 0.3% and Adjusted EBITDA[1] by 0.6%.

• Property Tax revenues increased 6.0% to $57.5 million and Adjusted EBITDA[1] increased 24.1% to $12.2 million, benefitting from double-digit revenue growth in the U.K., partly offset by a decline in the U.S. and in Canada. In the U.K., the increase reflects a higher volume of the 2017 cycle cases being settled as there was continued improvements in available resources from the government to help reduce the case backlog. In the U.S., revenues were impacted by pandemic-related delays on settlement activity across several jurisdictions. In Canada, the growth in Ontario was offset by lower year-over-year comparative performance in Manitoba which was more favourably positioned in its cycle in the prior year.

• Valuation and Cost Advisory revenues were up modestly by 2.9% to $30.6 million and Adjusted EBITDA[1] improved by 25.1% to $4.4 million, reflecting improved revenues from the Canadian Cost business.

• The increase in CRE Consulting Adjusted EBITDA[1] resulted from the strong revenue increases in the Property Tax business, partly offset by compensation for increased headcount to continue growing the U.S. and U.K. Property Tax businesses. To offset the credit risk introduced by COVID-19, the Company recorded additional provisions on its trade receivables and unbilled revenue balances.

Corporate Costs (Recovery) were $(4.3) million, as compared to $(3.6) million in the same period in 2019. Corporate recoveries increased for the quarter on allocation of the higher accrual of variable compensation and due to lower travel and office related expenditures, offset by higher professional advisory fees. In the first three quarters of the year, certain variable compensation costs for the business units are accrued in the Corporate segment, subject to the overall finalization at year-end. In the fourth quarter, the accrued costs are allocated to the business units. Starting in the first quarter of 2021, the Company plans to accrue and allocate these variable compensation costs for the business units directly to the segments on a quarterly basis. A table detailing the 2020 results under the new treatment is posted on the Company’s website under the Investor Relations section.

Balance Sheet & 2021 Outlook Summary

Altus Group’s balance sheet remains healthy, reinforcing the Company’s financial flexibility to pursue its growth strategy and fund the proposed acquisition of Finance Active using primarily debt. At the end of the fourth quarter, bank debt stood at $123.0 million, representing a funded debt to EBITDA leverage ratio of 1.09 times (well below its maximum limit of 4.00 times) and cash and cash equivalents was $69.6 million.

Through Altus Group’s industry leading capabilities, the Company remains competitively positioned to capitalize on the growing demand for a wide range of client needs in CRE technology, data and advisory solutions with a stable revenue base across economic cycles.

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Altus Analytics continues to represent a very attractive growth area for Altus Group supported by favourable market trends of growing global demand for CRE-related technology and data solutions. The successful execution of the Company’s annual strategic initiatives is expected to drive sustained year-over-year revenue growth in 2021, particularly double-digit growth in Over Time revenues, and a year-over-year improvement in Adjusted EBITDA margins. Management remains committed to its aspirational long-term goal of achieving revenues of $400 million by the end of 2023. The Company has multiple paths to accelerate its revenue growth over the next three years, including driving double digit organic revenue growth and accelerating its expansion into strategic adjacencies in debt and data analytics through both internal and acquisitive investments.

The CRE Consulting segments continue to represent an attractive growth area for Altus Group driven by a steady demand for specialized services. Growth is expected to be driven primarily by the Property Tax business which is poised for another record revenue year, supported by a healthy pipeline of cases to be settled, catch up from COVID-19 related delays in 2020, and higher annuity billings in the U.K. The Valuation and Cost Advisory practices enjoy significant market share and, as a result, are expected to continue growing modestly driven by operating leverage, enhanced efficiency and productivity from technology, and improved cross-selling across the organization.

Q4 & Full Year 2020 Results Conference Call & Webcast

Date: Wednesday, February 24, 2021 Time: 5:00 p.m. (ET) Webcast: altusgroup.com (under Investor Relations) Live Call: 1-800-319-4610 (toll-free North America) or 416-915-3239 (Toronto area) Replay: available via webcast at altusgroup.com

About Altus Group Limited

Altus Group Limited is a leading provider of software, data solutions and independent advisory services to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Commercial Real Estate Consulting, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,200 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include many of the world’s largest commercial real estate industry participants. Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the Toronto Stock Exchange under the symbol AIF.

For more information on Altus Group, please visit: www.altusgroup.com.

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Definitions & Notes

1The Company’s definition of Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“ Adjusted EBITDA ”), a nonGAAP measure used to measure financial performance, has been modified subsequent to the classification of the Geomatics business as a discontinued operation and the launch of GeoVerra, to adjust for profit (loss) from discontinued operations and share of profit (loss) of joint venture.

2The Company’s definition of A djusted EPS , a non-GAAP measure used to measure financial performance, has been modified subsequent to the classification of the Geomatics business as a discontinued operation and the launch of GeoVerra, to adjust for profit (loss) from discontinued operations and share of profit (loss) of joint venture.

3 Over Time revenues , a metric introduced in the first quarter of 2020 to replace the historic reporting of “recurring revenues”, are consistent with IFRS 15, Revenue from Contracts with Customers. These Over Time revenues are comprised of subscription revenues recognized on an over time basis in accordance with IFRS 15, maintenance revenues from legacy perpetual licenses, Appraisal Management revenues, and data subscription revenues. The main difference between “Over Time revenues” and the historic “recurring revenue” disclosure is that it does not include the point in time revenue component recognized up front for on-premise subscription contracts recognized in accordance with IFRS 15.

4 AE software maintenance retention rate , a non-GAAP measure, is calculated as a percentage of AE software maintenance revenue retained upon renewal; it represents the percentage of the available renewal opportunity in a fiscal period that renews, calculated on a dollar basis, excluding any growth in user count or product expansion.

5 Cloud adoption rate , a non-GAAP measure, is a metric introduced in the first quarter of 2020 that represents the percentage of the total AE user base contracted on the ARGUS Cloud platform. It includes both new AE cloud users as well as those who have migrated from the legacy AE on-premise software.

Non-IFRS Measures

Altus Group uses certain non-IFRS measures as indicators of financial performance. Readers are cautioned that they are not defined performance measures, and do not have any standardized meaning under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. We believe that these measures are useful supplemental measures that may assist investors in assessing an investment in our shares and provide more insight into our performance.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), represents profit (loss) from continuing operations before income taxes, adjusted for the effects of: occupancy costs calculated on a similar basis prior to the adoption of IFRS 16, finance costs (income), net - other, depreciation of property, plant and equipment and amortization of intangibles, depreciation of right-ofuse assets, finance costs (income), net – leases, acquisition and related transition costs (income), unrealized foreign exchange (gains) losses, (gains) losses on disposal of property, plant and equipment and intangibles, share of (profit) loss of joint venture, impairment charges, non-cash share-based compensation costs, (gains) losses on equity derivatives net of mark-to-market adjustments on related restricted share units (“RSUs”) and deferred share units (“DSUs”) being hedged, (gains) losses on derivatives, restructuring costs (recovery), (gains) losses on investments, (gains) losses on hedging transactions, and other costs or income of a non-operating and/or nonrecurring nature. Subsequent to the classification of the Geomatics business as discontinued operations and the launch of GeoVerra, the measurement of Adjusted EBITDA has been modified to reflect adjustments for: profit (loss) from discontinued operations and share of (profit) loss of joint venture. Adjusted EBITDA margin represents the percentage factor of Adjusted EBITDA to revenues.

Adjusted Earnings (Loss) per Share (“Adjusted EPS”), represents basic earnings (loss) per share from continuing operations adjusted for the effects of: occupancy costs calculated on a similar basis prior to the adoption of IFRS 16, depreciation of right-of-use assets, finance costs (income), net - leases, amortization of intangibles of acquired businesses, unrealized foreign exchange losses (gains), (gains) losses on disposal of property, plant and equipment and intangibles, non-cash share-based compensation costs, losses (gains) on equity derivatives net of mark-to-market adjustments on related RSUs and DSUs being hedged, interest accretion on contingent consideration payables,

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restructuring costs (recovery), losses (gains) on hedging transactions and interest expense (income) on swaps, acquisition and related transition costs (income), losses (gains) on investments, share of (profit) loss of joint venture, impairment charges, (gains) losses on derivatives, and other costs or income of a non-operating and/or non-recurring nature. Subsequent to the classification of the Geomatics business as discontinued operations and the launch of GeoVerra, the measurement of Adjusted EPS has been modified to reflect adjustments for: profit (loss) from discontinued operations and share of (profit) loss of joint venture. The basic weighted average number of shares is adjusted for the effects of weighted average number of restricted shares. All of the adjustments are made net of tax.

Forward-Looking Information

Certain information in this press release may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes, but is not limited to, the discussion of our business and operating initiatives, focuses and strategies, our expectations of future performance for our various business units and our consolidated financial results, including the guidance on financial expectations, and our expectations with respect to cash flows and liquidity and the proposed acquisition of Finance Active.. Generally, forward-looking information can be identified by use of words such as “may”, “will”, “expect”, “believe”, “plan”, “would”, “could”, “remain” and other similar terminology. All of the forward-looking information in this press release is qualified by this cautionary statement.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forwardlooking information. The material factors or assumptions that we identified and applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to: engagement and product pipeline opportunities in Altus Analytics will result in associated definitive agreements; settlement volumes in the Property Tax business will occur on a timely basis and that assessment authorities will process appeals in a manner consistent with expectations; the successful execution of our business strategies; consistent and stable economic conditions or conditions in the financial markets; consistent and stable legislation in the various countries in which we operate; no disruptive changes in the technology environment; the opportunity to acquire accretive businesses; the successful integration of acquired businesses; negotiation of a definitive agreement to purchase Finance Active and satisfaction of all conditions associated with such purchase; and the continued availability of qualified professionals.

The COVID-19 pandemic has cast additional uncertainty on each of these factors and assumptions. There can be no assurance that they will continue to be valid. Given the rapid pace of change with respect to the impact of the COVID-19 pandemic, it is difficult to make further assumptions about these matters. The duration, extent and severity of the impact the COVID-19 pandemic, including measures to prevent its spread, will have on the Company’s business is uncertain and difficult to predict at this time. As of the date of this press release, many of our offices and clients remain subject to limitations and restrictions set to reduce the spread of COVID-19, and a significant portion of our employees continue to work remotely.

Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Those risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the general state of the economy; the COVID-19 pandemic; currency; financial performance; financial targets; the commercial real estate market; industry competition; acquisitions; cloud subscriptions transition; software renewals; professional talent; third party information; enterprise transactions; new product introductions; technological change; intellectual property; technology strategy; information technology governance and security; product pipeline; property tax appeals; legislative and regulatory changes; fixed-price and contingency engagements; appraisal and appraisal management mandates; the Canadian multi-residential market; customer concentration and the loss of material clients; interest rates; credit; income tax matters; health and safety hazards; contractual obligations; legal proceedings; insurance limits; ability to meet solvency the requirements necessary to make dividend payments; leverage and financial covenants; share price; capital investment; and the issuance of additional common shares, as well as those described in this press release, and our annual publicly filed documents, including the MD&A and Annual Information Form for the year ended December 31, 2019 (which are available on SEDAR at www.sedar.com).

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Given these risks, uncertainties and other factors, investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information reflects management’s current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward-looking information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward-looking information contained herein is current as of the date of this press release and, except as required under applicable law, we do not undertake to update or revise it to reflect new events or circumstances. Additionally, we undertake no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, our financial or operating results, or our securities.

Certain information in this press release may be considered as “financial outlook” within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding Altus Group’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

FOR FURTHER INFORMATION PLEASE CONTACT:

Camilla Bartosiewicz

Vice President, Investor Relations, Altus Group Limited (416) 641-9773 camilla.bartosiewicz@altusgroup.com

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Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of Canadian Dollars, Except for Per Share Amounts)

	For the year ended December 31, 2020 For the year ended December 31, 2019
Revenues	$ 561,156 $525,717
Expenses Employee compensation Occupancy Office and other operating Depreciation of right-of-use assets Depreciation of property, plant and equipment Amortization of intangibles Acquisition and related transition costs (income) Share of (profit) loss of joint venture Restructuring costs (recovery) (Gain) loss on investments Finance costs (income), net - leases Finance costs(income),net - other	354,951 329,092 7,591 7,288 102,193 101,893 11,210 12,316 5,620 5,854 24,784 29,533 (887) 188 (459) - 11,984 (296) (21) (276) 2,494 2,711 4,138 6,567
Profit(loss) from continuing operations before income taxes	37,558 30,847
Income tax expense(recovery)	10,549 6,956
Profit(loss) for theyear from continuing operations	$ 27,009 $23,891
Profit(loss)for theyear from discontinued operations	(5,576) (5,697)
Profit(loss) for theyear attributable to shareholders	$ 21,433 $18,194
Other comprehensive income (loss): Items that may be reclassified to profit or loss in subsequent periods: Currency translation differences Items that are not reclassified to profit or loss in subsequent periods: Change in fair value of FVOCI investments,net of tax	1,533 (13,772) (987) 92
Other comprehensive income(loss), net of tax	546 (13,680)
Total comprehensive income (loss) for the year, net of tax, attributable to shareholders	$ 21,979 $ 4,514
Earnings (loss) per share attributable to the shareholders of the Company during the year Basic earnings (loss) per share: Continuing operations Discontinued operations Diluted earnings (loss) per share: Continuing operations Discontinued operations	$0.67 $0.61 $(0.14) $(0.14) $0.66 $0.60 $(0.14) $(0.14)

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Consolidated Balance Sheets

As at December 31, 2020 and 2019

(Expressed in Thousands of Canadian Dollars)

Consolidated Balance Sheets As at December 31, 2020 and 2019 (Expressed in Thousands of Canadian Dollars)
	December 31, 2020 December 31, 2019
Assets Current assets Cash and cash equivalents Trade receivables and other Income taxes recoverable Derivative financial instruments	$ 69,637 $ 60,262 193,072 181,955 3,385 2,403 2,477 1,449
	268,571 246,069
Non-current assets Trade receivables and other Derivative financial instruments Investments Investment in joint venture Deferred tax assets Right-of-use assets Property, plant and equipment Intangibles Goodwill	1,370 3,696 8,800 5,975 10,356 11,481 15,309 - 19,930 22,163 51,690 63,729 20,376 29,037 77,928 92,595 261,070 260,380
	466,829 489,056
Total Assets	$ 735,400 $ 735,125
Liabilities Current liabilities Trade payables and other Income taxes payable Lease liabilities Borrowings	$ 140,294 $ 128,566 1,190 4,548 11,700 12,564 - 137,929
	153,184 283,607
Non-current liabilities Trade payables and other Lease liabilities Borrowings Deferred tax liabilities	17,206 16,197 51,883 63,419 122,432 334 7,246 11,916
	198,767 91,866
Total Liabilities	351,951 375,473
Shareholders’ Equity Share capital Contributed surplus Accumulated other comprehensive income (loss) Retained earnings(deficit)	529,866 509,646 30,428 24,447 40,791 40,245 (217,636) (214,686)
Total Shareholders’ Equity	383,449 359,652
Total Liabilities and Shareholders’ Equity	$ 735,400 $ 735,125

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Consolidated Statements of Cash Flows For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of Canadian Dollars)

Consolidated Statements of Cash Flows For the Years Ended December 31, 2020 and 2019 (Expressed in Thousands of Canadian Dollars)
	For the year ended December 31, 2020 For the year ended December 31, 2019
Cash flows from operating activities Profit (loss) from continuing operations before income taxes Profit(loss)from discontinued operations before income taxes	$ 37,558 $ 30,847 (5,576) (5,697)
Profit (loss) before income taxes Adjustments for: Depreciation of right-of-use assets Depreciation of property, plant and equipment Amortization of intangibles Finance costs (income), net - leases Finance costs (income), net - other Share-based compensation Unrealized foreign exchange (gain) loss (Gain) loss on investments (Gain) loss on disposal of property, plant and equipment and intangibles (Gain) loss on equity derivatives and interest rate swaps Share of (profit) loss of joint venture Impairment charge - leases Impairment charge - goodwill Fair value loss (gain) on net assets directly associated with discontinued operations (Gain) loss on sale of the discontinued operations Net changes in operatingworkingcapital	$ 31,982 $ 25,150 11,262 13,440 5,731 7,838 24,785 29,995 2,559 2,885 4,123 6,567 15,398 9,839 165 994 (21) (276) 518 274 (3,991) (6,837) (459) - 36 69 - 6,400 5,163 - (483) - (1,910) (23,110)
Net cash generated by (used in) operations Less: interest paid on borrowings Less: interest paid on leases Less: income taxes paid Add: income taxes refunded	94,858 73,228 (3,547) (5,045) (2,559) (2,885) (19,051) (15,454) 2,599 2,581
Net cashprovided by (used in) operating activities	72,300 52,425
Cash flows from financing activities Proceeds from exercise of options Financing fees paid Proceeds from borrowings Repayment of borrowings Payments of principal on lease liabilities Dividends paid Treasurysharespurchased under the Restricted Share Plan	11,988 6,877 (723) - 38,135 21,600 (53,265) (12,872) (11,960) (11,844) (21,859) (19,199) (3,614) (5,353)
Net cashprovided by (used in) financing activities	(41,298) (20,791)
Cash flows from investing activities Purchase of investments Cash contribution to investment in joint venture Purchase of intangibles Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment and intangibles Proceeds from disposal of investment Acquisitions,net of cash acquired	(365) (708) (3,794) - (770) (155) (3,580) (5,786) 96 147 - 549 (12,490) (12,477)
Net cashprovided by (used in) investing activities	(20,903) (18,430)
Effect of foreign currencytranslation	(724) (1,680)
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents,beginningofyear	9,375 11,524 60,262 48,738
Cash and cash equivalents, end of year	$ 69,637 $ 60,262

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