Calian Wins Contracts For Health Services Valued at Up to $1 Billion
Ottawa, ON, September 29, 2017 — Calian Group Ltd. (TSX: CGY) today announced that it has successfully re-won the Health Care Providers Requirements (HCPR) Contract for the provision of health support services to the Canadian Armed Forces (CAF). Two additional contracts were also awarded for the provision of health support services to the Royal Canadian Mounted Police (RCMP) and Veterans Affairs Canada (VAC).
The HCPR contract with CAF is a renewal of the Health Services Support Contract (HSSC) that Calian has held since 2004. The HCPR contract has an initial term of four (4) years with an initial value of $275 million and an option to extend the contract for up to eight (8) additional years, with an aggregate total contract value for the 12 years of up to $875 million.
Additional contracts with similar terms were simultaneously awarded to Calian for the provision of health support services to the RCMP and VAC with initial four (4) year term values of $19 million and $17 million, respectively, and aggregate total contract values for the full 12-year period of up to $60 million and $55 million, respectively.
The current contract with CAF (HSSC) expires March 31, 2018 and generates approximately $65-70 million of revenues per year. These new contracts are expected to begin April 1, 2018 and while the cumulative level of effort is expected to increase with these new contracts, the exact amount of increased scope has yet to be determined.
“This is a significant win for Calian Health that reaffirms our commitment to quality in the health support services we have delivered to CAF for the past 12 years. We are thrilled to have the opportunity to continue to provide our 'superior'-rated health services in support of the serving men and women of the Canadian Armed Forces as well as their comrades in the RCMP and at VAC," said Scott Murray, VP of Health Services at Calian.
In order to support the expanded scope of these contracts, Calian has partnered with Bayshore. As two of the leading health services providers in Canada, Calian and Bayshore are uniquely positioned to deliver the highest quality of care to the full complement of communities represented in these contracts.
"Bayshore strives to make a difference in people’s lives and there is none more deserving of excellent health care services than those who offer their lives to protect and serve us. I am honoured that Bayshore has been chosen to be part of the team to provide health care personnel for the Canadian Armed Forces, the Royal Canadian Mounted Police, and Veterans Affairs Canada,” states Stuart Cottrelle, President of Bayshore Healthcare Ltd., a national health care organization with over 12,000 staff across all provinces. “We look forward to the opportunity to help each department achieve their health care goals. We believe that our expertise combined with Calian’s experience over the past 12 years offers an excellent opportunity for us to further enhance the great work done by Calian in providing health care personnel and in developing auxiliary programs to support members, veterans, and their families.”
"Our commitment to delivery excellence and customer satisfaction has enabled Calian to not only retain current customers but attract several new clients in the health domain, directly supporting our corporate strategies of customer retention and diversification as well as our strategic goal of becoming the largest health services organization in Canada. This contract win provides our Health team with a solid foundation from which they will continue to grow and diversify our health services on a national scale," stated Kevin Ford, President and CEO.
Calian will hold a telephone conference call at 10:00 a.m. Eastern Time on October 2, 2017 to discuss the award of these Health Care Providers Requirements Contracts. Interested participants from the financial & media community should call 1-800-263-0877 or (613) 216-0029 at approximately 9:55 a.m. The conference ID is 6182200. Following the presentation, interested parties will be invited to participate in a question and answer session. The conference call will be available for a period of 14 days for playback and is accessible by dialing 1-888-203-1112, passcode 6182200.
About Calian Health
Calian Health is one of Canada's largest national health services companies with over 10 years of experience in the management of health care professionals and health programs, as well as the operation and management of primary care and occupational health clinics. With a network of over 1,500 health care professionals, Calian supports over six million patient visits per year at over 180 clinic locations across Canada.
Bayshore HealthCare is one of the country’s leading providers of home and community health care services and is a Canadian-owned company. With over 100 locations across the country, including 60 home care offices, 16 pharmacies and 65 community care clinics, Bayshore has more than 12,000 staff members and provides care to over 200,000 clients. Its services are purchased by government care programs, insurance companies, workers’ compensation boards, health care organizations, the corporate sector and the public. The Bayshore brand extends across three business divisions: Bayshore Home Health (medical and non-medical home care and staffing services), Bayshore Specialty Rx (specialty pharmacy, infusion and pharmaceutical patient support services), and Bayshore Therapy & Rehab (physiotherapy and rehabilitation services). The company’s goal is to enhance the quality of life, well-being, dignity and independence of Canadians of all ages. Bayshore HealthCare has been a recipient of Canada’s Best Managed Companies award since 2006.
Calian employs over 2800 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities are diverse with services delivered through two divisions. Calian's Systems Engineering Division (SED) located in Saskatoon plans, designs and implements complex communication systems for many of the world's space agencies and leading satellite manufacturers and operators. SED also provides contract manufacturing services for both private sector and military customers in North America. The Business and Technology Services (BTS) Division is headquartered in Ottawa and includes the provision of business and technology services to industry, public and government in the health, training, engineering and IT services domains.
Kevin Ford Jacqueline Gauthier Media inquiries:
President and Chief Executive Officer Chief Financial Officer Simon Doyle
613-599-8600 613-599-8600 613-599-8600 x 205
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Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as "intend", "anticipate", "believe", "estimate", "expect" or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Calian to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; and the impact of consolidations in the business services industry. Additional risks and uncertainties affecting Calian can be found in Management’s Discussion and Analysis of Results of Operations and its Annual Information Form for the fiscal year ended September 30, 2016 on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein and our current objectives or strategies may change. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.