Calian Reports Fourth Quarter Results 2015
Ottawa, Ontario – November 10, 2015: Calian Technologies Ltd. (TSX.CTY) today released unaudited results for the fourth quarter ended September 30, 2015.
The Company reported revenues for the quarter of $60.9 million, a 12% increase from the $54.4 million reported in the same quarter of the previous year. For the year ended September 30, 2015 the Company reported revenues of $242.3 million, a 15% increase compared to revenues of $211.3 million in the prior year.
EBITDA(1) for the fourth quarter was $4.9 million, compared to $4.5 million in the same quarter of the previous year and for the year ended September 30, 2015, EBITDA(1) was $17.2 million, compared to $16.2 million in the prior year.
Net profit for the fourth quarter was $2.9 million or $0.39 per share basic and diluted, compared to $2.6 million or $0.35 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $9.8 million or $1.33 per share basic and diluted compared to net profit of $10.6 million or $1.44 per share basic and diluted in the previous year. Adjusted Net Profit(1) for the fourth quarter was $3.1 million or $0.43 per share basic and diluted, compared to $2.8 million or $0.38 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, adjusted net profit(1) was $10.8 million or $1.48 per share basic and diluted compared to $10.7 million or $1.45 per share basic and diluted in the previous year.
(1) See caution regarding non-GAAP measures at the end of this press release
“Our 12% improvement in revenues this quarter is a reflection of the revenue growth in both divisions – 24% growth in our Systems Engineering Division (SED) revenues and 8% growth in our Business and Technology Services (BTS) division. We experienced organic growth in all of our services this quarter with the BTS division also obtaining strong support from our recent acquisitions. Cash flows continue to improve with an increase in EBITDA this quarter compared to the prior year” stated Jacqueline Gauthier, CFO.
"Our full year revenue attainment of $242 million represents a 15% increase year over year and the highest revenue level for Calian in our 33 year history" stated Kevin Ford, President and CEO. "Despite challenging market conditions I am very proud of the team's efforts to execute our growth strategy, increase cash earnings by more than $1 million and continue to provide a solid return to our shareholders, paying $8.3 million in dividends this year" continued Ford.
"Calian is a diverse company and our growth strategy is to embrace this diversity through management focus and the execution of the key components of our strategy – customer retention, customer diversification, evolution of our service lines and continuous process improvement. Combined with a strong backlog, a high customer satisfaction rate and an incredibly talented and dedicated team, I am very excited about Calian's potential" stated Ford.
"To reflect this diversity and although the company still has very deep technology roots, with expansion into areas such as healthcare and training, management has obtained board agreement to ask for shareholder approval to rename Calian Technologies Ltd. to Calian Group Ltd. to more accurately reflect the current business activities of the Company. Shareholder approval will be solicited during our next Annual Meeting of Shareholders to be held February 5, 2016" continued Ford.
During fiscal 2016, management will continue to focus on its key strategic initiatives. Traditional markets in which Calian operates in have stabilized recently and management expects revenue and earnings growth will be achieved organically in most or all of its service lines through the successful execution of our growth strategy. However, we must caution that revenues realized are ultimately dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2016 to be in the range of $250 million to $280 million, net profit per share in the range of $1.40 to $1.70 per share and adjusted net profit(1) in the range of $1.49 to $1.79 per share.
Caution regarding non-GAAP measures:
This press release is based on reported earnings in accordance with IFRS. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, adjusted net profit and adjusted net profit per share. These non-GAAP measures are mainly derived from the interim consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
Calian employs over 2,300 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities are diverse and include the provision of business and technology services to industry and government in the health, training, engineering and IT services domains as well as the design, manufacturing and maintenance of complex systems to the communications and defence sectors. Calian's services are delivered through two divisions. The Business and Technology Services (BTS) Division is located in Ottawa. This division delivers outsourcing services for a variety of technical and professional functions and provides health services to numerous domestic customers. Our strength lies in understanding clients’ needs, recruiting highly qualified personnel who understand and meet those needs, and then effectively managing those personnel within our customers’ framework. 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.
For further information, please visit our website at www.calian.com, or contact us at [email protected] Kevin Ford President and Chief Executive Officer 613-599-8600 Jacqueline Gauthier Chief Financial Officer 613-599-8600
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; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. 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. 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.