(All amounts in this release are in Canadian Dollars)
Ottawa, Ontario – May 9, 2018: Calian Group Ltd. (TSX.CGY) today released unaudited results for the second quarter ended March 31, 2018.
The Company reported revenues for the quarter of $77.1 million, its highest in history representing a 15% increase from the $67.1 million reported in the same quarter of the previous year. For the six-month period ended March 31, 2018 the Company reported revenues of $152.9 million, a 13% increase compared to revenues of $135.8 million in the prior year.
EBITDA(1) for the second quarter was $6.0 million, a 3% decrease compared to $6.2 million in the same quarter of the previous year and for the six-month period ended March 31, 2018, EBITDA(1) was $12.4 million, a 9% increase compared to $11.4 million in the prior year.
Net profit for the second quarter was $3.9 million or $0.50 per share basic and diluted, an 8% decrease compared to $4.2 million or $0.55 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $7.9 million or $1.03 per share basic and $1.02 per share diluted, an increase of 5% compared to net profit of $7.6 million or $1.00 per share basic and diluted in the previous six-month period.
See caution regarding non-GAAP measures at the end of this press release
"Our strong performance this quarter demonstrates Calian’s ability to provide best in class services throughout our service offerings with customers that value our consistent level of quality and continue to trust Calian with their initiatives", stated Jacqueline Gauthier, CFO."
"I am extremely proud of the team's efforts this quarter with all service lines contributing to our success. During my absence, in addition to focusing on the day to day delivery efforts, management continued to focus and execute on Calian’s key strategic initiatives. I’m currently staying informed by participating in meetings remotely in support of the team’s continued progress towards organic and acquisitive growth", stated Ford.
“I am also excited by the recent contract signings in support of our customer retention and customer diversification pillars of our growth strategy. The Royal Canadian Air Force $20 million contract maintains a long term valued relationship in the air worthiness domain. For our IT services, the Canada Revenue Agency as well as Shared Service Canada signings are net new customers in our public sector market”, continued Ford.
Traditional markets in which Calian operates are stable and management expects organic revenue and earnings growth 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 2018 to be in the range of $290 million to $310 million, net profit in the range of $1.90 to $2.20 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.