(All amounts in this release are in Canadian Dollars)
Ottawa, Ontario – May 14, 2019: Calian Group Ltd. (TSX:CGY) today released unaudited results for the second quarter ended March 31, 2019.
Second quarter 2019 highlights:
- Revenue at $83.4 million, representing Calian’s third consecutive quarter of record revenue
- EBITDA(1) of $6.6 million
- 70th consecutive profitable quarter
- New contract signings of $82 million
- Dividend of $0.28/share
The Company reported revenues for the quarter of $83.4 million, representing a 7.8% increase from the $77.4 million reported in the same quarter of the previous year. For the six-month period ended March 31, 2019 the Company reported revenues of $163.3 million, a 6.4% increase compared to revenues of $153.5 million in the prior year.
EBITDA (1) for the second quarter was $6.6 million or $0.84 per share basic and diluted, which increased when compared with the $6.1 million or $0.79 per share basic and $0.78 per share diluted in the same quarter of the previous year. On a year-to-date basis, EBITDA (1) was $12.3 million or $1.57 per share basic and $1.56 per share diluted, a decrease compared to the $12.6 million or $1.64 basic and $1.62 diluted in the prior year.
Net profit for the second quarter was $3.9 million or $0.50 per share basic and $0.49 per share diluted, consistent with the $3.9 million or $0.51 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $7.2 million or $0.93 per share basic and $0.92 per share diluted, a decrease of 11.1% compared to net profit of $8.1 million or $1.05 per share basic and $1.04 per share diluted in the prior year.
"Our profitable growth agenda has continued this quarter, having now set revenue records for three consecutive quarters,” stated Patrick Houston, CFO. “Our BTS division has continued its strong performance with revenue growth of 14% compared to Q2 of the previous year, while our Systems Engineering Division has continued to build capacity to deliver on its backlog of programs in the coming quarters. We also increased EBITDA by 15% compared to the previous quarter, which included non-recurring costs of $0.6 million related to our acquisition of SatService on April 1, 2019. On a year to date basis, EBITDA is slightly down due to increased operating expenses from recent acquisitions and additional investments.”
“The strength of our diversity was evident this quarter as our BTS division continued its revenue and EBITDA growth, led by our Health group,” stated Kevin Ford, CEO. “Our customer retention focus was evident again this quarter with multiple new contracts and extensions with existing customers in our training, IT and satellite services totaling $82 million,” added Ford. “We are also very excited about our recent announcements related to Calian’s Systems Engineering Division (SED), namely our acquisition of Germany-based SatService, Calian’s first international acquisition, as well as release of a new line of advanced medium and large aperture radio frequency (RF) antennas with cutting-edge performance for the most demanding satellite system applications.
“We see SatService, as another growth avenue for Calian SED as SatService brings a talented team with new products and customers. This acquisition supports the customer diversification and service line evolution pillars of our growth strategy by bringing new innovations and products in our satellite communications business while increasing our capacity for growth in new customers located in the European region.”
“Our new carbon fiber antennas are the direct result of targeted R&D investments at Calian SED. They represent a significant achievement in the service line evolution pillar of our growth strategy, and I am looking forward to helping our global customers improve their satellite communications with this advanced technology. With the manufacture of these composite antenna systems right here in Canada at Calian SED’s Saskatoon manufacturing facility, I see this as a true demonstration of Canadian innovation and Calian’s innovation agenda,” stated Ford.
“At 70 consecutive profitable quarters, strong cash flows, a continued focus on our innovation agenda and a dedicated employee base, I am confident we will continue to make progress against all elements of our four-pillar strategic growth framework,” stated 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 2019 to be in the range of $330 million to $360 million, EBITDA per share in the range of $3.60 to $3.90 and net profit in the range of $2.05 to $2.35 per share.