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(All amounts in this release are in Canadian Dollars)

Ottawa, Ontario August 9, 2018 – Calian Group Ltd. (TSX.CGY) today released unaudited results for the third quarter ended June 30, 2018.

The Company reported revenues for the quarter of $73.4 million, representing a 9% increase from the $67.3 million reported in the same quarter of the previous year. For the nine-month period ended June 30, 2018 the Company reported revenues of $226.2 million, an 11% increase compared to revenues of $203.1 million in the prior year.

EBITDA(1) for the third quarter was $6.0 million, a 9% increase compared to $5.5 million in the same quarter of the previous year and for the nine-month period ended June 30, 2018, EBITDA(1) was $18.4 million, a 9% increase compared to $16.9 million in the prior year.

Net profit for the third quarter was $3.9 million or $0.50 per share basic and diluted, an 11% increase compared to $3.5 million or $0.46 per share basic and $0.45 per share diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $11.8 million or $1.53 per share basic and $1.52 per share diluted, an increase of 6% compared to net profit of $11.1 million or $1.46 per share basic and $1.45 diluted in the previous nine-month period.

See caution regarding non-GAAP measures at the end of this press release

"Our four pillar growth strategy focus on service line evolution, customer retention and diversification, and continuous improvement, continues to be a driving force of our success as each service line continues to make progress in each of these elements; resulting in an EBITDA improvement of 9% for the year to date", stated Jacqueline Gauthier, CFO."

“Once again, the Calian team has delivered excellent results for our customers and shareholders. Having this consistent track record of profitable growth does not happen without a high performing team committed to execution, and I wish to thank our staff for another very strong quarter”, stated Kevin Ford, CEO.

“With strong financial results, the quarter has also been very exciting on numerous fronts. At our SED division, the signing of our largest satellite ground systems contract in our history combined with our continued investment in innovation focusing not only our core satellite sector, but as well new areas such as cable and agriculture technologies positions us well for the future. At the BTS division the closing of the Secure Technologies acquisition, the successful launch of our new DND health services contract and numerous contract wins across Health, Training and IT services demonstrates that the strategy to embrace our diverse service offerings is on track. With our contracted backlog of over one billion dollars, positive cash flows and a strong balance sheet, Calian is uniquely positioned to leverage our strong financial position to continue to invest in both organic and acquisitive growth”, continued Ford.

“As well, we are happy to announce the closing of a small acquisition in the health space: PriorityOne, which specializes in psychological assessment and selection services to the Canadian law enforcement community, We believe the market for psychological services will continue to grow, and this acquisition strengthens our services in this critical area.”, stated Ford.

“Finally, on a personal note, my recovery is going well and I am back in the office expecting to be fulltime in September” 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 2018 to be in the range of $300 million to $315 million, net profit in the range of $1.95 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.

About Calian

Calian employs over 3,000 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. The Business and Technology Services (BTS) Division is headquartered in Ottawa and includes the provision of business and technology services and solutions to industry, public and government in the health, training, engineering and IT services domains. 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, 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; 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, 2017 on SEDAR at 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.

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