Access the full report on the Calian Financials web page.

Register for the conference call on Thursday, May 11, 2023, 8:30 a.m. Eastern Time.

“We continued to drive gross margin performance above 30% for the fourth consecutive quarter,” said Patrick Houston, Calian Chief Financial Officer. “While our adjusted EBITDA was the highest second quarter on record, our margin was down due to inflationary pressures and ongoing investments in growth and delivery capacity. These investments will help position us to capitalize on our long-term growth objectives.”

Revenues increased 19%, from $142 million to $169 million, driven by double-digit growth in Information Technology & Cyber Solutions (ITCS), Advanced Technologies and Learning segments.

• ITCS: Revenues increased 53% to $49 million mainly driven by the company’s strong performance from its expansion into the United States with the acquisition of Computex last March.
• Learning: Revenues grew 16% to $29 million driven by its organic growth initiatives, including business development, research & development of software tools and further international expansion, which increased customer share of wallet and attracted new customers.
• Advanced Technologies: Revenues increased 18% to $47 million driven by the ramping up of ground systems projects, coupled with increased demand for GNSS products and Ag Tech product deliveries.
• Health: Revenues decreased 4% to $44 million due to lower COVID-19 related business which declined 19% year-over-year, partially offset by higher demand generated from the mainstay health services and Contract Research Organization services.

Liquidity and Capital Resources

Calian generated $11 million in operating free cash flows¹ in the second quarter. The Company used its cash primarily to pay debt, earnouts on past acquisitions and dividends. The Company ended the quarter with net cash of $46 million and an available credit facility resulting in total available liquidity of $126 million. 

Purchase Agreement to Acquire Hawaii Pacific Teleport

On March 9, 2023, the Company announced it entered into a definitive purchase agreement to acquire the assets of US-based Hawaii Pacific Teleport for up to CAD$62M (US$46M). Completion of this transaction is subject to US regulatory approvals and other customary closing conditions. Calian anticipates the transaction to close in the second half of fiscal year 2023. See press release for further details.

Management Departure

Today, Calian announced the resignation of Sacha Gera, President IT & Cyber Solutions (ITCS), who has decided to pursue a leadership role with a local software company. Mr. Gera will remain with the company until the end of May. “Sacha has been a key part of the Calian senior leadership team and has made significant contributions to the growth and success of our company over these past two years,” said Kevin Ford, Calian CEO. “He has built a strong leadership team within our ITCS segment that will ensure the continuity of our day-to-day operations and maintain our momentum in both Canada and the United States. I want to thank him for all of his support and wish him all the best in his future endeavours.” 

Quarterly Dividend

Today, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable June 7, 2023, to shareholders of record as of May 24, 2023. Dividends paid by the Corporation are considered “eligible dividend” for tax purposes.

Guidance Reiterated

“With new contract signings of $147 million, a robust backlog of $1.2 billion combined with increased recurring revenue streams, we are on pace to deliver another record year in FY23,” said Mr. Ford.