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Ottawa, Ontario February 1, 2017 – Calian Group Ltd. (TSX.CGY) today released unaudited results for the first quarter ended December 31, 2016.

The Company reported revenues for the quarter of $68.7 million, a 6% increase from the $64.5 million reported in the same quarter of the previous year. EBITDA(1) for the first quarter was $5.2 million in line with the $5.2 million reported in the previous year.

Net profit for the first quarter was $3.4 million or $0.45 per share basic and diluted, a 10% increase compared to $3.1 million or $0.42 per share basic and diluted in the same quarter of the previous year. Adjusted Net Profit(1) for the first quarter was $3.4 million or $0.45 per share basic and diluted, compared to $3.3 million or $0.45 per share basic and diluted in the same quarter of the previous year.

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

"Our increase in revenues and net profit this quarter is a reflection of continued progression in all of our service lines. We have very strong cash flows, and we continue to invest in our long term growth strategy primarily through new headcount in our key focus areas" stated Jacqueline Gauthier, CFO.

"Our revenues this quarter are the highest Q1 revenues in our history and the growth is all organic" stated Kevin Ford, President and CEO. "In 2017 we are celebrating our 35th year in business, and we are off to a strong start to the year."

"I continue to see positive signs that our four pillar growth strategy is working. Customer diversification is a key element of our strategy and we have had wins across all of our services. New customers in our emergency management training, cyber security services, health services and specifically the agriculture sector for our SED division are all validation that we are making progress on this objective."

After a few years of industry dialogue, the request for proposal for our DND Health Services business was released in early January by Public Works and Government Services Canada. The new contract will have increased scope adding two new government departments (RCMP and Veterans Affairs) as well as DND Cadets. The initial contract period is until March 31, 2022 with an option to extend the term of the contract by up to eight additional years. While we expect competition, we will continue to focus on executing on the current contract and maintaining our high customer satisfaction with the customer through to March 31, 2018. We will also deploy all the necessary resources to ensure we submit the highest quality proposal for this opportunity." stated Ford.

"We will also continue to look for opportunities to leverage our strong financial position for capital investments or acquisitions that support our long term growth objectives. With our five distinct service lines and successful delivery track record, I believe our diversity is not only what differentiates Calian Group, but forms a solid foundation for our future and we will continue to embrace that diversity" stated Ford.

During fiscal 2017, management will continue to focus on its key strategic initiatives. Traditional markets in which Calian operates have stabilized recently 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 2017 to be in the range of $270 million to $290 million, net profit in the range of $1.70 to $2.00 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 2,700 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 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, 2016 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.

Calian Q1 2017 Results


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