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(All amounts in this release are in Canadian Dollars)

Ottawa, Ontario – February 7, 2018: Calian Group Ltd. (TSX.CGY) today released unaudited results for the first quarter ended December 31, 2017.

The Company reported revenues for the quarter of $75.8 million, a 10% increase from the $68.7 million reported in the same quarter of the previous year.

EBITDA(1) for the first quarter was $6.4 million, a 23% increase compared to $5.2 million in the same quarter of the previous year.

Net profit for the first quarter was $4.1 million or $0.53 per share basic and $0.52 per share diluted, a 20% increase compared to $3.4 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

"The results for this quarter continue to show the benefit of the combined strength of our 5 service offerings", stated Jacqueline Gauthier, CFO. "The increase in revenues this quarter from both organic and acquisitive means allowed the Company to report record quarterly revenues. In addition, with significant improvement in gross margin percentages the Company was able to increase its EBITDA levels at a higher pace than its revenue growth, while at the same time continue investments in its business development and delivery capabilities; therefore providing for a solid return to shareholders."

"I am extremely proud of the team's efforts in the quarter delivering a new high for our Q1 results", stated Kevin Ford, CEO. "This quarter's results mirror our strategy of both organic and acquisitive growth and all service lines are positively contributing to these results", stated Ford.

“We are also very pleased with the contribution of International Safety Research Inc. (ISR) acquired in May 2017 which represents 4% of our revenue growth this quarter. ISR is a longstanding and trusted partner in the nuclear industry. At this early stage, ISR’s performance has met our expectations and integration efforts continue to go well. The complementary markets of ISR present an excellent opportunity to bring our collective capabilities to bear and I am confident that our combined team will be successful in future pursuits.” continued Ford.

"I am also pleased to announce changes to our executive ranks. First, Jerry Johnson, currently the BTS VP of Training and Engineering Services, will be taking on the role of Chief Information Officer at Calian Group. Increasingly, technology is becoming a key enabler to our growth objectives and Jerry is uniquely positioned to lead Calian Group in the delivery of our technology enablers. Jerry is transitioning into the new role while we conduct a search for his replacement. Also, at the heart of our growth objectives are clearly our employees. I have asked Lynn Stevens, currently the BTS division VP of Human Resources, to join our corporate ranks as the companies Chief Human Resources Officer (CHRO). Lynn will be working with both divisions to ensure that critical activities in the recruitment of the best talent, continued evolution of our HR function and leveraging best practices in the development of our employees are being executed while providing a focal point for integration of employees from future acquisitions. Lynn's current role at BTS will not be replaced. I view these appointments as critical as we continue to align our internal capacity to the pace our of growth agenda".

"With over 65 consecutive profitable quarters, positive cash flows, a strong balance sheet and enviable backlog, our financial position is very strong which provides the facility to continue to invest in innovation. While we are confident in our organic growth opportunities, we continue to search proactively for M&A opportunities that support our growth objectives", continued Ford.

Management continues to focus on its key strategic initiatives. 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.

About Calian

Calian employs over 2,900 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.

Calian Q1 2018 Results


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