Revenue Grows 17%, with Health Segment leading the charge
OTTAWA, Tuesday, February 9, 2021 – Calian Group Ltd. (TSX:CGY), deliverer of trusted solutions across advanced technologies, health, learning & information technology segments, today released its quarterly results for the three-month period ended December 31, 2020.
Calian Group Ltd. (the “Company”) reported revenues for the quarter of $116 million, representing a 17% increase from the $99 million reported in the same quarter of the previous year.
First quarter 2021 highlights:
- Quarterly revenue of $116 million an increase of 17%
- Record level of adjusted EBITDA (1) at $10.4 million for the quarter, an increase of 24%
- 77th consecutive profitable quarter
- New contract signings of $112 million in the quarter
- Dividend of $0.28 per share
“I am pleased to report Calian’s continued global expansion, and four consecutive quarters of revenue over $100 million. Investment and execution of our M&A agenda showed results with acquisitive growth of 15% in the quarter.” said Kevin Ford, Calian CEO. “Our Health segment continued its growth with a 57% increase in revenue. We continue to see strong demand for our services across many health verticals.”
Adjusted EBITDA(1) for the first quarter was $10.4 million, an increase of 24% from $8.4 million in the same quarter of the previous year. Adjusted net profit,(1) which excludes non-cash items related to recent acquisitions, was $6.8 million for the quarter; which increased by 28% from the $5.3 million in the same period of the previous year.
Net profit for the first quarter was $2.4 million, down from the $4.3 million from the same period of the previous year which is impacted by higher amortization of intangibles and deemed compensation expenses from recent acquisitions.
"We were able to maintain revenue growth this quarter while increasing gross margin and EBITDA margins significantly” stated Patrick Houston, Calian CFO. “Our investment in M&A has allowed us to enter new markets with differentiated assets that command higher margins and has allowed us to increase our consolidated levels.”
Two new acquisitions were completed within the quarter. Cadence, located in the United Kingdom, will allow Calian to further expand the Learning footprint in Europe. InterTronic Solutions brings new assets in the satellite ground system market and entry into the North American space exploration and defence sector.
“Fiscal year guidance is updated to reflect the acquisition of InterTronic, continued momentum in our Health segment, and slower order intake in areas of our Advanced Technology segment. I believe our diversified segments with a mix of domestic and global customers continues to position us well for a strong year”, continued Ford. “I want to thank the Calian team for once again rising to the challenge of operating within COVID restrictions and continuing to meet our customer needs”.