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OTTAWA, ONTARIO-- Nov. 9, 2016 - Calian Group Ltd. (TSX:CGY) today released unaudited results for the fourth quarter ended September 30, 2016.

The Company reported revenues for the quarter of $68.8 million, a 13% increase from the $60.9 million reported in the same quarter of the previous year. For the year ended September 30, 2016 the Company reported revenues of $274.6 million, a 13% increase compared to revenues of $242.3 million in the prior year.

EBITDA(1) for the fourth quarter was $5.3 million, an 8% increase compared to $4.9 million in the same quarter of the previous year and for the year ended September 30, 2016, EBITDA(1) was $22.0 million, a 28% increase compared to $17.2 million in the prior year.

Net profit for the fourth quarter was $3.4 million or $0.45 per share basic and diluted, a 17% increase compared to $2.9 million or $0.39 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $13.6 million or $1.83 per share basic and diluted, an increase of 39% compared to net profit of $9.8 million or $1.33 per share basic and diluted in the previous year. Adjusted Net Profit(1) for the fourth quarter was $3.4 million or $0.45 per share basic and diluted, compared to $3.1 million or $0.43 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, adjusted net profit(1) was $14.2 million or $1.92 per share basic and diluted compared to $10.8 million or $1.48 per share basic and diluted in the previous year.

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

"Our increase in revenues, EBITDA and net profit this quarter is a reflection of continued strength in all of our service lines. At $275 million we have achieved our highest fiscal year revenues in our company's history", stated Jacqueline Gauthier, CFO.

"I am very proud of our team's accomplishments, both in the fourth quarter and in the full year. Our fourth quarter saw the achievement of strong financial results, key re-wins of long term contracts and continued success in the diversification of new customers" stated Kevin Ford, President and CEO. "Our total contract signings for the quarter was $171 million which has increased our backlog to $488 million and provides a solid foundation for future years."

"On our full year results, we surpassed the $250 million revenue mark and achieved our highest revenues in history. Both divisions had strong results and have worked hard this year not only achieving excellent financial results, but also continuing to make tangible progress on our long term growth strategy" continued Ford. "There are many highlights this year, including the re-naming of the company to Calian Group Ltd. to align our corporate brand to the diverse nature of our business, to an excellent return for our shareholders with $8.3 million paid in dividends as well as strong share price performance. I really believe that the Calian story is resonating - a proud Canadian company with five very distinct service lines, a proven track record of both domestic and global delivery, with over 60 consecutive profitable quarters, positive cash flows and entering its 35th year of business."

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 www.calian.com.

Disclaimer

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, 2015 on SEDAR at www.sedar.com. 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 Q4 2016 Results

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