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(All amounts in this release are in Canadian Dollars)

Ottawa, Ontario, Wednesday, February 5, 2020 – Calian Group Ltd. (TSX.CGY) today released its quarterly results for the three-month period ended December 31, 2019.

First quarter 2020 highlights:

  • Revenue at $99.2 million, representing Calian’s sixth consecutive quarter of record revenue
  • Adjusted EBITDA(1) at $8.4 million
  • 73rd consecutive profitable quarter
  • New contract signings of $87 million
  • Dividend of $0.28 per share

The Company reported revenues for the quarter of $99.2 million, representing a 24% increase from the $79.9 million reported in the same quarter of the previous year.

Adjusted EBITDA(1) for the first quarter was $8.4 million or $1.04 per share basic and $1.03 per share diluted, an increase from $5.7 million or $0.73 per share basic and diluted in the same quarter of the previous year (Adjusted EBITDA in the first quarter included a favorable impact of $0.7 million from the adoption of IFRS 16).

Adjusted net profit,(1) which excludes non-cash items related to our recent acquisitions, was $5.3 million or $0.67 per share basic and diluted for the quarter; this compares to $3.8 million or $0.49 per share basic and $0.48 diluted in the same period of the previous year.

Net profit for the first quarter was $4.3 million or $0.55 per share basic and $0.54 per share diluted, an increase from $3.4 million or $0.43 per share basic and diluted in the same period of the prior year.

"It is exciting to report another record quarter of consolidated revenue. Reflecting our growth, this is now our sixth consecutive quarter of achieving record revenue,” stated Patrick Houston, CFO. “The stability of our diversified business was evident in the quarter as Advanced Technologies, Health and IT posted solid revenue and EBITDA growth compared to the prior year’s first quarter.”

“We have received very positive feedback regarding our reporting aligned to four segments, which we we introduced at the end of our 2019 Q4 and full-year results. The four segments of Advanced Technologies, Health, Learning and Information Technology are highlighting our focus going forward and have helped simplify the Company for our shareholders,” said Kevin Ford, President and CEO.

“On that note I was pleased to see the results of our diversified engine at work during the quarter. The Advanced Technologies segment posted very positive organic revenue growth of 68% from the same period a year earlier, with top line contributions from our large ground systems project and new mobile wireless product. Health revenues rose 10% from a year earlier as demand increased on our clinician services and psychological assessment services. IT similarly posted 9% revenue growth on stronger sales for our cyber security practice,” Ford said. “Learning revenues declined slightly, reflecting pace of demand on our core training contracts and a focus on securing new business,” continued Ford.

“While first-quarter consolidated revenue grew 24% year-over-year, we also just announced a strategic acquisition for the Health segment in support of our growth objectives. On January 31 we announced the acquisition of health services companies Allphase Clinical Research Services Inc. and Alio Health Services Inc. (collectively, ‘Allphase/Alio’). The companies serve the pharmaceutical and medical device industry and the broader health care sector with clinical trial services, specialty medication support, community care and other services, all enabled by an innovative health care delivery management software application. This acquisition supports all four pillars of our growth framework. It diversifies our customer base into pharmaceuticals, home care and hospitals, and supports Calian’s innovation agenda with services enabled by sophisticated software.”

“Continued investment in R&D, M&A and our own internal innovation will be critical to our long-term profitable growth and continued push into global markets. Our recent filing of a shelf prospectus is an important step in providing flexibility as we continue on our growth agenda,” stated Ford.

Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2020 to be in the range of $380 million to $410 million, adjusted EBITDA per share in the range of $4.25 to $4.55, and adjusted net profit per share in the range of $2.50 to $2.80.

For Calian’s Financial Statements, MD&A and other disclosures, please visit our IR webpage at https://www.calian.com/en/investor-relations; for more information contact us at [email protected].

About Calian

Calian employs over 3,400 people in its delivery of diverse products and solutions for private sector, government and defence customers in North American and global markets. The Company’s diverse capabilities are delivered through four segments: Advanced Technologies, Health, Learning and Information Technology. The Advanced Technologies segment provides innovative products, technologies and manufacturing services and solutions for the space, communications, defence, nuclear, government and agriculture sectors. The Health segment manages a network of more than 1,800 health care professionals delivering primary care and occupational health services to public and private sector clients across Canada. Learning is a trusted provider of emergency management, consulting and specialized training services and solutions for the Canadian Armed Forces and clients in the defence, health, energy and other sectors. The Information Technology segment supports public- and private-sector customer requirements for subject matter expertise in the delivery of complex IT and cyber security solutions. Headquartered in Ottawa, the Company’s offices and projects span Canada and international markets.

For further information, please visit our website at www.calian.com, or contact us at [email protected] Kevin Ford President and Chief Executive Officer 613-599-8600 Patrick Houston Chief Financial Officer 613-599-8600 Media inquiries: Simon Doyle 613-599-8600 x 205

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; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. 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. 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 2020 Results

Calian-Q1-220_Results.pdf

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