OTTAWA, February 9, 2022 – Calian Group Ltd. (TSX: CGY), a diverse product and services company providing innovative solutions for the healthcare, communications, learning and security sectors, today released its results for the first quarter ended December 31, 2021.
Calian Group Ltd. (the “Company”) reported double-digit revenue growth, expanding margins and strong EBITDA performance for the first quarter of our fiscal year 2022.
First quarter highlights:
- Revenue of $129 million, an 11% increase over Q1 21
- Adjusted EBITDA of $13.9 million, a 34% increase over Q1 21
- Adjusted net profit of $9.7 million, a 41% increase over Q1 21
- Gross margin of 26%, a sustained high for the company
- New contract signings of $185 million
The Company posted strong year over year growth in three segments. Information Technology and Cyber Solutions was up 68%, Learning grew by 26% and Advanced Technologies was up 10%. This growth was supplemented by $185 million in new contract signings which brings our aggregate backlog to $1,340 million. These wins are an indication of the momentum across all our segments, and ability to continue to drive consistent revenue growth.
The Company’s Information Technology segment impressive growth of 68% compared to the same quarter of the previous year was driven by gains made in the areas of digital healthcare solutions and cyber security.
Gross Margins for the quarter were 26%, which included all four segments posting gross margins in excess of 25%. This represents a significant increase as average historical gross margin for the last four fiscal years was approximately 22%.
Efforts to diversify the customer base continue. Revenue from European customers represents 14% of the first quarter total, compared to 11% in Q1 21 and 4% in Q1 20. Revenue from commercial customers has increased 13% year over year bringing the split between public and private sector revenue to near 50/50 levels.
“This quarter represents another strong quarter for the Company across many vectors. Our ability to win new deals was evident with strong bookings and delivery. We continue to be well positioned to deliver consistent growth across all our segments.” said Kevin Ford, Calian CEO. “Our initiative to deploy capital in a way to drive long term value was also evident with the acquisition of SimFront in October to bolster our learning capabilities, and the announcement of the acquisition of Computex in February which will expand our IT practice into the United States.”
Adjusted EBITDA for the first quarter was $13.9 million, an increase of 34% from $10.4 million in the same quarter of the previous year.
Adjusted net profit, which includes non-cash items related to recent acquisitions, was $9.7 million for the quarter, a 41% increase compared to $6.8 million in the same period of the previous year.
Net profit for the first quarter was $4.3 million, representing a 73% increase from the $2.4 million in the same period of the previous year.
“This quarter, we saw strong revenue growth and continued expansion of EBITDA at a pace greater than our revenue growth.” said Patrick Houston, Calian CFO. “This has been a result of our concerted efforts to increase gross margins and seek opportunities to scale as we cross the half billion mark.”
“At this time we reiterate the guidance we provided to markets in late November for our FY22 fiscal year” said Kevin Ford. “This guidance represents another record year for the Company and its 5th consecutive year of profitable double-digit growth. We will update our estimates with regards to the acquisition of Computex when that transaction closes in our second fiscal quarter.”
Join us at 10:30am EST on February 16th for Calian’s Virtual Investor Event where you will have the opportunity to learn about the exciting developments across all four of our segments. Register at the following URL: https://www.calian.com/events/calian-investor-event-2022/
Canadian dollars in thousands
- Revenue: Low $550,000, High $590,000
- Adjusted EBITDA: Low $57,000, High $61,000
- Adjusted net profit: Low $39,250, High $42,750