(All amounts in release are in Canadian dollars)
OTTAWA, February 14, 2023 – Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, today released its results for the first quarter ended December 31, 2022.
First quarter highlights:
- Revenue up 14% to $148 million
- Gross margin above 30% for the third consecutive quarter
- Adjusted EBITDA1 up 2% to $14 million
- Operating Free Cash Flow1 up 24% to $12 million
- Cash on hand of $58 million and net liquidity of $131 million
- New contract signings of $126 million
- Reiterated FY23 guidance
| Financial Highlights | Three months ended December 31 | ||
|---|---|---|---|
| (in millions of $, except per share & margins) | 2022 | 2021 | % |
| Revenue | 147.5 | 129.5 | 14% |
| Adjusted EBITDA1 | 14.3 | 14.0 | 2% |
| Adjusted EBITDA %1 | 9.7% | 10.8% | (110bps) |
| Net Profit | 4.6 | 4.3 | 7% |
| EPS | $0.39 | $0.38 | 3% |
| Adjusted Net Profit1 | 8.8 | 9.6 | (8%) |
| Adjusted EPS Diluted1 | $0.75 | $0.85 | (12%) |
| Operating Free Cash Flow1 | 12.1 | 9.8 | 24% |
1 This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release.
Access the full report on the Calian Financials web page. Register for the conference call on Wednesday, February 15, 2023, 8:00 a.m. Eastern Time.
“The strong performance of our ITCS and Learning segments was impressive. The combination of organic growth and performance from recent acquisitions in these two segments drove our results in the quarter,” said Kevin Ford, Calian CEO. “With $126 million in new signings and improvements in the supply environment we are confident in our ability to post our 6th consecutive record year.”
First Quarter Results
Revenues increased 14%, from $130 million to $148 million, driven by strong performance in our Information Technology & Cyber Solutions (ITCS) and Learning segments.
- ITCS: Revenues doubled to $46 million driven by the company’s strong performance from its expansion into the United States with the acquisition of Computex last March, coupled with double-digit organic growth of 11% in its overall cyber practice.
- Learning: Revenues grew 16% to $26 million driven by continued demand in the military learning and preparedness market from its long-standing customers.
- Advanced Technologies: Revenues declined 17% to $34 million due to delays in the award of new ground systems projects and ongoing supply chain issues, which result in parts delay that slow its ability to deliver products. This was partially offset by the strong performance of its GNSS antennas business. Gross margins improved significantly from 26% to 35% in the quarter.
- Health: Revenues decreased 5% to $40 million due to lower COVID-19 related business coupled with the slower pace of awards for new business.
Liquidity and Capital Resources
“Our cash performance was strong in our first quarter. We generated $12 million in operating free cash flows, an impressive increase of 24% over the prior year,” said Patrick Houston, Chief Financial Officer. “In addition, we were able to recapture a further $12 million in working capital throughout the quarter. This further improves our already strong balance sheet and puts us in an excellent position to continue to invest in our M&A growth agenda.
The Company ended the quarter with net cash of $58 million and an available credit facility resulting in total available liquidity of $131 million which consists of net cash on hand and available debt.
Quarterly Dividend
Today, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable March 14, 2023, to shareholders of record as of February 28, 2023. Dividends paid by the Corporation are considered “eligible dividend” for tax purposes.
Guidance Reiterated
“With new contract signings of $126 million, a robust backlog of $1.3 billion combined with increased recurring revenue streams, we are on pace to deliver another record year in FY23,” said Mr. Ford.
Guidance for the year ended Sept. 30, 2023
(in thousands of Canadian $)
Revenue
Adjusted EBITDA
Adjusted Net Profit
Low
630,000
70,000
46,000
High
680,000
75,000
50,000
À propos de Calian
Nous faisons avancer le monde. Calian® aide les gens à communiquer, à innover, à apprendre et à mener une vie saine et sûre. Chaque jour, nos employés vivent nos valeurs d’engagement envers le client, d’intégrité, d’innovation, de respect et de travail d’équipe pour concevoir des solutions fiables qui résolvent des problèmes complexes. C’est la confiance. Ingénierie. Entreprise stable et en pleine croissance depuis 40 ans, notre siège social se trouve à Ottawa et nos bureaux et projets couvrent les marchés nord-américains, européens et internationaux. Visitez calian.com pour découvrir des solutions innovantes en matière de soins de santé, de communications, d’apprentissage et de cybersécurité.
Les noms de produits ou de services mentionnés dans le présent document peuvent être des marques déposées de leurs propriétaires respectifs.
Demandes de renseignements des médias :[email protected] 613-599-8600 x 2298 Relations avec les investisseursinquiries:[email protected]
CLAUSE DE NON-RESPONSABILITÉ
Certaines informations contenues dans le présent communiqué de presse sont de nature prospective et sont soumises à des risques et incertitudes importants. Les résultats ou événements prévus dans ces déclarations peuvent différer matériellement des résultats ou événements réels. Ces déclarations sont généralement accompagnées de termes tels que “avoir l’intention”, “anticiper”, “croire”, “estimer”, “s’attendre à” ou d’autres termes similaires. Les facteurs susceptibles d’entraîner des résultats ou des événements différents des attentes actuelles comprennent, entre autres : l’impact de la concurrence sur les prix ; la rareté des professionnels qualifiés ; l’impact de l’évolution rapide des technologies et des marchés ; la perte d’activité ou le risque de crédit avec les principaux clients ; les risques techniques sur les projets à prix fixe ; les conditions générales du secteur et du marché et les taux de croissance ; la croissance internationale et les conditions économiques mondiales, y compris les fluctuations des taux de change ; et l’impact des consolidations dans l’industrie des services aux entreprises. Pour de plus amples informations concernant certains de ces facteurs et d’autres, veuillez consulter le dernier rapport annuel de la société et les autres rapports déposés par Calian auprès de la Commission des valeurs mobilières de l’Ontario. Calian décline toute intention ou obligation de mettre à jour ou de réviser les déclarations prévisionnelles, que ce soit en raison de nouvelles informations, d’événements futurs ou autres. Rien ne garantit que les résultats, performances ou réalisations réels exprimés ou sous-entendus dans les déclarations prospectives contenues dans la présente communication se produiront ou, s’ils se produisent, que des avantages pourront en être tirés.
Calian – Siège social – 770 Palladium Drive – Ottawa – Ontario – Canada – K2V 1C8
Tel : 613.599.8600 – Fax : 613-592-3664 – General info email : [email protected]
About Calian
We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer reliable solutions that solve complex challenges. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.
Product or service names mentioned herein may be the trademarks of their respective owners.
Media inquiries:
613-599-8600 x 2298
Investor Relations inquiries:
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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 · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: [email protected]
