Calian Reports Record Second Quarter Results
OTTAWA, May 12, 2020 (GLOBE NEWSWIRE) — Calian Group Ltd. (TSX:CGY) today released its quarterly results for the three-month period ended March 31, 2020.Second quarter 2020 highlights: • Record quarterly revenue for the seventh consecutive quarter • Quarterly revenue at $104.5 million, exceeding $100 million for the first time • Adjusted EBITDA(1) at $10.2 million • 74th consecutive profitable quarter • New contract signings of $140 million • Dividend of $0.28 per shareAdjusted EBITDA(1) for the second quarter was $10.2 million, an increase of 55% from $6.6 million in the same quarter of the previous year. Net profit for the second quarter was $5.3 million, an increase of 36% from $3.9 million in the same period of the prior year. Adjusted net profit,(1) which excludes non-cash items related to recent acquisitions, was $6.8 million for the quarter; this compares to $4.5 million in the same period of the previous year.“It is exciting to report another record quarter for both revenue and EBITDA. The execution of profitable growth during these challenging economic times speaks to the criticality of our products and services,” stated Patrick Houston, CFO. “We also completed a successful public offering this quarter which strengthens our balance sheet and allows us to pursue new growth opportunities.”“First, I would like to thank all of the frontline health and essential service workers for their dedication and courage during these very challenging times,” said Kevin Ford, President and CEO. “Frontline health workers, Canadian Armed Forces members and other essential service professionals, including our own dedicated staff at Calian, are serving those in need on a daily basis and as a result encounter exposure risk. From all of us at Calian, we recognize and offer our deepest appreciation for your service.”“Calian has remained resilient through this crisis. We again saw the results of our diversified engine at work during the quarter. The Advanced Technologies segment posted very positive organic revenue growth of 60%, and 7% from acquisitions, compared to the same period a year earlier, with top line contributions from a new ground systems project and our newly launched mobile wireless product. Health revenues rose 16% from a year earlier as we completed an acquisition and continued to grow organically. Information Technology posted 7% revenue growth on stronger solutions sales for our cyber security practice. Our Learning segment had a slight decline due to some delays in major training exercises related to COVID-19 and pace of new business,” said Ford. “The Company also posted strong contract signings of $140M in the quarter, increasing our overall contract backlog.”“During the quarter we were very happy to close the acquisition of Allphase Clinical Research Services Inc. and Alio Health Services Inc. (collectively, “Allphase/Alio”), in support of our customer diversification objectives and innovation agenda. Their teams are already making strong contributions,” said Ford. “We continue to seek new M&A opportunities across all four of our segments.”“While the COVID-19 pandemic has impacted Calian, our delivery of essential services has supported the Company’s growth during this extraordinary time. We were pleased to recently announce our successful recompete for a contract from the Department of National Defence (DND), to provide training services for the Canadian Forces School of Aerospace Technology and Engineering (CFSATE). With two optional extension periods of two years each, the aggregate contract value over the full six-year period is approximately $54 million.“With a solid cash position and access to our debt facility, we have the liquidity we need to carry us through the short-term and financing available to support the Company’s continued innovation, and long-term, profitable growth,” said Ford.Guidance
