(All amounts in release are in Canadian dollars)
OTTAWA, Ontario, Feb. 13, 2025 (GLOBE NEWSWIRE) -- 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, 2024.
Q1-25 Highlights:
- Revenue up 3% to $185 million
- Gross margin at 31.8%, slightly down from 32.5% last year
- Adjusted EBITDA1 of $18 million, down from $21 million last year
- Operating free cash flow1 of $13 million, down from $17 million last year
- Net debt to adjusted EBITDA1 ratio of 0.6x
- Repurchased 101,350 shares in consideration of $4.9 million
- Guidance reiterated
- Announced new U.S. subsidiary to focus on U.S. government and defence
| Financial Highlights | Three months ended | |||||
| (in millions of $, except per share & margins) | December 31, | |||||
| 2024 | 20232 | % | ||||
| Revenue | 185.0 | 179.2 | 3 | % | ||
| Adjusted EBITDA1 | 17.8 | 21.4 | (17) | % | ||
| Adjusted EBITDA %1 | 9.6 | % | 11.9 | % | (230)bps | |
| Adjusted Net Profit1 | 10.5 | 14.0 | (25) | % | ||
| Adjusted EPS Diluted1 | 0.88 | 1.17 | (25) | % | ||
| Operating Free Cash Flow1 | 13.1 | 17.2 | (24) | % | ||
2 Certain comparative figures have been reclassified to align with the current year's presentation. For more information, please see the selected consolidated financial information section of the management discussion and analysis.
Access the full report on the Calian Financials web page.
Register for the conference call on Thursday, February 13, 2025, 8:30 a.m. Eastern Time.
"We closed the quarter as expected and are seeing positive momentum across our diverse end markets, while continuing to benefit from the strong contributions of our recent acquisitions in UK, the U.S. and Canada,” said Kevin Ford, Calian CEO. "The accelerating global demand for defence solutions positions Calian's expanding footprint to play a critical role in the years ahead. Additionally, discussions among Canadian leaders about increasing military investment and accelerating initiatives are a welcome development. We remain on track to deliver another record year and are making progress against our long-term objectives.”
First Quarter Results
Revenues increased 3%, from $179 million to $185 million, representing the highest first quarter revenue on record. Acquisitive growth was 8% and was generated by the acquisitions of Decisive Group, the nuclear assets from MDA Ltd and Mabway. Organic growth was down 5%, as growth generated in global Defence was offset by declines in the pace of domestic Defence training and delays in large projects in its Space and IT infrastructure markets.
Gross margin stood at 31.8% and represents the 11th quarter above the 30% mark. Adjusted EBITDA1 stood at $18 million, down 17% from $21 million last year, primarily impacted by revenue mix and increased investments in our sales and delivery capacity. As a result, adjusted EBITDA1 margin decreased to 9.6%, from 11.9% last year.
Net profit stood at $(1) million, or $(0.08) per diluted share, down from $6 million, or $0.46 per diluted share last year. This decrease in profitability is primarily due to increases in accounting charges related to amortization and deemed compensation expenses from acquisitions as well as increased operating expenses, which was offset by higher gross profit. Adjusted net profit1 was $10 million, or $0.88 per diluted share, down from $14 million, or $1.17 per diluted share last year.
Liquidity and Capital Resources
"In the first quarter we generated $13 million in operating free cash flow1, representing a 73% conversion rate from adjusted EBITDA1,” said Patrick Houston, Calian CFO. "We used our cash and a portion of our credit facility to pay contingent earn out liabilities for $11 million and make capital expenditure investments for $1 million. We also provided a return to shareholders in the form of dividends for $3 million and share buybacks for $5 million. We ended the quarter with a net debt to adjusted EBITDA1 ratio of 0.6x, well-positioned to pursue our growth objectives,” concluded Mr. Houston.
Normal Course Issuer Bid
In the three-month period ended December 31, 2024, the Company repurchased 101,350 shares for cancellation in consideration of $4.9 million.
Announced U.S. Subsidiary to Focus on U.S. Government and Defence
On December 4, 2024, Calian announced the launch of an independent U.S.-focused subsidiary, Calian US, Inc. It is committed to securing U.S. government contracts by ensuring full compliance with all relevant regulations. To facilitate this, Calian US will be established as an independent subsidiary and will pursue the necessary certifications to operate effectively within the U.S. market.
Quarterly Dividend
On February 12, 2025, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable March 12, 2025, to shareholders of record as of February 26, 2025. Dividends paid by the Company are considered "eligible dividend” for tax purposes.
Guidance Reiterated
The table below presents the FY25 guidance based on the new definition of adjusted EBITDA.
| Guidance for the year ended September 30, 2025 | FY24 Results | YOY Growth at Midpoint | ||||||||
| (in thousands of $) | Low | Midpoint | High | |||||||
| Revenue | 800,000 | 840,000 | 880,000 | 746,611 | 12 | % | ||||
| Adj. EBITDA1 | 96,000 | 101,000 | 106,000 | 92,159 | 10 | % | ||||
At the midpoint of the range, this guidance reflects revenue and adjusted EBITDA1 growth of 12% and 10%, respectively, and an adjusted EBITDA1 margin of 12.0%. It would represent the 8th consecutive year of double-digit revenue growth and record revenue and adjusted EBITDA1 levels.
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
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: info@calian.com
| CALIAN GROUP LTD. | |||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
| As at December 31, 2024 and September 30, 2024 | |||||||
| (Canadian dollars in thousands, except per share data) | |||||||
| December 31, | September 30, | ||||||
| 2024 | 2024 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 61,040 | $ | 51,788 | |||
| Accounts receivable | 157,542 | 157,376 | |||||
| Work in process | 20,205 | 20,437 | |||||
| Inventory | 29,442 | 23,199 | |||||
| Prepaid expenses | 23,805 | 23,978 | |||||
| Derivative assets | 31 | 32 | |||||
| Total current assets | 292,065 | 276,810 | |||||
| NON-CURRENT ASSETS | |||||||
| Property, plant and equipment | 41,234 | 40,962 | |||||
| Right of use assets | 41,746 | 36,383 | |||||
| Prepaid expenses | 7,157 | 7,820 | |||||
| Deferred tax asset | 3,376 | 3,425 | |||||
| Investments | 3,875 | 3,875 | |||||
| Acquired intangible assets | 123,297 | 128,253 | |||||
| Goodwill | 213,925 | 210,392 | |||||
| Total non-current assets | 434,610 | 431,110 | |||||
| TOTAL ASSETS | $ | 726,675 | $ | 707,920 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable and accrued liabilities | $ | 123,945 | $ | 124,884 | |||
| Provisions | 2,454 | 3,075 | |||||
| Unearned contract revenue | 40,263 | 41,723 | |||||
| Lease obligations | 5,556 | 5,645 | |||||
| Contingent earn-out | 29,709 | 39,136 | |||||
| Derivative liabilities | 169 | 92 | |||||
| Total current liabilities | 202,096 | 214,555 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Debt facility | 115,750 | 89,750 | |||||
| Lease obligations | 39,425 | 33,798 | |||||
| Unearned contract revenue | 17,256 | 14,503 | |||||
| Contingent earn-out | 2,773 | 2,697 | |||||
| Deferred tax liabilities | 23,738 | 25,862 | |||||
| Total non-current liabilities | 198,942 | 166,610 | |||||
| TOTAL LIABILITIES | 401,038 | 381,165 | |||||
| SHAREHOLDERS' EQUITY | |||||||
| Issued capital | 227,561 | 225,747 | |||||
| Contributed surplus | 4,555 | 6,019 | |||||
| Retained earnings | 84,038 | 91,268 | |||||
| Accumulated other comprehensive income (loss) | 9,483 | 3,721 | |||||
| TOTAL SHAREHOLDERS' EQUITY | 325,637 | 326,755 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 726,675 | $ | 707,920 | |||
| Number of common shares issued and outstanding | 11,765,055 | 11,802,364 | |||||
| CALIAN GROUP LTD. | |||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT | |||||||
| For the three months ended December 31, 2024 and 2023 | |||||||
| (Canadian dollars in thousands, except per share data) | |||||||
| Three months ended | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | $ | 185,047 | $ | 179,179 | |||
| Cost of revenues | 126,246 | 120,961 | |||||
| Gross profit | 58,801 | 58,218 | |||||
| Selling, general and administrative | 38,105 | 34,145 | |||||
| Research and development | 2,896 | 2,719 | |||||
| Share based compensation | 1,091 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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