Calian Reports Record Second Quarter Results

Record revenues with 33% growth, coupled with Calian's largest acquisition to date

OTTAWA, ON / ACCESSWIRE / May 12, 2021 / Calian Group Ltd. (TSX:CGY), deliverer of trusted solutions across Advanced Technologies, Health, Learning & Information Technology segments, today released its quarterly results for the three-month period ended March 31, 2021.

Calian Group Ltd. (the "Company") reported revenues for the quarter of $138 million, representing a 33% increase from the $104 million reported in the same quarter of the previous year.

Second quarter 2021 highlights:

Record quarterly revenue of $138 million, an increase of 33%

Record level of adjusted EBITDA(1) at $14.2 million for the quarter, an increase of 39%

78th consecutive profitable quarter

New contract signings of $138 million in the quarter

Dividend of $0.28 per share

"It is my pleasure to announce another record quarter for the Company with both revenue, and adjusted EBITDA at all-time highs." said Kevin Ford, Calian CEO. "The performance of our Health segment was particularly impressive. We have seen increased demand across all of our Health services, and our team has been able to respond in short order, and deliver superior services in a very difficult environment."

Adjusted EBITDA(1) for the second quarter was $14.2 million, an increase of 39% from $10.2 million in the same quarter of the previous year. Adjusted net profit,(1) which excludes non-cash items related to recent acquisitions, was $10.3 million for the quarter; which increased by 51% from the $6.8 million in the same period of the previous year.

"Our investments in organic revenue growth was evident with all four segments showing growth over the previous year. Our recent acquisitions in Advanced Technologies and Information Technology has contributed to our margin growth." stated Patrick Houston, Calian CFO. "With the recent completion of our equity offering and our new debt facility, the Company is in excellent liquidity position to invest in our future growth."

The Company closed the largest acquisition of its history in the quarter through Dapasoft Inc. This acquisition will facilitate Calian's next chapter of growth and further expand its delivery of Healthcare, IT Services and Cybersecurity solutions to its clients.

"We had last updated our guidance in late February following the acquisition of Dapasoft Inc. We have maintained this guidance which would represent our fourth consecutive year of double digit revenue growth, and significantly higher EBITDA margins", continued Ford. "I want to thank the Calian team for their continued service excellence and delivery in these trying times".

GUIDANCE

  Current Guidance 
  Low  High 
Revenue $476,000  $516,000 
         
Adjusted EBITDA $45,000  $49,000 
Adjusted net profit $29,350  $32,650 
Anticipated weighted average shares outstanding  10,650,000 

About Calian

Calian employs over 4,400 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 2,000 health care professionals delivering primary care and occupational health services to public and private sector clients across Canada. Our Health services team also provides management and strategy services to pharmaceutical companies conducting clinical trials and delivers patient support programs. The Learning segment is a trusted provider of emergency management, consulting and specialized training services, products 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 Canadian and international markets.

For investor information, please visit our website at www.calian.com/investor-resources or contact us at ir@calian.com.

Kevin Ford
President and Chief Executive Officer
613-599-8600

Patrick Houston
Chief Financial Officer
613-599-8600

Media inquiries:
613-599-8600 x 2298

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 March 31, 2021 and September 30, 2020
(Canadian dollars in thousands, except per share data)

  March 31,   September 30,  
  2021  2020 
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $119,927  $24,235 
Accounts receivable  110,517   81,109 
Work in process  75,516   84,132 
Inventory  6,602   6,095 
Prepaid expenses  8,325   6,707 
Derivative assets  128   358 
Total current assets  321,015   202,636 
NON-CURRENT ASSETS        
Capitalized research and development  3,576   3,924 
Equipment  12,506   11,655 
Application software  4,381   3,092 
Right of use asset  16,934   17,595 
Investment and loan receivable  670   670 
Acquired intangible assets  60,391   36,191 
Goodwill  100,646   55,290 
Total non-current assets  199,104   128,417 
TOTAL ASSETS $520,119  $331,053 
LIABILITIES AND SHAREHOLDERS' EQUITY        
CURRENT LIABILITIES        
Line of Credit $55,000  $- 
Accounts payable and accrued liabilities  76,473   72,007 
Contingent earn-out  11,392   3,251 
Provisions  1,019   1,038 
Unearned contract revenue  25,816   13,435 
Derivative liabilities  33   152 
Lease obligations  3,031   2,790 
Total current liabilities  172,764   92,673 
NON-CURRENT LIABILITIES        
Lease obligations  16,000   16,800 
Contingent earn-out  22,929   11,913 
Deferred tax liabilities  16,650   9,261 
Total non-current liabilities  55,579   37,974 
TOTAL LIABILITIES  228,343   130,647 
         
SHAREHOLDERS' EQUITY        
Issued capital  193,287   107,931 
Contributed surplus  1,787   2,002 
Retained earnings  94,509   92,030 
Accumulated other comprehensive income (loss)  2,193   (1,557)
TOTAL SHAREHOLDERS' EQUITY  291,776   200,406 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $520,119  $331,053 
Number of common shares issued and outstanding  11,247,360   9,760,032 
 

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT

For the three and six month periods ended March 31, 2021 and 2020
(Canadian dollars in thousands, except per share data)

  Three months ended  Six months ended 
  March 31,   March 31,  
  2021  2020  2021  2020 
Revenue            
Advanced Technologies $42,731  $39,856  $80,061  $79,899 
Health  52,917   32,241   99,970   62,251 
Learning  20,901   17,334   38,948   32,442 
Information Technology  21,921   15,060   35,692   29,143 
Total Revenue  138,470    104,491    254,671    203,735  
                 
Cost of revenues  104,956   80,988   194,935   159,977 
Gross profit  33,514    23,503    59,736    43,758  
                 
Selling and marketing  4,035   3,344   7,399   6,121 
General and administration  14,358   9,528   25,974   18,186 
Research and development  968   436   1,805   850 
Profit before under noted items  14,153    10,195    24,558    18,601  
                 
Depreciation of equipment, application software and research and development  1,046   584   2,046   1,156 
Depreciation of right of use asset  774   685   1,503   1,356 
Amortization of acquired intangible assets  3,041   1,217   5,159   2,106 
Other changes in fair value  -   -   -   (101)
Deemed compensation  503   -   2,350   - 
Changes in fair value related to contingent earn-out  1,266   289   1,650   496 
Profit before interest income and income tax expense  7,523    7,420    11,850    13,588  
                 
Lease obligations interest expense  114   122   231   232 
Interest expense (income)  233   178   245   241 
Profit before income tax expense  7,176    7,120    11,374    13,115  
                 
Income tax expense - current  2,195   2,048   4,214   4,027 
Income tax expense (recovery) - deferred  (534)  (204)  (839)  (521)
Total income tax expense  1,661   1,844   3,375   3,506 
NET PROFIT $5,515   $5,276   $7,999   $9,609  
                 
Net profit per share:                
Basic $0.55  $0.60  $0.80  $1.15 
Diluted $0.54  $0.59  $0.80  $1.13 
 

CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three and six month periods ended March 31, 2021 and 2020
(Canadian dollars in thousands)

  Three months ended  Six months ended 
  March 31,   March 31,  
  2021  2020  2021  2020 
CASH FLOWS GENERATED FROM OPERATING ACTIVITIES            
Net profit $5,515  $5,276  $7,999  $9,609 
Items not affecting cash:                
Interest expense (income)  233   178   245   241 
Changes in fair value related to contingent earn-out  1,266   289   1,650   496 
Lease obligations interest expense  114   122   231   232 
Income tax expense  1,661   1,844   3,375   3,506 
Employee share purchase plan expense  102   46   248   46 
Share based compensation expense  574   319   1,023   592 
Depreciation and amortization  4,861   2,486   8,708   4,618 
Deemed compensation  1,098   -   2,945   - 
Other changes in fair value  -   -   -   (101)
   15,424   10,560   26,424   19,239 
Change in non-cash working capital                
Accounts receivable  (14,424)  (5,044)  (21,432)  (10,722)
Work in process  (1,831)  (13,381)  10,805   (26,235)
Prepaid expenses  (2,169)  (480)  (1,403)  (192)
Inventory  295   (501)  (430)  (1,045)
Accounts payable and accrued liabilities  9,193   4,682   2,710   3,708 
Unearned contract revenue  4,042   2,877   9,216   2,853 
   10,530   (1,287)  25,890   (12,394)
Interest received (paid)  (945)  (300)  (1,074)  (491)
Income tax recovered (paid)  (3,397)  (3,550)  (7,099)  (4,831)
   6,188   (5,137)  17,717   (17,716)
CASH FLOWS GENERATED FROM FINANCING ACTIVITIES                
Issuance of common shares net of costs  77,049   65,695   77,897   66,412 
Dividends  (2,776)  (2,259)  (5,520)  (4,491)
Draw (repayment) on line of credit  55,000   (26,180)  55,000   (13,000)
Payment of lease obligations  (771)  (613)  (1,480)  (1,227)
   128,502   36,643   125,897   47,694 
CASH FLOWS USED IN INVESTING ACTIVITIES                
Investments and loan receivable  -   -   -   (100)
Business acquisitions  (43,864)  (10,433)  (45,492)  (10,433)
Capitalized research and development  (93)  (457)  (212)  (1,115)
Equipment and application software  (1,086)  (1,802)  (2,218)  (2,256)
   (45,043)  (12,692)  (47,922)  (13,904)
                 
NET CASH (OUTFLOW) INFLOW $89,647  $18,814  $95,692  $16,074 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD  30,280   14,395   24,235   17,135 
CASH AND CASH EQUIVALENTS, END OF PERIOD $119,927  $33,209  $119,927  $33,209 

Reconciliation of non-GAAP measures to most comparable IFRS measures

These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company's performance.

Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company's financial reports with enhanced understanding of the Company's results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company's core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.

Adjusted EBITDA

  Three months ended  Six months ended 
  March 31,   March 31,   March 31,   March 31,  
  2021  2020  2021  2020 
Net profit $5,515  $5,276  $7,999  $9,609 
Depreciation of equipment and application software  1,046   584   2,046   1,156 
Depreciation of right of use asset  774   685   1,503   1,356 
Amortization of acquired intangible assets  3,041   1,217   5,159   2,106 
Lease interest expense  114   122   231   232 
Changes in fair value related to contingent earn-out  1,266   289   1,650   496 
Interest expense (income)  233   178   245   241 
Deemed Compensation  503   -   2,350   - 
Other changes in fair value  -   -   -   (101)
Income tax  1,661   1,844   3,375   3,506 
Adjusted EBITDA $14,153  $10,195  $24,558  $18,601 

Adjusted Net Profit and Adjusted EPS

  Three months ended  Six months ended 
  March 31,   March 31,   March 31,   March 31,  
  2021  2020  2021  2020 
Net profit $5,515  $5,276  $7,999  $9,609 
Other changes in fair value  -   -   -   (101)
Changes in fair value related to contingent earn-out  1,266   289   1,650   496 
Deemed Compensation  503   -   2,350   - 
Amortization of intangibles  3,041   1,217   5,159   2,106 
Adjusted net profit $10,325  $6,782  $17,158  $12,110 
Weighted average number of common shares basic  10,091,840   8,824,150   9,937,876   8,383,959 
Adjusted EPS Basic  1.02   0.77   1.73   1.44 
Adjusted EPS Diluted  1.02   0.76   1.71   1.43 

The Company uses adjusted net profit and adjusted earnings per share, which remove the impact of our acquisition amortization and gains, resulting in accounting for acquisitions and changes in fair value to measure our performance. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Adjusted profit and adjusted earnings per share are not recognized, defined or standardized measures under the International Financial Reporting Standards. Our definition of adjusted profit and adjusted earnings per share will likely differ from that used by other companies (including our peers) and therefore comparability may be limited. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with International Financial Reporting Standards. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable International Financial Reporting Standards financial measures. The Company has reconciled adjusted profit to the most comparable International Financial Reporting Standards financial measure as shown above.

SOURCE: Calian Group Ltd.

View source version on accesswire.com:
https://www.accesswire.com/647065/Calian-Reports-Record-Second-Quarter-Results

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.