World News: 19:28 GMT Wednesday 7th August 2019. [Calian Group Ltd. via Globe Newswire via SPi World News]
(All amounts in this release are in Canadian Dollars)
OTTAWA, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Calian Group Ltd. () today released unaudited results for the third quarter ended June 30, 2019.
Third quarter 2019 highlights:
The Company reported revenues for the quarter of $88.8 million, representing a 21.6% increase from the $73.0 million reported in the same quarter of the previous year. For the nine-month period ended June 30, 2019 the Company reported revenues of $252.1 million, an 11.3% increase compared to revenues of $226.5 million in the prior year.
EBITDAfor the third quarter was $6.7 million or $0.86 per share basic and $0.85 per share diluted, which increased when compared with the $6.1 million or $0.79 per share basic and $0.78 per share diluted in the same quarter of the previous year. On a year-to-date basis, EBITDA was $19.0 million or $2.43 per share basic and $2.42 per share diluted, an increase compared to the $18.6 million or $2.43 per share basic and $2.41 per share diluted in the prior year.
Net profit for the third quarter was $4.3 million or $0.54 per share basic and $0.54 per share diluted, which increased from the $3.9 million or $0.50 per share basic and $0.50 per share diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $11.5 million or $1.47 per share basic and $1.47 per share diluted, a decrease of 4.2% compared to net profit of $12.0 million or $1.55 per share basic and $1.54 per share diluted in the prior year.
"I am very pleased to report another record quarter of consolidated revenue,” stated Patrick Houston, CFO. “Our growth has continued across both divisions, including strong contributions from our recent acquisition, IntraGrain. Despite continued investment to support our growth strategy, we were able maintain EBITDA growth.”
“Calian’s diversified engine was evident this quarter,” said Kevin Ford, President and CEO. “We continue to see growth across the majority of our services while continuing to invest in our long-term growth posture. At Calian SED, we were able to successfully close some projects but experienced some delays in projects and some overrun in our complex engineering programs which affected SED results. IntraGrain, Calian’s AgTech solutions provider which the Company acquired last year, had an excellent quarter with robust revenue and bottom-line contribution as its seasonality came to fruition.”
“Calian’s growth strategy is backstopped by our customer retention, which was again evident this quarter as our Training Services team renewed a three-year, $17-million eLearning contract with the Department of National Defence (DND). This contract continues a training relationship we have had with the Army Learning Support Centre (ALSC), located in Gagetown, N.B., since 2007. We are proud to have supported the men and women of the Canadian Armed Forces with Calian’s advanced training and simulation services for more than two decades,” added Ford.
“We closed our acquisition of SatService at the start of the quarter and are proceeding with an integration plan. Based in Germany, SatService is a solid player in the European satellite ground systems market whose business will support Calian SED’s expansion in the European market with turnkey satellite solutions as well as products. I had the pleasure of visiting the SatService facility and I was very impressed with their team and their support for Calian’s innovation agenda. We look forward to using this new foothold in Europe to explore potential opportunities with new customers and markets,” said Ford.
“Innovation remains a focus at Calian as we continue to invest in support of future growth. The Systems Engineering Division (SED) continues the development of its new carbon fiber antennas. This new line of advanced medium- and large-aperture radio frequency (RF) antennas provide cutting-edge performance for the most demanding satellite system applications, particularly as satellite communication networks move to higher-frequency ranges like Q and V bands. The Calian SED team continues to develop this product line with plans to roll out additional aperture sizes,” continued Ford.
“I would also like to bring attention to the success of Calian’s Military Family Doctor Network (MFDN), part of our social responsibility program. Members of the Canadian Armed Forces (CAF) receive complete health care from DND, however their family members rely on the provincial health systems, presenting a unique challenge for military families who relocate frequently due to postings. To help address this challenge we created the MFDN in 2016 in partnership with Military Family Services, a division of Canadian Forces Morale and Welfare Services. MFDN helps connect military family members to participating physicians after the families relocate to communities around the country. Over the past few years Calian’s dedicated staff have successfully leveraged our national network of Primacy health clinics to connect these families with family physicians. I am very happy to report that this initiative marked a significant milestone in July – with more than 2,000 military family members who have now been referred to a family doctor,” Ford said.
“With 71 consecutive profitable quarters, strong cash flows, an innovation agenda and dedicated employee base, I continue to have confidence in our execution and progress against all elements of our four-pillar growth framework,” concluded Ford.
________________________________________________(1) Caution regarding non-GAAP measures:
This press release is based on reported earnings in accordance with IFRS. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, adjusted net profit and adjusted net profit per share. These non-GAAP measures are mainly derived from the interim consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.
Traditional markets in which Calian operates are stable and management expects organic revenue and earnings growth in most or all of its service lines through the successful execution of our growth strategy. However, we must caution that revenues realized are ultimately dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2019 to be in the range of $335 million to $355 million, EBITDA per share in the range of $3.40 to $3.65 and net profit in the range of $2.05 to $2.25 per share.
For further information, please visit our website at , or contact us at
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; the dependence on new product development; the impact of rapid technological and market change; the ability of Calian to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; and the impact of consolidations in the business services industry. Additional risks and uncertainties affecting Calian can be found in Management’s Discussion and Analysis of Results of Operations and its Annual Information Form for the fiscal year ended September 30, 2018 on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein and our current objectives or strategies may change. 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, except as required by law. 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: 613.599.8650 General Info email:
Globe Newswire: 19:28 GMT Wednesday 7th August 2019
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