All amounts in this release are in Canadian Dollars)
Ottawa, Ontario – February 3, 2016: Calian Technologies Ltd. (TSX.CTY (link is external)) today released unaudited results for the first quarter ended December 31, 2015.
The Company reported revenues for the quarter of $64.5 million, a 15% increase from the $56.0 million reported in the same quarter of the previous year.
EBITDA(1) for the first quarter was $5.2 million, a 19% increase compared to $4.4 million in the same quarter of the previous year.
Net profit for the first quarter was $3.1 million or $0.42 per share basic and diluted, a 24% increase compared to $2.5 million or $0.34 per share basic and diluted in the same quarter of the previous year. Adjusted Net Profit(1) for the first quarter was $3.3 million or $0.45 per share basic and diluted, compared to $2.7 million or $0.37 per share basic and diluted in the same quarter of the previous year.
See caution regarding non-GAAP measures at the end of this press release
“The 15% improvement in revenues this quarter is a reflection of the revenue growth in both divisions – 32% growth in our Systems Engineering Division (SED) revenues and 9% growth in our Business and Technology Services (BTS) division. We experienced organic growth in most of our service lines this quarter and cash earnings continue to improve with an increase in EBITDA compared to the prior year” stated Jacqueline Gauthier, CFO.
“Our Q1 revenue attainment of $64.5 million represents our highest Q1 revenues in our 33 year history” stated Kevin Ford, President and CEO. “Despite challenging market conditions I am very proud of the team’s efforts to continue the momentum coming out of last fiscal year “continued Ford.
“I am also pleased to see tangible progress in each of the components of our growth strategy. We have secured new customers in support of our customer diversification focus, and continue to evolve our services with investment in areas such as product development at our SED division. We also signed almost $50 million in new contracts this quarter which demonstrates our sales and marketing functions are executing well” stated Ford.
“As reported in our last quarter results, to reflect the diversity of Calian’s services with the expansion into areas such as healthcare and training, management has obtained board agreement to ask for shareholder approval to rename Calian Technologies Ltd. to Calian Group Ltd. to more accurately reflect the current business activities of the Company. Shareholder approval will be solicited during our Annual Meeting of Shareholders to be held February 5, 2016” continued Ford.
During fiscal 2016, management will continue to focus on its key strategic initiatives. Traditional markets in which Calian operates have stabilized recently 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 2016 to be in the range of $250 million to $280 million, net profit per share in the range of $1.40 to $1.70 per share and adjusted net profit(1) in the range of $1.49 to $1.79 per share.
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.
Calian employs over 2,500 people with offices and projects that span Canada, U.S. and international markets. The company’s capabilities are diverse and include the provision of business and technology services to industry and government in the health, training, engineering and IT services domains as well as the design, manufacturing and maintenance of complex systems to the communications and defence sectors. Calian’s services are delivered through two divisions. The Business and Technology Services (BTS) Division is located in Ottawa. This division delivers outsourcing services for a variety of technical and professional functions and provides health services to numerous domestic customers. Our strength lies in understanding clients’ needs, recruiting highly qualified personnel who understand and meet those needs, and then effectively managing those personnel within our customers’ framework. Calian’s Systems Engineering Division (SED) located in Saskatoon plans, designs and implements complex communication systems for many of the world’s space agencies and leading satellite manufacturers and operators. SED also provides contract manufacturing services for both private sector and military customers in North America.
Kevin Ford Jacqueline Gauthier
President and Chief Executive Officer Chief Financial Officer
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.