Calian reports steady Q1 results
The Company reported revenues for the quarter of $56.0 million, an 8% increase from the $51.8 million reported in the same quarter of the previous year.
EBITDA(1) for the first quarter was $4.4 million, compared to $4.1 in the same quarter of the previous year.
Net profit for the first quarter was $2.5 million or $0.34 per share basic and diluted, compared to $2.8 million or $0.38 per share basic and diluted in the same quarter of the previous year. Adjusted Net Profit(1) for the first quarter was $2.7 million or $0.37 per share basic and diluted, compared to $2.8 million or $0.38 per share basic and diluted in the same quarter of the previous year.
"Today we reported consolidated quarterly revenues of $56 million representing an 8% increase over revenues recorded in the first quarter of last year. We are very pleased with these revenue levels for two reasons. Firstly, revenues from our traditional business were relatively consistent with the same quarter last year. Despite continued constraints in federal government spending, this marks the first time in a number of quarters where we did not encounter a substantial drop in year over year revenues. This is as an indication that our efforts to bolster our non-government service offerings is starting to pay off. Secondly, revenues generated from acquisitions made during the last fiscal year were in line with overall expectations and now represent a substantial component of our consolidated revenue base" stated Ray Basler, President and CEO.
"Overall consolidated gross margin percentages were just slightly lower than the prior year with SED showing a slight improvement and BTS experiencing a decline. SED first quarter margins were higher due to strong staff utilization and the recovery of investment tax credits related to activities in a prior year. BTS margins continue to be suppressed and revenues from recent acquisitions tend to have lower overall margins thereby having somewhat of a dilutive effect. For at least the near term, we expect that margins on new work will continue to be under pressure in both divisions" continued Basler.
"Our Consolidated EBITDA showed an improvement of $300k to $4.4 million representing an increase of 7%, commensurate with the increased level of revenues. This level of operational earnings provides strong cash flows from which to fund future growth, capital expenditures and dividends to shareholders. Only when considering the non-cash effects of amortization of intangibles and deemed compensation on acquisitions, does the level of profitability fall below that of the prior year" stated Basler.
"During the quarter we signed contracts with significant value and proposal activity remains robust. With a strong backlog of work and solid balance sheet, we are well equipped to grow revenues in future quarters" stated Kevin Ford, who will be assuming CEO responsibility effective April 1, 2015. "We did experience a sizable reduction in our cash balance during the quarter, which was related to the working capital required to fund projects as well as the traditional payment of certain accrued liabilities at the end of the calendar year all part of the normal ebbs and flows of our business."
After many quarters of declining revenues in our traditional markets, we have experienced a stabilization of these revenues during the last quarter. In addition, our recent acquisitions have performed to expectations and have incrementally contributed to revenues. Management expects this trend to continue, providing revenue growth over the prior year. 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. In addition, the requirement to categorize certain acquisition payments as compensation expense will negatively impact fiscal 2015 earnings by approximately $0.15 per share. Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2015 to be in the range of $235 million to $ 265 million, net profit per share in the range of $1.35 to $1.65 per share and adjusted net profit(1) in the range of $1.50 to $1.80 per share.
(All amounts in this release are in Canadian Dollars)