Calian net profit slightly down in Q3
The company reported revenues for the quarter of $64.3 million, a 19% increase from the $53.8 million reported in the same quarter of the previous year. For the nine-month period ended June 30, 2015 the company reported revenues of $181.3 million, a 16% increase from the revenues of $156.8 million in the prior year.
EBITDA(1) for the third quarter was $4.0 million, compared to $4.1 million in the same quarter of the previous year and for the nine-month period ended June 30, 2015, EBITDA(1) was $12.3 million, compared to $11.7 million in the prior year.
Net profit for the third quarter was $2.2 million or $0.30 per share basic and diluted, compared to $2.9 million or $0.39 per share basic and diluted in the same quarter of the previous year. On a year-to-date basis, net profit was $6.9 million or $0.94 per share basic and diluted compared to net profit of $8.0 million or $1.09 per share basic and diluted in the previous nine-month period. Adjusted Net Profit(1) for the third quarter was $2.5 million or $0.34 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. On a year-to-date basis, adjusted net profit(1) was $7.7 million or $1.05 per share basic and diluted compared to $7.8 million or $1.07 per share basic and diluted in the previous nine-month period.
(1) See caution regarding non-GAAP measures at the end of this press release
"Our 19% improvement in revenues this quarter is a reflection of the strong growth in SED revenues with strong support from our recent acquisitions. Overall consolidated gross margin percentages were lower than the prior year in both divisions as we continue to face the impact of increased competition, investments in products at our SED division coupled with an SED project mix biased towards lower-margin materials and subcontracts. As a result, our consolidated EBITDA was in line with the prior year but did not increase commensurate with the increased level of revenues" stated Jacqueline Gauthier, CFO.
"Despite challenging market conditions, we continue to see momentum and growth across both of our divisions and I am pleased to see our revenue growth continue as per our previous two quarters. Year to date we have improved cash flows, diversified our customer base and continue to execute key elements of our growth strategy. The significant IT service line win within our BTS division signed this quarter with the City of Toronto is a great example of our service line evolution strategy in action as we expand into the IT solutions market" stated Kevin Ford, President and CEO. "Looking forward, to counteract downward margin pressures, we continue to invest in our service lines in areas such as communications products and health care services in order to move into new higher margin segments".
"With a strong backlog of work and solid balance sheet, we are well equipped to grow revenues in future quarters. Our cash balance during the quarter was consistent with the prior quarter and reflects the ebbs and flows of our business, particularly with our SED division's project based business mix", continued Ford.
Management expects revenue growth over the prior year will be achieved through a combination of the stabilizing of our traditional markets, strong organic growth at the SED division, the incremental revenue of recent acquisitions and 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. 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 $255 million, net profit per share in the range of $1.25 to $1.55 per share and adjusted net profit(1) in the range of $1.40 to $1.70 per share.