Revenues up 5% YoY in Q1 2019 for Calian
Calian Group Ltd. has released its unaudited results for the first quarter ended 31st December 2018.
The company reported revenues for the quarter of $79.9m, representing a 5% increase from the $76.2m reported in the same quarter of the previous year.
EBITDA for the first quarter was $5.7m or $0.73 per share basic and diluted, which decreased when compared with the $6.5m or $0.84 per share basic diluted in the same quarter of the previous year.
Net profit for the first quarter was $3.3m or $0.43 per share basic and diluted, which decreased when compared with the $4.1m or $0.54 per share basic diluted in the same quarter of the previous year.
Jacqueline Gauthier, CFO, commented, “Results for this first quarter are mixed. Our BTS division saw continued improvements in revenues and EBITDA from strong performance and demand in all its market segments. The SED division reported a slower quarter than the prior year driven by a few projects moving to the right and a slightly less favorable revenue mix in the quarter.
“However, these results do not change our outlook for the year as we continue to expect strong performance from both divisions. We also expect contributions from our most recent acquisitions, IntraGrain and Secure Tech to increase in the remaining quarters due to seasonality of their business with the first quarter activity typically minimal.”
Kevin Ford, CEO, added, “Despite mixed results this quarter, we’ve achieved several positive metrics with our largest quarterly revenues in the company history as well as a 20% growth in the profitability with our BTS division. The SED division continues to be very busy in all its segments continuing to push its technology savvy to new heights.
“Calian is at a pivot point in the company’s history, as we continue to invest in R&D and headcount to drive long term growth from the company. This quarter we invested another $650K in new product development and continue to increase our delivery and go to market resources to ensure we have capacity required to support our growth.
“In support of our customer retention pillar, we were very happy to report this quarter the re-win of our Canadian Army Simulation Centre (CASC) contract with an initial value of $93 million and with options factored in, an aggregate contract value for the full nine-year period of approximately $170 million. With a duration of up to 9 years, this win has helped grow our contracted backlog to $1.3 billion which is a very strong foundation to support our growth agenda.
“Factoring in CASC, our contract signings exceeded over $200M in the quarter, again another strong sign that our sales efforts are working.
“At 69 consecutive profitable quarters, strong cash flows, a continued focus on our innovation agenda and our dedicated employee base, I am confident we will continue to make progress against all elements of our four-pillar strategic growth framework.”
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 its growth strategy. However, it says it must caution that revenues realised 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 its assessment of the marketplace, Calian expects revenues for fiscal 2019 to be in the range of $330m to $360m, EBITDA per share in the range of $3.60 to $3.90 and net profit in the range of $2.10 to $2.40 per share.
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