Net profit up 23% at year-end 2019 for Calian Group
Calian Group Ltd. has released its annual results for the year ended 30th September 2019.
The company reported revenues for the fourth quarter of $90.9m, representing a 16% increase from the $78.5m reported in the same quarter of the previous year. For the year ended 30th September 2019, the company reported revenues of $343.0m, a 12% gain compared to $305.1m in the prior year.
EBITDA for the fourth quarter was $8.1m or $1.03 per share basic and $1.02 per share diluted, an increase from $6.7m or $0.86 per share basic and diluted in the same quarter of the previous year. For the year ended 30th September 2019, EBITDA was $27.1m or $3.46 per share basic and $3.45 per share diluted, a 7.9% increase compared to $25.3m or $3.28 per share basic and $3.26 per share diluted in the same period of the previous year.
Adjusted net profit, which excludes non-cash items related to our recent acquisitions and adjustments to its earnout payments, was $2.43 per share basic and $2.41 diluted; this compares to $2.27 per share basic and $2.25 diluted in the previous year. Net profit for the fourth quarter was $8.5m or $1.08 per share basic and diluted, an increase from $4.3m or $0.56 per share basic and $0.55 per share diluted in the same quarter of the prior year. On a year-to-date basis, net profit was $20.0m or $2.55 per share basic and $2.54 per share diluted, an increase of 23% compared to $16.3m or $2.11 per share basic and $2.10 diluted in the same period of the previous year.
Calian is announcing a change in its operating segments which is reflected in its results released today. The two-divisional structure comprised of the former BTS Division and the Systems Engineering Division has been replaced by the following four operating segments to better reflect Calian’s core businesses and align with its broader business strategy: Advanced Technologies, Health, Learning and Information Technology. Advanced Technologies is comprised of the Systems Engineering Division, the Engineering and Technical Services team of BTS, and the recent acquisitions IntraGrain Technologies and SatService. The remainder of BTS has been split into the Health, Learning and Information Technology segments.
“As I look back at a year of record revenues and EBITDA, I was particularly pleased to see all four of our segments grow in terms of both revenues and earnings contribution,” stated Patrick Houston, CFO. “We believe that this diversified profitable growth is one of our company’s unique strengths.”
Kevin Ford, president and CEO, added, “The 2019 fiscal year has been exciting for Calian on many fronts. We reported record quarterly revenue for all four quarters in 2019, leading to the Company’s highest reported annual revenue and earnings. This year we also executed two acquisitions, launched innovative products, strengthened our global presence, and gained new customers across all lines of business.
“I am excited that our reporting is now aligned to four segments: Advanced Technologies, Health, Learning and Information Technology. This new reporting segmentation demonstrates our focus going forward, and I believe it is an important development for shareholders as we move away from the previous two-divisional construct, which we had outgrown. This will help simplify the Company for our customers and shareholders, while providing insight into our diverse lines of business.
“We continue to see positive momentum for Calian’s growth path as we execute our organic and acquisitive growth strategy. Calian has now closed nine acquisitions in the past eight years, including two in the 2019 fiscal year for the Advanced Technologies segment. Regina, Saskatchewan-based IntraGrain Technologies has enabled our push into the AgTech market with complementary capabilities for this segment. The acquisition of SatService, based in Germany, has provided Calian with a foothold in Europe and supports the Company’s expansion in the European market with turnkey satellite solutions as well as products.
“Overall, our 2019 results indicate that our growth framework – based on the four pillars of customer retention, customer diversification, service line evolution and continuous improvement – is working. We posted another record year while demonstrating that Calian as an investment opportunity represents both growth and stability.
“Today we reported our 72nd consecutive profitable quarter, and I am proud of the total shareholder return of 21% for the current year. With strong cash flows, acquisitive and organic revenue growth, investments in innovation, and a dedicated employee base, we are well-positioned to continue the execution of our growth plan.”
Based on currently available information and our assessment of the marketplace, Calian expects revenues for fiscal 2020 to be in the range of $365m to $395m, EBITDA per share in the range of $4.00 to $4.30, and adjusted net profit per share in the range of $2.35 to $2.65.
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