Business
Calian Reports Third Quarter Results
(All amounts in release are in Canadian dollars) OTTAWA, ON / ACCESSWIRE / August 10, 2023 / ...
About this update from Calian Group Ltd.
[{"type":"text","content":"Calian Reports Third Quarter Results(All amounts in release are in Canadian dollars)OTTAWA, ON / ACCESSWIRE / August 10, 2023 / Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, today released its results for the third quarter ended June 30, 2023.Third quarter highlights:Revenue up 11% to $167 millionGross margin above 30% for the fifth consecutive quarterAdjusted EBITDA1 at $15 million, down 10% compared to Q3 last yearOperating free cash flow of $11 millionCash on hand of $41 million and net liquidity of $221 millionNew contract signings of $131 millionCompleted the acquisition of Hawaii Pacific Teleport on August 1, 2023Closed $250 million debt agreement on July 24, 2023Implemented restructuring plan for annualized savings of $8 millionUpdated FY23 guidanceFinancial Highlights Three months ended Nine months ended(in millions of $, except per share & margins) June 30, June 30, 2023 2022 % 2023 2022 %Revenue 166.6 150.0 11% 482.6 421.6 14%Adjusted EBITDA1 14.5 16.1 (10%) 45.6 46.9 (3%)Adjusted EBITDA %1 8.7% 10.8% (210bps) 9.4% 11.1% (170bps)Net Profit 4.7 6.8 (32%) 13.8 12.4 11%EPS Diluted $ 0.40 $ 0.60 (33%) $ 1.17 $ 1.09 7%Adjusted Net Profit1 8.4 10.8 (22%) 27.8 33.7 (18%)Adjusted EPS Diluted1 $ 0.71 $ 0.95 (25%) $ 2.37 $ 2.97 (20%)Operating Free Cash Flow1 11.3 10.2 11% 34.1 33.1 3% 1 This is a non-GAAP measure. Please refer to the section \"Reconciliation of non-GAAP measures to most comparable IFRS measures\" at the end of this press release.Access the full report on the Calian Financials web page.Register for the conference call on Friday, August 11, 2023, 8:30 a.m. Eastern Time.\"Our third quarter results were mixed. While we generated 11% revenue growth, and continued to drive gross margin performance above 30%, our Adjusted EBITDA and related margin decreased due to various investments we made at the end of our last fiscal year,\" said Kevin Ford, Calian Chief Executive Officer. \"We believe it is prudent at this time to proactively rebalance our investment levels in certain areas of our business in order to drive a more optimal level of growth and profitability.\"\"Subsequent to quarter end, we underwent a complete review of our delivery capacity and overhead costs and already started to initiate cuts ...