Calian Group Ltd. · TSX:CGY
Calian — Q1 2024 Earnings Presentation
19 slides from Calian's earnings presentation, Feb 15, 2024
Slide 1: Conference Call Presentation Q1-24
Conference Call Presentation Q1-24 For the quarter ended December 31, 2023
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements Certain information included in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally ac
Slide 3: Q1-24 Highlights
Q1-24 • Strong start to the year with record revenues and improved margins Highlights • M&A engine is on track with the completion of the Decisive acquisition in December and solid contribution from HPT for its first full quarter • Michael Tremblay appointed President, ITCS • Solid signings of $150
Slide 4: Q1-24 Consolidated Results
Q1-24 Consolidated Results 12% 9% $150M $1.1B Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) 179 20.4 19.5 169 176 20 167 22.0% 16.8 148 15 14.3 14.5 17.0% Record revenues and +21% 10 12.0% double-digit
Slide 5: Net Profit & EPS Diluted
Q1-24 Net Profit & EPS Diluted Net Profit EPS Diluted (in millions of $) (in $) 6 5.5 $0.50 0.7 $0.46 0.7 5.1 $0.45 $0.43 5 0.6 $0.39 $0.39 $0.40 0.6 4.6 4.5 4.7 $0.40 0.5 $0.35 0.5 4 $0.30 0.4 $0.25 0.4 In FY24 we expect to 3 0.3 $0.20 +38% 0.3 pay the Year 2 2 $0.15 0.2 $0.10 0.2 earnout for Simfr
Slide 6: Working Capital & Operating FCF
Q1-24 Working Capital & Operating FCF Working Capital 1 & WC/Revenues Operating FCF 2 & Conversion2 (in millions of $, except %) (in millions of $, except %) 100 92 30% 14.2 90 90 14 90 12.1 100% 80 79 25% 12 11.3 71 10.7 10.7 70 20% 10 85% 78% 80% 21% 60 50 17% 8 15% 64% 73% 60% Working capital 14%
Slide 7: Capital Deployment
Q1-24 Capital Deployment Investments in the Business Return to shareholders (in millions of $) (in millions of $) 62 5 49 4 3 3 3 Capital allocation priority going forward 4 8 3 is M&A Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Acquisitions Capex Dividends Share Repurchases © 2024 C
Slide 8: Balance Sheet
Q1-24 Balance Sheet Total Debt Net Liquidity (in millions of $) (in millions of $) 94 176 139 131 126 121 0.6x1 38 Solid balance sheet 8 to pursue growth Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Unused Credit Facility Cash 1) Net debt/ adj. EBITDA. This is a non-GAAP measure. Plea
Slide 9: Guidance Reiterated
Q1-24 Guidance Reiterated Revenues Adj. EBITDA1 (in millions of $) (in millions of $) 730-790 83-89 659 582 518 66 66 432 52 On track for another 76% 37 record year in FY24 coverage 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 1) This is a non-GAAP measure. Please refer to the MD&A. © 2024 Ca
Slide 10: IT and Cyber Solutions
Q1-24 IT and Cyber Solutions 1% 9% $62M $140M Highlights Organic Growth Acquisitive Growth Contract Signings Backlog Start of new President Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) 9 Closed Decisive 49 48 51 8 7.2 7.2 22.0% 46 46 7 7.2 acquisition 6 5.7 17
Slide 11: Health
Q1-24 Health 24% -% $40M $626M Highlights Organic Growth Acquisitive Growth Contract Signings Backlog Continued growth Revenues Adj. EBITDA1 & Margin1 momentum (in millions of $, except margin) (in millions of $) 12 10.7 49 52 50 10 9.4 32.0% Pipeline of digital 44 9.0 27.0% 40 8 7.2 opportunities 6
Slide 12: Learning
Q1-24 Learning 3% -% $4M $222M Organic Growth Acquisitive Growth Contract Signings Backlog Slower pace of growth Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) 29 27 6 5.4 37.0% Investments in sales 26 27 24 5 4.2 4.0 32.0% capacity 4 3.8 27.0% 3.1 3 22.0% 15.8%
Slide 13: Advanced Technologies
Q1-24 Advanced Technologies 21% 28% $44M $142M Organic Growth Acquisitive Growth Contract Signings Backlog Continued growth Adj. EBITDA1 & Margin1 Revenues (in millions of $) (in millions of $, except margin) momentum 12 11.1 53 37.0% 51 47 45 10 9.2 32.0% Strong product sales 34 8 7.1 27.0% 5.7 22.
Slide 14: Closing Remarks
Closing • Our guidance reflects another double-digit record year Remarks • Our business model and strategy are working • We are a consistent capital deployer with an objective of deploying over $100 million per year – we have deployed half of that so far in FY24 • We are positioned to continue to su
Slide 15: Question Period
Question Period Kevin Ford Patrick Houston Jennifer CEO CFO McCaughey Director, Investor Relations © 2024 Calian Group Ltd. | 15
Slide 16: Appendix
Appendix © 2024 Calian Group Ltd. | 16
Slide 17: Reconciliation of Non-GAAP Measures – Adj. EBITDA
Reconciliation of Non-GAAP Measures – Adj. EBITDA (in thousands of $) Three months ended Dec. 31, 2023 Dec. 31, 2022 Net profit $5,525 $4,576 Depreciation of equipment and application software 2,308 2,297 Depreciation of right of use asset 1,463 1,007 Amortization of acquired intangible assets 5,235
Slide 18: Reconciliation of Non-GAAP Measures – Operating FCF
Reconciliation of Non-GAAP Measures – Operating FCF (in thousands of $, except per share amounts and %) Three months ended Dec. 31, 2023 Dec. 31, 2022 Cash flows generated from operating activities $17,538 $25,323 Capitalized research and development - (86) Equipment and application software (2,400)
Slide 19: Thank you
Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations ir@calian.com