Calian Group Ltd. · TSX:CGY
Calian — Q2 2024 Earnings Presentation
24 slides from Calian's earnings presentation, May 15, 2024
Slide 1: Conference Call Presentation Q2-24
Conference Call Presentation Q2-24 For the quarter ended March 31, 2024
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: Q2-24 Highlights
Q2-24 • Record Q2 results for revenues, gross margin and adjusted EBITDA margin Highlights • Strong first half with revenues up 20%, gross margin above 33% and adjusted EBITDA margin close to 12% • M&A engine is on track with the completion of the acquisitions of the nuclear assets from MDA (March)
Slide 4: Consolidated Results
Q2-24 Consolidated Results 3% 16% $162M $1.1B Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) 201 25.7 176 179 169 167 25.0 22.0% 20.4 19.5 +19% 20.0 16.8 +53% 17.0% Record revenues, 14.5 15.0 12.8% 12.0
Slide 5: Net Profit & EPS Diluted
Q2-24 Net Profit & EPS Diluted Net Profit EPS Diluted (in millions of $) (in $) 5.5 0.46 5.1 0.43 4.7 4.9 0.40 0.41 4.5 0.38 Profitability growth impacted by acquisition related expenses Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 © 2024 Calian Group Ltd. 5
Slide 6: Working Capital & Operating FCF
Q2-24 Working Capital & Operating FCF Working Capital1 & WC/Revenues Operating FCF2 & Conversion2 (in millions of $, except %) (in millions of $, except %) 100 30% 20.0 90 90 17.8 140% 90 18.0 80 79 25% 16.0 120% 71 67 14.2 70 14.0 60 17% 20% 12.0 10.7 11.3 10.7 100% Working capital 78% 80% 50 40 14
Slide 7: Capital Deployment
Q2-24 Capital Deployment Investments in the Business Return to shareholders (in millions of $) (in millions of $) 62 5 49 4 3 3 3 We will resume our share buyback 14 8 3 program Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Acquisitions Capex Dividends Share Repurchases © 2024 Calian G
Slide 8: Balance Sheet
Q2-24 Balance Sheet Total Debt Net Liquidity (in millions of $) (in millions of $) 94 176 157 69 139 126 121 38 Solid balance sheet 0.3x1 to pursue growth Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Unused Credit Facility Cash 1) Net debt/ adj. EBITDA. This is a non-GAAP measure. Ple
Slide 9: Guidance Increased
Q2-24 Guidance Increased Revenues Adj. EBITDA1 (in millions of $) (in millions of $) 750-810 86-92 659 18% 582 Midpoint 35% growth Midpoint 518 66 66 growth 432 52 On track for another 37 record year 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 1) This is a non-GAAP measure. Please refer to t
Slide 10: Tracking on 3-Yr M&A Target (2024-26)
1) Tracking on 3-Yr M&A Target (2024-26) Acquisition Purchase Price (M$) Revenue (M$) EBITDA (M$) EBITDA Margin (%) Multiple Decisive 50 40 8 20% 6.3x MDA Nuclear Assets 8 8 2.5 31% 3.2x Mabway 32 35 8 23% 4.0x Total 90 83 18.5 21% 4.9x Targets 250-300 210-250 36-43 17% 6x-8x % Target achieved 33% 3
Slide 11: Margin Expansion
2) Margin Expansion Gross margin Adj. EBITDA margin1 (in %) (in %) 12.8% 34.8% 11.9% 32.5% +11.4% 11.8% 11.6% 31.7% 11.0% 10.9% +30% 30.3% 31.2% 30.6% 30.9% 30.7% 10.2% 10.8% 10.8% 9.7% 10.0% 9.7% 28.1% 9.0% 8.7% 25.9% 26.0% 24.9% 24.2% 22.6% 1) This is a non-GAAP measure. Please refer to the MD&A.
Slide 12: Talent
3) Talent Derek Clark Michael Tremblay Valerie Travain President President President Health ITCS Advanced Technologies © 2024 Calian Group Ltd. 12
Slide 13: Closing Remarks
Closing • Overperforming on our M&A agenda Remarks • Increasing gross margins and adjusted EBITDA margins • Bolstering our bench strength • Resuming our share buyback © 2024 Calian Group Ltd. 13
Slide 14: Question Period
Question Period Kevin Ford Patrick Houston Jennifer CEO CFO McCaughey Director, Investor Relations © 2024 Calian Group Ltd. | 14
Slide 15: Appendix A – Segment Results
Appendix A – Segment Results © 2024 Calian Group Ltd. | 15
Slide 16: IT and Cyber Solutions
Q2-24 IT and Cyber Solutions -1% 39% $74M $143M Organic Growth Acquisitive Growth Contract Signings Backlog Revenues Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) Highlights 68 14.0 12.1 12.0 27.0% Solid contribution from 51 49 46 48 10.0 22.0% Decisive 8.0 7.2 7.2 17.7
Slide 17: Health
Q2-24 Health 23% -% $4M $601M Organic Growth Acquisitive Growth Contract Signings Backlog Revenues Adj. EBITDA1 & Margin1 Highlights (in millions of $) (in millions of $, except margin) 54 12.0 52 10.7 49 50 10.0 9.4 9.7 32.0% Continued growth 44 9.0 8.0 27.0% momentum 7.2 22.0% 20.8% 6.0 16.4% 18.4
Slide 18: Advanced Technologies
Q2-24 Advanced Technologies -8% 18% $57M $139M Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) Highlights (in millions of $) 53 12.0 11.1 11.3 37.0% 51 51 47 45 10.0 9.2 32.0% Start of new President 27.0% 8.0 7.1 5.7 21.1%
Slide 19: Learning
Q2-24 Learning -2% -% $27M $206M Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) Highlights (in millions of $) 6.0 29 5.4 27 27 28 5.0 37.0% Signed $23M new 24 32.0% 4.0 3.8 4.0 4.2 27.0% contract with CAF2 3.1 3.0 18.9% 2
Slide 20: Appendix B – Reconciliation of Non-GAAP measures
Appendix B – Reconciliation of Non-GAAP measures © 2024 Calian Group Ltd. | 20
Slide 21: Reconciliation of Non-GAAP Measures – Adj. EBITDA
Reconciliation of Non-GAAP Measures – Adj. EBITDA Three months ended Six months ended (in thousands of $) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Net profit $4,925 $4,517 $10,450 $9,093 Depreciation of equipment and application software 2,496 2,252 4,804 4,549 Depreciation of rig
Slide 22: Reconciliation of Non-GAAP Measures – Operating FCF
Reconciliation of Non-GAAP Measures – Operating FCF Three months ended Six months ended (in thousands of $, except per share amounts and %) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Cash flows generated from operating activities $35,788 $6,203 $52,326 $31,526 Property, plant and eq
Slide 23: Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA
Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA (in thousands of $, except ratio) March 31, 2024 Sept. 30, 2023 Cash 45,866 33,734 Debt facility 69,000 37,750 Net debt (net cash) 23,134 4,016 Trailing twelve month adjusted EBITDA 80,093 65,987 Net debt to adjusted EBITDA 0.3 0.1 © 2024 Ca
Slide 24: Thank you
Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations ir@calian.com