Calian Group Ltd. · TSX:CGY
Calian — Q3 2024 Earnings Presentation
23 slides from Calian's earnings presentation, Aug 8, 2024
Slide 1: Conference Call Presentation Q3-24
Conference Call Presentation Q3-24 For the quarter ended June 30, 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: 3-Year Plan Update
3-Year Plan Update 1 5% was used for organic growth and 10% for acquisition growth 2 A margin of 10% was used on organic growth and 17% on acquisitions Note: This 3-year financial model is meant to provide the financial market with a general direction of how Calian plans to reach $1 billion in reven
Slide 4: Q3-24 Highlights
Q3-24 • Record Q3 results for revenues, gross profit and adjusted EBITDA Highlights • Operational highlights: ✓ Completed Mabway acquisition ✓ Signed and acquired new contracts valued at >$300M ✓ Grew backlog to $1.2B ✓ Furthered innovation agenda • Advanced Tech and Health both reported double-digi
Slide 5: Q3-24 Consolidated Results
Q3-24 Consolidated Results 0% 11% $317M $1.2B Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) 201 25.7 179 185 167 176 25 22.0% 20.4 19.5 +11% 20 17.7 17.0% Record Q3 revenues, 14.5 15 12.8% +22% 12.0% g
Slide 6: Q3-24 Net Profit & EPS Diluted
Q3-24 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 Profitability growth impacted by 1.3 0.11 acquisition related expenses Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 © 2024 Calian Group Ltd. 6
Slide 7: Q3-24 Working Capital & Operating FCF
Q3-24 Working Capital & Operating FCF Working Capital1 & WC/Revenues Operating FCF2 & Conversion2 (in millions of $, except %) (in millions of $, except %) 100 30% 20 90 17.8 140% 90 18 80 79 25% 16 120% 71 67 14.2 70 63 14 20% 100% 60 12 11.3 10.7 10.0 50 14% 14% 15% 10 78% 73% 69% 80% Working capi
Slide 8: Q3-24 Capital Deployment
Q3-24 Capital Deployment Investments in the Business Return to shareholders (in millions of $) (in millions of $) 62 5 49 4 4 34 3 3 Calian intends to renew its NCIB, 14 3 subject to TSX Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 approval Acquisitions Capex Dividends Share Repurchas
Slide 9: Q3-24 Balance Sheet
Q3-24 Balance Sheet Total Debt Net Liquidity (in millions of $) (in millions of $) 94 94 176 157 69 139 132 126 121 38 0.6x1 Solid balance sheet to pursue growth Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Unused Credit Facility Cash 1) Net debt/ adj. EBITDA. This is a non-GAAP measu
Slide 10: Q3-24 Guidance
Q3-24 Guidance Revenues Adj. EBITDA1 (in millions of $) (in millions of $) 750-810 86-92 659 14% 582 Low point 30% growth Low point 518 66 66 growth Bottom of range 432 52 37 On track for another record year 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 1) This is a non-GAAP measure. Please re
Slide 11: 3-Year Strategic Plan
3-Year Strategic Plan Revenues Adj. EBITDA1 Results ▪ $659M up 50% to $1B ▪ $66M ~double to $125M ▪ 5% organic & 10% acquisitions = 15% CAGR Capital Deployed Adj. EBITDA1 Multiple Acquired Revenues Acquired adj. EBITDA1 M&A $250-$300M 6x-8x $210-$250M $36-$43M Leverage Ratio1 Operating FCF Conversio
Slide 12: Tracking After Months: On Track with 3-Year Plan
Tracking After 9 Months Calian is on track with 3-year plan objectives TARGET YTD Q3-24 TRACKING Revenue Growth 15% CAGR per year 17% Above RESULTS Doubling adj. EBITDA1 ~$60M $20M On track (bottom of guidance range) Capital to deploy in M&A ~$275M ~$90M Above M&A Adj. EBITDA1 generated from acquisi
Slide 13: Question Period
Question Period Kevin Ford Patrick Houston Jennifer CEO CFO McCaughey Director, Investor Relations © 2024 Calian Group Ltd. | 13
Slide 14: Appendix A – Segment Results
Appendix A – Segment Results © 2024 Calian Group Ltd. | 14
Slide 15: Q3-24 IT and Cyber Solutions
Q3-24 IT and Cyber Solutions -3% 10% $43M $141M Organic Growth Acquisitive Growth Contract Signings Backlog Revenues Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) Highlights 68 14 12.1 12 27.0% 46 48 51 49 10 22.0% Quarterly variability 7.2 8 17.7% 17.0% Investments for
Slide 16: Q3-24 Health
Q3-24 Health 14% -% $80M $642M Organic Growth Acquisitive Growth Contract Signings Backlog Revenues Adj. EBITDA1 & Margin1 Highlights (in millions of $) (in millions of $, except margin) 56 52 50 54 12.0 10.7 10.3 32.0% Continued growth 49 9.7 10.0 9.0 9.4 27.0% momentum 8.0 20.8% 22.0% ~$200M reven
Slide 17: Q3-24 Advanced Technologies
Q3-24 Advanced Technologies -2% 19% $40M $120M Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) Highlights (in millions of $) 53 53 12.0 11.1 11.3 37.0% 51 51 10.5 45 10.0 9.2 32.0% Solid contributions 8.0 7.1 27.0% from HP
Slide 18: Q3-24 Learning
Q3-24 Learning -14% 16% $154M $294M Organic Growth Acquisitive Growth Contract Signings Backlog Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) Highlights (in millions of $) 6.0 27 27 28 27 5.0 37.0% Acquired Mabway 24 32.0% 4.0 4.2 4.0 3.8 3.4 27.0% Short term defence 3.1 3.0 22.0
Slide 19: Appendix B – Reconciliation of Non-GAAP measures
Appendix B – Reconciliation of Non-GAAP measures © 2024 Calian Group Ltd. | 19
Slide 20: Reconciliation of Non-GAAP Measures – Adj. EBITDA
Reconciliation of Non-GAAP Measures – Adj. EBITDA Three months ended Nine months ended (in thousands of $) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net profit $1,298 $4,673 $11,748 $13,766 Depreciation of equipment and application software 2,494 2,361 7,298 6,910 Depreciation of right
Slide 21: Reconciliation of Non-GAAP Measures – Operating FCF
Reconciliation of Non-GAAP Measures – Operating FCF Three months ended Nine months ended (in thousands of $, except per share amounts and %) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Cash flows generated from operating activities $14,478 $2,545 $67,804 $34,071 Property, plant and equip
Slide 22: Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA
Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA (in thousands of $, except ratio) June 30, 2024 Sept. 30, 2023 Cash 45,999 33,734 Debt facility 94,000 37,750 Net debt (net cash) 48,001 4,016 Trailing twelve month adjusted EBITDA 82,239 65,987 Net debt to adjusted EBITDA 0.6 0.1 © 2024 Cal
Slide 23: Thank you
Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations ir@calian.com