Q3 2024 Calian Group Ltd Earnings Call Transcript
Key Points
- Calian Group Ltd (CLNFF) reported record results for the third quarter with revenues, gross profit, and adjusted EBITDA all up year-over-year.
- Revenues increased by 11%, with all segments contributing to growth, particularly Health and Advanced Tech, which demonstrated double-digit growth.
- Gross profit rose by 21% and adjusted EBITDA increased by 22%, with respective margins also up year-over-year.
- The company completed the strategic acquisition of Mabway, expanding its military training and simulation solutions globally.
- Calian Group Ltd (CLNFF) signed and acquired new contracts valued at over $300 million, growing its backlog to $1.2 billion.
- The Canadian government's short-term budget reductions impacted Calian Group Ltd (CLNFF), particularly in the ITCS and Advanced Tech segments.
- The Learning segment faced significant impacts due to slower ramp-up of new contracts.
- The ITCS segment was affected by elongated procurement cycles and lower government spending.
- Net profit in Q3 decreased to $1.3 million from $4.7 million in the same period last year, mainly due to higher amortization and interest expenses related to acquisitions.
- The company anticipates being at the bottom end of its FY 2024 guidance range due to short-term operating budget reductions from the Canadian Armed Forces.
Good day, and welcome to the Calian Group third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call may be recorded.
I would like to turn the call over to Jennifer McCaughey, Director of Investor Relations. Please go ahead.
Thank you, Michelle, and good morning, everyone. Thank you for joining us for Calianâs Q3 2024 conference call. Presenting this morning are Kevin Ford, Chief Executive Officer; and Patrick Houston, Chief Financial Officer. They will present financial highlights on our consolidated performance and key business highlights.
As noted on Slide 2, please be advised that certain information discussed today is forward-looking and subject to important risks and uncertainties. The results predicted in these statements may be materially different from actual results. As a reminder, all amounts are expressed in Canadian dollars, except as otherwise specified.
With that, let me turn the call over to Kevin.
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