Kanata-based Calian Group continues to rewrite its corporate record book, posting year-over-year sales gains in three of its four main service lines last quarter en route to another all-time revenue high.
After cracking the $100-million quarterly revenue barrier for the first time ever earlier this year, Calian (TSX:CGY) built on that momentum in the third quarter, posting revenues of $106 million for the three-month period ending June 30.
That represented a year-over-year gain of 19 per cent and marked the eighth consecutive quarter of record revenues for Calian, which offers a diverse range of services from medical clinics and military training exercises to IT consulting to mobile wireless technology.
Buoyed by a surge in incoming contracts and a pair of recent acquisitions aimed at expanding its reach in the cybersecurity and military training sectors, the company also raised its overall fiscal 2020 revenue guidance.
Calian is now projecting revenues of between $415 million and $435 million for the current fiscal year, up from earlier forecasts in the range of $380 million to $410 million.
Appearing to barely skip a beat in the midst of the pandemic-triggered global economic crisis, Calian also kept another impressive streak going in Q3 – it recorded a net profit of $3.9 million, the 75th quarter in a row the firm has finished in the black.
CEO Kevin Ford noted that despite the worldwide economic downturn, Calian still saw growth in three of its four service lines.
The health segment was the big winner, gaining 50 per cent on the strength of Calian’s acquisitions of Ottawa-based health-tech firms Allphase Clinical Research Services and Alio Health Services earlier this year and a new contract with SNC-Lavalin and PAE to provide material and supplies for up to 10 mobile respiratory care units as part of the federal government’s pandemic response. The first phase of the deal inked in June could be worth up to $26 million.
But Ford noted that the advanced technologies and IT segments also saw hefty gains in the quarter, more than offsetting a 29 per cent plunge in revenues in its learning segment as customers pressed pause on training exercises during the COVID-19 lockdown.
“I’m pretty excited by the fact that in a very challenging environment, we’re still seeing lots of opportunities,” the CEO told analysts.
The deal with SNC-Lavalin and PAE was just one of a number of significant wins in a quarter that saw Calian sign $154 million worth of contracts – including the renewals of an IT agreement worth $22 million with the Department of National Defence and a $54-million training deal with the Canadian Forces School of Aerospace and Defence.
Ford praised the work of the company’s 3,400-plus employees during the pandemic, noting the firm has “remained resilient” throughout the crisis and continues to seek out opportunities to grow both organically and through acquisitions.
Calian shares were up more than six per cent to $63 in late-morning trading on the Toronto Stock Exchange.