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Calian Group updates guidance estimates after ‘strong finish’ to fiscal 2023

October 30, 2023
2:40 PM
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Calian Group is forecasting its adjusted fiscal 2023 earnings will be at the top end of its guidance range after a “strong finish” put the firm on track for its sixth consecutive year of double-digit revenue growth. The Kanata-based company said late last week its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal 2023 year ended Sept. 30 is expected to be on the high side of the $60-million-to-$65-million range it predicted earlier this year. Based on preliminary, unaudited financial results, Calian is also predicting its revenues will end up in the middle of the guidance range. The firm’s projections are calling for sales of between $630 million and $680 million in fiscal 2023. CEO Kevin Ford said the company is updating its fiscal 2023 guidance estimates “based on a strong finish” to its fourth quarter. “These preliminary results represent the highest ever revenue and adjusted EBITDA quarter and the sixth consecutive year of double-digit revenue growth,” Ford said in a statement. Calian plans to release its fiscal 2023 financial results after markets close on Nov. 27. The company said it will not provide any additional comments until after the audited year-end financial statements have been published. The Kanata-based firm, which delivers a range of products and services from cybersecurity software to satellite components, has had a rough ride on the markets in 2023 despite heading toward another year of record growth. Calian’s stock has shed more than 25 per cent of its value since the start of January. It now trades at about $49.50 on the Toronto Stock Exchange, well below its 52-week high of $68.53. Its share price plunged in mid-August after the company announced it was making cuts in “targeted areas” following a third quarter that saw Calian report lower profits and adjusted EBITDA than a year earlier despite bringing in higher overall revenues. Ford said in August the restructuring plan was expected to generate annual savings of about $8 million, with total one-time implementation costs of about $2 million. Calian said last week’s updated guidance projections included “benefits” from the plan. The cuts came shortly after Calian completed its $62-million acquisition of satellite communications provider Hawaii Pacific Teleport, the firm’s 12th M&A deal since 2020 as it pushes toward its goal of reaching $1 billion in annual revenues.