Kanata-based Calian Group cracked the $100-million revenue barrier for the first time ever in the second quarter of fiscal 2020 as the company recorded its 74th consecutive quarterly profit.
Calian (TSX:CGY) said Tuesday it booked revenues of $104.5 million for the three-month period ending March 31, a 25 per cent increase over the same period in 2019 and the seventh consecutive quarter it achieved record revenues.
The firm’s net profit of $5.3 million was up 36 per cent from a year earlier. CEO Kevin Ford credited the company’s range of service lines for helping to keep the company on solid footing during the COVID-19 pandemic that has upended the global economy.
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“Calian has remained resilient through this crisis,” he said in a statement. “We again saw the results of our diversified engine at work during the quarter.”
Revenues in three of Calian’s four service lines grew in the second quarter. The firm’s Saskatoon-based advanced technologies segment saw revenues jump from $23.9 million to $39.9 million year-over-year, while revenues in the health segment rose 16 per cent to $32.2 million and the IT division posted a seven per cent gain to $15.1 million on the strength of increased sales of its cybersecurity solutions.
Revenues in the firm’s military training division dipped by $300,000 to $17.3 million, a drop Ford blamed on “delays in major training exercises related to COVID-19 and pace of new business.”
Calian officials said the company achieved several other major objectives in the second quarter, including a public share offering that brought in $69 million – cash Calian said it will use to “pursue new growth opportunities.”
Ford also noted Calian inked $140 million in new contracts in the quarter, including a $54-million deal to provide training services to the Canadian Forces School of Aerospace Technology that could be worth as much as $54 million over six years.
The CEO also said the company officially closed its acquisition of health-tech firms Allphase Clinical Research Services and Alio Health Services in the last quarter, adding that Calian continues “to seek new M&A opportunities across all four of our segments.”
Calian officials said in late March they expected the company to take a revenue hit of between $7 million and $8 million in April and early May due to the pandemic’s effects on the economy.
However, the company reiterated Tuesday it still expects revenues for the current fiscal year to fall between $380 million and $410 million, within the range of its previously announced guidance.
“While the COVID-19 pandemic has impacted Calian, our delivery of essential services has supported the company’s growth during this extraordinary time,” Ford said. “With a solid cash position and access to our debt facility, we have the liquidity we need to carry us through the short term and financing available to support the company’s continued innovation and long-term, profitable growth.”
Calian shares were up 79 cents to $44.91 in late afternoon trading on the Toronto Stock Exchange.
