(All amounts in release are in Canadian dollars)
OTTAWA, Ontario, Nov. 26, 2024 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, today released its results for the fourth quarter and FY24 ended September 30, 2024.
Highlights of Q4-24:
- Revenue up 3% to $181 million
- Gross margin at 35.3%, up from 31.7% last year
- Adjusted EBITDA1 of $23 million (margin of 12.5%) an increase of 11% from the prior year
- Announced collaborations with Microsoft and Walmart Canada
Highlights of record performance in FY24:
- Revenue up 13% to $747 million
- Gross margin at 34.0%, up from 31.0% last year
- Adjusted EBITDA1 at $86 million, up 30% from last year
- Operating free cash flow1 of $58 million, up from $45 million last year
- Net debt to adjusted EBITDA1 ratio of 0.4x
- Repurchased 115,248 shares in consideration of $6 million
| Financial Highlights | Three months ended | Year ended | ||||||||||
| (in millions of $, except per share & margins) | September 30, | September 30, | ||||||||||
| 2024 | 2023 | % | 2024 | 2023 | % | |||||||
| Revenue | 181.2 | 175.9 | 3 | % | 746.6 | 658.6 | 13 | % | ||||
| Adjusted EBITDA1 | 22.7 | 20.4 | 11 | % | 85.5 | 66.0 | 30 | % | ||||
| Adjusted EBITDA %1 | 12.5 | % | 11.6 | % | 90bps | 11.5 | % | 10.0 | % | 150bps | ||
| Adjusted Net Profit1 | 11.5 | 12.7 | (10) % | 51.7 | 40.5 | 28 | % | |||||
| Adjusted EPS Diluted1 | 0.96 | 1.07 | (11) % | 4.33 | 3.45 | 26 | % | |||||
| Operating Free Cash Flow1 | 16.3 | 10.7 | 52 | % | 58.2 | 44.8 | 30 | % | ||||
1 This is a non-GAAP measure. Please refer to the section “Reconciliation of non-GAAP measures to most comparable IFRS measures” at the end of this press release.
Access the full report on the Calian Financials web page.
Register for the video webcast on Tuesday, November 26, 2024, 8:30 a.m. Eastern Time.
“We capped off FY24 with a record quarter,” said Kevin Ford, Calian CEO. “Revenues, gross margin and adjusted EBITDA all hit historical highs for the fourth quarter and the full year. During the year, we completed three strategic acquisitions, signed and acquired contracts valued at $785 million and expanded our product and service offering in new markets. We finished the year with revenues and adjusted EBITDA up 13% and 30%, respectively, on track with our three-year strategic plan of doubling our Adjusted EBITDA1 by the end of FY26. With tailwinds in our growth markets, a solid balance sheet and a strong pipeline of acquisitions, we are on track to achieve another record year in FY25,” stated Mr. Ford.
FY24 Results
Revenues increased 13%, from $659 million to $747 million. This represents the highest revenue for the Company on record and the 7th consecutive year of double-digit growth. Acquisitive growth was 11% and was generated by the acquisitions of Hawaii Pacific Teleport (“HPT”), Decisive Group, the nuclear assets from MDA Ltd and Mabway. Organic growth was 2% and was driven by double-digit growth in the Health segment.
Gross margin reached 34.0% and represents the highest annual gross margin for the Company on record. Adjusted EBITDA1 reached $86 million, up 30% from $66 million last year, driven by the higher margin contribution from acquisitions and increased product revenue. Adjusted EBITDA1 margin reached 11.5%, up from 10.0% last year, as a result of a favorable revenue mix and increased volume.
Net profit reached $11 million, or $0.93 per diluted share, down from $19 million, or $1.61 per diluted share last year. This decrease in profitability is primarily due to increased amortization and interest expenses related to acquisitions, partially offset by higher adjusted EBITDA1. Adjusted net profit1 reached $52 million, or $4.33 per diluted share, up from $40 million, or $3.45 per diluted share last year.
Liquidity and Capital Resources
“In FY24 we generated $58 million in operating free cash flow1, representing a 68% conversion rate from adjusted EBITDA1,” said Patrick Houston, Calian CFO. “We used our cash and a portion of our credit facility to invest in our business with the acquisitions of Decisive Group, the nuclear assets from MDA and Mabway, coupled with earn-outs for $88 million and capital expenditures of $12 million. We also provided a return to shareholders in the form of dividends of $13 million and share buybacks of $6 million. We ended the year with a net debt to adjusted EBITDA1 ratio of 0.4x, well-positioned to pursue our growth objectives,” concluded Mr. Houston.
Normal Course Issuer Bid
On August 28, 2024, the TSX accepted Calian’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”) to purchase for cancellation up to 995,904 common shares during the 12-month period commencing September 1, 2024 and ending August 31, 2025, representing approximately 10% of the public float of its common shares as at August 16, 2024.
On August 30, 2023, the TSX accepted Calian’s Notice of Intention to Make a NCIB to purchase for cancellation up to 1,044,012 common shares during the 12-month period commencing September 1, 2023 and ending August 31, 2024, representing approximately 10% of the public float of its common shares as at August 22, 2023.
In the three-month period ended September 30, 2024, the Company repurchased 61,422 shares for cancellation in consideration of $3 million. For the twelve-month period ended September 30, 2024, the Company repurchased 115,248 shares for cancellation in consideration of $6 million.
Announced Collaborations with Microsoft and Walmart Canada
On October 1, 2024, Calian announced it agreed to collaborate with Walmart Canada to expand the retailer’s specialty pharmacy capabilities through licensing Calian’s custom-built digital health platform NexiTM.
On September 27, 2024, Calian announced a collaboration with Microsoft to offer scalable cloud-native cybersecurity solutions through the adoption of Microsoft Sentinel.
Quarterly Dividend
On November 25, 2024, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable December 23, 2024, to shareholders of record as of December 9, 2024. Dividends paid by the Company are considered “eligible dividend” for tax purposes.
Guidance
Aligning with industry practice, the Company has decided to change its definition of adjusted EBITDA1 starting in FY25. The table below reconciles the previously reported definition of adjusted EBITDA1 for fiscal years 2023 and 2024 to the new definition of adjusted EBITDA1 that will be used going forward. The new definition of adjusted EBITDA1 adds back stock based compensation expense as well as one-time integration/M&A costs.
| (in thousands of $) | FY2024 | FY2023 | ||
| Adj. EBITDA (previously reported) | 85,535 | 66,548 | ||
| Stock based compensation expense | 4,373 | 3,870 | ||
| Integration/M&A costs | 2,251 | 545 | ||
| Adj. EBITDA (going forward) | 92,159 | 70,963 | ||
The table below presents the FY25 guidance based on the new definition of adjusted EBITDA.
| Guidance for the year ended September 30, 2025 | FY24 Results | YOY Growth at Midpoint |
||||
| (in thousands of $) | Low | Midpoint | High | |||
| Revenue | 800,000 | 840,000 | 880,000 | 746,611 | 12 | % |
| Adj. EBITDA1 | 96,000 | 101,000 | 106,000 | 92,159 | 10 | % |
This guidance includes the full-year contribution from the Decisive Group acquisition, closed on December 1, 2023, the nuclear asset acquisition from MDA Ltd., closed on March 5, 2024 and the Mabway acquisition, closed on May 9, 2024. It does not include any other further acquisitions that may close within the fiscal year. The guidance reflects another record year for the Company and positions it well to achieve its long-term growth targets.
At the midpoint of the range, this guidance reflects revenue and adjusted EBITDA1 growth of 12% and 10%, respectively, and an adjusted EBITDA1 margin of 12.0%. It would represent the 8th consecutive year of double-digit revenue growth and record revenue and adjusted EBITDA1 levels.
Calian Adopts an Advance Notice By-law and Amends and Restates its Operating By-law
Calian Group Ltd. (“Calian” or the “Company”) announces the adoption by its board of directors (the “Board”) of an advance notice by-law (the “Advance Notice By-law”) and an amended and restated operating by-law (the “Operating By-law”).
The Advance Notice By-law establishes procedures for shareholders giving advance notice to the Company of nominations for directors at any meeting of shareholders where directors are being elected in order to facilitate an orderly and efficient meeting process and allow all shareholders a reasonable opportunity to evaluate all proposed nominees and make an informed voting decision. The Advance Notice By-law is similar to the advance notice by-laws adopted by many other Canadian companies.
Under the Advance Notice By-law, shareholders seeking to nominate a candidate for a Board seat are generally required to provide notice to the Company in the event of:
- an annual meeting of the shareholders, not less than 30 days before the date of the meeting, or 40 days before if the Company uses notice-and-access provisions under National Instrument 54-101 -Communication with Beneficial Owners of Securities of a Reporting Issuer for delivery of proxy related materials; or
- a special meeting where directors are being elected, not later than the close of business on the 15th day after the announcement of the meeting.
As the Operating By-law was initially adopted in 2002, it has been amended and restated to align with current laws and governance practices. The amendments include, among other things, to allow the Chief Executive Officer to delegate signing authority, to remove deviations from the Canada Business Corporations Act with respect to conflicts of interest and the inspection of corporate records, to remove the discretion for the board to revise the quorum for a meeting of the directors, to allow the board to appoint from among its members its chair, to reflect the current committees, to remove reference to specific officer duties and powers and to clarify the term of office, to allow for dividends to be paid electronically, to allow the board to call for a shareholder meeting by entirely electronic means only if there is a compelling reason to not hold the meeting in person, to allow the board discretion to accept proxies after the deadline, and to increase the quorum for a meeting of the shareholders to two persons present and holding or representing by proxy at least 25% of the votes attached to all shares entitled to vote at the meeting.
In accordance with the Canada Business Corporations Act, both the Operating By-law and the Advance Notice By-law are currently in effect and the Company will submit them to the shareholders at the next annual meeting. Provided the shareholders confirm the Operating By-law and the Advance Notice By-law at the meeting, each will continue in effect in the form it was confirmed.
The foregoing descriptions are only summaries and copies of the Operating By-law and Advance Notice By-law have been filed under the Company’s profile on SEDAR+ at www.sedarplus.ca.
About Calian
We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer reliable solutions that solve complex challenges. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.
Product or service names mentioned herein may be the trademarks of their respective owners.
Media inquiries:
[email protected]
613-599-8600
Investor Relations inquiries:
[email protected]
—————————————————————————–
DISCLAIMER
Certain information included in this press release 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 accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.
Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: [email protected]
| CALIAN GROUP LTD. AUDITED ANNUAL CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at September 30, 2024 and 2023 (Canadian dollars in thousands, except per share data) |
|||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 51,788 | $ | 33,734 | |||
| Accounts receivable | 157,376 | 173,052 | |||||
| Work in process | 20,437 | 16,580 | |||||
| Inventory | 23,199 | 21,983 | |||||
| Prepaid expenses | 23,978 | 19,040 | |||||
| Derivative assets | 32 | 155 | |||||
| Total current assets | 276,810 | 264,544 | |||||
| NON-CURRENT ASSETS | |||||||
| Property, plant and equipment | 40,962 | 37,223 | |||||
| Right of use assets | 36,383 | 34,637 | |||||
| Prepaid expenses | 7,820 | 10,386 | |||||
| Deferred tax asset | 3,425 | 967 | |||||
| Investments | 3,875 | 3,673 | |||||
| Acquired intangible assets | 128,253 | 75,160 | |||||
| Goodwill | 210,392 | 159,133 | |||||
| Total non-current assets | 431,110 | 321,179 | |||||
| TOTAL ASSETS | $ | 707,920 | $ | 585,723 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Debt facility | $ | — | $ | 37,750 | |||
| Accounts payable and accrued liabilities | 124,884 | 105,550 | |||||
| Provisions | 3,075 | 2,848 | |||||
| Unearned contract revenue | 41,723 | 32,423 | |||||
| Lease obligations | 5,645 | 4,949 | |||||
| Contingent earn-out | 39,136 | 11,263 | |||||
| Derivative liabilities | 92 | 353 | |||||
| Total current liabilities | 214,555 | 195,136 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Debt facility | 89,750 | — | |||||
| Lease obligations | 33,798 | 32,057 | |||||
| Unearned contract revenue | 14,503 | 15,592 | |||||
| Contingent earn-out | 2,697 | 2,535 | |||||
| Deferred tax liabilities | 25,862 | 12,031 | |||||
| Total non-current liabilities | 166,610 | 62,215 | |||||
| TOTAL LIABILITIES | 381,165 | 257,351 | |||||
| SHAREHOLDERS’ EQUITY | |||||||
| Issued capital | 225,747 | 225,540 | |||||
| Contributed surplus | 6,019 | 4,856 | |||||
| Retained earnings | 91,268 | 96,859 | |||||
| Accumulated other comprehensive income (loss) | 3,721 | 1,117 | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 326,755 | 328,372 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 707,920 | $ | 585,723 | |||
| Number of common shares issued and outstanding | 11,802,364 | 11,812,650 | |||||
| CALIAN GROUP LTD. AUDITED ANNUAL CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT For the three and twelve month periods ended September 30, 2024 and 2023 (Canadian dollars in thousands, except per share data) |
|||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 181,166 | $ | 175,948 | $ | 746,611 | $ | 658,583 | |||||||
| Cost of revenues | 117,242 | 120,152 | 492,597 | 454,371 | |||||||||||
| Gross profit | 63,924 | 55,796 | 254,014 | 204,212 | |||||||||||
| Selling and marketing | 13,466 | 10,545 | 55,115 | 45,410 | |||||||||||
| General and administration | 24,734 | 22,034 | 101,397 | 81,363 | |||||||||||
| Research and development | 3,047 | 2,836 | 11,967 | 11,452 | |||||||||||
| Profit before under noted items | 22,677 | 20,381 | 85,535 | 65,987 | |||||||||||
| Depreciation of property, plant and equipment | 2,750 | 2,133 | 10,048 | 9,043 | |||||||||||
| Depreciation of right of use assets | 1,587 | 1,352 | 6,043 | 4,501 | |||||||||||
| Amortization of acquired intangible assets | 7,577 | 4,460 | 25,738 | 14,874 | |||||||||||
| Restructuring expense | 368 | 2,618 | 1,864 | 2,618 | |||||||||||
| Other changes in fair value | (202 | ) | (314 | ) | (202 | ) | (314 | ) | |||||||
| Deemed compensation | 1,797 | 403 | 4,322 | 550 | |||||||||||
| Changes in fair value related to contingent earn-out | 2,495 | 416 | 8,767 | 3,858 | |||||||||||
| Profit before interest income and income tax expense | 6,305 | 9,313 | 28,955 | 30,857 | |||||||||||
| Interest expense | 1,988 | 793 | 6,635 | 896 | |||||||||||
| Income tax expense – current | 4,623 | 3,776 | 15,442 | 12,919 | |||||||||||
| Income tax expense (recovery) – deferred | 262 | (375 | ) | (4,302 | ) | (1,843 | ) | ||||||||
| NET PROFIT | $ | (568 | ) | $ | 5,119 | $ | 11,180 | $ | 18,885 | ||||||
| Net profit per share: | |||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.43 | $ | 0.95 | $ | 1.61 | ||||||
| Diluted | $ | (0.05 | ) | $ | 0.43 | $ | 0.93 | $ | 1.61 | ||||||
| CALIAN GROUP LTD. AUDITED ANNUAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three and twelve month periods ended ended September 30, 2024 and 2023 (Canadian dollars in thousands) |
|||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES | |||||||||||||||
| Net profit | $ | (568 | ) | $ | 5,119 | $ | 11,180 | $ | 18,885 | ||||||
| Items not affecting cash: | |||||||||||||||
| Interest expense | 1,410 | 634 | 4,826 | 365 | |||||||||||
| Changes in fair value related to contingent earn-out | 2,495 | 416 | 8,767 | 3,858 | |||||||||||
| Lease obligations interest expense | 578 | 159 | 1,809 | 531 | |||||||||||
| Income tax expense | 4,885 | 3,401 | 11,140 | 11,076 | |||||||||||
| Employee share purchase plan expense | 122 | 130 | 549 | 597 | |||||||||||
| Share based compensation expense | 562 | 1,618 | 3,824 | 3,273 | |||||||||||
| Depreciation and amortization | 11,914 | 7,945 | 41,829 | 28,418 | |||||||||||
| Deemed compensation | 1,797 | 403 | 4,322 | 550 | |||||||||||
| Other changes in fair value | (202 | ) | (314 | ) | (202 | ) | (314 | ) | |||||||
| 22,993 | 19,511 | 88,044 | 67,239 | ||||||||||||
| Change in non-cash working capital | |||||||||||||||
| Accounts receivable | (9,631 | ) | (8,971 | ) | 17,625 | 1,393 | |||||||||
| Work in process | (1,123 | ) | 6,166 | (2,509 | ) | 23,285 | |||||||||
| Prepaid expenses and other | 3,007 | (3,849 | ) | 337 | (829 | ) | |||||||||
| Inventory | 1,002 | 1,873 | 2,795 | (3,340 | ) | ||||||||||
| Accounts payable and accrued liabilities | 9,133 | 9,476 | (1,064 | ) | (17,947 | ) | |||||||||
| Unearned contract revenue | (1,687 | ) | 4,918 | (6 | ) | 928 | |||||||||
| 23,694 | 29,124 | 105,222 | 70,729 | ||||||||||||
| Interest paid | (1,988 | ) | (791 | ) | (6,635 | ) | (895 | ) | |||||||
| Income tax paid | (2,289 | ) | (5,629 | ) | (11,366 | ) | (13,059 | ) | |||||||
| 19,417 | 22,704 | 87,221 | 56,775 | ||||||||||||
| CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES | |||||||||||||||
| Issuance of common shares net of costs | 618 | 760 | 2,786 | 2,901 | |||||||||||
| Dividends | (3,397 | ) | (3,335 | ) | (13,351 | ) | (13,163 | ) | |||||||
| Draw on debt facility | (4,250 | ) | 37,750 | 52,000 | 30,250 | ||||||||||
| Payment of lease obligations | (1,318 | ) | (1,261 | ) | (5,289 | ) | (4,382 | ) | |||||||
| Repurchase of common shares | (2,819 | ) | (1,670 | ) | (5,648 | ) | (1,670 | ) | |||||||
| (11,166 | ) | 32,244 | 30,498 | 13,936 | |||||||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||||||||
| Investments | — | — | — | (2,689 | ) | ||||||||||
| Business acquisitions | — | (59,834 | ) | (87,862 | ) | (68,494 | ) | ||||||||
| Property, plant and equipment | (2,462 | ) | (2,368 | ) | (11,803 | ) | (8,440 | ) | |||||||
| (2,462 | ) | (62,202 | ) | (99,665 | ) | (79,623 | ) | ||||||||
| NET CASH INFLOW (OUTFLOW) | $ | 5,789 | $ | (7,254 | ) | $ | 18,054 | $ | (8,912 | ) | |||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,999 | 40,988 | 33,734 | 42,646 | |||||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 51,788 | $ | 33,734 | $ | 51,788 | $ | 33,734 | |||||||
Reconciliation of Non-GAAP Measures to Most Comparable IFRS Measures
These non-GAAP measures are mainly derived from the consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. The exclusion of certain items from non-GAAP performance measures does not imply that these are necessarily nonrecurring. From time to time, we may exclude additional items if we believe doing so would result in a more transparent and comparable disclosure. Other entities may define the above measures differently than we do. In those cases, it may be difficult to use similarly named non-GAAP measures of other entities to compare performance of those entities to the Company’s performance.
Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of the Company’s financial reports with enhanced understanding of the Company’s results and related trends and increases transparency and clarity into the core results of the business. Adjusted EBITDA excludes items that do not reflect, in our opinion, the Company’s core performance and helps users of our MD&A to better analyze our results, enabling comparability of our results from one period to another.
Adjusted EBITDA
| Three months ended | Year ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net profit | $ | (568 | ) | $ | 5,119 | $ | 11,180 | $ | 18,885 | |||||||
| Depreciation of equipment and application software | 2,750 | 2,133 | 10,048 | 9,043 | ||||||||||||
| Depreciation of right of use asset | 1,587 | 1,352 | 6,043 | 4,501 | ||||||||||||
| Amortization of acquired intangible assets | 7,577 | 4,460 | 25,738 | 14,874 | ||||||||||||
| Restructuring expense | 368 | 2,618 | 1,864 | 2,618 | ||||||||||||
| Other changes in fair value | (202 | ) | (314 | ) | (202 | ) | (314 | ) | ||||||||
| Interest expense | 1,988 | 793 | 6,635 | 896 | ||||||||||||
| Changes in fair value related to contingent earn-out | 2,495 | 416 | 8,767 | 3,858 | ||||||||||||
| Deemed Compensation | 1,797 | 403 | 4,322 | 550 | ||||||||||||
| Income tax | 4,885 | 3,401 | 11,140 | 11,076 | ||||||||||||
| Adjusted EBITDA | $ | 22,677 | $ | 20,381 | $ | 85,535 | $ | 65,987 | ||||||||
Adjusted Net Profit and Adjusted EPS
| Three months ended | Year ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net profit | $ | (568 | ) | $ | 5,119 | $ | 11,180 | $ | 18,885 | |||||||
| Restructuring expense | 368 | 2,618 | 1,864 | 2,618 | ||||||||||||
| Other changes in fair value | (202 | ) | (314 | ) | (202 | ) | (314 | ) | ||||||||
| Changes in fair value related to contingent earn-out | 2,495 | 416 | 8,767 | 3,858 | ||||||||||||
| Deemed Compensation | 1,797 | 403 | 4,322 | 550 | ||||||||||||
| Amortization of intangibles | 7,577 | 4,460 | 25,738 | 14,874 | ||||||||||||
| Adjusted net profit | 11,467 | 12,702 | 51,669 | 40,471 | ||||||||||||
| Weighted average number of common shares basic | 11,835,037 | 11,790,964 | 11,837,520 | 11,714,887 | ||||||||||||
| Adjusted EPS Basic | 0.97 | 1.08 | 4.36 | 3.45 | ||||||||||||
| Adjusted EPS Diluted | $ | 0.96 | $ | 1.07 | $ | 4.33 | $ | 3.45 | ||||||||
Operating Free Cash Flow
| Three months ended | Year ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cash flows generated from operating activities | $ | 19,417 | $ | 22,704 | $ | 87,221 | $ | 56,775 | ||||||||
| Property, plant and equipment | (2,462 | ) | (2,368 | ) | (11,803 | ) | (8,440 | ) | ||||||||
| Free cash flow | $ | 16,955 | $ | 20,336 | $ | 75,418 | $ | 48,335 | ||||||||
| Free cash flow | $ | 16,955 | $ | 20,336 | $ | 75,418 | $ | 48,335 | ||||||||
| Adjustments: | ||||||||||||||||
| Change in non-cash working capital | (701 | ) | (9,613 | ) | (17,178 | ) | (3,490 | ) | ||||||||
| Operating free cash flow | $ | 16,254 | $ | 10,723 | $ | 58,240 | $ | 44,845 | ||||||||
| Operating free cash flow per share – basic | 1.37 | 0.91 | 4.92 | 3.83 | ||||||||||||
| Operating free cash flow per share – diluted | 1.35 | 0.91 | 4.86 | 3.81 | ||||||||||||
| Operating free cash flow conversion | 72 | % | 53 | % | 68 | % | 68 | % | ||||||||
Net Debt to Adjusted EBITDA
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| Cash | $ | 51,788 | $ | 33,734 | ||||
| Debt facility | 89,750 | 37,750 | ||||||
| Net debt (net cash) | 37,962 | 4,016 | ||||||
| Trailing twelve month adjusted EBITDA | 85,535 | 65,987 | ||||||
| Net debt to adjusted EBITDA | 0.4 | 0.1 | ||||||
Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes. The Company’s ability to convert adjusted EBITDA to operating free cash flow is critical for the long term success of its strategic growth. These measurements better align the reporting of our results and improve comparability against our peers. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Non-GAAP measures should not be considered a substitute for or be considered in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled adjusted profit to the most comparable IFRS financial measure as shown above.
