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Calian Reports Record Results for the Second Quarter

Calian Group Ltd.
Calian Group Ltd.

(All amounts in release are in Canadian dollars)

OTTAWA, May 14, 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 second quarter ended March 31, 2024.

Q2-24 Highlights:

  • Revenue up 19% to $201 million

  • Gross margin at 34.8%, up from 30.9% last year

  • Adjusted EBITDA1 up over 50% to $25.7 million

  • Operating free cash flow1 of $17.8 million

  • Net liquidity of $157 million

  • Appointed President, Advanced Technologies

  • Completed the acquisition of the nuclear assets of MDA Ltd. on March 5, 2024

  • Completed the acquisition of Mabway on May 9, 2024

  • FY24 guidance increased

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Highlights

Three months ended

 

Six months ended

 

(i(in millions of $, except per share & margins)

March 31, 

 

March 31, 

 

 

2024

 

2023

 

%

 

2024

 

2023

 

%

 

Revenue

201.3

 

168.5

 

19

%

380.4

 

316.1

 

20

%

Adjusted EBITDA1

25.7

 

16.8

 

53

%

45.2

 

31.1

 

45

%

Adjusted EBITDA %1

12.8

%

10.0

%

277bps

11.9

%

9.8

%

204bps

Net Profit

4.9

 

4.5

 

9

%

10.5

 

9.1

 

15

%

EPS Diluted

0.41

 

0.38

 

8

%

0.87

 

0.78

 

12

%

Operating Free Cash Flow1

17.8

 

10.7

 

67

%

32.0

 

22.8

 

40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

ADVERTISEMENT


Access the full report on the Calian Financials web page.
Register for the conference call on Wednesday, May 15, 2024, 8:30 a.m. Eastern Time.

We sealed the first half of the year with a record quarter,” said Kevin Ford, Calian Chief Executive Officer. “Revenues, gross margin and adjusted EBITDA all hit historical highs demonstrating the strength of our business model and the successful execution of our three-year strategic plan. Since the start of FY24, revenues are up 20%, profitability and margins have increased significantly and over one third of our 3-year M&A target agenda has been completed with three acquisitions. Given our solid results in the first half, our confidence for the balance of the year and the contribution from recent acquisitions, we increased our FY24 guidance. We are on track to deliver another record year and one step closer to our objective of reaching one billion dollars by the end of FY26,” stated Mr. Ford.

Second Quarter Results

Revenues increased 19%, from $169 million to $201 million. This represents the highest quarterly revenue in the Company’s history and the first time surpassing the $200 million mark in a single quarter. Acquisitive growth was 16% and was generated by the acquisitions of Hawaii Pacific Teleport (“HPT”), Decisive and to a lesser extent the nuclear assets from MDA Ltd. Organic growth was 3% and was driven by double digit growth in Health.

Gross margin reached a record 34.8%, representing its 8th consecutive quarter above 30%. Adjusted EBITDA1 reached a record $25.7 million, up over 50% from the same period last year, driven by revenue growth and margin expansion as well as the benefits generated from the restructuring plan implemented midway through the fourth quarter. Adjusted EBITDA1 margin reached a record 12.8%, up from 10.0% in the same period last year, as a result of a favorable revenue mix and increased volume.

Net profit reached $4.9 million, or $0.41 per diluted share, up from $4.5 million, or $0.38 per diluted share for the same period last year.

Liquidity and Capital Resources

“In the second quarter we generated $17.8 million in operating free cash flow1, representing a 69% conversion rate from adjusted EBITDA1,” said Patrick Houston, Calian CFO. “We used our cash to repay $25 million of our credit facility and to invest in our business with the acquisition of the nuclear assets of MDA and earnout payments on past acquisitions for a total of $11 million and capital expenditures of $3 million. We also provided a return to shareholders in the form of dividends of $3 million. Given the current level of our share price, we will resume our share buyback program after a temporary pause. We ended the quarter with $157 million in net liquidity, well-positioned to pursue our growth objectives,” concluded Mr. Houston.

Mabway Acquisition

On May 9, 2024 Calian agreed to acquire U.K.-based Mabway for up to $46.4 million, including $37.8 million of cash upfront on closing and $8.6 million of earnouts. Mabway is a leader in the management of large-scale defence role-playing environments that simulate real-world operational environments and provides technical engineering education for naval and maritime communities. The company has been a prime supplier to the British Army since 2012. Mabway has several offices across the U.K., a workforce of more than 1,000 ex-military and civilian permanent staff and contractors, and services reaching into Europe and the Middle East. Mabway will be integrated in Calian’s Learning segment.

Appointed President, Advanced Technologies

On March 27, 2024, Calian appointed Valerie Travain-Milone as President, Advanced Technologies. Travain-Milone brings extensive leadership experience across GNSS, telecom, space, cybersecurity and digital services. Known for her purpose-driven approach and passion for technology, she has consistently nurtured teams towards success and growth. Holding an MBA in aerospace and with global experience in the Pacific, Europe and North America, her visionary leadership in her past role as CEO of Atos Canada fuelled the company’s expansion and accelerated revenue growth.

Acquired MDA Ltd. Nuclear Assets

On March 5, 2024, Calian and MDA Ltd. (MDA), a trusted global mission partner, have completed a transaction in which Calian has purchased assets associated with MDA’s nuclear services. MDA has provided professional services to the Canadian nuclear industry for more than 30 years, supported by a highly specialized team of engineers delivering complex project planning and management for large nuclear outages and refurbishment projects, including experience in nuclear outage tooling. MDA’s nuclear team will be integrated into Calian’s existing Nuclear business within its Advanced Technologies segment.

Normal Course Issuer Bid

In the three-month period ended March 31, 2024, as part of its Normal Course Issuer Bid, the Company did not repurchase shares for cancellation. Since the launch of the Normal Course Issuer Bid on September 1, 2023, the Company repurchased 59,320 common shares for cancellation in consideration of $3.0 million.

Quarterly Dividend

Today, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable June 11, 2024, to shareholders of record as of May 28, 2024. Dividends paid by the Company are considered “eligible dividend” for tax purposes.

Guidance Increased

(in thousands of $)

Guidance for the year ended September 30, 2024

FY23 Results

Growth
Midpoint vs
FY23

Low

Midpoint

High

Revenue

750,000

780,000

810,000

658,584

18

%

Adj. EBITDA1

86,000

89,000

92,000

65,987

35

%

 

 

 

 

 

 


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 the press release.


This guidance includes the full-year contribution from the Hawaii Pacific Teleport acquisition, 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 18% and 35%, respectively, and an adjusted EBITDA1 margin of 11.4%. It would represent the 7th consecutive year of double-digit growth and record levels.

About Calian

www.calian.com

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:
pr@calian.com
613-599-8600 x 2298

Investor Relations inquiries:
ir@calian.com

-----------------------------------------------------------------------------

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: info@calian.com


CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at March 31, 2024 and September 30, 2023
(Canadian dollars in thousands, except per share data)

 

 

 

 

 

 

 

March 31, 

 

September 30, 

 

2024

 

2023

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

$

45,866

 

$

33,734

Accounts receivable

 

231,379

 

 

173,052

Work in process

 

16,137

 

 

16,580

Inventory

 

25,015

 

 

21,983

Prepaid expenses

 

24,727

 

 

19,040

Derivative assets

 

41

 

 

155

Total current assets

 

343,165

 

 

264,544

NON-CURRENT ASSETS

 

 

 

 

 

Property, plant and equipment

 

38,420

 

 

37,223

Right of use assets

 

35,239

 

 

34,637

Prepaid expenses

 

9,997

 

 

10,386

Deferred tax asset

 

1,551

 

 

967

Investments

 

3,673

 

 

3,673

Acquired intangible assets

 

119,804

 

 

75,160

Goodwill

 

193,333

 

 

159,133

Total non-current assets

 

402,017

 

 

321,179

TOTAL ASSETS

$

745,182

 

$

585,723

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Debt facility

$

 

$

37,750

Accounts payable and accrued liabilities

 

188,680

 

 

105,550

Provisions

 

2,148

 

 

2,848

Unearned contract revenue

 

39,410

 

 

32,423

Lease obligations

 

5,106

 

 

4,949

Contingent earn-out

 

27,948

 

 

11,263

Derivative liabilities

 

108

 

 

353

Total current liabilities

 

263,400

 

 

195,136

NON-CURRENT LIABILITIES

 

 

 

 

 

Debt facility

 

69,000

 

 

Lease obligations

 

32,942

 

 

32,057

Unearned contract revenue

 

21,561

 

 

15,592

Contingent earn-out

 

2,806

 

 

2,535

Deferred tax liabilities

 

20,106

 

 

12,031

Total non-current liabilities

 

146,415

 

 

62,215

TOTAL LIABILITIES

 

409,815

 

 

257,351

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Issued capital

 

228,617

 

 

225,540

Contributed surplus

 

5,631

 

 

4,856

Retained earnings

 

99,840

 

 

96,859

Accumulated other comprehensive income (loss)

 

1,279

 

 

1,117

TOTAL SHAREHOLDERS’ EQUITY

 

335,367

 

 

328,372

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

745,182

 

$

585,723

Number of common shares issued and outstanding

 

11,854,851

 

 

11,812,650

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.



CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT
For the three and six months ended March 31, 2024 and 2023
(Canadian dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 

 

 

March 31, 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

$

201,268

 

$

168,543

 

$

380,447

 

$

316,086

 

Cost of revenues

 

131,231

 

 

116,452

 

 

252,192

 

 

218,776

 

Gross profit

 

70,037

 

 

52,091

 

 

128,255

 

 

97,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

15,014

 

 

11,831

 

 

27,365

 

 

22,974

 

General and administration

 

26,636

 

 

20,493

 

 

50,270

 

 

37,893

 

Research and development

 

2,695

 

 

2,922

 

 

5,414

 

 

5,343

 

Profit before under noted items

 

25,692

 

 

16,845

 

 

45,206

 

 

31,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

2,496

 

 

2,252

 

 

4,804

 

 

4,549

 

Depreciation of right of use assets

 

1,468

 

 

1,015

 

 

2,931

 

 

2,022

 

Amortization of acquired intangible assets

 

6,149

 

 

3,450

 

 

11,384

 

 

6,811

 

Restructuring expense

 

1,495

 

 

 

 

1,495

 

 

 

Deemed compensation

 

911

 

 

50

 

 

1,515

 

 

147

 

Changes in fair value related to contingent earn-out

 

4,088

 

 

2,562

 

 

4,814

 

 

3,304

 

Profit before interest income and income tax expense

 

9,085

 

 

7,516

 

 

18,263

 

 

14,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

1,734

 

 

95

 

 

3,281

 

 

218

 

Income tax expense

 

2,426

 

 

2,904

 

 

4,532

 

 

4,956

 

NET PROFIT

$

4,925

 

$

4,517

 

$

10,450

 

$

9,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.42

 

$

0.39

 

$

0.88

 

$

0.78

 

Diluted

$

0.41

 

$

0.38

 

$

0.87

 

$

0.78

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.



CALIAN GROUP LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and six months ended March 31, 2024 and 2023
(Canadian dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

March 31, 

 

March 31, 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Net profit

$

4,925

 

 

$

4,517

 

 

$

10,450

 

 

$

9,093

 

Items not affecting cash:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

1,426

 

 

 

(27

)

 

 

2,524

 

 

 

(15

)

Changes in fair value related to contingent earn-out

 

4,088

 

 

 

2,562

 

 

 

4,814

 

 

 

3,304

 

Lease obligations interest expense

 

308

 

 

 

122

 

 

 

757

 

 

 

233

 

Income tax expense

 

2,426

 

 

 

2,904

 

 

 

4,532

 

 

 

4,956

 

Employee share purchase plan expense

 

134

 

 

 

138

 

 

 

296

 

 

 

301

 

Share based compensation expense

 

1,010

 

 

 

575

 

 

 

2,023

 

 

 

982

 

Depreciation and amortization

 

10,113

 

 

 

6,717

 

 

 

19,119

 

 

 

13,382

 

Deemed compensation

 

911

 

 

 

50

 

 

 

1,515

 

 

 

147

 

 

 

25,341

 

 

 

17,558

 

 

 

46,030

 

 

 

32,383

 

Change in non-cash working capital

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(49,996

 

 

 

(27,455

)

 

 

(61,185

)

 

 

7,259

 

Work in process

 

1,341

 

 

 

758

 

 

 

443

 

 

 

7,583

 

Prepaid expenses and other

 

(3,483

)

 

 

(2,879

)

 

 

(3,557

)

 

 

785

 

Inventory

 

3,570

 

 

 

2,942

 

 

 

980

 

 

 

(5,023

)

Accounts payable and accrued liabilities

 

59,181

 

 

 

19,729

 

 

 

74,697

 

 

 

(7,539

)

Unearned contract revenue

 

4,534

 

 

 

472

 

 

 

4,740

 

 

 

2,901

 

 

 

40,488

 

 

 

11,125

 

 

 

62,148

 

 

 

38,349

 

Interest paid

 

(1,734

)

 

 

(95

)

 

 

(3,281

)

 

 

(218

)

Income tax paid

 

(2,966

)

 

 

(4,827

)

 

 

(5,541

)

 

 

(6,605

)

 

 

35,788

 

 

 

6,203

 

 

 

53,326

 

 

 

31,526

 

CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Issuance of common shares net of costs

 

945

 

 

 

865

 

 

 

1,639

 

 

 

1,775

 

Dividends

 

(3,319

)

 

 

(3,280

)

 

 

(6,633

)

 

 

(6,542

)

Draw on debt facility

 

(24,750

 

 

 

(7,500

)

 

 

31,250

 

 

 

(7,500

)

Payment of lease obligations

 

(1,429

)

 

 

(913

)

 

 

(2,600

)

 

 

(1,922

)

Repurchase of common shares

 

 

 

 

 

 

 

(1,357

)

 

 

 

 

 

(28,553

)

 

 

(10,828

)

 

 

22,299

 

 

 

(14,189

)

CASH FLOWS USED IN INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

(2,689

)

Business acquisitions

 

(10,840

)

 

 

(5,735

)

 

 

(58,297

)

 

 

(8,660

)

Property, plant and equipment

 

(2,796

)

 

 

(1,931

)

 

 

(5,196

)

 

 

(2,731

)

 

 

(13,636

)

 

 

(7,666

)

 

 

(63,493

)

 

 

(14,080

)

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH INFLOW (OUTFLOW)

$

(6,401

)

 

$

(12,291

)

 

$

12,132

 

 

$

3,257

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

52,267

 

 

 

58,194

 

 

 

33,734

 

 

 

42,646

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

45,866

 

 

$

45,903

 

 

$

45,866

 

 

$

45,903

 

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.


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

 

 

Six months ended

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net profit

$

4,925

 

$

4,517

 

$

10,450

 

$

9,093

 

Depreciation of equipment and application software

 

2,496

 

 

2,252

 

 

4,804

 

 

4,549

 

Depreciation of right of use asset

 

1,468

 

 

1,015

 

 

2,931

 

 

2,022

 

Amortization of acquired intangible assets

 

6,149

 

 

3,450

 

 

11,384

 

 

6,811

 

Restructuring expense

 

1,495

 

 

 

 

1,495

 

 

 

Interest expense

 

1,734

 

 

95

 

 

3,281

 

 

218

 

Changes in fair value related to contingent earn-out

 

4,088

 

 

2,562

 

 

4,814

 

 

3,304

 

Deemed Compensation

 

911

 

 

50

 

 

1,515

 

 

147

 

Income tax

 

2,426

 

 

2,904

 

 

4,532

 

 

4,956

 

Adjusted EBITDA

$

25,692

 

$

16,845

 

$

45,206

 

$

31,100

 


Operating Free Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows generated from operating activities

$

35,788

 

 

$

6,203

 

 

$

53,326

 

 

$

31,526

 

Property, plant and equipment

 

(2,796

)

 

 

(1,931

)

 

 

(5,196

)

 

 

(2,731

)

Free cash flow

$

32,992

 

 

$

4,272

 

 

$

48,130

 

 

$

28,795

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

$

32,992

 

 

$

4,272

 

 

$

48,130

 

 

$

28,795

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Change in non-cash working capital

 

(15,147

)

 

 

6,433

 

 

 

(16,118

)

 

 

(5,966

)

Operating free cash flow

$

17,845

 

 

$

10,705

 

 

$

32,012

 

 

$

22,829

 

Operating free cash flow per share

 

1.51

 

 

 

0.91

 

 

 

2.71

 

 

 

1.96

 

Operating free cash flow conversion

 

69

%

 

 

64

%

 

 

71

%

 

 

73

%


Net Debt to Adjusted EBITDA

 

 

 

 

 

 

 

 

March 31,

 

September 30,

 

 

2024

 

 

2023

 

Cash

$

45,866

 

$

33,734

 

Debt facility

 

69,000

 

 

37,750

 

Net debt (net cash)

 

23,134

 

 

4,016

 

Trailing twelve month adjusted EBITDA

 

80,093

 

 

65,987

 

Net debt to adjusted EBITDA

 

0.3

 

 

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.