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AUDITED ANNUAL CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor 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 2023CASH 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.
Adjusted EBITDA Three months ended Year ended September 30, September 30, 2024 2023 2024 2023Net 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 2023Net 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 2023Cash 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 2023Cash $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.
AUDITED ANNUAL CONDENSED CONSOLIDATED STATEMENTS OF NET PROFITFor 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 2023Revenue$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.
