Quick Summary:
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three and nine months ended June 30, 2024 and 2023 (Canadian dollars in thousands) Three months endedNine months ended June 30,June 30, 2024 2023 2024 2023 CASH FLOWS GENERATED FROM (USED IN) OPERATING ACTIVITIES Net profit$1,298 $4,673 $11,748 $13,766 Items not affecting cash: Interest expense 892 (254) 3,416 (269)Changes in fair value related to contingent earn-out 1,458 138 6,272 3,442 Lease obligations interest expense 474 139 1,231 372 Income tax expense 1,723 2,719 6,255 7,675 Employee share purchase plan expense 131 166 427 467 Share based compensation expense 1,239 673 3,262 1,655 Depreciation and amortization 10,796 7,091 29,915 20,473 Deemed compensation 1,010 — 2,525 147 19,021 15,345 65,051 47,728 Change in non-cash working capital Accounts receivable 88,441 3,105 27,256 10,364 Work in process (1,829) 9,536 (1,386) 17,119 Prepaid expenses and other 886 2,234 (2,671) 3,019 Inventory 813 (190) 1,793 (5,213)Accounts payable and accrued liabilities (84,893) (19,883) (10,196) (27,422)Unearned contract revenue (3,059) (6,891) 1,681 (3,990) 19,380 3,256 81,528 41,605 Interest paid (1,366) 114 (4,647) (104)Income tax paid (3,536) (825) (9,077) (7,430) 14,478 2,545 67,804 34,071 CASH FLOWS GENERATED FROM (USED IN) FINANCING ACTIVITIES Issuance of common shares net of costs 529 366 2,168 2,141 Dividends (3,321) (3,286) (9,954) (9,828)Draw on debt facility 25,000 — 56,250 (7,500)Payment of lease obligations (1,371) (1,199) (3,971) (3,121)Repurchase of common shares (1,472) — (2,829) — 19,365 (4,119) 41,664 (18,308)CASH FLOWS USED IN INVESTING ACTIVITIES Investments — — — (2,689)Business acquisitions (29,565) — (87,862) (8,660)Property, plant and equipment (4,145) (3,341) (9,341) (6,072) (33,710) (3,341) (97,203) (17,421) NET CASH INFLOW (OUTFLOW)$133 $(4,915)$12,265 $(1,658)CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 45,866 45,903 33,734 42,646 CASH AND CASH EQUIVALENTS, END OF PERIOD$45,999 $40,988 $45,999 $40,988 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 Nine months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023Net profit$1,298$4,673 $11,748$13,766Depreciation of equipment and application software 2,494 2,361 7,298 6,910Depreciation of right of use asset 1,525 1,127 4,456 3,149Amortization of acquired intangible assets 6,777 3,603 18,161 10,414Restructuring expense 1 — 1,496 —Interest expense 1,366 (115) 4,647 103Changes in fair value related to contingent earn-out 1,458 138 6,272 3,442Deemed Compensation 1,010 — 2,525 147Income tax 1,723 2,719 6,255 7,675Adjusted EBITDA$17,652$14,506 $62,858$45,606 Operating Free Cash Flow Three months ended Nine months ended June 30,June 30,June 30, June 30, 2024 2023 2024 2023 Cash flows generated from operating activities$14,478 $2,545 $67,804 $34,071 Property, plant and equipment (4,145) (3,341) (9,341) (6,072)Free cash flow$10,333 $(796)$58,463 $27,999 Free cash flow$10,333 $(796)$58,463 $27,999 Adjustments: Change in non-cash working capital (359) 12,089 (16,477) 6,123 Operating free cash flow$9,974 $11,293 $41,986 $34,122 Operating free cash flow per share 0.84 0.96 3.55 2.92 Operating free cash flow conversion 57% 78% 67% 75% Net Debt to Adjusted EBITDA June 30,September 30, 2024 2023Cash$45,999$33,734Debt facility 94,000 37,750Net debt (net cash) 48,001 4,016Trailing twelve month adjusted EBITDA 82,239 65,987Net debt to adjusted EBITDA 0.6 0.1 Operating free cash flow measures the company’s cash profitability after required capital spending when excluding working capital changes.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs at June 30, 2024 and September 30, 2023(Canadian dollars in thousands, except per share data) June 30,September 30, 20242023ASSETS CURRENT ASSETS Cash and cash equivalents$45,999$33,734Accounts receivable 147,745 173,052Work in process 19,314 16,580Inventory 24,202 21,983Prepaid expenses 25,886 19,040Derivative assets 23 155Total current assets 263,169 264,544NON-CURRENT ASSETS Property, plant and equipment 41,135 37,223Right of use assets 35,998 34,637Prepaid expenses 8,598 10,386Deferred tax asset 1,264 967Investments 3,673 3,673Acquired intangible assets 135,323 75,160Goodwill 209,969 159,133Total non-current assets 435,960 321,179TOTAL ASSETS$699,129$585,723LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Debt facility$—$37,750Accounts payable and accrued liabilities 112,040 105,550Provisions 2,180 2,848Unearned contract revenue 40,066 32,423Lease obligations 4,957 4,949Contingent earn-out 32,150 11,263Derivative liabilities 56 353Total current liabilities 191,449 195,136NON-CURRENT LIABILITIES Debt facility 94,000 —Lease obligations 33,983 32,057Unearned contract revenue 17,847 15,592Contingent earn-out 5,475 2,535Deferred tax liabilities 22,437 12,031Total non-current liabilities 173,742 62,215TOTAL LIABILITIES 365,191 257,351 SHAREHOLDERS’ EQUITY Issued capital 228,829 225,540Contributed surplus 5,866 4,856Retained earnings 96,860 96,859Accumulated other comprehensive income (loss) 2,383 1,117TOTAL SHAREHOLDERS’ EQUITY 333,938 328,372TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$699,129$585,723Number of common shares issued and outstanding 11,841,237 11,812,650 CALIAN GROUP LTD.
