Calian Group Ltd.

Greetings and welcome to the Callion Group's fourth quarter and year end results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone wants to require operator assistance during the conference, please press star zero on your telephone keypad. It is now my pleasure to introduce Kevin Ford, CEO of Callion Group. Thank you, Kevin. You may begin.

Thank you, Daryl, and good morning, everyone. This morning with me is Patrick Houston, our CFO, and we'd like to welcome you to Callion's fourth quarter and fiscal year 2020 conference call. We're trying a new platform for this call, which enables us to present our results with visuals and in the future facilitate online Q&A. So fingers crossed the platform works, but we're pretty confident and look forward to using this format moving forward. So mandatory that I say that certain information discussed today is forward-looking. and subject to important risks and uncertainties. The results predicted in these statements and this call may be material different from actual results. Okay, I'd like to get going and basically, you know, I'm very pleased to announce another record quarter of revenue for Callion, which we have now accomplished for nine consecutive quarters. The results demonstrate our continued growth and the resilience of Callion's diversified business. Q4's consolidated revenue was a record $123 million, up 35% from the same period last year. This capped a record year for Callion. Revenue ended the year at $432 million, an increase of 26% over the previous year. I'm also glad to report that our efforts to diversify our customer base into new market verticals and commercial customers have taken hold. We saw revenue outside our traditional government revenue grow by 88% over 2019, and now represents 45% of our consolidated revenue. The quarter also marked our 76th consecutive profitable quarter, highlighting that we continue to maintain profitability as we execute our growth plan. The ongoing public health crisis has had some short-term impacts in all of our segments, and evolved the way in which they deliver our products and services to our diverse customers. Our teams have raised to the challenge and in short order, and as a result, Calliant has remained resilient. Our fourth quarter results reflect our continued focus on delivery of essential services despite challenging environments and continuing our profitable growth. I'd like to spend a moment and provide an update on each of our segments. Our health segment saw tremendous growth in both the fourth quarter and the 2020 fiscal year. Revenue has increased by 41% compared to the previous year. This has been the result of multiple initiatives, the first being our entry into pharmaceutical services through acquisition of AlioHealth, which has seen strong early returns. The second being the delivery of services across Canada with our long-term customer base continuing despite the COVID-19 realities. And finally, we were able to win multiple contracts to deliver services in response to COVID-19. This included provisioning for mobile hospitals, COVID screening for governments and commercial clients, and healthcare services in remote locations. The growth and diversification of our health segment has proven successful over the last three years as we expand and leverage our network and demonstrate our ability to manage complex medical projects. Our advanced technology segment also saw tremendous growth in fiscal 2020. Revenue grew 40% over the previous year as a result of continued deployment of a large ground system project and sales of our first wireless product being deployed by a North American Tier 1 carrier. We were also successful in winning multiple new projects during this year and into 2020 with a strong backlog of work. In learning, revenues for the year decreased by 8%, due to pauses of in-person training due to COVID in the spring. Our team has adjusted quickly to the new environment and revenue for the fourth quarter was above the same quarter last year. We have also recently completed two acquisitions in the learning space in Europe. These acquisitions expand our service offerings and allow us to further diversify our customer base immediately. Finally, our information technology group has continued its steady growth growing by 6% this year and importantly increased its gross margins by 3%, fueled by the growth in our cyber practice. Our recent acquisition of MSEC will contribute new unique services that will continue our margin expansion. I will now ask Patrick to review the quarterly numbers. Over to you, Patrick.

Thank you, Kevin. It's exciting to report another revenue record quarter, with quarterly revenue of $123 million, an increase of 17% from our previous record just three months ago. Our ability to deliver on multiple new and ongoing projects during the quarter speaks to our team's ability to deliver despite any challenges. For the year, revenue ended at $432 million, an increase of 26%. Our long-term growth plans include consistent contributions from both organic and acquisitive growth. Organic growth for the year was 21%, and acquisitive growth continued at 5%. We also completed three new acquisitions in our fourth quarter, which will contribute additional acquisitive growth in the coming quarters. Gross margins ended the quarter at 18.6%, down from our previous quarter due to some of our new projects in the mobile hospital provisioning having lower gross margins and some increased deployment costs in our advanced technology segment. For the year, gross margins were 20.6%, down slightly from the previous year. Our EBITDA performance highlights our objective of achieving profitable growth. EBITDA in 2020 was up 35% when compared to the previous year, and after adjusting to the adoption of IFRS 16, EBITDA growth was up 23%, roughly in line with our record revenue growth. The company has also had a strong year in terms of new wins and signings. All four segments contributed to $693 million of new business signings during the fiscal year. This leaves our realizable backlog at $1.3 billion and total backlog at $1.5 billion. This is up 15% from where we started this fiscal year. Our capital deployment initiatives have continued in our fourth quarter with three acquisitions and total capital deployed of $18 million. Our total equity position between cash on hand and our unused credit facility at the end of the quarter stood at $84 million. I'll now turn the call back over to Kenneth.