Calian Group Ltd.

Good day, ladies and gentlemen, and welcome to your CALIAN third quarter 2021 conference call. All lines have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Kevin Ford, CEO of CALIAN Group. Sir, the floor is yours.

Thank you, Karen, and good morning, everyone. With me this morning is Patrick Houston, our CFO, and we'd like to welcome you to the Calum third quarter 2020 conference call. Before we start, please note that certain information discussed today is forward-looking and subject to important risks and uncertainties. The results predicted in these statements may be materially different from the actual results. It is my pleasure to announce another very strong quarter for Calum. County's third quarter consolidated revenue was $136 million, an increase of 29% from the same period last year and our second highest quarterly revenue achieved in company history. This puts us well on the way to eclipse $500 million in revenue this year with one quarter remaining. This continued revenue growth coming off a record in 2020 demonstrates the company's continued strength in a quickly evolving environment and showcases our four-piston engine running on all cylinders. Beyond our strong revenue performance, we were able to mark new milestones across several key indicators. With gross margins crossing 25% and adjusted EBITDA at $14.9 million, this was a record high quarter. Our adjusted net profit almost doubled, up 98% from the same quarter a year earlier. These significant improvements were the result of a multitude of initiatives we have been working on for many quarters and the result of the hard work of our dedicated team. COVID-19 has raised both challenges and opportunities in how we operate our business. We have had to adapt while meeting COVID-19 restrictions, maintaining our manufacturing capabilities, traveling to customer sites to deploy satellite ground systems, operating our healthcare business, and supporting customers virtually. all while ensuring the safety of our employees. Our financial performance and the positive feedback we get from our customers is a clear sign that the team is rising to the challenge. I'd like to share an update on each of our segments. All four of our segments delivered revenue growth ranging from 16% to 63% when compared to the same period last year. Our diversified approach means that the strength of one segment can offset the performance of another. In this particular quarter, all four segments posted impressive revenue growth. Our learning and IT cyber groups both posted particularly impressive growth due to continued expansion of their footprints and recent acquisitions. Let's take a look at each segment. Unsurprisingly, demand for high-quality healthcare services has increased and customers are reaching out to us on short notice. Our broad expertise has allowed us to respond quickly to our customers' evolving needs, whether it be screening, vaccinations, procurement of healthcare products, primary care, or patient support programs. In Q3, Callion nurses vaccinated over 50,000 Canadians at 19 pop-up clinics, all of which used the Callion Patient Support Program management software. Prime Minister Trudeau paid a virtual visit to one of these clinics and had the opportunity to thank Callion nurses for their contributions. As well, Callion managed seven rapid testing initiatives across Canada, including for the Government of Alberta and Integrated Health Network. Customer retention based on excellent customer delivery is a key strategic focus for Callion, and we're pleased to be a partner to our customers to help them through this challenging time. The advanced technology segments demonstrated the revenue growth of 22% when compared to the same period last year. This revenue increase was supported by two recent acquisitions, the Talisman and Inertronic. Early returns on both of these acquisitions looked promising, and in addition, advanced technologies have demonstrated growth in agtech product sales and continued expansion and growth in European ground system products supported by our STAT service acquisition. Notably, the company made a significant expansion in the automotive sector this quarter, having signed a supply agreement with electric vehicle manufacturer to provide two products for their upcoming vehicle range. We adapted and refined our AccuTenna technology for this specific project, resulting in a patented antenna that meets exacting requirements for phase-based positioning. This win exemplifies our strategic focus on customer diversification and service line innovation. The IT and Cyber Solutions segment saw revenue growth of 60% compared to the same period last year. The acquisition of Dapesoft and iSecurity has resulted in rapid revenue and margin expansion. iSecurity, a leader in cybersecurity, saw the addition of 24 new customers to the portfolio, including the City of Toronto and a Tier 1 Canadian commercial bank. The IT and Cyber Solutions team also supported the COVID-19 response by running instant response for hospitals, and supported keeping hospital systems operational. I'm also proud to share that Daposoft was recognized by Microsoft Canada as the winner of the 2021 Healthcare Impact Award, the third consecutive year that Daposoft has been recognized at the annual Microsoft Canada Impact Award ceremony. Through Daposoft, we launched the Corolla Virtual Care solution in five healthcare networks, serving more than 5 million people in BC, Ontario, and New Brunswick. Our learning segment had the most significant revenue growth at 63% compared to the same period last year. Organic growth comes largely from existing customers, where in the prior year the learning segment was impacted significantly with government-imposed stay-at-home orders causing shutdowns at customer sites. The segment had to adopt over the last 12 months to deliver services remotely to customers in addition to in-person events. As part of our COVID-19 efforts, The learning team provided interim after-action reports for COVID-19 emergency management planning to public sector organizations including the Province of New Brunswick and the City of Nanaimo. Learning also continues to expand into Europe with projects for the French Ministry of Defence and NATO Rapid Reaction Forces, the German Ministry of Defence and the NATO Security Force Assistance Centre of Excellence. Our growing European presence and network represents customer diversification, a key strategic focus, and brings opportunities from NATO member countries. I will now ask Patrick to review the quarterly numbers. Over to you, Patrick.

Thank you, Kevin. Our objective of profitable growth was evident this quarter. The company posted significant growth across the board in revenue, gross margins, and EBITDA. The acquisition growth has been led by strong start from Dave Kasoft and iSecurity, We've got an excellent quarter and continue to have impressive momentum. Gross margins have continued to increase quarter over quarter. This has been the result of our investments in M&A and R&D and being able to deliver differentiated products and services that demand higher prices. Contract signings continue to be strong. We've been able to sign as much work as we deliver for several quarters, which leaves our backlog at over $1.3 billion. Moving on to our key performance indicators, revenue grew by 29% when compared to the same period last year. Our gross margin percentage at an all-time high sits at 25%. EBITDA made a significant jump, up 66% from the same period last year. We've seen efficiencies in our model through accelerated growth, leading to EBITDA margins of 11% this quarter. Adjusted net income is up 98% from the same time last year. Our balance sheet continues to be a strength. Our cash and debt availability is over $130 million at the end of the quarter, putting us in a strong position to maintain our investment and growth posture. I'll now pass it over to Kevin for his final comments.