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Calian Group Ltd.
2/15/2024
Good day, and thank you for standing by. Welcome to the CALIAN Group first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference has been recorded. I would now like to hand the conference over to your speaker today, Jennifer McCaughey, Director of Investor Relations. Please go ahead.
Thank you, Shannon, and good morning, everyone. Thank you for joining us for Callion's Q1 and fiscal year 2024 conference call. Presenting this morning are Kevin Ford, Chief Executive Officer, and Patrick Houston, Chief Financial Officer. As noted on slide two, please be advised 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 actual results. As a reminder, all amounts are expressed in Canadian dollars, except as otherwise specified. With that, let me turn the call over to Kevin.
Good morning, and thank you, Jennifer. I'd like to start by saying that you will increasingly hear me talk about Callion on a consolidated basis. While we manage the different segments as distinct P&Ls, We're judging the performance of the company on a consolidated basis. Now for some Q1 highlights. We had a strong start to the year with revenues up 21% driven by double-digit organic growth and the contribution from two recent acquisitions. Organic growth outpaced M&A growth this quarter. Steps to improve our efficiency are bearing fruit with gross margin at an all-time high of 32.5% and adjusted EBITDA margin bordering 11%. These results demonstrate the strength of our business model, our diversification in new markets and offerings, as well as the value creation generated from our M&A agenda. In fact, our M&A engine is working with the completion of two acquisitions in the past six months for a total consideration of approximately $100 million. Notable highlights in Q1 include the completion of the decisive acquisition, which will form a key part of our ITS strength in North America, And we welcome Michael Trombley as president of our IT and cyber services group. The contribution from our recent acquisition of Hawaii Pacific Teleport continues to be a highlight. And our sales engine was able to secure $150 million in new signings this quarter. Given these strong results, we are reiterating our fiscal 24 guidance, which puts us on track to deliver our seventh consecutive year of double-digit profitable revenue growth. This strong performance is an early indicator of our path to reach $1 million in revenues by the end of fiscal 26. Now, I will turn over to Patrick to discuss consolidated results and guidance for fiscal 24. Over to you, Patrick.
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