Annual Revenue Grows 26%, including Fourth-Quarter Increase of 35%

(All amounts in this release are in Canadian Dollars)

OTTAWA, Tuesday, Nov. 24, 2020 — Calian Group Ltd. (TSX:CGY), deliverer of trusted solutions across advanced technologies, health, learning & information technology segments, today released its annual results for the year ended September 30, 2020.

Calian Group Ltd. (the “Company”) reported revenues for the quarter of $123 million, representing a 35% increase from the $90.9 million reported in the same quarter of the previous year. For the year ended September 30, 2020, the Company reported revenues of $432 million, a 26% increase from the $343 million in the prior year.

Fourth quarter and full year 2020 highlights:

• Record quarterly revenue for the ninth consecutive quarter
• Quarterly revenue of $123 million, an increase of 35% from the same quarter of the previous year
• Annual revenue of $432 million, an increase of 26% from the previous year
• Adjusted EBITDA(1) of 9.2 million for the fourth quarter, an increase of 13% from the previous year
• Adjusted EBITDA(1) of $36.8 for the fiscal year 2020, an increase of 36%
• 76th consecutive profitable quarter
• New contract signings of $111 million in fourth quarter
• Dividend of $0.28 per share

“I am pleased to report Calian’s record year on multiple fronts. Revenue for the year was an all-time high for the Company at $432M. Organic growth was strong at 21% in the twelve-month period, led by our Health and Advanced Technologies segments. Our profitable growth objective was also evident as we grew EBITDA by 36% thanks to increased volume and scaling our business efficiently,” said Kevin Ford, President and CEO. “We completed four acquisitions in 2020, three of them in new market verticals in which Calian did not previously participate. M&A has played an important role in all four of our segments by bringing in new customers and new technologies aligned to our growth strategy.”

Adjusted EBITDA⁽¹⁾ for the fourth quarter was $9.2 million, an increase of 14% from $8.1 million in the same quarter of the previous year. For the year ended September 30, 2020, Adjusted EBITDA⁽¹⁾ was $36.8 million, a 36% increase compared to the $27.1 million in the same period of the previous year.

Adjusted net profit,⁽¹⁾ which excludes non-cash items related to recent acquisitions, was $5.6 million for the quarter; this compares to $5.7 million in the same period of the previous year. For the year ended September 30, 2020, Adjusted net profit ⁽¹⁾ was $23.5 million, which increased by 24% from the $19.0 million in the same period of the previous year.

Net profit for the fourth quarter was $6.9 million, and $20.4 million the year ended September 30, 2020, representing an increase of 2% from the $20.0 million in the same period of the previous year.

“Our ninth consecutive record revenue quarter capped a year in which we recorded our highest ever Revenue, EBITDA and Net Income,” stated Patrick Houston, CFO. “Our focus on profitable growth was seen with 26% revenue growth and EBITDA growth of 36%. These results were accomplished in a rapidly changing environment due to COVID-19 which necessitated our team of dedicated professionals in each of our segments to adapt quickly and continue to deliver essential products and services.”

“COVID-19 has resulted in a rapidly changing business environment, but our teams continued to adapt and find news ways to deliver our services which were deemed essential in all of our segments,” said Kevin Ford. “I would like to thank all frontline health and essential service workers for their dedication and courage during this very challenging, ongoing public health crisis. Our own dedicated staff at Calian have been out there delivering essential services alongside other frontline health workers, Canadian Armed Forces members and many other service workers. From all of us at Calian, we offer our deepest appreciation for your service.”

“I would like to also officially welcome the Tallysman team to Calian, an acquisition we completed in the last month of the quarter. Offering the most extensive range of Global Navigation Satellite System, Iridium and Globalstar antennas, Tallysman excels at supporting the requirements of any project, anywhere in the world. We look forward to their continued innovation as a global leader and are excited to have them on the Calian team” stated Ford.

“Looking forward, our initial guidance demonstrates our confidence in Calian maintaining a growth profile in this new fiscal year. I believe our diversified segments with a mix of domestic and global customers positions us well to navigate through the challenges created by COVID while continuing to execute our growth strategy”, continued Ford.

(1) Caution regarding non-GAAP measures:

This press release is based on reported earnings in accordance with IFRS. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, adjusted net profit and adjusted net profit per share. These non-GAAP measures do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.