Calian Technology Reports 4th Quarter Results: Company Achieves Profitability by Focusing on Costs.Business Editors KANATA, Ontario--(BUSINESS WIRE)--Nov. 21, 2001 Calian Technology Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CTY CTY - /sit'ee/ or /C-T-Y/ [MIT] The terminal physically associated with a computer's system console. The term is a contraction of "Console tty", that is, "Console TeleTYpe". .) today reported quarterly and annual results for the fiscal period ended September September: see month. 30, 2001. Net earnings for the quarter were $0.1 million on revenues of $29.8 million. These amounts relate to the Resourcing (Staffing/Outsourcing) and Systems Engineering businesses, which are the company's continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . In the third fiscal quarter ended June June: see month. 30, 2001, Calian disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its eServices business. In the fourth quarter the company achieved a $0.6 million improvement in the profitability of its continuing operations as compared to the third quarter. Much of this improvement came from reduced spending in the areas of General and Administration, Selling and Marketing, and Facilities. Earnings per share from continuing operations improved to $0.01 in the fourth quarter from a loss of $(0.05) in the third quarter. Larry O'Brien
Lawrence "Larry" Francis O'Brien, Jr. (July 7 1917 – September 28, 1990) was one of the United States Democratic Party's leading electoral strategists when, for more than two , President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "Calian's earnings before interest, taxes and amortization (EBITA EBITA Earnings Before Interest Taxes Amortization ) were $1.1 million in the fourth quarter as compared to $0.5 million in the third quarter of this year. We are pleased to see the results of our cost reductions beginning to show on the bottom line. We are completely focused on our core businesses of Systems Engineering and Staffing/Outsourcing. Calian has built cash for the third successive quarter, and we ended the fiscal year with $12.2 million of cash on the balance sheet, which is $1.6 million higher than a year ago. "During the quarter, we signed new contracts with a value of $40 million, testament to the excellent reputation we hold in the marketplace for our services. Our total order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $118 million provides a solid base from which to build. While there is still work to be done, we are confident that our renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. focus on the historically successful portions of our business will provide improved profitability in the future." Revenues in the fourth quarter of 2001 were 2% higher than in the third quarter and 3.4% higher than in the fourth quarter of the prior fiscal year when they were $28.8 million. This revenue growth was achieved in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite an economy that has been noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. slower than a year ago. During the fourth quarter of 2000, the Company adopted new rules in accounting for income taxes, which gave rise to a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. favourable impact to net earnings of $7.85 million. Including that benefit, fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net earnings per share were $0.82 and fully diluted earnings from continuing operations were $0.78 during the fourth quarter of fiscal year 2000. If the benefit of this one-time item were excluded, fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations would have been $0.06 and fully diluted net earnings per share would have been $0.03 during the fourth quarter of fiscal year 2000. As announced on October October: see month. 22, 2001, Calian is offering to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. for $5 million up to 2,040,816 of its outstanding common shares at prices between $2.45 and $2.85. This Offer is open until November November: see month. 30, 2001 unless modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. or extended before that time. About Calian: Calian Technology Ltd. (TSE:CTY) sells systems engineering and staffing/outsourcing services to industry and government.
CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(dollars in thousands except per share data)
Three months ended
September 30 Year ended
(Unaudited) September 30
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2001 2000 2001 2000
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Revenues $29,754 $28,778 $120,648 $114,294
Cost of revenues 24,851 22,711 99,219 91,112
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Gross profit 4,903 6,067 21,429 23,182
Selling and marketing 1,075 1,379 5,215 5,186
General and
administration 2,085 2,140 9,244 7,290
Facilities 646 868 2,774 2,588
Amortization of
capital assets 466 387 1,780 1,481
Prior years' investment
tax credits - (3,423) - (3,423)
Special charge (income) - (50) 331 (251)
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Earnings before
interest, taxes and
amortization of goodwill 631 4,766 2,085 10,311
Interest income, net 114 55 201 299
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Earnings before taxes and
amortization of goodwill 745 4,821 2,286 10,610
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Income taxes - current 119 1,420 203 1,506
Income taxes - future
(recovery) 471 (5,019) 2,165 (5,019)
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590 (3,599) 2,368 (3,513)
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Earnings (loss) before
amortization of goodwill 155 8,420 (82) 14,123
Amortization of goodwill 59 46 236 211
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Earnings (loss) from
continuing operations 96 8,374 (318) 13,912
Earnings (loss) from
discontinued operation
(net of income taxes) - 406 (3,035) (1,468)
Loss on disposal of
discontinued operation
(net of income taxes) - - (11,341) -
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NET EARNINGS (LOSS) 96 8,780 (14,694) 12,444
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Retained earnings,
beginning of period 9,701 15,711 24,491 12,047
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Retained earnings,
end of period $9,797 $24,491 $9,797 $24,491
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Earnings (loss) per share from continuing operations:
Basic $0.01 $0.86 $(0.03) $1.46
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Fully Diluted $0.01 $0.78 $(0.03) $1.33
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Net earnings (loss) per share:
Basic $0.01 $0.90 $(1.51) 1.30
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Fully Diluted $0.01 $0.82 $(1.51) 1.19
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Weighted average number of shares:
Basic 9,774,701 9,706,018 9,763,403 9,339,502
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Fully Diluted 10,498,616 10,745,250 10,638,765 10,379,801
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
September 30, September 30,
2001 2000
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $12,211 $10,576
Accounts receivable 18,394 23,121
Unbilled accounts receivable 3,865 4,853
Prepaid expenses and other 704 1,336
Note receivable 100 -
Future income taxes 2,292 3,276
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37,566 43,162
GOODWILL 3,482 11,686
CAPITAL ASSETS 5,067 9,182
INVESTMENT TAX CREDITS RECOVERABLE 2,176 2,243
FUTURE INCOME TAXES 5,906 3,724
NOTES RECEIVABLE 250 -
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$54,447 $69,997
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued liabilities $16,053 $11,586
Unearned contract revenue 10,148 14,947
Note payable - 334
Current portion of long-term debt 160 376
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26,361 27,243
LONG-TERM DEBT 345 515
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26,706 27,758
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SHAREHOLDERS' EQUITY
Share capital 17,944 17,748
Retained earnings 9,797 24,491
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27,741 42,239
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$54,447 $69,997
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CALIAN TECHNOLOGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Three months ended
September 30 Year Ended
(Unaudited) September 30
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2001 2000 2001 2000
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CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
Net earnings (loss) $96 $8,780 $(14,694) $12,444
Items not affecting cash:
Deferred lease
inducements (2) (19) (12) (28)
Amortization 525 733 2,790 2,464
Loss on disposal
of assets - - 10,947 -
Investment tax credits 66 (2,243) 66 (2,243)
Future income taxes 410 (5,581) (1,198) (5,581)
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1,095 1,670 (2,101) 7,056
Change in non-cash
working capital
Accounts receivable 1,268 (492) 4,269 (4,525)
Unbilled accounts
receivable (1,825) 1,347 988 (456)
Prepaid expenses
and other 215 154 383 643
Accounts payable and
accrued liabilities 430 (843) 4,467 (3,473)
Unearned contract
revenue (988) (3,706) (4,799) (1,029)
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195 (1,870) 3,207 (1,784)
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CASH FLOWS FROM (USED IN)
FINANCING ACTIVITIES
Repayment of debt (130) (63) (708) (1,565)
Issuance of common
shares, net of
repurchase - 147 196 780
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(130) 84 (512) (785)
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CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES
Acquisition of
capital assets (35) (1,273) (1,169) (4,660)
Proceeds on disposal
of capital assets - 10 9 10
Business acquisitions - - - (1,897)
Note receivable 100 - 100 -
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65 (1,263) (1,060) (6,547)
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NET CASH INFLOW (OUTFLOW) 130 (3,049) 1,635 (9,116)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 12,081 13,625 10,576 19,692
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $12,211 $10,576 $12,211 $10,576
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