United Protection Security Group Inc. - Q3 - RESULTS
November 21 2011 - 5:00AM
PR Newswire (Canada)
EDMONTON, Nov. 21, 2011 /CNW/ - F.V.Ramsoondar, Chief Executive
Officer of United Protection Security Group Inc. (UPSG or the
Company), is pleased to announce that the Company has released its
Q3- 2011 results. F.V.Ramsoondar states: "The quarter ended
September 30, 2011 continued to reflect the results of the
restructuring and cost management that was initiated earlier in the
year. My focus will be to continue to build profitability back into
the Company, which will enable my team to deliver on our growth
strategies. Reconciliation of EBIITDA and 3 months 3 months 3
months EBIITDAS Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Net
Income (loss) for the $230,374 $247,241 $(208,900) periods Add:
Income taxes (63) (476) (24,400) Finance costs 59,837 71,411 83,977
Depreciation, amortization 141,961 148,995 143,484 and impairment
EBIITDA (1) $432,109 $467,171 $(5,839) Add: Share-based payments
2,049 2,815 8,677 EBIITDAS (2) $434,158 $469,986 $2,838 ((1)
)EBIITDA = Earnings before interest, impairment, taxes,
depreciation and amortization ((2) )EBIITDAS = Earnings before
interest, impairment, taxes, depreciation and amortization and
share-base payments. Pursuant to a press release dated October 24,
2011, the Company is in the process of closing a new receivable
financing facility of $4.5 USD million dollars, which does not
impose any financial covenants. The Company's current receivable
financing facility is capped at $3 million CAD and imposes a
financial covenant that is currently in breach. Mr. Ramsoondar has
executed a personal guarantee for the new facility and will be
issued 8 million common shares of the Company at $0.05 per share as
compensation. This $400,000 non-cash cost will be reflected in the
Company's Q4-2011 results. The new facility will enable the Company
to finance its organic growth plans effectively. Revenue Revenue
was $8,758,376 for the third quarter 2011 compared to $8,496,968
for the comparative period, an increase of $261,408 or
3.08%. The increase in revenue is primarily related to sales
and marketing efforts the Company deployed over the last two
financial quarters. Gross margin Gross margin was $1,635,321
(18.67%) for the third quarter 2011 compared to $1,463,313
(17.22%) for the comparative period. The increase in gross
margin is attributed to controlling overtime costs and managing
other operational costs effectively. Operating costs Operating
costs remain consistent at $7,123,055 for the third quarter 2011
compared to $7,033,655 for the quarter 2010. Selling and
administrative expenses ("S&A") S&A totalled $1,233,212 for
the third quarter 2011 compared to third quarter 2010 at
$1,407,511, reflecting a decrease of $174,299 or 12.38%, the direct
impact of the management cost-restructuring plan implemented in May
2011. Stock Awareness Activities To find out more about United
Protection Security Group Inc. , visit our website at
www.unitedprotection.com. To join the 'request for
information', go to the web page www.unitedprotection.com and click
the tab 'request information' and follow the prompts. Statements in
this press release other than purely historical information,
including statements relating to the Company's future plans and
objectives or expected results, are forward-looking statements.
Forward-looking statements are based on numerous assumptions and
are subject to all of the risks and uncertainties inherent in the
Company's business, including risks related to business development
and retention, and risks related to the current economic and credit
conditions. As a result, actual results may vary materially from
those described in the forward-looking statements. Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
United Protection Security Group Inc. CONTACT: For
additional investor and media relations inquiries contact:Fredy
Ramsoondar CEO and DirectorEmail:
fredy.ramsoondar@unitedprotection.comTel: 780-465-8101
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