United Protection Security Group Inc. - Q2-2012 - Results
(TSX - V: UZZ)
EDMONTON, Aug. 30, 2012 /CNW/ - F.V.Ramsoondar, President and Chief Executive Officer of United Protection Security Group Inc. (UPSG or the Company), (TSXV: UZZ) is pleased to announce that the Company has released its Q2- 2012 results.
UPSG PERFORMANCE Q2
| a) | Revenue Revenue was $11,400,518 for the quarter ended June 30, 2012 compared to $8,514,846 for the comparative quarter, an increase of $2,885,672 or 33.89%. Acquisitions in the current year have been a significant reason for the increase in revenue. The Company expects that its future operating results may be subject to quarterly and annual fluctuations resulting from a variety of factors, including market conditions, changes in customers and geographic distribution. In the Electronic Security division, revenues are primarily derived from the number of new installation and monitoring contracts. |
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| b) | Gross margin Gross margin was $2,388,657 (20.95%) for the quarter ended June 30, 2012, compared to $1,596,131 (18.75%) for the comparative quarter. In 2011, the Company outsourced some of its operations to a subcontractor and therefore accounted for the costs as cost of sales. This arrangement has ended in the current year, resulting in a decrease in cost of sales and an increase in overhead costs in the quarter compared to the three months ended June 30, 2011. |
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| c) | Selling, general and administrative expenses ("SG&A") SG&A totalled $1,606,621 for the current quarter, compared to $1,142,812 for the quarter ended June 30, 2011, an increase of $463,809 or 40.58%. The increase is attributed to the change in the subcontractor arrangement noted above, as well as increased overhead in support of the Company's expanding scope of operations. Management will continue to review SG&A for additional cost reduction opportunities. |
UPSG PERFORMANCE Q2 YEAR TO DATE
| a) | Revenue Revenue was $20,289,638 for the six months ended June 30, 2012 compared to $16,492,605 for the comparative period, an increase of $3,797,033 or 23.02%. Organic growth and acquisitions have been the primary reasons for the increase in revenue. The Company expects that its future operating results may be subject to quarterly and annual fluctuations resulting from a variety of factors, including market conditions, changes in customers and geographic distribution. In the Electronic Security division, revenues are primarily derived from the number of new installation and monitoring contracts. |
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| b) | Gross margin Gross margin was $4,006,637 (19.75%) for the six months ended June 30, 2012, compared to $2,876,362 (17.44%) for the comparative quarter. In 2011, the Company outsourced some of its operations to a subcontractor and therefore accounted for the costs as cost of sales. As discussed above, the end of this subcontractor relationship in the current year has contributed to increased gross margins. |
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| c) | Selling, general and administrative expenses ("SG&A") SG&A totalled $2,752,787 for the current period, compared to $2,420,205 for the six months ended June 30, 2011, an increase of $332,582 or 13.74%. The end of the subcontractor arrangement and additional overhead in support of our expanding scope of operations has been the primary reasons for the increase in SG&A. Management will continue to review SG&A for additional cost reduction opportunities. |
| Quarter ended June 30, | |||||
| 2012 | 2011 | ||||
| Net income | $ | 269,865 | $ | 242,770 | |
| Add: | Income taxes (recovery) | 157,221 | (476) | ||
| Interest and accretion | 130,559 | 71,411 | |||
| Depreciation and amortization | 224,391 | 148,995 | |||
| EBIITDA | 782,036 | 462,700 | |||
| Share-based compensation | - | 7,286 | |||
| EBIITDAS | $ | 782,036 | $ | 469,986 | |
| Six months ended June 30, | |||||
| 2012 | 2011 | ||||
| Net income | $ | 487,513 | $ | 20,088 | |
| Add: | Income taxes (recovery) | 210,800 | (24,876) | ||
| Interest and accretion | 195,970 | 155,388 | |||
| Depreciation and amortization | 359,567 | 292,479 | |||
| EBIITDA | 1,253,850 | 443,079 | |||
| Share-based compensation | - | 29,745 | |||
| EBIITDAS | $ | 1,253,850 | $ | 472,824 | |
| (1) EBIITDA = Earnings before interest, impairment, taxes, depreciation and amortization |
| (2) EBIITDAS = Earnings before interest, impairment, taxes, depreciation and amortization and share-base payments. |
REVENUE BY PROVINCE
| Quarter ended June 30, | ||||
| 2012 | 2011 | |||
| Revenue | ||||
| Alberta | 8,929,669 | 7,290,062 | ||
| Ontario (2 months) | 1,177,919 | - | ||
| British Columbia | 1,060,314 | 1,166,487 | ||
| Other | 232,616 | 58,297 | ||
| 11,400,518 | 8,514,846 | |||
Stock Awareness Activities
To find out more about United Protection Security Group Inc. (TSXV: UZZ), 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.
SOURCE: United Protection Security Group Inc.
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