United Protection Security Group Inc. - Q2 RESULTS
31 August 2010 - 8:00PM
PR Newswire (Canada)
EDMONTON, Aug. 31 /CNW/ -- EDMONTON, Aug. 31 /CNW/ - S.Jorstad,
Chairman and Chief Executive Officer of United Protection Security
Group Inc. (UPSG or the Company), (TSX-V:UZZ) announces that the
Company has released its interim financial and operating results
for the second quarter ended June 30, 2010. S.Jorstad stated, "As
we expected, we continue to regain profitability during Q2
following the unusual weakness of the 2009 results. Revitalizing
the British Columbia business unit is our most important priority
and we made solid progress executing a business improvement plan
that includes improving pricing, capturing significant cost
improvements and developing a marketing strategy to increase market
share. Meanwhile, we are reaping the rewards from having a
diversified customer portfolio as our electronic security division
in Q2 delivered the same profit level as Q1-2010. Results this year
are from organic growth only as no revenue stream have been
realized from the acquisition of NoGo NoTow franchising
relationship as it is still in the pilot project marketing phase.
Several key relationships have been established and I expect
promising results in the future from this acquisition." S.Jorstad
further stated, "Negotiations that occurred in Q2 resulted in the
news release of July 12, 2010 with respect to the $5,000,000 equity
line facility arranged through Dutchess Capital Management. As
announced, this facility will give the Company access to capital
for strategic expansion initiatives as well as expansion of
existing business segments. Management believes that this is a
significant event towards the overall objective of strengthening
the Company's long term financial position and aggressive growth
strategies." F.Ramsoondar, Chief Financial Officer reports on Q2-
2010 Financial Summary: Revenue for the quarter amounted to
$8,537,267, compared to $7,099,273 for the same quarter last year,
an increase of $1,437,994 or 20.26%. Revenue for the six month
period ended June 30, 2010 amounted to $17,350,443 compared to
$14,860,396 for the same period last year, an increase of
$2,490,047 or 16.76%. Gross profit for the quarter amounted to
$1,945,960 (22.79% of revenue), compared with $1,201,732 (16.93% of
revenue) for the same period last year, an increase of $744,228.
Gross profit for the six month period ended June 30, 2010 amounted
to $4,006,853 compared to $2,887,175 for the same period last year,
an increase of $1,119,678 or 38.78%. Operating expenses totalled
$1,715,709 for the period, compared with $1,613,889 for the same
period last year, an increase of $101,820 or 6.31%. Operating
expenses for the six month period ended June 30, 2010 amounted to
$3,450,565 compared with $3,531,667 for the same period last year,
a decrease of $81,102 or 2.35%. EBIITDAS totalled $400,591 (4.69%
of revenue) for the period, compared to negative EBIITDAS of
$(246,358) for the same period last year, an increase of $646,949.
EBIITDAS for the six month period ended June 30, 2010 amounted to
$888,618 compared to $67,468 for the same period last year, an
increase of $821,150 or 1,217.10%. Net income for the period
totalled $198,251, ($0.003 basic and diluted earnings per share);
compared with net loss of $(376,980) ($(0.006) basic and diluted
loss per share) for the same period last year, an increase of
$575,231. Net income for the six month period ended June 30, 2010
totalled $524,288 ($0.01 basic and diluted earnings per share)
compared to net loss of $(650,612) ($(0.01) basic and diluted loss
per share) for the same period last year, an increase of
$1,174,900. Reconciliation of EBIITDA and EBIITDAS to Historical
Results (CGAAP) Statement of Three Three Six Six income months
months months months ended ended ended ended June 30, 2010 June 30,
2009 June 30, 2010 June 30, 2009 Net income (loss) for the period $
198,251 $(376,980) $ 524,288 $(650,612) Add: Income taxes 32,000
(35,177) 32,000 6,120 Interest 44,744 84,209 77,326 164,602
Amortization and impairment 124,216 81,590 251,825 547,358
------------------------------------------------------- EBIITDA
399,211 (246,358) 885,439 67,468
------------------------------------------------------- Add:
Stock-based compensation 1,380 - 3,179 -
------------------------------------------------------- EBIITDAS $
400,591 $(246,358) $ 888,618 $ 67,468
-------------------------------------------------------
------------------------------------------------------- In addition
to using financial measures prescribed by CGAAP, certain non-CGAAP
measures are also used by the Company. These non-GAAP measures are
EBIITDA and EBIITDAS. References in this press release to EBIITDA
are to net income before interest, impairment, taxes, depreciation
and amortization. References in this press release to EBIITDAS are
to net income before interest, impairment, taxes, depreciation,
amortization and stock-based compensation. Stock Awareness
Activities -------------------------- To find out more about United
Protection Security Group Inc. (TSX-V: 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. You may also email Investor
Relations at: iruzz@unitedprotection.com. 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. The TSX Venture Exchange has
neither approved nor disapproved the information contained herein.
%SEDAR: 00010325E For additional investor and media relations
inquiries contact: Fredy Ramsoondar, CFO, Executive Vice President,
and Director, Email: fredy.ramsoondar@unitedprotection.com, Tel:
780-465-8101
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