SSC Security Services Corp. Reports Strong Third Quarter Results with Improved Margins, Higher Adjusted EBITDA, and Continued Share Buybacks

REGINA, SK, Aug. 19, 2025 /CNW/ - SSC Security Services Corp. ("SSC" or the "Company") (TSXV: SECU) (OTCQX: SECUF), a national provider of cyber, physical and electronic security services to commercial, industrial and public sector clients across Canada, is pleased to release its results for the third quarter ended June 30, 2025. All figures are presented in Canadian dollars. 

"Our third quarter results came in as expected. We continue to see improved profitability from stronger margins as a result of our careful expense management. Gross margin has continued to strengthen, and our base business of recurring revenue continues to grow profitably. We like it when temporary contracts come in the door and they add nicely to our top line picture, however, more important is strong ongoing operational management and gross margin growth within our baseline recurring monthly revenue. As we continue to grow, we see that the size and scale of our operations nicely positions us for the temporary opportunities as they arise," said Chairman and CEO Doug Emsley.

"We continue to buy back our shares and take a disciplined approach to acquisitions. Our objective is always to protect our cash and be opportunistic in our efforts to grow the Company. We continue to be well capitalised and debt free. One important point that often goes unmentioned is that, over the past several years, we've returned $55.4 million dollars to shareholders through share buybacks and dividends while consistently operating a profitable business. It's a track record we're extremely proud of," said Emsley.

Key Highlights for Q3 2025:

• Continued Margin Improvement - Gross profit for the quarter ended June 30, 2025 was $5.3 million (gross margin of 17.5%), up from $4.7 million (15.9%) during the same quarter last year.  The nine-month year-to-date gross profit is $14.6 million (16.7%), up from $14.3 million (15.8%) during the same nine-month period last year.
  
  
• Revenue Growth - Revenues for the quarter ended June 30, 2025 were $30.2 million compared with $29.7 million during the same three-month period last year, an increase of $0.5 million or 1.7%. 
  
  
• Improved Adjusted EBITDA - Adjusted EBITDA for the quarter was $1.4 million ($0.08 per share), up from $1.3 million ($0.07 per share) during the same quarter last year.  This represents a 14% improvement in Q3 Adjusted EBITDA over the prior year.  
  
  
• NCIB Share Buybacks - During the quarter we bought back 140,900 shares of the Company at an average price of $2.42 per share (cancelling all 140,900 shares).
  
  
• 36^th Consecutive Quarterly Dividend - During the quarter we paid $0.03 per share in dividends to shareholders.
  
  
• We finished the quarter ended June 30, 2025 with: 
  • Cash and cash equivalents of $9.6 million equal to $0.53 per share; 
  • Working capital of $25.4 million;
  • Total shareholders' equity of $61.8 million; and 
  • No debt.

Key Performance Indicators for the comparable periods are summarized below:  

Key Performance Indicators	Quarter ended June 30		Nine months ended June 30
(All amounts are in thousands of Canadian dollars unless otherwise indicated)	2025	2024	2025	2024
Revenue	30,177	29,726	87,048	91,010
Cost of sales	24,893	25,012	72,495	76,668
Gross margin	5,284	4,713	14,553	14,343
Gross margin (%)	17.5 %	15.9 %	16.7 %	15.8 %
Comprehensive net income (loss)	58	26	(57)	742
Comprehensive net income (loss) per share - basic	$0.00	$0.00	$(0.00)	$0.04
Adjusted net income	779	715	1,778	1,510
Adjusted net income per share - basic	$0.04	$0.04	$0.10	$0.08
Adjusted EBITDA	1,445	1,265	3,650	3,766
Adjusted EBITDA per share - basic	$0.08	$0.07	$0.20	$0.20

REVENUE, GROSS PROFIT & NET INCOME 

Revenues for the quarter ended June 30, 2025, were $30.2 million compared with $29.7 million during the quarter ended June 30, 2024, an increase of $0.5 million (revenue increase of 1.7%).  The increase in revenues over the same period last year is attributed to internally generated organic growth.

Gross profit for the quarter ended June 30, 2025 was $5.3 million (17.5% of revenue) compared to $4.7 million (15.9% of revenue) during the same quarter last year. We continue to see steady improvement in our gross profit margin percentages.  These improvements are a result of the continued focus on operating efficiencies and cost reduction initiatives. 

Comprehensive net income for the quarter ended June 30, 2025 was $0.0 million (profit of $0.00 per share), unchanged from net income the same quarter last year of $0.0 million (profit of $0.00 per share).

ADJUSTED NET INCOME & ADJUSTED EBITDA

Adjusted EBITDA is the primary KPI used by the Company to measure the financial performance of the Company. Adjusted EBITDA for the quarter ended June 30, 2025, was $1.4 million ($0.08 per share), compared with the adjusted EBITDA of $1.3 million ($0.07 per share) for the prior year third quarter ended June 30, 2024 (this represents a 14.3% increase in Adjusted EBITDA per share).  

Adjusted net income for the quarter ended June 30, 2025 was $0.8 million (profit of $0.04 per share), compared to an adjusted net income in the same quarter last year of $0.7 million (profit of $0.04 per share).

A reconciliation of earnings to adjusted net income and Adjusted EBITDA is provided in the Non-IFRS section of the MD&A published concurrently with this press release.^*

BALANCE SHEET 

Key balance sheet items are summarized below: 

Statements of Financial Position	As at	As at
	June 30, 2025	June 30, 2024
Cash	9,634	12,367
Accounts receivable	23,222	23,176
Legacy business assets	6,075	6,719
Working capital	25,354	26,523
Long-term debt	0	0
Total assets	78,551	81,181
Total liabilities	16,746	15,682
Total shareholders' equity	61,805	65,499
Common shares outstanding	18,302	18,816

UPDATE ON NORMAL COURSE ISSUER BID 

During the quarter ended June 30, 2025, we bought back 140,900 shares at an average price of $2.42 per share (same quarter last year: 116,800 shares at an average price of $2.59 per share). All shares bought back under the normal course issuer bid have been cancelled.

We continue to believe that our shares have been trading in a price range which does not adequately reflect their value and that the purchase of shares under the NCIB enhances remaining shareholder value. Since 2017, the Company has cancelled nearly 48% of its outstanding shares through buybacks.

OUTLOOK 

We are seeing continued growth in demand for the kind of innovative and cost-effective security services and solutions that we offer at SSC. Our ability to combine physical and electronic security services in a fully integrated way is the future of our industry.  Additional growth may also come via acquisition, as we look to acquire other profitable companies in the Canadian security industry. Acquisitions may help us reach our growth targets more quickly, but we will not rush to complete new deals, and we will maintain our financial conservatism throughout.  

Most of our remaining legacy assets are expected to convert to cash over the next year. Our objective is to make these resources available for the expansion of our security business.

We also plan to continue to distribute capital to shareholders via our dividend, operate with minimal to no debt while maintaining solid liquidity, focusing on maintaining strong margins, and maximizing our Adjusted EBITDA per share. 

ABOUT SSC 

SSC Security Services Corp. is a national provider of cyber, physical and electronic security services to corporate and public sector clients across Canada. For more information, please visit www.securityservicescorp.ca

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 

Forward Looking Statements  

This release includes forward-looking statements regarding SSC and its business. Such statements are based on the current expectations and views of future events of SSC's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting SSC, including risks regarding the security industry, the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of SSC. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and SSC undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. 

^*Non-IFRS Measures 

SSC measures key performance metrics established by management as being key indicators of the Company's strength, using certain non-IFRS performance measures, including: 

• EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Adjusted Net Income, Adjusted Net Income per share. 

The Company uses these non-IFRS measures for its own internal purposes. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and these measures may be calculated differently by other companies. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company provides these non-IFRS measures to enable investors and analysts to understand the underlying operating and financial performance of the Company in the same way as it is frequently evaluated by Management. Management will periodically assess these non-IFRS measures and the components thereof to ensure their continued use is beneficial to the evaluation of the underlying operating and financial performance of the Company. For more detailed information, please refer to the Company's Management Discussion and Analysis dated August 19, 2025 available on the Company's website at www.securityservicescorp.ca and on SEDAR+ at www.sedarplus.ca.  

SOURCE SSC Security Services Corp.

For further information, please contact: Doug Emsley, President & CEO, [phone], [email protected]; Brett Leonard, Chief Financial Officer, [phone], [email protected]