United Protection Security Group Inc. - Q3 - RESULTS

EDMONTON, Nov. 21, 2011 /CNW/ - F.V.Ramsoondar, Chief Executive Officer of United Protection Security Group Inc. (UPSG or the Company), (TSX-V: UZZ) 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 EBIITDAS 3 months
Sep. 30, 2011
3 months
Jun. 30, 2011
3 months
Mar. 31, 2011
       
Net Income (loss) for the periods $230,374 $247,241 $(208,900)
Add:      
  Income taxes (63) (476) (24,400)
  Finance costs 59,837 71,411 83,977
  Depreciation, amortization and impairment 141,961 148,995 143,484
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. (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.

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.

For further information:

For additional investor and media relations inquiries contact:

Fredy Ramsoondar CEO and Director
Email:  fredy.ramsoondar@unitedprotection.com
Tel: 780-465-8101

Organization Profile

United Protection Security Group Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890