Q1 Results 2010CriticalControl Announces 2010 First Quarter FinancialResults
09:03 EDT Tuesday, May 04, 2010
CALGARY, ALBERTA--(Marketwire - May 4, 2010) - CriticalControl SolutionsCorp., (TSX:CCZ) today reported its financial results for the three month periodended March 31, 2010.
Highlights for the quarter included (Q1 2010 compared to Q1 2009):
Revenue increased by 102% to $13 Million for the three months ended March 31,2010 compared to $6.5 Million for the same period in 2009. Revenue from theCorporation's Service Bureau Operations increased by 51% despite a drop of $1.3Million in the Corporation's historic Government business based in Alberta dueto the Corporation's aggressive diversification strategy which included theacquisition of BPO Management Services, Ltd. ("BPOMS"), completed on July 31,2009, and Southport Data Systems Inc. ("Southport"), completed on October 1,2009. Revenue associated with the Corporation's Energy Services businessincreased by 158% as a result of the Corporation's expansion into the UnitedStates through the acquisition of GAS Analytical Service, Inc. ("GAS") completedon November 1, 2009.
Income before tax increased by 8% to
.71 Million from
.66 Million whiletaxes from the Corporation's profitable US operations resulted in net incomedeclining to
.51 from
.66 Million.
The Corporation's results for the quarter included amortization costs of
.68 Million (
.40 Million in Q1, 2009) interest of
.12 Million (
.06Million in Q1, 2009) and non-recurring charges resulting from selling, generaland administrative expense reductions and integration of BPOMS' business of
.44 Million, offset by a onetime positive
.52 Million valuation adjustmentof inventory related to the assets of GAS.
"Our growth in revenue is a direct result of our strategy going into theeconomic downturn in 2009, resulting in our aggressive but focused expansionoutside of Alberta into the rest of Canada and the North Eastern United States,"said Alykhan Mamdani, President and CEO of CriticalControl. "As we continue tointegrate our 2009 acquisitions and refine our business model, we anticipateimproving our margins and reducing our administrative costs to improveprofitability."
Reference is made to the Corporation's 2010 First Quarter FinancialStatements and Management Discussion and Analysis, full copies of which areavailable on www.sedar.com and the Corporation's website,www.criticalcontrol.com.
About CriticalControl:
CriticalControl enables its clients to increase operational performancethrough the better control of critical business information. Through the balanceof practicality, innovation and technology, we empower our clients witheverything from strategies and tools, to outsourced solutions to manageinformation, wherever and in whatever form that information exists. For moreinformation please visit www.criticalcontrol.com.
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