ScreenPro Security Reports Profit In Q2
ScreenPro Security Reports Profit In Q2
2021-08-27 08:31 ET - News Release
Toronto, Ontario--(Newsfile Corp. - August 27, 2021) - ScreenPro Security Inc. (CSE: SCRN) ("ScreenPro" or the "Company") is pleased to report that it has filed on SEDAR its financial statements ("FS") and related management discussion and analysis ("MD&A") for the seven-month financial results ending June 30, 2021 ("Q2 2021"). All currency is in Canadian dollars unless otherwise stated.
Please refer to the filings in its entirety, which are available under ScreenPro profile at www.sedar.com.
Q2 2021 Financial Summary
The Company reported revenue of $5,497,441 and net earnings of $140,485 in Q2, 2020. The Company also significantly improved its cash balance, $963,124, compared to $32 in cash in Q2 2020.
Path to Profitability: The Company made strong progress throughout the second quarter accelerating its path to profitability by identifying revenue opportunities, including a rebalancing the staff and payroll, opening the testing office in Toronto and Vancouver, and consolidating its supply chain pipelines. This is reflected in the significantly improved margin in Q2 2021.
Fiscal highlights of Q2 and subsequent events:
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In the second quarter ScreenPro business model accelarated with the successful onboarding of film and television productions in Toronto and Vancouver and launched on the execution of its strategy on building out other business sectors.
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On June 23rd, the Company provided services to production companies in Toronto and Vancouver and completed over 19,000 tests in May.
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On June 24th, the Company announced that the GoStop notification software is being adopted by film and television productions in Vancouver.
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On July 7th, the announced that it has expanded its operations to Montreal with a new lab facility, an approved Level II laboratory facility certified by the Public Health Agency of Canada.
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On July 8th, the Company provided services to production companies in Toronto and Vancouver and completed over 18,500 tests in June.
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On July 9th, the Company announced launching of a concierge medical services ("Concierge") on July 12th offering home visit care starting in Vancouver to capitalize on the lucrative custom care management market. The Company has established its infrastructure with its COVID testing business, and leveraging it to expand its business for the future business and growth.
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On August 9th, the Company announced commencing a new COVID-19 testing contract in Montreal with approximately 20,000 tests on a big budget Hollywood feature film.
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On August 25th, the Company announced that ScreenPro joined the CSE Composite Index, under the Life Sciences sector.
Andrew Ryu, CEO of ScreenPro, stated, "We have built the base for an incredible life sciences and health care businesses, we are getting more stability in revenues, our product offerings are increasing, and the company had a profit after only two quarters, so going forward, I am feeling positive about the business model. As a company, we share a fundamental commitment to all of our shareholders to deliver value to all of them, for the future success of ScreenPro shareholders, our employees and our customers."
Q2 2021 Financial Review
* The consolidated financial statements were prepared in accordance with IFRS. The following is selected presentation of the Income Statement for the three months ending June 30, 2021:
All figures are in Canadian dollars unless otherwise noted:
| | 3 months
ended
30-June-2021 | 3 months
ended
30-June-2021 |
| Total revenues | $5,497,441 | $0.00 |
| Net Income/Loss | $140,485 | ($26,000) |
| Income per share - basic | $0.00 | ($0.001) |
| EBITDA | $203,927 | ($26,000) |
* Note: EBITDA ( non- IFRS measures) is calculated as Net Loss adjusted for 1. Income taxes, 2. Depreciation and amortization, and 3. Interest and accretion.
Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Specific items may only be relevant in certain periods. For a reconciliation of non-IFRS financial measures please refer to the Company's Management Discussion and Analysis for the six months ended June 30, 2021.
| | 3 months
ended
30-June-2021 | 3 months
ended
30-June-2021 | Dollar Change |
| Total Assets | $6,866,821 | $32 | $6,866,789 |
| Total Liabilities | $1,999,686 | $132,238 | $1,867,448 |
Notes:
*These audited year end and unaudited quarterly financial results are subject to customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See "Forward-Looking Statements" and "Financial Outlook".
Outlook
Despite a significant market slowdown due to the pandemic, the Company continued to improve its balance sheet in Q2. The Company remains focused on the expansion of its COVID-19 testing business in 2021, with the Company expecting to see growth in second half of 2021 with the different testing verticals and the new concierge medical services business offering home visit care starting in Vancouver that will capitalize on the lucrative custom care management market.
Unfortunately even with populations being vaccinated, and as the contagious Delta variant continues to circulate, there is clear and mounting evidence that people are contracting breakthrough COVID-19 infections. Testing coupled with contact tracing is a COVID-19 preventative action that will continue for years to come. Only 32.6% of the world population has received at least one dose of a COVID-19 vaccine, and 24.4% is fully vaccinated.
As the Company further integrates Concierge Medical Consultants Inc's business, the Company sees a significant upside as the pandemic shows signs that patients are moving to healthcare being administered at home.
Given the significant surge in the need for additional healthcare resources, establishing alternative healthcare options becomes critical. ScreenPro understands that non-acute healthcare can mitigate exposing patients and their families to COVID-19. The Company is exploring deploying a variety of audio and video technology powered by its battle-tested AI technology to expand telemedicine services.
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