record earnings!! still growingUnited Protection Security Group Inc. (TSX-V:UZZ.V) Announces Record Earnings for the year ended December 31, 2005.
EDMONTON, May 3, 2006 (Canada NewsWire via COMTEX News Network) --
United Protection Security Group Inc., a Canadian based company, trading on the Toronto Stock Exchange - Venture, under the symbol (TSX-V: UZZ), is pleased to announce its audited financial results for the year ended December 31, 2005.
Highlights:
Sales for the year ended December 31, 2005 rose to $13,266,855 from $9,863,223 for the year ended December 31, 2004, an increase of $3,403,632 or 34.51%.
Earnings before interest, income taxes, depreciation and amortization totaled $824,693 or 6.22%, compared to a loss of $(396,708) for the year ended December 31, 2004, an increase of $1,221,401.
Net income for the year ended December 31, 2005 totaled $573,201 ($0.012 basic and diluted per share), compared with a loss for the year ended December 31 2004 of $(553,852) (($0.014) basic and diluted per share), an increase of $1,127,053.
Working capital amounted to $493,747 as at December 31, 2005, compared with a deficiency of $(162,986) as at December 31, 2004, an increase of $656,733. This improvement is attributed to an increase in accounts receivable and a decrease in bank indebtedness.
Shareholders equity totaled $1,477,397 as at December 31, 2005, compared with $204,196 as at December 31, 2004, an increase of $1,273,201.This increase is primarily due to the net income of $573,201 generated during the year and the issuance of Series "I" preferred shares for a proceed of $700,000.
<< Selected financial information: Year ended Year ended Dec 31, 2005 Dec 31, 2004 Variance % ------------ ------------ ------------ --------- Sales $13,266,855 $ 9,863,223 $ 3,403,632 34.51 ------------ ------------ ------------ --------- ------------ ------------ ------------ --------- Gross profit 3,333,965 1,956,341 1,377,624 70.42 ------------ ------------ ------------ --------- ------------ ------------ ------------ --------- Net income (loss) for the year $ 573,201 $ (553,852) $ 1,127,053 203.49 ------------ ------------ ------------ --------- ------------ ------------ ------------ --------- ------------------------------------------------------------------------- Weighted average earnings (loss) per share $ 0.012 $ (0.014) $ 0.026 185.71 ------------------------------------------------------------------------- EBITDA $ 824,693 $ (396,708) $ 1,227,401 309.40 ------------------------------------------------------------------------- EBITDA per share $ 0.018 $ (0.010) $ 0.028 2.80 ------------------------------------------------------------------------- Total assets $ 3,721,579 $ 2,396,314 $ 1,316,265 54.93 ------------------------------------------------------------------------- Shareholders equity $ 1,477,397 $ 204,196 $ 1,273,201 623.52 ------------------------------------------------------------------------- Revenue Increase
Sales for the year ended December 31, 2005 rose to $13,266,855 from $9,863,223 for the year ended December 31, 2004, an increase of $3,403,632 or 34.51%. The overall increase in sales is directly attributable to the Physical Security Division.
Gross Profit
Gross profit amounted to $3,333,965 for the year ended December 31, 2005, compared with $1,956,341 for the year ended December 31, 2004, an increase of $1,377,624 or 70.42%. The gross margin as a percentage of sales increased from 19.83% from December 31, 2004 to 25.13% for December 31, 2005. The improvement in gross profit is attributed to the increase in sales generated by new contracts and a minimum acceptable charge out rate.
Operating Expenses
Operating expenses totaled $2,511,772 for the year ended December 31, 2005, compared with $2,363,049 for the year ended December 31, 2004. This increase is attributed to the administrative structure put in place to efficiently support the 34.51% increase in sales and the projected continuous sales growth.
Income before income taxes
Income before income taxes rose from a loss of $(539,822) for the year ended December 31, 2004 to $606,029 for the year ended December 31, 2005, an increase of $1,145,851.
EBITDA
Earnings before interest, income taxes, depreciation and amortization totaled $824,693 or 6.22%, compared to a loss of $(396,708) for the year ended December 31, 2004, an increase of $1,221,401.
Net income
Net income for the year ended December 31, 2005 totaled $573,201 ($0.012 basic and diluted per share), compared with a loss for the year ended December 31 2004 of $(553,852) (($0.014) basic and diluted per share), an increase of $1,127,053.
CASH FLOWS
Operating activities
Cash flows from operating activities generated $431,108 for the year ended December 31, 2005 compared to cash used of $699,791 for the year ended December 31, 2004, an increase of $1,130,899. This increase is directly attributed to the increase in EBITDA.
Investment Activities
Cash used in investment activities amounted to $778,019 for the year ended December 31, 2005, compared with $48,573 for the year ended December 31, 2004. During the year ended December 31, 2005, $206,519 was used to acquire property and equipment, compared with $48,573 for the year ended December 31, 2004. The Corporation used $574,000 to purchase intangible assets.
Financing Activities
Cash generated from financing activities amounted to $614,405 for the year ended December 31, 2005, compared with $288,085 for the year ended December 31, 2004, an increase of $326,320. The increase is attributed to the issuance on 7,000,000 Series "I" preferred at $0.10 per share.
Working Capital
Working capital amounted to $493,747 as at December 31, 2005, compared with a deficiency of $(162,986) as at December 31, 2004, an increase of $656,733. This improvement is attributed to an increase in accounts receivable and a decrease in bank indebtedness.
Outlook
The current environment remains favourable for security services providers in Canada. The fragmentation of the industry together with geopolitical uncertainty offers interesting growth opportunities. In this context, the Company continues to seek opportunities to increase its revenues, gross margins and net profit while enlarging its scope of operations. The Company remains focused on its key segments of activities with a view to consolidate a leadership position in the security service industry.
Over the last 1 year, the Company has moved into the ranks of one of the most important security companies in Western Canada. With a strong foundation and a dedicated professional management team, the Company is moving forward into the next level in its development strategy.
ATTESTATION
We have complied with the requirements of Regulation 52-109 respecting certification of disclosure in issuer's annual and interim filing issued by the Canadian Securities Authorities and have filed form 52-109FT2 Certification of interim filing during transition period to the appropriate regulatory authorities in Canada. There certifications can be accessed on the SEDAR website (www.sedar.com).
Stock Awareness Activities
To join the 'request for information', 'email alert' data base, go to the web page www.unitedprotection.com and click the tab 'request information' and follow the prompts.
About United Protection Security Group Inc.
United Protection Security Group Inc. is an established security protection company; focused on high impact, high visibility, and high risk security situations, coupled with one of the broadest ranges of traditional private security services in the industry.
Delivering 21st Century Solutions to centuries old problems through a network of 'Elite Private Protection Professionals'.
Pro - Active and Progressive Management has moved the company into the ranks of, one of, the most dynamic security companies in Western Canada. With a strong foundation and a dedicated professional management team, we are moving forward into the next level in our development strategy.
Physical Security
The Company offers physical security to address a wide range of security needs: building security in offices, industrial parks, malls, oil projects, investigations services, risk analysis and training, maintaining order during labour conflicts and lockouts, as well as tactical and special services.
Electronic Security
The Company offers its customers a wide range of electronic security products and services, including advanced access control card systems, close circuit cameras, alarm and distance surveillance products, 24 hour video monitoring, as well as surveillance and protection products. The Company is the only known provider in Canada to offer secured digital video monitoring services using internet protocols.
To find out more about United Protection Security Group Inc. (TSX-V: UZZ), visit our website at www.unitedprotection.com
The Toronto Venture Exchange (TSX.V) has neither approved nor disapproved the information contained herein. Dated May 3, 2006 On behalf of the Board of Directors (signed) ---------------------------------- Sig Jorstad President United Protection Security Group Inc. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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 inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward- looking statements. >> %SEDAR: 00010325E
SOURCE: United Protection Security Group Inc.