- reports 31% increase in net income -
CALGARY, May 5 /CNW/- CriticalControl Solutions Corp., (TSX:CCZ) today reportedits financial results for the three month period ended March 31,2009.
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Highlights for the quarter included (Q1 2009 compared to Q1 2008):
- 8% increase in total revenue to $6.5 million from $6.0 million;
- gross margin as a percentage of revenue of 51% compared to 52%;
- 31% increase in net income to $0.66 million from $0.50 million;
- corporation consolidated its common shares on a one new for three old
share basis;
- listed its shares on the Toronto Stock Exchange on a post
consolidated basis and simultaneously delisted its shares from the
TSX Venture Exchange;
- completed the repayment of the Corporation's bank debt of $850 in the
quarter.
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"Reduced transactional revenue in our registration business due to thecurrent economic climate was offset with organic growth in the remainder of itsbusiness divisions during the quarter," said Alykhan Mamdani, President and CEO of CriticalControl. "Despiteexpectations of continued lower levels of economic activity in the Corporation'sclient base, management expects to maintain the profitability it achieved in2008, with further growth expected as the economics of the Corporation's clientbase improves."
Reference is made to the Corporation's 2009 First Quarter FinancialStatements and Management Discussion and Analysis, full copies of which areavailable on www.sedar.com and theCorporation's website,www.criticalcontrol.com.
First Quarter 2009 Financial Summary
Total revenue was $6.5 million for the quarter endedMarch 31, 2009 compared with $6.0 million for the same period in 2008, an increase of$0.5 million or 8%. Revenue increases were attributableto organic growth and from the acquisitions of ScadaNet in July, 2008 and theassets of Western Corrosion Technologies in October, 2008.
Net income was $0.66 million for the quarter ended March 31, 2009 compared with $0.50 million for the same period in 2008, an increase of$0.16 million. Profitability increased primarily due tothe growth experienced in the Corporation's energy business.
Cash flow from operating activities was $1.02 million for the quarter ended March 31, 2009 compared with $0.836 million for thesame period in 2008, an increase of $0.2 million or24%. The increase was attributable to improvements in income generated from boththe government and energy sectors.
The Corporation's working capital improved to $3.03 million for the three months ended March 31, 2009, compared with $1.8 million for thesame period in 2008, an increase of 69%.
Outlook:
This Outlook and Guidance contains forward-looking statements which theCorporation does not intend, and does not assume any obligation, to update,except as required by law. The forward looking information and statementsinclude:
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- The current economic and financial crisis and its effect on the
Corporation's client base's business;
- The price of natural gas and its effect on capital spending and
operating budgets of the Corporation's client base;
- The economic environment and its effect on the Corporation's
government clients' expenditure plans;
- The demand for value added services that provide additional cost
reduction or production optimization for the Corporation's energy
client base; and
- Management's assumptions regarding the sustainability of recurring
revenue streams and the Corporation's expected continuing
profitability in 2009.
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