Record Quarter and profitability
United Protection earns $269,865 in Q2 2012
2012-08-30 07:22 ET - News Release
Mr. Fredy Ramsoondar reports
UNITED PROTECTION SECURITY GROUP INC. - Q2-2012 - RESULTS
United Protection Security Group Inc. has released its second quarter 2012 results.
UPSG PERFORMANCE Q2
a) Revenue Revenue was $11,400,518 for the quarter ended June 30, 2012 compared to $8,514,846 for the comparative quarter, an increase of $2,885,672 or 33.89%. Acquisitions in the current year have been a significant reason for the increase in revenue. The Company expects that its future operating results may be subject to quarterly and annual fluctuations resulting from a variety of factors, including market conditions, changes in customers and geographic distribution. In the Electronic Security division, revenues are primarily derived from the number of new installation and monitoring contracts.
b) Gross margin Gross margin was $2,388,657 (20.95%) for the quarter ended June 30, 2012, compared to $1,596,131 (18.75%) for the comparative quarter. In 2011, the Company outsourced some of its operations to a subcontractor and therefore accounted for the costs as cost of sales. This arrangement has ended in the current year, resulting in a decrease in cost of sales and an increase in overhead costs in the quarter compared to the three months ended June 30, 2011.
c) Selling, general and administrative expenses ("SG&A") SG&A totalled $1,606,621 for the current quarter, compared to $1,142,812 for the quarter ended June 30, 2011, an increase of $463,809 or 40.58%. The increase is attributed to the change in the subcontractor arrangement noted above, as well as increased overhead in support of the Company's expanding scope of operations. Management will continue to review SG&A for additional cost reduction opportunities.
UPSG PERFORMANCE Q2 YEAR TO DATE
a) Revenue Revenue was $20,289,638 for the six months ended June 30, 2012 compared to $16,492,605 for the comparative period, an increase of $3,797,033 or 23.02%. Organic growth and acquisitions have been the primary reasons for the increase in revenue. The Company expects that its future operating results may be subject to quarterly and annual fluctuations resulting from a variety of factors, including market conditions, changes in customers and geographic distribution. In the Electronic Security division, revenues are primarily derived from the number of new installation and monitoring contracts.
b) Gross margin Gross margin was $4,006,637 (19.75%) for the six months ended June 30, 2012, compared to $2,876,362 (17.44%) for the comparative quarter. In 2011, the Company outsourced some of its operations to a subcontractor and therefore accounted for the costs as cost of sales. As discussed above, the end of this subcontractor relationship in the current year has contributed to increased gross margins.
c) Selling, general and administrative expenses ("SG&A") SG&A totalled $2,752,787 for the current period, compared to $2,420,205 for the six months ended June 30, 2011, an increase of $332,582 or 13.74%. The end of the subcontractor arrangement and additional overhead in support of our expanding scope of operations has been the primary reasons for the increase in SG&A. Management will continue to review SG&A for additional cost reduction opportunities.
Quarter ended June 30, 2012 2011 Net income $ 269,865 $ 242,770 Add: Income taxes (recovery) 157,221 (476) Interest and accretion 130,559 71,411 Depreciation and amortization 224,391 148,995 EBIITDA 782,036 462,700 Share-based compensation - 7,286 EBIITDAS $ 782,036 $ 469,986
Six months ended June 30, 2012 2011 Net income $ 487,513 $ 20,088 Add: Income taxes (recovery) 210,800 (24,876) Interest and accretion 195,970 155,388 Depreciation and amortization 359,567 292,479 EBIITDA 1,253,850 443,079 Share-based compensation - 29,745 EBIITDAS $ 1,253,850 $ 472,824
(1) EBIITDA = Earnings before interest, impairment, taxes, depreciation and amortization (2) EBIITDAS = Earnings before interest, impairment, taxes, depreciation and amortization and share-base payments.
REVENUE BY PROVINCE Quarter ended June 30, 2012 2011Revenue Alberta 8,929,669 7,290,062 Ontario (2 months) 1,177,919 - British Columbia 1,060,314 1,166,487 Other 232,616 58,297 11,400,518 8,514,846
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