FY2021 Year End Results REGINA, SK, Dec. 6, 2021 /CNW/ - SSC Security Services Corp. (formerly Input Capital Corp.) ("SSC" or the "Company) (TSXV: SECU) (OTCQX: SECUF), a leading provider of physical and cyber security services, is pleased to release its results for the 2021 fiscal year ended September 30, 2021. All figures are presented in Canadian dollars.
"As I wrote in my October 4 letter to shareholders, our pivot to the security industry is moving along rapidly," said President & CEO Doug Emsley. "Over the last fiscal year, we have done two acquisitions, significantly wound down our legacy agriculture business and became a strong player in the physical and cyber security industries.
"Our rebranding is complete, and our balance sheet makes us one of the best capitalized companies in the Canadian security industry. Our senior management team has over 70 years of experience building and operating profitable security companies, and as we head into a new fiscal year, we look forward to leveraging that experience and balance sheet to create value for our shareholders."
FY2021 HIGHLIGHTS
- Over the year, we reduced our agriculture book from over $44 million to about $24.4 million, paid down $5.2 million in long-term debt, bought back 1.6 million shares outstanding via our NCIB, grew from 9 employees to about 625 employees, and increased our cash position by about $1.5 million. In addition, we pivoted from the agriculture industry to the security industry with two acquisitions:
- On February 1, 2021, we acquired SRG Security Resource Group Inc. ("SRG"), a leading Canadian cyber security and physical security company based in Regina, Saskatchewan, for $19.4 million, subject to normal working capital and holdback adjustments. Of that purchase price, $12.3 million was paid in cash and 8,883,930 shares were issued at a fair value as at the date of acquisition of $7.1 million.
- On July 10, 2021, the Company finalized an asset purchase agreement with Impact Security Group Inc. ("Impact") to purchase all Impact security and guard contracts in the Province of Saskatchewan, Canada. The purchase price was $2.0 million, with $1.35 million in cash paid on closing and the balance to be paid as an earnout based on the performance of the contracts over the next twelve months.
- Recorded full year revenue of $20.3 million, which includes only eight months of security-related revenue because the SRG acquisition closed on February 1. Security revenue represented 58.4% of revenue in the fiscal year.
- Comprehensive after-tax net income of $1.9 million for the full fiscal year.
- Adjusted EBITDA of $2.9 million ($0.05 per share) for the full fiscal year.
- Increased our cash position by $1.5 million while repaying $5.2 million in long-term debt, bringing our total debt outstanding to approximately $2.5 million. Subsequent to year-end, we paid down another $2.065 million in debt.
- Paid a quarterly dividend of $0.01 per share, or $0.04 per share annualized.
- We finished the fiscal year ended September 30 with:
- Cash and cash equivalents of $28.8 million;
- Loans and mortgages receivable of $12.5 million;
- Total shareholders' equity of $75.9 million; and
- Long-term debt of $2.5 million.
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