United Protection Security Group Inc V.UZZ

Q3 results are out...

[theinvestor22]

Q3 was about as expected.  Physical security revenue was ok, although I was hoping for a bit more pre-tax net income.  Still, pre-tax net income excluding the 2011 $30k one-time item was up 26% year-over-year.  There was a lot of Electronic Security revenue in Q2 but almost nothing in Q3.  It seems there's not much recurring revenue there yet.  Cash flow was ok.

 

Anyway, looks like we'll have to wait until the 2 Ontario acqs are fully integrated before we see how things shake out.  I think they are capable of up to $400k in pre-tax net income per quarter.  Lots of potential...let's see what they can do with it.

[Halaboo]

Where are you getting Q3 numbers from?   Been searching and cannot find anything released.  

[liquidcool]

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[Halaboo]

theinvestor22,  you had numbers before the press release?  Anybody who wants more information on Q3 than what is in the press release from this morning, go to Sedar.

[TheRock07]

Continueing steady progress in improving margins and cash flows. Should end the year with about $43 million in sales and about $1 million in net earnings. The current share price does not do justice to these financials.   So, lets put it up for sale...............

[theinvestor22]

We are definitely seeing consistent profitability and it should get better once the latest two acquisitions are fully integrated.   Rocky, I don't think they'll put the company up for sale until they're through this round of expansion and integration.  I must agree however, that it would be a nice way to turn a quick profit if they did.   Halaboo, your question

[liquidcool]

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[theinvestor22]

liquid: Even though Cramer is a pretty weird guy, I do agree with him that it's not a good idea to own shares in a company if your only investment thesis is that you're going to get bought out.     Here's why I own the stock. UZZ lost money in 2009, lost less money in 2010, made money in 2011 and should make more money in 2012. Underlying eps is greater than 1 cent per share,

[liquidcool]

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[theinvestor22]

liquid:  We're not disagreeing on the material facts here.  A while back, I was convinced that Fredy could turn the company around and grow earnings.  The ownership issue was there then and the price was slightly higher.  Fredy has done what he said he'd do and the ownership issue is still with us.  Unfortunately, the price hasn't responded.   If the

[jenny2012]

liquidcool, I'd like to make a correction to something you mentioned....there is not any one majority shareholder.

[liquidcool]

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[jenny2012]

According to the June 12, 2012 AIF, Jorstad has 31,210,141 shares (40.21%). However Ramsoondar has voting rights on half of those shares, as per a June 11, 2012 Heads of Agreement. In effect, that reduces Jorstad's Proxy Voting Rights to 20.11%.  

[liquidcool]

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[liquidcool]

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[jenny2012]

liquidcool Hmm, we better get this right. Regarding those 31,210,141 shares: Note (1) at the bottom of page 5 of the AIF states: "The totals include 22,500,000 common shares held through Hagan Equities Inc., a corporation wholly owned and controlled by Mr. Jorstad".

[liquidcool]

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