- Published: 25 May 2012
- Written by Editor
Garda Reports its Best Performance Ever in a First Quarter
- Operating profit up 20.4% at $35.5 million - Organic growth at 11% - Net income up 39% at $6.3 million - Continued positive momentum in all business units
Garda World Security Corporation ("Garda") (TSX:GW), one of the leading Security Solutions and Cash Logistics firms in the world, announced today its financial results for the first quarter ended April 30, 2012.
For the Quarter ended April 30, 2012 (February - April)
- Revenue up 12.1% at $321 million, organic growth amounted to $31.8 million or 11%
- Cash Logistics Solutions revenue increase of 8.1%
- US operations up 8.8%
- Security Solutions revenue increase of 15.8%
- Emerging markets up 85%
- Canadian security up 17% (excluding airport operations)
- Cash Logistics Solutions revenue increase of 8.1%
- Gross profit up 20% at $77.3 million
- Operating profit of 11.1% at $35.5 million, an increase of 20.4%
- Cash Logistics Solutions: 16.1% of revenues
- Security Solutions: 6.7% of revenues
- Strong cash flow from operations at $35.5 million, an increase of 21.3%
- Net income up 39% at $6.3 million or $0.20 per share
"In the first quarter, we successfully sustained the strong momentum we had established over the past three quarters," said Patrick Prince, Senior Vice President and Chief Financial Officer. "All of our operating units delivered solid growth and very good margins for the quarter. Organic growth takes time and requires investments, but our performance and improved operating profit for the last three quarters confirm that we are delivering value. The numbers speak for themselves."
"This is our best first quarter ever and a great start to the year. We expect to improve on that performance quarter after quarter as growth continues across all our platforms," noted Stephan Cretier, President and CEO. "We are constantly hunting for new growth, efficiencies and innovative ways to improve our performance. The remarkable results of our business platforms allow us to pursue opportunities with even greater confidence while we continue to invest in our growth, expand our footprint and build a stronger organization."
As previously disclosed, the company continues to expect a solid performance for C2012 (Fiscal 2013) with strong organic growth and operating profit of $145 million.
| FINANCIAL HIGHLIGHTS |
| (In thousands of Canadian dollars) | Three months ended April 30, 2012 |
Three months ended April 30, 2011 |
Variance | Variance | |||
| $ CAN | $ CAN | $ | % | ||||
| Revenues | 320,546 | 285,998 | 34,548 | 12.1 | % | ||
| Canada | 156,028 | 148,383 | 7,645 | 5,2 | % | ||
| United States | 128,501 | 118,116 | 10,385 | 8.8 | % | ||
| Emerging Markets | 36,017 | 19,499 | 16,518 | 84.7 | % | ||
| Security Solutions | 171,773 | 148,355 | 23,418 | 15.8 | % | ||
| Canada | 135,756 | 128,856 | 6,900 | 5.4 | % | ||
| Emerging Markets | 36,017 | 19,499 | 16,518 | 84.7 | % | ||
| Cash Logistics Solutions | 148,773 | 137,643 | 11,130 | 8.1 | % | ||
| Canada | 20,272 | 19,527 | 745 | 3.8 | % | ||
| United States | 128,501 | 118,116 | 10,385 | 8.8 | % | ||
| Operating profit 1 | 35,526 | 29,497 | 6,029 | 20.4 | % | ||
| Security Solutions | 11,578 | 7,674 | 3,904 | 50.9 | % | ||
| Cash Logistics Solutions | 23,948 | 21,823 | 2,125 | 9.7 | % | ||
| Gross profit 1 | 77,263 | 64,420 | 12,843 | 19.9 | % | ||
| Security Solutions | 26,082 | 18,038 | 8,044 | 44.6 | % | ||
| Cash Logistics Solutions | 51,181 | 46,382 | 4,799 | 10.3 | % | ||
| Net income for the period | 6,259 | 4,487 | 1,772 | 39.5 | % | ||
| Cash flow from operations before changes in non-cash working capital | 35,502 | 29,279 | 6,223 | 21.3 | % | ||
| 1 Gross profit and operating profit are not accepted performance measures as per IFRS |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Garda's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the company's future revenues and benefits and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Garda believes are reasonable according to the current circumstances. While management considers these assumptions to be reasonable based on information currently available to the company, they may prove to be incorrect. The company cautions the reader that the current economic conditions make forward-looking information and the underlying assumptions used by Garda subject to uncertainty and that, consequently, they may not materialize, or the results may differ from the company's expectations. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Garda currently expects. These factors include growth management, market competition, cost of financing, government regulations, collective bargaining, currency fluctuations, credit risk, reputational risk and financial covenants risk, many of which are beyond the company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.
This analysis should be read in conjunction with the company's unaudited consolidated interim financial statements, and the notes thereto, prepared in accordance with IFRS and the MD&A of the first quarter ended April 30, 2012.
All amounts referenced herein are in Canadian dollars.
CONFERENCE CALL
Stephan Cretier, President & CEO, and Patrick Prince, Senior Vice President & CFO, will discuss the first quarter results today, May 25, 2012 at 10:00 AM ET during a conference call with financial analysts and institutional investors. Listeners may access the call by dialing 1.416.981.9000 or 1.800.940.2599 for international calls.
MD&A FILING
Garda's Management's Discussion and Analysis for the first quarter ended April 30, 2012 was filed on SEDAR on May 25, 2012 and is available on the web site www.garda.com in the investors' section as of May 25, 2012.
ABOUT GARDA
Garda is a global provider of security and cash logistics solutions. With headquarters in Montreal, Canada, the firm's 45,000 dedicated professionals, among the most highly qualified and best-trained in the industry, serve clients in countries throughout North America, Europe, Latin America, Africa, Asia and the Middle East. Garda works with clients in a broad range of sectors and industries including financial institutions, retailers, governments, humanitarian relief organizations and the natural resources, construction and telecommunications industries. Garda's global experts take the time to fully understand their clients' business goals and objectives in order to customize solutions with strong local engagement that meet their needs.
As a result, clients can improve operational performance, meet their business obligations, and achieve their corporate objectives. With proven experience and a commitment to ensuring the highest ethical standards in everything the company does, Garda has earned a reputation for integrity, leadership and uncompromising safety standards. Most importantly, businesses, governments and individual clients place their trust in Garda. For more information, visit: www.garda.com.
