United Protection Security Group Inc. - Q1 RESULTS

EDMONTON, June 30, 2011 /CNW/ -- 
EDMONTON, June 30, 2011 /CNW/ - F.V.Ramsoondar, Chief Executive Officer
 of United Protection Security Group Inc. (UPSG or the Company), (TSXV:
 UZZ) is pleased to announce that the Company has released its Q1- 2011
 results.


F.V.Ramsoondar stated: "The results for the quarter do not reflect the
 results of the restructuring and cost management that the Company's new
 management has initiated. There were several significant changes made
 during the second quarter of 2011, which will impact the results of Q2
 and the balance of 2011 in a significant way. I am confident that our
 shareholders will see positive changes in the results of the Company
 going forward."




 __________________________________________________________________
|Reconciliation of EBIITDA and EBIITDAS|Mar. 31, 2011|Mar. 31, 2010|
|______________________________________|_____________|_____________|
|                                      |             |             |
|______________________________________|_____________|_____________|
|Net (loss) Income for the period      |   $(208,900)|     $386,037|
|______________________________________|_____________|_____________|
|Add:                                  |             |             |
|______________________________________|_____________|_____________|
|       Income taxes                   |     (24,400)|           --|
|______________________________________|_____________|_____________|
|       Finance costs                  |       83,977|       32,582|
|______________________________________|_____________|_____________|
|       Depreciation, amortization and |      143,484|      127,609|
|impairment                            |             |             |
|______________________________________|_____________|_____________|
|EBIITDA ((1))                         |      (5,839)|      546,228|
|______________________________________|_____________|_____________|
|Add:                                  |             |             |
|______________________________________|_____________|_____________|
|       Share-based payments           |        8,677|        1,799|
|______________________________________|_____________|_____________|
|EBIITDAS ((2))                        | $      2,838|     $548,027|
|______________________________________|_____________|_____________|




((1) )EBIITDA = Earnings before interest, impairment, taxes, depreciation and
 amortization


((2) )EBIITDAS = Earnings before interest, impairment, taxes, depreciation and
 amortization and share-based payments.


Revenues 
Revenue for the first quarter was $7,977,759, compared to $8,813,176 for
 last year, a decrease of $(835,417) or (9.48)%. The overall decrease in
 revenues is largely attributable to the additional one time revenue the
 Company recognized in 2010 from the 2010 Winter Games.


Gross margin
Gross profit for the first quarter 2011 was $1,280,231 (16.05%),
 compared with $2,060,893 (23.38%) last year. The decrease in gross
 profit is directly related to the reduction in revenues relating to the
 2010 Winter Games.


Operating costs
Operating costs were $6,697,528 compared with $6,752,283 last year, a
 decrease of $54,755 or 1%.


Selling and administrative expenses ("SGA")
SGA totalled $1,286,070 for the first quarter compared with $1,574,665
 for last year, a decrease of $(288,595) or (18.33)%.


Operating activities
Cash provided by operating activities decreased mainly due to the
 increased net loss and decreased non‑cash operating working capital. 
 Decreases in non‑cash operating working capital were primarily the
 result of increased receivables in Q1 2011.


Financing activities
Cash from financing activities amounted to $141,924 compared with cash
 of $267,431 last year.  The revolving facility generated $231,140
 during the quarter compared to $326,635 in the comparative quarter.


Property and equipment
Property and equipment amounted to $838,603 as at March 31, 2011, a
 decrease of $42,776 compared to December 31, 2010 mainly due to the Q1
 2011 depreciation of $84,361 and additions of $41,585.


Intangible assets
Intangible assets primarily include customer relationships, which are
 amortized on a straight‑line basis over periods varying between 5 and 8
 years.  Intangible assets amounted to $674,874 as at March 31, 2011, a
 reduction of $19,330 over intangible assets as at December 31, 2010,
 mainly due to customer lists purchased of $39,793 and Q1 2011
 amortization of $59,123.


Stock Awareness Activities
To find out more about United Protection Security Group Inc. (TSX-V:
 UZZ), visit our website at www.unitedprotection.com.  To join the 'request for information', go to the web page www.unitedprotection.com and click the tab 'request information' and follow the prompts.


Statements in this press release other than purely historical
 information, including statements relating to the Company's future
 plans and objectives or expected results, are forward-looking
 statements. Forward-looking statements are based on numerous
 assumptions and are subject to all of the risks and uncertainties
 inherent in the Company's business, including risks related to business
 development and retention, and risks related to the current economic
 and credit conditions. As a result, actual results may vary materially
 from those described in the forward-looking statements.


Neither the TSX Venture Exchange nor its Regulation Services Provider
 (as that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release. 


 


 


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table valign="top" border="0" tr td colspan="2" bFor additional inv/bbestor and media relations inquiries contact:/b /td /tr tr td   /td td bFredy Ramsoondar CEO and Director/b /td /tr tr td   /td td bEmail:  /ba href="mailto:[e-mail]"[e-mail]/a /td /tr tr td   /td td bTel: 780-465-8101/b /td /tr /table p   /p 

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