United Protection Security Group Inc. - Q3 - RESULTS

    




 EDMONTON, Nov. 21, 2011 /CNW/ - F.V.Ramsoondar, Chief Executive Officer  of United Protection Security Group Inc. (UPSG or the Company),  is pleased to announce that the Company has released its Q3- 2011  results. 

 F.V.Ramsoondar states: "The quarter ended September 30, 2011 continued  to reflect the results of the restructuring and cost management that  was initiated earlier in the year. My focus will be to continue to  build profitability back into the Company, which will enable my team to  deliver on our growth strategies. 

  





                                                 

    Reconciliation of EBIITDA and      3 months      3 months      3 months
    EBIITDAS                      Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011

                                                                           

    Net Income (loss) for the          $230,374      $247,241    $(208,900)
    periods

    Add:                                                                   

      Income taxes                         (63)         (476)      (24,400)

      Finance costs                      59,837        71,411        83,977

      Depreciation, amortization        141,961       148,995       143,484
      and impairment

    EBIITDA (1)                        $432,109      $467,171      $(5,839)

    Add:                                                                   

      Share-based payments                2,049         2,815         8,677

    EBIITDAS (2)                       $434,158      $469,986        $2,838






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

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

 Pursuant to a press release dated October 24, 2011, the Company is in  the process of closing a new receivable financing facility of $4.5 USD  million dollars, which does not impose any financial covenants. The  Company's current receivable financing facility is capped at $3 million  CAD and imposes a financial covenant that is currently in breach. Mr.  Ramsoondar has executed a personal guarantee for the new facility and  will be issued 8 million common shares of the Company at $0.05 per  share as compensation. This $400,000 non-cash cost will be reflected in the Company's Q4-2011 results. The new facility  will enable the Company to finance its organic growth plans  effectively. 

 Revenue Revenue was $8,758,376 for the third quarter 2011 compared to $8,496,968  for the comparative period, an increase of  $261,408 or 3.08%.  The  increase in revenue is primarily related to sales and marketing efforts  the Company deployed over the last two financial quarters. 

 Gross margin Gross margin was $1,635,321 (18.67%) for the third quarter 2011 compared  to  $1,463,313 (17.22%) for the comparative period.  The increase in  gross margin is attributed to controlling overtime costs and managing  other operational costs effectively. 

 Operating costs Operating costs remain consistent at $7,123,055 for the third quarter  2011 compared to $7,033,655 for the quarter 2010. 

 Selling and administrative expenses ("S&A") S&A totalled $1,233,212 for the third quarter 2011 compared to third  quarter 2010 at $1,407,511, reflecting a decrease of $174,299 or  12.38%, the direct impact of the management cost-restructuring plan  implemented in May 2011. 

 Stock Awareness Activities To find out more about United Protection Security Group Inc. , 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.  

   

   

United Protection Security Group Inc.


CONTACT:  For additional investor and media relations inquiries contact:Fredy Ramsoondar CEO and DirectorEmail:  [e-mail]: 780-465-8101 


    

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