REDISHRED CAPITAL CORP. POSTS FOURTH QUARTER EBITDA OF $126,500, ANNOUNCES 2010 FOURTH QUARTER AND YEAR END RESULTS

MISSISSAUGA, ON, April 29 /CNW/ -- 
MISSISSAUGA, ON, April 29 /CNW/ -

Fourth Quarter and Annual Highlights: 


    --  Redishred generated $126,500 in earnings before interest,
        taxes, depreciation and amortization ("EBITDA") in the fourth
        quarter of 2010.
    --  Operating income was $21,000 in the fourth quarter of 2010.
    --  System sales( (1)) in our PROSHRED® system were $12.9 million
        in 2010, an increase of 34% over 2009:
  o System sales( )during the fourth quarter of 2010 were $3.2 million
    USD growing 21% over the fourth quarter of 2009.
  o Additionally, scheduled (recurring) system sales for the fourth
    quarter were a record high of $1.6 million USD.
    --  Royalty revenue for the fourth quarter of 2010 was $221,000
        CDN. Royalty and service revenues are generated by franchises
        of the PROSHRED® franchise system and are originally
        denominated in US dollars.
    --  On November 15, 2010, Redishred announced that it has entered
        into an agreement with Averda International FZ-LLC ("Averda")
        to operate the PROSHRED(®) and REDISHRED business platform in
        15 countries and four territories throughout the Middle East.
    --  Redishred's two corporate locations in Syracuse, New York and
        Albany, New York, generated $713,700 in revenue and $127,800 in
        corporate location income for the eight months ended December
        31, 2010.
    --  On December 31, 2010, Redishred acquired the Proshred Milwaukee
        business from an existing franchisee. This marks the third
        corporately owned location under the PROSHRED® banner.



((1)) System sales are revenues generated from the franchise system and
 corporate owned locations. Redishred Capital Corp. derives its royalty
 and service fee revenues based on a percentage of system sales.





Financial Highlights:





For the three months ended,         December 31, 2010 December 31, 2009

                                                    $                 $

                                                                       

Franchising and licensing:       
Royalty and service fee
revenues                                      220,895           212,767

Franchise/license fees                        246,249                 -

Total franchise revenues                      467,144           212,767

                                                                       

                                                                       

Corporate operations:            
Service and recycling revenue                 288,135                 -

Income from corporate locations                20,705                 -

                                                                       

Operating income (loss)                        21,081         (310,615)

                                                                       

Net income (loss)                           (456,990)         (537,686)

                                                                       

Income (loss) per share                        (0.01)            (0.03)

                                                                       

Weighted average number of       
common shares                              28,884,658        22,884,614

                                                                       









For the twelve months ended,      December 31, 2010   December 31, 2009

                                                  $                   $

                                                                       

Franchising and licensing:     
Royalty and service fee
revenues                                    934,639             828,944

Franchise Fees                              355,413             139,883

Total franchise revenues                  1,290,052             968,827

                                                                       

                                                                       

Corporate operations:          
Service and recycling revenue               713,711                   -

Income from corporate          
locations                                   127,754                   -

                                                                       

Operating income (loss)                   (413,986)         (1,391,518)

                                                                       

Net income (loss)                       (1,217,490)         (2,003,043)

                                                                       

Income (loss) per share                      (0.04)              (0.09)

                                                                       

Weighted average number of     
common shares                            28,884,658          23,016,122

                                                                       








Management's Comments on the Industry


The North American shredding industry has continued to grow, as there is
 increasing awareness with respect to the following demand drivers:


    --  regulatory requirements and enforcement continue to be
        increased with respect to document destruction, including the
        federally enacted Health Information Technology for Economic
        and Clinical Health Act;
    --  consumers and businesses have heightened awareness of their
        responsibility towards safeguarding the environment;
    --  corporate initiatives to outsource "non-core" business
        services; and
    --  an increasing need to destroy and recycle other media such as
        hard-drives.



Additionally, prices for recycled paper have continued to show upward
 momentum as a result of increased demand from overseas markets,
 resulting in stronger recycling system sales.


Given these strong fundamentals, the company continues to be optimistic
 about its short, intermediate and long-term development plans.


Management's Comments on the Fourth Quarter and fiscal year 2010


System Sales - Redishred's management team continued to focus its efforts through
 its franchisees and its corporate locations on (1) building recurring
 service revenues and (2) optimizing routing and logistical
 efficiencies. System sales in all three major categories continued to
 grow during the fourth quarter of 2010.


    --  Scheduled system sales were up 14% over the fourth quarter of
        2009.
    --  Unscheduled system sales grew by 9% over the fourth quarter of
        2009.
    --  Recycling system sales grew by 54% over the fourth quarter of
        2009.
    --  In addition, the number of tons of paper recycled by the
        PROSHRED® system was up 5% over the fourth quarter of 2009.



These strong results are driven by Redishred's sales and marketing
 programs that are aimed at educating clients on the legislative
 requirements to destroy confidential information using a secure on-site
 solution.  Additionally, a larger number of clients are requiring their
 facilities to recycle all products, including office paper and, by
 using our service, clients are assured that documents are securely
 destroyed and the materials are recycled.


Franchise and license development - On July 26, 2010, Todd Hoover and Bill and Desiree Chiles were
 awarded the San Diego, CA PROSHRED® franchise.  On October 25, 2010, the San Diego franchise commenced
 operations marking the 18(th) operating location in the PROSHRED® system.


On November 15, 2010 the Company announced that it had entered into an
 agreement with Averda International FZ-LLC ("Averda") to operate the
 "Proshred" and "Redishred" business platform in 15 countries and four
 territories throughout the Middle East region.


Acquisitions and Corporate Operations - Since April 30, 2010, Redishred has completed three acquisitions in
 Syracuse, Albany, and Milwaukee. The New York locations are managed
 from the Syracuse regional office. The Wisconsin location is
 corporately operated as of January 1, 2011. The acquisitions have been
 accretive to Redishred's cash flows, generating the following results
 on a year to date and quarterly basis:






                       3 months ended      8 months ended
(in CDN)                   December 31         December 31

                                                          

                                  % of                % of
                          2010 revenue        2010 revenue

                             $                   $        

                                                          

Revenue:                                                  

  Shredding service    218,401     76%     544,373     76%

  Recycling             69,734     24%     169,338     24%

Total revenue          288,135    100%     713,711    100%

                                                          

Operating costs        201,907     70%     438,580     61%

Operating income        86,228     30%     275,131     39%

                                                          

  Depreciation          33,000     11%      74,295     10%

  Interest expense      32,523     11%      73,082     10%

                                                          

Corporate store income  20,705      7%     127,754     18%





Community and Social Commitment - Our locations under the PROSHRED® banner conducted 137 community shredding events throughout 2010. 
 These events provide an opportunity for our clients, clients'
 employees, local businesses and local residents to ensure their
 personal and confidential materials are securely destroyed.  In
 addition to helping to reduce identity theft, several of these events
 allow for donations to various not-for-profit organizations. 100% of
 the shredded material is recycled, as our continued goal is to foster
 the use of fewer trees in the production of all paper products. Future
 community shredding event locations can be found at our website, www.proshred.com. During 2010, the PROSHRED® system, through its recycling program, saved 306,000 trees.


Jeffrey Hasham, the Company's CEO, had the following comments on the
 fourth quarter and 2010 annual results, "First and foremost we are very
 pleased to have posted an operating profit during the fourth quarter of
 2010, this is a good result and we know that we can take this momentum
 into 2011 and improve on this success." Mr. Hasham also noted that
 "almost every one of our locations, franchise and corporate, has
 improved their annual sales results over 2009, these improvements in
 sales are a result of our franchise owners and corporate general
 managers getting involved in their communities by way of charitable
 activities and by way of educating clients on the dangers of identity
 theft. I would like to congratulate our entire system for their
 successes in 2010."


Financial Statements


Redishred's December 31, 2010 Financial Statements, Notes and
 Management's Discussion and Analysis will be available at www.sedar.com and www.redishred.com.


Services


Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States.  PROSHRED® shreds and recycles confidential documents and proprietary materials
 for thousands of customers in the United States in all industry
 sectors.  PROSHRED® is a pioneer in the mobile document destruction and recycling industry
 and has the ISO 9001:2008 certification. In addition to the ISO
 certification, all of our franchise and corporate locations are NAID
 certified. It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and
 recycling services on a global basis.





Note: Neither 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.  


This news release contains forward looking statements that reflect the
 current expectations of management of Redishred and Redishred's future
 results, performance, achievements, prospects and opportunities. 
 Wherever possible, words such as "may", "will", "estimate", "believe",
 "expect", "intend" and similar expressions have been used to identify
 these forward looking statements. These statements reflect current
 beliefs and are based on information currently available to management
 of Redishred.  Forward looking statements necessarily involve known and
 unknown risks and uncertainties. A number of factors, including those
 discussed in the 2009 and 2010 management discussion and analysis under
 "Risk Factors", could cause actual results, performance, achievements,
 prospects or opportunities to differ materially from the results
 discussed or implied in the forward looking statements. These factors
 should be considered carefully and a reader should not place undue
 reliance on the forward looking statements.  There can be no assurance
 that the expectations of management of Redishred will prove to be
 correct.


In particular, certain statements in this document discuss Redishred's
 anticipated outlook of future events. These statements include, but are
 not limited to:





           the commencement of a new franchise and license operation
  (i)      may be delayed by the inability of the franchisee or
           licensee to comply with their agreement terms and conditions
           post execution;

            anticipated system sales and royalty revenue which may be
  (ii)     impacted by industry growth levels which to date have been
           driven by favorable legislation and favorable media coverage
           on the impacts of identity theft.





Readers are cautioned that such forward looking statements are subject
 to certain risks and uncertainties that could cause actual results to
 differ materially from these statements. Redishred can give no
 assurance that actual results will be consistent with these
 forward-looking statements.


To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/April2011/29/c8165.html



p Redishred Capital Corp. (TSX.V - KUT)br/ Jeffrey Hasham, CAbr/ Chief Executive Officerbr/ a href="mailto:[e-mail]" cr="true"[e-mail]/abr/ a href="http://www.redishred.com" cr="true"www.redishred.com/abr/ Phone: [phone] Fax: [phone] /p p or, /p p Redishred Capital Corp. (TSX.V - KUT)br/ Kasia Pawluk, CAbr/ Chief Financial Officerbr/ a href="mailto:[e-mail]" cr="true"[e-mail]/abr/ a href="http://www.redishred.com" cr="true"www.redishred.com/abr/ Phone: [phone] Fax: [phone] /p 

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