CriticalControl Solutions Corp.
TSX : CCZ

CriticalControl Solutions Corp.

May 04, 2010 09:00 ET

CriticalControl Announces 2010 First Quarter Financial Results

-Reports 9th Consecutive Profitable Quarter With Over 100% Increase in Revenue-

CALGARY, ALBERTA--(Marketwire - May 4, 2010) - CriticalControl Solutions Corp., (TSX:CCZ) today reported its financial results for the three month period ended March 31, 2010. 

Highlights for the quarter included (Q1 2010 compared to Q1 2009):

Revenue increased by 102% to $13 Million for the three months ended March 31, 2010 compared to $6.5 Million for the same period in 2009. Revenue from the Corporation's Service Bureau Operations increased by 51% despite a drop of $1.3 Million in the Corporation's historic Government business based in Alberta due to the Corporation's aggressive diversification strategy which included the acquisition of BPO Management Services, Ltd. ("BPOMS"), completed on July 31, 2009, and Southport Data Systems Inc. ("Southport"), completed on October 1, 2009. Revenue associated with the Corporation's Energy Services business increased by 158% as a result of the Corporation's expansion into the United States through the acquisition of GAS Analytical Service, Inc. ("GAS") completed on November 1, 2009. 

Income before tax increased by 8% to $0.71 Million from $0.66 Million while taxes from the Corporation's profitable US operations resulted in net income declining to $0.51 from $0.66 Million.

The Corporation's results for the quarter included amortization costs of $0.68 Million ($0.40 Million in Q1, 2009) interest of $0.12 Million ($0.06 Million in Q1, 2009) and non-recurring charges resulting from selling, general and administrative expense reductions and integration of BPOMS' business of $0.44 Million, offset by a onetime positive $0.52 Million valuation adjustment of inventory related to the assets of GAS.

"Our growth in revenue is a direct result of our strategy going into the economic downturn in 2009, resulting in our aggressive but focused expansion outside of Alberta into the rest of Canada and the North Eastern United States," said Alykhan Mamdani, President and CEO of CriticalControl. "As we continue to integrate our 2009 acquisitions and refine our business model, we anticipate improving our margins and reducing our administrative costs to improve profitability."

Reference is made to the Corporation's 2010 First Quarter Financial Statements and Management Discussion and Analysis, full copies of which are available on www.sedar.com and the Corporation's website, www.criticalcontrol.com.

About CriticalControl:

CriticalControl enables its clients to increase operational performance through the better control of critical business information. Through the balance of practicality, innovation and technology, we empower our clients with everything from strategies and tools, to outsourced solutions to manage information, wherever and in whatever form that information exists. For more information please visit www.criticalcontrol.com.

Contact Information