CriticalControl Solutions Corp.
TSX : CCZ

CriticalControl Solutions Corp.

March 15, 2010 09:00 ET

CriticalControl Announces Financial Results for 2009

CriticalControl delivers 8th consecutive profitable quarter

CALGARY, ALBERTA--(Marketwire - March 15, 2010) - CriticalControl Solutions Corp., (TSX:CCZ) today reported its financial results for the year ended December 31, 2009. 

Fiscal 2009 Highlights

  • 14% increase in total revenue to $29.6 million in 2009 from $26.0 million in 2008. On a segmented basis, revenue from the Corporation's energy business increased 25% to $14.7 million from $11.8 million and the Corporation's government and other business increased 5% to $14.9 million from $14.2 million;
  • Gross margin as a percentage of revenue was 49% in 2009 compared to 54% in 2008. On a segmented basis gross margin as a percentage of revenue from the Corporation's energy business was 62% compared to 64% in 2008 and gross margin from the Corporation's government and other business was 37% compared to 46% in the previous year.
  • Net income of $3.0 million in 2009 compared to $3.4 in 2008. On a segmented basis, income before tax and corporate overhead costs in the Corporation's energy business was a record $4.1 million compared to $3.0 million in the previous year and income before tax and corporate overhead costs in the Corporation's government and other business was $1.3 million compared to $2.9 million in the previous year;
  • Acquired the business of BPO Management Services, Ltd., with offices in Winnipeg and Toronto;
  • Acquired the business of Southport Data Systems Inc. in Markham, Ontario;
  • Acquired the business of GAS Analytical Service, Inc., based in the Appalachian Basin in the Eastern U.S.A.; and
  • Increased serviced measurement points to 185,829 at the end of 2009 from 113,909 at the end of 2008.

Fourth Quarter 2009 Financial Highlights (Q4 2009 compared to Q4 2008)

  • 49% increase in total revenue to $10.5 million in 2009 from $7.0 million in 2008. On a segmented basis, revenue from the Corporation's energy business increased 71% to $6.0 million from $3.5 million in 2008 and the Corporation's government and other business increased 28% to $4.5 million from $3.5 million in 2008;
  • Gross margin as a percentage of revenue of 46% in 2009 compared to 54% in 2008. On a segmented basis gross margin as a percentage of revenue from the Corporation's energy business was 55% compared to 61% in 2008 and gross margin as a percentage of revenue from the Corporation's government and other business was 31% compared to 48% in the previous year; and
  • Net income of $1.1 million compared to $1.0 million in 2008. On a segmented basis, income before tax and corporate overhead in the Corporation's energy business increased to $1.6 million from $0.9 million in 2008 and income before corporate overhead in the Corporation's government and other business fell to $0.2 million from $0.7 million in 2008.

The 2009 annual financial statements contain operations from the Corporations three acquisitions from the date they were acquired. Additionally, the Corporation recorded a one time benefit of $610 through general and administrative cost reductions due to the recognition of the Corporation's investment tax credits which were previously not included on the Corporation's balance sheet. This benefit was recognized in Q4 2009 in the Corporation's government and other business. During Q4 2009 and Q1 2010, the Corporation incurred costs for integration of its acquired businesses and downsizing of its historic Alberta based government business which will not be incurred after Q1 2010. Included in 2009 general and administrative costs are $494 of expenses which will not be incurred subsequent to Q1 2010 due to changes already completed by management.

"In 2009, CriticalControl responded to a significant economic downturn with an aggressive expansion in our core area of expertise," said Alykhan Mamdani, President and CEO of CriticalControl. "As we integrate these acquisitions in 2010 to be consistent with our operating methodology and improve our profitability, we will be competitively well positioned to take advantage of our larger market presence as we exit the current economic climate."

Gross margin as a percentage of revenue and income before corporate overhead and tax are not GAAP measures and readers are cautioned not to substitute these measures as alternatives to GAAP measures. Management is of the opinion that these measures are useful indicators of operational performance.

Reference is made to the Corporation's 2009 Annual 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.

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