Garda World Security Corporation

Garda World Security Corporation

April 25, 2007 08:01 ET

Garda Reports Record Earnings and Operations Expansion in 2007

The firm embarks on fiscal year 2008 moving decisively to achieve its expansion and integration objectives

MONTREAL, QUEBEC--(CCNMatthews - April 25, 2007) - Garda World Security Corporation (TSX:GW), one of the most trusted consulting, investigation and security firms in the world, is pleased to announce today its financial results for the fiscal year ended January 31, 2007.


- Record net income of $21.0 million

- Sales increased by 164% to $683.0 million

- EBITDA increased by 113% to $57.4 million

- Cash flows from operations grew to $37.1 million, an increase of $16.1 million

- Shareholders' equity increased by 457% to reach $156.0 million

- Non recurrent charges amounted to $1,157,411 before income taxes or $0.026 basic per share

Selected Financial Information (1):
Fourth quarter Fourth quarter
ended January ended January
31, 2007 31, 2006 Var.
$ $ %
Sales 200,415,745 85,991,678 +133

Gross profit 35,566,248 18,505,194 +92

Net income 5,124,185 3,739,036 +37

Basic net income per share 0.17 0.15 +13

EBITDA 15,121,958 8,134,682 +86

Basic EBITDA per share 0.49 0.31 +58

Total assets

Shareholders' equity

Fiscal year Fiscal year
ended January ended January
31, 2007 31, 2006 Var.
$ $ %
Sales 682,992,531 258,952,236 +164

Gross profit 131,294,696 52,275,428 +151

Net income 21,046,476 13,419,176 +57

Basic net income per share 0.73 0.52 +40

EBITDA 57,438,949 27,024,824 +113

Basic EBITDA per share 1.98 1.05 +89

Total assets 446,355,367 249,163,498 +79

Shareholders' equity 155,985,919 28,005,902 +457

(1) Cash flows from operations and EBITDA (earnings before interest, income
taxes, depreciation and amortization) are not accepted performance
measures as per Canadian GAAP.

"We are pleased that, during fiscal 2007, we delivered on our key priorities to maintain sustainable growth, including revenue, profitability, strategic acquisitions, and integration between businesses, delivering solid performance in each of these areas. We exceeded many of our key financial and operational targets and completed 11 acquisitions in 2007. Garda has established a proven track record for integrating and paying down acquisitions and I am confident we will continue leveraging synergies between our businesses with success. Thanks to our strategy and solid performance, Garda continues to successfully build on past success and achieve its goals," noted Alain Dumont, Senior Vice President and Chief Financial Officer.

"Garda achieved a significant milestone in its leadership of the worldwide security industry during fiscal 2007. We are now the fifth largest security services firm in the world on a revenue basis with solid growth and expansion across all areas of our business. We have achieved this tremendous expansion and created unparalleled opportunities for our future while remaining faithful to our core values and founding vision. Around the world, our employees continue to drive our success, seizing new business opportunities and demonstrating outstanding entrepreneurial creativity. In 2008, we will continue to strengthen our leadership as we forge ahead with one unified organization and the vision and commitment to deliver superior value for its shareholders, customers and employees," said Stephan Cretier, President and CEO.


Sales for the year ended January 31, 2007 rose to $682,992,531 from $258,952,236 in the previous year, an increase of $424,040,295 or 164%. Sales in the physical security segment rose to $540,397,093 in fiscal 2007 from $190,867,986 in 2006, an increase of $349,529,107 or 183%, while sales in the cash logistics segment rose to $142,595,438 from $68,084,250 in 2006, an increase of $74,511,188 or 109%. Sales in Canada rose to $419,101,424 from $237,402,262 in 2006, while sales in United States and other rose to $263,891,107 from $21,549,974 in 2006.

The sales increase in the amount of $349,529,107 in the physical security segment is directly attributable to the business acquisitions completed during the last twenty-two (22) months and new contracts obtained. The sales increase in the amount of $74,511,188 in the cash logistics segment for the year ended January 31, 2007 is attributable to the internal growth in Canada and to the acquisitions of United Armored Services in November 2005, Security Armored Express in April 2006, Security Armored Car Service in June 2006, PSI Armored in September 2006 and the cash logistics assets of American Security in October 2006.

Gross Profit

Gross profit rose $79,019,268 or 151% from $52,275,428 for the year ended January 31, 2006 to $131,294,696 in fiscal 2007. The gross margin as a percentage of sales decreased from 20.2% to 19.2% . This increase (in dollars) in gross profit is attributable to the business acquisitions completed during the last twenty-two (22) months, to the increase in sales generated by the cash logistics segment in Canada, as well as to the pre-board screening services, that all provide higher gross margins.

Net Income

Net income for the year was $21,046,476 ($0.73 basic per share and $0.70 diluted per share) for fiscal 2007, compared with $13,419,176 ($0.52 basic per share and $0.50 diluted per share) for 2006, an improvement of $7,627,300 or 57% ($0.21 basic per share), even though the Corporation issued 4,500,000 Class "A" shares on June 7, 2006.

Cash flows from operations

Cash flows from operations rose to $37,145,836 for the year ended January 31, 2007, compared with $21,071,050 for the previous year. This increase of $16,074,786 or 76% is mainly attributable to the increase in EBITDA.


Garda will continue to come together under one vision and one company. To grow and achieve its goals moving forward, the Corporation will continue to unify its employees under one vision and serve its clients as one company. Garda will keep on leveraging its organization-wide capabilities across businesses and geographies, integrate its services toward a common goal to serve its clients better, strengthen its market position, and grow in a balanced way. The firm is moving ahead with one vision, one commitment, and one unified company and has embarked on an era of exciting and sustainable growth in shareholder value.

About Garda

Garda is well known for addressing complex security and investigations issues. As a well-established leading provider in consulting, investigation and security services, Garda is recognized as one of the fastest growing companies with offices across Canada and the United States, Mexico, Europe, the Middle East, Africa and Asia. With a team of over 50,000 professionals, Garda offers integrated solutions in cash logistics, physical security, consulting and investigation/Global Risk Services and Enterprise Intelligence Services. Its team includes specialists and some of the most highly qualified and best-trained experts in the industry. For more information, visit:

FORWARD-LOOKING INFORMATION -- This press release contains forward-looking statements reflecting Garda objectives, estimates, expectations and the impact of acquisitions on Garda's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Garda's projections or expectations.

Contact Information

  • Garda World Security Corporation
    Nathalie de Champlain
    Vice President, Communications
    Office: 514-281-2811 x 2800 or 800-859-1599 x 2800
    Garda World Security Corporation
    Lara Osseiran
    Corporate Communications, Garda
    Office: 514-281-2811 x 2883 or 800-859-1599 x 2883
    Morin Public Relations (Canadian Contact)
    Laird Greenshields
    Office: 514-289-8688 x 221 or 877-289-7007
    U.S./European Contact
    Joe Gavaghan
    Davies Murphy Group
    Office: 781-418-2419
    Cell: 617-283-4936