SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

May 02, 2011 10:08 ET

SelectCore Announces Record Financial Results and Trends for 2010

TORONTO, ONTARIO--(Marketwire - May 2, 2011) - SelectCore Ltd. (TSX VENTURE:SCG), a provider of prepaid telecom and financial solutions for the credit challenged and unbanked consumer market, is pleased to announce record financial results for the Company's audited financial statements for the quarter and year ending December 31, 2010.

Financial Highlights:

Record revenues for the year ending December 31, 2010 totaled $103.2 million, an increase of $19.2 million or 23% compared to $84 million for the year ending December 31, 2009. Sales have continued to increase year over year due to new business expansion and the growing demand for the company's proprietary technology platforms.

Gross profit after non-operational, one-time year-end adjustments for the fourth quarter was $1.76 million, an improvement of 223% over the same period in 2009.

Gross margins after non-operational, one-time year-end adjustments for the quarter increased 160% to 7.0% over the same period 2009 and 46% over the previous quarter 2010. The increased margins are a result of the Company's recent expansion into high-margin prepaid financial services and technology licensing. Management believes that this is a key indicator of the Company's emerging margin trend.

Adjusted EBITDA for the year ending December 31, 2010 was $663,509 compared to $576,924 for 2009.

In 2010, SelectCore commenced several business and product development initiatives that will materially benefit the Company in 2011 and beyond as it begins to focus its growth on high-margin prepaid financial services.

Key milestones in 2010:

  • Record-breaking sales in excess of $103 million
  • 3,500 new merchant locations added to its retail network
  • Processed over 40 million transactions
  • Successful expansion into the US market
  • Ranked one-of Canada's fastest-growing companies for the 3rd year by Profit 100
  • Launched Iridium MasterCard – first of its kind prepaid card in Canada
  • Completed new technology development for key financial service offerings including the recent launch of ReCash – Canada's first cash reload network

Key growth strategies for 2011:

  • Continue to grow the company's legacy business & merchant network
  • Diversify into high-margin prepaid financial services & transaction processing
  • License its proprietary technology solutions in emerging markets
  • Complete the development and launch of a platform to aggregate and monetize the vast unbanked consumer market.

Keith McKenzie, CEO of SelectCore stated "We are well positioned to execute on our expansion plans by leveraging the solid foundation we built with our legacy business. Our focus is now on high-margin business segments that will drive profits and shareholder value."

Ryan Deslippe, President of SelectCore commented "We expect that the growth of Iridium MasterCard, ReCash and new product launches to be announced in 2011, will be key drivers of high-margin profitability".

The Company's Audited Financial Statements and Management Discussion and Analysis for the year ended December 31, 2010 are available on SEDAR at www.sedar.com.

About SelectCore

SelectCore is a leading provider of transaction processing and point-of-sale solutions for the prepaid telecom market and financial services sector. From prepaid mobile top-up to stored-value cards, SelectCore services a market of nearly 80 million underbanked and credit-challenged consumers through its extensive retail distribution network across Canada and the United States. SelectCore is listed on the TSX Venture Exchange under the symbol "SCG" (TSX VENTURE:SCG) and in the US under the symbol "SLXXF". SelectCore was ranked by Profit100 Magazine as one of Canada's fastest growing companies in 2006, 2007 and 2009 and is a candidate again for 2010.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's debt financing arrangements with Windsor Bancorp Limited Partnership and Digital Telecom Inc. and the Company's future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks related to market and financing conditions as well as risks associated with the prepaid telecom, prepaid financial and transaction-based point of sale activation industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed in the Company's management's discussion and analysis for the period ended September 30, 2010, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. the Company does not undertake to update any forward-looking information contained herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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