SelectCore Ltd.

SelectCore Ltd.

June 21, 2011 08:01 ET

SelectCore Announces Record Financial Results for Q1, 2011

TORONTO, ONTARIO--(Marketwire - June 21, 2011) - SelectCore Ltd. (TSX VENTURE:SCG)(PINK SHEETS:SLXXF), a provider of prepaid telecom and financial solutions for the credit challenged and unbanked consumer market is pleased to report its financial results for the first quarter ended March 31, 2011.

Financial highlights compared to the same period 2010:
  • Revenues increased 1.3% to $21 million

  • Gross Profit increased 107% to $2.25 million

  • Gross Margins increased 104% to 10.7%

  • Adjusted EBITDA increased 11,500% to $1.1 million

Revenues of $20,987,393 for the first quarter 2011 represented an increase of 1.3% as compared to $20,726,395 in the same period 2010. Gross profit of $2,247,092 for the first quarter 2011 represented an increase of 107% as compared to $1,086,575 in the same period 2010. Gross margins of 10.7% for the first quarter 2011 represented an increase of 104% from 5.2% in the same period 2010. Net profit for the first quarter 2011 was $343,290 or $0.0032 per share compared to a net loss of $737,450 in the same period 2010. Adjusted EBITDA for the first quarter 2011 was $1,111,106, an increase of 11,500% as compared to $9,562 in the same period 2010.

As previously announced, the Company's growth strategy is now focused on high-margin prepaid financial services and the monetization of its technology platforms through licensing arrangements. The first quarter financial improvements reflect the initial results of this strategy with the Company having secured a licensing deal for its prepaid financial services platform. Incremental costs in the first quarter 2011 were related to the closing of new debt financing facilities, resources requirements for IT development and the Company's expansion into the US market.

Keith McKenzie, CEO of SelectCore commented "We have invested considerable resources with technology development and our entrance into the prepaid financial services industry in the past two years and we are now starting to realize a return on our investment that we expect will continue to drive profitability and long-term shareholder value."

The Company's Financial Statements and Management Discussion and Analysis for the three months ending March 31, 2011 are available on SEDAR at


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 millions of unbanked 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). SelectCore was ranked by Profit100 Magazine as one of Canada's fastest growing companies in 2006, 2007, 2009 and 2010.

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. 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 and prepaid financial 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 December 31, 2010, available on 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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