SOURCE: SupportSave Solutions, Inc.

SupportSave Solutions, Inc.

June 25, 2009 08:00 ET

SupportSave Solutions Shareholder Update -- Letter From the CEO

LOS ANGELES, CA and CEBU CITY, PHILIPPINES--(Marketwire - June 25, 2009) - SupportSave Solutions, Inc. (OTCBB: SSVE) President & CEO Chris Johns today issued the following letter to the company's shareholders:

Dear Shareholders,

You may have noticed our lack of press releases for the last few months. This was NOT because of an absence of good news or positive developments. We strive to invest in our business where it can be most effective. Rather than putting out a press release every week, we invest that money in advertising, so we can focus on executing our business plan and the growth of our business. Our actions speak louder than words, but occasionally our shareholders need reassurance, which is why I am writing this letter.

SupportSave has had an impressive track record of triple digit growth in each of the last two years. Our revenue growth continues to be strong, for the fiscal year ended May 31, 2009, we expect revenues approaching $2,000,000, of that nearly $600,000 was in the most recent quarter. In fact during the 4th quarter ended May 31, 2008, our EBITDA is expected to be in the $200-250K range. We are gaining traction and scaling up in terms of client size as our operational expertise increases and our sales and marketing budget expands to correspond with our growth. We have a robust pipeline of potential government and corporate clients worth $1-5MM annually each.

Our larger cash flows have allowed us to reposition our company to attract larger clients by purchasing full-page ads in major trade publications, including Internet Retailer Magazine. We will be featured in an article in the Buyer Guide released in July. One such contract win was a subject of our last press release. The fastest growing Job website on the internet completed ramping to 50 seats and is now planning to ramp to 100. At an estimated annual value of over a million dollars this will continue to add to our growth. We expect wins like these to continue to accelerate.

Here are a few highlights:

--  Revamped Website: We revamped our website and modified our marketing
    strategy to attract larger clients. www.SupportSave.com is now our
    corporate website tailored to the needs of larger more sophisticated
    companies. We have competed the migration of all content from
    SupportSave.com to www.OutsourcedEmployee.com to continue to our strategy
    of making outsourcing affordable to small and midsized businesses though
    this website.
    
--  Stock Buyback Program: As of today, we have repurchased 266,869 shares
    on the open market and will continue to do so at our discretion until we
    reach 500,000 shares. We truly believe the company's shares are very
    undervalued and will take advantage of buying opportunities. We currently
    have 13.2MM shares outstanding. We encourage you to contact our transfer
    agent.
    
--  Minimal Dilution: We have not issued a single share, option or warrant
    in over 8 months, and issued only 600,000 for the entire fiscal year. This
    is about 4% for the year which is very low for a company growing triple
    digits and rare for any OTCBB traded company. If you subtract the stock we
    bought back its less than 2%. We finance our operations through significant
    positive cash flows and not through the sale of stock. Our management team
    and directors have never sold a single share of stock or exercised a single
    option since inception and have no plans to do so for the foreseeable
    future.
    
--  Balance Sheet: We have no debt and a very strong balance sheet. With
    over $1MM in Cash, Short-term investments and a secured receivable, we are
    in a very good position. We also have a carry forward tax benefit (asset)
    of $180,000. We don't inflate our balance sheet with goodwill, non-secured
    receivables and intellectual property. Our balance sheet and financial
    condition are so strong for a company our size that our auditor feels
    satisfied in removing the "GOING CONCERN" from our financials.
    
--  Credit: During this quarter, our bank, RBS-Citizens increased our
    credit line to $100,000 at 5.99% APR with no personal guarantee. (We
    maintain it at a Zero Balance). This is significant during a credit crisis.
    
--  CCTV System: For those of you unfamiliar with our surveillance system,
    you can login to view our center and nearly 300 employees from eight live
    streaming cameras 24/7 http://www.supportsave.com/live.php
    

Growth Forecast:

We conservatively forecast FY09/10 revenue of approximately $5.0M while maintaining an EBITDA margin of 35% or better, leaving us $1.75M EBITDA. We expect to double these results in the fiscal year ending May 31, 2011 to $10M revenue and $3.5M EBITDA. If we completely fail to meet our forecasted growth targets, we will still generate $1.2MM EBITDA over the next 12 months with no further growth. I believe this demonstrates how undervalued our company is today. We will continue to add capacity to meet demand as needed.

Feel free to contact me anytime by phone, email or instant messenger. I am available for all of our shareholders.

Regards,
Chris Johns
President & CEO
(248) 230-4101
Instant messengers:
Skype: moneymovesasia
Yahoo/MSN: seenonscreen
chris@supportsave.com

Please bear in mind that you should never invest more than you can afford to lose and that some of my statements are forward looking. As hopeful and optimistic as I like to be, some or all of it may never materialize.

Contact Information

  • Chris Johns
    President & CEO
    (248) 230-4101
    Instant messengers:
    Skype: moneymovesasia
    Yahoo/MSN: seenonscreen
    Email Contact