December 1, 2008
SelectCore Announces Third Quarter Results
For Immediate Release: December 1, 2008
TORONTO, ON: SelectCore Ltd. (TSX-V: SCG), Canadafs premier provider of prepaid telecom and transaction solutions, is pleased to report its financial results for the three and nine months ended September 30, 2008.
- Revenues increased 22% to $19.8 million from the same period 2007
- Gross Profit was up 53% from the same period 2007
- Normalized EBITDA grew to $30k from ($359k) in the same period
- Second quarter of positive normalized EBITDA in 2008
- Improved working capital position by $2.6M from Q3 of 2007
Record revenues of $19.8 million in the third quarter of 2008 represented an increase of 22% as compared to $16.1 million in the same period in 2007. Revenues also increased 21% from the prior three-month period. Year-to-date revenues were $51.5 million, an increase of 50% over the same period in 2007. This consistent sales growth is attributable to the strong market demand for the Company's proprietary point of sale activation (POSA) solution for prepaid wireless and long distance and the introduction of new prepaid product offerings.
Gross profit for the third quarter of 2008 was over $1 million, an increase of 53% over the same period in 2007 and 14% over the second quarter of 2008. Gross profit for year to date was over $3 million, a significant improvement of 114% from the same period in 2007. The continual increase is attributable to the migration of the Company's sales channel to its proprietary points of sale activation (POSA) solution.
Normalized EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, foreign exchange and capital raising costs) for the third quarter of 2008 was $30k compared to negative $389k over the same period in 2007. On a quarter over quarter basis, normalized EBITDA increased by $145k compared to the three months ended June 30, 2008. Year to date normalized EBITDA was $48k compared to negative $672k in the same period in 2007.
The Company's working capital deficit was reduced by $2.6M to $1.6M from the third quarter of 2007 to the third quarter of 2008.
Since the start of the year, we have improved our key performance metrics including sales, gross margins and normalized EBITDA. We expect this steady growth to continue as we approach $70 million in revenue for 2008h said Peter Burdon, CFO of SelectCore.
"Our results this quarter illustrate the successful execution of our corporate strategy." commented Ryan Deslippe, President of SelectCore. "With current market conditions, we are actually experiencing favorable quarter-over-quarter growth as more and more credit challenged consumers turn to prepaid alternatives for their telecommunications needs."
The Company's Financial Statements and Management Discussion and Analysis for the three and nine month periods ending September 30, 2008 are available on SEDAR at www.sedar.com.
December 1, 2008
SelectCore Announces Board of Director Change
For Immediate Release: December 1, 2008
TORONTO, ON: On November 24th, 2008, the Board of Directors of SelectCore Ltd. (TSX-V: SCG) accepted the resignation of Michael Newman. The Company would like to thank Mr. Newman for his contributions to the board.
November 6, 2008
SelectCore and Laurus Funds Agree to Increase Credit Facility
For Immediate Release: November 6, 2008
TORONTO, ON: Further to the press release dated June 18, 2008, Selectcore Ltd. (TSX-V: SCG) announced today that Valens Offshore SPV II Corp. ("Laurus Funds"), a New York based institutional fund that specializes in making investments in growth-stage public companies, has agreed to a US$500,000 increase to Selectcore's existing US$2,000,000 credit facility.
As consideration, Selectcore has agreed (i) to issue an additional 2,000,000 common shares to Laurus Funds, subject to TSX Venture Exchange approval, and (ii) to pay Laurus Funds a total of US$17,500 in non-refundable commitment fees.
The Company would also like to announce that it has granted an aggregate of 850,000 stock options to non-senior management employees. Each option is exercisable at $0.10 per share until October 20, 2010.
September 1, 2008
SelectCore Reports Record Revenues and Gross Profit for Second Quarter 2008
For Immediate Release: September 1, 2008
SelectCore Ltd. has released financial results for the second quarter of 2008.
By way of brief overview, revenue was $16,371,837, an increase of 52 per cent, compared with the second quarter of 2007. Gross profit increased 117 per cent over the second quarter of 2007. Loss before interest, amortization and financing costs was $145,635. Net loss per share was one cent. Operating expenses increased due to the company's aggressive growth plan, which included investment in POS terminals, IT resources, fulfilment, and support systems and processes.
The company's unaudited interim consolidated financial statements and management discussion and analysis for the period ending June 30, 2008, are available on SEDAR.
"I am pleased to report that SelectCore is not only delivering solid revenue growth but also a healthy improvement in gross profit," said Peter Burdon, chief financial officer of SelectCore. "We expect this growth to continue based on the increasing demand for our proprietary point-of-sale activation (POSA) solution."
July 9, 2008
SelectCore Signs Prepaid Gift Card Agreement with HBC
For Immediate Release: July 9, 2008
SelectCore Ltd. has entered into a three-year service agreement with HBC (Hudson's Bay Company) to provide POSA (point-of-sale activation) services to facilitate the sale of HBC prepaid gift cards at a number of third party brand name retailers across Canada.
Ryan Deslippe, president of SelectCore, stated: "Prepaid gift cards is one the fastest-growing consumer product categories in North America. We plan to aggressively expand into this market by leveraging our existing technology, infrastructure and experience as a leader in prepaid transaction processing."
Keith McKenzie, chief executive officer of SelectCore, further commented: "Having been chosen by one of Canada's largest and best-known retailers speaks to the quality our service and technology, while positioning our company to attract more major retail customers. As this industry continues to mature, SelectCore will surely experience revenue growth in this high-margin business."
June 18, 2008
SelectCore Closes $2 Million Financing Facility
For Immediate Release: June 18, 2008
Selectcore Ltd. has closed a $2-million (U.S.) debt financing facility with Valens Offshore SPV II Corp. (Laurus Funds), a New York-based institutional fund that specializes in making investments in growth-stage public companies.
The $2-million financing facility is a revolving line of credit maturing after 12 months with an option to extend the term for an additional 364-day period. As consideration for the loan extension, the company must make two payments of $57,500, the first being due on maturity and the second six months thereafter. The fixed interest rate is 11 per cent, decreased to 10 per cent after six consecutive months of positive EBITDA (earnings before interest, taxes, depreciation and amortization). The facility is secured by a first lien on all assets of Selectcore and its subsidiaries. In connection with the financing, the company issued Laurus Funds 3,809,523 common shares. Research Capital Corp. was paid a finder's fee equal to 4 per cent of the value of the financing.
"We are delighted to have partnered with Laurus Funds for this financing," said Keith McKenzie, chief executive officer of Selectcore. "This funding route is less dilutive for our shareholders and the proceeds will allow us to expedite our growth plan while greatly improving our working capital position." Ryan Deslippe, president of Selectcore, further commented, "Management views Laurus Funds as a strategic partner that can open up the door to future business opportunities."
May 13, 2008
SelectCore Announces Details of Major Customer Contract
For Immediate Release: May 13, 2008
Further to its press release dated May 12, 2008, in Stockwatch entitled SelectCore signs major customer contract, SelectCore Ltd. has provided additional information pertaining to the customer contract to provide its proprietary POSA (point-of-sale activation) technology for the sale of prepaid telecommunication products and services.
The agreement with the arm's-length party is for an initial term of five years and is automatically renewed for additional terms of one year unless either party notifies the other of their desire to terminate the agreement. Pursuant to the agreement, SelectCore has received an initial purchase order for 1,000 POS terminals along with a deposit in the amount of $300,000. All 1,000 terminals have been delivered to the customer for deployment and it is expected that an additional 2,000 terminals will be delivered over the next 12 months.
Based on current financial data from SelectCore's terminal deployments, management is of the belief that, should all 3,000 terminals be deployed over the next year, the terminals should generate a total of $25-million within the 12 months and a total of $100-million within the first 36 to 42 months. However, there can be no assurance that the customer will order any additional terminals or if they do so, that the terminals will generate the revenue that management expects.
May 12, 2008
SelectCore Signs Major Customer Contract
For Immediate Release: May 12, 2008
TORONTO, ON: SelectCore Ltd., (TSX-V: SCG) announced today that it has entered into a significant, exclusive sales agreement to provide its proprietary POSA (point of sale activation) technology for the distribution of prepaid telecommunication products and services.
This new customer relationship will accelerate the launch of the Company's POSA terminal solution into the retail channel. The contract is expected to add an additional 3,000 terminals and retail points of distribution over the next 12 months, while generating revenues in excess of $25 million over the same period. The first purchase order from this customer was for 1,000 terminals of which all 1,000 have already been delivered for deployment.
SelectCore designed this prepaid platform in house to reside on new Verifone POS terminals. The company uses the same proprietary technology today to process millions of POSA transactions for some of Canada's largest retailers and phone companies. The solution was also developed to easily integrate other products in the future to allow for new revenue streams.
Peter Burdon, CFO of SelectCore said, "We are going to almost double our original projections for terminal deployments. This contract alone is expected to generate over $100 million in sales in just the first few years." Keith McKenzie, CEO further commented, "We knew there would be strong demand for our new POSA technology. We are certainly excited to have won this major contract as it reconfirms SelectCore's strength in the marketplace."
April 30, 2008
SelectCore Reports Record Revenues of $47.7M and Highlights Key Milestones for 2007
For Immediate Release: April 30, 2008
TORONTO, ON: SelectCore Ltd., (TSX-V: SCG) one of Canada's fastest-growing companies* and a nation-wide prepaid telecommunications provider, announced today the company's audited financial results for the year ended December 31, 2007.
By way of brief overview, revenue increased 27% to a record $47,762,218 from $37,645,919 in 2006. Gross margins increased 130% over the same period last year. Net earnings were ($2,353,617) and basic and diluted earnings per share was ($0.029). Extraordinary costs were incurred in 2007 due to an acquisition, financing and reorganization of the company. The Company's Financial Statements and Management Discussion and Analysis for the year ending December 31, 2007 are available on SEDAR at www.sedar.com.
The company achieved several important milestones in 2007:
- In January, David Parkes officially joined the Company as Chairman of the Board. David is a prominent leader in the Canadian telecom industry, having led some of the industry's largest and most successful companies. He served as President & CEO of Sprint Canada where he was instrumental in steering the rapid growth of the company to billion dollar revenue levels. David was also a founding executive and President of Cantel (now Rogers Wireless), and a founding board member of Fido (Microcell).
- In March and April, SelectCore signed key distribution partnerships with Telus and Virgin Mobile.
- In June, Profit 100 magazine ranked SelectCore one of Canada's top 100 fastest-growing companies for the second consecutive year.
- In July, SelectCore commenced a marketing partnership with Easyhome Ltd., Canada's leading merchandise leasing company, to offer its customers prepaid residential telecom services under the new "easyfone" brand.
- In July, the Company completed the acquisition of Canquest Communications (a prepaid telecommunications and transaction-based technology company). This was an accretive acquisition that has allowed the Company to realize a multitude of operational efficiencies and cost savings. In addition, SelectCore has been able to leverage Canquest's technology and infrastructure to expedite its business plan including the successful deployment of our point of sale activation (POSA) solution.
- In August, after several months of development, the company began trials of its proprietary virtual distribution / point of sale activation solution using industry leader Verifone banking terminals. The solution coined "PrepaidOne" was subsequently launched into our retail distribution channel Q1, 2008.
- In October, the company completed a private placement of $3.16M at $0.20 per unit. The financing was led by Research Capital Corporation.
- In December, management implemented a reorganization plan in order to significantly reduce costs and streamline the operations. The reorganization was subsequently completed in Q1, 2008.
Keith McKenzie, CEO of SelectCore stated "2007 was a pivotal year for SelectCore. It was our first full year as publicly traded company and we closed on a very significant acquisition. The company is well positioned to continue our growth strategy and we are looking forward to a strong 2008."
March 13, 2008
SelectCore Announces Management Changes and Expense Reductions
For Immediate Release: March 13, 2008
TORONTO, ON: SelectCore Ltd. (TSX-V: SCG), one of Canada's fastest-growing companies* is pleased to announce that the Company has successfully completed the integration of operations with the recently acquired Canquest Communications. "We expect to realize significant annualized cost savings as a result of staff reductions and many operational efficiencies that have been implemented." said Peter Burdon, CFO of SelectCore". The majority of the reorganization costs will be accounted for in the fourth quarter of 2007, with the balance in the first quarter of 2008.
As part of the reorganization, the Company has accepted the resignation of its Chief Operating Officer, Robert Cikalo. The directors and management of the Company wish to thank Mr. Cikalo for the valuable contribution he has made to the growth of SelectCore during his tenure, and wish him luck in his new endeavours. Members of SelectCore's board of directors and management team have arranged to purchase essentially all of Mr. Cikalo's share holdings in a transaction which has been approved by the TSX Venture Exchange.
The Company also announces that its Chairman, David Parkes is now supporting the management team more actively. "Since joining our board, David has made significant contributions to developing our strategic direction and has provided invaluable support to our management team" said, Keith McKenzie, SelectCore's CEO. "We look forward to spending more time with David on the execution of our growth strategy". The Company has granted Mr. Parkes 500,000 options to purchase common shares of the Company at 15 cents per share for a period of 60 months...hide
Neither TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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-lookingterminology 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 prepaidfinancial industries, changes in project parameters as plans continue to berefined 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 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 thatsuch 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.