MONTREAL, Feb. 22, 2019 /PRNewswire/ - Garda World Security Corporation ("GardaWorld"), the leading privately-owned business solutions and security services company in the world, recorded its best year ever driven by the vigorous US economy, continued organic growth in Canada and major contract wins in the Middle East and Africa, all of which were backed by efficient operations. GardaWorld, led by its entrepreneurial leadership team, successfully executed on its growth strategy resulting in the strongest fourth quarter in its history with revenues between Cdn$795M and Cdn$805M and adjusted EBITDA between Cdn$95M and Cdn$100M for the fourth quarter ended on January 31, 2019.
Cash Services North America
The GardaWorld Cash Services division continued to perform well with significant new wins in the fourth quarter 2019 along with a positive outcome of its pricing initiatives. This will propel significant growth and margin expansion in fiscal year 2020 for the division:
- Organic growth of ~4% in the fourth quarter 2019 in the US
- Organic growth of ~8% in Canada for the same period
- New contract with leading US retailer for more than 1,000 smart safes
- New wins in Cash Vault Services with financial clients in Canada and the US, including new geographical market presence in the US
- Significant sales to the cannabis industry in Canada
- Successful launch of cryptocurrency cold storage services
The Cash Services operations also developed new efficiency initiatives throughout the year. In the US, night service was successfully piloted with three leading financial institutions. This service was first pioneered in Canada 15 years ago, allowing for a more secured and efficient environment for the service. Accelerated roll-out of this service is planned in fiscal year 2020 and is expected to promote margin expansion through increased productivity and better asset utilization.
Security Services North America
In the fourth quarter 2019, the core security services business continued to experience double-digit growth:
- Canada and US growth for the fourth quarter of ~12% and ~28%, respectively, fueled by significant contract wins
- Successful price increase initiatives offset mandatory payroll increases
- Strong recruiting practices to support growth
- Solid sales pipeline entering fiscal year 2020
- Solid M&A pipeline for tuck-in acquisitions to expand the footprint
Middle East and Africa Security Services
The proven leadership of the Middle East and Africa Security Services business in the market was once again demonstrated in the fourth quarter 2019:
- Over Cdn$300M in new contracts awarded with diplomatic clients over the next four years
- Two contract wins with humanitarian organizations amounting to ~Cdn$50M over the next three years
- Three new contracts with oil & gas/infrastructure clients amounting to ~Cdn$50M over the next three years
- Solid sales pipeline to drive growth in fiscal year 2020 and beyond
"These are exciting times at GardaWorld with all of our businesses performing well. Significant contract wins, coupled with a strong focus on operational efficiencies, position GardaWorld well for strong organic growth in fiscal year 2020," said Patrick Prince, Senior Vice President and Chief Financial Officer. "Combined with a selective value creating and deleveraging tuck-in acquisition strategy, we are bringing the best out of our leadership team, one that embraces a true culture of ownership and value creation," he added.
The financial data presented above are preliminary, based upon GardaWorld's estimates and are subject to revision based upon the GardaWorld's financial closing procedures and the completion of its financial statements. GardaWorld's actual results may be materially different from its estimates. In addition, these estimated results are not necessarily indicative of the GardaWorld's results for the full fiscal year or any future period. The preliminary financial data set forth above have been prepared by, and are the responsibility of, management. GardaWorld and its management believe that the preliminary financial data have been prepared on a reasonable basis, reflecting their best estimates and judgments.
GardaWorld is the world's largest privately-owned security services company, offering cash services, physical and specialized security solutions and, with the Crisis24 portal, the dissemination of vetted information related to international security. A partner of choice for private companies, governments, humanitarian organizations, and multinationals with personnel all over the world, GardaWorld employs more than 72,000 highly skilled, dedicated professionals who serve a diverse clientele in North America, Africa, Asia and the Middle East. In the complex world we live in, our reputation is based on the quality of our services, as well as the commitment and integrity of our people. For more information, visit www.garda.com.
Forward Looking Statements and Non-IFRS Financial Measures
EBITDA and Adjusted EBITDA are not measures calculated in accordance with IFRS, EBITDA and Adjusted EBITDA are measures commonly used by financial analysts in evaluating a company's performance and/or ability to service and/or incur indebtedness.
Information provided and statements contained in this press release that are not purely historical are forward-looking statements within the meaning of the applicable securities laws. Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to GardaWorld's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GardaWorld's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GardaWorld believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to GardaWorld, they may prove to be incorrect. GardaWorld cautions the reader that the current economic conditions make forward-looking information and the underlying assumptions subject to greater uncertainty and that, consequently, they may not materialize, or the results may significantly differ from the GardaWorld's expectations. It is impossible for GardaWorld to predict with certainty the impact that the current economic may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what GardaWorld currently expects. Some of the factors contributing to those uncertainties are fluctuations in quarterly and annual results and the ability of the Company to reduce its debt leverage in the current credit environment. Other contributing factors are growth management, market competition, cost of financing, key personnel, government regulations, standard customer service contracts, insurance, strikes and other labor protest, information technology system, operations outside Canada and the United States, currency fluctuations, credit risk, reputational risk and financial covenants risk. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. GardaWorld will not update these statements unless applicable securities laws require GardaWorld to do so. The reader should also take knowledge of GardaWorld's Interim MD&A and unaudited consolidated financial statements for the third quarter ended October 31, 2018
SOURCE Garda World Security Corporation