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Creative Vistas, Inc. Reports 34% Rise in Record Revenues, Doubling of EBITDA in Second Quarter
Wednesday August 15, 9:03 am ET
Results Exceed Guidance; Revenues for Quarter and Year to Date Represent Record in Company History;
Company Expects Annual Growth of 20%-30% in Revenues and 40%-50% in EBITDA
WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas, Inc., (OTCBB:CVAS - News), a leading provider of integrated advanced video security and surveillance solutions as well as broadband-related services, today reported record financial results for the second quarter and six month period ending June 30, 2007.
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Revenues for the second quarter of 2007 totaled $9.58 million, up 34% from $7.16 million in the second quarter of 2006. Net income was $191,700, or $0.01 per fully diluted share, compared to $690,255, or ($0.01) per fully diluted share, in the year-earlier quarter. Net income in 2006 was impacted by non-cash gains of $1,080,000.
Earnings before income taxes, depreciation and amortization (EBITDA(1)) were $974,800 in the second quarter of 2007, up 127% from $430,000 in the second quarter of 2006. EBITDA, excluding non-cash expenses for the second quarter of 2007, was $1,146,100, up 103% from $565,900 in the second quarter of 2006.
Revenue and EBITDA both exceeded earlier guidance by significant margins. Revenue for the second quarter of 2007 had been projected to total between $8.9 million and $9.2 million. EBITDA had been projected to reach $650,000.
CEO Sees Stronger Growth Going Forward
Sayan Navaratnam, Chairman and CEO of Creative Vistas, commented, "The company's second quarter results have exceeded our expectations and demonstrate the strength of demand for Creative Vistas' products and services in all of its business units. Meanwhile, the sharp rise in EBITDA shows that the company is solidly profitable at an operating level and increasingly able to fund future growth through organic growth and cash flows. This solid financial performance comes as Creative Vistas is still in the early phases of executing its primary growth strategy, that of integrating its technology, video security systems and broadband-related services in both commercial and residential markets. I believe the success of the latest quarter is the foundation towards a brighter future for the company," concluded Mr. Navaratnam.
As in prior quarters, the net income and EPS results are affected substantially by non-cash adjustments related to Creative Vistas' capital structure. These include quarterly revaluations of the Company's warrant liabilities, which change in value inversely to the price of its stock. For that reason, the Company believes EBITDA provides a useful tool, in conjunction with GAAP reporting, for gauging the ongoing performance of its operating units.
For the six months ended June 30, 2007, revenues totaled $17.37 million, up 28% from $13.61 million in the first six months of 2006. Net loss was ($340,372), or ($0.01) per fully diluted share, compared to a net loss of ($6.6 million), or ($0.21) per fully diluted share, in the first six months of 2006. EBITDA in the first six months of 2007 was $1,523,500, compared to EBITDA of $812,800 in the first six months of 2006. Excluding non-cash expenses, EBITDA for the first six months of 2007 was $1,809,200, up 65% from EBIDTA of $1,099,000 in the first six months of 2006. Revenues for the second quarter and six months ended June 30, 2007 were positively impacted by approximately 3.5% and 1.0% due to currency fluctuations.
On an operating basis, earnings in the second quarter of 2007 were $419,200, up 156% from $163,800 in the second quarter of 2006. Operating earnings for the first six months of 2007 were $472,600, up 110% from $225,100 in the first half of 2006.
Creative Vistas Provides Positive Annual Guidance
The Company also provided future annual guidance for both revenues and EBITDA. Based on today's guidance, revenues are expected to grow by 20%-30% with EBITDA increases of between 40%-50%.
For further information on Creative Vistas please visit www.creativevistasinc.com. If you would like to be added to Creative Vistas' investor email lists or have additional questions, please contact Haris Tajyar with Investor Relations International at htajyar@irintl.com.
About Creative Vistas
Creative Vistas Inc. is a leading provider of security-related technologies and systems. It also provisions the deployment of broadband services. Operating through its wholly-owned subsidiaries AC Technical Systems Ltd. and Iview Digital Video Solutions Inc
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