Message #39 From:
Jason Date: April 27, 2008 08:25:45 AM
Creative Vistas, Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2007
Creative Vistas, Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2007
Revenues Rises 49% in Q4 and 31% in Year, Beating Guidance; EBITDA Soars
202% for Quarter and 63% for Year
Creative Vistas, Inc. (OTCBB:CVAS), a leading provider of advanced video
security and surveillance solutions and broadband-related services,
today reported financial results for the fourth quarter and fiscal year
ended December 31, 2007.
In the fourth quarter ended December 31, 2007, revenues totaled $11.47
million, up 49% from $7.72 million in the fourth quarter of 2006. Net
loss for the quarter was ($508,700), or ($0.02) per fully diluted share,
compared to ($1.16 million), or ($0.03) per fully diluted share, in the
fourth quarter of 2006. Revenues for the fourth quarter of 2007 exceeded
guidance, announced in November 2007, for revenues ranging from $10.7
million to $11.0 million.
In the year ended December 31, 2007, revenues totaled $39.99 million, up
31.3% from $30.45 million in 2006. Net loss in 2007 was ($581,600), or
($0.02) per fully diluted share, compared to a net loss of ($5.54
million), or ($0.17) per fully diluted share, in 2006.
EBITDA Beats Guidance
EBITDA1 (earnings before interest, taxes,
depreciation and amortization) in the fourth quarter of 2007 totaled
$1.0 million, up 202% from $331,600 in the fourth quarter of 2006.
Fourth quarter 2007 EBITDA exceeded earlier guidance of $475,000 to
$575,000.
For all of 2007, EBITDA was $3.90 million, up 63% from $2.39 million in
2006. EBITDA excluding non-cash items was $4.55 million in 2007, up from
$3.07 million in 2006.
As in prior quarters, the net income and EPS results for the fourth
quarter and fiscal year 2007 have been affected substantially by
adjustments related to Creative Vistas’
capital structure. For that reason, the Company believes EBITDA provides
a useful tool, in conjunction with measures recognized under generally
accepted accounting principles (“GAAP”),
for gauging the ongoing performance of its operating units. However,
CVAS does not consider EBITDA an adequate substitute for GAAP-recognized
measures.
Sayan Navaratnam, Chairman and CEO of Creative Vistas, commented, “Today’s
2007 fourth quarter and annual results reflect the Company’s
continued success in executing a growth strategy based on growing
revenue aggressively without compromising EBITDA. In fact our growth in
revenues was complemented by a stronger growth in EBITDA. We are
particularly pleased with the performance of our proprietary business
intelligence (BI) software in contributing both to efficient operations
and to the leveraging of customer contacts for sales of products and
services in our broadband division. The past year put us in a strong
position, both operationally and financially, to begin the major
initiative of 2008, our penetration of the large U.S. cable,
telecommunications and satellite markets.”
Broadband Services Spur Revenue Growth
Revenue growth for the fourth quarter and fiscal year 2007 was driven
primarily by rising sales volume in CVAS’
broadband-related services business.
Operating Profits Rise, Financing Costs Drop
The narrowing of net losses in 2007 was due both to increased operating
profit and reduced non-operating costs, especially financing expenses.
Income from operations in the fourth quarter of 2007 was $341,500,
compared to an operating loss of ($461,500) in the fourth quarter of
2006. For all of 2007, income from operations was $1.49 million, up from
$802,300 in 2006.
In the fourth quarter of 2007, interest and amortization of deferred
charges (excluding the effect of foreign exchange) totaled $856,000, up
from $573,500 in the fourth quarter of 2006. For the full year 2007,
expenses in these categories were down sharply, to $3.14 million from
$6.34 million in 2006. CVAS recorded no expenses related to valuation of
derivative liabilities in 2007, compared to such expenses totaling
$943,500 in 2006.
Since the end of 2007, CVAS has announced the signing of service
contracts with two major U.S. cable companies, serving markets in and
around New Orleans, La., and Charlotte, N.C. It also has acquired an
approximately 10% stake in 180 Connect, Inc., an Englewood, Colo.-based
company that provides installation, integration and fulfillment services
to satellite and cable system operators in the U.S. and Canada.
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
or sayan@creativevistasinc.com.
For further information on CVAS please visit www.creativevistasinc.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., it offers
proprietary and non-proprietary technologies to the integrated
electronic security and surveillance market. Its systems are used by
numerous high-profile clients including government, school boards,
retail outlets, banks and hospitals. Through its subsidiary Cancable,
Inc., Creative Vistas provisions the deployment and servicing of
broadband technologies to the commercial and residential market.
Creative Vistas is based in Ontario, Canada.
Forward-Looking Statements: Statements about the Company's
future expectations, including future revenues and earnings, and all
other statements in this press release other than historical facts are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as the term is defined in the Private Securities Litigation
Reform Act of 1995. The Company's actual results could differ materially
from expected results for reasons described from time to time in the
Company's public filings. The Company undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events.
1 EBITDA represents, for any relevant period,
income (loss) before income taxes, depreciation of property, plant and
equipment, interest expense (including amortization of debt issuance
costs) and amortization of intangible assets.
