Message #31 From:
Stock News Bot Date: November 14, 2006 08:30:00 AM
CVAS News Creative Vistas Inc. Reports Record Third-Quarter Revenues of $9 million, EBITDA of $1 Million, Year to-date Revenues of $22.7 Million
WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas, Inc., (OTCBB:CVAS),
a leading provider of advanced security and surveillance products as
well as broadband-related services, today reported financial results for
the third quarter ended September 30, 2006. Highlights of the report
include:
Revenues increase 27% on sequential basis to more than $9 million.
Operating income and EBITDA rises to $1.0 Million
Basic EPS rises to $0.07, up from year-earlier loss of ($0.02).
Revenues for the third quarter of 2006 totaled $9.12 million, up 388%
from $1.87 million in the third quarter of 2005. The year-over-year
increase was due to sales added by the acquisition of Creative Vistas’
broadband services unit, Cancable Inc., in January 2006. On a sequential
basis revenues were 27% above the $7.16 million reported for the second
quarter ended June 30, 2006.
Net income for the third quarter ended September 30, 2006 was $2.22
million, or $0.01 per fully diluted share, compared to a net loss of
($661,685), or ($0.02) per fully diluted share, in the third quarter of
2005.
For the nine months ended September 30, 2006, revenues totaled $22.73
million, up 225% from $7.00 million in the first nine months of 2005. As
with third quarter results, the increase in revenue was due to increased
sales from the acquisition of Cancable. Net loss for the first nine
months of 2006 totaled ($4.38 million), or ($0.14) per fully diluted
share, compared to net income of $554,756, or $0.02 per fully diluted
share, in the same period a year earlier.
Revenues for both the third quarter and first nine months of 2006
exceeded earlier guidance of $8.5 million and $22 million, respectively,
as announced on October 26, 2006.
Net income and EPS in the third quarter and first nine months reflected
the impact of volatile non-operating factors, particularly the
revaluation of liabilities from derivative instruments tied to the
current stock price. Derivative liabilities rise and fall with the price
of Creative Vistas’ common shares.
EBITDA Reaches $1 Million Milestone
EBITDA in the third quarter of 2006 -- equal in this quarter to earnings
before taxes, interest, depreciation and amortization (EBITDA) -- was
$1.16 million, up from a negative EBITDA of ($288,103) in the third
quarter of 2005. On a sequential basis, EBITDA was up 58.4% from
$734,281 in the second quarter ended June 30, 2006. For the first nine
months of 2006, operating income was $1.38 million and EBITDA was $2.18
million, compared to an operating loss of ($1.06 million) and negative
EBITDA of ($1.02 million) in the first nine months of 2005.
CEO Notes New Orders, Pricing Power
Sayan Navaratnam, Chairman and CEO of Creative Vistas, said, “Our
third quarter results are notable both for strong profit performance, at
the net and operating levels, and for robust sequential growth in all
three of the company’s divisions. In the video
surveillance systems area, our AC Technical Systems unit saw growth of
7% from the prior quarter. Cancable sales increased 33%, and sales at
Iview DVSI, our technology division which sells video surveillance
technology, rose 454% (to $101,327) and is starting to make a
significant contribution in strategic customer wins. Our results have
been helped by new orders, which are continuing in the fourth quarter,
and by pricing power. At AC Technical, for instance, we have increased
our service rates by 20%, in line with the competition.”
On the balance sheet, Creative Vistas reported cash and cash equivalents
of $2.82 million on September 30, 2006. Current assets of $9.66 million
while current liabilities stood at $8.20 million. Additional liabilities
totaled $18.96 million, including $15.11 million in term notes.
Since the end of the third quarter, Creative Vistas has announced $1.8
million in new orders for security and surveillance projects at its AC
Technical division. Clients include government ministries, health care,
property management and retail businesses.
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., 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., the Company 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.
