Press Release
Creative Vistas, Inc. Announces Record First Quarter
Results for 2007
Tuesday May 15, 11:00 am ET
Revenues Top Guidance at $7.8 Million, up
20% Year-Over-Year; EBITDA Doubles to $567,000
WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas,
Inc., (OTCBB:CVAS - News), a leading provider of advanced
video security and surveillance products as well as
broadband-related services, today reported financial
results for the first quarter ended March 31, 2007.
Revenues for the first quarter of 2007 totaled $7.8
million, up 20% from $6.5 million in the first quarter
of 2006 and exceeding the Company's most recent guidance
of $7.4 million. Net loss for the first quarter of 2007
was ($532,100), or ($0.02) per fully diluted share,
compared to net loss of ($7,298,100), or ($0.23) per
fully diluted share, in the first quarter of 2006.
Quarterly net income figures and comparisons for 2007
and 2006 were affected by non-cash and non-operating
factors. For the first quarter of 2007, the Company
reported non-cash stock compensation of $114,400, amortization
and depreciation of $495,300 and a non-cash interest
payment of $39,500. In the first quarter of 2006, it
reported non-cash stock compensation of $148,000, amortization
and depreciation of $323,700, derivative instrument
expenses of $3,561,500 and non-cash payment interest
of $1,913,000.
EBITDA(1) Trend Points to Profit Growth
The Company believes that EBITDA is an important measure
of operating performance. It eliminates items that have
less bearing on the Company's operating performance
and thus highlights trends in its core business that
may not otherwise be apparent when relying solely on
GAAP financial measures. Including the addition of the
depreciation of the capital assets in the amount of
$345,300 and amortization of intangible assets in the
amount of $150,000, EBITDA for the first quarter of
2007 was $567,700, up 102% from EBITDA of $280,700 in
2006, which also includes the addition of depreciation
of the capital assets in the amount of $323,700. For
the first quarter of 2007, operating income was $72,400,
compared with an operating loss of ($43,000) for the
year-ago quarter.
Included in the EBITDA for the first quarter of 2007
was non-cash stock compensation in the amount of $114,400
compared to $148,000 for fiscal 2006. The EBITDA excluding
non-cash compensation amounted to $682,100 for the first
quarter of 2007.
On the Company's balance sheet, cash and equivalents
totaled $2,417,000 as of March 31, 2007, from $2,683,000
a year earlier.
Sayan Navaratnam, Chairman and CEO of Creative Vistas,
said, "This is a strong start to 2007 both operationally
and financially. We are well on track to deliver another
year of strong growth in both revenues and operating
profits. We believe that this is a year where financial
performance alongside strategic investments and initiatives
are needed in order to maintain our growth and improve
shareholder value in the long-term. We plan to continue
to invest in key strategic areas including research
and development to further our organization. Our first
quarter results, including 20% year-over-year growth
in revenues and doubling of EBITDA, are strong indicators
of the Company's capability and commitment to executing
our growth plans."
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
or info@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 integrated electronic
security and surveillance solutions. 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 also
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.
Creative Vistas, Inc.
Condensed Consolidated Balance Sheet (Unaudited) March 31, 2007
----------------------------------------------------------------------
Assets
Current Assets
Cash and bank balances $2,416,984
Accounts receivable, net of allowance for doubtful
accounts $203,742 4,581,677
Income tax recoverable 354,399
Inventory and supplies 715,215
Prepaid expenses 338,662
Due from related parties 2,222
----------------------------------------------------------------------
Total current assets 8,409,159
----------------------------------------------------------------------
Property plant and equipment, net of depreciation 4,690,262
Goodwill 2,893,845
Intangible assets 1,450,000
Restricted cash 279,445
Deferred financing costs, net 606,731
Deferred income taxes 35,921
----------------------------------------------------------------------
$18,365,363
----------------------------------------------------------------------
Liabilities and Shareholders' (Deficit)
Current Liabilities
Accounts payable and accrued liabilities $4,364,014
Current portion of obligation under capital leases 853,046
Deferred income 106,056
Deferred income taxes 25,858
Current portion of term notes 2,730,708
Due to related parties 2,610
----------------------------------------------------------------------
Total current liabilities 8,082,292
----------------------------------------------------------------------
Term notes 13,885,603
Notes payable to related parties 1,500,000
Obligation under capital lease 2,517,791
Due to related parties 200,756
----------------------------------------------------------------------
26,186,442
----------------------------------------------------------------------
Shareholders' (deficit)
Share capital
Authorized
50,000,000 no par value preferred shares
undesignated
100,000,000 no par value common shares
33,511,858 issued and outstanding -
Common stock 778,315
Additional paid-in capital 3,958,989
Accumulated other comprehensive losses (162,424)
Accumulated (deficit) (12,395,959)
----------------------------------------------------------------------
(7,821,079)
----------------------------------------------------------------------
$18,365,363
----------------------------------------------------------------------
Creative Vistas, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
----------------------------------------------------------------------
March 31
----------------------------------------------------------------------
2007 2006
----------------------------------------------------------------------
Contract and service revenue
Contract $1,327,247 $1,600,963
Service 6,453,929 4,845,979
Others 12,444 9,615
----------------------------------------------------------------------
7,793,620 6,456,557
----------------------------------------------------------------------
Cost of sales
Contract 921,996 966,696
Service 4,609,700 3,217,795
----------------------------------------------------------------------
5,531,696 4,184,491
----------------------------------------------------------------------
Gross margin 2,261,924 2,272,066
----------------------------------------------------------------------
Operating expense
Project 281,666 402,413
Selling 175,844 138,289
General and administrative 1,617,637 1,626,530
General and administrative - Non-cash stock
compensation 114,401 147,950
----------------------------------------------------------------------
2,189,548 2,315,182
----------------------------------------------------------------------
Income (Loss) from operations 72,376 (43,116)
----------------------------------------------------------------------
Interest and other expenses
----------------------------------------------------------------------
Net financing expenses 559,198 3,049,785
Amortization of deferred charges 45,276 643,689
Derivative instruments - 3,561,544
----------------------------------------------------------------------
604,474 7,255,018
----------------------------------------------------------------------
(Loss) before income taxes (532,098) (7,298,134)
Income taxes - -
----------------------------------------------------------------------
Net (loss) (532,098) (7,298,134)
----------------------------------------------------------------------
Other comprehensive income (loss):
Foreign currency translation adjustment (44,688) 15,704
----------------------------------------------------------------------
Comprehensive (loss) $(576,786)$(7,282,430)
----------------------------------------------------------------------
Basic weighted-average shares 33,382,608 32,210,327
----------------------------------------------------------------------
Diluted weighted-average shares 33,382,608 32,210,327
----------------------------------------------------------------------
Basic earnings (loss) per share $(0.02) $(0.23)
Diluted earnings (loss) per share $(0.02) $(0.23)
----------------------------------------------------------------------
Contact:
Investor Relations International
Haris Tajyar, 818-382-9700
htajyar@irintl.com
OR
Creative Vistas, Inc.
Sayan Navaratnam, 905-666-8676
sayan@creativevistasinc.com
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