Creative Vistas, Inc. Expects Over 25% Increase in Revenues and Over 50% Increase in EBITDA for Second Quarter 2007, Both New Records
Thursday July 26, 9:03 am ET
WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas, Inc., (OTCBB:CVAS - News), a leading provider of advanced video security and surveillance solutions as well as broadband-related services, today announced its guidance on revenues and other financial results for the second quarter ending June 30, 2007.
The Company announced it expects second-quarter 2007 revenues to range from $8.9 million to $9.2 million, up 25% to 28%, from revenues of $7.16 million reported in the second quarter of 2006. On a sequential basis, 2007 second-quarter revenues would be up 14% to18% from revenues of $7.8 million reported in the first quarter ended March 31, 2007.
For the second quarter of 2007, the Company expects earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $650,000 (neutral of foreign exchange adjustments), up 51% from EBITDA of $430,000 (neutral of foreign exchange adjustments) in the second quarter of 2006. Excluding all non-cash expenses and neutral of foreign exchange adjustments, EBIDTA in the second quarter of 2007 is expected to reach $800,000, up 43% from $560,000 in the second quarter of 2006. As in prior quarters, the net income and EPS results are expected to be affected substantially by non-cash adjustments related to the Company's 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.
Sayan Navaratnam, Chairman and CEO of Creative Vistas, Inc., commented, "Today's guidance reflects the continued strong revenue and EBIDTA growth within the organization. We are continuously growing our business while consistently investing in strategic initiatives, including technologies, which will strengthen the long-term prospects of the Company. All of our current growth is organic and the growth in revenue is strongly complemented by a higher level of growth in EBIDTA. This is a testament to the strong management team that makes up our organization."
The Company expects to show a net loss in the second quarter of approximately ($700,000), or ($0.02) per fully diluted share, compared to net income of $690,000, or ($0.01) per fully diluted share, in the second quarter of 2006. Quarterly net income figures and comparisons for 2007 and 2006 were affected by non-cash and non-operating factors. For the second quarter of 2007, the Company expects non-cash stock compensation, amortization and depreciation and a non-cash interest payment of approximately $950,000. In the second quarter of 2006, it reported non-cash stock compensation, amortization and depreciation of $455,000 along with derivative instrument income and translation adjustment income of $1,073,000.
On a sequential basis, the expected net loss in the second quarter of 2007 is higher than the loss of ($532,000) reported for the first quarter of 2007, which was mainly due to an increase of approximately $200,000 in non-cash interest payments.
For further information on Creative Vistas please visit
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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.
Investor Relations International
Haris Tajyar, 818-382-9700
Creative Vistas, Inc.
Sayan Navaratnam, 905-666-8676