MISSISSAUGA, ON / ACCESSWIRE / June 3, 2022 / Redishred Capital Corp. (“Redishred” or the “Company”) (TSXV:KUT) has completed the acquisition of SDD’s assets and clients located in New Jersey and Fort Lauderdale, Florida. Redishred anticipates an increase in its annualized revenue of over U.S. $1.5 million dollars per annum, with pro-forma EBITDA margin (See “Cautionary Note Regarding Non-IFRS measures”) in the range of 29% to 31%, and views this acquisition as accretive to the Company’s cash flows and earnings per share. The acquisition was financed by utilizing Redishred’s cash reserves.
Mr. Jeffrey Hasham, CEO of Redishred had the following comments on the acquisition: “SDD has been a strong provider of on-site shredding services in its markets for decades. Our goal is to ensure our new clients from this acquisition are serviced to the same high standard they have come to expect.”
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Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States and Internationally. PROSHRED® shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001 certification. It is PROSHRED®’s visionto be the ‘system of choice’ and provide shredding and recycling services on a global basis. PROSHRED® currently services over 40 markets in the United States.
FOR FURTHER INFORMATION PLEASE CONTACT:
Redishred Capital Corp. (TSX.V- KUT) Jeffrey Hasham, MBA, CA, CPA
Chief Executive Officer [email protected]
www.redishred.com
Phone: (416) 849-3469 Fax: (905) 812-9448
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or,
Redishred Capital Corp. (TSX.V- KUT) Harjit Brar, CA, CPA
Senior Vice President and Chief Financial Officer [email protected]
www.redishred.com
Phone: (416) 204-0076 Fax: (905) 812-9448
Note: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
Caution Regarding Forward Looking Information
This news release contains forward looking statements that reflect the current expectations of management of Redishred and Redishred’s future results, performance, achievements, prospects and opportunities. Wherever possible, words such as “may”, “will”, “estimate”, “believe”, “expect”, “intend” and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Redishred. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2021 management discussion and analysis under “Risk Factors”, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements.
These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Redishred will prove to be correct.
In particular, certain statements in this document discuss Redishred’s anticipated outlook of future events. These statements include, but are not limited to:
(i) Pro-forma EBITDA margins, which may be impacted by industry growth levels, the demand for services, changes in local and federal regulations, the economic situation in the United States, and the realization of synergies, which may be impacted by the successful integration of operations, procedures, and personnel.
Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.
Cautionary Note Regarding Non-IFRS Measures
This press release makes reference to certain Non-IFRS measures that do not have a standardized meaning under IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies. The Company includes these measures as a means of measuring financial performance. More specifically, the Company makes reference to the following Non-IFRS measures:
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA margin is defined as the percentage of revenue that has turned into EBITDA.
Pro forma EBITDA is defined as EBITDA, for the referenced company, adjusted for the anticipated cost savings and other synergies that the Company anticipates as a result of the acquisition of the referenced company, as if the Company had acquired the referenced company at the beginning of the fiscal period.
Pro forma EBITDA margin is defined as the percentage of revenue that is turned into Pro forma EBITDA.
SOURCE: Redishred Capital Corp.
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