Redishred Capital Corp. Announces the Acquisition of Security Shredding in New Jersey
MISSISSAUGA, ON / ACCESSWIRE / September 5, 2023 / Redishred Capital Corp ("Redishred" or the "Company") (TSXV:KUT) announces the completion of the acquisition of Security Shredding effective August 31, 2023. Security Shredding offers paper and hard drive shredding, product destruction, and paper recycling services. Security Shredding earned approximately $660,000 USD in revenue during fiscal 2022.
The Company also wants to highlight the pro forma EBITDA margin (See "Cautionary Note Regarding Non-IFRS measures") of Security Shredding which is estimated to be in the range of 40% to 45% 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.
The acquisition includes on-site paper and hard drive shredding trucks, containers, client relationships, and other assets used in the shredding and paper recycling business.
Jeffrey Hasham, Redishred's Chief Executive Officer, noted, "The acquisition of Security Shredding allows us to further solidify our position in the New Jersey area, and achieve routing synergies, with the significant overlap of Security Shredding's routes with our existing New Jersey location. We also want to thank John O'Hagan for the business he has developed and his long-standing care for his customers, and we look forward to continuing this service and care."
About Redishred
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 industryand has the ISO 9001:2015certification. It is PROSHRED®'s vision to 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. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States. Redishred Capital Corp. also operates fifteen corporate shreddingbusinesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of document destruction businesses that generates stable and recurring cash flow througha scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.
FOR FURTHER INFORMATION PLEASE CONTACT:
Redishred Capital Corp. (TSX.V- KUT)
Jeffrey Hasham, MBA, CA, CPA
Chief Executive Officer
Jeffrey.hasham@redishred.com
www.redishred.com
Phone: (416) 849-3469 Fax: (905) 812-9448
or,
Redishred CapitalCorp. (TSX.V - KUT)
Harjit Brar, CA, CPA
Chief Financial Officer
harjit.brar@redishred.com
www.redishred.com
Phone: (437) 328-6639 Fax: (905) 812-9448
Note: The TSX Venture Exchangehas neither approved nor disapproved of the information contained herein.
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 2022 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:
An increase to Redishred's cash flow and earnings per share, which may be impacted by the level of costs, industry growth levels, the demand for recycled paper products, changes in local and federal regulations, and 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, and the demand for services.
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, the economic situation in the United States 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-International Financial Reporting Standards ("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, for the twelve months ended with respect to the fiscal period being referenced, 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 has turned into Pro forma EBITDA.
SOURCE: Redishred Capital Corp.
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