Redishred Capital Corp. Provides Additional Update on The Previously Announced Acquisition of American Security Shredding Corp.
MISSISSAUGA, ON / ACCESSWIRE / December 3, 2021 /Redishred Capital Corp. ("Redishred" or "Company") (TSXV:KUT) previously announced this morning the completion of the acquisition of American Security Shredding Corp. ("American Shredding") effective December 1, 2021. As previously announced, American Shredding offers paper and hard drive shredding, product destruction, and electronic waste recycling services. American Shredding serves primarily the New York and New Jersey markets, and earned approximately $4.1M USD in revenue during fiscal 2020 and has a current run rate of $4.6M USD in revenue for 2021.
The Company also wants to highlight the pro forma EBITDA margin (See "Cautionary Note Regarding Non-IFRS measures") of American Shredding for 2021 which is estimated to be in the range of thirty-two to thirty-five percent. Consolidated EBITDA margin of Redishred for the three and nine months ended September 30, 2021 was twenty-nine percent, as previously announced by the Company.
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 documentdestruction and recyclingindustry and has the ISO 9001:2015 certification. It is PROSHRED®'s visionto be the ‘system of choice' and provide shreddingand recycling services on a global basis. PROSHRED® currently services over 40 marketsin the United States. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States and by way of license arrangement in the Middle East. Redishred Capital Corp. also operates fourteen corporate shredding businesses directly. The Company'splan is to grow its business by way of both franchising and the acquisition and operation of document destruction businesses that generate stableand 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
Phone: (416) 849-3469Fax: (905) 812-9448
Redishred CapitalCorp. (TSX.V - KUT) Kasia Pawluk, CA, CPA
Phone: (416) 204-0076 Fax: (905) 812-9448
Note: The TSX VentureExchange has neither approvednor disapproved of the information contained herein.
Caution Regarding Forward Looking Information
This news releasecontains forward lookingstatements that reflectthe current expectations of management of Redishred and Redishred's futureresults, 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. Forwardlooking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2020 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 forwardlooking 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, certainstatements in this document discussRedishred's anticipated outlookof future events.These statements include,but are not limited to:
- Pro-forma EBITDA margins, which may be impactedby industry growthlevels, the demand for services, changes in localand federal regulations, the economic situationin 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 marginis defined as the percentage of revenue that has turned into EBITDA.
Pro forma EBITDAis 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 marginis defined as the percentage of revenue that has turned into Pro forma EBITDA.
SOURCE:Redishred Capital Corp.
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