SSC Security Services (SECU) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $29.7 million, up 12.1% year-over-year, driven entirely by organic growth.

• Adjusted EBITDA per share for Q3 2024 was $0.06, compared to $0.05 in Q3 2023.

• Comprehensive net profit for the nine months ended June 30, 2024 was $0.7 million ($0.04 per share), up from $0.2 million ($0.01 per share) year-over-year.

• The company remains debt-free, with a strong cash and near-cash position totaling $27.1 million as of June 30, 2024.

• Management, directors, and employees collectively own about 37.3% of outstanding shares.

Financial highlights

• Q3 2024 revenue: $29.7 million (Q3 2023: $26.5 million); YTD revenue: $91.0 million (YTD 2023: $79.7 million).

• Q3 2024 gross profit: $4.3 million (Q3 2023: $4.0 million); YTD gross profit: $13.1 million (YTD 2023: $12.2 million).

• Gross margin for Q3 2024 was 14.5% (Q3 2023: 15.1%).

• Adjusted EBITDA for Q3 2024: $1.3 million ($0.06 per share); YTD: $3.8 million ($0.19 per share).

• Cash at June 30, 2024: $12.4 million; working capital: $28.3 million; no long-term debt.

Outlook and guidance

• Expect continued growth in demand for security services and further contract wins due to national presence.

• Additional growth may come from acquisitions, with a disciplined approach to metrics.

• Legacy business assets expected to convert to cash within the next year, supporting security business expansion.

• Plan to maintain minimal to no debt, continue dividend payments, and focus on maximizing Adjusted EBITDA per share.