Security provider Garda World establishes record Q1 profit
May 25, 2012, Montreal - Garda World Security Corp. on Friday reported what the company called its best ever first-quarter results with earnings that easily beat analyst expectations.
May 25, 2012 By The Canadian Press
The Montreal-based security firm said net profit in the three months ended April 30 was $6.3 million, up 39 per cent from $4.5 million in the same year-earlier period.
The earnings amounted to 20 cents per share for the most recent period.
Revenue totalled $320.5 million, up from $286 million.
Two analysts polled by Thomson Reuters had expected earnings of 16 cents per share on $302 million of revenue.
"This is our best first quarter ever and a great start to the year,'' president and CEO Stephan Cretier said in a release.
"We expect to improve on that performance quarter after quarter as growth continues across all our platforms.''
Garda's revenues had been expected to benefit from the acquisition of the Aeroguard airport screening contract.
Garda provides passenger screeners at 27 Canadian airports, including at Toronto Pearson International Airport, and security at Alberta's oilsands.
Improved sales from its existing operations were also expected to translate into improved profitability, said Vincent Perri of Laurentian Bank Securities.
Still, he said Garda faces a challenging operating environment, particularly within the U.S. cash logistics segment, along with high debt.
The company has 45,000 employees and provides security, cash logistics and global risk consulting to clients in North America, Europe, Latin America, Africa, Asia and the Middle East.
It also offers protection services for embassies and oil and gas employees in dangerous areas like the Middle East.