SSC Security Services Corp. Reports Strong Third Quarter Results with Improved Margins, Higher Adjusted EBITDA, and Continued Share Buybacks

Executive Summary

• SSC Security Services Corp. reported its third quarter results for the period ended June 30, 2025, highlighting improved profitability, higher adjusted EBITDA, and continued share buybacks.
• The company achieved a 14% year-over-year improvement in Adjusted EBITDA, reaching $1.4 million ($0.08 per share), driven by stronger gross margins and disciplined expense management.
• Revenue grew 1.7% to $30.2 million, while the company remained debt-free with $9.6 million in cash and continued its capital return program through NCIB share buybacks and quarterly dividends.

Key Details

• Revenue: $30.2 million for Q3 2025, an increase of $0.5 million (1.7%) compared to $29.7 million in Q3 2024.
• Gross Profit: $5.3 million for Q3 2025, up from $4.7 million in Q3 2024.
• Gross Margin: Improved to 17.5% in Q3 2025, compared to 15.9% in the prior year period.
• Adjusted EBITDA: $1.4 million ($0.08 per share) for Q3 2025, up from $1.3 million ($0.07 per share) in Q3 2024, representing a 14% improvement.
• Adjusted Net Income: $0.8 million ($0.04 per share) for Q3 2025, compared to $0.7 million ($0.04 per share) in Q3 2024.
• Comprehensive Net Income: $0.0 million ($0.00 per share) for Q3 2025, unchanged from the prior year.
• NCIB Share Buybacks: Purchased 140,900 shares at an average price of $2.42 per share; all shares were cancelled.
• Dividends: Paid $0.03 per share in dividends for the quarter (36th consecutive quarterly dividend).
• Balance Sheet Highlights:
  • Cash and cash equivalents: $9.6 million ($0.53 per share).
  • Working capital: $25.4 million.
  • Total shareholders' equity: $61.8 million.
  • Long-term debt: $0.
• Year-to-Date Performance (Nine Months Ended June 30, 2025):
  • Revenue: $87.0 million (down from $91.0 million in prior year).
  • Gross Profit: $14.6 million (margin of 16.7%, up from 15.8%).
  • Adjusted EBITDA: $3.7 million.
• Outlook: Management anticipates continued growth in demand for integrated security services, potential acquisitions, and conversion of legacy assets to cash over the next year.

Notable Quotes

• "Our third quarter results came in as expected. We continue to see improved profitability from stronger margins as a result of our careful expense management... more important is strong ongoing operational management and gross margin growth within our baseline recurring monthly revenue." — Doug Emsley, Chairman and CEO
• "We continue to buy back our shares and take a disciplined approach to acquisitions. Our objective is always to protect our cash and be opportunistic in our efforts to grow the Company. We continue to be well capitalised and debt free." — Doug Emsley, Chairman and CEO