MONTREAL, QUEBEC, CANADA -- (Marketwire) -- 10/18/11 -- Garda Security Group, Canada's premier security solutions provider and a subsidiary of Garda World Security Corporation (TSX: GW), announced today the acquisition of all the operations of Aeroguard, a pre-board screening services provider. Aeroguard was selected last August by the Canadian Air Transport Security Authority (CATSA) to provide screening services for the Prairies Region, including its three largest airports: Calgary International Airport, Winnipeg James Armstrong Richardson International Airport and Edmonton International Airport.
The five-year agreement awarded to Aeroguard for the Prairies Region, effective November 1, 2011, is valued in excess of $421 million in revenues with an option to extend for up to an additional five years, bringing the contract to 2022 with a potential value of $842 million in revenues. More than 1,200 security screening officers will be employed under this contract. Combined with CATSA's previously announced award of the Central Region contract valued at $650 million in revenues to Garda on August 8, 2011, the company will now be responsible for pre-board screening services in both the Central and Prairies regions, totaling $1.07 billion in revenues over five years, with a possibility of a five-year extension, and the employment of 3,300 professionals.
"Our experience in the most important airports of Canada, including Calgary and Edmonton - the two largest in the Prairies region, gives us a unique in-depth knowledge of the operations," said Chantal Baril, Vice President, Aviation Security Solutions. "We are also delighted to welcome 1,200 skilled professionals to our team as they will contribute in our efforts to achieve, sustain and continually enhance our services levels. We are dedicated to making Canadian air travel a positive and pleasant experience for all stakeholders - government officials and agencies, airport operators, air carriers and, most importantly, the travelling public."
"After only 10 years of existence, CATSA has become a world-class organization and we are proud of our partnership with them," said Marc-Andre Aube, Senior Vice President and COO, Garda Security Solutions. "During the past six years, we have had the privilege of supporting CATSA in ensuring the best possible passenger experience and customer service. We are looking forward to continuing our enhanced relationship with CATSA and contributing to Canada's national security."
The total purchase price is $16 million, paid as follows:
-- $12 million at closing
-- Issuance of 250,000 shares of Garda World Security Corporation at $12.00
per share
-- A balance of sales of $1 million, payable in cash in 18 months
The transaction is expected to have a positive impact by Q4 of this year. Garda continues to expect a strong second half of the year. Following the completion of this transaction, combined with superior August results and the positive sales momentum of the last six months, the company is increasing its outlook for C2012 (Fiscal 2013) to an operating profit of $145 million.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS / RECONCILIATION OF NON-IFRS FINANCIAL MEASURES
Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Garda's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the company's future operating results and operating profit and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Garda believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the company, they may prove to be incorrect. The company cautions the reader that the current adverse economic conditions make forward-looking information and the underlying assumptions subject to uncertainty and that, consequently, they may not materialize, or the results may differ from the company's expectations. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Garda currently expects.
These factors include the growth management, the market competition, the cost of financing, government regulations, the collective bargaining, currency fluctuations, the credit risk, the reputational risk and the financial covenants risk, many of which are beyond the company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. This press release should be read in conjunction with the company's consolidated interim financial statements, and the notes thereto, prepared in accordance with IFRS and the MD&A of the second quarter ended July 31, 2011. Throughout this discussion, all amounts are in Canadian dollars unless otherwise indicated. Certain measures used in the discussion and analysis do not have any standardized meaning under IFRS and could be calculated differently by other companies. The Corporation believes that certain non-IFRS financial measures, when presented in conjunction with comparable IFRS financial measures, are useful to investors and other readers because the information is an appropriate measure for evaluating the Corporation's operating performance. Operating profit: Income before finance costs and income taxes before the following adjustments: 1) loss (gain) on disposal of assets; 2) depreciation and amortization; and 3) stock based compensation.
ABOUT GARDA
Garda (TSX: GW) is a global provider of security solutions, cash logistics and global risk consulting. With headquarters in Montreal, Canada, the firm's 45,000 dedicated professionals, among the most highly qualified and best-trained in the industry, serve clients in countries throughout North America, Europe, Latin America, Africa, Asia, and the Middle East. Garda works with clients in a broad range of sectors and industries including financial institutions, retailers, manufacturers, insurance companies, governments, humanitarian relief organizations and the natural resources, construction and telecommunications. The company's decentralized management philosophy and structure encourages employees to be entrepreneurial and performance-driven in their approach to client service and the pursuit of excellence in all they do. Garda's global experts take the time to fully understand their clients' business goals and objectives in order to customize solutions with strong local engagement that meet their needs. As a result, clients can improve operational performance, meet their business obligations, and achieve their corporate objectives. With proven experience and a commitment to ensuring the highest ethical standards in everything the Corporation does, Garda has earned a reputation for integrity, leadership and uncompromising safety standards. Most importantly, businesses, governments, and individual clients place their trust in Garda. For more information, visit: www.gardasecurity.com, www.gardacashlogistics.com, www.garda-world.com and www.gardaglobal.com.
Contacts:
Nathalie de Champlain
Vice President Communications
561 939 7000 x 401118
ndechamplain@gardaglobal.com
Joe Gavaghan
Director, Corporate Communications
302 294 2162 x 400162
joe.gavaghan@gardaglobal.com
