Conference Call with Investors and Analysts to be Held May 15 at 1:00 p.m. CDT (2:00 p.m. EDT)
- Revenue of $3.4 million, an 877% increase (March 31, 2018 - $352 thousand) over Q1 2018 and a 47% increase (December 31, 2018 – $2.3 million) over Q4 20181;
- Expenses over the same period increased by 1,798% ($8.3 million and $0.4 million, respectively);
- New customer wins in the first quarter of 2019, expected to add predictable recurring revenue of approximately $20 million on an annualized basis (with corresponding expenses of approximately $15 million) that are anticipated to be deployed and executed beginning in Q2, subject to the terms and conditions of such agreements;2
- Secured multi-year agreements with Canopy Growth Corporation, Liquor Control Board of Ontario and Ontario Cannabis Store for security services with a projected total aggregate revenue value of approximately $50 million (with corresponding expenses of approximately $40 million), subject to the terms and conditions of such agreements;
- Secured operational agreements with over 100 cannabis licensed producers across Canada;
- Transported over $360 million worth of product and related goods representing more than 400 secure transport runs in March 2019, the highest monthly load volume for the Company since inception; and
- Based on predictable recurring revenue, management projects an increase to over $7.5 million from Q1 to Q2 2019.
ALMONTE, Ontario, May 14, 2019 (GLOBE NEWSWIRE) -- 3 Sixty Risk Solutions Ltd. (“3 Sixty” or the “Company”) (CSE:SAFE) (SAYFF) (62P2.F) a leader in the risk management and security services sector of the burgeoning cannabis industry is pleased to provide, further to the recent announcement of the Company's first quarter financial results, a review and summary of recent events and operational milestones and objectives for 2019. Unless otherwise indicated, all references herein to dollars or "$" are to Canadian dollars.
Thomas Gerstenecker CEO and Founder of 3 Sixty stated: “In January of 2018 we had a virtual office, eight employees and two vehicles generating monthly revenue of $75,000. 3 Sixty now provides enhanced financial security solutions, cannabis security consulting, guarding and secure cannabis transport services to more than 600 customers and more than 100 cannabis licensed producers across Canada. We have accomplished a tremendous amount in a very short period of time and believe we have laid a foundation for continued growth as the growth velocity of the cannabis sector continues to increase across Canada.”
CEO Gerstenecker further notes, “It has been an extraordinarily active and exciting period for us, and the outlook is very promising. Our growth is consistent, and the sector affords great optimism as new territories and customer opportunities are appearing almost daily. We are confident that our strategy is sound and our team fully capable of executing our strategic plan. We look forward to improving and delivering across the entire spectrum of services and economic metrics for our customers, stakeholders, partners and shareholders alike as the year progresses.”
Operational Highlights: Management believes that significant opportunities have positioned the Company to obtain increased market share, achieve sustainable multi-year cash flow, become incrementally acquisitive and cement a leading role in the cannabis security sector. Further to the Company's management’s discussion and analysis for the quarter ended March 31, 2019 filed on SEDAR yesterday, the Company provides the following operational highlights.
- Achieved public listing: The Company completed its reverse takeover with Petro Vista Energy Corp. and obtained public listing of the Company's common shares on the Canadian Securities Exchange.
- Secured increased market share: 3 Sixty has secured agreements with more than 100 cannabis licensed producers in Canada.
- Major Multi-Year Agreements: Awarded significant multi-year agreements with Liquor Control Board of Ontario and Ontario Cannabis Store.
- Working with Industry leaders: Recently awarded contracts with High Park, Harvest One, and Zenabis.
- Coast to Coast Facilities: Currently providing services in all provinces for cannabis related clients with secure facilities in seven provinces.
- Regional Sector Acquisitions: Amalgamation with Total Cannabis Security Solutions ("TCSS") and the acquisition by TCSS of David Hyde and Associates allows 3 Sixty the ability to provide clients with specialized regulatory and security consulting.
- National Sector Acquisition: Recently announced the acquisition of INKAS® Security Services ("INKAS") which is expected to provide operational, regional and strategic benefits to include increased route density and enhanced customer responsiveness.
- Product Shipment Increasing Significantly: January: $100 million in product value transported with over 248 shipments. March: $360 million in product and related goods value transported with over 400 shipments.
- Significant Increase in Staffing and Employees: Grew from 8 employees in 2018 Q1 to 600 employees in 2019 Q1.
- National Trans-shipment Terminals Increases Flexibility and Customer Service Capabilities: Secured transport and storage terminals now strategically located adjacent to primary flight cargo operations in Moncton, Montreal, Ottawa, Toronto, Chatham, Winnipeg and Calgary.
- Vehicle Fleet Services Offers Increased Flexibility and Service Capabilities: Following the acquisition of INKAS, grew to 150 motor vehicles, 50% which are armoured, with a mix of sprinter vans, F550’s and 26’ secure transport vehicles.
Operational Agreements: During Q1 2019, the Company has secured a number of important multi-year commercial agreements which management believes will act as a catalyst for significant growth.
- Security Services: Providing security services to Canopy Growth Corporation (WEED.TO) (CGC) across Canada for up to three years.
- Transport Services: A multi-year agreement with the Ontario Cannabis Store to provide network-wide secure transport services.
- Guarding Services: Guarding services for the Liquor Control Board of Ontario for up to five years at stores located in their Northern, Eastern and Western Regions.
- Comprehensive Services: Secured agreement with Harvest One Cannabis Inc. (HVT.V) (HRVOF) a multi-national client, to provide secure transport, secure cannabis storage and retail deliveries across Canada.
- Overall Customer Growth in All Segments: Operational agreements (guarding and transport) with 100 License Holders and consulting service agreements to over 600 clients.
- Sector Acquisition: Recently announced acquisition of INKAS included 16 new cannabis operational agreements as well a diversified revenue mix of non-cannabis customers, some of which are leading financial institutions in Canada.
- Overall growth: Positions 3 Sixty as one of the largest national cannabis secure transport and financial security solutions operators in Canada.
Operational Objectives for 2019: With an exceptional start to 2019, 3 Sixty aims to achieve increased market share for secure transport and security services in Canada and other targeted markets.
- Canadian Markets: The Company will continue to focus on servicing the Canadian marketplace as customers continue to scale their operations.
- US Markets: 3 Sixty has an aggressive growth strategy for the United States and management expects to communicate further details around its US strategy in the weeks ahead.
- International Outlook: 3 Sixty is currently analysing international expansion opportunities in countries outside of Canada and the United States.
The Company will host a conference call today on Wednesday, May 15, 2019 at 1:00 p.m. CDT (2:00 p.m. EDT) to discuss and answer investor questions regarding first quarter results and outlook. Management invites you to listen to the conference call by using the dial-in number 1-800-954-0601.
About 3 Sixty Risk Solutions Ltd.
3 Sixty Risk Solutions Ltd., operating through its wholly-owned subsidiary, 3 Sixty Secure Corp., is Canada's leading security service provider to the cannabis sector, transporting millions of dollars of product every month. 3 Sixty now provides enhanced cash management, cannabis security consulting, guarding and secure transport security services to more than 600 customers and more than 100 cannabis licensed producers, including some of the world's largest, such as License Holders owned by Canopy Growth Corporation. 3 Sixty employs over 600 staff, operates a fleet of over 150 vehicles and is one of the 3rd largest cash management service providers in Canada. Find out more at www.3sixtysecure.com and follow us on Twitter, Instagram or Facebook.
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3 Sixty Secure Corp.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, expected annualized revenue numbers for certain key operating agreements, operational and strategic benefits related to acquisitions; expectations for brand recognition and similar statements related to the business and operations of 3 Sixty. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, but are not limited to general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release.
Forward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of 3 Sixty, which may cause 3 Sixty's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in 3 Sixty's Management's Discussion and Analysis for the three month period ended March 31, 2019 and the Company's CSE Listing Statement, each of which is available on www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, 3 Sixty assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
This news release also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about 3 Sixty's prospective results of operations including, without limitation, cash flow and various components thereof, annualized revenue and other metrics, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above and in addition are grounded on the assumption of the continued performance of the Company's long-term customers contracts and no early termination of same. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. 3 Sixty's actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits 3 Sixty will derive therefrom. The FOFI do not purport to present the Company's financial condition in accordance with IFRS, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. 3 Sixty has included the FOFI in order to provide readers with a more complete perspective on 3 Sixty's future operations and such information may not be appropriate for other purposes. 3 Sixty disclaims any intention or obligation to update or revise any FOFI statements, whether as a result of new information, future events or otherwise, except as required by law. The inclusion of the FOFI in the earnings disclosure should not be regarded as an indication that 3 Sixty considers the FOFI to be a reliable prediction of future events, and the FOFI should not be relied upon as such.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
1 In each case after giving effect to the reverse takeover transaction with Petro Vista Energy Corp. announced in January 2019, subsequent to which the majority of the Company's revenue was earned.
2 See applicable forward-looking disclaimers at the end of this press release including basic assumptions and other variable inputs.