SSC Security Services Corp. Announces FY2022 Q1 Results and Achievement of Debt-Free Status

REGINA, SK, Feb. 16, 2022 /CNW/ - SSC Security Services Corp. (formerly Input Capital Corp.) ("SSC" or the "Company) (TSXV: SECU) (OTCQX: SECUF), a leading provider of cyber and physical security services to commercial and public sector clients across Canada, is pleased to release its results for the first quarter of the 2022 fiscal year ended December 31, 2021. All figures are presented in Canadian dollars.

"It was just over a year ago that we began our pivot into the security business. Now, with 98% of our revenue from security in the last quarter, the change has gone much faster than we expected," said President & CEO Doug Emsley. "During that quarter, we rebranded and renamed the company, consolidated our shares, changed our ticker symbol, began trading more formally in the United States on the OTCQX, and were heavily involved in the negotiation of the acquisition of Avante Logixx Inc. which we announced February 9. We also increased revenue by 6.1% quarter over quarter, and today, we achieved debt-free status when we repaid in full our long-term debt.

"We look forward to completing the Avante acquisition before the summer, and continuing to make big strides toward our growth objectives and growing into our balance sheet."


  • During the quarter, we recorded revenue of $5.9 million, over 98% of which is from the security segment of our business. During the comparable period the year before, we had not yet entered into the security business, but security revenue continues to grow from one quarter to the next. Security revenue was up 6.1% from the previous reported quarter.

  • During the quarter, we converted approximately $6.5 million in assets related to our legacy business into cash, which allowed us to pay down $2.1 million in debt, pay $0.03 per share in dividends, and buy back 513,100 shares of the Company, while still increasing our overall cash position.

  • On October 8, 2021, we paid off $2.065 million in long term debt, leaving a balance outstanding of $0.475 million. Subsequent to the end of the period, we paid off our long term debt in full.

  • On October 1, 2021, the Company changed its name from Input Capital Corp. to SSC Security Services Corp. and changed its ticker symbol on the TSX Venture Exchange from "INP" to "SECU" in conjunction with a 1-for-3 share consolidation. In keeping with this change, the quarterly dividend was adjusted from $0.01 per share to $0.03 per share.

  • On November 15, 2021, the Company's shares began trading on the OTCQX in the United States, under the symbol "SECUF".

  • Adjusted EBITDA in the quarter was $50,000 ($0.00 per share) due to investments made to build our cyber security talent bench.

  • Paid a quarterly dividend of $0.03 per share, or $0.12 per share annualized.

  • We finished the quarter ended December 31 with (comparison to previous quarter):
    • Cash and cash equivalents of $31.2 million (up 8.3% from $28.8 million);
    • Loans and mortgages receivable of $8.3 million (down 34% from $12.5 million);
    • Total shareholders' equity of $73.5 million (down 3.2% from $75.9 million); and
    • Long-term debt of $0.5 million (down 81% from $2.5 million).

Key Performance Indicators for the COMPARABLE periods are summarized below: 

Key Performance Indicators (all figures in thousands of Canadian dollars)

Quarter ended

Dec 31






Cost of Sales



Gross Profit



Gross Margin (%)



Comprehensive net income (loss)



Comprehensive net income (loss) per share (basic)



Adjusted EBITDA



Adjusted EBITDA per share (basic)




Revenues for the quarter ended December 31, 2021 were $5.9 million compared with $4.3 million during the comparable quarter ended December 31, 2020, an increase of $1.6 million. The increase in revenues was due to the move into the security business in February 2021, coupled with a decline in legacy business revenue. There was no security revenue during the previous year comparable period, and only a small amount of revenue was associated with our legacy business this year. We expect legacy business revenue to be virtually immaterial going forward.

Security revenue was up 6.1% from the previous reported quarter.

During the quarter, we recorded a Comprehensive net loss of $0.5 million (loss of $0.02 per share), compared to Comprehensive net income in the previous year's comparable period of $0.7 million (gain of $0.04 per share). This is not a direct comparison because last year's figures did not include any security operations. 

Balance Sheet

Key balance sheet items are summarized below:

Statements of Financial Position (all figures in thousands of Canadian dollars)

As at

Dec 31, 2021

As at

Dec 31, 2020




Legacy contract assets



Assets held for sale



Mortgages and loans receivable



Total assets



Total liabilities



Total shareholders' equity



Common shares outstanding



Book value per share



Working capital



Long-term debt




On December 29, 2020, we announced the renewal of our Normal Course Issuer Bid (NCIB), allowing the Company to buy back up to 1,133,333 (3,400,000 shares prior to the share consolidation) of its common shares during the 2021 calendar year. During the quarter ended December 31, 2021, we bought back 513,100 shares at an average price of $2.97 per share.

We continue to believe that our shares have been trading in a price range which does not adequately reflect their value and that the purchase of shares under the NCIB will enhance shareholder value in general.


Our legacy business has become an immaterial part of our income statement, although it still occupies a significant part of our balance sheet. Our objective is to convert these assets to cash as quickly as possible, for redeployment into our growth as a security company.

All future growth will be in the security segment, in part from organic growth as SRG wins new contracts, launches new products, and via acquisition, as SSC and SRG look to acquire other companies in the Canadian cyber and physical security space.

We plan to continue to distribute capital to shareholders via the dividend, eliminate our debt while maintaining solid liquidity, and focus on maximizing Adjusted EBITDA on a per share basis.

The ongoing effects of the COVID-19 pandemic and uncertainty within international markets could impact the Company's financial performance for the year ended September 30, 2022 and, possibly, beyond. The financial impact will be dependent on the spread and duration of the pandemic and on related restrictions and government advisories. We have not seen any material impact on our security or legacy business to date, but we have seen some shifting of client demand for security services as a result of COVID. Demand is smaller in certain market segments, such as airport security services, but higher in other segments. Given the balance of uncertainties, the long-term financial impact on the Company, if any, cannot be determined with any certainty. Taken together, COVID-19 has not had a material impact on the results of our business.


On February 9, 2022, the Company announced that it had entered into a definitive agreement to acquire Avante Logixx Inc. (TSXV: XX) via Plan of Arrangement. The deal is subject to a vote of the Avante shareholders, and if successful, is expected to close during the second calendar quarter of 2022. For more information, please see the February 9 press release here:

On February 16, 2022, we completed repayment of our credit facility with Concentra Bank. The Company is now debt-free.


SSC Security Services Corp. is a leading provider of cyber and physical security services to corporate and public sector clients across Canada. For more information, please visit


Forward Looking Statements

This release includes forward-looking statements regarding SSC and its business. Such statements are based on the current expectations and views of future events of SSC's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting SSC, including risks regarding the security industry, the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of SSC. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and SSC undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

*Non-IFRS Measures

SSC measures key performance metrics established by management as being key indicators of the Company's strength, using certain non-IFRS performance measures, including:

  • EBITDA, EBITDA per share, Adjusted EBITDA, and Adjusted EBITDA per share.

The Company uses these non-IFRS measures for its own internal purposes. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and these measures may be calculated differently by other companies. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company provides these non-IFRS measures to enable investors and analysts to understand the underlying operating and financial performance of the Company in the same way as it is frequently evaluated by Management. Management will periodically assess these non-IFRS measures and the components thereof to ensure their continued use is beneficial to the evaluation of the underlying operating and financial performance of the Company.  For more detailed information, please refer to page 20 and 21 of the the Company's Management Discussion and Analysis dated February 16, 2022 available on the Company's website at and on SEDAR at

SOURCE SSC Security Services Corp.