RediShred Capital
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RediShred Capital (KUT) investor relations material

RediShred Capital has been delisted

RediShred Capital Q3 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2024 earnings summary28 Nov, 2024

Executive summary

  • Signed a definitive agreement for acquisition by VRC Companies, LLC at CAD 5 per share, expected to close in Q1 2025, pending approvals.

  • Q3 2024 revenue reached CAD 17.9 million, up 16% year-over-year, with strong organic shredding growth and contributions from acquisitions.

  • Q3 2024 saw continued growth in service revenue, especially recurring shredding services.

  • Organic growth was strong, supported by customer base expansion and price increases.

  • On July 29, 2024, acquired Confidential Shredding LLC, expanding presence in New Jersey and New York.

Financial highlights

  • Q3 2024 consolidated EBITDA was CAD 4.1 million, up 35% year-over-year.

  • Q3 2024 revenue reached CAD 17.9 million, up from CAD 15.4 million in Q3 2023.

  • Year-to-date revenue for the first nine months was CAD 53 million, up from CAD 49.1 million in 2023.

  • Year-to-date EBITDA totaled CAD 12.7 million.

  • Free cash flow for the first nine months was CAD 5.8 million, or CAD 0.32 per share.

Outlook and guidance

  • Transaction with VRC Companies, LLC expected to close in Q1 2025, after shareholder and court approvals.

  • Upon completion, the company will become privately held.

  • Expecting increased scale and route density in the New York, New Jersey market following the Confidential Shredding acquisition.

  • Anticipating a strong finish to the fourth quarter.

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Frequently asked questions

RediShred Capital Corp operates the PROSHRED brand, which provides on-site information destruction services to businesses and consumers, focusing on security and customer service. The company has expanded its services to include document imaging and electronic waste recycling, under the PRO SCAN and Secure e-Cycle brands, respectively. RediShred employs a business model that combines franchising across the United States with direct ownership of shredding trucks and facilities in nine locations. The company's operations are divided into three segments: Franchising and Licensing, Corporate Locations, and Corporate Overhead. The company is headquartered in Mississauga, Ontario and its shares are listed on the TSX.

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