EX-99.1 2 v110032_ex99-1.htm Unassociated Document


FOR FURTHER INFORMATION:

AT INVESTOR RELATIONS INTL:
AT CREATIVE VISTAS:
   
Haris Tajyar
Sayan Navaratnam
Managing Partner
Chairman and CEO
Ph: 818-382-9702
Ph: 905-666-8676
htajyar@irintl.com
sayan@creativevistasinc.com


FOR IMMEDIATE RELEASE
April 1, 2008


Creative Vistas, Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2007

Revenues Rises 49% in Q4 and 31% in Year, Beating Guidance; EBITDA Soars 202% for Quarter and 63% for Year
 
WHITBY, Ontario—April 1, 2008—Creative Vistas, Inc. (OTCBB:CVAS), a leading provider of advanced video security and surveillance solutions and broadband-related services, today reported financial results for the fourth quarter and fiscal year ended December 31, 2007.

In the fourth quarter ended December 31, 2007, revenues totaled $11.47 million, up 49% from $7.72 million in the fourth quarter of 2006. Net loss for the quarter was ($508,700), or ($0.02) per fully diluted share, compared to ($1.16 million), or ($0.03) per fully diluted share, in the fourth quarter of 2006. Revenues for the fourth quarter of 2007 exceeded guidance, announced in November 2007, for revenues ranging from $10.7 million to $11.0 million.

In the year ended December 31, 2007, revenues totaled $39.99 million, up 31.3% from $30.45 million in 2006. Net loss in 2007 was ($581,600), or ($0.02) per fully diluted share, compared to a net loss of ($5.54 million), or ($0.17) per fully diluted share, in 2006.

EBITDA Beats Guidance

EBITDA1 (earnings before interest, taxes, depreciation and amortization) in the fourth quarter of 2007 totaled $1.0 million, up 202% from $331,600 in the fourth quarter of 2006. Fourth quarter 2007 EBITDA exceeded earlier guidance of $475,000 to $575,000.
 
 
 

 
 
For all of 2007, EBITDA was $3.90 million, up 63% from $2.39 million in 2006. EBITDA excluding non-cash items was $4.55 million in 2007, up from $3.07 million in 2006.
 
As in prior quarters, the net income and EPS results for the fourth quarter and fiscal year 2007 have been affected substantially by adjustments related to Creative Vistas’ capital structure. For that reason, the Company believes EBITDA provides a useful tool, in conjunction with measures recognized under generally accepted accounting principles (“GAAP”), for gauging the ongoing performance of its operating units. However, CVAS does not consider EBITDA an adequate substitute for GAAP-recognized measures.

Sayan Navaratnam, Chairman and CEO of Creative Vistas, commented, “Today’s 2007 fourth quarter and annual results reflect the Company’s continued success in executing a growth strategy based on growing revenue aggressively without compromising EBIDTA. In fact our growth in revenues was complemented by a stronger growth in EBIDTA. We are particularly pleased with the performance of our proprietary business intelligence (BI) software in contributing both to efficient operations and to the leveraging of customer contacts for sales of products and services in our broadband division. The past year put us in a strong position, both operationally and financially, to begin the major initiative of 2008, our penetration of the large U.S. cable, telecommunications and satellite markets.”

Broadband Services Spur Revenue Growth

Revenue growth for the fourth quarter and fiscal year 2007 was driven primarily by rising sales volume in CVAS’ broadband-related services business.

Operating Profits Rise, Financing Costs Drop

The narrowing of net losses in 2007 was due both to increased operating profit and reduced non-operating costs, especially financing expenses. Income from operations in the fourth quarter of 2007 was $341,500, compared to an operating loss of ($461,500) in the fourth quarter of 2006. For all of 2007, income from operations was $1.49 million, up from $802,300 in 2006.

In the fourth quarter of 2007, interest and amortization of deferred charges (excluding the effect of foreign exchange) totaled $856,000, up from $573,500 in the fourth quarter of 2006. For the full year 2007, expenses in these categories were down sharply, to $3.14 million from $6.34 million in 2006. CVAS recorded no expenses related to valuation of derivative liabilities in 2007, compared to such expenses totaling $943,500 in 2006.
 
Since the end of 2007, CVAS has announced the signing of service contracts with two major U.S. cable companies, serving markets in and around New Orleans, La., and Charlotte, N.C. It also has acquired an approximately 10% stake in 180 Connect, Inc., an Englewood, Colo.-based company that provides installation, integration and fulfillment services to satellite and cable system operators in the U.S. and Canada.
 
 
 

 
 
If you would like to be added to Creative Vistas' investor email lists or have additional questions, please contact Haris Tajyar with Investor Relations International at htajyar@irintl.com or sayan@creativevistasinc.com. For further information on CVAS please visit www.creativevistasinc.com.
 
About Creative Vistas 
 
Creative Vistas Inc. is a leading provider of security-related technologies and systems. It also provisions the deployment of broadband services. Operating through its wholly-owned subsidiaries AC Technical Systems Ltd. and Iview Digital Video Solutions Inc., it offers proprietary and non-proprietary technologies to the integrated electronic security and surveillance market. Its systems are used by numerous high-profile clients including government, school boards, retail outlets, banks and hospitals. Through its subsidiary Cancable, Inc., Creative Vistas provisions the deployment and servicing of broadband technologies to the commercial and residential market. Creative Vistas is based in Ontario, Canada.
 
Forward-Looking Statements: Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results for reasons described from time to time in the Company's public filings. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events.
 
Contact:
Investor Relations International
Haris Tajyar, 818-382-9700
htajyar@irintl.com
OR
Creative Vistas, Inc.
Sayan Navaratnam, 905-666-8676
sayan@creativevistasinc.com
 
1 EBITDA represents, for any relevant period, income (loss) before income taxes, depreciation of property, plant and equipment, interest expense (including amortization of debt issuance costs) and amortization of intangible assets.

 
 

 

Creative Vistas, Inc.
         
Consolidated Balance Sheets
         
December 31
 
2007
 
2006
 
Assets
         
Current Assets
         
Cash and bank balances
 
$
1,960,340
 
$
3,561,181
 
Accounts receivable, net of allowance
             
for doubtful accounts $405,432 (2006-$218,450)
   
6,187,551
   
3,860,036
 
Income tax recoverable
   
448,126
   
351,344
 
Inventory
   
1,043,815
   
764,077
 
Prepaid expenses
   
270,930
   
237,288
 
Due from related parties
   
2,581
   
2,203
 
Total current assets
   
9,913,343
   
8,776,129
 
Property and equipment, net of depreciation
   
6,352,014
   
3,824,555
 
Deposits
   
125,498
   
156,080
 
Goodwill
   
3,101,598
   
2,893,845
 
Restricted cash
   
53,430
   
339,028
 
Deferred financing costs, net
   
551,747
   
647,542
 
Intangible assets
   
1,717,003
   
1,600,000
 
Deferred income taxes
   
37,547
   
32,746
 
          
$
21,852,180
 
$
18,269,925
 
Liabilities and Stockholders’ (Deficiency)
             
Current Liabilities
             
Accounts payable
 
$
3,328,740
 
$
2,578,985
 
Accrued salaries and benefits
   
1,555,981
   
1,157,552
 
Accrued commodity taxes
   
191,204
   
421,753
 
Accrued liabilities
   
998,287
   
496,698
 
Current portion of obligation under capital leases
   
1,195,366
   
710,375
 
Deferred income
   
91,900
   
68,245
 
Deferred income taxes
   
25,858
   
22,770
 
Current portion of term notes
   
2,240,356
   
2,439,046
 
Current portion of other notes payable
   
303,030
   
28,736
 
Due to related parties
   
8,143
   
2,501
 
Total current liabilities
   
9,938,865
   
7,926,661
 
Term notes
   
13,565,421
   
14,430,776
 
Notes payable to related parties
   
1,500,000
   
1,500,000
 
Other payable
   
303,030
   
-
 
Obligation under capital lease
   
3,184,103
   
1,789,365
 
Due to related parties
   
233,203
   
199,025
 
     
28,724,622
   
25,845,827
 
Stockholders' (deficiency)
             
Share capital
             
Authorized
             
50,000,000 no par value preferred shares undesignated, none issued or outstanding
             
100,000,000 no par value common shares 34,494,623 and 33,253,358 shares issued and outstanding
             
Common stock
   
1,439,307
   
517,990
 
Additional paid-in capital
   
4,958,871
   
3,887,706
 
Accumulated (deficit)
   
(12,445,468
)
 
(11,863,862
)
Accumulated other comprehensive losses
   
(825,152
)
 
(117,736
)
     
(6,872,442
)
 
(7,575,902
)
   
$
21,852,180
 
$
18,269,925
 

 
 

 
 
Creative Vistas, Inc.
 
Consolidated Statement of Operations and Comprehensive (Loss)
 
For the years ended December 31
 
2007
 
2006
 
Contract and service revenue
         
Contract
 
$
6,083,768
 
$
5,352,841
 
Service
   
33,860,869
   
25,061,831
 
Others
   
46,431
   
42,225
 
         
39,991,068
   
30,456,897
 
Cost of sales
             
Contract
   
4,203,159
   
3,055,938
 
Service
   
24,126,027
   
17,455,096
 
            
28,329,186
   
20,511,034
 
Gross margin
   
11,661,882
   
9,945,863
 
Operating expense
             
Project
   
1,311,646
   
1,272,891
 
Selling
   
797,759
   
679,620
 
General and administrative
   
8,060,428
   
7,191,011
 
             
10,169,833
   
9,143,522
 
Income from operations
   
1,492,049
   
802,341
 
Interest expenses and other expenses (income)
             
Net financing expenses
   
2,955,063
   
4,617,825
 
Amortization of deferred charges
   
182,430
   
782,881
 
Foreign currency translation gain
   
(1,063,838
)
 
-
 
Derivative instruments
   
-
   
943,527
 
               
2,073,655
   
6,344,233
 
Loss before income taxes
   
(581,606
)
 
(5,541,892
)
Income taxes 
   
-
   
-
 
Net (loss)
   
(581,606
)
 
(5,541,892
)
Other comprehensive (loss):
             
Foreign currency translation adjustment
   
(707,416
)
 
(52,721
)
Comprehensive (loss)
 
$
(1,289,022
)
$
(5,594,613
)
Basic and diluted weighted-average shares
   
33,847,266
   
32,394,008
 
Basic (loss) per share
 
$
(0.02
)
$
(0.17
)
Diluted (loss) per share
 
$
(0.02
)
$
(0.17
)