Nanalysis Scientific Corp. Provides Update on Security Services Business
Phase-In of Canada-Wide Coverage at All 89 Designated Airports Completed on January 11, 2024
"Having now taken over all preventative and corrective maintenance services for CATSA, we expect the project to begin generating positive EBITDA in Q1 2024*. As fixed costs have flattened while revenues are ramping up, I expect to maximize EBITDA throughout 2024 and for years to come."
Project Highlights:
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*Project EBITDA: As of
January 2024 , with the phase-in period's completion, the project is expected to generate positive EBITDA in Q1 2024, excluding final one-time training costs which will endMarch 31, 2024 . EBITDA is expected to grow through 2024 and provide a stepped-up EBITDA contribution for the rest of the contract. Please see the note below regarding one-time and ongoing training obligations. -
Fully Executed Cutover Plan as of
January 11, 2024 : As a result of the hard and relentless work of the KPrime leadership team and local technicians, and with the support of CATSA's equipment manufacturers and the incumbent service provider, KPrime has now assumed all maintenance responsibilities for CATSA's fleet of imaging and detection equipment across all ofCanada . -
Canada-Wide
Coverage: KPrime now performs maintenance of CATSA imaging and detection equipment at all 89 designated airports and is now also providing additional authorized work support to CATSA.
- Training costs: Initial training costs for staff maintenance certifications were substantial in the phase-in period. While the Company has taken over all 89 airports, it is still expecting some initial training to occur in the first quarter of 2024 for its most recently hired team members. After completion of initial training, the Company expects lower ongoing training costs commensurate with ordinary staff turnover and ongoing certification maintenance.
The Company's devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners. With its partners, the Company provides scientific equipment sales and maintenance services globally.
In 2022, through its subsidiary KPrime, the Company was awarded a five-year,
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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