MISSISSAUGA, ON / ACCESSWIRE / November 23, 2023 /

Quarterly Earnings Call:

8:30am EST, November 24, 2023, Participant call in number is 1-800-319-4610

Quarterly Highlights:

Consolidated Highlights:

Corporate Locations Highlights:

Year-to-date Highlights:

Consolidated Highlights:

Corporate Locations Highlights:

Capital Management:

Management's Comments on Q3-2023

Jeffrey Hasham, the Company's Chief Executive Officer, noted "We are very pleased with our EBITDA less net recycling revenue growth of 121% during the third quarter of 2023. Our continued focus on route efficiencies and cost optimization were the main drivers of the $0.9 million increase in EBITDA less net recycling revenue. We continue to see strong demand for our core recurring shredding service offering, which has helped drive our organic shredding revenue growth of 9% in Q3 2023 versus Q3 2022. In addition, our new client relationship management system will allow us to increase sales efficiency and better connect with our customers moving forward. From a paper market perspective, paper prices have continued to decline, impacting our recycling revenue. We had anticipated this and continue to focus on growing our recurring revenue stream. Looking at our Proscan business, we saw strong revenue growth of 16% when compared to Q3 2022 and our pipeline of scanning projects remains strong.

During the quarter, we also completed the acquisitions of Proshred Baltimore and Security Shredding, which were accretive to the Company's EBITDA and cash flows. We also expect to realize further synergies from these acquisitions related to route densification and cost optimization that should enhance future margins.

For the quarter, I am also pleased that Q3 2023 free cash flow was $2.7 million Canadian, an increase of 333% from Q3 2022.

These results reflect the hard work and commitment of our employees, franchisees, management and board members, and I would like to personally thank each of them for their efforts and contributions."

Revenue Growth

The Company achieved 5% total revenue growth during Q3 2023 versus Q3 2022 and 17% total revenue growth during Q3 2023 YTD versus Q3 2022 YTD, primarily due to acquisitions conducted during the last 12 months and organic sales growth from new customers and price increases, partially offset by a decrease in recycling revenue from lower commodity paper prices.

Corporate Locations Q3 2023 Performance

Total corporate location revenue and EBITDA grew by 5% and 3%, respectively, in Q3 2023 versus Q3 2022.

Same corporate location operating income, excluding the impact of net recycling revenue, grew 324% in Q3 2023 versus Q3 2022. Same corporate location shredding revenue grew by 9% in Q3 2023 versus Q3 2022, with same corporate location EBITDA decreasing by 6%, driven by lower commodity paper pricing.

_{Note 1: During Q3 2023, acquisition/vendor-related consulting fees of $22 (Q3 2022 - $211) are included in the total and non-same corporate location operating costs.}

Corporate Locations Q3 2023 YTD Performance

Total corporate location revenue and EBITDA grew by 18% and 11%, respectively, in Q3 2023 YTD versus Q3 2022 YTD.

Same corporate location operating income, excluding the impact of net recycling revenue, grew 46% in Q3 2023 YTD versus Q3 2022 YTD. Same corporate location shredding revenue grew by 16% in Q3 2023 YTD versus Q3 2022 YTD, with same corporate location EBITDA remaining flat, driven by lower commodity paper pricing.

_{Note 1: During the nine months ended September 30, 2023, acquisition/vendor-related consulting fees of $307 (nine months ended September 30, 2022- $366) are included in the total and non-same operating costs.}

Community and Social Commitment

Our locations under the PROSHRED banner conduct numerous community shredding events. These events provide an opportunity for our clients, clients' employees, local businesses and local residents to ensure their personal and confidential materials are securely destroyed. In addition to helping to reduce identity theft, several of these events allow for donations to various not-for-profit organizations. PROSHRED is also proud that 100% of the shredded material is recycled, as our continued goal is to foster the use of fewer trees in the production of all paper products. Future community shredding event locations can be found on our website, . Our annual national Shred Cancer event was held in June of 2023 at various Proshred locations. These events are held to raise research funds for the American Institute for Cancer Research ("AICR"). It is our goal as a Company and Franchise System to support AICR in their endeavor to prevent cancer and possibly cure this disease. So far, PROSHRED has raised over USD$239,000 for this cause. Please visit for more information on this effort.

Non-IFRS Measures

There are measures included in this press release that do not have a standardized meaning under International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similarly titled measures presented by other publicly traded companies. The Company includes these measures as a means of measuring financial performance of the Company.

Reconciliation of EBITDA and EBITDA less net recycling to Operating Income

Reconciliation of Operating Income to Net Income

Reconciliation of Consolidated Free Cash Flow with Cash Provided by Operations

Financial Statements

Redishred's September 30, 2023 Financial Statements and Management's Discussion and Analysis will be available on and .

About Redishred Capital Corp.

Redishred Capital Corp. ("Redishred") is the owner of the PROSHRED, PROSCAN and secure e-Cycle brands, trademarks and intellectual property in the United States. Redishred digitizes, secures, shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. Redishred is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2015 certification. It is Redishred's vision to be the 'system of choice' in providing digital retention, secure shredding and recycling services on a global basis. Redishred Capital Corp. grants PROSHRED and PROSCAN franchise businesses in the United States and by way of a license arrangement in the Middle East. Redishred also operates sixteen corporate businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of information security businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

FOR FURTHER INFORMATION PLEASE CONTACT:

Redishred Capital Corp. (TSX.V - KUT)
Jeffrey Hasham, MBA, CPA, CA
Chief Executive Officer
Jeffrey.hasham@redishred.com

Phone: (416) 849-3469 Fax: (905) 812-9448

or,

Redishred Capital Corp. (TSX.V - KUT)
Harjit Brar, CPA, CA
Senior Vice President and Chief Financial Officer
harjit.brar@redishred.com

Phone: (437) 328-6639 Fax: (905) 812-9448

Note: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward looking statements that reflect the current expectations of management of Redishred and Redishred's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "may", "will", "estimate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Redishred. Forward looking statements necessarily involve known and unknown risks, uncertainties and other factors. A number of factors, including those discussed in Redishred's 2022 Management Discussion and Analysis under "Risk Factors", could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Redishred will prove to be correct. Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.