First Quarter Ended March 31, 2009
-- Revenues increased 80% to $29.3 million for the quarter ended March 31, 2009. -- Gross profit increased 28% to $0.9 million from a year ago. -- Gross margins were 3.1% compared to 4.3% a year ago. The difference between 2009 and 2008 is primarily attributable to an existing contract awarded to Paragon with a lower margin. -- EBITDA, as adjusted (see "EBITDA, as adjusted" definition below), declined to a negative $398,000 from a break-even position a year ago. -- Net loss per basic and diluted share was $(0.77) for the quarter ended March 31, 2009, compared to $(0.51) a year ago.
-- In March 2009, Tri-S Security determined to sell substantially all of the assets (except accounts receivable) of its wholly-owned subsidiary, The Cornwall Group, Inc. ("Cornwall"), and certain of its subsidiaries. Cornwall is based in Miami, Florida and provides physical security for clients in Miami, Fort Lauderdale, and West Palm Beach, Florida. Tri-S Security determined to sell the Cornwall business so that Tri-S could focus on growing the government business and reduce its overall debt load. The sale was completed on May 13, 2009. This transaction will reduce our overall debt load by approximately $7.0 million, $750,000 of which will be held in escrow to secure the continuation of certain contracts transferred as part of the sale.
-- Total Paragon contract pipeline of approximately $583 million, all of which has already been bid. We expect these contracts to be awarded over the next six months.
"Our top line growth showed significant improvement compared to the first quarter of 2008 and was stable compared to the previous quarter ended December 31, 2008," said Ronald Farrell, CEO, Tri-S Security Corp. "We believe our contract pipeline continues to be strong and we remain very encouraged about winning new contracts at Paragon. With our current book of business, we can anticipate revenue for 2009 through