GVI Security Solutions, a provider of video security solutions featuring the complete Samsung Electronics line of products, announced its year-end financial results for 2008.
"Reporting eight consecutive profitable quarters and year over year revenue growth reflects the solid performance we are delivering at GVI," said GVI Chairman/CEO Steven Walin. “We delivered top line growth, while keeping a focus on enhancing profitability.”
"During 2008, we announced a string of high profile contract wins in our key banking, retail and education market verticals, as well as continued strength from our core day-to-day business of repeat sales to installers and integrators,” Walin said, “Moving into 2009, we are continuing to see positive results as reflected in our recent announcement of a two-year contract renewal from a major U.S. based international retailer expected to generate $15 million of revenues.”
Net revenues increased approximately $2.3 million, to approximately $47.3 million during the year ended Dec. 31, 2008 from approximately $45 million during the year ended Dec. 31, 2007. The increase in revenues reflects increased sales to distributors, integrators and installers of a variety of products manufactured by Samsung Electronics as well as GVI branded products, as the company continued to introduce new products to complement its existing lines.
For the year ending Dec. 31, 2008, pre-tax earnings from continuing operations were approximately $2 million or $0.06 per diluted share as compared to $1.5 million or $0.04 per diluted share in the year ending Dec. 31, 2007. For 2008, the company reported income tax expense of $705,000 as compared to 2007 when a tax loss carry-forward produced a net income tax benefit of approximately $942,000. On an after-tax basis for the year ending Dec. 31, 2008 net income was approximately $1.3 million or $0.04 per diluted share, as compared with net income of approximately $2.6 million or $0.07 per diluted share for the year ended Dec. 31, 2007.
"We are pleased with our results for the year," said GVI COO/CFO Joe Restivo. “In the face of a worldwide recession, we increased revenues and pre-tax operating profits. A major contributing factor is the strong service and support we deliver to our customers. We believe our success is attributable to stocking the right products for our customers and backing the product up with instantly available technical support. Throughout the year, we've been able to maintain premium pricing that has positively impacted our profits, gross margin and revenue. With cooperation from Samsung Electronics we continue to invest in expanding our sales and marketing programs in North and South America, while keeping a tight rein on other expenses.”
Selling, general, and administrative expenses increased 12 percent to approximately $11.6 million for the year ended Dec. 31, 2008 from approximately $10.3 million for the year ended Dec. 31, 2007. The increase was attributable to increased sales and marketing as general and administrative expenses were essentially unchanged during the year.
"As a result of our achievement of net income in excess of $1 million for the year ending Dec. 31, 2008, the interest rate under our credit facility with Wells Fargo will be reduced by 50 percent per annum commencing within 30 days of Wells Fargo's receipt of our financial statements for the year ended Dec. 31, 2008,” said Restivo. “This will have a positive impact on our results for 2009.”
Interest expense for the year ended Dec. 31, 2008 decreased 32 percent to approximately $686,000, from approximately $1 million in the year ended December 31, 2007.