December 10, 2009 / 1:58 PM / 9 years ago

UPDATE 1-Garda World Q3 adj profit beats estimates

* Q3 adj EPS C$0.12 vs. est. C$0.05

* Revenue falls 6.5 pct

* Says reduced long-term debt by C$138.7 mln

* Says has a strong pipeline of potential new contracts

Dec 10 (Reuters) - Canada’s Garda World Security Corp GW.TO posted an adjusted third-quarter profit that topped market view, helped by cost controls and improved margins, and said it is poised to a “jump start” in 2010.

Garda, which provides armored cars, cash-handling services, and automated teller machine maintenance, posted a net income of C$1.4 million, or 4 Canadian cents per share, compared with a net loss of C$2.2 million, or 7 Canadian cents per share reported a year ago.

Excluding unrealized losses on derivative financial instruments, the company earned 12 Canadian cents per share for the quarter ended Oct. 31.

Revenue for Garda, which operates across three segments — Cash Logistics, Physical Security and Global Risk Consulting — fell 6.5 percent to C$263.4 million, but gross margin rose 60 basis points to 25.6 percent.

Analysts on average had expected earnings of 5 Canadian cents a share, before special items, on revenue of C$267 million, according to Thomson Reuters I/B/E/S.

The company said it reduced long-term debt by C$138.7 million from a year ago, with a further additional reduction of $7.6 million in the latest third quarter.

Garda said it has a strong pipeline of potential new contracts and these opportunities position it for a jump start in 2010.

Shares of Garda closed at C$10.55 Wednesday on the Toronto Stock Exchange. (Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier)

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