Redishred Capital Corp. Announces Record Q3-2015 Results

Mississauga, Ontario--(Newsfile Corp. - November 26, 2015) - Redishred Capital Corp. (TSXV: KUT) ("Redishred") announces record Q3-2015 results.

Third Quarter Highlights:

• Total system sales ⁽¹⁾ in thePROSHRED^® system were US$6.5 million in the third quarter of 2015, growing 21% over the comparative period in 2014.
• Scheduled (recurring) system sales for the third quarter reached a record of US$3.2 million, growing 23% over the third quarter of 2014;
• Unscheduled system sales for the third quarter were US$2.2 million,growing 22% over the third quarter in 2014 and;
• Recycling system sales for the third quarter were US$1.1M, growing 25% over the third quarter of 2014.
• The PROSHRED^® system shred and recycled 9,000 tons of paper during the third quarter of 2015, an increase of 13% over the third quarter of 2014. This equates to 136,000 trees being saved.
• Redishred's six directly operated corporate locations in Syracuse, Albany, Milwaukee, New York City, Charlotte and Miami produced CAD$1.55 million in revenues during the three months ended September 30, 2015, generating CAD$646,000 in earnings before interest, taxes, depreciation and amortization ("EBITDA"), an increase of 22% over the comparative period in 2014.
• Franchise and license revenue for the third quarter of 2015 was CAD$420,000, growing 31% over the third quarter of 2014. This category of revenue is generated by franchisees and licensees of thePROSHRED^® system, originally denominated in US dollars.
• On October 1, 2015, a new PROSHRED^®franchise was awarded in Minneapolis, MN; operations are expected to commence in the first quarter of 2016. This will mark the 28^thlocation in the United States and will allowPROSHRED^® to provide service to 31 US markets.

(1)

System sales are revenues generated from franchisees, licensees and corporate owned locations. Redishred Capital Corp. derives its royalty and service fee revenues based on a percentage of system sales from franchisees and licensees. Redishred Capital Corp. derives revenues from corporate location system sales.

Financial Highlights:

		3 months ended September 30									9 months ended September 30
								%									%
(in CAD except where noted)		2015			2014			Change			2015			2014			Change
		$			$						$			$
Corporate location financial results:
Corporate location revenue		1,554,557			1,247,349			25 %			4,372.002			3,668,197			19 %
Corporate location operating costs		(908,449	)		(719,481	)		(26)%			(2,471,505	)		(2,055,957	)		(20)%
Corporate location EBITDA		646,108			527,868			22 %			1,900,497			1,612,240			18 %
Depreciation - tangible assets		(120,789	)		(119,093	)		(1)%			(360,985	)		(286,683	)		(26)%
Operating income from corporate locations		525,319			408,775			29 %			1,539,512			1,325,557			16 %
Franchise and license sales:
Franchise and license fees		4,120			32,569			(87)%			33,229			103,396			(68)%
Royalties and service fees		415,832			288,974			44 %			1,166,812			832,223			40 %
Franchise related revenue		419,952			321,543			31 %			1,200,041			935,619			28 %
Operating income		527,950			289,229			83 %			1,463,206			1,029,055			42 %
Net income		363,260			62,791			479 %			1,004,810			133,360			653 %
Income per share		0.013			.002			550 %			0.035			0.005			600 %
System sales (USD)		6,497,246			5,362,658			21 %			18,637,513			15,216,644			21 %

System Sales

Redishred's management team continued to focus its efforts through its franchisees and its corporate locations on (1) building recurring service revenues, (2) maximizing route density and logistical efficiencies and (3) implementing dedicated hard drive destruction trucks/equipment throughout the system. The strong service system sales results are driven by Redishred's sales and marketing programs that are aimed at educating clients on the legislative requirements to destroy confidential information utilizing a secure on-site solution. Our clients are also looking at enhancing risk management programs by utilizing an on-site destruction service such as the one offered by PROSHRED^®. Additionally, an increasing number of clients are requiring their facilities to recycle all paper documents, by using our services, clients are assured that documents are both securely destroyed and recycled. PROSHRED^® also offers hard drive destruction services in almost all of its locations, and has been deploying high speed on-site hard drive destruction trucks. Currently 18 franchised locations have deployed high-speed on-site hard drive destruction trucks. These factors led to 23% growth in scheduled and 22% unscheduled system sales in the third quarter of 2015 over the same quarter in 2014.

Corporate Operations

During the nine months ended September 30, 2015, Redishred directly operated six shredding locations in Syracuse, NY, Albany, NY, Milwaukee, WI, New York City, NY, Charlotte, NC and Miami, FL.

During the three months ended September 30, 2015, corporate location revenue grew by 25% over the same comparative prior year period. The Company has also increased EBITDA by 22% and operating income by 30% over the three months ended September 30, 2014.

All Corporate Locations Results:

		3 months ended September 30												9 months ended September 30
					% of						% of			2015			% of			2014			% of
		2015			revenue			2014			revenue						revenue						revenue
		$						$						$						$
Revenue:
Shredding service		1,309,120			84%			1,032,669			83%			3,644,651			83%			3,020,144			82%
Recycling		245,437			16%			214,680			17%			727,351			17%			648,053			18%
Total revenue		1,554,557			100%			1,247,349			100%			4,372,002			100%			3,668,197			100%
Operating costs		908,449			58%			719,481			58%			2,471,505			57%			2,055,957			56%
EBITDA		646,108			42%			527,868			42%			1,900,497			43%			1,612,240			44%
Depreciation - equipment		120,789			8%			119,093			10%			360,985			8%			286,683			8%
Corporate operating
income		525,319			34%			408,775			33%			1,539,512			35%			1,325,557			36%

Corporate Locations Trend:

All figures in the following table refer to the Company's corporately operated locations.

(in 000's)		2015									2014												2013
		Q3			Q2			Q1			Q4			Q3			Q2			Q1			Q4
Revenue ($)		1,555			1,443			1,374			1,257			1,247			1,263			1,158			973
Quarter over quarter % change		8%			5%			9%			1%			(1)%			9%			19%			4%
EBITDA ($)		646			679			576			534			528			567			517			353
Quarter over quarter % change		(5)%			18%			8%			1%			(7)%			10%			47%			(2)%

Management's Comments on the Third Quarter of 2015

Jeffrey Hasham, the Company's CEO, had the following comments, "PROSHRED^® has continued to set growth and system sales records. This is a validation from our clients that our focus on on-site information destruction solution is the best solution to enhance their risk management programs. It is our view that the on-site solution for destroying paper, hard drives and products is the most secure method of destruction. It is PROSHRED^®'s mandate to provide peace of mind for our clients' that their information will be shred on-site, significantly reducing the risk of information breach." Mr. Hasham further commented that "Our franchisee and corporate location performance is a result of our collective willingness to invest in human resources and modern equipment allowing us to provide a five star solution to our clients. The Company's plan is to continue investing in new trucks and human resources to further drive results in the last quarter and into 2016. I would like to thank our franchisees, employees and vendor partners for their hard work and our shareholders for their continued support of our Company."

Community and Social Commitment

Our locations under the PROSHRED^® banner conducted 164 community shredding events in the first nine months of 2015. 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 at our website, www.proshred.com.

On June 6, 2015, PROSHRED^® held its' 2^nd annual Shred Cancer event at most of its locations, raising money for the American Institute for Cancer Research ("AICR"). It is our goal as a Company to support the AICR in their endeavor to conduct research to prevent and possibly cure this disease. Please visit www.proshred.com/aicr for more information on this effort.

Financial Statements

Redishred's September 30, 2015 Financial Statements, Notes and Management's Discussion and Analysis will be available at www.sedar.com and www.redishred.com.

Services

Redishred Capital Corp. (TSXV: KUT) is the owner of the PROSHRED® trademarks and intellectual property in the United States. PROSHRED® shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2008 certification. It is PROSHRED®'s vision to be the "system of choice' and provide shredding and recycling services on a global basis. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States and by way of license arrangement in the Middle East. Redishred Capital Corp. also operates six corporate shredding businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of document destruction 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. (TSXV: KUT)
Jeffrey Hasham, MBA, CPA, CA
Chief Executive Officer
[e-mail]
www.redishred.com
Phone: [phone] Fax: [phone]

or,

Redishred Capital Corp. (TSXV: KUT)
Jack Pulkinen, CPA, CA
Chief Financial Officer
[e-mail]
www.redishred.com
Phone: [phone] Fax: [phone]

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 and uncertainties. A number of factors, including those discussed in the 2014 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.