GINSMS Inc.: GINSMS Announces Financial Results for the Three and Six Months Ended June 30, 2024

CALGARY, Alberta, Aug. 12, 2024 (GLOBE NEWSWIRE) -- GINSMS Inc. (TSXV: GOK) (the "Corporation") has announced its financial results for the second quarter ended June 30, 2024.

The complete financial results for GINSMS are available at www.sedar.com. Highlights include:

• Revenue of $815,190 for the three-month period ended June 30, 2024 as compared of $840,372 for the three-month period ended June 30, 2023.
• Gross Profit of $428,725 for the three-month period ended June 30, 2024 as compared to gross profit of $306,419 for the three-month period ended June 30, 2023.
• Operating expenses and finance costs of $232,918 for the three-month period ended June 30, 2024 increased from $211,157 for the three-month period ended June 30, 2023.
• Net profit of $203,164 for three-month period ended June 30, 2024 as compared to a net profit of $102,437 for three-month period ended June 30, 2023.

Selected Profit and Loss Information

Financial Highlights	Three-month period ended June 30, 2024 (Unaudited)		Three-month period ended June 30, 2023 (Unaudited)		Six-month period ended June 30, 2024 (Unaudited)		Six-month period ended June 30, 2023 (Unaudited)
Revenues $
A2P Messaging Service	275,248		314,359		424,208		602,736
Software Products & Services	539,942		526,013		1,101,287		1,058,293
	815,190		840,372		1,525,495		1,661,029
Cost of sales $
A2P Messaging Service	106,119		242,131		201,269		421,889
Software Products & Services	280,346		291,822		594,383		588,265
	386,465		533,953		795,652		1,010,154
Gross profit $
A2P Messaging Service	169,129		72,228		222,939		180,847
Software Products & Services	259,596		234,191		506,904		470,028
	428,725		306,419		729,843		650,875
Gross margin %
A2P Messaging Service	61.4%		23.0%		52.6%		30.0%
Software Products & Services	48.1%		44.5%		46.0%		44.4%
	52.6%		36.5%		47.8%		39.2%
Adjusted EBITDA(1) $	218,861		118,828		248,050		213,611
Adjusted EBITDA margin	26.8%		14.1%		16.3%		12.9%
Net profit/(loss) $	203,164		102,437		205,078		174,105
Net profit/(loss) margin	24.9%		12.2%		13.4%		10.5%
Net earnings/(loss) per share $
Basic and Diluted (in Canadian cents)	0.108		0.054		0.109		0.093

(1)

Adjusted EBITDA is a non-IFRS measure which does not have any standardized meaning under IFRS. Adjusted EBITDA is related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation and amortization (in both cost of sales and general and administration expenses), interest expenses, and also excludes certain non-recurring or non-cash expenditure and income. This non-IFRS measure is not recognized under IFRS and accordingly, shareholders are cautioned that this measure should not be construed as an alternative to net income determined in accordance with IFRS. The non-IFRS measure presented is unlikely to be comparable to similar measure presented by other issuers. The Corporation believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Corporation can use to fund working capital requirements, service interest and principal debt repayment and fund future growth initiatives.

About GINSMS

Certain information included in this press release may contain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. These statements are not historical facts, but reflect management's current beliefs and are based on information currently available to management regarding future results and events. Particularly, these forward-looking statements are based on management's estimate of future events based on technological advances relating to the Corporation's services, current market conditions and past experiences of management in relation to how certain contracts will affect revenues. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions.

A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to dependence on major customers, system failures, delays and other problems, increasing competition, security and privacy breaches, dependence on third-party software and equipment, adequacy of network reliance, network diversity and backup systems, loss of significant information, insurance coverage, capacity limits, rapid technology changes, market acceptance, decline in volume of attractions, retention of key members of the management team, success of expansion into Chinese and other Asian markets, credit risk, consolidation of existing customers, dependence on required licenses, economy and politics in countries where the Corporation operates, conflicts of interest and residency of directors and officers. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Corporation cannot assure the reader that actual results will be consistent with these forward-looking statements.

These forward-looking statements are made as of the date of this press release and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements. All forward-looking statements contained in this press release are qualified by this cautionary statement.

For further information, please contact:

GINSMS Inc.
Joel Chin, CEO
Tel: [phone]
Email: [e-mail]

NEITHER THE 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.