Thu, Nov 14, 5:36 PM (88 days ago)
AmeriGuard Security Services, Inc. (AGSS) reported a net loss of approximately $1,781,000 for the nine months ending September 30, 2024, a slight increase from the prior year. Revenue rose by 1.6% to $19,283,000, driven by new federal transportation contracts, which offset losses from a contract that ended in May 2023. The gross profit margin improved from 9% to 14% due to reduced direct expenses. Operating expenses increased by $999,000, primarily from higher loan interest amid tighter capital markets. The company generated a cash decrease of $1,438,000 from operations, ending with $896,616 in cash on hand. Key risks include reliance on federal contracts for 88% of revenue and challenges in securing new contracts amidst regulatory and competitive pressures. Management is optimistic about future profitability, targeting new contracts and potential mergers to bolster growth. The company aims to refinance debt and improve operational efficiency to enhance margins. Overall, AGSS is positioned for growth but faces uncertainties linked to contract renewals and market conditions.