Mr. Todd Ziniuk reports

ZEDCOR INC. ANNOUNCES FIRST QUARTER RESULTS FOR 2023 WITH 39% INCREASE IN YEAR OVER YEAR REVENUE, $2.1 MILLION IN ADJUSTED EBITDA AND POSITIVE EARNINGS PER SHARE

Zedcor Inc. has released its financial and operating results for the three months ended March 31, 2023.

First quarter 2023 revenues were $6.4-million, and the company had net income before income taxes of $800,000 or one cent per share. This represented a 39-per-cent increase in revenues compared with Q1 2022 and a 75-per-cent increase in net income for March 31, 2023.

Zedcor recorded $2.1-million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended March 31, 2023. This compares with $1.4-million of adjusted EBITDA for the three months ended March 31, 2022.

During the quarter, the company has allocated approximately 18 per cent of its MobileyeZ security tower fleet to Ontario. These towers are being utilized at construction and automotive customer sites. Zedcor has continued to allocate security towers to Eastern Canada as it expands its service capabilities in Eastern Canada.

Todd Ziniuk, president and chief executive officer, said: "We continue to see strong demand for our MobileyeZ security towers. We believe our integrated model of security tower rentals, coupled with uncompromising service, is truly unique. We have had preliminary conversations with customers in the United States and believe there is an opportunity to expand our services to the [United States]. We have started to spend time researching the market and believe there is an opportunity to grow revenue. We plan to expand to the U.S. in the second half of 2023 while continuing to expand in Canada, with a focus on Eastern Canada. We are also seeing demand for our services across different industry verticals that we are excited about. In April, we launched a pilot project with a large home improvement retailer. We are enthusiastic about this opportunity and will use it to expand our service offering to other retailers as well."

Outlook

Zedcor continues to execute its long-term strategy of expanding its technology-enabled security services across North America. While there were supply chain delays throughout Q1, which slowed down the company's ability to build security towers, it continues to effectively use a mix of cash flow and debt to build additional MobileyeZ security towers to provide surveillance services to its expanding customer base. In addition, there are inflationary pressures that the company is actively monitoring to maintain margins, and this remains a priority for management.

Utilization of the company's surveillance towers fitted with high-resolution cameras and supported by live verified, 24-seven remote monitoring continues to be high and remained steady in Q1 2023. While it expects the utilization rates to remain strong going forward, there was a drop in utilization rates at the start of second quarter 2023 as the Trans Mountain pipeline expansion project comes to an end, and equipment is redeployed to other customers throughout the company's operating regions. The company has expanded its sales force across Canada to obtain contracts for its MobileyeZ and continue to expand its service offering to different industries. With the anticipated completion of the Trans Mountain expansion pipeline in the first half of 2024, the company is situated with a growing sales force and expanded geographical footprint to be able to diversify its customer base while maintaining utilization rates. This was evidenced in second quarter as Zedcor was able to redeploy a significant portion of the MobileyeZ returned from Trans Mountain to new customers, including starting a pilot project with a major home improvement retailer.

Priorities that the company intends to focus on for the rest of 2023 include:

1. Obtaining more customers, with a focus on enterprise-level customers, and diversifying customer base, including geographically and across different industry verticals: The company is seeing strong demand for its MobileyeZ across Canada and has plans to expand to the United States in the second half of 2023. Based on preliminary research, there is a large market for Zedcor's integrated solution of MobileyeZ security towers with monitoring services. Due to significant spending on infrastructure in the United States, the company believes its products, coupled with Zedcor's commitment to customer service, are perfectly situated for this market. Zedcor also intends to expand its presence in Eastern Canada.
2. Continued expansion across Canada: The company expanded to Ontario with equipment and service centres in Ottawa and Toronto. The company has secured customers in Ontario and Quebec, and intends to allocate a sizable portion of its 2023 capital spending to expand its Eastern Canada operations and fleet size. The company has also hired salespeople and branch managers for all of its equipment and service centres across Canada.
3. Maintaining margin levels by increasing operational efficiency and continuing to invest in technology: Zedcor has investigated a number of artificial intelligence options that will reduce the number of alarms in its monitoring centre. It will be investing in technological solutions to help it exploit this and is actively testing options.
4. Building new, innovative products based on customer demand: As the company has obtained customers in different industry verticals, it has seen an increasing number of use cases for its MobileyeZ. This includes a need for additional sensor technology in both the retail and construction industries. As a result, the company intends to increase its product offering in sensor technology to help customers solve issues around asset security. As the company expands into different geographies, it intends to continue to develop additional types of MobileyeZ security towers, including a full solar security tower.
5. The company intends to continue to generate customer and shareholder value and positive earnings per share. By effectively managing its growth, executing on the above-noted strategies and increasing its capital market presence, Zedcor will be able to continue to generate positive earnings per share, expand its shareholder base and increase share price.

No conference call

No conference call will be held in conjunction with this release. Full details of the company's financial results, in the form of the condensed consolidated interim financial statements and notes for the three months ended March 31, 2023, and 2022, and management's discussion and analysis of the results, are available on SEDAR and on the company's website.

About Zedcor Inc.

Zedcor is a Canadian public corporation and is currently the parent company to Zedcor Security Solutions Corp. Zedcor is a technology-enabled business that is changing how physical security services are provided to businesses. Zedcor operates throughout Canada with branches in British Columbia, Alberta, Manitoba and Ontario. The company has three main service offerings to customers across all market segments: (1) surveillance and live monitoring through its proprietary MobileyeZ security towers; (2) surveillance and live monitoring of fixed site locations; and (3) security personnel.

The company operates a fleet of over 500 proprietary MobileyeZ security towers, equipped with high-resolution, technology-based cameras, and monitors over 80 fixed site locations for customers across various industries. Video from security towers and fixed site locations is streamed to the company's central monitoring station, where video alarms are live verified and responded to based on customer requirements. Zedcor also offers high-level security guard services to enterprise-level customers which are looking to supplement video-based security for valuable, high-risk or mission-critical operational assets.

We seek Safe Harbor.