People Corporation Announces Record First Quarter Results
TORONTO, ONTARIO--(Marketwired - Jan 27, 2014) - People
Corporation (the "Company") (TSX-VENTURE:PEO) today announced
record financial results for the first quarter of fiscal 2014.
"We continue to demonstrate company-wide positive momentum as an
outcome of our strategic initiatives, the impact of acquisitions
and from driving organic growth. As a result of this momentum, I am
pleased that we are once again reporting record financial results
for the first quarter of 2014," said Laurie Goldberg. "The
Company's financial performance is a reflection of the value we can
deliver to shareholders from a focus on our strategic plan while
ensuring that we continue to be a client-centric company."
Highlights of Financial
Results for the three months ended November 30, 2013
Financial Results from Operations
People Corporation's financial results for the quarter ended
November 30, 2013 are the result of ongoing focused execution of
the Company's organic growth initiatives, growth from acquisitions,
and continued operational discipline. For the quarter ended
November 30, 2013, revenues increased 39.3% to $9.8 million, and
Adjusted EBITDA grew by 107.3% to $1.85 million.
|
3 months ended Nov 30, 2013 |
3 months ended Nov 30, 2012 |
Increase |
Revenue |
$ |
9,768,753 |
|
$ |
7,013,582 |
|
39.3 |
% |
|
|
|
|
|
|
|
|
|
EBITDA before corporate costs |
$ |
2,622,148 |
|
$ |
1,718,537 |
|
52.6 |
% |
EBITDA before corporate costs margin |
|
26.8 |
% |
|
24.5 |
% |
2.3 |
% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
1,850,233 |
|
$ |
892,329 |
|
107.3 |
% |
Adjusted EBITDA margin |
|
18.9 |
% |
|
12.7 |
% |
6.2 |
% |
|
|
|
|
|
|
|
|
|
Net income |
$ |
398,222 |
|
$ |
244,616 |
|
62.8 |
% |
Revenue for the quarter ended November 30, 2013 was $9.8
million, which represents an increase of $2.8 million, or 39.3%,
over the comparative period in fiscal 2013. Approximately $912
thousand or 13.0% of the increase represents organic growth for the
quarter resulting from additional revenue from existing clients, as
well as the addition of new clients. The balance of the revenue
growth, $1.8 million or 26.3%, was attributable to the acquisitions
completed during the 2013 fiscal year.
The Company monitors EBITDA before corporate costs in order to
assess the results of operations before consideration of the
ongoing corporate investments required to position the Company for
future growth. For the quarter ended November 30, 2013, EBITDA
before corporate costs was $2.6 million, which represents an
increase of $0.9 million, or 52.6%, over the comparative period in
fiscal 2013. The Company also strengthened the EBITDA before
corporate costs margin to 26.8% from 24.5% in the comparative
period in fiscal 2013.
Adjusted EBITDA for the quarter ended November 30, 2013 was
$1.85 million, representing an increase of 107.3%, or $957
thousand, as compared to the same period in fiscal 2013. Adjusted
EBITDA margin increased to 18.9% from 12.7% in the same period of
fiscal 2013. The growth in Adjusted EBITDA and margin improvements
are a result of the operating leverage in the business, as the
revenue associated with past investments in operations effectively
increases operating earnings with limited additional incremental
investment or expense of corporate costs.
For the quarter ended November 30, 2013, the Company reported
net income of $398 thousand, representing an increase of $153
thousand as compared to the prior period. The increase in net
income is due to growth in Adjusted EBITDA offset by incremental
interest and other finance costs attributable to debt incurred in
connection with acquisitions completed during the year and to
various non-cash expenses related to the accounting entries for
items such as amortization of intangible assets.
Summary Financial Position
The Company's financial position remains strong, and it is
well-positioned to continue to execute on its growth strategy based
on contributions from both organic and acquisition-based
initiatives. In addition, the financial position of the Company
will accommodate the ongoing operational investments required to
ensure the Company is delivering upon its value proposition to its
clients, and achieving operational excellence and enhanced
profitability.
The Company had cash balances of $2.9 million as at November 30,
2013, an increase of $474 thousand as compared to August 31, 2013.
In addition to its cash resources, the Company has a credit
facility of $24.5 million with a senior lender, against which $14.0
million balance remained owing as of November 30, 2013. In addition
to the credit facility with its senior lender, as of November 30,
2013, the Company has $4.7 million owing to vendors from previous
acquisitions, of which $1.9 million is due in the next twelve
months.
The complete Financial Statements and Management's Discussion
and Analysis for the quarter ended November 30, 2013, along with
additional information about the Company and all of its public
filings are available at www.sedar.com.
Progress on Execution of Strategic Plan and Ongoing Momentum
The Company continues to execute on its strategic plan by
building upon and growing operational capabilities. More
specifically, it is investing in people, expanding on its value
proposition, and providing responsive solutions to clients. Some of
the Company's notable milestones from the first quarter of 2014
include:
- Enhanced the consulting team to support ongoing execution of
the Company's strategic plan and ensure appropriate resources are
available to meet the needs of new and existing clients.
Specifically, the Company was successful in being able to attract
top talent from within the group benefits, group retirement and HR
consulting sectors, as well as adjacent industries.
- Launched the first ever People Corporation Academy
bringing new consultants from across the country together for
technical training and to obtain in-depth knowledge of the
Company's service offerings and solutions so that these consultants
can bring the best resources to each client engagement.
- Expanded the Company's group benefit and human resource
consulting service offerings into the Saskatchewan
marketplace.
- Rolled out a new HR Outsourcing product line in the Manitoba
marketplace in order to take advantage of a growing demand for HR
resources and support for small employers;
- Launched an enhanced stop-loss product offering for clients on
the Company's self-insured benefits third party adminstration
platform; and
- Launched myWellness product with a focus on mental health for
the Company's student benefit clients.
About People
Corporation
People Corporation is a national provider of group benefits,
group retirement and human resource services. We have offices
across Canada, each led by a team of experts and backed by the
resources of a national company that is traded on the TSX-V. Our
industry experts provide uniquely valuable insight while
customizing our innovative suite of services to the specific needs
of our clients. Whatever your sector, whatever your scale, putting
our expertise and proven track record to work will make a
difference to your people and your bottom line.
Further information is available at
www.peoplecorporation.com.
Forward-Looking
Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws, such as information
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts. Use of
words such as "may", "will", "expect", "believe", or other words of
similar effect may indicate forward-looking information including
the completion of the transaction, the impact of that transaction
on our earnings and cash flow, and the anticipated benefits of the
transaction. This information is not a guarantee of future
performance and is subject to numerous risks and uncertainties,
including those described in our publicly filed documents (which
are available on SEDAR at www.sedar.com). Those risks and
uncertainties include: our ability to maintain profitability and
manage growth; strong competition from other consultants and
changes in the current legislation could result in significant
competition from the banking industry; failure of information
systems and technology; dependence on key clients; seasonality of
revenues and the resulting possible impairment on working capital;
reliance on key professionals; additional financing may be required
and may not be available under terms favourable to us; there can be
no assurance that any suitable future acquisition will be available
to us or that, if available, the terms of the acquisition will be
favourable to us; and a change in general economic conditions. Many
of these risks and uncertainties can affect our actual results and
could cause our actual results to differ materially from those
expressed or implied in any forward-looking information made by us
or on our behalf. Given these risks and uncertainties, investors
should not place undue reliance on forward looking information as a
prediction of actual results. All forward-looking information in
this news release is qualified by these cautionary statements. This
information is made as of the date of this news release and, except
as required by applicable law, we undertake no obligation to
publicly update or revise any forward looking information, whether
as a result of new information, future events or otherwise.
Additionally, we undertake no obligation to comment on analyses,
expectations or statements made by third parties in respect of the
Company, its financial or operating results or its securities.
Non-IFRS Financial
Measures
EBITDA and Adjusted EBITDA are not recognized measures under
International Financial Reporting Standards ("IFRS"). Management
believes that in addition to revenue, net income and cash flows,
the supplemental measures of EBITDA and Adjusted EBITDA are useful
as they provide investors with an indication of earnings from
operations before debt management and non-recurring and other
adjustments. Investors should be cautioned, however, that EBITDA
and Adjusted EBITDA should not be construed as an alternative to
net income determined in accordance with IFRS as an indicator of
the Company's performance. The Company's method of calculating
these measures may differ from other public issuers and,
accordingly, may not be comparable to similar measures used by
other issuers. For a detailed explanation of how the Company's
non-IFRS measures are calculated, please refer to the Company's
MD&A filing for the three months ended November 30, 2013, which
can be accessed via the SEDAR Web site (www.sedar.com).
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 press release.
Investor Relations Inquiries:People CorporationBrevan
Canning(204)
295-8860brevan.canning@peoplecorporation.comwww.peoplecorporation.com
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