Q3-2015 Highlights
- Revenues of $2,529,279, a
decrease of 16% or $470,379 compared
to revenues of $2,999,658 in the
third quarter of fiscal 2014. Note that revenues from the third
quarter of prior year included an amount of $345,862 from a reseller partner agreement that
terminated in June 2014, as well as a
significant non-recurring revenue of $703,414 derived from a single agreement.
Excluding the revenues from this partner and from this
non-recurring agreement in the prior year, revenue grew
$578,897, or 30% over the prior
year.
- Growth of 31% in the Company's recurring revenue base in
Canadian dollars (15% in US dollar), from an annualized value of
CAD$8.1 million as of March 31, 2014 to CAD$10.6
million as of March 31,
2015.
- Net income of $239,942
($0,010 per share) compared to a net
income of $777,491 ($0,032 per share) in the third quarter of fiscal
2014, a decrease of $537,549 as the
Company continues to ramp up its resources and infrastructure to
accelerate revenue growth.
- Despite an increased level of investments to accelerate growth,
EBITDA for the third quarter remained positive at $410,504. This compares to an EBITDA of
$1,275,793 in the third quarter of
fiscal 2014, a negative variation of $865,289.
- Release in January 2015 of WANTED
Analytics international with a complete candidate supply and jobs
demand database and analytics solution for the UK, China, Singapore, and Australia.
- WANTED continues to adapt its products and invest in direct
sales to accelerate the international deployment of its solution to
expand its global market footprint for its big data analytics
solutions in the Human Capital Management sector.
NEW YORK CITY and QUEBEC CITY, May 26,
2015 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), a
leading provider of real-time market intelligence and analytics for
staffing and workforce strategies, reported today revenues of
$2,529,279 for the third quarter
ending March 31, 2015, a 16% decrease
over the same quarter of the prior year. Note that revenues from
the third quarter of prior year included an amount of $345,862 from a reseller partner agreement that
terminated in June 2014, as well as a
significant non-recurring revenue of $703,414 derived from a single agreement.
Excluding the revenues from this partner and from this
non-recurring agreement in the prior year, revenue grew
$578,897, or 30% over prior year. For
the nine-month period ended March 31,
2015, the Company's total revenues were $7,154,966 compared to $7,347,927 for the corresponding period in the
previous fiscal year, a decrease of $192,961 or 3%. Excluding revenues of
$921,286 from the terminated reseller
and a non-recurring revenue of $976,989 from the first nine months of the prior
year, revenue grew by $1,705,314, or
31% during the first three quarters of fiscal 2015 compared to the
prior year.
The Company reported a net income of $239,942 ($0.010
per share) for the third quarter of fiscal 2015, compared to a net
income of $777,491 ($0.032 per share) in the third quarter of fiscal
2014, a negative variation of $537,549. For the nine-month period ended
March 31, 2015, net income of
$198,244 ($0.008 per share) was reported compared to a net
income of $2,251,613 ($0.093 per share) for the same period of fiscal
2014. Note that this decrease in net income for the nine-month
period mostly results from the combination of three specific
elements, the change in management, the issuance of 1,530,000 stock
options during the first nine months of the year, and a
non-recurring R&D tax credit recorded in the prior year, which
together, represent approximately $1,450,000 of this negative variance.
"WANTED delivered another solid quarter as we continue to
exploit an increasingly dynamic market for talent and broader
adoption generally of analytics solutions for recruiting and
workforce management. WANTED's recurring revenue book for the
Corporate sector, the fastest growth segment, grew 53% over the
past three quarters, with average revenue per customer up 18% over
the same period, reflecting increased penetration of and within
Fortune 1000 organizations and early traction upselling with
international data," said Meredith
Amdur, WANTED's President and CEO.
"We continued rolling out our international product line this
past quarter, formally launching at the HR Technology convention in
London in March and establishing a
full-time commercial presence there to serve the UK. Our
international product portfolio helps meet the market intelligence
needs of our current multinational customers and enhances the
overall value of our data assets as we extend our geographic
reach," Amdur said.
As of March 31, 2015, contracts in
hand, in Canadian dollars, had an approximate value of 10.6 million dollars in annualized recurring
revenues, an increase of 2.5 million
dollars or 31% over an annualized recurring revenue book of
8.1 million dollars as of
March 31, 2014. On a US dollar basis,
the contracts in hand increased 15%, from 7.3 million dollars as of March 31, 2014 to 8.4
million dollars as of March 31,
2015.
At the end of third quarter of fiscal 2015, 71% of the recurring
revenue base was supported by contracts from the Staffing,
Corporate and Government sectors. This compares to 66% at the end
of the corresponding quarter of the previous year.
Operating costs for the third quarter of fiscal 2015 totalled
$2,401,446, an increase of
$567,598, or 31%, over the same
quarter of prior year. For the first nine months of fiscal 2015,
operating costs totalled $7,044,688
compared to $4,474,164 for the first
nine months of the previous fiscal year, an increase of
$2,570,524 or 57%. Note that, as
mentioned earlier, approximately $1,450,000 of the negative variance during the
nine-month period is associated with the change in management, the
issuance of stock options during the during the first and second
quarters of the current year, and the non-recurring R&D tax
credit which reduced the prior year's second quarter expenses. The
remaining portion of the increase in operating costs is mostly due
to investments in research and development and marketing and
selling as the Company continues to innovate in the market and
expand its footprint, both in North
America and internationally.
|
|
Three-month periods
ended
|
|
Nine-month periods
ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenues
|
2,529,279
|
|
2,999,658
|
|
7,154,966
|
|
7,347,927
|
Cost of
sales
|
(114,088)
|
|
(110,383)
|
|
(284,950)
|
|
(260,412)
|
Gross
Margin
|
2,415,191
|
|
2,889,275
|
|
6,870,016
|
|
7,087,515
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Research and
development
|
(925,998)
|
|
(680,105)
|
|
(2,546,343)
|
|
(1,516,871)
|
|
Marketing and
selling
|
(895,021)
|
|
(649,743)
|
|
(2,330,243)
|
|
(1,649,753)
|
|
Administrative
|
(568,922)
|
|
(496,483)
|
|
(2,143,796)
|
|
(1,290,668)
|
|
Other financial
expenses
|
(10,322)
|
|
(7,278)
|
|
(23,163)
|
|
(16,633)
|
|
Other
|
(1,183)
|
|
(239)
|
|
(1,143)
|
|
(239)
|
|
|
(2,401,446)
|
|
(1,833,848)
|
|
(7,044,688)
|
|
(4,474,164)
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
13,745
|
|
1,055,427
|
|
(174,672)
|
|
2,613,351
|
|
|
|
|
|
|
|
|
|
Finance
income
|
318,057
|
|
111,466
|
|
540,212
|
|
128,048
|
Finance
costs
|
(375)
|
|
(786)
|
|
(1,132)
|
|
(3,175)
|
|
|
|
|
|
|
|
|
|
Income before
tax
|
331,427
|
|
1,166,107
|
|
364,408
|
|
2,738,224
|
|
|
|
|
|
|
|
|
|
Current tax
expense
|
(107,207)
|
|
(156,789)
|
|
(244,408)
|
|
(229,605)
|
Deferred tax income
(expense)
|
15,722
|
|
(231,827)
|
|
78,244
|
|
(257,006)
|
|
|
|
|
|
|
|
|
|
Net income and
comprehensive income
|
239,942
|
|
777,491
|
|
198,244
|
|
2,251,613
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
0.010
|
|
0.032
|
|
0.008
|
|
0.093
|
Diluted net income
per share
|
0.010
|
|
0.031
|
|
0.008
|
|
0.090
|
Despite an increased level of investment to accelerate growth,
EBITDA remained positive at $410,504
for the third quarter of fiscal 2015, compared to an EBITDA of
$1,275,793 in the third quarter of
fiscal 2014, a negative variation of $865,289. For the first nine months of fiscal
2015, EBITDA totalled $661,871
compared to an EBITDA of $3,074,482
in the first nine months of the previous year, a decrease of
$2,412,611. EBITDA represents the net
income before net finance costs excluding gain or loss due to
variation in foreign exchange, income taxes on net income, and
amortization and impairment of property, plant and equipment and
intangible assets. As International Financial Reporting Standards
do not provide a standardized definition for this measure, it may
not be comparable to similar measures used by other companies.
|
|
|
RecReconciliation
of EBITDA to Net Income
|
|
|
|
Q3-2015
|
Q3-2014
|
9
mts-2015
|
9
mts-2014
|
|
|
|
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
|
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Net income for the
period
|
|
239,942
|
777,491
|
198,244
|
2,251,613
|
|
|
|
|
|
|
|
PLUS
(LESS):
|
|
|
|
|
|
|
Income tax
expense
|
|
91,485
|
388,616
|
166,164
|
486,611
|
|
Finance income -
net
|
|
(317,682)
|
(110,680)
|
(539,080)
|
(124,873)
|
|
Other financial
expenses
|
|
10,322
|
7,278
|
23,163
|
16,633
|
|
Amortization of
property, plant and equipment
|
|
95,182
|
70,120
|
265,055
|
209,364
|
|
Amortization of
intangible assets
|
|
-
|
40,770
|
81,525
|
122,310
|
|
Net gains on foreign
exchange
|
|
291,255
|
102,198
|
466,800
|
112,824
|
EBITDA
|
|
410,504
|
1,275,793
|
661,871
|
3,074,482
|
Net income for the third quarter of fiscal 2015 was $239,942, or $0.010
per share. This compares to a net income of $777,491 in the third quarter of fiscal 2014 or
$0.032 per share.
Financial position
As at March 31, 2015, WANTED had
$7,301,072 in cash and monetary
investments, including $4,077,067 in
redeemable term deposits. This compares to $6,724,870 in cash and monetary investments as at
June 30, 2014, an increase of
$576,202. This increase of
$576,202 in the Company's liquidity
is mostly the result of operating activities which, despite an
accelerated rhythm of investment, generated $929,342 in cash flows since June 30, 2014. The positive cash flows from
operating activities were however partially offset by purchases of
$452,743 in computer equipment and
infrastructure required to support new features, improve overall
response time and upgrade the overall development and production
infrastructure to support growth.
As at March 31, 2015, total assets
amounted to $12,966,111 compared with
$11,955,516 as at June 30, 2014, an increase of $1,010,595.
Those interested will be able to access the information on the
March 31, 2015 unaudited interim
consolidated financial statements, the notes thereto and the
management discussion and analysis via the Internet at
www.sedar.com and at the Company's website, www.wantedtech.com, as
of Tuesday, May 26, 2015.
About WANTED Technologies Corporation
WANTED Technologies helps organizations make intelligent hiring
decisions. Combining real-time, talent sourcing activity with
historical trends, the company's WANTED Analytics™ data science
tool uses Big Data to align HR and recruiting professionals with
global job market realities. WANTED transforms corporate HR into a
strategic tool by providing detailed competitive information about
employment trends, economic conditions, talent supply and demand,
and other pertinent job market statistics. Using data-driven
business intelligence, recruiters can develop comprehensive
workforce strategies and quickly find top candidates for key
positions. Equipped with insights based on exhaustive hiring data,
employers make smarter investments in talented personnel that
contribute to the long-term success of the enterprise.
WANTED Technologies (TSX-V:WAN) was founded in 1999 with offices
in Quebec City, Canada and
New York City. The company
currently maintains a database of more than one billion unique job
listings spanning more than 10 years and 11,000 occupational
categories.
WANTED Analytics is a cloud-based talent recruitment tool that
combines real-time job market information with historical data from
more than one billion records spanning ten years, 25,000 sources,
11,000 occupational categories, and serves 22 countries. This
global data source enables recruiting professionals to base
critical hiring decisions on job market realities, eliminating
hunches and guesswork. Professionals in the staffing, HR, RPO,
media, and government sectors use WANTED Analytics to find sales
leads, analyze employment trends, gather competitive intelligence,
forecast economic conditions, and source hard-to-fill
positions.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE WANTED Technologies Corp.