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People Corporation Announces Continued Growth for 2nd Quarter

Apr 29 2013 12:00AM

Marketwire

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TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 -- People Corporation (TSX VENTURE: PEO) -

Highlights for the six months ended February 28, 2013:

-- Revenue growth of 9.0% to $15.1 million;-- Adjusted EBITDA growth of 23.0% to $2.1 million;-- Acquisition and organic growth initiatives are successfully driving financial results;-- Completed three acquisitions generating incremental revenue and EBITDA; and-- Continued to investment in people, with new Benefit Consultants and senior management roles hired.



Summary Financial Results

--------------------------------------------------------------------------- 3 months 3 months 6 months 6 months ended ended ended ended February 28, February 29, February 28, February 29, 2013 2012 2013 2012---------------------------------------------------------------------------Revenue $ 8,138,325 $ 7,274,848 $ 15,151,907 $ 13,901,714---------------------------------------------------------------------------Adjusted EBITDA $ 1,208,165 $ 923,931 $ 2,100,494 $ 1,707,935---------------------------------------------------------------------------Net income $ 178,014 $ 366,175 $ 422,630 $ 522,133---------------------------------------------------------------------------Adjusted EBITDA per share (Basic) $ 0.037 $ 0.028 $ 0.064 $ 0.052---------------------------------------------------------------------------



People Corporation (the "Company") announces strong financial results for the quarter ended February 28, 2013, which included revenue and Adjusted EBITDA of $15.1 million and $2.1 million, respectively. This represents period-over-period revenue growth of 9.0% and Adjusted EBITDA growth of 23.0%.

"We continue to see strong momentum in achieving our overriding objective of growing the Company both through acquisitions and organic growth initiatives," said Laurie Goldberg, Chairman and CEO of the Company. "Our financial results are evidence of our recent success in this regard and we will continue to focus our efforts on capitalizing on our recent momentum."

"The investments we are making in proprietary products, the development of customized services and solutions, and the enhancements in our administration platforms will continue to benefit our clients, consultants and partners," continued Mr. Goldberg. "We expect investments combined with our recent success will continue to drive our growth."

Financial Results

Revenue for the three and six months ended February 28, 2013 was $8.1 million and $15.1 million, respectively. This represents $1.3 million (9.0%) of growth year-to-date and $0.9 million (11.9%) of growth for the quarter. The increase in revenue is largely attributable to the acquisitions of Bencom, Prosure, and JSL earlier in the fiscal year and organic revenue growth resulting from the addition of new clients from the Company's existing and expanded Benefits Consulting team.

Adjusted EBITDA for the three and six months ended February 28, 2013 was $1.2 million and $2.1 million, respectively. On a year-to-date basis, Adjusted EBITDA increased 23.0% or $393K as compared to the same period in 2012. For the quarter, Adjusted EBITDA increased 30.8% or $284K. In addition to maintaining a focus on cost containment, the Company continues to invest significantly in growth initiatives, including the addition of Benefit Consultants, development of proprietary products and other service related offerings. As these initiatives gain momentum, as demonstrated in recent quarters, Adjusted EBITDA will be positively impacted.

Net Income for the three and six months ended February 28, 2013 was $178K and $422K, respectively. This represents a decrease of $188K for the quarter and $100K year-to-date. After having given effect to the above-noted reasons for the increase in operating results, the decrease in net income is primarily due to acquisition costs, the amortization of intangible assets associated with the acquisitions and incremental finance expense resulting from debt issued in connection with the acquisitions.

The Company's financial position remains very strong. Cash balances were $3.2 million as at February 28, 2013, an increase of $14K since August 31, 2012. In addition to these cash resources, the Company continues to have access to its $14.5 million credit facility with CIBC, $5.7 million of which was drawn as of April 24, 2013.

The Financial Statements and Management Discussion and Analysis for the three and six months ended February 28, 2013, along with additional information about the Company and all of its public filings are available at www.sedar.com.

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 six months ended February 28, 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.



Contacts:
People Corporation
Brevan Canning
Investor Relations Inquiries
(204) 295-8860
brevan.canning@peoplecorporation.com
www.peoplecorporation.com





Source: Marketwire


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