Mr. Goldberg went on to say; "We are also excited about the implementation and success of our Shared Services Division. Through our customized offering of proprietary products, services, and solutions we have been able to give our consultants a competitive edge to attract and retain clients, and to differentiate themselves in the Employee Benefit, Group Retirement and Human Resource areas. We are very pleased with this winning value proposition and have seen it result in unprecedented growth in new client additions and cross-collaboration of product offering throughout our existing client base."
In addition, the Company was recognized as part of the 25th annual PROFIT 500, the definitive ranking of Canada's Fastest-Growing Companies by PROFIT Magazine. Published in the Summer issue of PROFIT Magazine and online at PROFITguide.com, the PROFIT 500 ranks Canadian businesses by their revenue growth over five years.
Revenue for the three and nine months ended May 31, 2013 was $8.7 million and $23.8 million, respectively. This represents $2.1 million (32.4%) of growth for the quarter and $3.4 million (16.5%) of growth year-to-date. 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 nine months ended May 31, 2013 was $1.3 million and $3.4 million, respectively. On a year-to-date basis, Adjusted EBITDA increased 51.0% or $1.2 million as compared to the same period in 2012. For the quarter, Adjusted EBITDA increased 136.6% or $765 thousand.
Net Income for the three and nine months ended May 31, 2013 was $418 thousand and $841 thousand, respectively. This represents an increase of $388 thousand for the quarter and $288 thousand year-to-date. The increase in net income is primarily due to the above-noted reasons offset by increases 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 with cash balances of $2.3 million as at May 31, 2013, notwithstanding a decrease of $901 thousand since August 31, 2012. The decrease in cash from August 31, 2012 is primarily due to the use of operating funds as part of the consideration paid for three acquisitions closed prior to the end of the quarter.
In addition to cash resources, the Company has a credit facility with CIBC. In conjunction with the acquisition of Hamilton + Partners, the Company expanded its existing credit facility agreement with its senior lender from $14.5 million to $24.5 million, of which $15.1 million was drawn as of May 31, 2013.
The Financial Statements and Management Discussion and Analysis for the three and nine months ended May 31, 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.
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