News Column

People Corporation Announces Record Results for 3rd Quarter

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TORONTO, ONTARIO -- (Marketwired) -- 07/16/13 -- People Corporation (TSX VENTURE: PEO) -

Highlights for the nine months ended May 31, 2013:

-- Revenue growth of 16.5% to $23.8 million;-- Adjusted EBITDA growth of 51.0% to $3.4 million;-- Recognized as part of PROFIT 500, ranking as one of Canada's fastest growing companies; and-- Hamilton + Partners transaction closed subsequent to quarter-end, as the largest acquisition to date, establishing a strong presence in Western Canada Summary Financial Results---------------------------------------------------------------------------- 3 months 3 months 9 months 9 months ended ended ended ended May 31, May 31, May 31, May 31, 2013 2012 2013 2012----------------------------------------------------------------------------Revenue $ 8,665,624 $ 6,544,962 $ 23,817,531 $ 20,446,677----------------------------------------------------------------------------Adjusted EBITDA $ 1,325,069 $ 560,101 $ 3,425,562 $ 2,268,037----------------------------------------------------------------------------Net income $ 418,446 $ 30,518 $ 841,076 $ 552,654----------------------------------------------------------------------------Adjusted EBITDA per share (Basic) $ 0.040 $ 0.017 $ 0.104 $ 0.069----------------------------------------------------------------------------

People Corporation (the "Company") today announced record financial results for the nine-months ended May 31, 2013, which included revenue and Adjusted EBITDA of $23.8 million and $3.4 million, respectively. This represents period-over-period revenue growth of 16.5% and Adjusted EBITDA growth of 51.0%.

"These financial results demonstrate the shareholder value generated from the execution of People Corporation's strategic plan," said Laurie Goldberg, Chairman and CEO of the Company. "Our focus on both organic growth and acquisitive growth is providing positive outcomes for all the Company's stakeholders."

In addition to organic growth initiatives, the Company continues to experience significant momentum in its acquisition-based growth efforts. Resulting from investments in its Corporate Development team combined with unique partner and client value propositions, the Company has closed four strategically important acquisitions this fiscal year. Effective July 8, 2013, the Company announced the concurrent acquisitions of Employee Benefits Inc., Disability Concepts Inc. and 6814409 Canada Incorporated, operating under the brand Hamilton + Partners. This transaction establishes a strong presence in Western Canada with the addition of the preeminent group benefits and disability insurance consulting firm in the Alberta market.

"The recent acquisition of Hamilton + Partners significantly expands People Corporation's presence in Western Canada," continued Mr. Goldberg. "Taking this key step into the Alberta market is an important milestone in our quest to build the premier group benefits, group retirement and human resource services company in Canada."

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, the PROFIT 500 ranks Canadian businesses by their revenue growth over five years.

Financial Results

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

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

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 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 (

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.

People Corporation
Brevan Canning
Investor Relations Inquiries
(204) 295-8860

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