People Corporation Announces Record Financial Results for the Second Quarter of Fiscal 2015
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 04/27/15 -- People Corporation (the "Company") (TSX VENTURE: PEO) today announced record financial results for the second quarter of fiscal 2015.
"Continued strength in People Corporation''s results, as demonstrated by the second quarter financial performance, is evidence that the Company''s organic and acquisition growth strategy is working," commented Laurie Goldberg, Chairman and Chief Executive Officer. "Once again, we continue our trend of year-over-year increases in quarterly revenue and Adjusted EBITDA. Furthermore, organizational changes at the senior level and a significantly expanded credit facility announced in the first quarter have strengthened our ability to execute on this strategy."
Highlights of Financial Results for the three and six months ended February 28, 2015
Financial Results from Operations
Driven by organic growth and ongoing margin improvements, the Company announced financial results for the second quarter, continuing its trend of year-over-year growth in quarterly results. For the quarter ended February 28, 2015, revenues increased 7.9% to $12.0 million, and Adjusted EBITDA grew by 5.5% to $2.5 million.
Revenue for the quarter ended February 28, 2015 was $11.9 million, which represents an increase of $870.8 thousand, or 7.9%, over the comparative period in fiscal 2014. Approximately $679.8 thousand or 78.1% of the increase represents organic growth for the quarter resulting from the addition of new clients added by the existing and expanded benefits team, as well as additional revenue from existing clients. The balance of the revenue growth, $191.0 thousand or 21.9%, was attributable to acquisitions completed during the 2014 fiscal year. The Company acquired Bryan H. Lupe and Associated Ltd. in May 2014 and Fairles Benefit Services Inc. in June 2014 and, as such, the related revenue is included in fiscal 2015''s results, but was not in the comparable period in fiscal 2014. Revenue for the six months ended February 28, 2015 totalled $23.0 million, which represents an increase of $2.0 million, or 9.7%, over the first six months of fiscal 2014.
The Company has made significant organizational investments to build scale in a sector where such investments are increasingly a competitive advantage. Accordingly, the Company has historically reported Operating Income before Corporate Costs in order to assess the results of operations before consideration of these ongoing corporate investments. For the quarter ended February 28, 2015, Operating Income before Corporate Costs was $3.7 million, which represents an increase of $534.5 thousand, or 17.0%, over the comparative period in fiscal 2014. For the six months ended February 28, 2015, Operating Income before Corporate Costs totalled $6.4 million, an increase of $571.9 thousand, or 9.8%, over the first six months of fiscal 2014.
Adjusted EBITDA for the quarter ended February 28, 2015 was $2.5 million, representing an increase of 5.5%, or $128.7 thousand, as compared to the same period in fiscal 2014. Adjusted EBITDA as a percentage of revenue decreased to 20.6% from 21.0% in the same period of fiscal 2014. For the six months ended February 28, 2015, Adjusted EBITDA totalled $4.7 million, an increase of $477.9 thousand, or 11.4%, over the first six months of fiscal 2014, and Adjusted EBITDA margin increased to 20.2% compared to 19.9% for the first six months of fiscal 2014. The growth in Adjusted EBITDA is primarily the result of organic growth initiatives to generate additional revenue from existing clients and from additions to the client base net of related variable compensation and business development costs. These factors are offset by investments in leadership positions, occupancy costs and other expenditures to support the Company''s strategic plan.
Summary Financial Position
The Company continues to be well-positioned to execute on its growth strategy, with a strong financial position and ready access to financial capital.
The Company had cash balances of $3.7 million as at February 28, 2015, an increase of $1.0 million as compared to August 31, 2014. In addition to its cash resources, as previously disclosed, during the first quarter the Company entered into an expanded credit facility agreement with its senior lender that totals $35 million of credit capacity, including a $7 million term loan, a $5 million operating revolving facility and a $23 million acquisition revolving facility. As of February 28, 2015, the Company had drawn the $7 million term loan and had $28 million of unused credit capacity available. The credit facility agreement also has an Accordion Feature, which provides for an option, subject to the satisfaction of certain terms and conditions, to increase the Acquisition Revolver by up to $15 million of additional capacity bringing the overall credit capacity up to $50 million.
In addition to the credit facility with its senior lender, as of February 28, 2015, the Company had $3.1 million owing to vendors from previous acquisitions, of which $1.5 million is due in the next twelve months.
The complete Financial Statements and Management''s Discussion and Analysis for the quarter ended February 28, 2015, along with additional information about the Company and all of its public filings are available at .
Strategic and Operational Highlights for the First Six Months of Fiscal 2015
The Company continues to make significant progress in executing its strategic plan, pursuing growth opportunities both organically and through acquisitions in which new operating entities become part of the People Corporation group of companies. As part of this, the Company continues to invest in people, technology and other organizational resources to build its organizational capabilities. Some of the notable milestones from the first six months of fiscal 2015 include:
About People Corporation
People Corporation is a national provider of group benefits, group retirement and human resource services. The Company has 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. The Company''s industry experts provide uniquely valuable insight while customizing an innovative suite of services to the specific needs of its clients. Whatever your sector, whatever your scale, putting People Corporation''s 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", "intends", "likely", 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, Adjusted EBITDA and Operating Income before Corporate Costs 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, Adjusted EBITDA and Operating Income before Corporate Costs 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, Adjusted EBITDA and Operating Income before Corporate Costs 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, 2015, 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.
Contacts:
People Corporation
Investor Relations Inquiries:
Keith McMahon
(204) 940-3988
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Datum: 27.04.2015 - 06:30 Uhr
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