WANTED Technologies Reports a 37% Revenue Increase with $2.4 Million and Record Profit for the Second Quarter of Fiscal 2014
WANTED leverages "big data" in the Human Capital Marketplace to achieve all-time highs in revenue and EBITDA
Revenues of $2,360,917, an increase of 37% or $635,108 compared to
revenues of $1,725,809 in the second quarter of fiscal 2013. Excluding
a significant one-time, non-recurring revenue agreement in the quarter,
revenues grew 21% over the prior year.
Net income of $1,015,618 ($0.042 per share) compared to a net income of
$331,808 ($0.014 per share) in the second quarter of fiscal 2013, an
increase of $683,810.
EBITDA of $1,215,854, compared to an EBITDA of $447,530 in the second
quarter of fiscal 2013, an increase of $768,324.
Net income and EBITDA for the second quarter of fiscal 2014 positively
affected by the recording of non-recurring tax credits receivable
amounting to $482,640.
Growth of 25% in the Company's recurring revenue base in US dollars,
from an annualized value of US$6.5 million as of December 31, 2012 to
US$8.1 million as of December 31, 2013.
Significant agreement with a financial services firm seeking to leverage
WANTED historical database of more than one billion records. The
contract has an aggregate value of US$1.08 million over 12 months,
US$900,000 of which represents non-recurring revenue.
QUEBEC CITY, Feb. 18, 2014 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today revenues of $2,360,917 for the second quarter ending December 31, 2013, a 37% gain over the same quarter of the prior year. For the first six months of fiscal 2014, revenues increased 32% to reach $4,348,269, compared to $3,303,770 for the first six months of the previous fiscal year. Net income also rose to $1,015,618 in the second quarter compared to a net income of $331,808 for the same period last year, leading to a cumulative net income of $1,474,122 for the first half of the year, an improvement of $1,025,342 over the prior year. All amounts are in Canadian dollars, unless otherwise indicated.
During the second quarter of fiscal 2014, net income was positively affected by the recognition of non-recurring tax credits totalling $482,640. Net income for the second quarter was also impacted favourably by the signature of a significant contract that resulted in non-recurring revenues of $273,574. Additional non-recurring revenues of approximately US$640,000 associated with this contract are expected to be recorded in the third quarter of fiscal 2014.
This significant contract executed during the second quarter demonstrated how the Company's proprietary analytical processes can convert a sizeable data warehouse of information into compelling products. In this instance, the Company has shown how its database of more than one billion records on the supply and demand for talent can enable financial services companies making better analytical decisions. This type of application of large data assets is an example of how "big data" is beginning to transform business decision-making.
Quarterly revenues for the Corporate and Staffing segments were up 71% year-over-year. During the quarter, revenue from the Corporate and Staffing segments represented 36% of total revenue, compared with 29% of the total one year ago.
"In addition to the one significant non-recurring agreement, we saw solid results across all of our customer segments," said Bruce Murray, President and CEO. "This includes new client agreements and upgrades in the Corporate HR sector; continued growth in the Staffing segment and solid renewal rates in the Government and Media segment," said Murray.
The Company's core product set describes supply and demand for talent, and helps human resource professionals and others focus on objective market data when making important personnel decisions. As employers are adding more and more employees, the competition for rare talent rises, and the Company's products and services become more essential.
"WANTED benefits from the continued improvement in the economy, and in particular, from growth in the employment sector," said Murray. "All segments of our customer base are becoming more proficient in the use of analytics to drive their businesses, and WANTED's cloud-based tools are designed to help them perform more efficiently."
In addition to the gains in topline revenues, the Company continued to record strong gains in recurring revenues, EBITDA and net income.
As of December 31, 2013, contracts in hand, in US dollars, represented approximately 8.1 million dollars in annualized recurring revenues. This compares with 6.5 million dollars as of December 31, 2012, an increase of 25%. At the end of second quarter of fiscal 2014, 70% of the recurring revenue base, in US dollars, was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 65% at the end of the previous fiscal year.
Following several quarters of uninterrupted profitability and following the recent signature of a significant contract, the Company recognized in the second quarter certain tax assets and a tax credits that it had accumulated over prior years. As a result, the Company recognized during the quarter ended December 31, 2013 an amount of $482,640 as a non-current "Tax credits receivable" which have been applied as a reduction in "Research and development expenses".
Excluding the recognition of the $482,640 tax credits against the research and development expenses described above, operating costs would have increased to $1,715,306 in the second quarter of fiscal 2014, up $411,600 from the $1,303,706 recorded in the second quarter of fiscal 2013. For the first six months of fiscal 2014, and excluding the above noted tax credits adjustments, operating costs would have totalled $3,122,956, compared to $2,610,632 for the first six months of the previous fiscal year, an increase of $512,324 or 20 percent. The increase in operating costs is mostly due to deploying additional software development resources to accelerate the release of new features and product enhancements. The Company expects to continue to increase the size of its research and development team to accelerate its development and release of new products. It also expects to increase investments in sales and marketing to increase awareness of the Company's products and to maintain consistent levels of revenue growth.
|Three-month periods ended||Six-month periods ended|
|December 31,||December 31,|
|Cost of sales||(76,336)||(95,760)||(150,029)||(186,176)|
|Research and development||(226,971)||(525,248)||(836,766)||(1,071,763)|
|Marketing and selling||(530,405)||(455,767)||(1,000,010)||(901,979)|
|Other financial expenses||(5,270)||(4,554)||(9,355)||(7,654)|
|Income before tax||1,098,631||344,511||1,572,117||478,849|
|Current tax expense||(38,265)||(32,272)||(72,816)||(69,207)|
|Deferred tax income (expense)||(44,748)||19,569||(25,179)||39,138|
|Net income and comprehensive income||1,015,618||331,808||1,474,122||448,780|
|Basic net income per share||0.042||0.014||0.016||0.019|
|Diluted net income per share||0.041||0.014||0.059||0.019|
EBITDA of $1,215,854 for the three-month period ended December 31, 2013 represented a positive variation of $768,324 over the corresponding period of prior year. For the first six months of fiscal 2014, EBITDA totalled $1,798,689, compared to an EBITDA of $685,993 in the first six months of the previous year, an improvement of $ 1,112,696. As noted above, the EBITDA was positively affected by non-recurring tax credits amounting to $482,640 recorded in the second quarter of fiscal 2014. 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.
The net income for the second quarter of fiscal 2014 was $1,015,618 or $0.042 per share. This compares to a net income of $331,808 or $0.014 per share for the second quarter of fiscal 2013. This improvement of $683,810 mostly results from an increase of $654,532 or 40% in gross margin, partially offset by an increase, before tax credits and deferred tax adjustments, of $411,600, or 32%, in operating costs. The tax credits amounting to $482,640 recorded in the second quarter of fiscal 2014 also contributed to the increase in net income. Net income for the six-month period ended December 31, 2013 totalled $1,474,122 or $0.061 per share, compared to a net income of $448,780 or $0.019 per share for the same period of fiscal 2013, a positive variation of $1,025,342.
As at December 31, 2013, WANTED had $3,655,089 in cash and temporary investments, compared with $3,101,798 as at June 30, 2013, an increase of $553,291. This increase in the Company's liquidity is mostly the result of positive cash flows from operating activities of $701,271 driven by the increased profitability. The positive cash flows from operating activities were partially offset by cash flows used by investing activities of $98,421 and cash flows used by financing activities of $49,559 during the first six months of the year.
As at December 31, 2013, total assets amounted to $9,077,868 compared with $7,658,548 as at June 30, 2013, an increase of $1,419,320 mostly resulting from increased cash of $553,291 and tax credits receivable of $482,640 recorded in the second quarter ended December 31, 2013. Property, plant and equipment also increased by $174,802 over the last six-month period.
Those interested will be able to access the information on the December 31, 2013 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, February 18, 2014.
About WANTED Analytics™
WANTED Analytics™ helps recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics™ brings together, for the first time, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions.
Clients 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.
About WANTED Technologies Corporation
WANTED Technologies (TSX-V:WAN) provides real-time business intelligence for the talent marketplace. Founded in 1999, the company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than 1 billion unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.
WANTED is also the exclusive data provider for The Conference Board's Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Any statement that appears prospective shall not be interpreted as such.
SOURCE WANTED Technologies Corp.For further information:
Mr. Bruce Murray, President and CEO
Tel: (212) 242-6140
Mr. Martin Auclair, VP Finance and CFO
Tel: (418) 523-6663, ext. 337