WANTED Technologies Reports a 19% Increase in Revenues and Record Net Income of $372,000 for the Third Quarter

WANTED's Trailing 12-month EBITDA reaches $1.6 million as momentum in Human Capital marketplace accelerates

  • Revenues of $1,802,155, an increase of 19%, or $291,607 compared to revenues of $1,510,548 in the third quarter of fiscal 2012.
  • Record net income of $372,442 compared to a net income of $17,094 in the third quarter of fiscal 2012, an increase of $355,348.
  • Record EBITDA of $495,356, compared to an EBITDA of $138,882 in third quarter of fiscal 2012, an improvement of $356,474.
  • Fifth consecutive quarter of profitability, leading to an EBITDA of $1,576,027 and a net profit of $1,094,682 for the trailing twelve month period.
  • Growth of 25% in the Company's recurring revenue base in US dollars, from an annualized value of 5.7 million as of March 31st, 2012 to 7.1 million as of March 31st, 2013.
  • Year-over-year increase of 2,154 in the number of professionals from the Corporate and Staffing sectors receiving WANTED's data and analysis either through direct sales or through partnerships, to reach a total of 4,047 as of March 31st, 2013.

QUEBEC CITY, May 23, 2013 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today revenues of $1,802,155 for the third quarter ending March 31, 2013, a 19% gain over the same quarter of the prior year. For the first nine months of fiscal 2013, revenues increased 21% to reach $5,105,925, compared to $4,213,524 for the first nine months of the previous fiscal year. Net income also rose to $372,442 in the third quarter compared to a net income of $17,094 for the same period last year, leading to a cumulative net income of $821,222 for the first nine months of the year, an improvement of $1,108,292 over the net loss of $287,070 recorded during the first nine months of the prior year. All amounts are in Canadian dollars, unless otherwise indicated.

The positive results achieved during the third quarter reflect continued growth in sales of the Company's products into the Corporate and Staffing sectors. Quarterly revenues for the Corporate and Staffing segments were up 76% year-over-year.

"These results and the trend we have seen over the past five quarters are evidence of two, very positive attributes of our business," said Bruce Murray President and CEO.

"First, the Human Capital marketplace is moving more rapidly toward adopting a more information-driven approach to recruiting. And second, WANTED's business model of cloud-based analytical solutions is an extremely efficient way to deliver these products."

"WANTED's Corporate and Staffing clients use the Company's products to make more effective business decisions to recruit and retain the best employees. The core of the product set describes supply and demand for talent and helps human resource professionals focus on objective market data when making important personnel decisions."

As of March 31, 2013, contracts in hand, in US dollars, represented approximately 7.1 million dollars in annualized recurring revenues. This compares with 5.7 million dollars as of March 31, 2012, an increase of 25%. At the end of third quarter of fiscal 2013, 68% of the recurring revenue base, in US dollars, was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 58% one year earlier.

Total operating costs remained relatively flat with total expenses of $1,339,523 in the third quarter of fiscal 2013 compared to $1,317,920 in the third quarter of fiscal 2012, an increase of 1.6%. For the first nine months of fiscal 2013, operating costs totalled $3,950,155, compared to $4,116,003 for the first nine months of the previous fiscal year, a decrease of $165,848 or 4%. This decrease mostly result from a decrease of $294,124 in marketing and selling expenses, partially offset by an increase of $117,337 in research and development expenses.

EBITDA of $495,356 for the three-month period ended March 31, 2013 represented a positive variation of $356,474 over the corresponding period of prior year. For the first nine months of fiscal 2013, EBITDA totalled $1,181,350, compared to an EBITDA of $71,190 in the first nine months of the previous year, an improvement of $ 1,110,160. 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 third quarter of fiscal 2013 was $372,442, or $.016 per share. This compares to a net income of $17,094 for the third quarter of fiscal 2012 or $.001 per share. This improvement of $355,348 mostly results from an increase of $321,487 or 23% in gross margin combined with a positive variation in foreign exchange gains (losses) of $57,683. Net income for the nine-month period ended March 31, 2013 totalled $821,222, compared to a net loss of $287,070 for the same period of fiscal 2012, a positive variation of $1,108,292.

    Three-month periods ended   Nine-month periods ended
    March 31,   March 31,
    2013   2012   2013   2012
    (unaudited)   (unaudited)   (unaudited)   (unaudited)
    $   $   $   $
Revenues 1,802,155   1,510,548   5,105,925   4,213,524
Cost of sales (103,087)   (132,967)   (289,263)   (363,115)
Gross Margin 1,699,068   1,377,581   4,816,662   3,850,409
                 
Expenses              
  Research and development (580,282)   (492,372)   (1,652,045)   (1,534,708)
  Marketing and selling (503,588)   (551,720)   (1,405,567)   (1,699,691)
  Administrative (249,315)   (265,621)   (878,551)   (863,671)
  Other financial expenses (6,338)   (8,024)   (13,992)   (17,750)
  Other     (183)       (183)
    (1,339,523)   (1,317,920)   (3,950,155)   (4,116,003)
                 
Operating income (loss) 359,545   59,661   866,507   (265,594)
                 
Finance income 34,075   2,452   10,947   26,882
Finance costs (2,264)   (30,474)   (7,249)   (9,554)
                 
Income (loss) before tax 391,356   31,639   870,205   (248,266)
                 
Current tax expense (38,483)   (34,114)   (107,690)   (97,511)
Deferred tax income 19,569   19,569   58,707   58,707
                 
Net income (loss) and comprehensive income (loss) 372,442   17,094   821,222   (287,070)
                 
Net income (loss) per share :              
  Basic 0.016   0.001   0.034   (0.012)
  Diluted 0.015   0.001   0.034   (0.012)

 

Financial position

As at March 31, 2013, WANTED had $2,761,322 in cash and temporary investments, compared with $2,095,031 as at June 30, 2012, an increase of $666,291. This increase in the Company's liquidity is the result of positive cash flows from operating activities of $837,694, partially offset by cash flows used by investing activities of $29,526 and cash flows used by financing activities of $141,877 during the first nine months of the year.

As at March 31, 2013, total assets amounted to $7,122,338 compared with $6,428,932 as at June 30, 2012, an increase of $693,406.

Those interested will be able to access the information on the March 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 Thursday, May 23, 2013.

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 800 million 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: (418) 523-6663, ext. 222
Mr. Martin Auclair, VP Finance and CFO
Tel: (418) 523-6663, ext. 337

Profil de l'entreprise

WANTED TECHNOLOGIES CORP.

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