WANTED Technologies Reports Record First Quarter with Net Income of $460,000 ($0.019 per share) and 26% Revenue Increase

  • Net income of $458,504 ($0.019 per share) in the first quarter of fiscal 2014, compared to a net income of $116,972 ($0.005 per share) in the first quarter of fiscal 2013, an increase of $341,532.

  • Revenues of $1,987,352, an increase of 26% or $409,391 compared to revenues of $1,577,961 in the first quarter of fiscal 2013.

  • EBITDA of $582,835 (29% of revenue), compared to an EBITDA of $238,463 in the first quarter of fiscal 2013, an increase of $344,371.

  • Growth of 19% in the Company's recurring revenue base in US dollars, from an annualized value of US$6.3 million as of September 30, 2012 to US$7.5 million as of September 30, 2013.

  • Continued growth in the Corporate HR sector, where the Company has focused its product and marketing efforts to provide detailed measurements of Talent Supply and Demand.

QUEBEC CITY, Nov. 19, 2013 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today first quarter revenues of $1,987,352 for the period ending September 30th, 2013, a 26% gain over the same period last year. Net income also rose to $458,504, compared to a net income of $116,972 for the same period last year. All amounts are in Canadian dollars, unless otherwise indicated.

The primary drivers of the Company's operational success are: the successful deployment of new business intelligence solutions serving the Corporate HR and Staffing sectors, the inherent efficiencies of delivering solutions via a cloud-based platform sitting atop a massive data warehouse of more than one billion talent supply & demand records, and the continued improvement of employment conditions in the economy of North America.

Quarterly revenues for the Corporate and Staffing segments were up 65% year-over-year. During the quarter, revenue from the Corporate and Staffing segments represented 37% of total revenue, compared with 28% of the total one year ago.

"Our cloud-based business model of delivering subscription-based business intelligence solutions from a centralized platform is a highly-efficient approach," said Bruce Murray, President and CEO. "We can deliver services to new clients without incurring significant new product and delivery costs," said Murray.

The Company's core product set describes supply and demand for talent, and helps human resource professionals 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.

"As the economy improves, employers experience both the need to fill new positions as well as replacing existing workers as turnover increases," said Murray. "Our products are designed to help employers fill positions faster and at a lower cost. This means less time spent with vacant positions and a reduction in recruiting expenses."

In addition to the gains in topline revenues, the Company continued to record strong gains in recurring revenues, EBITDA and net income.

As of September 30, 2013, contracts in hand, in US dollars, represented approximately 7.5 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately 6.3 million dollars as of September 30, 2012, an increase of 19%. At the end of first quarter of fiscal 2014, 70% of the recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 61% at the end of the corresponding quarter of the previous fiscal year.

Operating costs increased from $1,306,928 in the first quarter of fiscal 2013 to $1,407,650 in the first quarter of fiscal 2014, an increase of 8 percent. This increase of $100,722 is mostly the result of higher staffing levels to support ongoing product development efforts.

EBITDA of $582,835 for the three-month period ended September 30th, 2013 represented an increase of $344,372 over the same period last year. 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 first quarter of fiscal 2014 was $458,504, or $0.019 per share. This compares to a net income of $116,972 in the first quarter of fiscal 2013 or $0.005 per share. This improvement of $341,532 mostly results from an increase of $426,112 or 29% in gross margin, partially offset by an increase of $100,722 or 8% in operating expenses.

    Three-month periods ended
    September 30,
    2013   2012
    (unaudited)   (unaudited)
    $   $
Revenues 1,987,352   1,577,961
Cost of sales (73,693)   (90,414)
Gross Margin 1,913,659   1,487,547
         
Expenses      
  Research and development (609,795)   (546,516)
  Marketing and selling (469,605)   (446,213)
  Administrative (324,165)   (311,099)
  Other financial expenses (4,085)   (3,100)
    (1,407,650)   (1,306,928)
         
Operating income 506,009   180,619
         
Finance income 3,003   3,142
Finance costs (35,526)   (49,423)
         
Income before tax 473,486   134,338
         
Current tax expense (34,551)   (36,935)
Deferred tax income 19,569   19,569
         
Net income and comprehensive income 458,504   116,972
         
Basis and diluted net income per share 0.019   0.005


Financial position

As at September 30, 2013, WANTED had $3,712,142 in cash and term deposits, compared with $3,101,798 as at June 30, 2013. This increase of $610,344 in the Company's liquidity mostly results from positive cash flows of $729,700 generated from operating activities.

As at September 30, 2013, total assets stood at $8,269,085 compared with $7,658,548 as at June 30, 2013, an increase of $610,537.

Those interested will be able to access the information on the September 30, 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, November 19th, 2013.

The Company also announces the resignation of Guy Girard from the board of directors. Mr. Girard stated that he was pleased with the Company's progress but wished to devote more time to his other activities. Board chair André Forest said, "On behalf of all board members, I wish to thank Mr. Girard for his services and support to our business and its growth during his mandate." As a result of this resignation, the Company will present only five candidates for the position of director at the annual meeting of shareholders to be held on December 5, 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

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Wanted Technologies Corp.

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