WINNIPEG, MANITOBA--(Marketwired - Jul 24, 2017) - People Corporation (the "Company") PEO today announced financial results for the quarter-ended May 31, 2017.

"I am pleased to once again report People Corporation's strong financial results for the third quarter. Revenue and EBITDA growth is due to recent acquisitions, including Sirius Benefit Plans, and strong organic performance," said Laurie Goldberg, Chairman and Chief Executive Officer. "The Company has shown its ability to leverage the strength of our partner firms as the foundation for a disciplined organization focused on common, client centered strategic objectives. As a result, People Corporation continues to deliver innovative solutions to fit the unique needs of its clients and provides consistently favorable returns for its stakeholders."

Highlights of Financial Results for the quarter-ended May 31, 2017

Financial Results from Operations

People Corporation's financial results for the quarter-ended May 31, 2017 reflect the focused execution of its strategic and operational plans, which include growth from acquisitions, organic growth initiatives, and operational discipline. The effect of the acquisition of Sirius Benefit Plans Inc. ("Sirius") is partially reflected in the results as the transaction closed April 12, 2017. As a result, 'run-rate' revenue and adjusted EBITDA on an annualized basis would be higher than those published in these financial results. For the three month period, revenues increased 34.2% as compared to the same period in fiscal 2016 to $28.0 million, and Adjusted EBITDA increased 56.9% to $5.4 million.

(In 000's, except percent amounts)	3 months ended May 31, 2017	3 months ended May 31, 2016	9 months ended May 31, 2017	9 months ended May 31, 2016
Revenue	$27,965.8	$20,835.0	$76,913.0	$55,486.5
Adjusted EBITDA before REI	$7,059.1	$4,908.5	$18,303.4	$13,674.6
Adjusted EBITDA	$5,430.0	$3,461.4	$14,390.6	$10,299.2
Net Income (loss)	$1,473.4	$231.7	$2,836.6	$102.4

For the three months ended May 31, 2017, the Company experienced revenue growth of $7.1 million (34.2%). The company recognized acquired growth of $3.8 million (18.3%) and organic growth of $3.3 million (15.9%). Organic growth is primarily from the addition of new clients from the Company's existing and expanded benefits consulting team, natural inflationary factors and incremental contributions from the acquisition of BPA in the prior year.

For the nine months ended May 31, 2017, the Company experienced revenue growth of $21.4 million (38.6%) due to contributions from current year acquisitions, prior year's acquisition of BPA and organic growth. The Company recognized acquired growth of $14.9 million (26.9%) and organic growth of $6.5 million (11.7%).

Adjusted EBITDA before REI is net income before finance expense, income tax expense, depreciation and amortization, acquisition, integration and reorganization costs, and share-based compensation expense before considering the retained economic interest ("REI") attributable to vendors and/or principals of acquired companies. For the three months ended May 31, 2017, the Company reported Adjusted EBITDA before REI of $7.1 million, representing an increase of $2.2 million (43.8%), as compared to the same period in fiscal 2016. The growth in Adjusted EBITDA before REI is primarily driven by contribution to run rates from acquisitions and the organic growth in third quarter revenue.

For the nine months ended May 31, 2017, the Company reported Adjusted EBITDA before REI of $18.3 million, representing an increase of $4.6 million (33.8%), as compared to the same period in fiscal 2016. The increase in Adjusted EBITDA is primarily due to factors similar to those affecting the three month period.

Adjusted EBITDA for the third quarter of fiscal 2017 was $5.4 million, representing an increase of $2.0 million (56.9%), as compared to the same period in fiscal 2016.

For the nine months ended May 31, 2017, the Company reported Adjusted EBITDA of $14.4 million representing an increase of $4.1 million (39.7%), as compared to the same period in fiscal 2016. The increase in Adjusted EBITDA for both periods is due to the factors affecting Adjusted EBITDA before REI, net of retained economic interest attributable to vendors and/or principals of acquired companies.

For the three months ended May 31, 2017, the Company reported an increase in Net Income of $1.2 million resulting from current year acquisitions; the acquisition of BPA in fiscal 2016; a reduction of acquisition, integration and reorganization costs; offset by an increase in acquisition-related amortization of intangible assets.

For the nine months ended May 31, 2017, the Company reported an increase in net income of $2.7 million, primarily due to factors similar to those affecting the three month period.

Acquisition of Sirius

Effective on April 12, 2017, the Company purchased 100% of the shares of Sirius, for a purchase price of $15.0 million, subject to post-closing adjustments. Sirius, founded in 1996 and based in Winnipeg, Manitoba, is a leading third party administrator in the small group segment of the Canadian group benefits market, and administers the employee benefit programs of several thousand small and medium sized companies located across Canada. Sirius has relationships with over 250 third party brokers, through which its products and services are distributed.

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. In addition, the financial position of the Company will accommodate the ongoing operational investments required to ensure the Company is delivering upon its value proposition to its clients, and achieving operational excellence and enhanced profitability.

The Company had cash balances of $14.4 million as at May 31, 2017. In addition to its cash resources, the Company maintains a credit facility agreement with its senior lender that totals $61.2 million of credit capacity. The credit facility consists of a $5.0 million revolving facility (the "Revolving Credit Facility"), a $22.2 million term loan (the "Term Loan"), and a $34.0 million revolving acquisition facility (the "Acquisition Revolver"). The credit facility agreement provide for an option (the "Accordion Feature"), subject to the satisfaction of certain terms and conditions, to increase the Acquisition Revolver by an additional $15.0 million of capacity, which would result in the size of the Acquisition Revolver being increased to $49.0 million, and overall credit capacity being increased to $76.2 million. After giving effect to the acquisition of Sirius, the Company had $22.2 million drawn against the Term Loan and $14.5 million drawn against the Acquisition Revolver. The company has $24.5 million of unused credit capacity before considering the Accordion Feature.

In addition to the credit facility with its senior lender, as of May 31, 2017, the Company had $3.4 million owing to vendors from previous acquisitions, of which $1.1 million is due in the next twelve months.

The complete Financial Statements and Management's Discussion and Analysis for the three and nine months ended May 31, 2017, along with additional information about the Company and all of its public filings are available at www.sedar.com.

Security Based Compensation Grants

The Company granted options to an officer of the Company to acquire a total of 100,000 shares of the Company. The options were granted in accordance with the Company's Security Based Compensation Plan (the "Plan"), established to reward directors, senior officers and employees based on individual and corporate performance, to align their interests with that of the Company and to provide for long-term incentives. These options have an average exercise price of $4.48 per share, have a term of eight years, will vest over five years and are otherwise subject to the terms of the Plan.

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 www.peoplecorporation.com.

Forward-Looking Information

This news release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements 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 a "forward-looking" statement. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Company's publicly filed documents (available on SEDAR at www.sedar.com). Those risks and uncertainties include the ability to maintain profitability and manage organic or acquisition growth, reliance on information systems and technology, reputation risk, dependence on key clients, reliance on key professionals and general economic conditions. Many of these risks and uncertainties can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on its behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes 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

The Company reports non-IFRS financial measures, including Standardized EBITDA, REI, Adjusted EBITDA before REI, and Adjusted EBITDA as key measures used by management to evaluate performance of the business, to compensate employees and to facilitate a comparison of quarterly and annual results of ongoing operations. Adjusted EBITDA is also a concept utilized in measuring compliance with debt covenants. The Adjusted EBITDA measure is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. While used to assist in evaluating the operating performance and debt servicing ability of the Company, readers are cautioned that Adjusted EBITDA as reported by the Company may not be comparable in all instances to Adjusted EBITDA as reported by other companies. 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 three and nine-months ended May 31, 2017, which can be accessed via the SEDAR Web site (www.sedar.com).

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.