Market Overview

People Corporation Announces Strong Year-end Results


TORONTO, ONTARIO--(Marketwire - Dec. 10, 2012) - People Corporation (TSX VENTURE:PEO) -

Highlights for the year ended August 31, 2012:

-- Revenue growth of 11.2% to a record $27.2 million, and EBITDA growth of
15.5%, to a record $2.7 million

-- Organic growth initiatives and investments in people successfully
driving financial results

-- Three acquisitions announced in the past four months, evidence of strong
momentum and value proposition to partners

Summary Financial Results

Year ended Year ended
August 31, August 31,
2012 2011 $ Increase % Increase
Revenue $ 27,157,385 $ 24,414,143 $ 2,743,242 11.2%
Corporate Costs $ 6,140,744 $ 5,632,042 $ 508,702 9.0%
Operating Income
(EBITDA) $ 2,710,379 $ 2,346,088 $ 364,291 15.5%
Net Income (loss) $ 726,153 $ 471,195 $ 254,958 54.1%
EBITDA per share
(Basic) $ 0.082 $ 0.071 $ 0.011 15.5%

People Corporation ("People Corporation", the "Company") announced today strong financial results for the year ended August 31, 2012, which included record revenue and EBITDA of $27.2 million and $2.7 million, respectively. This represents year-over-year growth of 11.2% in revenue and 15.5% in EBITDA. EBITDA Before Corporate Costs increased 9.0% year-over-year to $6.1 million.

Over the last several quarters the Company has invested significantly in people, including the addition of benefit consultants in Ontario, Quebec and Manitoba, the addition of a regional vice-president in Ontario and expansion of the client management team that has responsibility for client service and client support. These additions have driven organic revenue growth through the addition of new clients and the retention of existing clients, which in turn has contributed to the company's continued strong financial performance. Looking forward, the Company is focused on continuing its recruiting efforts in order to increase its team of consultants. At the same time, the Company's focus on other organic growth initiatives, including the development of proprietary products and customized services, is expected to contribute positively to revenue growth and increased profitability.

In addition to these organic growth initiatives, the Company has experienced significant momentum in its acquisition-based growth efforts. The Company has continued to invest in its Corporate Development team, bringing on an additional senior member to the function, and has gained strong traction with potential partners who are recognizing the strong value proposition that People Corporation brings to a transaction. During the past four months, the Company has announced three acquisitions:

-- JSL Inc. ("JSL"): Effective October 1, 2012, the Company acquired JSL, a
Vaughan, Ontario based group benefits and pension advisory company.

-- Prosure Group of Companies ("Prosure"): Effective November 1, 2012, the
Company acquired Prosure Insurance Agencies Ltd. and Prosure Group
Administrators Ltd., Toronto, Ontario based employee benefits solutions,
consulting and third party administration companies.

-- Bencom Financial Services Group Inc. ("Bencom"): Effective December 1,
2012, the Company acquired Bencom, a Waterloo, Ontario based group
benefits and pension advisory company. The acquisition of Bencom was the
Company's largest acquisition since launching its "Be in Business for
Yourself, Not by Yourself" acquisition program.

"Over the past two years, we have significantly strengthened the Company's foundation by bringing on a highly experienced leadership team, clarifying our unique value proposition and building our brand internally and externally," said Laurie Goldberg, Chairman and CEO of People Corporation. "We have differentiated ourselves in the Canadian marketplace and as a result, strong organic revenue growth and profitability are being realized, and our financial position is stronger than ever. This solid foundation has enabled us to attract our three new partners in JSL, Prosure and Bencom by providing access to proprietary products, additional resources and customized services that will benefit all our existing valued clients. I am truly excited about the momentum of People Corporation."

Financial Results

Revenue for the year ended August 31, 2012 was $27.2 million, up 11.2% from $24.4 million in the comparative period of fiscal 2011. The increase in revenue is largely attributable to organic revenue growth which resulted from the addition of new clients, which was a direct result of the investments the Company has made in additional Benefit Consultants. Furthermore, through the Company's Business Development division, the Company continues to see positive momentum from its proprietary inside sales system and lead generation capabilities.

For the year ended August 31, 2012, Operating Income before Corporate Costs grew 9.0% to $6.1 million, representing an increase of $508,702 as compared to the prior year. Annual EBITDA increased by $364,291 or 15.5% to $2.7 million. Operating Income before Corporate Costs and EBITDA were both influenced by several projects initiated by the Company during the year. The Company continues to invest significantly in revenue generating activities such as the addition of Benefit Consultants and the Business Development division, as well as in product development and other service related initiatives. In the short term, these investments will continue to put pressure on EBITDA margins, but as these initiatives gain traction, as demonstrated in recent quarters, a greater share of revenue will start flowing to the bottom line.

The Company had Net Income of $726,153 for the year ended August 31, 2012, as compared to Net Income of $471,195 in the same period in the prior year. After having given effect to the above-noted reasons for the increase in EBITDA, the increase in Net Income is primarily due to decreased finance expense resulting from the repayment of long-term debt. Basic earnings per share was $0.022 for the year ended August 31, 2012, compared to $0.014 for the same period in the prior year.

The Company's financial position remains very strong. Cash balances were $3.2 million as at August 31, 2012, an increase of $1.9 million since August 31, 2011. The increase in cash resulted from positive cash flows from operating activities and normal seasonal cash impacts, taking into account the net repayment of $853,910 in long-term debt over the course of the year. In addition to these cash resources, the Company continues to have access to its $14.5 million credit facility with CIBC, $2.1 million of which was drawn as of August 31, 2011.

The Financial Statements and Management Discussion and Analysis for the year ended August 31, 2012, along with additional information about the Company and all of its public filings are available at


The Company continued its positive momentum and strong performance during the most recent fiscal year. Corporately, our objectives continued to focus on: i) shifting expenses from non-revenue generating activities to revenue generating activities with a view of boosting organic growth; ii) promoting and recruiting leadership to execute our organic and acquisition-based growth plans; and iii) focusing on further establishing a funnel of possible acquisitions. Results from the implementation of the above strategic initiatives, momentum from past initiatives and the overall improvement in revenue growth can be seen in the Company's continued strong financial performance.

Given the investments in people, products and organizational resources that the Company has made in the past year, it is well-positioned to continue to generate organic growth, particularly as the initiatives gain further traction, which will result in continued top-line growth, and amplified bottom line growth, given the operating leverage in the business. In particular, the Company is building a suite of proprietary products and client solutions which supports the client service value proposition. Furthermore, as evidenced by recent acquisitions, the Company's value proposition has been very well-received by potential partners, and the momentum in the acquisition program has never been stronger. With both aspects of its growth strategy contributing, the Company is optimistic about its future prospects.

About People Corporation

People Corporation is a national provider of group benefits, group retirement and human resource services. We have 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. Our industry experts provide uniquely valuable insight while customizing our innovative suite of services to the specific needs of our clients. Whatever your sector, whatever your scale, putting our 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", 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, which is defined as earnings (loss) before interest, taxes, dividends, depreciation and amortization, is not a financial measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Operating Income before Corporate Costs means EBITDA plus expenses incurred at the corporate office and expenses related to acquisitions ("Corporate Costs"). Analysis of these differences enables understanding of the operating leverage inherent in the financial results of an acquisitive company. Operating leverage is a term used to describe the quantum of acquired EBITDA that falls to EBITDA of a company following an acquisition and is useful to the understanding of the resulting incremental overheads and synergies. The Company believes that these Non-IFRS financial measures provide meaningful information on the Company's performance and operating results. Readers are cautioned that EBITDA or the Company's calculation of the Operating Income do not have standardized meanings as prescribed by IFRS and may not be comparable to similar measures presented by other companies. Further, readers are cautioned that EBITDA or Operating Income should not replace Net income or loss or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of the Company's performance.

People Corporation
Brevan Canning
Investor Relations Inquiries
(204) 295-8860

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