NEW YORK and QUEBEC CITY, Oct. 20,
2015 /CNW Telbec/ -
Financial highlights
- Revenues of $9,956,608, a
decrease $100,040 or 1%, compared to
revenues of $10,056,648 for fiscal
2014. Note that revenues from the prior year included an amount of
$1,341,098 from a reseller partner
agreement that terminated in June
2014, as well as a significant non-recurring revenue of
$976,988 derived from a single
agreement. Excluding the revenues from this partner and from this
non-recurring agreement in the prior year, revenues grew
$2,218,046, or 29% over the prior
year.
- Growth of 34% in the Company's recurring revenue base in CAD
dollars (17% in US dollars) from an annualized value of
CAD$8.3 million as of June 30th, 2014 to CAD$11.1 million as of June 30th, 2015.
- Net income of $484,331
($0.020 per share) for fiscal 2015
compared to a net income of $2,634,753 ($0.109
per share) for fiscal 2014, a decrease of $2,150,422 partially attributable to an increase
in expenses and infrastructures to accelerate the growth and to
non-recurring expenses in 2015.
- EBITDA of $1,112,676 or 11% of
revenues, compared to an EBITDA of $3,659,329 or 36% of revenues in the prior year,
a decrease of $2,546,653.
Additional highlights
- On September 11, 2015, WANTED
announced that it has entered into a definitive agreement (the
"Arrangement Agreement") with CEB Inc. (NYSE:CEB), a best practice
insight and technology company, under which CEB will acquire all of
Wanted Technologies' issued and outstanding common shares. Pursuant
to the Arrangement Agreement, shareholders of Wanted Technologies
will receive cash consideration of C$1.79 per share, which represents a premium of
approximately 53% to the closing price of C$1.17 per share on the TSX Venture Exchange on
September 9, 2015.
- In June 2015, Molly Lindblom was appointed as Vice President
of Marketing to strengthen the company's management team
capabilities to support increased growth and scale.
- In January 2015, release of
WANTED Analytics international with a complete candidate supply and
jobs demand database and analytics solution for the UK,
China, Singapore, and Australia, followed by the announcement in
March 2015 of the addition of
Belgium, France, and Russia to the candidate supply solution.
- In October 2014, Meredith Amdur was appointed as new CEO of the
Company.
WANTED Technologies (TSX-V: WAN), a leading provider of
real-time market intelligence and analytics for staffing and talent
sourcing professionals, reported today revenues of $9,956,608 for fiscal year ended June 30, 2015, a 1% decrease over the prior year.
Note that revenues for the fiscal 2014 included an amount of
$1,341,098 from a reseller partner
agreement that terminated in June
2014, as well as a significant non-recurring revenue of
$976,988 derived from a single
agreement. Excluding the revenues from this partner and from this
non-recurring agreement contract in the prior year, revenue for the
fiscal 2015 grew $2,218,046, or 29%
over prior year.
The Company reported a net income of $484,331 ($0.020
per share) for the fiscal 2015, compared to a net income of
$2,634,753 ($0.109 per share) for the fiscal 2014, a negative
variation of $2,150,422. Note that
this decrease in net income mostly results from the combination of
three specific elements, being the change in management, the
issuance of 1,530,000 stock options and a non-recurring R&D tax
credit recorded in the prior year, which together, represented
approximately $1,570,000 of this
negative variance.
"WANTED's investment in new data products and global expansion
in 2015 has started to pay off with accelerating growth in the key
corporate HR segment, where the recurring revenue book increased
62% year on year, and increasing customer adoption of our new
international data analytics solutions. The company expanded
coverage to 22 of the top global economies and increased the size
of its historical database to over 1.2 billion job records, all
while remaining profitable," said Meredith
Amdur, WANTED's President and CEO.
As of June 30, 2015, contracts in
hand, in US dollars, had an approximate value of 9.0 million dollars in annualized recurring
revenues, an increase of 1.3 million
dollars or 17% over an annualized recurring revenue book of
7.7 million dollars as of
June 30, 2014. On a Canadian dollar
basis, the contracts in hand increased 34%, from 8.3 million dollars as of June 30, 2014 to 11.1
million dollars as of June 30,
2015.
At the end of fiscal 2015, 72% of the recurring revenue base was
supported by contracts from the Staffing, Corporate and Government
sectors. This compares to 68% at the end of the previous year.
Operating costs for the fiscal 2015 totalled $9,262,809, an increase of $2,998,951, or 48%, over the prior year. Note
that, as mentioned earlier, approximately $1,570,000 of the increase is associated with a
change in management, the issuance of stock options and a
non-recurring R&D tax credit which reduced the prior year's
expenses. The remaining portion of the increase in operating costs
is mostly due to investments in research and development and
marketing and selling as the Company continues to innovate in the
market and expand its footprint, both in North America and internationally.
|
|
2015
|
|
2014
|
|
|
$
|
|
$
|
|
|
|
|
|
Revenues
|
9,956,608
|
|
10,056,648
|
Cost of
sales
|
(441,755)
|
|
(573,057)
|
Gross
Margin
|
9,514,853
|
|
9,483,591
|
|
|
|
|
|
Expenses
|
|
|
|
|
Research and
development
|
(3,322,465)
|
|
(2,197,733)
|
|
Marketing and
selling
|
(3,206,400)
|
|
(2,310,490)
|
|
Administrative
|
(2,700,608)
|
|
(1,731,621)
|
|
Other financial
expenses
|
(32,283)
|
|
(23,775)
|
|
Other
|
(1,053)
|
|
(239)
|
|
|
(9,262,809)
|
|
(6,263,858)
|
|
|
|
|
|
Operating
income
|
252,044
|
|
3,219,733
|
|
|
|
|
|
Finance
income
|
493,538
|
|
33,466
|
Finance
costs
|
(2,007)
|
|
(25,435)
|
|
|
|
|
|
Income before
tax
|
743,575
|
|
3,227,764
|
|
|
|
|
|
Current tax
expense
|
(365,085)
|
|
(349,495)
|
Deferred tax income
(expense)
|
105,841
|
|
(243,516)
|
Tax
expense
|
(259,244)
|
|
(593,011)
|
|
|
|
|
|
Net income and
comprehensive income
|
484,331
|
|
2,634,753
|
|
|
|
|
|
Net income per share
:
|
|
|
|
|
Basic
|
0.020
|
|
0.109
|
|
Diluted
|
0.019
|
|
0.106
|
Despite an increased level of investment to accelerate growth,
EBITDA remained positive at $1,112,676 for fiscal 2015, compared to an EBITDA
of $3,659,329 in fiscal 2014, a
negative variation of $2,546,653.
EBITDA represents the net income before other financial expenses,
net finance income (excluding gain or loss due to the variation in
foreign exchange), income taxes on net income, and amortization and
depreciation 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.
Note that ninety-four per cent (94%) of WANTED's revenues for
fiscal year ended June 30, 2015 came
from sales denominated in US dollars compared to ninety-three per
cent (93%) for the year ended June 30,
2015. Currency fluctuations between the fiscal 2015 and
fiscal 2014 impacted the results favourably, adding approximately
$830,000 to revenue and $362,000 to expenses when compared to prior
year.
|
Reconciliation of
EBITDA to Net Income
|
|
|
|
2015
|
2014
|
2013
|
|
|
|
$
|
$
|
$
|
|
|
|
|
|
|
Net income for the
period
|
|
484,331
|
2,634,753
|
1,362,555
|
|
|
|
|
|
|
PLUS
(LESS):
|
|
|
|
|
|
Income tax
expense
|
|
259,244
|
593,011
|
42,946
|
|
Finance income -
net
|
|
(491,531)
|
(8,031)
|
(87,874)
|
|
Other financial
expenses
|
|
32,283
|
23,775
|
18,345
|
|
Depreciation of
property, plant and equipment
|
|
357,831
|
274,617
|
234,730
|
|
Amortization of
intangible assets
|
|
81,525
|
163,080
|
163,080
|
|
Net gains (losses) on
foreign exchange
|
|
388,993
|
(21,876)
|
83,125
|
EBITDA
|
|
1,112,676
|
3,659,329
|
1,816,907
|
Summary of financial results for the fourth quarter of
2015
During the fourth quarter of fiscal 2015, WANTED's total revenue
amounted to $2,801,642, an increase
of 3% over the $2,708,721 recorded
for the corresponding quarter of the previous fiscal year. Note
that revenues for the last quarter of fiscal 2014 included an
amount of $419,812 from a reseller
agreement that was terminated on June 22,
2014.
Net income for the fourth quarter of fiscal 2015 amounted to
$286,087 (or $0.012 per share), compared with a net income of
$383,140 (or $0.016 per share) for the corresponding quarter
in 2014, a negative variation of $97,053 mostly resulting the Company's strategy
to accelerate revenue growth through targeted investments.
EBITDA for the fourth quarter of fiscal 2015 was $450,805, representing 16% of revenues. The
EBITDA for the fourth quarter of fiscal 2014 was $584,847 representing 22% of revenues.
Financial position
As at June 30, 2015, WANTED had
$7,922,066 in cash and monetary
investments, including $5,089,817 in
redeemable term deposits. This compares to $6,724,870 in cash and monetary investments at
the end of fiscal 2014, an increase of $1,197,196. Note that the term deposits of
$5,089,817 as of June 30, 2015 are presented as non-current assets
considering their expiry dates. This increase of $1,197,196 in the Company's liquidity is mostly
the result of operating activities which, despite an accelerated
pace in investments, generated $1,292,832 in cash flows since June 30, 2014. This positive contribution was
however partially offset by disbursements related to the purchase
of $495,337 in property, plant and
equipment, most of it being computer equipment required to support
new features, improve overall response time and upgrade the overall
development and production infrastructure to support growth.
As at June 30, 2015, total assets
amounted to $13,575,160 compared with
$11,955,516 as at June 30, 2014, an increase of $1,619,644.
Those interested will be able to access the information on the
June 30, 2015 audited 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, October 20th, 2015.
Arrangement Agreement
Also, note that on September
11th, 2015, WANTED announced that it has entered
into a definitive agreement (the "Arrangement Agreement") with CEB
Inc. (NYSE:CEB), a best practice insight and technology company,
under which CEB will acquire all of Wanted Technologies' issued and
outstanding common shares. Pursuant to the Arrangement Agreement,
shareholders of Wanted Technologies will receive cash consideration
of C$1.79 per share, which represents
a premium of approximately 53% to the closing price of C$1.17 per share on the TSX Venture Exchange on
September 9, 2015.
The Company also announced on September
24th, 2015 that it has obtained an interim order
from the Superior Court of Quebec
(the "Interim Order") in connection with the acquisition. The
Interim Order provides for, among other things, the holding of a
special meeting of the holders of common shares of Wanted
Technologies (the "Meeting") to approve the previously-announced
plan of arrangement (the "Arrangement") under the Canada Business
Corporations Act.
The Meeting is scheduled to be held on October 29, 2015, at the University Club of
Montreal at 2045 Mansfield,
Montreal, Quebec, at 10:30am. The record date for determining the
shareholders entitled to receive notice and to vote at the Meeting
has been fixed to be the close of business on September 28, 2015. Those meeting materials will
be posted on Wanted Technologies' website and available under its
profile on SEDAR at www.sedar.com.
About WANTED Technologies Corporation
WANTED Technologies helps organizations make intelligent hiring
decisions. Combining real-time, talent sourcing activity with
historical trends, the company's WANTED Analytics™ data science
tool uses Big Data to align HR and recruiting professionals with
global job market realities. WANTED transforms corporate HR into a
strategic tool by providing detailed competitive information about
employment trends, economic conditions, talent supply and demand,
and other pertinent job market statistics. Using data-driven
business intelligence, recruiters can develop comprehensive
workforce strategies and quickly find top candidates for key
positions. Equipped with insights based on exhaustive hiring data,
employers make smarter investments in talented personnel that
contribute to the long-term success of the enterprise.
WANTED Technologies (TSX-V:WAN) was founded in 1999 with offices
in Quebec City, Canada and
New York City. The company
currently maintains a database of more than 1.2 billion unique job
listings spanning more than 10 years and 11,000 occupational
categories.
WANTED Analytics is a cloud-based talent recruitment tool that
combines real-time job market information with historical data from
more than one billion records spanning ten years, 25,000 sources,
11,000 occupational categories, and serves 22 countries. This
global data source enables recruiting professionals to base
critical hiring decisions on job market realities, eliminating
hunches and guesswork. Professionals 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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE WANTED Technologies Corp.