The Company has not observed any financial impact on its business as a result of the COVID-19 pandemic, either for the fiscal quarter ended
“With an essential service offering designed to provide clients with deep and specialized advice combined with a platform that delivers customized solutions focused on cost containment, a strong weighting of clients in less cyclical sectors, as well as a robust organic growth engine, the Company is well-positioned to successfully navigate the current environment,” continued
Highlights of Financial Results for the Quarter Ended
Financial Results from Operations
The Company's financial results for the three months ended
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The Company realized revenue growth for the three months ended
Adjusted EBITDA for the three months ended
The Company reported Net Income for the three months ended
Strategic and Operational Highlights
In the first two quarters of the fiscal year, the Company continued to make significant progress on executing its strategic plan, while at the same time making investments to position the Company for ongoing future growth. Some notable milestones include:
Completed the following strategic acquisitions:
- RVARC, a leading provider of group benefits consulting services based in
Quebec , significantly increasing the Company's presence in one ofCanada's largest provinces; - Collage, a leading cloud-based digital human resource employee benefits administration and payroll solution provider based in Ontario. The acquisition provides an entry into adjacent markets, expands the Company’s administrative and technological capabilities and also expands the breadth and depth of the Company’s product and service offering and the plan member experience;
- IBC, a provider of group benefits consulting services for companies throughout
Alberta , increasing the Company's presence inWestern Canada ; and - Apri, one of the largest independent group benefits Managing General Agents ("MGA") and group benefits consulting firms in
Canada with an established presence in multiple provinces and a strong reputation for innovative, client-focused solutions. Apri's JungoHR platform offers an HRIS focused on mid-sized and enterprise-level businesses, expanding the Company's existing human resource solutions. Paired with the Collage Benefits HQ platform, the Company is able to provide a comprehensive solution and value proposition to its third party advisor network as one of the largest group benefits MGAs inCanada .
Continued to invest in talent to support a growing client base and enhance our strategic capabilities:
- Re-organized senior leadership responsibilities to drive go to market effectiveness; and
- Hired talent with expertise in three distinct market segments: group retirement, disability, and enterprise clients.
Continued to execute integration initiatives to leverage the benefits of the platform:
- Launched an MGA solution to provide back office support to our third party advisors; and
- Initiated the operational integration of our student benefits business to strengthen the Company’s position as a leader in this market.
Launched new solutions, including:
- A new disability management and administration system solution; and
- People Connect, a new online Mental Health solution for clients.
Completed a private placement common share offering issuing 3,500,000 shares for total net proceeds of approximately
Summary Financial Position
The Company is well-funded to execute on its long-term growth strategy, with a strong financial position and access to capital. The Company had cash balances of
The complete Financial Statements and Management’s Discussion and Analysis for the three and six months ended
Grant of Deferred Stock Units
The Company permits its directors to elect to take their director’s fees in the form of deferred stock units issued under the Company’s Security Based Compensation Plan, in lieu of cash payments. This quarter, the Company has granted 2,542 deferred stock units to directors in this regard.
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About
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, Adjusted EBITDA and Adjusted Net Earnings 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 six months ended
Investor Relations Inquiries:
Investor Relations -
(416) 283-0178
jon.ross@loderockadvisors.com
CFO and COO -
(204) 940-3988
dennis.stewner@peoplecorporation.com
www.peoplecorporation.com
Neither the
Source:
2020 GlobeNewswire, Inc., source