CLEVELAND, March 9, 2010 (GLOBE NEWSWIRE) -- SearchPath HCS Inc. (Pink Sheets:SRCP), a leading Human Capital Solutions Company, today announced that the Company recorded a significant increase in net income, royalty and advertising (R&A) income and the number of franchisees during its fiscal 2nd Quarter of 2010, ended December 31, 2009.
SearchPath International (SPI), a wholly-owned subsidiary of the Company, reported net income of $111,496 in the most recent quarter, compared to a reported net loss in the previous quarter. The report of positive net income during the last quarter marks a reversal of six straight quarterly periods during which the Company experienced net losses as a result of the unfavorable economic conditions.
The largest contributing factor of SPI's profitability during the most recent quarter is a significant increase in the Company's income generated by royalty and advertising (R&A) income that it collects from its franchisees. SPI's R&A income nearly doubled in Q2 2010 over Q1 2010, experiencing an increase of 88%. This continues a span of over three years during which the Company experienced substantial growth in R&A income. During 2009, SPI's annual R&A income was 16% higher than in 2008, 70% higher than in 2007 and over 200% higher than in 2006.
In an effort to foster growth and maintain production during the adverse economic and industry climates, SPI reduced its operating expenses by 48% from the same period last year. During this period, the Company maintained a high level of service and support which is demonstrated by the consistent performance of its offices. The top three performing offices in SPI increased their average monthly revenue 52% from $22,371 to $34,008 during the 2009 calendar year.
"SearchPath International has performed very well by all measures given the poor economic conditions in 2009, specifically within the executive recruiting industry. Our most recent quarter's financial statements illustrate a significant increase in both revenue and overall profitability. Additionally, SPI has seen its franchisee offices perform markedly well in adverse market conditions due to its effective planning and strategy execution. The company has reduced operating expenses while continuing to maintain a high level of service and field support," commented Thomas K. Johnston, Chief Executive Officer of SearchPath HCS, Inc.
Johnston added, "These figures, combined with the rapid growth of our franchises, valuable strategic partnerships and projected industry growth, demonstrate that all of the hard work and investment put forth into the company has built valid programs for SPI, and we believe this has positioned us for sustainable growth in the near and long term."
SearchPath HCS, Inc.'s Filings can be found at Pink Sheets SRCP under Filings.
About SearchPath HCS, Inc.
SearchPath HCS, Inc. www.searchpathhcs.com is a rapidly growing human capital solutions firm and the parent company of SearchPath International, Inc. (SPI) www.searchpath.com. SPI is a U.S.-based talent acquisition professional services firm, with more than 75 franchises nationwide. Founded in 2005, SPI's goal is to become the premier, vertically-integrated provider of talent acquisition professional services in the world. In addition to being a stand-alone talent and acquisition services firm, SPI is also a franchisor of its business that has redefined the way clients do business with recruiters by implementing a client-centric approach that combines proven industry best practices and revolutionary concepts.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company and SPI set forth herein and those preceded by or that include the words ``believes,'' ``expects,'' ``given,'' ``targets,'' ``intends,'' ``anticipates,'' ``plans,'' ``projects,'' ``forecasts'' or similar expressions, are "forward-looking statements". Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties which could cause the Company's future results to differ materially from those anticipated. The Company assumes no obligation to update any of the information contained or referenced in this press release.