WINNIPEG, Manitoba, Dec. 03, 2018 (GLOBE NEWSWIRE) -- People Corporation (the "Company") (TSX Venture: PEO) today announced financial results for the quarter-ended August 31, 2018.

"People Corporation made significant strategic and financial progress during 2018,” commented Laurie Goldberg, Executive Chairman and Chief Executive Officer. “Out of overall revenue growth of 23.3%, our team generated organic revenue growth of just over 10%. In addition, EBITDA grew by 37% as a result of judicious acquisitions, effective integration and the achievement of targeted operating efficiencies. People Corporation is already the leading TPA and group benefit consulting firm in Canada and over the next five years, we plan to firmly position the Company as one of the foremost advisors and administrators of group benefits, group retirement and HR solutions in the country.”

Mr. Goldberg continued, “With proven operating and integration capabilities, a demonstrated track record of organic growth and deep corporate development experience, People Corporation is well-positioned to provide clients with superior service while also driving shareholder returns through continued expansion, further integration and optimization.”

Highlights of Financial Results for the quarter ended August 31, 2018

Financial Results from Operations

The Company's financial results for the three months ended August 31, 2018 fully reflect the effect of last year's acquisitions of Sirius Benefit Plans Inc. (“Sirius”) and Skipwith & Associates Insurance Agency Inc. ("Skipwith"), and organic growth initiatives.  The effect of the acquisitions of Assurance Dalbec Ltée (“Dalbec”), Rockwater Benefits Company (“Rockwater”), Lane Quinn Benefit Consultants Ltd. (“Lane Quinn”) and Silverberg & Associates Inc. (“Silverberg”) are reflected from their dates of acquisition in the current fiscal year, which were December 1, 2017, February 1, 2018, May 23, 2018 and August 1, 2018 respectively.

 3 months ended
August 31st
Year ended
August 31st

(In 000’s)
 2018 2017 2018 2017
Adjusted EBITDA before REI$9,707.9$7,048.3$34,456.0$25,351.7
Adjusted EBITDA$7,744.9$5,718.4$27,542.0$20,109.0
Net income (Loss)($9,478.6)$242.1($6,920.6)$3,478.8

For the three months ended August 31, 2018, the Company achieved revenue growth of $7.4 million (25.4%). Organic growth of $3.1 million (10.6%) was recognized primarily from gaining new clients, increasing product and service penetration with existing clients and natural inflationary factors.  The Company recognized growth of $4.3 million (14.8%) resulting from acquired operations including Dalbec, Rockwater, Lane Quinn and Silverberg.

Adjusted EBITDA before retained economic interest (“REI”) for the three months ended August 31, 2018 was $9.7 million, an increase of $2.7 million (37.7%).  Growth in Adjusted EBITDA for the three month period was primarily attributable to acquired operations and organic revenue growth, partially offset by increased compensation expenses tied directly to the higher revenue and expanded leadership to accommodate future growth.

Adjusted EBITDA for the three months ended August 31, 2018 was $7.7 million, an increase of $2.0 million (35.4%) primarily due to the factors affecting Adjusted EBITDA before REI, offset by an increase in the amount due to the holders of the REI of $0.6 million (47.6%), reflecting their share of the increased EBITDA in the corresponding businesses.

For the three months ended August 31, 2018, the Company reported a loss of ($9.5) million, a decrease of $9.7 million, resulting from increased finance expenses relating to the revaluation of non-controlling interest put options and contingent consideration, higher acquisition, integration and reorganization costs, higher amortization of intangible assets, and income tax expense, which is partially offset by increased revenue and adjusted EBITDA related to acquired operations and organic growth.

Strategic and Operational Highlights

The Company continues 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: 

  • Segmented our business into small, medium and enterprise, adding additional leadership talent in our small group and enterprise channels and invested in further developing the enterprise market by launching our Business Development Solutions Group;

  • Continued to expand our third-party consulting network as well as our direct sales and consulting capabilities to expand organic revenue opportunities and to enhance coverage for clients;

  • Leveraged our scale to expand the number of partners on our TPA platforms for both insured and self-insured solutions, and further developed special pool arrangements for certain benefits where we consolidate large blocks of clients to deliver better solutions, better pricing stability and improved  control over pricing to the end client;

  • Expanded the distribution of the Sirius and HealthSource Plus products and solutions to reach more clients, piloted an HR Solution to enhance our small group offering and a disability management solution; 

  • Continued to invest in client‑focused products and solutions, including a new multi‑employer administration platform, a new member portal for clients and a new flexible enrolment tool;

  • Enhanced our presence in the Alberta market with the acquisitions of Lane Quinn and Silverberg Group, two of the larger group benefit and group retirement providers in Western Canada;

  • Enhanced our position in the Quebec market and complimented our existing business with an expanded portfolio of solutions for the small group market with the acquisition of Dalbec, a leading Québec-based TPA and TPP service provider.

  • Complimented our group retirement services portfolio with the acquisition of Rockwater Benefits, an established group retirement advisory practice based in Ontario;

  • Subsequent to the year end, enhanced our presence in the Ontario market with the acquisition of Benefit Partners Inc., a provider of group benefit and group retirement solutions.

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.  The Company had cash balances of $21.1 million as at August 31, 2018.  In addition to its cash resources, the Company maintains a credit facility with its senior lenders that totals $97.8 million of credit capacity, with an Acquisition Revolver of $63.8 million.  As of August 31, 2018, the Company has drawn $29.0 million on the various components of it credit facility, leaving $68.8 million of unused credit capacity of which $63.8 million relates to capacity on the Acquisition Revolver facility. 

The complete Financial Statements and Management’s Discussion and Analysis for the twelve months ended August 31, 2018, along with additional information about the Company and all of its public filings are available at

About People Corporation

People is a leading independent national provider of group benefits, group retirement and human resource services with over 800 employees servicing over 8,000 clients of all sizes from start-up to enterprise. 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. Administering approximately $2 billion in annual premiums, and $10 billion in pension assets, 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.

For more information, please visit

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  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 months ended May 31, 2018, which can be accessed via the SEDAR Web site (

Investor Relations Inquiries:

Contact - Dennis Stewner, CPA, CA
CFO and COO - People Corporation
(204) 940-3988

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