TORONTO, ONTARIO--(Marketwired - July 17, 2014) - People Corporation (the "Company") (TSX VENTURE:PEO) today announced its financial results for the third quarter of fiscal 2014, which continued its trend of posting period-over-period increases in revenue and EBITDA as it successfully executes its growth plans in the group benefits, pension and HR consulting sectors.

"As a Company, we are pleased with the record third quarter results which demonstrate that the Company's organic growth model, client value proposition and acquisition strategy deliver value to our clients, acquisition partners, employees and shareholders," said Laurie Goldberg, Chairman and Chief Executive Officer of the Company. "The third quarter was particularly noteworthy due to the announcement of our ranking as one of Canada's 2014 PROFIT 500 Firms, as well as the acquisitions of Bryan H. Lupe and Associates Ltd., the first acquisition in our home market of Winnipeg, and Fairles Benefit Services Inc. We continue to be excited that so many independent business and industry leaders are interested in the People Corporation story."

Highlights of Financial Results for the three and nine month periods ended May 31, 2014

Financial Results from Operations

3 months 3 months 9 months 9 months
ended ended ended ended
May 31, 2014 May 31, 2013 May 31, 2014 May 31, 2013
Revenue $ 11,571,972 $ 8,665,624 $ 32,549,532 $ 23,817,531
EBITDA before corporate costs $ 2,961,071 $ 2,139,268 $ 8,818,613 $ 5,852,728
EBITDA before corporate costs margin 25.6 % 24.7 % 27.1 % 24.6 %
Adjusted EBITDA $ 1,964,807 $ 1,325,068 $ 6,147,383 $ 3,425,562
Adjusted EBITDA margin 17.0 % 15.3 % 18.9 % 14.4 %
Net income $ 142,893 $ 418,445 $ 1,966,064 $ 841,076

Revenue for the three and nine months ended May 31, 2014 was $11.6 million and $32.5 million, respectively. This represents $2.9 million (33.5%) of growth for the quarter and $8.7 million (36.7%) of growth year-to-date over the comparative periods in fiscal 2013. The growth in revenue in the first three quarters of fiscal 2014 was attributable to both organic sources and acquisitions. For the first nine months of fiscal 2014, approximately $2.5 million, or 28.4% of the increase, represents organic growth resulting from the addition of new clients and additional revenue from existing clients. The balance of the revenue growth, $6.2 million, or 71.6% of the increase, was primarily attributable to the acquisitions completed during the 2013 fiscal year, the results for which are now included in the Company's results. The majority of this increase is attributable to the acquisition of Hamilton + Partners, which was completed in July 2013; as such, its revenue is included in fiscal 2014's first nine months, but was not in the comparable period in fiscal 2013. In addition, revenues from recently announced acquisitions of Bryan H. Lupe and Associates Ltd. and Fairles Benefit Services Inc. had no impact on third quarter results and will begin to be recognized in the fourth quarter.

The Company monitors EBITDA before corporate costs in order to assess the results of operations before consideration of the corporate investments required to execute the Company's client-focused strategic plan and position the Company for future growth. For the three and nine months ended May 31, 2014, EBITDA before corporate costs was $3.0 million and $8.8 million, respectively. This represents an increase of $0.8 million (38.4%) for the quarter and $3.0 million (50.7%) of growth year-to-date over the comparative periods in fiscal 2013.

Adjusted EBITDA for the three and nine months ended May 31, 2014 was $2.0 million and $6.1 million, respectively. This represents $0.6 million (48.3%) of growth for the quarter and $2.7 million (79.5%) of growth year- to-date over the comparative periods in fiscal 2013. Adjusted EBITDA margin for the three and nine months ended May 31, 2014 increased to 17.0% and 18.9%, respectively. The growth in Adjusted EBITDA and margin improvements are a result of the revenue growth discussed above, coupled with the operating leverage that exists in the business, as a significant amount of the incremental revenue effectively increases operating earnings with moderate additional incremental investment, operating expense, or corporate costs. In addition, revenue for the nine months ended May 31, 2014 was positively impacted by certain non-recurring revenue items, which resulted in an approximate 1.5% favourable effect on the Adjusted EBITDA margin. As such, margins for the nine month period are above what the Company believes to be a more normalized level at its current scale. Excluding the impact of the non-recurring revenue items, the Adjusted EBITDA margin for the nine months ended May 31, 2014 is approximately 17.4%.

For the three and nine months ended May 31, 2014, the Company reported net income of $0.1 million and $2.0 million, respectively. This represents a decrease of $0.3 million for the quarter and growth of $1.1 million year-to- date over the comparative periods in fiscal 2013. The increase in net income is due to growth in Adjusted EBITDA discussed above, offset by incremental interest and other finance costs attributable to debt incurred in connection with acquisitions completed during fiscal 2013, and to various non-cash expenses related to the accounting entries for items such as amortization of intangible assets.

Summary Financial Position

The Company's financial position remains strong, with sufficient capacity for operational and strategic investments, including those related to growth through acquisition-related activities.

The Company had cash balances of $11.4 million as at May 31, 2014, an increase of $9.0 million as compared to the amount as at August 31, 2013, the Company's most recent fiscal year-end. The increase in the Company's cash position is due to proceeds received from a private placement of common shares completed in April 2014 and seasonal fluctuations in working capital items. The Company has a credit facility of $24.5 million with its senior lender to support credit needs in excess of its operating working capital, of which $12.4 million was drawn as of May 31, 2014. In addition to the credit facility with its senior lender, as of May 31, 2014, the Company has $4.4 million owing to vendors from previous acquisitions, of which $1.6 million is due in the next twelve months. The Company continues to believe that it will generate sufficient cash flows in order to meet its debt repayment obligations.

The complete Financial Statements and Management's Discussion and Analysis for the three and nine month periods ending May 31, 2014, along with additional information about the Company and all of its public filings are available at

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 and Adjusted EBITDA are not recognized measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to revenue, net income and cash flows, the supplemental measures of EBITDA and Adjusted EBITDA are useful as they provide investors with an indication of earnings from operations before debt management and non-recurring and other adjustments. Investors should be cautioned, however, that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating these measures may differ from other public issuers and, accordingly, may not be comparable to similar measures used by other issuers. 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 nine months ended May 31, 2014, which can be accessed via the SEDAR Web site (

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information:

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