Highlights of Financial Results for the quarter ended
Financial Results from Operations
The Company's financial results for the three months ended
Three months ended | ||
(In 000’s) | 2019 | 2018 |
Revenue | ||
Adjusted EBITDA | ||
Adjusted net earnings | ||
Net income (loss) Net income (loss) per share (basic) Adjusted net earnings per share (basic) | ( ( | ( ( |
The Company realized revenue growth for the three months ended
Adjusted EBITDA for the three months ended
The Company reported Net loss for the three months ended
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:
- Completed the acquisition of Collage, a leading cloud-based digital human resource employee benefits administration and payroll solution provider based in
Ontario . This acquisition has provided entry into adjacent markets, expanding the Company’s administrative and technological capabilities and providing new supplier relationships, which will enhance the breadth and depth of the Company’s product and service offering and the plan member experience; - Completed the acquisition of Apri, one of the largest independent group benefits Managing General Agents ("MGA") and group benefits consulting firms in
Canada . Apri has established a presence in multiple provinces, has built a strong reputation for innovative, client-focused solutions, and forged solid long-term relationships with clients, third-party brokers, and suppliers. In addition, Apri's JungoHR platform offers a 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 broker network as one of the largest group benefits MGAs inCanada ; - Completed a private placement equity offering of 6,983,500 shares for total net proceeds of
$61.0 million ; - Executed on the buy-back of selected retained economic interests in Coughlin and BPA;
- Continued to invest in top talent with additional senior leadership in the Company’s Group Retirement Solutions operation and additional consultants focusing on group retirement, disability, and enterprise clients;
- Launched a MGA solution to provide back office support to our third party consultants;
- Initiated the operational integration of ACL and Gallivan to strengthen the Company’s position as a leader in the student benefits market;
- Launched a new disability management and administration system solution;
- Completed and launched the pilot for People Care, a new online Mental Health solution for clients; and
- Initiated the first phase of integration related to shared service functions for recently acquired firms, including
ACL Student Benefits Ltd. AndCollage Technologies Inc.
Summary Financial Position
The Company is well-funded to execute on its 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 months ended
Grant of Deferred Stock Units
The Company has granted long-term equity incentive awards to its independent directors. These incentive awards were granted under the Company's Security Based Compensation Plan (the "Plan"), established to compensate directors and reward senior officers and employees, based on individual and corporate performance, to align their interests with that of the Company and to provide long-term incentives.
In particular:
- The Company granted 18,473 deferred stock units to its independent directors, vesting immediately and otherwise subject to the terms of the Plan; and
- 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 3,108 deferred stock units to directors in this regard.
Conference Call
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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 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
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