WANTED Technologies Reports its Best First Quarter in History with a 20% Revenue Increase and Strong Profitability

Nov 20, 2012, 09:30 ET from WANTED TECHNOLOGIES CORP.

WANTED solutions for the Corporate HR and Staffing segments continue to gain momentum

  • Revenues of $1,577,961, an increase of 20% or $257,906 compared to revenues of $1,320,055 in the first quarter of fiscal 2012.

  • Net profit of $116,972, compared to a net loss of $210,043 in the first quarter of fiscal 2012, a gain of $327,015.

  • EBITDA of $238,463, compared to negative EBITDA of $88,222 in first quarter of fiscal 2012, a gain of $326,685.

  • Growth of 24% in the Company's recurring revenue base in US dollars, from an annualized value of US$5.1 million as of September 30th, 2011 to US$6.3 million as of September 30th, 2012.

  • Further acceleration of the Company's diversification strategy with a total of 3,018 professionals from the Corporate and Staffing sectors receiving WANTED data and analysis either through direct sales or through partnerships. This compares to 1,037 professionals as of September 30th, 2011.

QUEBEC CITY, Nov. 20, 2012 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today first quarter revenues of $1,577,961 for the period ending September 30th, 2012, a 20% gain over the prior year. Net income also rose to $116,972, compared to a net loss of $210,043 for the same period last year. All amounts are in Canadian dollars, unless otherwise indicated.

The positive results achieved during the first quarter reflect solid traction in sales of the Company's products into the Corporate and Staffing sectors, both areas that WANTED has targeted with focused product development and sales efforts in the past two years. Quarterly revenues for the Corporate and Staffing segments were up 91% year-over-year. During the quarter, revenue from the Corporate and Staffing segments represented 28% of total revenue, compared with 18% of the total one year ago.

"We are pleased to see the market adopting our new category of business intelligence products," said Bruce Murray, President and CEO. "We began our investments in these new initiatives just over two years ago, and our products are currently delivering great value in the marketplace".

WANTED's Corporate and Staffing clients use the Company's products to make more effective business decisions to recruit and retain the best employees. The core of the product set describes supply and demand for talent, and helps human resource professionals focus on objective market data when making important personnel decisions.

"In the past quarter, we released a new set of business intelligence reports that human resources professionals can share with hiring managers," said Murray. "These easy-to-read views of market conditions help set realistic expectations for the recruiting and hiring process."

In addition to the gains in topline revenues, the Company also recorded gains in recurring revenues, EBITDA and net income.

As of September 30, 2012, contracts in hand, in US dollars, represented approximately 6.3 million dollars in annualized recurring revenues. This compares with contracts in hand totalling approximately 5.1 million dollars as of September 30, 2011, an increase of 24%. At the end of first quarter of fiscal 2013, 63% of the recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 51% at the end of the previous fiscal year.

Operating costs decreased from $1,470,317 in the first quarter of fiscal 2012 to $1,306,928 in the first quarter of fiscal 2013, a decrease of 11 percent. The favorable variance of $163,389 mostly results from a decrease in marketing and selling expenses.

EBITDA of $238,463 for the three-month period ended September 30th, 2012 represented a positive variation of $326,685 over the prior year. EBITDA represents the net income before net finance costs excluding gain or loss due to variation in foreign exchange, income taxes on net income, and amortization and impairment of property, plant and equipment and intangible assets. As International Financial Reporting Standards do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

The net income for the first quarter of fiscal 2013 was $116,972, or $.005 per share. This compares to a net loss of $210,043 in the first quarter of fiscal 2012 or $.009 per share. This improvement mostly results from an increase of $279,289 or 23% in gross margin combined with the decrease in operating costs of $163,389, partially offset by a negative variation of $113,855 in foreign exchange gains (losses).

    Three-month periods ended
    September 30,
    2012   2011
    (unaudited)   (unaudited)
    $   $
Revenues 1,577,961   1,320,055
Cost of sales (90,414)   (111,797)
Gross Margin 1,487,547   1,208,258
  Research and development (546,516)   (547,068)
  Marketing and selling  (446,213)   (608,056)
  Administrative (311,099)   (310,502)
  Other financial expenses (3,100)   (4,691)
    (1,306,928)   (1,470,317)
Operating income (loss) 180,619   (262,059)
Finance income 3,142   69,545
Finance costs (49,423)   (3,034)
Income (loss) before tax 134,338   (195,548)
Current tax expense (36,935)   (34,064)
Deferred tax income 19,569   19,569
Net income (loss) and comprehensive income (loss)  116,972   (210,043)
Basic and diluted net income (loss) per share 0.005   (0.009)


Financial position

As at September 30, 2012, WANTED had $1,838,659 in cash and temporary investments, compared with $2,095,031 as at June 30, 2012. This decrease of $256,372 in the Company's liquidity is mostly the result of a decrease of $283,484 in current liabilities (excluding short-term instalments on long-term debt), combined with an increase of $114,931 in current assets (excluding cash and temporary investments), partially offset by positive cash flows of $206,107 from operations before working capital items.

As at September 30, 2012, total assets stood at $6,333,830 compared with $6,428,932 as at June 30, 2012, a decrease of $95,102.

Those interested will be able to access the information on the September 30, 2012 unaudited interim consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Tuesday, November 20th, 2012.

About WANTED Analytics™

WANTED Analytics™ helps recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics™ brings together, for the first time, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions.

Clients in the staffing, HR, RPO, media, and government sectors use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.

About WANTED Technologies Corporation

WANTED Technologies (TSX-V: WAN) provides real-time business intelligence for the talent marketplace. Founded in 1999, the company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than 700 million unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.

WANTED is also the exclusive data provider for The Conference Board's Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Any statement that appears prospective shall not be interpreted as such.