WANTED Technologies Reports Record Net Income of $332K for the Second Quarter and 25% Revenue Increase

WANTED's Trailing 12-month EBITDA reaches $1.2 million as momentum in Human Capital marketplace accelerates

• Revenues of $1,725,809 for the second quarter of fiscal 2013, an increase of 25% compared to revenues of $1,382,921 for the second quarter of fiscal 2012.
• Net profit of $331,808, compared to a net loss of $94,121 for the second quarter of fiscal 2012, a gain of $425,929.
• EBITDA of $447,530, compared to an EBITDA of $20,530 for the second quarter of fiscal 2012, a gain of $427,000.
• Fourth consecutive quarter of profitability, leading to an EBITDA of $1,219,553 and a net profit of $739,334 for the trailing twelve month period.
• Growth of 23% in the Company's recurring revenue base in US dollars, from an annualized value of US$5.3 million as of December 31, 2011 to US$6.5 million as of December 31, 2012.
• Increase of 2,316 in comparison to December 31, 2011 in the number of professionals from the Corporate and Staffing sectors receiving WANTED's data and analysis through direct sales or partnerships, to reach a total of 3,465 as of December 31, 2012.

QUEBEC CITY, Feb. 19, 2013 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading source of business intelligence for the talent marketplace, reported today revenues of $1,725,809 for the second quarter ending December 31, 2012, a 25% gain over the same quarter of the prior year. For the first six months of fiscal 2013, revenues increased 22% to reach $3,303,770, compared to $2,702,976 for the first six months of the previous fiscal year. Net income also rose to $331,808 in the second quarter compared to a net loss of $94,121 for the same period last year, leading to a cumulative net income of $448,780 for the first half of the year, an improvement of $752,944 over the prior year. All amounts are in Canadian dollars, unless otherwise indicated.

The positive results achieved during the second quarter reflect further traction in sales of the Company's products into the Corporate and Staffing sectors. Quarterly revenues for the Corporate and Staffing segments were up 79% year-over-year.

"We are demonstrating the value of real-time information in the Human Capital Management context," said Bruce Murray, President and CEO. "Our clients are showing time and time again that they can make more effective business decisions when they have clear insight into the way supply and demand for talent affects their organizations."

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.

"Some of our most innovative solutions rely on mining nearly a billion talent records in our data warehouse," said Murray. "We are proving that access to 'big data' such as ours yields improved time-to-hire and lower cost-per-hire."

As of December 31, 2012, contracts in hand, in US dollars, represented approximately 6.5 million dollars in annualized recurring revenues. This compares with 5.3 million dollars as of December 31, 2011, an increase of 23%. At the end of second quarter of fiscal 2013, 65% of the recurring revenue base, in US dollars, 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 $1,327,766 in the second quarter of fiscal 2012 to $1,303,706 in the second quarter of fiscal 2013, a decrease of 2 percent. For the first six months of fiscal 2013, operating costs totalled $2,610,632, compared to $2,798,083 for the first six months of the previous fiscal year, a decrease of $187,451 or 7 percent. These decreases mostly result from decreases in marketing and selling expenses.

EBITDA of $447,530 for the three-month period ended December 31, 2012 represented a positive variation of $427,000 over the corresponding period of prior year. For the first six months of fiscal 2013, EBITDA totalled $685,993, compared to a negative EBITDA of $67,692 in the first six months of the previous year, an improvement of $ 753,685. 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 second quarter of fiscal 2013 was $331,808, or $.014 per share. This compares to a net loss of $94,121 for the second quarter of fiscal 2012 or $.004 per share. This improvement of $425,929 mostly results from an increase of $365,479 or 29% in gross margin combined with the decrease in operating costs of $24,060. Net income for the six-month period ended December 31, 2012 totalled $448,780, compared to a net loss of $304,164 for the same period of fiscal 2012, a positive variation of $752,944.

		Three-month periods ended				Six-month periods ended
		December 31,				December 31,
		2012		2011		2012		2011
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
		$		$		$		$
Revenues		1,725,809		1,382,921		3,303,770		2,702,976
Cost of sales		(95,760)		(118,351)		(186,176)		(230,148)
Gross Margin		1,630,049		1,264,570		3,117,594		2,472,828
Expenses
	Research and development	(525,248)		(495,268)		(1,071,763)		(1,042,336)
	Marketing and selling	(455,767)		(539,915)		(901,979)		(1,147,971)
	Administrative	(318,137)		(287,548)		(629,236)		(598,050)
	Other financial expenses	(4,554)		(5,035)		(7,654)		(9,726)
		(1,303,706)		(1,327,766)		(2,610,632)		(2,798,083)
Operating income (loss)		326,343		(63,196)		506,962		(325,255)
Finance income		20,577		2,231		6,937		50,945
Finance costs		(2,409)		(23,392)		(35,050)		(5,595)
Income (loss) before tax		344,511		(84,357)		478,849		(279,905)
Current tax expense		(32,272)		(29,333)		(69,207)		(63,397)
Deferred tax income		19,569		19,569		39,138		39,138
Net income (loss) and comprehensive income (loss)		331,808		(94,121)		448,780		(304,164)
Basic and diluted net income (loss) per share		0.014		(0.004)		0.019		(0.013)

 

Financial position

As at December 31, 2012, WANTED had $2,184,738 in cash and temporary investments, compared with $2,095,031 as at June 30, 2012, an increase of $89,707. This increase in the Company's liquidity is the result of positive cash flows from operating activities of $202,218, partially offset by cash flows used by investing activities of $22,355 and cash flows used by financing activities of $90,156 during the first six months of the year.

As at December 31, 2012, total assets amounted to $6,479,965 compared with $6,428,932 as at June 30, 2012, an increase of $51,033.

Those interested will be able to access the information on the December 31, 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, February 19, 2013.

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.

 

SOURCE: WANTED TECHNOLOGIES CORP.

Mr. Bruce Murray, President and CEO
Tel: [phone], ext. 222
Mr. Martin Auclair, VP Finance and CFO
Tel: [phone], ext. 337