WANTED Technologies Reports Revenues of $9.96 Million and Net Income of $0.5 Million ($0.020 per share) for the Year Ended June 30th, 2015

NEW YORK and QUEBEC CITY, Oct. 20, 2015 /CNW Telbec/ -

Financial highlights

• Revenues of $9,956,608, a decrease $100,040 or 1%, compared to revenues of $10,056,648 for fiscal 2014. Note that revenues from the prior year included an amount of $1,341,098 from a reseller partner agreement that terminated in June 2014, as well as a significant non-recurring revenue of $976,988 derived from a single agreement. Excluding the revenues from this partner and from this non-recurring agreement in the prior year, revenues grew $2,218,046, or 29% over the prior year.

• Growth of 34% in the Company's recurring revenue base in CAD dollars (17% in US dollars) from an annualized value of CAD$8.3 million as of June 30^th, 2014 to CAD$11.1 million as of June 30^th, 2015.

• Net income of $484,331 ($0.020 per share) for fiscal 2015 compared to a net income of $2,634,753 ($0.109 per share) for fiscal 2014, a decrease of $2,150,422 partially attributable to an increase in expenses and infrastructures to accelerate the growth and to non-recurring expenses in 2015.

• EBITDA of $1,112,676 or 11% of revenues, compared to an EBITDA of $3,659,329 or 36% of revenues in the prior year, a decrease of $2,546,653.

Additional highlights

• On September 11, 2015, WANTED announced that it has entered into a definitive agreement (the "Arrangement Agreement") with CEB Inc. (NYSE:CEB), a best practice insight and technology company, under which CEB will acquire all of Wanted Technologies' issued and outstanding common shares. Pursuant to the Arrangement Agreement, shareholders of Wanted Technologies will receive cash consideration of C$1.79 per share, which represents a premium of approximately 53% to the closing price of C$1.17 per share on the TSX Venture Exchange on September 9, 2015.

• In June 2015, Molly Lindblom was appointed as Vice President of Marketing to strengthen the company's management team capabilities to support increased growth and scale.

• In January 2015, release of WANTED Analytics international with a complete candidate supply and jobs demand database and analytics solution for the UK, China, Singapore, and Australia, followed by the announcement in March 2015 of the addition of Belgium, France, and Russia to the candidate supply solution.

• In October 2014, Meredith Amdur was appointed as new CEO of the Company.

WANTED Technologies (TSX-V: WAN), a leading provider of real-time market intelligence and analytics for staffing and talent sourcing professionals, reported today revenues of $9,956,608 for fiscal year ended June 30, 2015, a 1% decrease over the prior year. Note that revenues for the fiscal 2014 included an amount of $1,341,098 from a reseller partner agreement that terminated in June 2014, as well as a significant non-recurring revenue of $976,988 derived from a single agreement. Excluding the revenues from this partner and from this non-recurring agreement contract in the prior year, revenue for the fiscal 2015 grew $2,218,046, or 29% over prior year.

The Company reported a net income of $484,331 ($0.020 per share) for the fiscal 2015, compared to a net income of $2,634,753 ($0.109 per share) for the fiscal 2014, a negative variation of $2,150,422. Note that this decrease in net income mostly results from the combination of three specific elements, being the change in management, the issuance of 1,530,000 stock options and a non-recurring R&D tax credit recorded in the prior year, which together, represented approximately $1,570,000 of this negative variance.

"WANTED's investment in new data products and global expansion in 2015 has started to pay off with accelerating growth in the key corporate HR segment, where the recurring revenue book increased 62% year on year, and increasing customer adoption of our new international data analytics solutions. The company expanded coverage to 22 of the top global economies and increased the size of its historical database to over 1.2 billion job records, all while remaining profitable," said Meredith Amdur, WANTED's President and CEO.

As of June 30, 2015, contracts in hand, in US dollars, had an approximate value of 9.0 million dollars in annualized recurring revenues, an increase of 1.3 million dollars or 17% over an annualized recurring revenue book of 7.7 million dollars as of June 30, 2014. On a Canadian dollar basis, the contracts in hand increased 34%, from 8.3 million dollars as of June 30, 2014 to 11.1 million dollars as of June 30, 2015.

At the end of fiscal 2015, 72% of the recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 68% at the end of the previous year.

Operating costs for the fiscal 2015 totalled $9,262,809, an increase of $2,998,951, or 48%, over the prior year. Note that, as mentioned earlier, approximately $1,570,000 of the increase is associated with a change in management, the issuance of stock options and a non-recurring R&D tax credit which reduced the prior year's expenses. The remaining portion of the increase in operating costs is mostly due to investments in research and development and marketing and selling as the Company continues to innovate in the market and expand its footprint, both in North America and internationally.

		2015		2014
		$		$
Revenues		9,956,608		10,056,648
Cost of sales		(441,755)		(573,057)
Gross Margin		9,514,853		9,483,591
Expenses
	Research and development	(3,322,465)		(2,197,733)
	Marketing and selling	(3,206,400)		(2,310,490)
	Administrative	(2,700,608)		(1,731,621)
	Other financial expenses	(32,283)		(23,775)
	Other	(1,053)		(239)
		(9,262,809)		(6,263,858)
Operating income		252,044		3,219,733
Finance income		493,538		33,466
Finance costs		(2,007)		(25,435)
Income before tax		743,575		3,227,764
Current tax expense		(365,085)		(349,495)
Deferred tax income (expense)		105,841		(243,516)
Tax expense		(259,244)		(593,011)
Net income and comprehensive income		484,331		2,634,753
Net income per share :
	Basic	0.020		0.109
	Diluted	0.019		0.106

Despite an increased level of investment to accelerate growth, EBITDA remained positive at $1,112,676 for fiscal 2015, compared to an EBITDA of $3,659,329 in fiscal 2014, a negative variation of $2,546,653. EBITDA represents the net income before other financial expenses, net finance income (excluding gain or loss due to the variation in foreign exchange), income taxes on net income, and amortization and depreciation 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.

Note that ninety-four per cent (94%) of WANTED's revenues for fiscal year ended June 30, 2015 came from sales denominated in US dollars compared to ninety-three per cent (93%) for the year ended June 30, 2015. Currency fluctuations between the fiscal 2015 and fiscal 2014 impacted the results favourably, adding approximately $830,000 to revenue and $362,000 to expenses when compared to prior year.

Reconciliation of EBITDA to Net Income
			2015	2014	2013
			$	$	$
Net income for the period			484,331	2,634,753	1,362,555
PLUS (LESS):
	Income tax expense		259,244	593,011	42,946
	Finance income - net		(491,531)	(8,031)	(87,874)
	Other financial expenses		32,283	23,775	18,345
	Depreciation of property, plant and equipment		357,831	274,617	234,730
	Amortization of intangible assets		81,525	163,080	163,080
	Net gains (losses) on foreign exchange		388,993	(21,876)	83,125
EBITDA			1,112,676	3,659,329	1,816,907

Summary of financial results for the fourth quarter of 2015

During the fourth quarter of fiscal 2015, WANTED's total revenue amounted to $2,801,642, an increase of 3% over the $2,708,721 recorded for the corresponding quarter of the previous fiscal year. Note that revenues for the last quarter of fiscal 2014 included an amount of $419,812 from a reseller agreement that was terminated on June 22, 2014.

Net income for the fourth quarter of fiscal 2015 amounted to $286,087 (or $0.012 per share), compared with a net income of $383,140 (or $0.016 per share) for the corresponding quarter in 2014, a negative variation of $97,053 mostly resulting the Company's strategy to accelerate revenue growth through targeted investments.

EBITDA for the fourth quarter of fiscal 2015 was $450,805, representing 16% of revenues. The EBITDA for the fourth quarter of fiscal 2014 was $584,847 representing 22% of revenues.

Financial position

As at June 30, 2015, WANTED had $7,922,066 in cash and monetary investments, including $5,089,817 in redeemable term deposits. This compares to $6,724,870 in cash and monetary investments at the end of fiscal 2014, an increase of $1,197,196. Note that the term deposits of $5,089,817 as of June 30, 2015 are presented as non-current assets considering their expiry dates. This increase of $1,197,196 in the Company's liquidity is mostly the result of operating activities which, despite an accelerated pace in investments, generated $1,292,832 in cash flows since June 30, 2014. This positive contribution was however partially offset by disbursements related to the purchase of $495,337 in property, plant and equipment, most of it being computer equipment required to support new features, improve overall response time and upgrade the overall development and production infrastructure to support growth.

As at June 30, 2015, total assets amounted to $13,575,160 compared with $11,955,516 as at June 30, 2014, an increase of $1,619,644.

Those interested will be able to access the information on the June 30, 2015 audited 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, October 20^th, 2015.

Arrangement Agreement

Also, note that on September 11^th, 2015, WANTED announced that it has entered into a definitive agreement (the "Arrangement Agreement") with CEB Inc. (NYSE:CEB), a best practice insight and technology company, under which CEB will acquire all of Wanted Technologies' issued and outstanding common shares. Pursuant to the Arrangement Agreement, shareholders of Wanted Technologies will receive cash consideration of C$1.79 per share, which represents a premium of approximately 53% to the closing price of C$1.17 per share on the TSX Venture Exchange on September 9, 2015.

The Company also announced on September 24^th, 2015 that it has obtained an interim order from the Superior Court of Quebec (the "Interim Order") in connection with the acquisition. The Interim Order provides for, among other things, the holding of a special meeting of the holders of common shares of Wanted Technologies (the "Meeting") to approve the previously-announced plan of arrangement (the "Arrangement") under the Canada Business Corporations Act.

The Meeting is scheduled to be held on October 29, 2015, at the University Club of Montreal at 2045 Mansfield, Montreal, Quebec, at 10:30am. The record date for determining the shareholders entitled to receive notice and to vote at the Meeting has been fixed to be the close of business on September 28, 2015. Those meeting materials will be posted on Wanted Technologies' website and available under its profile on SEDAR at www.sedar.com.

About WANTED Technologies Corporation

WANTED Technologies helps organizations make intelligent hiring decisions. Combining real-time, talent sourcing activity with historical trends, the company's WANTED Analytics™ data science tool uses Big Data to align HR and recruiting professionals with global job market realities. WANTED transforms corporate HR into a strategic tool by providing detailed competitive information about employment trends, economic conditions, talent supply and demand, and other pertinent job market statistics. Using data-driven business intelligence, recruiters can develop comprehensive workforce strategies and quickly find top candidates for key positions. Equipped with insights based on exhaustive hiring data, employers make smarter investments in talented personnel that contribute to the long-term success of the enterprise.

WANTED Technologies (TSX-V:WAN) was founded in 1999 with offices in Quebec City, Canada and New York City. The company currently maintains a database of more than 1.2 billion unique job listings spanning more than 10 years and 11,000 occupational categories.

WANTED Analytics is a cloud-based talent recruitment tool that combines real-time job market information with historical data from more than one billion records spanning ten years, 25,000 sources, 11,000 occupational categories, and serves 22 countries. This global data source enables recruiting professionals to base critical hiring decisions on job market realities, eliminating hunches and guesswork. Professionals 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE WANTED Technologies Corp.

Meredith Amdur, President and CEO, Tel: [phone]; Mr. Martin Auclair, VP Finance and CFO, Tel: [phone], ext. 337