Groupworks Financial Corp.
TSX VENTURE : GWC

Groupworks Financial Corp.

November 21, 2008 18:25 ET

Groupworks Financial Corp. Announces Results for Year End and Fourth Quarter of 2008

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2008) - Groupworks Financial Corp. ("Groupworks" or the "Company") (TSX VENTURE:GWC) announces its financial results for the fourth quarter and year ended August 31, 2008. Revenue for both the three and twelve month period ended August 31, 2008 was $1,528,342, and $6,897,935 respectively up 41% and 79% over the same periods a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended August 31, 2007 was $115,221 while EBITDA for the twelve months ended August 31, 2007 was $1,082,672 or 15.7%. The Company recorded a net loss of $79,173 for the three months ended August 31, 2008 and net income of $148,982 for the twelve months ended August 31, 2008.

"This was a very important year in the growth of Groupworks. We achieved some critical business goals during the year by integrating the first three acquisitions, increasing our deal pipeline, and recording positive financial results; all critical elements and important milestones in executing our business plan of consolidating the independent benefits and pension marketplace in Canada," said John Gallivan, President & CEO.

"The results of the year clearly demonstrate our increasing momentum. The combined positive results of The Investment Guild, Buffett Taylor, and Gallivan & Associates covering various segments of the group benefit and pension advisory services industry, serve our brand and value proposition to potential partners, prospective investors and our clients," said Mr. Gallivan."The operating margin was strong at 31.5% for the year, consistent with our plan of operating with margins in excess of 30%," added Mr. Gallivan.

The Financial Statements and Management Discussion and Analysis for the period ended August 31, 2008, along with additional information about the Corporation, including its interim unaudited financial statements and prospectus dated April 27, 2007 and all public filings are available on www.sedar.com.

Non GAAP Financial Measures

EBITDA is not an earnings measure recognized under GAAP and does not have standardized meaning prescribed by GAAP. Therefore, they may not be comparable to similar measures presented by other entities. Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative to net income or loss determined in accordance with GAAP as indicators of the Company's performance, or to cash flow from operating, investing and financing activities as measures of liquidity and cash flows.

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. 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 www.sedar.com). 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.

Contact Information

  • Groupworks Financial Corp.
    Rocco Lsiscio
    CFO
    (905) 470-6588