SOURCE: Thinkpath, Inc.

November 20, 2007 13:09 ET

Thinkpath Third Quarter and Nine Months Results; Revenues Up, EBITDA Positive

TORONTO--(Marketwire - November 20, 2007) - Thinkpath, Inc. (OTCBB: THPHF), a global leader in engineering and design services, announced financial results for the Company's three and nine months ended September 30, 2007.

Revenues were up 5%, or $170,000, to $3,670,000 for the three months ended September 30, 2007 compared to $3,500,000 for the same period last year. Revenues were up 15%, or $1,480,000, to $11,680,000, for the nine months ended September 30, 2007 compared to $10,200,000 for the same period last year.

Net earnings before interest, taxes, depreciation and amortization (EBITDA) were $100,000 for the three months ended September 30, 2007 versus negative $(175,000) for the same period last year. EBITDA of $570,000 was realized for the nine month period ended September 30, 2007 versus negative $(550,000) for the 2006 like period. Net loss for the three months ended September 30, 2007 was $(520,000), or $(0.05) per share, compared to a net loss of $(380,000), or $(0.04), per share for the same period last year. Net loss for the nine months ended September 30, 2007 was $(450,000), or $(0.05) per share, compared to $(1,720,000), or $(0.26) per share, for the same 2006 period.

Included in interest charges for the three and nine months ended September 30, 2007 are accrued fees and penalties of approximately $300,000 and $670,000, respectively, related to the Company's debt agreements with its primary lender. Specifically, the Company's failure to file and effect a registration statement registering the shares underlying the warrants granted to the lender. Subsequent to the quarter end, the lender agreed to forgive these fees, waive additional fees and postpone the filing deadline until March 31, 2008. Debt forgiveness of approximately $670,000 will be recognized by the Company in the fourth quarter this year.

About Thinkpath

Thinkpath, Inc. (OTCBB: THPHF) is a global provider of engineering design services and on-site engineering support. Customers include defense contractors, aerospace, logistics, healthcare, pharmaceutical and manufacturing companies, including Johnson & Johnson, Lockheed Martin, General Dynamics, Siemens, Federal Express, L-3 Communications, and Cummins Engines.

Thinkpath is positioned in growth industries, targets customers with growing revenues who require its specialized design services and engineering support. Thinkpath is poised to benefit from increased demand generated by these targeted industries, and customers, that increasingly rely on project engineering design and technical staffing services.

For over 25 years, Thinkpath has helped companies achieve success with design and engineering objectives from office design centers located in the US and Canada, and partner in India. Our vision is to build lasting partnerships with our clients by delivering cost effective, quality, project engineering services; thus allowing us national and international scope, a respected, public company and a significant player in the defense, medical devices, and material handling industries.

For further information click on www.thinkpath.com

The Company defines EBITDA as Net earnings (loss) before interest expense, income taxes, depreciation and amortization, write down of property and equipment, financing costs and other costs. EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP") in the United States of America and may not be comparable to a similar measure used by other companies. The Company has included information concerning EBITDA because it believes it is a useful financial indicator commonly used by investors. Management uses EBITDA as one measure to assess the operating performance of its branch units.

SAFE HARBOR STATEMENT: Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Some of the factors that may affect the forward-looking statements in this news release are the ability to grow our business, attract new or retain existing customers and/or professional staff, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Thinkpath, Inc. takes no obligation to update or correct forward-looking statements.

THINKPATH INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(AMOUNTS EXPRESSED IN U.S. DOLLARS)

                              Three Months Ended      Nine Months Ended
                                September 30,            September 30,
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
                                     $           $           $           $

REVENUE                      3,667,560   3,498,968  11,681,245  10,203,105

COST OF SERVICES             2,387,020   2,333,733   7,537,687   6,993,813
                            ----------  ----------  ----------  ----------

GROSS PROFIT                 1,280,540   1,165,235   4,143,558   3,209,292
                            ----------  ----------  ----------  ----------

EXPENSES
  Administrative               710,298     750,360   2,125,103   2,229,443
  Selling                      468,571     589,469   1,446,298   1,527,946
  Depreciation and
   amortization                113,285     186,376     329,382     450,083
  Write down of property
   and equipment                   104           -       3,547           -
  Financing costs and
   mark-to-market
   adjustments                 (41,694)    (38,277)     31,494     415,271
  Debt forgiveness                   -           -    (713,884)    (78,062)
  Loss on Sale of
   Subsidiary                        -      16,160           -      16,160
                            ----------  ----------  ----------  ----------
                             1,250,564   1,504,088   3,221,940   4,560,841
                            ----------  ----------  ----------  ----------

INCOME (LOSS) BEFORE INTEREST
 CHARGES AND INCOME TAXES       29,976    (338,853)    921,618  (1,351,549)

  Interest Charges             533,292     150,214   1,353,896     454,409
                            ----------  ----------  ----------  ----------

INCOME (LOSS) BEFORE INCOME
 TAXES                        (503,316)   (489,067)   (432,278) (1,805,958)

  Income Taxes (note 14)        14,849    (105,562)     18,690     (86,524)
                            ----------  ----------  ----------  ----------

NET INCOME (LOSS)             (518,165)   (383,505)   (450,968) (1,719,434)
                            ==========  ==========  ==========  ==========

WEIGHTED AVERAGE NUMBER OF
 COMMON STOCK
 OUTSTANDING BASIC AND
 DILUTED                     9,504,715   9,940,669   9,131,459   6,491,494
                            ==========  ==========  ==========  ==========

NET INCOME (LOSS) PER WEIGHTED
 AVERAGE COMMON STOCK
 BASIC AND DILUTED               (0.05)      (0.04)      (0.05)      (0.26)
                            ==========  ==========  ==========  ==========

Contact Information

  • Contact:
    ROI Group LLC
    Michael Dodge
    212.495.0744
    mdodge@roiny.com

    Thinkpath Inc.
    Kelly Hankinson
    CFO
    416-622-5200