Groupworks Financial Corp.
TSX VENTURE : GWC

Groupworks Financial Corp.

April 24, 2009 12:49 ET

Groupworks Announces Second Quarter Results for Fiscal 2009

TORONTO, ONTARIO--(Marketwire - April 24, 2009) - Groupworks Financial Corp. ("Groupworks" or the "Company") (TSX VENTURE:GWC) announces its financial results for the three and six months ended February 28th, 2009. Revenue for the three months and six months ended February 28th, 2009 was $2,279,800 and $3,710,400 respectively, up from $1,902,000 and $3,160,300 for the same periods a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three and six months ended February 28th, 2009 was $937,600 and $1,070,500 versus $570,800 and $533,500 for the same periods last year. As a result of the improvement in revenue and expenses, the Company recorded a net income of $475,000 and $565,600 for the three and six months ended February 28th, 2009 compared to $214,900 and $62,100 for the same periods in fiscal 2008.

"Groupworks performed as expected in the first half of 2009 achieving both organic and acquisition growth. On January 30th, 2009 the Company closed the purchase of White Willow Benefit Consultants Incorporated ("White Willow") and subsequent to the quarter end, finalized the merger with People Corporation on March 1, 2009," commented John Gallivan, President. This was a very active quarter for our Company and consistent with our goal of operating accretive acquisitions and is supportive of Groupworks' mission of attracting and enhancing the value of quality group benefits and pension advisory practices for our partners and their clients," added Mr. Gallivan.

The financial position and results of operations of White Willow have been included in the Company's results since January 1, 2009. White Willow is a group benefits and pension advisory firm focused on mid-market corporate Canada and is widely recognized as a leading benefits practice in the Greater Toronto Area. The acquisition increases the revenue of Groupworks and further strengthens Groupworks' position as the leading consolidator of the independent benefit and pension advisory firms in Canada. Groupworks is committed to maintaining and growing White Willow under its current brand.

The financial position and results of operations of People Corporation have not been included in the Company's results for the period ended February 28, 2009. People Corporation via its wholly-owned subsidiaries, HealthSource Plus Inc. and People First HR Services Ltd., delivers strategic HR consulting services including: employee benefit consulting, third party administration, wellness programs, and other HR services including recruiting and career transition services to help its clients recruit, reward and retain the best people in their respective industries. People Corporation serves over 500 Canadian corporations with tens of thousands of employees and has over $100 million of funds under administration. Overall, it employs approximately 100 professionals and support staff through the two operating subsidiaries with offices in Toronto and St. Catharines, Ontario plus Montreal, Quebec and Winnipeg, Manitoba. The Winnipeg office also serves as its corporate head office.

The Financial Statements and Management Discussion and Analysis for the period ended February 28th, 2009, along with additional information about the Company and all of its public filings are available on www.sedar.com.

Groupworks Financial Corp. is a leading consolidator of independent employee benefits and pension consulting practices in Canada. The Company's objective is to become a national benefits and pension advisory and administration organization by building on the success of its acquisitions and highly experienced and capable management team that has a demonstrated track record of success.

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 Liscio
    CFO
    905-470-6588 Ext. 201