People Corporation
TSX VENTURE : PEO

People Corporation

September 04, 2012 09:00 ET

People Corporation Acquires JSL Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2012) - People Corporation ("People" or the "Company") (TSX VENTURE:PEO) announces that it has completed another important milestone towards expanding its operations in the province of Ontario by acquiring all the outstanding common shares of JSL Inc ("JSL") from its principal, Thomas Lowden. The acquisition has an effective date of September 1, 2012.

JSL was established in 1976, and provides employee benefits solutions, consulting services and practical health management programs to its clients. JSL specializes in mid-market corporate clients and has taken a unique partnership approach with clients to develop customized employee benefits programs that meet the changing needs of their businesses and employees.

"Mr. Lowden has built a well recognized benefits practice that is known for delivering unique and customized benefits solutions to its clients. The acquisition of JSL continues to prove out the Company's ability to attract amazing businesses and top talent to the People Corporation family," said Laurie Goldberg, Chairman and CEO of People Corporation. "Expanding through acquisitions is an important component of our growth strategy and we are pleased that this acquisition will further enhance our momentum towards that end."

The acquisition of JSL is the Company's eighth acquisition since 2006 and the first since the Company introduced its new acquisition model 'be in business for yourself, not by yourself'. We partner with strong firms and make them stronger by providing our partner firms with deeper resources in a Company that has the financial and intellectual capital to prepare them for the next level of growth.

"I am extremely excited about this partnership," said Thomas Lowden, Principal of JSL. "By partnering with People Corporation, I will be able to continue building my practice but will now be able to leverage the resources of a strong national company and its 'shared services offerings' to attract and retain clients through a best in class client service model, proprietary products, industry and sector expertise, technology, underwriting and national reach that our firm could not have developed on our own."

Thomas has been specializing in the group benefits field for over 20 years. During that time, he has been an underwriter, field underwriter, Service and Sales Representative as well as Senior Account Executive. He has sat on Administration, Disability and Flexible Benefit steering committees for several major insurance companies. Presently, he is a member in the Canadian Pension and Benefits Institute (CPBI) as well as provides group benefit consulting services to other insurance advisors. Thomas is a graduate of the University of Western Ontario. In addition, he has succeeded in obtaining his Group Benefits Analyst (GBA) designation from the International Foundation of Employee Benefit Specialists and is now working toward his Certified Health Specialist (CHS) designation.

About People Corporation

People Corporation is a leading employee benefits, group retirement and human resource consulting firm in Canada. With a growing national footprint and fourteen offices across seven provinces, the Company is bringing together the leading consultants in the industry, offering innovative and customized human resource, benefit and pension solutions to its clients. Additional corporate information is available at www.peoplecorporation.com.

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 including the completion of the transaction, the impact of that transaction on our earnings and cash flow, and the anticipated benefits of the transaction. 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). Those risks and uncertainties include: our ability to maintain profitability and manage growth; strong competition from other consultants and changes in the current legislation could result in significant competition from the banking industry; failure of information systems and technology; dependence on key clients; seasonality of revenues and the resulting possible impairment on working capital; reliance on key professionals; additional financing may be required and may not be available under terms favourable to us; there can be no assurance that any suitable future acquisition will be available to us or that, if available, the terms of the acquisition will be favourable to us; and a change in general economic conditions. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking information made by us or on our behalf. Given these risks and uncertainties, investors should not place undue reliance on forward looking information as a prediction of actual results. All forward-looking information in this news release is qualified by these cautionary statements. 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.

Non-IFRS Financial Measures

EBITDA, which is defined as earnings (loss) before interest, taxes, dividends, depreciation and amortization, is not a financial measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Operating Income before Corporate Costs means EBITDA plus expenses incurred at the corporate office and expenses related to acquisitions ("Corporate Costs"). Analysis of these differences enables understanding of the operating leverage inherent in the financial results of an acquisitive company. Operating leverage is a term used to describe the quantum of acquired EBITDA that falls to EBITDA of a company following an acquisition and is useful to the understanding of the resulting incremental overheads and synergies. The Company believes that these Non-IFRS financial measures provide meaningful information on the Company's performance and operating results. Readers are cautioned that EBITDA or the Company's calculation of the Operating Income do not have standardized meanings as prescribed by IFRS and may not be comparable to similar measures presented by other companies. Further, readers are cautioned that EBITDA or Operating Income should not replace Net income or loss or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of the Company's performance.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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