SOURCE: Thinkpath Inc.

August 21, 2007 07:00 ET

Thinkpath Reports Second Quarter and Six Months Results; $.03 and $.01 Earnings per Share for Respective Periods; EBITDA of $1.2 Million Projected for Year 2007

New Customer Wins, Aggressive Marketing to Existing Clients Key to Generating Top Line Revenues, Driving Profitability

TORONTO--(Marketwire - August 21, 2007) - Thinkpath, Inc. (OTCBB: THPHF), a global leader in engineering and design services, announced achieving $.03 in earnings per share for the second quarter ended June 30, 2007, versus a loss of $(.22) per share for the like year earlier period. For the six months period ended June 30, 2007, Thinkpath earned $.01, versus a loss of $(.31) per share for the prior six month period. Revenues for the three months ended June 30, 2007 were $4,161,000, up 10%, versus $3,793,000 reported for the second quarter of 2006. For the six months ended June 30, 2007, revenues were $8,013,000, up 20%, compared to $6,704,000 for the same period last year.

Net earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter and six months, both ended June 30, 2007, were respectively, $234,000 and $470,000, versus a negative $(115,000) and $(373,000), for the prior second quarter and six month periods ended June 30, 2006. The average weighted common shares outstanding for the second quarter just ended were 8,067,000 versus 4,369,000 for the second quarter of 2006, and for the six months just ended 8,941,000 versus 4,369,000.

Thinkpath Chairman and CEO, Declan French, said, "Our renewed focus on aerospace and defense and on growing existing accounts is paying off and has led to higher gross margins while reducing SG&A costs; based on our growing sales pipeline it is reasonable to expect the 3rd and 4th quarters to continue to grow at a similar rate."

"Thinkpath has been focused on improving bottom-line results while at the same time significantly improving our top line growth, as may been seen from the results we achieved in the second quarter of this year. We will continue to drive revenues in the coming quarters and to accelerate earnings per share and cash flow. We believe we represent an excellent growth opportunity to our shareholders and the investment community. We will continue to strive to be a leader in providing engineering design services and on-site engineering support to our growing list of clients throughout North America, and globally," said Kelly Hankinson, Thinkpath's CFO.

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 and Johnson, Lockheed Martin, General Dynamics, Siemens, Federal Express, L-3 Communications, and Cummins Engines.

Thinkpath is positioned in growth industries, targeting 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, debt forgiveness 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.

                     FINANCIAL RESULTS FOR SECOND QUARTER
                      AND SIX MONTHS ENDED JUNE 30, 2007


                              Three Months Ended      Six Months Ended
                                   June 30,               June 30,
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
                                $           $           $           $

REVENUE                      4,161,753   3,793,823   8,013,685   6,704,137

COST OF SERVICES             2,667,742   2,558,950   5,150,667   4,660,079
                            ----------  ----------  ----------  ----------

GROSS PROFIT                 1,494,011   1,234,873   2,863,018   2,044,058
                            ----------  ----------  ----------  ----------

EXPENSES
  Administrative               749,819     885,860   1,414,805   1,479,085
  Selling                      509,783     464,660     977,727     938,476
  Depreciation and
   amortization                112,847     175,775     216,097     263,707
  Write down of property
   and equipment                     -           -       3,443           -
  Financing costs and
   mark-to-market
   adjustments                  69,157     577,756      73,188     453,549
  Debt forgiveness            (713,884)    (78,062)   (713,884)    (78,062)
                            ----------  ----------  ----------  ----------
                               727,722   2,025,989   1,971,376   3,056,755
                            ----------  ----------  ----------  ----------

INCOME (LOSS) BEFORE
 INTEREST CHARGES
 AND INCOME TAXES              766,289    (791,116)    891,642  (1,012,697)

  Interest Charges             509,664     161,964     820,604     304,195
                            ----------  ----------  ----------  ----------

INCOME (LOSS) BEFORE INCOME
 TAXES                         256,625    (953,080)     71,038  (1,316,892)

  Income Taxes                     300      11,194       3,841      19,037
                            ----------  ----------  ----------  ----------

NET INCOME (LOSS)              256,325    (964,274)     67,197  (1,335,929)
                            ==========  ==========  ==========  ==========

WEIGHTED AVERAGE NUMBER OF
 COMMON STOCK
  OUTSTANDING BASIC AND
   DILUTED                   8,067,112   4,369,147   8,941,738   4,369,147
                            ==========  ==========  ==========  ==========

NET INCOME (LOSS) PER
 WEIGHTED AVERAGE COMMON
 STOCK
  BASIC AND DILUTED               0.03       (0.22)       0.01       (0.31)
                            ==========  ==========  ==========  ==========

Contact Information

  • Contact:
    Michael Dodge
    ROI Group LLP
    39 Broadway
    NY, NY 10006
    212.495.0744
    mdodge@roiny.com

    Thinkpath Inc.
    Kelly Hankinson, CFO
    416-622-5200