QUEBEC--(Marketwire - February 17, 2009) - WANTED Technologies (
TSX-V:
WAN)
-- Record quarterly revenues of $1,610,643 compared to $1,428,657 in last
fiscal year, an increase of 13 %
-- EBITDA of $278,211, compared to $218,501 for second quarter of prior
year, representing an increase of 27 %
-- Net earnings of $113,599, or 7.1% of revenues, compared to $106,935,
or 7.5% of revenues for the second quarter of prior year
-- Cash flows from operating activities of $454,337 for the second
quarter and $1,017,837 for the six-month period ended December 31, 2008
-- Increase of 50% in the installed base of business professionals using
WANTED Analytics™ for the second quarter of fiscal 2009 compared to the
second quarter of fiscal 2008
WANTED Technologies (
TSX-V:
WAN), the leading source of hiring demand
intelligence, reported today record revenue for the second quarter of
fiscal 2009 ended December 31, 2008. The company generated revenues of
$1,610,643, up 13 % over revenue of $1,428,657 for the second quarter of
fiscal 2008. All amounts are in Canadian dollars, unless otherwise
indicated.
"We achieved these results at a time of increasing economic uncertainty,"
said Bruce Murray, President and CEO of WANTED. "We are particularly
encouraged by the decisions of major clients to extend the scope of their
subscriptions to our employment market business intelligence platform,
WANTED Analytics."
The majority of WANTED's clients currently serve the employment and
advertising services marketplace. Both sectors are expected to experience
pressure on their revenues during the current economic recession.
"During the second quarter, we began a concerted effort to introduce WANTED
Analytics to new market segments," said Murray. "These initiatives, which
involve an increased allocation of sales and marketing expenses, are
critical for WANTED to diversify its customer base and reach clients whose
businesses are less prone to economic cycles."
Revenues for the second quarter ended December 31, 2008 were $1,610,643,
representing an increase of $181,986 or 13 % over $1,428,657 posted for the
corresponding quarter of the previous year. For the six-month period ended
December 31, 2008, revenue totalled $3,021,180, compared to $2,876,646 for
the same period in the previous fiscal year, an increase of 5 %.
WANTED's business model is largely focused on building its recurring
revenue base through annual subscriptions to its leading employment market
intelligence platform, Analytics™ 2.0. Approximately 92 % of total
revenue for the second quarter of fiscal 2009 came from recurring revenue
contracts, compared to 79 % for the corresponding quarter of prior year.
The recurring revenue base increased from 4.6 million at the end of the
second quarter of fiscal 2008 to 6.3 million at the end of the second
quarter of fiscal 2009, an increase of 37 %. At the end of the first
quarter of fiscal 2009 ended September 30, 2008, the recurring revenue base
stood at 5.2 million. The increase, both in the revenue and the recurring
revenue base combined with favourable exchange rates during the first six
months of fiscal 2009, reflects an extremely positive reaction from the
market to the newly-released online employment platform Analytics™ 2.0.
Operating costs increased from $1,191,406 in the second quarter of fiscal
2008 to $1,530,992 for the second quarter of fiscal 2009, an increase of
$339,586 or 29 %. For the first six months of fiscal 2009, operating costs
totalled $2,697,513, compared to $2,491,963 for the first six months of the
previous fiscal year, an increase of $205,550 or 8 %. These increases are
directly attributable to investments in hiring additional resources in both
sales and product marketing to support the newly released Analytics™ 2.0
in new market segments.
EBITDA for the second quarter of fiscal 2009 was $278,211 compared with
$218,501 for the second quarter of fiscal 2008, an increase of $59,710, or
27 %. For the first six months of fiscal 2009, EBITDA totalled $666,282,
compared to $450,431 for the first six months of the previous fiscal year,
an increase of $215,851 or 48 %. EBITDA represents the net earnings before
net financial expense, income taxes, depreciation and amortization on
property, plant and equipment and intangible assets. As generally accepted
accounting principles in Canada do not provide a standardized definition
for this measure, it may not be comparable to similar measures used by
other companies.
Net earnings for the quarter ended December 31, 2008 amounted to $113,599
($0.005 per share) compared to $106,935 ($0.004 per share) for the
corresponding quarter of the previous year, an increase of $6,664, or 6 %.
For the first six months of fiscal 2009, net earnings reached $338,348,
compared to $220,339 for the first six months of the previous fiscal year,
an increase of $118,009 or 54 %.
Three-month periods Six-month periods
ended December 31 ended December 31
---------------------- ----------------------
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ---------- ----------- ----------
$ $ $ $
Revenues 1,610,643 1,428,657 3,021,180 2,876,646
Cost of goods sold 29,449 123,817 37,192 123,817
----------- ---------- ----------- ----------
Margin 1,581,194 1,304,840 2,983,988 2,752,829
Expenses
Research and development,
net of tax credits 404,280 412,513 727,786 834,920
Marketing and selling 694,071 344,945 1,171,894 736,523
General and
administrative 370,174 370,479 674,183 781,285
Amortization of
intangible assets 52,311 52,311 104,623 104,623
Financial expenses, net
amount 10,156 11,158 19,027 34,612
----------- ---------- ----------- ----------
1,530,992 1,191,406 2,697,513 2,491,963
----------- ---------- ----------- ----------
Earnings before other
revenue (expenses) 50,202 113,434 286,475 260,866
Other revenue (expenses):
Exchange gain (loss) 122,761 (8,561) 171,117 (42,589)
Gains on disposal of
property, plant and
equipment 50 2,062 50 2,062
----------- ---------- ----------- ----------
Earnings before income
taxes 173,013 106,935 457,642 220,339
Income taxes 59,414 119,294
----------- ---------- ----------- ----------
Net earnings and
Comprehensive Income 113,599 106,935 338,348 220,339
=========== ========== =========== ==========
Basic and diluted net
earnings per share 0.005 0.004 0.014 0.009
Cash flows generated from operating activities were $454,337 for the second
quarter of fiscal 2009 compared to cash flows used for operating activities
of $135,847 in the corresponding quarter of previous year, a positive
variation of $590,184. This variation mostly results from a positive
variance of $598,339 in the changes in the working capital items mostly
resulting from significant accounts receivable collection in the six-month
period ended December 31, 2008 compared to customer payments being delayed
in the corresponding six-month period of the previous year. For the first
six months of fiscal 2009, cash flows from operating activities reached
$1,017,837, compared to cash flows used for operating activities of $32,605
in the corresponding period of previous year, a positive variation of
$1,050,442.
Financial position
As at December 31, 2008, WANTED had working capital of $1,945,695 compared
to $1,604,785 at June 30, 2008, an increase of $340,910. Cash and
short-term investments stood at $2,021,934 at December 31, 2008 compared to
$1,265,871 at June 30, 2008, a significant increase of $756,063 mostly
resulting from cash flows generated by the operating activities.
Total assets stood at $6,212,988 at December 31, 2008, up $407,767 from
$5,805,221 at June 30, 2008. The increase in total assets is mainly due to
an increase of $482,658 in current assets, partially offset by a decrease
in intangible assets of $104,623 resulting from the amortization expense.
Those interested will be able to access the information on the December 31,
2008 unaudited consolidated financial statements, the notes thereto and the
management discussion and analysis via the Internet at
www.sedar.com and at
the Company's website,
www.wantedtech.com, as of Tuesday, February 17th,
2009.
About WANTED Technologies Corporation
WANTED is the leading source of hiring demand intelligence. Clients in the
media, HR/staffing, financial services and government sectors use WANTED's
online data and SaaS-based analytical solutions to identify economic
trends, analyze competitive and market activities and prioritize sales
opportunities.
WANTED is also the exclusive data provider for The Conference Board's
Help-Wanted Online Data Series™, the monthly economic indicator of hiring
demand in the United States.
WANTED Technologies (
TSX-V:
WAN) was founded in 1999. The company's
headquarters are in Quebec City, Canada, and it maintains a US-based
subsidiary with primary offices in New York City. The company began
collecting detailed hiring demand data in October, 2002, and currently
maintains a database of hundreds of millions of unique job listings. Visit
www.wantedtech.com for more information about how WANTED helps
organizations make better decisions and improve sales results.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release. Any statement that appears prospective shall not
be interpreted as such.