Q2-2015 Highlights
- Revenues of $2,483,815, an
increase of 5%, or $122,898 compared
to revenues of $2,360,917 in the
second quarter of fiscal 2014. Note that revenues from the second
quarter of the prior year included an amount of $300,281 from a reseller partner agreement that
terminated in June 2014. Excluding
the revenues from this partner, revenue grew $423,179, or 21% over the prior year.
- In October, Meredith Amdur was
appointed as new CEO to lead WANTED into its next phase of
growth.
- Net loss of $124,188
($0,005 per share) compared to a net
income of $1,015,618 ($0,042 per share) in the second quarter of fiscal
2014, a decrease of $1,139,806 mostly
explained by the combination of two non-recurring elements,
including the change in management.
- Despite the termination in June
2014 of a significant reseller agreement, increase of 25% in
trailing twelve-month revenues, to reach $10,334,066 for the twelve-month period ended
December 31, 2014.
- Growth of 16% in the Company's recurring revenue base in US
dollars (23% in CAD dollars), from an annualized value of
US$7.0 million as of December 31, 2013 (excluding US$1.1 million reported in prior year as
recurring revenue from a reseller partnership terminated in
June 2014) to US$8.1 million as of December 31, 2014.
- In January 2015, release of the
new WANTED AnalyticsTM International product for
the UK, China, Singapore and Australia, offering real time hiring demand
and candidate supply analysis.
- WANTED continues to adapt its products and invest in direct
sales to accelerate the international deployment of its solution
and try to increase rapidly its global market footprint for its big
data analytics solutions in the Human Capital Management
sector.
NEW YORK CITY and QUEBEC
CITY, Feb. 24, 2015 /CNW Telbec/ -
WANTED Technologies (TSXV: WAN), the leading supplier of big
data analytics for the human capital marketplace, reported today
revenues of $2,483,815 for the second
quarter ending December 31, 2014, a
5% gain over the same quarter of the prior year. For the first six
months of fiscal 2015, revenues increased 6% to reach $4,625,687 compared to $4,348,269 for the first six months of the
previous fiscal year. Note that the revenues of $2,360,917 recorded in the second quarter of
fiscal 2014 ended December 31, 2013
included revenues totalling $300,281
from a reseller partnership that terminated in June 2014. Excluding revenues from this reseller
from the prior year, revenue grew by $423,179 or 21% over the prior year.
The Company also reported a net loss of $124,188 ($0,005
per share) for the second quarter of fiscal 2015 compared to a net
income of $1,015,618 ($0,042 per share) in the second quarter of fiscal
2014, a decrease of $1,139,806. As
the Company continues to innovate in the market and expand its
customer footprint, including the recent launch of an international
version of its services, the combination of two non-recurring
elements totalling approximately $930,000 explain the vast majority of this
negative variance of $1,139,806.
While non-recurring expenses of approximately $450,000 were recorded in the second quarter of
fiscal 2015 from a change in management, the second quarter of
prior year benefited from non-recurring tax credits receivable
amounting to $480,000 recorded
against the research and development expenses. Stock-based
compensation expenses of $160,199
recorded in the second quarter of fiscal 2015 also contributed to
this negative variance. All amounts are in Canadian dollars, unless
otherwise indicated.
"WANTED continues to deliver on its plan to expand customer
reach globally and enhance its database and product value to drive
long term revenue growth. The second quarter results are indicative
of the steady demand among our key corporate HR and staffing
customers, said Meredith Amdur,
WANTED's President and CEO. "We doubled the size of our
direct sales force since the second quarter a year ago, an
investment we will continue to leverage as product roll-out
continues."
Excluding any revenue from the partnership that ended in
June 2014 from the prior year
results, quarterly revenues derived from the combined Corporate and
Staffing sectors increased 57% in fiscal 2015 and represented 34%
of total revenues, compared to 26% in the prior year.
"The roll-out of WANTED's international data and analytics
solution continues to enhance the value of our existing talent
sourcing tool. We will be expanding to 20 territories over the next
12 months, enabling the Company to better meet the needs of many
multinational corporations and clients, up to a third of whose
employee base is outside of North
America, by offering them a reliable global view of an
increasingly cross-border market for key skills and talent."
"Along with growing penetration of cloud-based software
solutions for human capital management, we are seeing greater
sophistication and demand from our corporate HR customers for data
and intelligence tools that will give them an edge in the
competitive market for critical skills and long term talent
management and retention," Amdur said. "WANTED arms hiring managers
and recruiters with employment market intelligence, competitive
benchmarks and detailed skills data to better anticipate demand,
cost and time required to fill jobs and optimize talent sourcing
strategies."
As of December 31, 2014, contracts
in hand, in US dollars, had an approximate value of 8.1 million dollars in annualized recurring
revenues, an increase of 1.1 million
dollars or 16% over an annualized recurring revenue book of
7.0 million dollars as of
December 31, 2013 (excluding
US$1.1 million reported in prior year
as recurring revenue contracts from a reseller partnership
terminated in June 2014).
At the end of second quarter of fiscal 2015, 70% of the
recurring revenue base was supported by contracts from the
Staffing, Corporate and Government sectors. This compares to 65% at
the end of the corresponding quarter of the previous year (adjusted
to exclude revenues associated with the reseller partner terminated
in June 2014).
|
Three-month periods
ended
December
31,
|
|
Six-month periods
ended
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenues
|
2,483,815
|
|
2,360,917
|
|
4,625,687
|
|
4,348,269
|
Cost of
sales
|
(88,689)
|
|
(76,336)
|
|
(170,862)
|
|
(150,029)
|
Gross
Margin
|
2,395,126
|
|
2,284,581
|
|
4,454,825
|
|
4,198,240
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Research and
development
|
(863,535)
|
|
(226,971)
|
|
(1,620,345)
|
|
(836,766)
|
|
Marketing and
selling
|
(760,013)
|
|
(530,405)
|
|
(1,435,222)
|
|
(1,000,010)
|
|
Administrative
|
(1,012,476)
|
|
(470,020)
|
|
(1,574,874)
|
|
(794,185)
|
|
Other financial
expenses
|
(6,748)
|
|
(5,270)
|
|
(12,841)
|
|
(9,355)
|
|
Other
|
40
|
|
|
|
40
|
|
|
|
(2,642,732)
|
|
(1,232,666)
|
|
(4,643,242)
|
|
(2,640,316)
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(247,606)
|
|
1,051,915
|
|
(188,417)
|
|
1,557,924
|
|
|
|
|
|
|
|
|
Finance
income
|
99,228
|
|
48,358
|
|
222,155
|
|
16,582
|
Finance
costs
|
(377)
|
|
(1,642)
|
|
(757)
|
|
(2,389)
|
|
|
|
|
|
|
|
|
Income (loss) before
tax
|
(148,755)
|
|
1,098,631
|
|
32,981
|
|
1,572,117
|
|
|
|
|
|
|
|
|
Current tax revenue
(expense)
|
1,290
|
|
(38,265)
|
|
(137,201)
|
|
(72,816)
|
Deferred tax income
(expense)
|
23,277
|
|
(44,748)
|
|
62,522
|
|
(25,179)
|
|
|
|
|
|
|
|
|
Net income (loss) and
comprehensive income (loss)
|
(124,188)
|
|
1,015,618
|
|
(41,698)
|
|
1,474,122
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
(0.005)
|
|
0.042
|
|
(0.002)
|
|
0.061
|
Diluted net income
(loss) per share
|
(0.005)
|
|
0.041
|
|
(0.002)
|
|
0.059
|
Operating costs for the second quarter of fiscal 2015 totalled
$2,642,732, an increase of
$1,410,066 over the same quarter of
prior year, of which, approximately $930,000 was caused by the non-recurring fees
associated with management change and the non-recurring tax credits
recorded in prior year mentioned above. Excluding these two
elements, the increase would have been of approximately
$480,000, or 28%, for the most part
due to investments in research and development and marketing and
selling as the Company continues to innovate in the market and
expand its footprint, both in North
America and internationally. Note also that the issuance of
650,000 stock options during the quarter triggered an increase in
stock-based compensation expense of $154,930.
For the first six months of fiscal 2015, operating costs
totalled $4,643,242 compared to
$2,640,316 for the first six months
of the previous fiscal year, an increase of $2,002,926 or 76%. This significant increase is
also mostly due to the combination of the non-recurring elements
described above and additional investments in research and
development and marketing and selling for growth. Also, during the
first six months of fiscal 2015, a total of 1,530,000 stock options
were issued, increasing the stock-based compensation expense by
$395,602 over the corresponding
period of prior year.
EBITDA for the second quarter of fiscal 2015 was a negative
$35,408, compared to a positive
EBITDA of $1,215,854 in the second
quarter of fiscal 2014, a negative variation of $1,251,262. For the first six months of fiscal
2015, EBITDA totalled $251,367,
compared to an EBITDA of $1,798,689
in the first six months of the previous year, a decrease of
$1,547,322. As noted above, the
EBITDA was negatively affected by the two non-recurring items
totalling approximately $930,000, by
stock based compensation and investments for growth. EBITDA
represents the net income before net finance costs excluding gain
or loss due to variation in foreign exchange, income taxes on net
income, and amortization and impairment of property, plant and
equipment and intangible assets. As International Financial
Reporting Standards do not provide a standardized definition for
this measure, it may not be comparable to similar measures used by
other companies.
|
Reconciliation of EBITDA to Net Income
(Loss)
|
|
|
Q2-2015
|
Q2-2014
|
6
mts-2015
|
6
mts-2014
|
|
|
12/31/2014
|
12/31/2013
|
12/31/2014
|
12/31/2013
|
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
Net income (loss) for
the period
|
|
(124,188)
|
1,015,618
|
(41,698)
|
1,474,122
|
|
|
|
|
|
|
PLUS
(LESS):
|
|
|
|
|
|
|
Income tax expense
(income)
|
|
(24,567)
|
83,013
|
74,679
|
97,995
|
|
Finance income -
net
|
|
(98,851)
|
(46,716)
|
(221,398)
|
(14,193)
|
|
Other financial
expenses
|
|
6,748
|
5,270
|
12,841
|
9,355
|
|
Amortization of
property, plant and equipment
|
|
92,720
|
72,494
|
169,873
|
139,244
|
|
Amortization of
intangible assets
|
|
40,755
|
40,770
|
81,525
|
81,540
|
|
Net gains on foreign
exchange
|
|
71,975
|
45,405
|
175,545
|
10,626
|
EBITDA
|
|
(35,408)
|
1,215,854
|
251,367
|
1,798,689
|
|
|
|
|
|
|
The net loss for the second quarter of fiscal 2015 was
$124,188, or $0.005 per share. This compares to a net income
of $1,015,618 in the second quarter
of fiscal 2014 or $0.042 per
share.
Financial position
As at December 31, 2014, WANTED
had $6,369,526 in cash and monetary
investments, including $4,037,852 in
redeemable term deposits, compared with $6,724,870 as at June 30,
2014. This decrease of $355,344 in the Company's liquidity mostly
results from investment in additional infrastructure to support the
new international product offering that resulted in cash
disbursements of $412,388 and payment
of $93,435 on capital leases related
to the purchase of computer equipment. These disbursements were
however partially offset by the issuance of 392,000 common shares
following the exercise of stock options for a total cash
consideration of $156,800.
As at December 31, 2014, total
assets stood at $11,971,886 compared
with $11,955,516 as at June 30, 2014, an increase of $16,370.
Those interested will be able to access the information on the
December 31, 2014 unaudited interim
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 24, 2015.
About WANTED Analytics™
WANTED Analytics™ is a cloud-based, global data science
tool, made up of more than one billion records that help recruiting
organizations make better decisions faster with real-time business
intelligence on jobs, employers, and talent. Analytics brings
together, years of hiring demand and talent supply data to create a
true talent intelligence platform for hard-to-fill positions. In
addition to providing its own analytical products, WANTED partners
with other organizations who access WANTED's data and analytics
within their ATS and other CRM systems automatically through
APIs.
Clients in the staffing, HR, RPO, media, and government sectors
use WANTED Analytics™ to find sales leads, analyze
employment trends, gather competitive intelligence, forecast
economic conditions, and source hard-to-fill positions.
About WANTED Technologies Corporation
WANTED Technologies (TSX-V:WAN) provides real-time data
analytics for the talent marketplace. 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.
WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of
more than one billion unique job listings. For more information or
to sample WANTED's services, visit www.wantedanalytics.com.
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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE WANTED Technologies Corp.