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People Corporation Announces Record First Quarter Results

TORONTO, ONTARIO -- (Marketwired) -- 01/27/14 -- People Corporation (the "Company") (TSX VENTURE: PEO) today announced record financial results for the first quarter of fiscal 2014.

"We continue to demonstrate company-wide positive momentum as an outcome of our strategic initiatives, the impact of acquisitions and from driving organic growth. As a result of this momentum, I am pleased that we are once again reporting record financial results for the first quarter of 2014," said Laurie Goldberg. "The Company's financial performance is a reflection of the value we can deliver to shareholders from a focus on our strategic plan while ensuring that we continue to be a client-centric company."

Highlights of Financial Results for the three months ended November 30, 2013

Financial Results from Operations

People Corporation's financial results for the quarter ended November 30, 2013 are the result of ongoing focused execution of the Company's organic growth initiatives, growth from acquisitions, and continued operational discipline. For the quarter ended November 30, 2013, revenues increased 39.3% to $9.8 million, and Adjusted EBITDA grew by 107.3% to $1.85 million.


                                     3 months ended 3 months ended
                                       Nov 30, 2013   Nov 30, 2012  Increase
Revenue                             $   9,768,753  $   7,013,582       39.3%

EBITDA before corporate costs       $   2,622,148  $   1,718,537       52.6%
EBITDA before corporate costs margin         26.8%          24.5%       2.3%

Adjusted EBITDA                     $   1,850,233  $     892,329      107.3%
Adjusted EBITDA margin                       18.9%          12.7%       6.2%

Net income                          $     398,222  $     244,616       62.8%

Revenue for the quarter ended November 30, 2013 was $9.8 million, which represents an increase of $2.8 million, or 39.3%, over the comparative period in fiscal 2013. Approximately $912 thousand or 13.0% of the increase represents organic growth for the quarter resulting from additional revenue from existing clients, as well as the addition of new clients. The balance of the revenue growth, $1.8 million or 26.3%, was attributable to the acquisitions completed during the 2013 fiscal year.

The Company monitors EBITDA before corporate costs in order to assess the results of operations before consideration of the ongoing corporate investments required to position the Company for future growth. For the quarter ended November 30, 2013, EBITDA before corporate costs was $2.6 million, which represents an increase of $0.9 million, or 52.6%, over the comparative period in fiscal 2013. The Company also strengthened the EBITDA before corporate costs margin to 26.8% from 24.5% in the comparative period in fiscal 2013.

Adjusted EBITDA for the quarter ended November 30, 2013 was $1.85 million, representing an increase of 107.3%, or $957 thousand, as compared to the same period in fiscal 2013. Adjusted EBITDA margin increased to 18.9% from 12.7% in the same period of fiscal 2013. The growth in Adjusted EBITDA and margin improvements are a result of the operating leverage in the business, as the revenue associated with past investments in operations effectively increases operating earnings with limited additional incremental investment or expense of corporate costs.

For the quarter ended November 30, 2013, the Company reported net income of $398 thousand, representing an increase of $153 thousand as compared to the prior period. The increase in net income is due to growth in Adjusted EBITDA offset by incremental interest and other finance costs attributable to debt incurred in connection with acquisitions completed during the year and to various non-cash expenses related to the accounting entries for items such as amortization of intangible assets.

Summary Financial Position

The Company's financial position remains strong, and it is well-positioned to continue to execute on its growth strategy based on contributions from both organic and acquisition-based initiatives. In addition, the financial position of the Company will accommodate the ongoing operational investments required to ensure the Company is delivering upon its value proposition to its clients, and achieving operational excellence and enhanced profitability.

The Company had cash balances of $2.9 million as at November 30, 2013, an increase of $474 thousand as compared to August 31, 2013. In addition to its cash resources, the Company has a credit facility of $24.5 million with a senior lender, against which $14.0 million balance remained owing as of November 30, 2013. In addition to the credit facility with its senior lender, as of November 30, 2013, the Company has $4.7 million owing to vendors from previous acquisitions, of which $1.9 million is due in the next twelve months.

The complete Financial Statements and Management's Discussion and Analysis for the quarter ended November 30, 2013, along with additional information about the Company and all of its public filings are available at

Progress on Execution of Strategic Plan and Ongoing Momentum

The Company continues to execute on its strategic plan by building upon and growing operational capabilities. More specifically, it is investing in people, expanding on its value proposition, and providing responsive solutions to clients. Some of the Company's notable milestones from the first quarter of 2014 include:

i.  Enhanced the consulting team to support ongoing execution of the
    Company's strategic plan and ensure appropriate resources are available
    to meet the needs of new and existing clients. Specifically, the Company
    was successful in being able to attract top talent from within the group
    benefits, group retirement and HR consulting sectors, as well as
    adjacent industries.
ii. Launched the first ever People Corporation Academy bringing new
    consultants from across the country together for technical training and
    to obtain in-depth knowledge of the Company's service offerings and
    solutions so that these consultants can bring the best resources to each
    client engagement.
iii.Expanded the Company's group benefit and human resource consulting
    service offerings into the Saskatchewan marketplace.
iv. Rolled out a new HR Outsourcing product line in the Manitoba marketplace
    in order to take advantage of a growing demand for HR resources and
    support for small employers;
v.  Launched an enhanced stop-loss product offering for clients on the
    Company's self-insured benefits third party adminstration platform; and
vi. Launched myWellness product with a focus on mental health for the
    Company's student benefit clients.

About People Corporation

People Corporation is a national provider of group benefits, group retirement and human resource services. We have offices across Canada, each led by a team of experts and backed by the resources of a national company that is traded on the TSX-V. Our industry experts provide uniquely valuable insight while customizing our innovative suite of services to the specific needs of our clients. Whatever your sector, whatever your scale, putting our expertise and proven track record to work will make a difference to your people and your bottom line.

Further information is available at

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 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 and Adjusted EBITDA are not recognized measures under International Financial Reporting Standards ("IFRS"). Management believes that in addition to revenue, net income and cash flows, the supplemental measures of EBITDA and Adjusted EBITDA are useful as they provide investors with an indication of earnings from operations before debt management and non-recurring and other adjustments. Investors should be cautioned, however, that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating these measures may differ from other public issuers and, accordingly, may not be comparable to similar measures used by other issuers. For a detailed explanation of how the Company's non-IFRS measures are calculated, please refer to the Company's MD&A filing for the three months ended November 30, 2013, which can be accessed via the SEDAR Web site (

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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