People Corporation Announces Financial Results for the First Quarter of Fiscal 2019

Strong organic growth and continued positive impact from integration of acquisitions

WINNIPEG, Manitoba. January 28, 2019:  People Corporation (the “Company”) (TSX Venture: PEO) today announced financial results for the quarter ended November 30, 2018.

“People Corporation continued to drive shareholder value through scale and further integration of its platform during the first quarter of fiscal 2019,” commented Laurie Goldberg, Executive Chairman and Chief Executive Officer. “Total revenue growth was 27.6%, of which organic revenue growth was 7.6%. Adjusted EBITDA grew by 37.7% as the Company realized contributions from the four acquisitions made in fiscal 2018 and effectively leveraged revenue growth into improved profitability. While People Corporation is a leading integrated TPA and group benefits consulting firm in Canada, over the next five years, we will continue to broaden our product and service offering, as well as undertake initiatives to bolster sales and service, while integrating our acquired platforms.”

Mr. Goldberg continued, “With demonstrated operating capabilities, a proven track record of above-average organic growth and a deep acquisition pipeline, People Corporation is strongly positioned to drive growth, and leverage this scale to provide clients with a leading suite of solutions, while also driving shareholder returns through continued expansion and integration.”

Highlights of Financial Results for the quarter ended November 30, 2018 

Financial Results from Operations

The Company’s financial results for the three months ended November 30, 2018 fully reflect the effect of last year’s acquisitions of Assurances Dalbec (“Dalbec”), Rockwater Benefits Company (“Rockwater”), Lane Quinn Benefit Consultants Ltd. (“Lane Quinn”) and Silverberg & Associates Inc. (“Silverberg”). The Company’s acquisition of Benefit Partners Inc. (“BPI”), which closed November 27, 2018, was only partially reflected in results for the three months ended November 30, 2018.

  Three months ended

November 30


(In 000’s)

2018 2017
Revenue $36,341.9 $28,470.1
Adjusted EBITDA before REI $9,055.8 $6,822.1
Adjusted EBITDA $7,426.2 $5,393.8
Net income (loss) $(1,522.0) $463.7
Adjusted net earnings per share (basic) $0.018 $0.028

For the three months ended November 30, 2018, the Company delivered revenue growth of $7.9 million (27.6%). Organic growth of $2.2 million (7.6%) was recognized primarily from gaining new clients, increasing product and service penetration with existing clients and natural inflationary factors.  The Company recognized growth of $5.7 million (20.0%) resulting from acquired operations including Dalbec, Rockwater, Lane Quinn, Silverberg and BPI. This was the first full quarter of operating performance from Silverberg.

Adjusted EBITDA before retained economic interest (“REI”) for the three months ended November 30, 2018, was $9.1 million, an increase of $2.2 million (32.7%).  Growth in Adjusted EBITDA before REI for the three-month period was attributable to acquired operations and organic revenue growth partially offset by increased compensation expenses tied directly to the higher revenue and expanded leadership to accommodate integration and future growth.

Adjusted EBITDA for the three months ended November 30, 2018, was $7.4 million, an increase of $2.0 million (37.7%) primarily due to the factors affecting Adjusted EBITDA before REI, offset by an increase in the amount due to the holders of the REI of $0.2 million (14.1%), reflecting their share of the increased EBITDA in the corresponding businesses.

For the three months ended November 30, 2018, the Company reported a net income (loss) of ($1.5) million, a decrease of $2.0 million, resulting from higher accretion of the non-controlling interest put options, higher acquisition, integration and reorganization costs,  higher depreciation and amortization, which is partially offset by increased revenue and adjusted EBITDA related to acquired operations and organic growth. Adjusted EPS, which excludes the impact of acquisition, integrations and reorganization costs, as well as the revaluation of non-controlling interest put options, decreased to $0.013 from $0.026 in the comparable period due to the factors detailed above.

Strategic and Operational Highlights

The Company continues to make significant progress on executing its strategic plan, while at the same time making investments to position the Company for ongoing future growth.  Some notable milestones include:

  • Completed the acquisition of Benefit Partners Inc., a group benefits, group retirement and insurance advisory practice based in Ontario;
  • Added partners to the Company’s market leading Preferred Provider Network, allowing our clients access to value added offerings and preferred pricing at some of Canada’s most recognized national retailers;
  • Launched our “HR @ Your Service” product platform to our small group clients;
  • Continued to gain market share in the enterprise market;
  • Further invested in Quebec by integrating multiple operations in Laval;
  • Continued to attract talent, including expansion of product development, underwriting, sales and service, group retirement, corporate development and our digital technology teams.

Summary Financial Position

The Company is well-funded to execute on its growth strategy, with a strong financial position and access to capital.  The Company had cash balances of $16.5 million as at November 30, 2018.  In addition to its cash resources, the Company maintains a credit facility with its senior lenders that totals $97.8 million of credit capacity, including an Acquisition Revolver of $63.8 million.  As of November 30, 2018, the Company has drawn $35.8 million on the various components of it credit facility, leaving $62.0 million of unused credit capacity of which $57.0 million relates to capacity on the Acquisition Revolver facility.

The complete Financial Statements and Management’s Discussion and Analysis for the twelve months ended November 30, 2018, along with additional information about the Company and all of its public filings are available at

Grant of Long-term Equity Incentive Awards

The Company has granted long-term equity incentive awards to its independent directors and to the Company’s executive and senior management team. These incentive awards were granted under the Company’s Security Based Compensation Plan (the “Plan”), established to reward directors and senior officers and employees, based on individual and corporate performance, to align their interests with that of the Company and to provide long-term incentives.

In particular, the Company granted:

  • 20,822 deferred stock units to its independent directors, vesting immediately and otherwise subject to the terms of the Plan; and
  • 139,834 restricted stock units, issued subject to performance conditions, to its executive and certain of its senior management, vesting after three years and otherwise subject to the terms of the Plan.

Investor Relations Arrangement

On September 28, 2018, the Company retained LodeRock Advisors Inc. (“LodeRock”), a Toronto-based capital markets communications firm, to advise the Company on its strategic investor relations and capital markets communications programs. Neither LodeRock nor its principals have any direct or indirect interest in People Corporation securities. Under the terms of the agreement with LodeRock, the Company will pay $10,000 per month (plus applicable sales taxes), for ongoing investor relations services. LodeRock is also reimbursed for out of pocket expenses related to providing its services. The term of the agreement continues until the provision of its services have been completed unless extended upon mutual agreement by the parties in writing. The agreement may be terminated by either party upon providing forty-five days prior written notice.


Conference Call 

People Corporation will host a conference call on Monday, January 28th, 2019, at 8:30 a.m. ET to discuss its first quarter financial results and provide investors with key business highlights.  The call will be chaired by Laurie Goldberg, Executive Chairman & CEO and Dennis Stewner, CFO & COO.

Date: January 28th, 2019 | Time: 8:30am ET
Participant Dial-in: 416-764-8688 or 1-888-390-0546
Replay Dial-in: 416-764-8677 or 1-888-390-0541 (Available for 2 weeks)
Conference ID: 12876566
Playback #: 876566
Listen to webcast:


About People Corporation

People is a leading independent national provider of group benefits, group retirement and human resource services with over 800 employees servicing over 8,000 clients of all sizes from start-up to enterprise. The Company has 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. Administering approximately $2 billion in annual premiums, and $10 billion in pension assets, 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.

For more information, please visit

Forward-Looking Information

This news release contains “forward-looking statements” within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.  Use of words such as “may”, “will”, “expect”, “believe”, “intends”, “likely”, or other words of similar effect may indicate a “forward-looking” statement.  These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Company’s publicly filed documents (available on SEDAR at  Those risks and uncertainties include the ability to maintain profitability and manage organic or acquisition growth, reliance on information systems and technology, reputation risk, dependence on key clients, reliance on key professionals and general economic conditions.  Many of these risks and uncertainties can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on its behalf.  Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.  All forward-looking statements in this news release are qualified by these cautionary statements.  These statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.  Additionally, the Company undertakes 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

The Company reports non-IFRS financial measures, including Standardized EBITDA, REI, Adjusted EBITDA before REI, Adjusted EBITDA and Adjusted Net Earnings as key measures used by management to evaluate performance of the business, to compensate employees and to facilitate a comparison of quarterly and annual results of ongoing operations.  Adjusted EBITDA is also a concept utilized in measuring compliance with debt covenants.  The Adjusted EBITDA measure is commonly reported and widely used by investors and lending institutions as an indicator of a company’s operating performance and ability to incur and service debt, and as a valuation metric.  While used to assist in evaluating the operating performance and debt servicing ability of the Company, readers are cautioned that Adjusted EBITDA as reported by the Company may not be comparable in all instances to Adjusted EBITDA as reported by other companies.  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, 2018, which can be accessed via the SEDAR Web site (


Investor Relations Inquiries:

Contact – Dennis Stewner, CPA, CA
CFO and COO – People Corporation
(204) 940-3988

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.