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

Strong organic growth and continued positive impact from integration of acquisitions

WINNIPEG, Manitoba. April 22, 2019: People Corporation (the “Company”) (TSX Venture: PEO) today announced financial results for the quarter ended February 28, 2019.

“Our financial results for the second quarter of 2019 continue to demonstrate benefits from investments in the Company’s sales and service functions, product offering, focused integration efforts and accretive acquisitions,” commented Laurie Goldberg, Executive Chairman and Chief Executive Officer. “Revenue growth in the quarter was 24.7%, of which organic revenue growth was 9.0%. Adjusted EBITDA grew by 31.0% compared to the same period in fiscal 2018, driven primarily by the operating leverage from acquired operations.”

Mr. Goldberg continued, “We are taking a long-term approach to building this business and plan to make continued investments to build scale and further integrate our operations. We expect that these efforts will progressively translate into enhanced service levels and access to additional customized product solutions for clients, fortifying our competitive advantage and enabling us to gain market share. Acquisitions remain a value-added enhancement to our core organic growth strategy and we continue to add potential partners to the pipeline. The recent acquisition of Life Benefit Solutions is a perfect example of an opportunity that supports our core growth objectives and enhances our long-term competitive position. This acquisition gives People Corporation immediate access to the First Nation market segment, while expanding Life Benefits Solutions’ offering to new and existing clients through access to a broader product and service platform. We are very confident that we can continue executing our strategy both organically and through the addition of like-minded partners to our growing organization.”

Highlights of Financial Results for the quarter ended February 28, 2019

Financial Results from Operations

The Company’s financial results for the three months ended February 28, 2019 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”). In addition, the effect of the current year acquisitions of Benefit Partners Inc. (“BPI”) and Life Benefit Solutions Inc. (“Life”) are reflected in the current period.

(In 000’s) Three months ended February 28 Six months ended February 28
2019 2018 2019 2018
Revenue $40,533.3 $32,514.5 $76,875.2 $60,984.6
Adjusted EBITDA before REI $11,336.9 $8,765.3 $20,392.7 $15,587.4
Adjusted EBITDA $9,210.0 $7,029.4 $16,636.2 $12,425.1
Net Income (loss)Adjusted net earnings per share (basic) ($3,373.8)$0.020 $610.1$0.035 ($4,895.8)$0.038 $1,073.8$0.064

The Company realized revenue growth for the three months ended February 28, 2019 of $8.0 million (24.7%). Organic growth of $2.9 million (9.0%) was recognized primarily from gaining new clients, increasing product and service penetration with existing clients and natural inflationary factors. The Company recognized growth of $5.1 million (15.7%) resulting from acquired operations including Rockwater, Lane Quinn, Silverberg, BPI, and Life. This was the first full quarter of operating performance from BPI.

Adjusted EBITDA before retained economic interest (“REI”) for the three months ended February 28, 2019, was $11.3 million, an increase of $2.6 million (29.2%). Growth in Adjusted EBITDA for the three month period was primarily driven by contribution from acquired operations and the increase in second quarter revenue, partially offset by increases in variable compensation expenses tied directly to the higher revenue, expanded leadership to accommodate integration and current growth, and the continued investment in sales and support staff, and related support costs incurred to drive organic growth.

Adjusted EBITDA for the three months ended February 28, 2019, was $9.2 million, an increase of $2.2 million (31.0%) 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 $0.4 million (22.5%), reflecting their share of the increased EBITDA in the corresponding businesses.

The Company reported a Net income (loss) for the three months ended February 28, 2019 of ($3.4) million, a decrease of $4.0 million, resulting from higher accretion of the non-controlling interest put options, an increase in depreciation and amortization expense primarily from acquired intangible assets, higher share-based compensation, and an increase in acquisition, integration and reorganization expenses.

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 Life Benefits , a leading group benefits and retirement solutions consulting firm primarily focused on the First Nation market segment based in Winnipeg;
  • Hired senior leadership in Western Canada and established a regional office with support resources to support the significant client base in Alberta;
  • Hired a new senior leader in Ontario to oversee our group benefit consulting businesses in that region;
  • Hired two senior corporate development resources to deepen and expand our ability to execute acquisitions;
  • Completed the build-out of the new corporate office in Laval, Quebec and integrated the Quebec based businesses;
  • Initiated the first phase of integration related to shared support functions for the recently acquired firms including Lane Quinn, Silverberg and BPI;
  • Added the “HR @ Your Service” product to our Sirius small group solution;
  • Enhanced our small group offerings by expanding our carrier

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 $12.8 million as at February 28, 2019. 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 February 28, 2019, the Company has drawn $52.1 million on the various components of it credit facility, leaving $45.7 million of unused credit capacity of which $40.7 million relates to capacity on the Acquisition Revolver facility.

The complete Financial Statements and Management’s Discussion and Analysis for the three and six months ended February 28, 2019, along with additional information about the Company and all of its public filings are available at

Grant of Deferred Stock Units

The Company permits it’s directors to elect to take their director’s fees in the form of deferred stock units issued under the Company’s Security Based Compensation Plan, in lieu of cash payments. This quarter, the Company has granted 2,426 deferred stock units to directors in this regard.

Conference Call

People Corporation will host a conference call on Monday, April 22, 2019, at 8:30 a.m. ET to discuss its second 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: April 22, 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: 77525789
Playback #: 525789
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


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