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

WINNIPEG, Manitoba, July 15, 2019 (GLOBE NEWSWIRE) — People Corporation (the “Company”) (TSX Venture: PEO) today announced financial results for the quarter ended May 31, 2019.
Laurie Goldberg, Executive Chairman and Chief Executive Officer commented, “People Corporation has made solid strategic and financial progress in the first nine months of 2019. During the third quarter, a combination of execution on our acquisition strategy, integration initiatives and efforts to drive organic growth resulted in revenue growth of 27.6%, of which organic revenue growth was 9.8%. Aligned with Q1 and Q2, EBITDA grew faster than revenue during Q3, with adjusted EBITDA growing by 29.0% compared to the same period in fiscal 2018. For the remainder of the fiscal year and into 2020 we remain focused on the four key value-driving areas we have outlined in prior quarters, specifically: sales and service; products; integration; and strategic acquisitions. With demonstrated operating capabilities, a proven track record of organic growth and a deep acquisition pipeline, People Corporation is well-positioned to drive continued growth and shareholder returns, while leveraging its increasing scale to provide clients with a leading suite of solutions and unparalleled experience.”

Highlights of Financial Results for the quarter ended May 31, 2019

Financial Results from Operations

The Company’s financial results for the three and nine months ended May 31, 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.

  Three months ended
May 31
Nine months ended
May 31


(In 000’s)

  2019     2018   2019     2018
Revenue $ 42,427   $ 33,254 $ 119,302   $ 94,239
Adjusted EBITDA before REI $ 11,868   $ 9,161 $ 32,260   $ 24,748
Adjusted EBITDA $ 9,509   $ 7,374 $ 26,145   $ 19,797
Net Income (loss) $ (644 ) $ 1,484 $ (5,540 ) $ 2,558
Net Income (loss) per share (basic) $ (0.01 ) $ 0.03 $ (0.09 ) $ 0.05
Adjusted net earnings per share (basic) $ 0.04   $ 0.05 $ 0.07   $ 0.12

The Company realized revenue growth for the three months ended May 31, 2019 of $9.2 million (27.6%). Organic growth of $3.2 million (9.8%) was recognized primarily from gaining new clients, increasing product and service penetration with existing clients and natural inflationary factors. The Company recognized growth of $5.9 million (17.8%) resulting from acquired operations including Lane Quinn, Silverberg, BPI, and Life.

Adjusted EBITDA before retained economic interest (“REI”) for the three months ended May 31, 2019, was $11.9 million, an increase of $2.7 million (29.5%). Growth in Adjusted EBITDA before REI for the three month period was primarily driven by contribution from acquired operations and the increase in third 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 May 31, 2019, was $9.5 million, an increase of $2.1 million (29.0%) 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 $0.6 million (32.0%), reflecting their share of the increased EBITDA in the corresponding businesses.

The Company reported a Net income (loss) for the three months ended May 31, 2019 of ($0.6) million. Net Income decreased by $2.1 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; partly offset by Adjusted EBITDA increases related to acquired operations and organic growth.

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 acquisitions of Life Benefit Solutions Inc. and Benefit Partners Inc.
  • Amended and increased the bank credit facility to $125 million in committed credit availability (from $93 million), with an option to increase the facility by an additional $50 million, to a total of $175 million overall to fund future growth initiatives;
  • Appointed Sue Tardi to the position of Chief Human Resources Officer;
  • Hired senior leaders in Western Canada and Ontario and established regional office support to support the client base in these regions;
  • Hired several new professionals to support clients with expertise in product development, underwriting, sales and service, and group retirement and 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, BPI and Life Benefit Solutions Inc.;
  • Completed and launched the pilot for People Care, a new online Mental Health solution for clients;
  • Added partners to the Company’s market leading Preferred Provider Network, allowing our clients to access value added offerings and preferred pricing at some of Canada’s most recognized national retailers;
  • Added the “HR @ Your Service” product to our Sirius small group solution; and
  • Enhanced our small group offerings by expanding our carrier partnerships.

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 $25.9 million as at May 31, 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. As of May 31, 2019, the Company has drawn $59.6 million on the various components of it credit facility, leaving $38.2 million of unused credit capacity.

Subsequent to quarter end, on July 4, 2019, the Company announced that it had amended and increased its credit facility to $125 million in committed credit availability (from $93 million), with an option, subject to the satisfaction of certain terms and conditions, to increase the Facility by an additional $50 million, to a total of $175 million overall. In addition, the Facility’s term has been extended to June 1, 2022, the number of lenders in the syndicate has been increased, and improvements in other terms have been achieved, including lower borrowing costs and greater flexibility.

The complete Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 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 1,817 deferred stock units to directors in this regard.

Conference Call

People Corporation will host a conference call on Monday, July 15, 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: July 15, 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: 72044749
Playback #: 044749
Listen to webcast:

About People Corporation

People Corporation ( is a national provider of group benefits, group retirement and human resource services. 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. The Company’s industry experts provide uniquely valuable insight while customizing an innovative suite of services to the specific needs of its clients. Whatever your sector, whatever your scale, putting People Corporation’s 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 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 nine months ended May 31, 2019, which can be accessed via the SEDAR Web site (

Investor Relations Inquiries:

Jonathan Ross, CFA
Investor Relations – People Corporation
(416) 283-0178

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