People Corporation Announces Financial Results for the Third Quarter of Fiscal 2020

WINNIPEG, Manitoba. July 20, 2020:  People Corporation (the “Company”) (TSX Venture: PEO) today announced financial results for the quarter ended May 31, 2020.

Laurie Goldberg, Executive Chairman and Chief Executive Officer commented, “People Corporation continued to make solid strategic and financial progress in the third quarter of 2020 despite the onset of the COVID-19 pandemic. The successful integration of acquired operations and the steady execution of our organic strategy generated revenue growth of 25.5%, and growth in Adjusted EBITDA of 69.4% compared to the same period last year. Our team’s focused efforts to deliver new and innovative products and services to our clients, as well as our emphasis on ensuring our clients had ready access to support across all of our solution sets, together with a progressive business development approach, drove organic revenue growth of 8.2% in Q3, after adjusting for the early timing of certain revenues in Q2. Furthermore, the nature of our industry diversification combined with growing market positions in certain sectors, has facilitated the delivery of balanced growth. People Corporation remains well-positioned in the current environment, with a suite of customized products and solutions combined with expert advice designed to meet the growing need for mass-customization and cost containment. As we continue to execute our organic growth and acquisition strategies, we are also beginning to focus on further integrating and leveraging our digital capabilities and national network across our product and service suites to ensure that People Corporation continues to lead the industry in client advice, choice, and experience.” 

Highlights of Financial Results for the Quarter Ended May 31, 2020

Financial Results from Operations

The Company’s financial results for the three months ended May 31, 2020, fully reflect the effect of last year’s acquisitions of Benefit Partners Inc. (“BPI”), Life Benefit Solutions Inc. (“Life”), and ACL Student Benefits Ltd. (“ACL”). In addition, the partial effect of the current fiscal year acquisitions of Collage Technologies Inc. (“Collage”), Apri Group of Companies (“Apri”), Robin Veilleux Assurances et Rentes Collectives Inc. (“RVARC”) and Integrated Benefit Consultants Ltd. (“IBC”) are reflected in the current period.


The Company realized revenue growth for the three months ended May 31, 2020, of $10.8 million (25.5%). Organic growth of $3.5 million (8.2%) is comprised of $1,869 (4.4%) which was recognized during the quarter and $1.6 million (3.8%) of certain revenues that were recognized in the second quarter of fiscal 2020 that were not included in the calculation of organic growth for the second quarter. The growth was primarily from launching new services, gaining new clients, increasing product and service penetration with existing clients and natural inflationary factors.

Adjusted EBITDA for the three months ended May 31, 2020, was $16.1 million, representing an increase of $6.6 million (69.4%), as compared to the same period in fiscal 2019. Adjusting for the early timing of certain revenues recognized in the second quarter totaling $1.6 million, the favourable impact of $1.0 million from adopting IFRS 16, and $2.0 million of government assistance provided through the Canadian Emergency Wage Subsidy (“CEWS”), Adjusted EBITDA for the three months was $14.7 million, representing an increase of $5.2 million (54.7%), as compared to the same period in fiscal 2019. Growth in Adjusted EBITDA for the third quarter was primarily driven by contribution from acquired operations and organic revenue growth in the third quarter. The Company also had incremental general and administrative expense savings due to reduced discretionary spending in light of the current economic environment, including travel and business development, which the Company expects will increase in future quarters as travel restrictions start to ease and business development activities resume. The factors increasing Adjusted EBITDA are partially offset by higher variable compensation expenses tied directly to the higher revenue and an expanded staff complement to accommodate growth in operations and the launch of our new disability management service. In addition, the Company incurred higher administration fees related to the new services launched earlier in the year.

The Company reported Net Income for the three months ended May 31, 2020 of $2.8 million. Net income improved by $3.5 million as compared to the prior fiscal year due to increase in Adjusted EBITDA of $6.6 million, as described above partially offset by higher depreciation and amortization expense and increased income taxes.

Strategic and Operational Highlights

In the first three quarters of the fiscal year, the Company continued 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 following strategic acquisitions:

  • RVARC, a leading provider of group benefits consulting services based in Quebec, significantly increasing the Company’s presence in one of Canada’s largest provinces;
  • Collage, a leading cloud-based digital human resource employee benefits administration and payroll solution provider based in Ontario.  The acquisition provides an entry into adjacent markets, expands the Company’s administrative and technological capabilities and also expands the breadth and depth of the Company’s product and service offering and the plan member experience;
  • IBC, a provider of group benefits consulting services for companies throughout Alberta, increasing  the Company’s presence in Western Canada; and
  • Apri, one of the largest independent group benefits Managing General Agents (“MGA”) and group benefits consulting firms in Canada with an established presence in multiple provinces and a strong reputation for innovative, client-focused solutions.  Apri’s JungoHR platform offers an HRIS focused on mid-sized and enterprise-level businesses, expanding the Company’s existing human resource solutions. Paired with the Collage Benefits HQ platform, the Company is able to provide a comprehensive solution and value proposition to its third party advisor network as one of the largest group benefits MGAs in Canada.

Continued to invest in talent to support a growing client base and enhance our strategic capabilities:

  • Appointed Brevan Canning President of People Corporation, effective May 21, 2020. Brevan has been with People Corporation since its inception in 2007 and has held senior leadership roles in its Third Party Administration, Group Benefits Consulting and Corporate and Shared Services business units. Most recently, he was Executive Vice President and Group Head, Group Solutions.
  • Re-organized senior leadership responsibilities to drive go to market effectiveness; and
  • Hired talent with expertise in three distinct market segments:  group retirement, disability, and enterprise clients.

Continued to execute integration initiatives to leverage the benefits of the platform:

  • Expanded and enhanced the Client Excellence team to better support consultants and our clients;
  • Continued to refine the recently launched MGA solution providing back office support to third party consultants;
  • Continued the operational integration of our student benefits business to strengthen the Company’s position as a leader in this market; and
  • Initiated the consolidation and enhancement of the current client and back office platforms.

Launched new solutions, including:

  • A suite of virtual health solutions including: a 24/7 online healthcare on the go solution; an on-demand virtual care application providing members and their families with direct access to medical consultants; an online prescription delivery offering; a health care navigation solution providing a single point of contact throughout diagnosis, treatment and rehabilitation; and a second opinion medical program to assist members and their families with making informed decisions regarding their health;
  • A disability management and administration system solution; and
  • People Connect, a new online Mental Health solution for clients.

Completed a private placement common share offering issuing 3,500,000 shares for total net proceeds of approximately $23,977 on April 16, 2020. During fiscal year 2020, the Company has raised total net proceeds of $85,048 and issued 10,483,500 common shares through two private placement common share offerings.

Summary Financial Position

The Company is well-funded to execute on its long-term growth strategy, with a strong financial position and access to capital.  The Company had cash balances of $35.3 million as at May 31, 2020.  In addition to its cash resources, the Company maintains a credit facility with its senior lenders that totals $125.0 million of credit capacity, with an option, subject to the satisfaction of certain terms and conditions, to increase the credit facility by an additional $50.0 million, to a total of $175.0 million overall.  As of May 31, 2020, the Company had drawn $78.0 million against its credit facility.

The complete Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 2020, along with additional information about the Company and all of its public filings are available at

Grant of Deferred Stock Units

The Company permits its 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 2,097 deferred stock units to directors in this regard. 

Conference Call

People Corporation will host a conference call on Monday, July 20, 2020, at 8:30 a.m. ET to discuss its 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 20, 2020 | 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 – Expiring August 3, 2020)
Conference ID: 39038954
Playback #:  038954
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 three and nine months ended May 31, 2020, 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