WANTED Technologies Reports an Increase of 31% of its Recurring Revenue Base in Canadian dollars (15% in US dollars) for the Third Quarter of Fiscal 2015

Q3-2015 Highlights

• Revenues of $2,529,279, a decrease of 16% or $470,379 compared to revenues of $2,999,658 in the third quarter of fiscal 2014. Note that revenues from the third quarter of prior year included an amount of $345,862 from a reseller partner agreement that terminated in June 2014, as well as a significant non-recurring revenue of $703,414 derived from a single agreement. Excluding the revenues from this partner and from this non-recurring agreement in the prior year, revenue grew $578,897, or 30% over the prior year.
• Growth of 31% in the Company's recurring revenue base in Canadian dollars (15% in US dollar), from an annualized value of CAD$8.1 million as of March 31, 2014 to CAD$10.6 million as of March 31, 2015.
• Net income of $239,942 ($0,010 per share) compared to a net income of $777,491 ($0,032 per share) in the third quarter of fiscal 2014, a decrease of $537,549 as the Company continues to ramp up its resources and infrastructure to accelerate revenue growth.
• Despite an increased level of investments to accelerate growth, EBITDA for the third quarter remained positive at $410,504. This compares to an EBITDA of $1,275,793 in the third quarter of fiscal 2014, a negative variation of $865,289.
• Release in January 2015 of WANTED Analytics international with a complete candidate supply and jobs demand database and analytics solution for the UK, China, Singapore, and Australia.
• WANTED continues to adapt its products and invest in direct sales to accelerate the international deployment of its solution to expand its global market footprint for its big data analytics solutions in the Human Capital Management sector.

NEW YORK CITY and QUEBEC CITY, May 26, 2015 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), a leading provider of real-time market intelligence and analytics for staffing and workforce strategies, reported today revenues of $2,529,279 for the third quarter ending March 31, 2015, a 16% decrease over the same quarter of the prior year. Note that revenues from the third quarter of prior year included an amount of $345,862 from a reseller partner agreement that terminated in June 2014, as well as a significant non-recurring revenue of $703,414 derived from a single agreement.  Excluding the revenues from this partner and from this non-recurring agreement in the prior year, revenue grew $578,897, or 30% over prior year. For the nine-month period ended March 31, 2015, the Company's total revenues were $7,154,966 compared to $7,347,927 for the corresponding period in the previous fiscal year, a decrease of $192,961 or 3%. Excluding revenues of $921,286 from the terminated reseller and a non-recurring revenue of $976,989 from the first nine months of the prior year, revenue grew by $1,705,314, or 31% during the first three quarters of fiscal 2015 compared to the prior year.

The Company reported a net income of $239,942 ($0.010 per share) for the third quarter of fiscal 2015, compared to a net income of $777,491 ($0.032 per share) in the third quarter of fiscal 2014, a negative variation of $537,549. For the nine-month period ended March 31, 2015, net income of $198,244 ($0.008 per share) was reported compared to a net income of $2,251,613 ($0.093 per share) for the same period of fiscal 2014. Note that this decrease in net income for the nine-month period mostly results from the combination of three specific elements, the change in management, the issuance of 1,530,000 stock options during the first nine months of the year, and a non-recurring R&D tax credit recorded in the prior year, which together, represent approximately $1,450,000 of this negative variance.

"WANTED delivered another solid quarter as we continue to exploit an increasingly dynamic market for talent and broader adoption generally of analytics solutions for recruiting and workforce management. WANTED's recurring revenue book for the Corporate sector, the fastest growth segment, grew 53% over the past three quarters, with average revenue per customer up 18% over the same period, reflecting increased penetration of and within Fortune 1000 organizations and early traction upselling with international data," said Meredith Amdur, WANTED's President and CEO.

"We continued rolling out our international product line this past quarter, formally launching at the HR Technology convention in London in March and establishing a full-time commercial presence there to serve the UK. Our international product portfolio helps meet the market intelligence needs of our current multinational customers and enhances the overall value of our data assets as we extend our geographic reach," Amdur said.

As of March 31, 2015, contracts in hand, in Canadian dollars, had an approximate value of 10.6 million dollars in annualized recurring revenues, an increase of 2.5 million dollars or 31% over an annualized recurring revenue book of 8.1 million dollars as of March 31, 2014. On a US dollar basis, the contracts in hand increased 15%, from 7.3 million dollars as of March 31, 2014 to 8.4 million dollars as of March 31, 2015.

At the end of third quarter of fiscal 2015, 71% of the recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 66% at the end of the corresponding quarter of the previous year.

Operating costs for the third quarter of fiscal 2015 totalled $2,401,446, an increase of $567,598, or 31%, over the same quarter of prior year. For the first nine months of fiscal 2015, operating costs totalled $7,044,688 compared to $4,474,164 for the first nine months of the previous fiscal year, an increase of $2,570,524 or 57%. Note that, as mentioned earlier, approximately $1,450,000 of the negative variance during the nine-month period is associated with the change in management, the issuance of stock options during the during the first and second quarters of the current year, and the non-recurring R&D tax credit which reduced the prior year's second quarter expenses. The remaining portion of the increase in operating costs is mostly due to investments in research and development and marketing and selling as the Company continues to innovate in the market and expand its footprint, both in North America and internationally.

Despite an increased level of investment to accelerate growth, EBITDA remained positive at $410,504 for the third quarter of fiscal 2015, compared to an EBITDA of $1,275,793 in the third quarter of fiscal 2014, a negative variation of $865,289. For the first nine months of fiscal 2015, EBITDA totalled $661,871 compared to an EBITDA of $3,074,482 in the first nine months of the previous year, a decrease of $2,412,611. EBITDA represents the net income before net finance costs excluding gain or loss due to variation in foreign exchange, income taxes on net income, and amortization and impairment of property, plant and equipment and intangible assets. As International Financial Reporting Standards do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

Net income for the third quarter of fiscal 2015 was $239,942, or $0.010 per share. This compares to a net income of $777,491 in the third quarter of fiscal 2014 or $0.032 per share.

Financial position

As at March 31, 2015, WANTED had $7,301,072 in cash and monetary investments, including $4,077,067 in redeemable term deposits. This compares to $6,724,870 in cash and monetary investments as at June 30, 2014, an increase of $576,202. This increase of $576,202 in the Company's liquidity is mostly the result of operating activities which, despite an accelerated rhythm of investment, generated $929,342 in cash flows since June 30, 2014. The positive cash flows from operating activities were however partially offset by purchases of $452,743 in computer equipment and infrastructure required to support new features, improve overall response time and upgrade the overall development and production infrastructure to support growth.

As at March 31, 2015, total assets amounted to $12,966,111 compared with $11,955,516 as at June 30, 2014, an increase of $1,010,595.

Those interested will be able to access the information on the March 31, 2015 unaudited interim consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Tuesday, May 26, 2015.

About WANTED Technologies Corporation

WANTED Technologies helps organizations make intelligent hiring decisions. Combining real-time, talent sourcing activity with historical trends, the company's WANTED Analytics™ data science tool uses Big Data to align HR and recruiting professionals with global job market realities. WANTED transforms corporate HR into a strategic tool by providing detailed competitive information about employment trends, economic conditions, talent supply and demand, and other pertinent job market statistics. Using data-driven business intelligence, recruiters can develop comprehensive workforce strategies and quickly find top candidates for key positions. Equipped with insights based on exhaustive hiring data, employers make smarter investments in talented personnel that contribute to the long-term success of the enterprise.

WANTED Technologies (TSX-V:WAN) was founded in 1999 with offices in Quebec City, Canada and New York City. The company currently maintains a database of more than one billion unique job listings spanning more than 10 years and 11,000 occupational categories.

WANTED Analytics is a cloud-based talent recruitment tool that combines real-time job market information with historical data from more than one billion records spanning ten years, 25,000 sources, 11,000 occupational categories, and serves 22 countries. This global data source enables recruiting professionals to base critical hiring decisions on job market realities, eliminating hunches and guesswork. Professionals in the staffing, HR, RPO, media, and government sectors use WANTED Analytics to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE WANTED Technologies Corp.

Related Links

http://www.wantedtech.com