TORONTO, ONTARIO--(Marketwire - Jan. 29, 2009) - Groupworks Financial Corp. (TSX VENTURE:GWC) ("Groupworks" or the "Company") announces its financial results for the first quarter ended November 30th, 2008. Revenue for the three months ended November 30th, 2008 was $1,441,600 up from $1,258,300 in the first quarter of fiscal 2008. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended November, 2008 was $135,900 versus $25,300 for the same period last year. As a result of the improvement in revenue and expenses, the Company recorded a net income of $90,600 for the three months ended November 30th, 2008 compared to a $152,800 loss during the same period in fiscal 2008.
"Groupworks performed as expected in the first quarter of 2009 achieving organic growth of approximately 6.3% over the prior year and improving its operating margin to 27.7% compared to 20.2% in the prior year. This performance is consistent with our goal of operating accretive acquisitions and is supportive of Groupworks' mission of attracting and enhancing the value of quality group benefits advisory practices for our partners and their clients," said John Gallivan, President and Chief Executive Officer.
The Financial Statements and Management Discussion and Analysis for the period ended November 30th, 2008, along with additional information about the Company and all of its public filings are available on www.sedar.com.
Groupworks is a consolidator of independent benefits, HR and pension operations, consisting of a highly experienced and capable management team that has a demonstrated track record of success.
Non GAAP Financial Measures
EBITDA is not an earnings measure recognized under GAAP and does not have standardized meaning prescribed by GAAP. Therefore, they may not be comparable to similar measures presented by other entities. Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative to net income or loss determined in accordance with GAAP as indicators of the Company's performance, or to cash flow from operating, investing and financing activities as measures of liquidity and cash flows.
This news release contains "forward-looking information" within the meaning of applicable securities laws, such as information concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as "may", "will", "expect", "believe", or other words of similar effect may indicate forward-looking information. This information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in our publicly filed documents (which are available on SEDAR at www.sedar.com). This information is made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise. Additionally, we undertake 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Groupworks Financial Corp.
(905) 470-6588 X 201