TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) - Groupworks Financial Corp. ("Groupworks" or the "Company") (TSX VENTURE:GWC) announces its financial results for the fourth quarter and year ended August 31, 2007. Revenue for the three and twelve months ended August 31, 2007 was $1,082,880, and $3,848,206 respectively. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended August 31, 2007 was ($79,436) while EBITDA for the twelve months ended August 31, 2007 was $376,531 or 9.8%. The Company recorded a net loss of ($386,747) for the three months ended August 31, 2007 and a loss of ($414,214) for the twelve months ended August 31, 2007.
"We are pleased to report that Groupworks' operating margins proved strong at 30% for the year. This performance is consistent with our goal of acquiring operations which have margins greater than 25%, and is supportive of Groupworks' mission of consolidating the independent benefits and pension marketplace in Canada", said Derrick March, CEO.
Mr. March further added, "Groupworks achieved critical business goals during fiscal 2007 by closing three acquisitions throughout the period and completing its Initial Public Offering (TSX VENTURE:GWC). Our accomplishments to date position us well for significant growth and communicating our value proposition to potential partners, prospective investors and our clients."
The Financial Statements and Management Discussion and Analysis for the period ended August 31, 2007, along with additional information about the Corporation, including its prospectus dated April 27, 2007 and all public filings are available on www.sedar.com.
For fulsome details regarding Groupworks Fiscal 2007, please join us at the Annual Special Meeting. The Annual Special Meeting will be held at 2:00 PM on January 4th, 2007 at The National Club, 330 Bay Street, Toronto, Ontario.
Groupworks is a consolidator of independent benefits 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, it 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). Those risks and uncertainties include: our ability to maintain profitability and manage growth; strong competition from other advisors and changes in the current legislation could result in significant competition from the banking industry; failure of information systems and technology; dependence on key clients; seasonality of revenues and the resulting possible impairment on working capital; reliance on key professionals; additional financing may be required and may not be available under terms favourable to us; there can be no assurance that any suitable future acquisition will be available to us or that, if available, the terms of the acquisition will be favourable to us; and a change in general economic conditions. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking information made by us or on our behalf. Given these risks and uncertainties, investors should not place undue reliance on forward looking information as a prediction of actual results. All forward-looking information in this news release is qualified by these cautionary statements. 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 Corporation
(905) 470-6588, ext. 211