TORONTO, ONTARIO--(Marketwire - March 31, 2008) - Groupworks Financial Corp.("Groupworks" or the "Company") (TSX VENTURE:GWC) announces its financial results for the second quarter and six months ended February 29, 2008. Revenues were $1,902,000 and $3,160,300 respectively up from $903,700 and $1,254,100 in the prior year namely due to an acquisition in the 4th Quarter of 2007. Operating margin for the quarter was consistent with the prior year but improved to 35% from 25% for the same six month period a year ago. EBITDA improved to $580,000 in the second quarter, up from $275,000 last year and for the six months ended, improved to $605,000 from and EBITDA loss of $(111,000) for the same period. Net income increased to $214,900, doubling last year's second quarter net income of $107,000. On a year to date basis the Company continues to show improvement with $62,000 of net income versus a loss of $193,800 reported for the same six months in fiscal 2007.
"Groupworks revenue growth demonstrates the successful integration of our acquisitions. As a result, we more than doubled our revenues in the quarter and increased operating margin. The Company experienced organic revenue growth of approximately 7% year to date and is on target for an annualized expectation of 5%. This performance is consistent with the Company's strategy of aggregating small and medium sized group benefit and pension advisory service businesses which enhance value to our shareholders, clients, and our partners" said John Gallivan, President.
The Financial Statements and Management Discussion and Analysis for the period ended February 29th, 2008, along with additional information about the Corporation, including its prospectus dated April 27, 2007 and all public filings are available on www.sedar.com.
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, except where required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Groupworks Financial Corp.
Christopher R. MacIntyre
(905) 470-6723 (FAX)