TORONTO, ONTARIO--(Marketwire - Jan. 24, 2008) - Groupworks Financial Corp. ("Groupworks" or the "Company")(TSX VENTURE:GWC) announces its financial results for the first quarter ended November 30th, 2007. Revenue for the three months ended November 30th, 2007 was $1,258,300 up from $350,500 in the first quarter of fiscal 2007. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended November, 2007 was $25,000 versus ($164,000) for the same period last year. As a result of the improvement in revenue and expenses, the Company recorded a net loss of ($152,800) for the three months ended November 30th, 2007 compared to ($301,100) loss during the same period in fiscal 2007.
"Groupworks' has successfully integrated the operations of Gallivan. As a result, we more than tripled our revenues in the quarter and increased operating margin to 20.2%. This performance is consistent with our goal of acquiring operations which are accretive to the organization, 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 Rocco Liscio, Chief Financial Officer.
The Financial Statements and Management Discussion and Analysis for the period ended November 30th, 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.
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 Corp.
Business Development and Investor Relations
(905) 470-6588 ext. 211
(905) 470-6723 (FAX)