WANTED Technologies Corporation ("WANTED" or the "Company") (TSX Venture: WAN - News), a leading supplier of real-time sales and business intelligence solutions for the recruitment and media classified industries, reported its results today for the year ended June 30, 2006. All amounts are in Canadian dollars, unless otherwise indicated.
Summary of 2006 financial results
Sales for the year ended June 30, 2006 were $1,909,295, up 30% from $1,467,413 the previous year. The increase in sales was due to the recruitment of new customers such as Gannett, the largest newspaper group in the U.S. It should be noted that WANTED derives its revenues from renewable annual contracts that generate recurring revenues for the Company. At June 30, 2006, contracts in hand represented slightly more than $2.2 million in annual revenues, 47% more than the $1.5 million represented by contracts in hand on June 30, 2005. The concept of recurring annual revenues presumes the renewal of all the customer contracts in hand at the date of the calculation, as most of WANTED's customer contracts cover a 12-month period.
2006 2005
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$ $
Sales 1,909,295 1,467,413
Expenses
Research and development expenses net of
tax credits 506,395 274,573
Marketing and selling expenses 769,693 476,881
Administrative expenses 756,692 480,230
Financial expenses, net amount 17,609 97,727
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2,050,389 1,329,411
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Earnings (loss) before other items (141,094) 138,002
Other items:
Translation loss (43,561) (29,955)
Stock-based compensation (345,935) -
Dividends on Class "C" shares (141,251) (606,097)
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Net loss (671,841) (498,050)
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Basic and diluted net loss per share (0.037) (0.050)
Weighted number of shares outstanding 18,105,927 10,000,000
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"We are delighted with the accelerated growth in our sales in a market as sophisticated as the U.S.," said David Tanguay, President and Chief Executive Officer of WANTED. "This growth is the fruit of our ongoing efforts to develop the media market in the United States, and reflects, with every quarter, the increase in our share of this market."
The Company's operating costs for fiscal 2006 were $2,050,389, up 54% from $1,329,411 in fiscal 2005. This increase is directly related to the strengthening of operating, marketing and administrative structures and resources to enable WANTED to sustain its sales growth in the upcoming quarters.
The net loss for the year ended June 30, 2006 amounted to $671,841 ($0.037 per share) compared to a net loss of $498,050 ($0.50 per share) for fiscal 2005. This $173,791 increase in the net loss was partly attributable to an increase of $279,096 in the loss before other items, which transformed $138,002 in earnings before other items in 2005 to a loss before other items of $141,094 for fiscal 2006. Non-cash items such as stock-based compensation and dividends on Class "C" shares contributed $487,186 to the net loss for fiscal 2006, an improvement of $118,911 over the $606,097 contributed in fiscal 2005.
Summary of financial results for the fourth quarter of 2006
In the fourth quarter of 2006, WANTED achieved sales of $597,662, 49% more than fourth quarter sales of $401,545 for 2005. It should also be noted that revenues for the fourth quarter of 2006 were 27% higher than third quarter revenues of $469,813.
The net loss for the fourth quarter of 2006 declined to $51,802 ($0.003 per share) from a net loss of $203,985 ($0.020 per share) for the same quarter in 2005.
Financial Position
At June 30, 2006, WANTED had working capital of $1,879,048 compared to a working capital deficit of $4,905,852 at June 30, 2005. Cash and short-term investments stood at $1,804,271 at June 30, 2006 compared to $225,166 at June 30, 2005. Total assets were $2,580,209 at June 30, 2006, up $1,528,870 from $1,051,339 at June 30, 2005. The improvement in the Company's financial position was essentially due to the completion of a qualifying transaction and public offering in the first quarter of 2006.
Those interested will be able to access the information in the 2006 audited 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, October 17, 2006.
About WANTED Technologies
WANTED Technologies is a leading supplier of real-time sales and business intelligence solutions for the staffing and recruitment, real estate, and media classified advertising industries. Using its proprietary data mining, lead generation and CRM (Customer Relationship Management) integrated technologies, WANTED aggregates data from thousands of online job boards, real estate, newspapers and corporate Web sites in real time.
Currently, WANTED's data is used to optimize sales and for the implementation of marketing strategies within classified ads departments of major media organizations as well as by staffing firms, advertising agencies and by human resources specialists.
WANTED is also the exclusive data provider for The Conference Board's Help-Wanted Online Data Series(TM) a monthly economic indicator of job availability in the United States.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Any statement that appears prospective shall
not be interpreted as such.
For further information: Mr. David Tanguay, President and CEO, (418) 523-6663, ext. 222; Mr. Philippe Frenière, CA, Vice President Finance & CFO, 1-800-530-0818, ext. 232; Mr. Jean Walter, Vice President, (514) 731-0000, ext. 223, jean@maisonbrison.com; Source: WANTED Technologies Corp.; MaisonBrison/BarnesMcInerney; Capital Market Communications Group