HIRE Technologies Inc (CVE:HIRE) posted first-quarter results on Monday that saw “highly resilient” revenue as it continued to provide companies with IT, finance and back-office staff during the coronavirus (COVID-19) pandemic.
For its first quarter ended March 31, 2020, the Toronto-based staffing company posted revenue of $2,902,786, which was only slightly lower than $3,011,887 clocked up for the same period a year earlier.
Significantly, HIRE posted adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization of $50,019 for the first quarter, compared to a loss of $330,926 in the same perion in 2019.
The company also noted that gross profit as a percentage of revenue for the first quarter was 23.8%, up from 22.1% for the same quarter in 2019.
“HIRE's revenue and profitability is proving to be highly resilient throughout the COVID-19 pandemic with only a 3.6% year-over-year (YoY) decrease in revenue for the quarter ended March 31, 2020, offset by a 3.8% YoY increase in gross profit compared to the quarter ended March 31, 2019,” said the company in a statement.
Meanwhile, HIRE Technologies CEO Simon Dealy noted that despite the pandemic, the company was “truly fortunate” that its operations were uninterrupted and that it continues “to provide a high level of service in support of our clients”.
“We are leveraging our expertise in flexible staffing solutions to keep the businesses of our clients operating during these challenging times," Dealy added.
“COVID-19 did not have a material financial impact on HIRE for the quarter ended March 31, 2020. This demonstrated the resiliency of HIRE's recurring temporary placement revenues. Given the measures taken by all levels of government to slow the spread of COVID-19 and the consequent impact on the economy, the company continues to be vigilant and focused on opportunities where it can help clients,” he added.
The HIRE boss pointed out that organizations rely on the company to provide “qualified IT, finance and back-office staff."
"With a focus on technology-driven solutions, HIRE is well-positioned to help re-engage impacted workers as the economy transitions out of the lock-down phase of the pandemic," Dealy added.
The company said the net loss for the period was $744,965 or 0.02 per share and adjusted net earnings were $12,566, compared to an adjusted net loss of $432,156, or 0.01 per share in the first quarter of 2019.
For its first quarter, HIRE’s cash flow from operations was a net cash outflow of $1,599,453, compared to $1,060,850 in same period a year earlier.
“A comprehensive reorganization was initiated by management at the end of the quarter, which will result in significant expense reductions going forward,” said the company.
In April, the Toronto-based staffing provider, changed its name to Hire Technologies from Bay Talent Group Inc.
HIRE is focused on the acquisition of information technology, staffing, and human resources consulting firms. Its operating subsidiaries Provision IT Resources Ltd and PTC Accounting and Finance Inc are staffing firms that offer a range of professional recruitment services for accounting, finance, information technology, office administration and human resources.
Contact the author Uttara Choudhury at [email protected]
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