Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

Fintech

HIRE Technologies Reports Q3 2020 Results

Published

on

Toronto, Ontario–(Newsfile Corp. – November 30, 2020) – HIRE Technologies Inc. (TSXV: HIRE) (“HIRE” or the “Company”), a company focused on modernizing and digitizing the fragmented staffing industry, is pleased to announce financial results for the quarter ended September 30, 2020. This earnings release should be read in conjunction with HIRE’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis, which have been posted on SEDAR at www.sedar.com. All financial figures are in Canadian dollars unless otherwise noted.

“Our clients continue to trust HIRE for their staffing and placement needs in light of ongoing uncertainty surrounding COVID-19, with demand for flexible work remaining steady. While headlining this quarter was the acquisition of The Headhunters, our operational improvements allowed us to break even on an adjusted EBITDA basis. This was a record quarter in the short history of our company and we are now better positioned than ever to meet the changing demands of our clients and partners,” commented Simon Dealy, Chief Executive Officer of HIRE.

Q3 2020 Highlights

  • Generated adjusted EBITDA(1) for the three months ended September 30, 2020 of ($56,477), an increase of $89,385 compared to ($145,862) for the same period last year. The improvement in adjusted EBITDA was a result of restructuring activities and immediate accretion on the acquisition of The Headhunters Recruitment Inc. (“The Headhunters”). The results demonstrate the Company’s resilience during COVID-19.
  • Group revenue for the third quarter was $2,549,339, 16.1% lower than $3,040,243 for the same quarter in 2019. Lower revenue was driven by a combination of overall market weakness due to COVID-19 impacting staffing levels, particularly in the contract space across all verticals, and lower year-over-year results on permanent placements in the accounting and finance vertical. These unfavourable variances were tempered by robust activity in Western Canada permanent placements across all verticals.
  • Despite lower year-over-year revenue, gross margin improved to $883,317 (34.6% gross margin) in the quarter, up from $736,458 (24.2% gross margin) over the same period last year. The improvement in gross margin was a result of higher permanent placements relative to contract placements.
  • Selling, general and administrative expenses (“SG&A”) in the quarter were $1,888,434 compared to $1,618,892 for the quarter ended September 30, 2019. SG&A included higher option issuance expense of $257,700 ($213,523 – September 30, 2019) and higher restructuring and other non-operating items of $676,209 ($503,938 – September 30, 2019). Excluding these items, SG&A expenses were essentially flat.
  • Adjusted net loss for the quarter was $100,181 (adjusted net loss per share of $0.00), a $106,154 improvement compared to the adjusted net loss of $206,335 (adjusted net loss per share of $0.01) for the same period last year.
  • On August 21 and 24, 2020, the Company closed a private placement of unsecured convertible debentures for gross proceeds of $2,419,000.
  • On September 1, 2020, the Company acquired 100% of The Headhunters for $400,000 and future consideration based on 4.0x trailing twelve months EBITDA calculated on the second anniversary of closing less $400,000 and closing working capital adjustments. The Headhunters is a leading recruitment firm with a focus on finding the right fit through its proprietary Workstyle & Performance Profile behavioural assessment tool. The acquisition expands HIRE’s presence across four provinces in western Canada.
  • On September 29, 2020 the Company made a strategic investment via a 10% $200,000 USD convertible note in Atlas ID Systems Inc. (“Atlas ID”); an HR technology company that powers a private and secure COVID-19 risk mitigation platform for employers. The platform enables individuals to voluntarily self-report symptoms, receive COVID-19-related test results, and choose when and with whom to share those results with end-to-end encrypted technology. The Company also entered into a partnership to be Atlas ID’s exclusive distribution partner in Canada.

Subsuquent to the End of the Quarter

  • HIRE announced the Company has entered into a definitive arm’s length share purchase agreement with the shareholders of Kavin Talent Management & Recruiting (“KTMR”), to acquire all of the issued and outstanding shares of KTMR. KTMR offers staffing services for a wide range of industrial and health care roles in Southern Ontario and other Canadian jurisdictions.
  • To fund the acquisition, HIRE announced the Company intends to complete a non-brokered private placement financing of up to $1,000,000 at $0.60 per unit with each unit consisting of one common share and one half of one share purchase warrant with each whole warrant exercisable for one common share for a period of 24 months at $0.90 per common share.

Outlook

While uncertainty remains with the COVID-19 pandemic, the Company is operationally well-positioned to meet the needs of its current and future partners.

The Company’s priorities continue to be:

  • Execute on acquisitions, investments and partnerships.
  • Pursue organic growth in new and established verticals.
  • Explore additional opportunities for efficiencies in its operating businesses.
  • Increase awareness of HIRE and its unique value proposition.

Selected Financial Highlights

The financial results of HIRE for the three and nine months ended September 30, 2020 and 2019 are summarized below: Please see SEDAR for complete copies of the Company’s condensed interim consolidated financial statements and MD&A.

  Three Months Ended Nine Months Ended
Period Ended >> Sept. 30, 2020 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2019
Net Loss ($5,942,533) ($923,796) ($7,754,046) ($2,765,734)
Interest $37,753 $23,085 $61,979 $190,632
Amortization $28,404 $22,650 $73,704 $67,950
Depreciation $41,279 $41,363 $147,335 $135,898
Tax ($37,184) ($4,373) ($48,519) ($13,119)
EBITDA ($5,872,281) ($841,071) ($7,519,547) ($2,384,373)
Add:        
Restructuring & Other Non-Recurring Items $676,209 $503,938 $2,177,351 $1,296,495
Convertible debentures – unrealized loss on fair value of derivative $4,908,443 $4,908,443
Share based compensation expense $257,700 $213,523 $257,700 $567,829
Rent expense ($26,548) ($22,252) ($79,644) ($66,756)
Adjusted EBITDA ($56,477) ($145,862) ($255,697) ($586,805)
         
  Three Months Ended Nine Months Ended
Period ended >> Sept. 30, 2020 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2019
Net Loss for the Period ($5,942,533) ($923,796) ($7,754,046) ($2,765,734)
Add:        
Restructuring & Other Non-Recurring Items $676,209 $503,938 $2,177,351 $1,296,495
Convertible debentures – unrealized loss on fair value of derivative $4,908,443 $4,908,443
Share based compensation expense $257,700 $213,523 $257,700 $567,829
Non-Recurring Rent $113,000
Adjusted net loss ($100,181) ($206,335) ($297,552) ($901,410)
Adjusted net loss per share  ($0.00) ($0.01) ($0.01) ($0.03)
Weighted number of shares 48,097,746 38,712,581 48,090,829 34,932,444

 

Non-IFRS Measures

This news release refers to certain financial measures that are not defined by International Financial Reporting Standards (“IFRS”), including earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted net earnings (loss), and gross margin. For more information see “Non-IFRS measures” herein.

  1. EBITDA and adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. EBITDA is defined as net income/loss adjusted to exclude interest, taxes, depreciation, and amortization. It provides management with insight into HIRE’s operating performance without the impact of significant accounting policies related to depreciation and amortization, financing, and taxes. Adjusted EBITDA is defined as EBITDA, excluding restructuring and other non-operating items, unrealized gains and losses on derivative financial instruments recognized as part of financings, and share based compensation expense. Adjusted EBITDA also includes rent payments, which are not accounted for in EBITDA following the adoption of IFRS 16 Leases. The Company believes that EBITDA and adjusted EBITDA are useful measures in evaluating the performance of the Group.
  2. Adjusted net earnings (loss) is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS. The Company defines adjusted net earnings (loss) as net earnings (loss) excluding restructuring and other non-operating items, unrealized gains and losses on derivative financial instruments recognized as part of financings, and share based compensation expense. The Company believes that adjusted net earnings (loss) is a meaningful metric in assessing the Group’s financial performance.
  3. Gross margin is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Gross margin as revenue less cost of services. Gross margin should not be construed as an alternative for revenue or net earnings (loss) determined in accordance with IFRS. The Company believes that Gross margin is a meaningful metric in assessing the Group’s financial performance and operational efficiency.

About HIRE Technologies Inc.

HIRE is building a network of staffing, IT, and HR consulting firms. We help our partners navigate the changing world through growth solutions, focusing on digital transformation. Our partnership model emphasizes preserving the identity and independence of what our partners have built while providing them with the resources and support to take their businesses further.

Advertisement

For further information, please contact:

HIRE Technologies Inc.
Simon Dealy, Chief Executive Officer
Phone: (647) 868-9611
Email: [email protected]
Web: hire.company

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward Looking Information

This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.

All statements that address activities, events or developments that HIRE Technologies expects or anticipates will, or may, occur in the future, including statements about HIRE’s business prospects, future trends, plans, and strategies, including: trends towards break-even financial results, the completion of future financings and acquisitions including the acquisition of KTMR and the proposed concurrent financing, the future impact of COVID-19 on the Company’s business; prospective acquisitions, investments and partnerships; organic growth in its established verticals; future efficiencies in its operating businesses, increased awareness of HIRE and its value proposition; and expected benefits from business activities are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Although the management of HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of HIRE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: risks related to the recent outbreak of COVID-19, which may have material adverse effects on the global financial markets, and its business, financial position, financial performance, and cash flows; the impact on the business of broader economic factors; alignment of HIRE’s cost structure with revenue; HIRE’s limited operating history and needs for additional capital; uncertainty relating to liquidity and capital requirements; risks inherent in HIRE’s acquisition strategy; HIRE may not be able to obtain financing necessary to implement HIRE’s business plan; HIRE may not be able to obtain access to technology necessary to compete in the recruiting industry; HIRE operates in a highly competitive industry and may be unable to retain clients or market share; barriers to client portability are low; reliance on key management; and compliance with financial reporting and other requirements as a public company. Additional risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry can be found in the Company’s continuous disclosure record available on SEDAR. Although HIRE has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

Such cautionary statements qualify all forward-looking statements made in this press release. HIRE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Advertisement

Fintech

Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)

Published

on

fintech-pulse:-your-daily-industry-brief-(chime,-zbd,-mica)

 

As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.

Chime’s Quiet Step Toward Public Markets

Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.

With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.

Source: Bloomberg

ZBD’s Pioneering Achievement: EU MiCA License Approval

ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.

MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.

Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.

Source: Coindesk, PR Newswire

Advertisement

The Fintech-Credit Union Synergy: A Blueprint for Innovation

The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.

This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.

Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.

Source: PYMNTS

Tackling Student Loan Debt: A Fintech’s Mission

Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.

The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.

As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.

Source: RBJ

Industry Implications and Takeaways

Today’s updates underscore several key themes shaping the fintech landscape:

  1. Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
  2. Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
  3. Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
  4. Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.

 

The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.

Advertisement
Continue Reading

Fintech

SPAYZ.io prepares for iFX EXPO Dubai 2025

Published

on

spayz.io-prepares-for-ifx-expo-dubai-2025

Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.

SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.

Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.

“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”

Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.

The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.

Continue Reading

Fintech

Airtm Enhances Its Board of Directors with Two Strategic Appointments

Published

on

airtm-enhances-its-board-of-directors-with-two-strategic-appointments

Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.

“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”

Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.

Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.

The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.

Continue Reading

Trending