THPHF second quarter huge, low float, should move big.
Thinkpath Reports Second Quarter and Six Months Results; $.03 and $.01 Earnings per Share for Respective Periods; EBITDA of $1.2 Million Projected for Year 2007
New Customer Wins, Aggressive Marketing to Existing Clients Key to Generating Top Line Revenues, Driving Profitability
Thinkpath, Inc. (OTCBB: THPHF), a global leader in engineering and design services, announced achieving $.03 in earnings per share for the second quarter ended June 30, 2007, versus a loss of $(.22) per share for the like year earlier period. For the six months period ended June 30, 2007, Thinkpath earned $.01, versus a loss of $(.31) per share for the prior six month period. Revenues for the three months ended June 30, 2007 were $4,161,000, up 10%, versus $3,793,000 reported for the second quarter of 2006. For the six months ended June 30, 2007, revenues were $8,013,000, up 20%, compared to $6,704,000 for the same period last year.
Net earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter and six months, both ended June 30, 2007, were respectively, $234,000 and $470,000, versus a negative $(115,000) and $(373,000), for the prior second quarter and six month periods ended June 30, 2006. The average weighted common shares outstanding for the second quarter just ended were 8,067,000 versus 4,369,000 for the second quarter of 2006, and for the six months just ended 8,941,000 versus 4,369,000.
Thinkpath Chairman and CEO, Declan French, said, "Our renewed focus on aerospace and defense and on growing existing accounts is paying off and has led to higher gross margins while reducing SG&A costs; based on our growing sales pipeline it is reasonable to expect the 3rd and 4th quarters to continue to grow at a similar rate."
"Thinkpath has been focused on improving bottom-line results while at the same time significantly improving our top line growth, as may been seen from the results we achieved in the second quarter of this year. We will continue to drive revenues in the coming quarters and to accelerate earnings per share and cash flow. We believe we represent an excellent growth opportunity to our shareholders and the investment community. We will continue to strive to be a leader in providing engineering design services and on-site engineering support to our growing list of clients throughout North America, and globally," said Kelly Hankinson, Thinkpath's CFO.
About Thinkpath
Thinkpath Inc. (OTCBB: THPHF) is a global provider of engineering design services and on-site engineering support. Customers include defense contractors, aerospace, logistics, healthcare, pharmaceutical and manufacturing companies, including Johnson and Johnson, Lockheed Martin, General Dynamics, Siemens, Federal Express, L-3 Communications, and Cummins Engines.
Thinkpath is positioned in growth industries, targeting customers with growing revenues who require its specialized design services and engineering support. Thinkpath is poised to benefit from increased demand generated by these targeted industries, and customers, that increasingly rely on project engineering design and technical staffing services.
For over 25 years, Thinkpath has helped companies achieve success with design and engineering objectives from office design centers located in the US and Canada, and partner in India. Our vision is to build lasting partnerships with our clients by delivering cost effective, quality, project engineering services; thus allowing us national and international scope, a respected, public company and a significant player in the defense, medical devices, and material handling industries. For further information click on www.thinkpath.com
The Company defines EBITDA as Net earnings (loss) before interest expense, income taxes, depreciation and amortization, write down of property and equipment, financing costs, debt forgiveness and other costs. EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP") in the United States of America and may not be comparable to a similar measure used by other companies. The Company has included information concerning EBITDA because it believes it is a useful financial indicator commonly used by investors. Management uses EBITDA as one measure to assess the operating performance of its branch units.
SAFE HARBOR STATEMENT:
Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Some of the factors that may affect the forward looking statements in this news release are the ability to grow our business, attract new or retain existing customers and/or professional staff, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Thinkpath, Inc. takes no obligation to update or correct forward-looking statements.
FINANCIAL RESULTS FOR SECOND QUARTER
AND SIX MONTHS ENDED JUNE 30, 2007
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
$ $ $ $
REVENUE 4,161,753 3,793,823 8,013,685 6,704,137
COST OF SERVICES 2,667,742 2,558,950 5,150,667 4,660,079
---------- ---------- ---------- ----------
GROSS PROFIT 1,494,011 1,234,873 2,863,018 2,044,058
---------- ---------- ---------- ----------
EXPENSES
Administrative 749,819 885,860 1,414,805 1,479,085
Selling 509,783 464,660 977,727 938,476
Depreciation and
amortization 112,847 175,775 216,097 263,707
Write down of property
and equipment - - 3,443 -
Financing costs and
mark-to-market
adjustments 69,157 577,756 73,188 453,549
Debt forgiveness (713,884) (78,062) (713,884) (78,062)
---------- ---------- ---------- ----------
727,722 2,025,989 1,971,376 3,056,755
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE
INTEREST CHARGES
AND INCOME TAXES 766,289 (791,116) 891,642 (1,012,697)
Interest Charges 509,664 161,964 820,604 304,195
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES 256,625 (953,080) 71,038 (1,316,892)
Income Taxes 300 11,194 3,841 19,037
---------- ---------- ---------- ----------
NET INCOME (LOSS) 256,325 (964,274) 67,197 (1,335,929)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON STOCK
OUTSTANDING BASIC AND
DILUTED 8,067,112 4,369,147 8,941,738 4,369,147
========== ========== ========== ==========
NET INCOME (LOSS) PER
WEIGHTED AVERAGE COMMON
STOCK
BASIC AND DILUTED 0.03 (0.22) 0.01 (0.31)
========== ========== ========== ==========
Contact:
Michael Dodge
ROI Group LLP
39 Broadway
NY, NY 10006
212.495.0744
mdodge@roiny.com
Thinkpath Inc.
Kelly Hankinson, CFO
416-622-5200
Source: Market Wire (August 21, 2007 - 6:00 AM EST)
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