SearchPath HCS Turns Profitable for Fiscal 2011
Strong 4th Quarter Pushes SearchPath HCS to Profitability
CLEVELAND, Ohio, Sept. 30, 2011 (GLOBE NEWSWIRE) -- SearchPath HCS Inc.
(Pink Sheets:SRCP), announced that after five consecutive years of losses, the company has turned a profit for fiscal year 2011. "Although the profit was just $35,600, when compared to a loss of $190,882 in 2010, it is evidence that our continued focus on increasing revenues and reducing operating expenses, down by 53% this year over last, is validating our strategy and platform," said Tom Johnston, CEO of SearchPath HCS.
Revenues were just below 2010 levels at $853,720, but royalty revenues continued to improve, up 8% year over year. In addition, corporate placement fees showed an 89% year over year growth reflecting the continued strengthening of the search and recruitment marketplace. For the first eight months of 2011, compared to the first eight months of 2010, the top 20% of SearchPath offices showed increased revenues of 35%.
"Since our inception in 2005, we have continued to refine our offering to reflect the changes in our marketplace. We are committed to building a world class organization and to relentlessly pursuing top talent for our clients in most industries and functions around the world,"
Johnston continued, "Our techniques and marketing approach, reflected in the launch of a worldwide branding strategy, are built on leveraging industry specific relationships and identification of the top passive candidates. During the last 12 months, we have eliminated 24 underperforming offices and anticipate a further reduction as we continue to refine our offering and raise the bar for participation in our organization."
"The unemployment rate for our target candidates is just 4.3%."
"The unemployment rate for our target candidates is just 4.3%. Our goal for 2012 is to capitalize on this market for high quality, high impact candidates. The emphasis on growth and job creation will escalate the needs for our services and also fuel the acquisition of new franchise owners."
About Search Path HCS, Inc.
SearchPath HCS, Inc. is a rapidly growing human capital solutions firm and the parent company of SearchPath International, Inc. (SPI) www.searchpath.com. SPI is a U.S.-based talent acquisition professional services firm, with 69 signed franchise agreements, domestic and international. Founded in 2005, SPI's goal is to become the premier, vertically-integrated provider of talent acquisition professional services in the world. In addition to being a stand-alone talent and acquisition services firm, SPI is also a franchisor of its business that has redefined the way clients do business with recruiters by implementing a client-centric approach that combines proven industry best practices and revolutionary concepts.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company and SPI set forth herein and those preceded by or that include the words "believes,'' "expects,'' "given,'' "targets,'' "intends,''
"anticipates,'' "plans,'' "projects,'' "forecasts'' or similar expressions, are "forward-looking statements". Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. The Company assumes no obligation to update any of the information contained or referenced in this press release.
CONTACT: SearchPath HCS, Inc.