CLEVELAND, Nov. 16, 2010 (GLOBE NEWSWIRE) -- SearchPath HCS Inc. (Pink Sheets:SRCP), a leading Human Capital Solutions provider, today announced the release of its first quarter results for fiscal 2011, reporting total revenue of $209,998 during Q1 2011, or a 192% increase over the same period in 2010 when the Company reported total revenue of $72,024. SearchPath also reported a 337% increase in Gross Profit during Q1 2011 over Q1 2010, reporting figures of $190,119 and $43,487 respectively.
During the first quarter of 2011, SearchPath reported net income of $17,943 compared to a net loss of $197,539 during Q1 2010, which represents the first time that SearchPath has reported positive net income during three of its previous four quarters. The Company experienced significant YoY increases in every revenue category, including a 249% YoY increase in "Corporate Placement Fees" during Q1 of 2011 compared to the same period in 2010, reporting fees of $76,688 and $22,000 respectively.
SearchPath HCS received $92,811 in "Royalty and Advertising Income" which it collects from franchisees of its subsidiary, SearchPath International during Q1 2011. This represents an 86% YoY increase over the same period in 2010 when the Company collected $50,005 in "Royalty and Advertising Income." In addition to increasing its revenue and net income, SearchPath also reduced its operating expenses by 25% during Q1 2011 compared to Q1 2010, reporting figures of $160,589 and $215,352 respectively.
Thomas K. Johnston, Chief Executive Officer of SearchPath HCS, Inc., commented, "We are very pleased to report positive net income and tremendous revenue growth in every category during the first quarter. We have now shifted our primary focus back to aggressively growing our SPI Franchise business whereas last quarter we focused our resources on providing the highest quality training and support for our existing franchises because such a strategy provided the best ROI during the recent significant economic downturn. These results reaffirm our projections of accelerating growth for fiscal 2011 and beyond as industry conditions improve and the Company continues to reduce our operating expenses even in the wake of significant revenue growth."
"In addition to pursuing significant international expansion of our SearchPath International franchises, SearchPath is beginning to explore a variety of opportunities that will enhance the capabilities of our Human Capital Solutions platform and add value to the services we currently provide to our existing clients, candidates and franchisees," continued Johnston.
Search Path HCS, Inc.'s Financial Statements can be found at Pink Sheets SRCP under Filings.
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) . SPI is a U.S.-based talent acquisition professional services firm, with 65 franchises nationwide. 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.
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