Cleveland, OH (PRWEB) February 17, 2012
SearchPath HCS, Inc. (Pink Sheets: SRCP), announced that its fiscal 2nd quarter results showed a loss of $598,562 due to a onetime charge related to the ongoing restructuring of the company. Operating expenses for the quarter were $698,547 compared to $231,842 for the same period last year. Current quarter expenses reflect a one-time charge of $508,253 in bad debt expense for terminated franchise agreements. Before the one-time charge, the operating expenses for the quarter were $190,294; an 18% reduction in operating expenses versus the same period last year.
“We are continuing to eliminate our underperforming units. The plan we are implementing will have a significant impact on our long-term financials and growth potential. To date, the restructuring has been reflected most obviously in our same store revenues, which have increased 30% year over year. Additionally, our average revenue per unit under our restructured platform shows an increase from $94,190 in 2010 to $168,401 as of today,” said Thomas K. Johnston, President and CEO of SearchPath HCS.
“Our royalty income continues to improve after a very difficult couple of years, as well. Royalties of $79,354 for the quarter are up 14% compared to the same quarter in 2010, and we are up 4% over the previous quarter. The total income of $117,354 is down 40% over the previous quarter, reflecting our strategic decision to not add any new franchise units until we complete our restructuring,” continued Johnston. “Our restructuring plan is on track, and it will allow the company to clean up some outstanding issues related to the overall economic conditions experienced during the last few years. We are positioning the company for a very aggressive growth plan for 2012. The demand for top talent is escalating and our platform will reflect and capitalize on these very positive trends. We intend to begin adding new units, and we are starting to explore leveraging our status as the only publicly held company in our market in order to pursue acquisitions of existing search and recruiting firms. By offering a truly unique exit strategy, we are able to present a compelling value proposition to other firms in our space,” said Johnston.
About SearchPath HCS, Inc.
SearchPath HCS, Inc. is a diversified human capital solutions firm and the parent company of SearchPath International, Inc. http://www.searchpath.com.
SearchPath is a one of the premier, vertically integrated providers of Headhunting Services in the world. SearchPath International has redefined the way clients do business with Headhunters by implementing a client-centric approach that combines proven industry best practices with 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.
Source: SearchPath HCS, Inc.