-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JGDRI+Zi4YMx1I964P3WRsuY1BJopNDKL9SURETE9OgZ9z2LttcFiEVTXN4/feQc PTd7VR+86XG7fbzd7HdPxw== 0001144204-07-039345.txt : 20070801 0001144204-07-039345.hdr.sgml : 20070801 20070731173324 ACCESSION NUMBER: 0001144204-07-039345 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070801 DATE AS OF CHANGE: 20070731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WORKSTREAM INC CENTRAL INDEX KEY: 0001095266 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 000000000 FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15503 FILM NUMBER: 071013685 BUSINESS ADDRESS: STREET 1: 495 MARCH RD STE 300 STREET 2: OTTAWA ONTARIO CITY: CANADA K2K 3G2 STATE: A6 ZIP: 00000 BUSINESS PHONE: 6132362263 MAIL ADDRESS: STREET 1: 495 MARCH RD SE 300 STREET 2: OTTAWA ONTARIO CITY: CANADA K2K 3G2 STATE: A6 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: E CRUITER COM INC DATE OF NAME CHANGE: 19990917 8-K 1 v082576_8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

 
Date of report (Date of earliest event reported): July 25, 2007

WORKSTREAM INC.
(Exact Name of Registrant as Specified in Charter)
 
 
CANADA
 
001-15503
 
N/A
(State or Other Jurisdiction
of Incorporation)
 
(Commission File Number)
 
(I.R.S. Employer 
Identification No.)
 

495 MARCH ROAD, SUITE 300, OTTAWA, ONTARIO, CANADA K2K-3G1
(Address of Principal Executive Offices) (Zip Code)

(613) 270 0619
(Registrant's Telephone Number, Including Area Code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


Item 2.02 Results of Operations and Financial Condition
 
On July 25, 2007, Workstream Inc. issued a press release regarding its consolidated financial results for the fourth quarter of fiscal 2007 as of and for the three- month period and year ended May 31, 2007. The full text of such press release is furnished as Exhibit 99.1 to this report.


Item 9.01 Financial Statements and Exhibits


(c) Exhibits


99.1
Press Release of Workstream Inc. dated July 25, 2007
 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  
 
 
 
 
WORKSTREAM INC.
     
 
 
 
Dated: July 31, 2007
By:  
/s/ Stephen Lerch
 
Name: Stephen Lerch
Title: Chief Financial Officer
 
 
 
 
 
 
 EX-99.1 2 v082576_ex99-1.htm
 
Workstream Inc. Announces Fourth Quarter and Fiscal 2007 Year-End Results
 
 
Burlingame, CA, July 25, 2007 - Workstream Inc. (NASDAQ - WSTM), a leading provider of on-demand compensation, performance and talent management solutions, today announced its fourth quarter and fiscal 2007 year-end results for the period ended May 31, 2007. All figures are in U.S. dollars.
 
Total revenue for the fourth quarter was $7,376,000 compared to $7,844,000 in the prior year’s period, a decrease of $468,000 or 6%. EBITDA loss for the fourth quarter of fiscal 2007 was $(1,322,000), or $(0.03) per share, compared to an EBITDA loss of $(743,000), or $(0.01) per share, in the fourth quarter of fiscal 2006. The Company’s net loss for the quarter ended May 31, 2007 was $(4,036,000), or $(0.08) per share, compared to a net loss of $(2,426,000), or $(0.05) per share, in last year’s comparable quarter.
 
For the fiscal year 2007, total revenue was $29,309,000 compared to fiscal year 2006 revenue of $28,121,000, an increase of $1,188,000 or 4%. For the year, the Company had EBITDA loss of $(3,645,000) or $(0.07) per share compared to EBITDA loss of $(6,297,000) or $(0.12) per share for fiscal year 2006. The net loss for fiscal year 2007 was $13,758,000 or $(0.27) per share compared to a net loss of $(12,986,000) or $(0.26) per share for fiscal year 2006.
 
“Commenting on the results, Deepak Gupta, President and Chief Executive Officer said, “We continue to execute on our business plan by making investments in sales and marketing as well as expanding into new revenue opportunities and strategic partnerships, to drive future revenue growth.”
 
 
2007 Fiscal Year Highlights:
 
The following highlights were announced or occurred since Workstream Inc.’s last quarterly earnings statement:
 
 
·
Workstream announces launch of new mid-market offering for companies with less than 2,500 employees
 
·
DRS Technologies goes live with entire Workstream TalentCenter offering
 
·
Workstream receives significant product order for $850,000 from existing customer
 
·
Workstream closes significant OEM deal for $2,000,000
 
·
Workstream expands the depth of it’s executive team with key hires
 
The following additional highlights occurred during Workstream Inc.’s fiscal 2007 year:
 
 
·
Workstream wins important customers such as American Express, ASML, Cardinal Health, and St. Michaels Hospital. Major expansions included The Gap, Kaiser Permente, EDS, Shaw Group, Compass Bank, Liberty Mutual and Chevron
 
·
Workstream launches new state-of-the-art FusePoint data center in Toronto
 
·
Workstream launches latest version of the Workstream TalentCenter 6.1
 
 
 
 
 
 
·
6 Figure Jobs receives Weddle’s User’s Choice Award for second consecutive year
 
·
Workstream named Finalist for Deloitte Fast 50 for Canada for the 5th year in a row
 
·
Workstream passes SAS 70 Type II certification
 
·
Workstream secures $15M in debt financing
 
Management will host a conference call at 5:00 p.m. ET on Wednesday, July 25, 2007. The dial in number to participate in the call is 866-898-9626 for North American participants and 800-8989-6323 for those outside of North America. The instant replay number for the call will be available until August 1, 2007 by calling 800-408-3053 access code 3226547#.
 
EBITDA and EBITDA per share are non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA provides useful information to investors as it excludes transactions not related to the core cash operating business activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. All companies do not calculate EBITDA in the same manner, and EBITDA as presented by Workstream may not be comparable to EBITDA presented by other companies. Workstream defines EBITDA as earnings or loss before interest, taxes, depreciation amortization, non-cash equity compensation and non-recurring goodwill impairment, if applicable. Following the financial statements attached is a reconciliation of net loss to EBITDA loss and EBITDA per share that should be read in conjunction with the financial statements.
 
About Workstream Inc.
Workstream provides on-demand compensation, performance and talent management solutions and services that help companies manage the entire employee lifecycle - from recruitment to retirement. Workstream's TalentCenter provides a unified view of all Workstream products and services including Recruitment, Performance, Compensation, Development and Transition. Access to TalentCenter is offered on a monthly subscription basis under an on-demand software delivery model to help companies build high performing workforces, while controlling costs. With offices across North America, Workstream services customers including Chevron, The Gap, Home Depot, Kaiser Permanente, Motorola, Nordstrom, VISA and Wells Fargo. For more information visit www.workstreaminc.com or call toll free 1-866-470-WORK.
 
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Workstream's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to grow our client base and revenue because of the number of competitors and the variety of sources of competition we face; client attrition; inability to offer services that are superior and cost effective when compared to the services being offered by our competitors; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to enter into successful strategic relationships and other risks detailed from time to time in filings with the Securities and Exchange Commission.
 
For more information contact:
 
 
Phil Oreste
 
Workstream Inc.
Tel: 866-953-8800 ext. 888
Email: investorrelations@workstreaminc.com

 
 
 
 

 



WORKSTREAM INC.
 
CONSOLIDATED BALANCE SHEETS
 
 
   
May 31, 2007
  
May 31, 2006
  
ASSETS
          
Current assets:
  
Cash and cash equivalents
  
$
2,752,601
  
$
4,577,040
  
Restricted cash
    
524,497
    
3,095,348
  
Short-term investments
   
65,851
    
302,197
  
Accounts receivable, net
    
3,789,838
    
3,100,779
  
Prepaid expenses and other assets
    
848,359
    
527,876
  
Total current assets
    
7,981,146
    
11,603,240
  
Property and equipment, net
    
2,715,494
    
1,789,739
  
Other assets
    
85,122
    
87,468
  
Acquired intangible assets, net
    
2,602,590
    
8,067,423
  
Goodwill
    
45,276,411
    
44,721,859
  
               
TOTAL ASSETS
  
$
58,660,763
  
$
66,269,729
  
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
              
Current liabilities:
  
Accounts payable
  
$
2,259,010
  
$
2,690,388
  
Accrued liabilities
    
2,961,928
    
2,132,470
  
Line of credit
          
2,537,246
  
Accrued compensation
    
1,378,444
    
1,073,239
  
Notes payable
    
4,557,395
    
558,776
  
Current portion of long-term obligations
    
639,445
    
337,517
  
Deferred revenue
    
2,699,461
    
3,360,766
  
Total current liabilities
    
14,495,684
    
12,690,402
  
Long-term obligations
    
744,224
    
288,269
  
Deferred revenue
    
234,293
    
268,727
  
Total liabilities
    
15,474,200
    
13,247,398
  
               
Commitments and contingencies
          
-
  
               
STOCKHOLDERS’ EQUITY
              
Common stock, no par value: 51,531,152 and 50,960,845
             
shares issued and outstanding, respectively
    
112,549,178
    
111,991,328
  
Additional paid-in capital
    
10,907,755
    
7,547,393
  
Accumulated other comprehensive loss
    
(867,288
)
  
(871,781
)
Accumulated deficit
    
(79,403,082
)
  
(65,644,609
)
Total stockholders’ equity
    
43,186,563
    
53,022,331
  
               
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  
$
58,660,763
  
$
66,269,729
  
 
 
 
 
 
WORKSTREAM INC.
   
CONSOLIDATED STATEMENTS OF OPERATIONS
 
                   
   
Three Months ended
May 31,
  
Year ended
May 31,
  
   
2007
  
2006
  
2007
  
2006
  
                   
Enterprise Workforce Services
  
$
4,835,549
  
$
5,366,949
  
$
20,218,844
  
$
20,157,009
  
Career Networks
    
2,540,238
    
2,476,734
    
9,089,925
    
7,963,653
  
Revenues, net
    
7,375,788
    
7,843,683
    
29,308,769
    
28,120,662
  
Cost of revenues (exclusive of amortization and depreciation expense noted below)
    
1,710,093
    
1,737,514
    
7,400,632
    
7,808,115
  
Gross profit
    
5,665,695
    
6,109,169
    
21,908,137
    
20,312,547
  
                           
Operating expenses:
                          
Selling and marketing
    
1,995,332
    
2,054,764
    
7,548,777
    
6,934,056
  
General and administrative
    
4,068,376
    
3,188,182
    
14,959,116
    
14,253,037
  
Research and development
    
1,218,799
    
1,606,190
    
4,013,158
    
5,422,309
  
Amortization and depreciation
    
1,614,446
    
1,653,672
    
6,502,977
    
6,684,880
  
Total operating expenses
    
8,896,953
    
8,502,808
    
33,024,028
    
33,294,282
  
                           
Operating loss
    
(3,231,258
)
  
(2,396,639
)
  
(11,115,891
)
  
(12,981,735
)
                           
Interest and other income
    
92,700
    
45,948
    
523,531
    
223,722
  
Interest and other expense
    
(873,698
)
  
(51,766
)
  
(3,041,731)
)
  
(163,504
)
Other income (expense), net
    
780,998
    
(5,818
)
  
(2,518,200
)
  
60,218
  
                           
Loss before income tax
    
(4,012,256
)
  
(2,402,457
)
  
(13,634,091
)
  
(12,921,517
)
Recovery of deferred income taxes
          
-
          
-
  
Current income tax expense
    
23,756
    
23,428
    
124,782
    
64,774
  
NET LOSS FOR THE PERIOD
    
(4,036,012
)
$
(2,425,885
)
$
13,758,473
)
$
(12,986,291
)
                           
Weighted average number of common shares outstanding
    
51,531,152
    
50,960,845
    
51,134,281
    
49,827,925
  
                           
Basic and diluted net loss per share
  
$
(0.08
)
$
(0.05
)
$
(0.27
)
$
(0.26
)


 
 
 

 
WORKSTREAM INC.
  
           
CONSOLIDATED STATEMENTS OF CASH FLOWS
  
           
   
2007
  
2006
  
Cash provided by (used in) operating activities:
          
Net loss for the year
 
$
(13,758,473
)
$
(12,986,291
)
Adjustments to reconcile net loss to net cash (used in) provided by
             
operating activities:
              
Amortization and depreciation
    
6,502,977
    
6,684,880
  
Leasehold inducement amortization
    
(54,236
)
  
(53,835
)
Provision for bad debt
    
85,502
    
372,696
  
Non-cash interest on notes payable
    
2,012,159
    
-
  
Non-cash compensation and payments to consultants
   
967,862
    
226,326
  
Change in long-term portion of deferred revenue
    
(34,434
)
  
191,571
  
Net change in operating components of working capital:
              
Accounts receivable
    
(1,465,023
)
  
906,137
  
Prepaid expenses and other assets
    
(182,757
)
  
(13,215
)
Accounts payable and accrued liabilities
    
202,320
    
661,216
  
Deferred revenue
    
(653,535
)
  
(899,111
)
Net cash used in operating activities
    
(6,377,638
)
  
(4,909,626
)
               
Cash provided by (used in) investing activities:
              
Purchase of property and equipment
    
(638,549
)
  
(682,702
)
Cash paid for business combinations
         
(500,000
)
Decrease in restricted cash
   
2,716,766
    
319,856
  
Sale of short-term investments
    
16,510
    
50,293
  
Net cash provided by (used in) investing activities
    
2,094,727
    
(812,553
)
               
Cash provided by (used in) financing activities:
              
Proceeds from issuance of secured notes payable , net
    
14,650,000
   
-
  
Repayment of secured notes payable
    
(10,000,000
)
  
-
  
Repayment of other long-term obligations
   
(1,013,937
)
  
(1,712,286
)
Proceeds from exercise of options and warrants
          
304,170
  
Line of credit, net activity
    
(1,487,351
)
  
(90,863
)
Net cash (used in) provided by financing activities
    
2,148,712
    
(1,498,979
)
               
Effect of exchange rate changes on cash and cash equivalents
    
309,760
    
(13,413
)
               
Net decrease in cash and cash equivalents
    
(1,824,439
)
  
(7,234,571
)
Cash and cash equivalents, beginning of year
   
4,577,040
    
11,811,611
  
               
Cash and cash equivalents, end of year
  
$
2,752,601
  
$
4,577,040
  
               
Non-cash investing and financing activities:
          
Equipment acquired under capital leases
  
$
1,224,028
  
$
485,677
  
Issuance of common shares as contingent consideration
    
557,850
        
Distribution of restricted stock
    
73,336
        
 
 
 
 
 
WORKSTREAM INC.
              
UNAUDITED RECONCILIATION OF EARNINGS OR LOSS BEFORE INTEREST, DEPRECIATION, AMORTIZATION AND NON-CASH COMPENSATION (EBITDA)
               
 
                    
   
Three Months ended
May 31,
 
Year ended
May 31,
  
   
2007
  
 2006
  
2007
  
2006
  
                    
Net loss, per GAAP
  
$
(4,036,012
)
$
(2,425,885
)
$
(13,758,473
)
$
(12,986,291
)
Income tax expense
    
23,756
    
23,428
    
124,382
    
64,774
  
Interest and other expense
    
873,696
    
51,766
    
3,041,731
    
163,504
  
Interest and other income
    
(92,700
)
  
(45,948
)
  
(523,531
)
  
(223,722
)
Amortization and depreciation
    
1,614,446
    
1,653,672
    
6,502,977
    
6,684,880
  
Non-cash compensation
    
294,351
          
967,862
        
EBITDA (loss)
  
$
(1,322,461
)
$
(742,967
)
$
(3,645,053
)
  
($6,296,855
)
                           
Weighted average number of common shares outstanding
    
51,531,152
    
50,960,845
    
51,134,281
    
49,827,925
  
                           
                           
Basic and diluted loss per share, per GAAP
  
$
(0.08
)
$
(0.05
)
$
(0.27
)
$
(0.26
)
                           
Basic and diluted EBITDA loss per share
  
$
(0.03
)
$
(0.01
)
$
(0.07
)
$
(0.12
)

 

 
 
 
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