CLEVELAND, May 17, 2010 (GLOBE NEWSWIRE) -- Search Path HCS, Inc. (Pink Sheets:SRCP), a leading Human Capital Solutions Company, today announced an increase in net income and gross profit during its fiscal 3rd Quarter ended March 31, 2010 compared to its fiscal 3rd Quarter ended March 31, 2009, as well as from the cumulative first three quarters of fiscal 2010 compared to the same period in 2009.
SearchPath, HCS, Inc. recorded $53,183 in net income during the 3rd Quarter of 2010 compared to recording a loss of $120,722 during the 3rd Quarter of 2009. Additionally, during the nine months ended March 2010, the Company recorded cumulative net income of $49,786 compared to a loss of $500,354 during the nine months ended March 2009. During the same comparison period of the first three quarters of 2010 vs. 2009, SearchPath HCS recorded a gross profit of $557,054 vs. $440,969, representing a 26% increase and Net Revenues of $656,224 compared to $544,414, representing an increase of over 20%.
The largest factor behind SearchPath HCS's increase in net revenues during the first three quarters of 2010 vs. 2009 was a 59% increase in Franchise Fees collected during this period which were $389,475 and $244,725 respectively.
Additionally, SearchPath, HCS experienced a drastic reduction in expenses during the 3rd Quarter of 2010 compared to the same period in 2009, helping facilitate the Company's increase in net income and gross profit. The Company's Operating Expenses were $150,744 in the 3rd Quarter of 2010 vs. $259,229 during the 3rd Quarter of 2009, representing a decrease of 42%.
"We are extremely pleased with our overall performance during the last three quarters. Our efforts to increase revenue generation while implementing cost control measures have resulted in a strong quarterly performance. The economic climate of the last two years has been very difficult, however the fact that our franchise royalty income, which is one of our key performance metrics, has increased, clearly demonstrates that SearchPath's training and operational platform is sound," commented Thomas K. Johnston, Chief Executive Officer of SearchPath HCS, Inc.
"The Human Capital markets as a whole are behaving in line with historical trends where the labor market tends to be one of the first segments to feel the impact of a recessionary market and is also one of the first to rebound. It is our expectation that the overall employment and staffing market will continue to strengthen as the global economy continues to improve and organizations seek to develop and increase staff," continued Mr. Johnston.
About Search Path HCS, Inc.
SearchPath HCS, Inc. www.searchpathhcs.com 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 more than 75 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.