TORONTO, ON–(Marketwired – May 29, 2015) – Symbility Solutions Inc. (the “Corporation”), (TSX VENTURE: SY), a global software company dedicated to developing applications for the insurance industry, today announced financial results for its first quarter 2015, ended March 31.
“As we had announced at the beginning of 2014, our largest customer terminated at year-end which impacted our first quarter revenue. This customer, together with the supply chain, represented $10.3 million which effectively reset our revenue to $17.5 million to start 2015,” commented James Swayze, CEO, Symbility Solutions Inc. “While we knew it would be challenging to recoup this lost revenue in a single year, we are pleased to report that our first quarter financial results, together with the pro forma growth attributable to the business we acquired in the UK have us at a run rate of approximately $23.5 million with a more balanced customer concentration of 10 percent.”
Pro Forma1 Performance
On a pro forma basis, assuming the previously announced acquisition of customer contracts and related people from The Innovation Group (LSE: TIG) that was completed March 31, 2015, had occurred January 1, 2015, revenue decreased to $5.9 million for the three months ending March 31, 2015. This compares to revenues of $7.2 million in the same period last year.
The Corporation believes Adjusted EBITDA2 is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Pro forma Adjusted EBITDA for the three months ending March 31, 2015, was ($554,000) compared to Adjusted EBITDA of $808,000 in the same period last year.
| Pro Forma Selected Financial Information For the three months ended March 31, in thousands ofdollars |
2015 | 2014 | |||
| Pro Forma Revenue | $5,869 | $7,182 | |||
| Pro Forma Cost of Sales | $1,407 | $1,329 | |||
| Pro Forma Expenses | $6,206 | $6,586 | |||
| Pro Forma Net Loss | ($1,744 | ) | ($698 | ) | |
| Pro Forma Adjusted EBITDA | ($554 | ) | $808 | ||
| For the three months ended March 31, in thousands of dollars | 2015 | 2014 | |||
| Pro Forma IFRS Net Loss | ($1,744 | ) | $(698 | ) | |
| Finance income, net | (41 | ) | (38 | ) | |
| Pro Forma Depreciation and amortization | 698 | 447 | |||
| Stock-based compensation | 258 | 1,094 | |||
| Transaction related expenses | 257 | – | |||
| Income tax expense | 18 | 3 | |||
| Pro Forma Adjusted EBITDA | ($554 | ) | $ 808 | ||
IFRS Performance
In the three months ended March 31, 2015, consolidated revenue was $5 million, this compares to revenues of $7.2 million in the same period last year, which represents a decrease of 30 percent or $2.1 million.
The net loss for the three months ending March 31, 2015, was $1.9 million and represents a basic and fully diluted loss per share of $(0.01). This compares to net loss of $698,000 in the same period last year, representing a basic and fully diluted loss per share of ($0.01). The Corporation has a cash balance of $5.2 million as at March 31, 2015.
Selected Financial Information
| For the three months ended March 31, in thousands of dollars | 2015 | 2014 | |||
| Revenue | $5,047 | $7,182 | |||
| Cost of Sales | $1,319 | $1,329 | |||
| Expenses | $5,679 | $6,586 | |||
| Net Loss | ($1,928 | ) | ($698 | ) | |
| Adjusted EBITDA | ($877 | ) | $808 | ||
| Loss per share3 | ($0.01 | ) | ($0.00 | ) | |
| As at March 31, 2015, and December 31, 2014, in thousands of dollars | 2015 | 2014 | |||
| Cash and cash equivalents | $5,162 | $12,612 | |||
| Total Assets | $34,783 | $35,532 | |||
| Total long term liabilities | $409 | $409 | |||
Non-IFRS Reconciliation
Adjusted EBITDA for the three months ending March 31, 2015, was ($877,000) compared to Adjusted EBITDA of $808,000 in the same period last year.
| For the three months ended March 31, in thousands of dollars | 2015 | 2014 | |||
| IFRS Net Loss | ($1,928 | ) | $(698 | ) | |
| Finance income, net | (41 | ) | (38 | ) | |
| Depreciation and amortization | 559 | 447 | |||
| Stock-based compensation | 258 | 1,094 | |||
| Transaction related expenses | 257 | – | |||
| Income tax expense | 18 | 3 | |||
| Adjusted EBITDA | ($877 | ) | $ 808 | ||
The Corporation will host a conference call Friday, May 29, 2015, at 10 a.m. ET to provide a business update and review financial results for the first quarter of 2015. The conference call will be webcast. All interested parties are welcome to join the live webcast, which can be accessed athttp://www.gowebcasting.com/6550. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4919 for international participants.
As previously announced, the Corporation is holding their Annual and Special Meeting of shareholders Wednesday, June 10, 2015, at 12 p.m. ET. The meeting will be held at the TMX Broadcast Centre — The Exchange Tower — 130 King Street West Toronto, Ontario, for shareholders, investors and guests.
Symbility is pleased to announce that it has engaged Investor Cubed Inc. to provide investor relations and shareholder communications services, subject to TSX Venture Exchange approval. Investor Cubed will be focused on increasing investor awareness while introducing Symbility to its network of investment advisors, investment dealers, institutions and other financial professionals. In connection with the engagement, Investor Cubed has been awarded a consulting contract paying $5,000 for a term of one month, at which time further activities will be considered.
1 Pro Forma is assuming that the previously announced acquisition of customer contracts from The Innovation Group (LSE: TIG) that was completed March 31, 2015, had occurred January 1, 2015.
2 Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. Adjusted EBITDA should not be considered in isolation or as a substitute for net earnings (loss) prepared in accordance with IFRS as issued by IASB. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.
3 In Canadian dollars, rounded to the nearest cent.
About Investor Cubed Inc.
Investor Cubed provides specialized consulting services to a select group of leading emerging and mid-capitalization companies, with an objective of taking our clients to the next level. Investor Cubed assists these companies in gaining exposure to an established national network of financial industry professionals. This broad network includes investment advisors, bank owned investment dealers and leading independent financial firms. In addition, Investor Cubed provides traditional investor relations services including tailored national marketing and communications strategies.www.investor3.ca
About Symbility Solutions Inc.
Symbility® Solutions® (TSX VENTURE: SY) is a global provider of cloud-based and smartphone/tablet-enabled claims technology for the property and health insurance industries. Designed to be flexible and easy-to-use, Symbility Solutions’ two product suites, Symbility Property™ and Symbility Health™, empower insurers to collaborate across the entire claims processing workflow and reduce costs while delivering a market-leading claims experience. For more information, please visit www.symbilitysolutions.com or follow Symbility on Twitter at @symbility and on LinkedIn at symbility-solutions.
Caution Regarding Forward-Looking Information
This press release may contain forward-looking statements with respect to the Corporation, its products and operations and the contemplated financing. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of the Corporation discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations, and the factors described under “Risk Factors” in the Management’s Discussion and Analysis and Annual Information Form of the Corporation which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Corporation and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Corporation has no obligation to update such statements.
This press release should be read in conjunction with Corporation’s consolidated financial statements and related notes, and management’s discussion and analysis for the quarter ending March 31, 2015, copies of which can be found at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All trade names are the property of their respective owners.
Symbility Solutions Inc.
Interim Consolidated Statements of Financial Position
(Unaudited — In thousands of Canadian dollars)
| As at | ||||
| March 31, 2015 | December 31,2014 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 5,162 | 12,612 | ||
| Accounts receivable and other assets | 5,311 | 4,879 | ||
| Prepaid expenses and other assets | 685 | 704 | ||
| Tax receivables | 995 | 895 | ||
| 12,153 | 19,090 | |||
| Long-term assets | ||||
| Prepaid expenses | 29 | 34 | ||
| Security deposits | 55 | 56 | ||
| Property and equipment | 767 | 747 | ||
| Intangible assets | 13,889 | 8,657 | ||
| Goodwill | 7,890 | 6,948 | ||
| 34,783 | 35,532 | |||
| Liabilities | ||||
| Current Liabilities | ||||
| Accounts payable and accrued liabilities | 5,983 | 5,136 | ||
| Deferred revenue | 2,180 | 2,135 | ||
| 8,163 | 7,271 | |||
| Long-term liabilities | ||||
| Accrued liabilities and others | 64 | 64 | ||
| Customer deposits | 345 | 345 | ||
| 8,572 | 7,680 | |||
| Shareholders’ equity | 26,211 | 27,852 | ||
| 34,783 | 35,532 | |||
Symbility Solutions Inc.
Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited — In thousands of Canadian dollars, except per share data)
| Three-month period ended March 31 | ||||||
| 2015 | 2014 | |||||
| Revenue | 5,047 | 7,182 | ||||
| Cost of sales | 1,319 | 1,329 | ||||
| 3,728 | 5,853 | |||||
| Expenses | ||||||
| Sales and marketing | 2,480 | 3,138 | ||||
| General and administration | 1,716 | 1,946 | ||||
| Research and development | 1,106 | 1,785 | ||||
| Transaction related | 257 | – | ||||
| Other operating (income) | 120 | (283 | ) | |||
| 5,679 | 6,586 | |||||
| Loss before finance costs (income), net and income tax expense | (1,951 | ) | (733 | ) | ||
| Finance income, net | (41 | ) | (38 | ) | ||
| Income tax expense | 18 | 3 | ||||
| Net loss and comprehensive loss for the period | (1,928 | ) | (698 | ) | ||
| Basic and diluted loss and comprehensive lossper common share | (0.01 | ) | (0.00 | ) | ||
| Weighted average numberof common shares outstanding | ||||||
| Basic and Diluted | 210,054,511 | 205,731,893 | ||||