TORONTO, ONTARIO–(January 2, 2014) – Symbility Solutions Inc.® (the “Company”), (TSX VENTURE:SY)(OTCQX:ATBEF), a provider of cloud-based and smartphone/tablet-enabled claims technology using the most comprehensive data for the property and casualty insurance industry, today announced that its largest US-based customer has renewed their contract for an additional 12 months to December 31, 2014. The renewal will result in $8.5 US million of revenue to Symbility during 2014. Under the terms of the renewal the fee is payable in advance, giving Symbility a cash position following payment in early 2014 of approximately $20 million, or $0.10 per share. During the course of 2014, the customer intends to transition off the Symbility platform in order to utilize a combined platform for both its underwriting and claims divisions and, as a result, the contract will not be renewed after 2014. Symbility’s approximate revenue from this customer was $1.8 million, $5.2 million and (estimated) $5.8 million in 2011, 2012 and 2013, respectively.
The Company estimates that it will achieve revenue in 2014 in the range of $28 to $29 million and Adjusted EBITDA(1) in the range of $3.0 to $4.0 million. The Company provided updated revenue guidance in November for 2013 of between $21 and $22 million.
“Symbility has more qualified new customer opportunities in its pipeline than ever before and we are confident that we will earn multiple new contracts in a number of countries around the world in 2014,” stated James Swayze, CEO, Symbility Solutions. “Outside the United States, Symbility has achieved first mover advantage in new markets such as Europe, where until recently insurance carriers had relied upon their internal systems to process property claims. Our international insurance carrier customers include the top four carriers in the United Kingdom and three leading carriers in each of Germany and South Africa. In 2013, we generated approximately one-third of our revenue outside of the United States.”
Swayze added, “In the US, we believe that a trend will develop whereby insurance carriers will increasingly select a common underwriting and claims platform which will ultimately serve us well considering the market leading position of Marshall Swift/Boeckh (“MSB”), our database supplier, is the number one provider of software and data to the insurance industry for P&C underwriting business.”
Tony Reisz, CEO, Decision Insight Information Group (MSB’s parent company) and our largest shareholder (29%) added, “MSB is committed to working even more closely with Symbility in 2014 to strategically engage our deep base of insurance carrier clients who use our data, analytics and software which, we believe in combination with Symbility, is the most powerful set of claims and underwriting assets in the property insurance industry.”
Forward-looking Information.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements represent the Company’s best judgment based on information currently available. Actual results are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict and, as a result, the actual results may differ materially from those expressed or implied in the forward-looking statements. Symbility Solutions Inc. will not update these forward-looking statements to reflect events or circumstances after the date hereof. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Symbility Solutions Inc.
About Symbility Solutions Inc.
Symbility Solutions® (TSX VENTURE:SY)(OTCQX:ATBEF) 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 (http://twitter.com/symbility) and on LinkedIn at symbility-solutions (http://www.linkedin.com/company/symbility-solutions).
| (1) | Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in other general & administration expense 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. |
This press release should be read in conjunction with Corporation’s interim condensed consolidated financial statements and related notes, and management’s discussion and analysis for the quarter ending September 30, 2013, copies of which can be found at www.sedar.com.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Symbility Solutions Inc. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Symbility Solutions Inc.
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