TORONTO, ONTARIO–(May 15, 2013) – Symbility Solutions Inc. (the “Corporation”), (TSX VENTURE:SY)(OTCQX:ATBEF), a global software company dedicated to developing applications for the insurance industry, today reported that revenue increased to $4.974 million for the three months ending March 31, 2013. This compares to revenues of $2.361 million in the same period last year, which represents an increase of 111% or $2.613 million.
The net loss for the three months ending March 31, 2013 was $1.972 million and represents a basic and fully diluted loss per share of $(0.01). This compares to net loss of $1.155 million in the same period last year, representing a basic and fully diluted earnings per share of $(0.01).
The Corporation believes adjusted EBITDA(1) is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Adjusted EBITDA for the three months ending March 31, 2013 was $(200,000) compared to adjusted EBITDA of $(70,000) in the same period last year.
“Our products have been gaining a great deal of traction in property insurance claims markets globally,” states James Swayze, Chief Executive Officer, Symbility Solutions Inc. “We continue to invest extensively in our sales and marketing resources in multiple markets to capitalize on our current momentum and we are confident in our ability to scale operations to meet demand.”
The Corporation has announced a number of events recently which include:
- On April 26, 2013, Symbility announced that a major UK Insurer, which can now be confirmed as the Aviva Group plc., signed a contract to integrate Symbility’s claims management software and mobile scoping tool into its organization through its European partner, The Innovation Group plc. (LSE:TIG). The contract will run for a period of seven years and be charged on a transactional basis. This will generate revenues of approximately CA$1,500,000 annually to The Innovation Group with Symbility sharing in the value of this contract under its reseller agreement.
- On May 1, 2013, Symbility announced that Winmar Franchise Corp., a property restoration company with over 85 offices across Canada, signed a multi-year agreement to integrate Symbility into its operations. Winmar will implement Symbility’s Claims Connect(R), a property and casualty claims workflow management solution that will streamline the claims estimating process by reducing cycle time and increasing accuracy in all aspects of the claims handling process. Winmar will also use Symbility Mobile Claims(R), a smartphone and tablet-enabled field estimating solution in enhancing adjuster and third-party contractor productivity.
Selected Financial Information
| For the three months ended March 31, in thousands of dollars | 2013 | 2012 | ||||||
| Consolidated Revenue | $ | 4,974 | $ | 2,361 | ||||
| Net Loss | $ | (1,972 | ) | $ | (1,155 | ) | ||
| Loss per share (1) | $ | (0.01 | ) | $ | (0.01 | ) | ||
| As at March 31, 2013 and December 31, 2012, in thousands of dollars | 2013 | 2012 | ||||||
| Cash and cash equivalents | $ | 13,020 | $ | 15,008 | ||||
| Total Assets | $ | 34,613 | $ | 36,409 | ||||
| Total long term liabilities | $ | 468 | $ | 459 | ||||
The Corporation has provided a reconciliation of adjusted EBITDA to IFRS net loss in the following table:
| For the three months ended March 31, in thousands of dollars | 2013 | 2012 | ||||||
| IFRS Net Loss | $ | (1,972 | ) | $ | (1,155 | ) | ||
| Finance and other income | (32 | ) | 1 | |||||
| Depreciation and amortization | 375 | 26 | ||||||
| Stock-based compensation | 1,426 | 146 | ||||||
| Transaction related expenses | – | 912 | ||||||
| Income tax expense | 3 | – | ||||||
| Adjusted EBITDA | $ | (200 | ) | $ | (70 | ) | ||
As previously announced, the Corporation is holding their Annual and Special Meeting of shareholders today at 12:00 PM. The meeting is located at Malaparte, TIFF Bell Lightbox, 6th Floor, 350 King Street West, Toronto, Ontario, for shareholders, investors and guests.
[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, 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. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.
About Symbility Solutions Inc.
Symbility Solutions (TSX VENTURE:SY)(OTCQX:ATBEF) is a global software company dedicated to developing applications for the insurance industry. The organization currently has two product family brands: Symbility® and Adjudicare®. The Symbility platform is a leading-edge, easy-to-use, cloud-based claims processing and estimating technology that optimizes claims performance for the Property & Casualty insurance industry. Relying on the most extensive and defendable property cost data developed by Marshall & Swift/Boeckh (“MSB”), our collaborative workflow management, mobile estimating, claims triage solutions and analytical services allow insurers to reduce costs while delivering a market-leading claims experience. Symbility Claims solutions, used in conjunction with MSB’s Underwriting Solutions, means property insurers now have a dynamic, market-driven enterprise solution. Providing a virtual feedback loop between claims and underwriting systems, this enterprise solution allows insurers to manage property risks more proactively and effectively. Symbility Mobile Claims is now available as a freeAndroid™, iPad® and iPhone® application.
Adjudicare is an advanced, practical cloud-based software solution used by a network of Employee Benefits Brokers, Third-Party Administrator partners, plan members and plan sponsors across Canada in the adjudication of health and dental claims. Adjudicare’s rules-based engine and leading-edge features ensure that claims are precisely adjudicated and paid in real-time, giving our partners’ customers optimum flexibility, along with transparent disclosure on the benefit plan’s financial performance. Member and administrator portals, as well as Adjudicare’s centralized database, are all-available on the same cloud-based platform and can be accessed seamlessly anytime by any user. Adjudicare UnionPro is the only web-based Hour Banking product to provide unions a worry-free solution to track their members’ hour banking, benefit plan eligibility, and contribution data.
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 March 31, 2013, copies of which can be found atwww.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.
All trade names are the property of their respective owners.
| Symbility Solutions Inc. |
| Interim Condensed Consolidated Statements of Financial Position |
| (Unaudited – In thousands of Canadian dollars) |
| As at | |||||
| March 31, | December 31, | ||||
| 2013 | 2012 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | 13,020 | 15,008 | |||
| Accounts receivable and other | 3,624 | 3,340 | |||
| Loans receivable | 146 | 148 | |||
| Prepaid expenses and other assets | 682 | 576 | |||
| 17,472 | 19,072 | ||||
| Security deposits | 19 | 19 | |||
| Property and equipment | 518 | 399 | |||
| Intangible assets | 9,833 | 10,148 | |||
| Goodwill | 6,771 | 6,771 | |||
| 34,613 | 36,409 | ||||
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 3,366 | 3,884 | |||
| Other current liabilities | 33 | 18 | |||
| Current portion of deferred revenue | 3,305 | 4,118 | |||
| 6,704 | 8,020 | ||||
| Long-term liabilities | |||||
| Deferred revenue | 109 | 208 | |||
| Finance lease obligations | 36 | 49 | |||
| Customer deposits | 323 | 202 | |||
| 7,172 | 8,479 | ||||
| Shareholders’ equity | 27,441 | 27,930 | |||
| 34,613 | 36,409 | ||||
| Symbility Solutions Inc. |
| Interim Condensed Consolidated Statements of Loss and Comprehensive Loss |
| (Unaudited – In thousands of Canadian dollars, except per share data) |
| Three-month period ended March 31, |
||||
| 2013 | 2012 | |||
| Revenue | 4,974 | 2,361 | ||
| Cost of sales | 997 | 371 | ||
| 3,977 | 1,990 | |||
| Expenses | ||||
| General and administration | 2,168 | 1,004 | ||
| Research and development | 1,013 | 488 | ||
| Sales and marketing | 2,735 | 689 | ||
| Transaction related expenses | – | 912 | ||
| Other operating expenses | 62 | 51 | ||
| 5,978 | 3,144 | |||
| Loss before finance costs (income), net and income tax expense | (2,001) | (1,154) | ||
| Finance costs (income), net | (32) | 1 | ||
| Current income tax expense | 3 | – | ||
| Net loss and comprehensive loss for the period | (1,972) | (1,155) | ||
| Basic and diluted loss and comprehensive loss per common share | (0.01) | (0.01) | ||
| Weighted average number of common shares outstanding | ||||
| Basic and diluted | 203,970,455 | 118,457,278 | ||
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.