TORONTO, ONTARIO — (May 19, 2016) Symbility Solutions Inc., (the “Corporation”), (TSX.V: SY), a global software company focused on modernizing the insurance industry, today announced financial results for the first quarter ended March 31, 2016.
FIRST QUARTER FINANCIAL RESULTS
- Consolidated revenue for the first quarter of fiscal 2016 was $7.9 million, an increase of $2.9 million, or 57 percent, from $5.0 million reported in the same period last year.
- The net loss for the first quarter of fiscal 2016 was $1.5 million and represents basic and fully diluted earnings per share of ($0.01), a decrease from the net loss of $1.9 million in the same period last year and represents basic and fully diluted earnings per share of ($0.01).
- The Corporation has a cash balance of $6.4 million and no debt as at March 31, 2016.
- The Corporation has working capital, excluding deferred revenue, of $10.8 million as at March 31, 2016.
- Adjusted EBITDA1 for the three months ending March 31, 2016, was ($553,000), an improvement from Adjusted EBITDA of ($877,000) million in the same period last year. Included in the Adjusted EBITDA of ($553,000) in the current quarter are expenses of $501,000 related to changes in foreign exchange.
MANAGEMENT COMMENT
“Revenue for Q1 represents the strongest first quarter in our history and sets the stage for Symbility to meet or exceed our guidance of $33M in 2016,” commented James Swayze, Symbility’s chief executive officer. “The operational changes we implemented plus the new products we launched last year, have accelerated our deal closure and deployment cycle-time which give us a great deal of confidence in our growth toward the end of this year and into 2017.”
SELECTED FINANCIAL INFORMATION
| For the three months ended March 31, in thousands of dollars | 2016 | 2015 |
| Revenue | $7,911 | $5,047 |
| Cost of Sales | $2,276 | $1,319 |
| Expenses | $7,155 | $5,679 |
| Net Loss | ($1,521) | ($1,928) |
| Adjusted EBITDA | ($553) | ($877) |
| Loss per share2 | ($0.01) | ($0.01) |
| As at March 31, 2016, and December 31, 2015, in thousands of dollars | 2016 | 2015 |
| Cash and cash equivalents | $6,380 | $6,553 |
| Total Assets | $39,241 | $39,155 |
| Total long term liabilities | $366 | $354 |
| For the three months ended March 31, in thousands of dollars | 2016 | 2015 |
| IFRS Net Loss | ($1,521) | ($1,928) |
| Finance income, net | ($6) | (41) |
| Depreciation and amortization | $694 | 559 |
| Stock-based compensation | $273 | 258 |
| Transaction related expenses | $0 | 257 |
| Income tax expense | $7 | 18 |
| Adjusted EBITDA | ($553) | ($877) |
INVESTOR CONFERENCE CALL
Symbility will host a live webcast and conference call this morning, Thursday, May 19, 2016, at 11 a.m. ET to discuss these results. All interested parties are welcome to join the live webcast, which can be accessed at www.gowebcasting.com/7489. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4919 for international participants. A replay of the webcast will be available on Symbility’s website.
ANNUAL GENERAL MEETING
As previously announced, the Corporation is also pleased to announce that they will be holding their Annual and Special Meeting of shareholders Wednesday, June 22, 2016, at 12 p.m. ET. The meeting will be held at the TMX Broadcast Centre – The Exchange Tower – 130 King Street West Toronto, ON M5X 1J2, 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, and other non-recurring gains or losses including transaction costs related to acquisition and restructuring cost. 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.
2 In Canadian dollars, rounded to the nearest cent.
ABOUT SYMBILITY
Symbility® (TSX.V: SY) believes in creating world-class experiences that simplify business and improve lives. With a history in modernizing insurance claims solutions for the property and health industries, Symbility has established itself as a partner that puts security, efficiency and customer experience first. Symbility PROPERTY™ brings smarter thinking to property insurance. Symbility HEALTH™ helps benefits professionals build their brands and businesses. Our strategic services team, Symbility INTERSECT™ empowers a variety of businesses with smarter mobile and IoT product development strategy, design thinking and engineering excellence. With our three segments pushing industries forward, Symbility proves that change for the better is entirely possible. symbilitysolutions.com
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, 2016, 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.
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All trade names are the property of their respective owners.
MEDIA CONTACTS
| James R. Swayze Chief Executive Officer (647) 775- 8603 jswayze@nullsymbilitysolutions.com |
Blair R. Baxter Chief Financial Officer (647) 775-8608 bbaxter@nullsymbilitysolutions.com |
Lucy De Oliveira Global Marketing Director (647) 775-8607 ldeoliveira@nullsymbilitysolutions.com |
Symbility Solutions Inc.
Interim Consolidated Statements of Financial Position
(Unaudited – In thousands of Canadian dollars)
| As At | ||
| March 31, 2016 | December 31, 2015 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 6,380 | 6,553 |
| Accounts receivable | 7,980 | 7,127 |
| Prepaid expenses | 965 | 1,101 |
| Tax credits receivables | 917 | 849 |
| 16,242 | 15,630 | |
| Long-term assets | ||
| Prepaid expenses | 53 | 19 |
| Security deposits | 123 | 123 |
| Property and equipment | 666 | 691 |
| Intangible assets | 11,394 | 11,929 |
| Goodwill | 10,763 | 10,763 |
| 39,241 | 39,155 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable and accrued liabilities | 5,463 | 4,949 |
| Deferred revenue | 3,510 | 2,702 |
| 8,973 | 7,651 | |
| Long-term liabilities | ||
| Accrued liabilities and others | 20 | 8 |
| Customer deposits | 346 | 346 |
| 9,339 | 8,005 | |
| Shareholders’ equity | 29,902 | 31,150 |
| 39,241 | 39,155 |
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 |
||
| 2016 | 2015 | |
| Revenue | ||
| Software and other | 6,859 | 5,047 |
| Professional services | 1,052 | – |
| Total Revenue | 7,911 | 5,047 |
| Cost of sales | ||
| Software and other | 1,515 | 1,319 |
| Professional services | 761 | – |
| Total cost of sales | 2,276 | 1,319 |
| Gross Profit | 5,635 | 3,728 |
| Expenses | ||
| Sales and Marketing | 3,578 | 2,480 |
| General and administration | 2,006 | 1,716 |
| Research and development | 905 | 1,106 |
| Depreciation, amortization, and foreign exchange | 666 | 120 |
| Transaction and restructuring | – | 257 |
| 7,155 | 5,679 | |
| Loss before finance costs (income), net and income tax expense | ||
| (1,520) | (1,951) | |
| Finance income, net | (6) | (41) |
| Income tax expense | 7 | 18 |
| Net loss and comprehensive loss for the period | (1,521) | (1,928) |
| Basic and diluted loss and comprehensive loss per common share | (0.01) | (0.01) |
| Weighted average number of common shares outstanding | ||
| Basic and Diluted | 237,541,342 | 210,054,511 |