TORONTO, ONTARIO — (May 18, 2017) Symbility Solutions Inc. (“Symbility” or the “Company”) (TSX.V: SY), a global software company focused on modernizing the insurance industry, today announced financial results for the first quarter ending March 31, 2017.
“We are very pleased with our growth in 2017 thus far, as we have now achieved a new high in revenue for the fourth consecutive quarter,” said James Swayze, Chief Executive Officer of Symbility Solutions. “With 18 percent year-over-year growth, we are on plan for the year and can confidently reiterate our management guidance of $40 – $42 million in revenue expected in fiscal year 2017. This revenue growth is outpacing our expenses revealing our planned operating leverage which gives us equal confidence in our $2 – $3 million expected Adjusted EBITDA1 as per guidance.”
Mr. Swayze continued, “The greatest amount of growth we have experienced thus far is to our sales pipeline. After years of watching and waiting, it appears that the insurance industry is finally embracing Fintech and Insuretech solutions to streamline their business operations. Having built a reputation through testimonials from multinational insurance companies, Symbility is considered an established player with leading-edge development capabilities and a secure platform, which few other firms can boast. With the addition of Artificial Intelligence to our product stack and the ability to leverage a billion data points in our cloud, we have enhanced our profile in multiple markets which is growing our pipeline of opportunities.”
FIRST QUARTER FINANCIAL RESULTS
- Consolidated revenue for the first quarter of 2017 was $9.3 million compared to $7.9 million in the same period in 2016, an increase of 18 percent.
- The Company reported an Adjusted EBITDA of ($363,000) in Q1 2017 compared to an Adjusted EBITDA of ($553,000) in Q1 2016.
- The Company had a loss per share2 of ($0.00) in the first quarter of 2017 compared to a loss per share of ($0.01) in the first quarter of 2016.
- The Company had a cash balance of $7.9 million at March 31, 2017 compared to a cash balance of $8.0 million at December 31, 2016.
- Net loss for the first quarter of 2017 was ($1.1) million compared to ($1.52) million in the same period in 2016, a decrease in loss of 25 percent.
Selected Financial Information
| in thousands of dollars | three months ended March 31, | ||
| 2017 | 2016 | ||
| Revenue | $9,335 | $7,911 | |
| Cost of Sales | $2,982 | $2,276 | |
| Expenses | $7,476 | $7,155 | |
| Net Loss | ($1,134) | ($1,521) | |
| Adjusted EBITDA1 | ($363) | ($553) | |
| Loss per share2 | ($0.00) | ($0.01) | |
| As at March 31, 2017, and December 31, 2016, in thousands of dollars | 2017 | 2016 |
| Cash and cash equivalents | $7,942 | $7,976 |
| Total Assets | $38,794 | $38,021 |
| Total long term liabilities | $395 | $396 |
| in thousands of dollars | three months ended March 31, | |||
| 2017 | 2016 | |||
| IFRS Net Loss | ($1,134) | ($1,521) | ||
| Finance income, net | (4) | (6) | ||
| Depreciation and amortization | 608 | 694 | ||
| Stock-based compensation | 152 | 273 | ||
| Transaction Related Expense | – | – | ||
| Income tax expense | 15 | 7 | ||
| Adjusted EBITDA | ($363) | ($553) | ||
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.
Investor Conference Call
Symbility will host a live webcast and conference call today, Thursday, May 18, 2017, at 11 a.m. EDT to review highlights of its quarterly results. All interested parties are welcome to join the live webcast, which can be accessed at http://event.on24.com/r.htm?e=1407832&s=1&k=0A521A7CED5217F3B1DCDC7F5D52A5BA. Participants may also join the conference call by dialing toll free (888) 231-8191 or (647) 427-7450 for international participants. A replay of the webcast will be available on Symbility’s website.
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, 2017, 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| 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 |
Babak Pedram Investor Relations (416) 644-5081 bpedram@nullvirtusadvisory.com |
Symbility Solutions Inc.
Consolidated Statements of Financial Position
(Unaudited- In thousands of Canadian dollars)
| As At | ||
| March 31, 2017 | December 31, 2016 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 7,942 | 7,976 |
| Accounts receivable | 8,067 | 6,488 |
| Prepaid expenses | 1,211 | 1,217 |
| Tax credits receivables | 482 | 745 |
| Long-term assets | 17,702 | 16,426 |
| Prepaid expenses | 78 | 33 |
| Security deposits | 114 | 114 |
| Property and equipment | 605 | 626 |
| Intangible assets | 9,532 | 10,059 |
| Goodwill | 10,763 | 10,763 |
| 38,794 | 38,021 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable | 1,478 | 2,288 |
| Accrued liabilities | 5,090 | 4,025 |
| Provisions | 870 | 845 |
| Deferred revenue | 3,290 | 1,836 |
| Long-term liabilities | 10,728 | 8,994 |
| Accrued liabilities and others | 13 | 14 |
| Customer deposits | 382 | 382 |
| 11,123 | 9,390 | |
| Shareholders’ equity | 27,671 | 28,631 |
| 38,794 | 38,021 | |
Symbility Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
(Unaudited – In thousands of Canadian dollars, except per share data)
| Three-month period ended March, 31 | ||
| 2017 | 2016 | |
| Revenue | ||
| Software and other | 7,249 | 6,859 |
| Professional services | 2,086 | 1,052 |
| Total revenue | 9,335 | 7,911 |
| Cost of sales | ||
| Software and other | 1,616 | 1,515 |
| Professional services | 1,366 | 761 |
| Total cost of sales | 2,982 | 2,276 |
| Gross profit | 6,353 | 5,635 |
| Expenses | ||
| Sales and marketing | 3,775 | 3,578 |
| General and administration | 2,448 | 2,006 |
| Research and development | 1,133 | 905 |
| Depreciation, amortization, and foreign exchange | 120 | 666 |
| 7,476 | 7,155 | |
| Loss before finance income, net and income tax expense | (1,123) | (1,520) |
| Finance income, net | (4) | (6) |
| Income tax expense | 15 | 7 |
| Net loss and comprehensive loss for the period | (1,134) | (1,521) |
| Basic and diluted loss and comprehensive loss per common share | (0.00) | (0.01) |
| Weighted average number of common shares outstanding Basic & Diluted |
238,921,896 | 237,541,342 |