TORONTO, ONTARIO — (March 29, 2018) 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 fourth quarter and fiscal year ending December 31, 2017.
“2017 was a very positive year for Symbility as we continued to solidify our position in the P&C Insurance market globally,” said James Swayze, Chief Executive Officer of Symbility Solutions. “We added new insurance companies to our Property platform in North America, Europe and Asia; launched our Health mobile benefits app with multiple providers; and saw a 50 percent increase to our app development with our Services team as customers looked to advance their mobile offerings. Furthermore, we approached the high end of our revenue guidance while exceeding our Adjusted EBITDA1 guidance as our model yielded higher leverage on the heels of a strong second half of the year.”
Mr. Swayze continued, “Looking ahead to 2018, we remain committed to driving shareholder value as our markets seek improved customer experience through mobile tools that provide greater engagement and transparency for policyholders. Our ability to quickly integrate partner applications and datasets enables us to scale our business and drive customer efficiencies with only nominal incremental cost. Symbility is perfectly positioned to capitalize on the Insurtech momentum with our suite of applications which will drive expanded EBITDA margins into the future.”
FOURTH QUARTER FINANCIAL RESULTS
- Consolidated revenue for the fourth quarter of 2017 ended December 31, 2017 was $11.3 million compared to $9.0 million in the same period in 2016, an increase of 26 percent. Consolidated revenue for the twelve months ended December 31, 2017 was $41.8 million compared to $34.3 million in the same period in 2016, an increase of 22 percent.
- Net income for the fourth quarter of 2017 was $1.4 million compared to a net loss of ($0.6) million for the same period in 2016. Net loss for the twelve months ended December 31, 2017 was ($96,000) compared to a net loss of ($3.4) million for the same period in 2016.
- The Company had income per share2 of $0.01 in the fourth quarter of 2017 compared to a loss per share of ($0.00) in the fourth quarter of 2016. The Company had a loss per share of ($0.00) for the twelve months ended December 31, 2017 compared to a loss per share of ($0.01) in the same period in 2016.
- The Company reported Adjusted EBITDA of $2.1 million in fourth quarter of 2017 compared to an Adjusted EBITDA of $66,000 in the fourth quarter of 2016, an increase of 3,092 percent. Adjusted EBITDA for the twelve months ended December 31, 2017 was $3.7 million compared to Adjusted EBITDA of $62,000 for the same period in 2016.
- The Company had a cash balance of $8.2 million as at December 31, 2017 compared to a cash balance of $8.0 million as at December 31, 2016.
SELECTED FINANCIAL INFORMATION
| in thousands of dollars | three months ended December 31, | twelve months ended December 31, | ||
| 2017 | 2016 | 2017 | 2016 | |
| Revenue | $11,349 | $9,026 | $41,754 | $34,295 |
| Cost of Sales | $2,626 | $3,245 | $12,124 | $11,203 |
| Expenses | $7,352 | $6,386 | $29,704 | $26,445 |
| Net Income (Loss) | $1,357 | ($597) | ($96) | ($3,366) |
| Adjusted EBITDA1 | $2,075 | $65 | $3,709 | $62 |
| Income (Loss) per share2 | $0.01 | ($0.00) | ($0.00) | ($0.01) |
| As at December 31, 2017, and December 31, 2016, in thousands of dollars | 2017 | 2016 |
| Cash and cash equivalents | $8,238 | $7,976 |
| Total Assets | $37,971 | $38,021 |
| Total long term liabilities | $389 | $396 |
| three months ended December 31, | twelve months ended December 31, | |||
| 2017 | 2016 | 2017 | 2016 | |
| IFRS Net Income (Loss) | $1,357 | ($597) | ($96) | ($3,366) |
| Finance income, net | 4 | (2) | (8) | (18) |
| Depreciation and amortization | 449 | 624 | 2,008 | 2,674 |
| Stock-based compensation | 197 | 46 | 803 | 741 |
| Transaction Related Expense | 58 | 0 | 972 | 0 |
| Income tax expense | 10 | (6) | 30 | 31 |
| Adjusted EBITDA1 | $2,075 | $65 | $3,709 | $62 |
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, March 29, 2018, at 11 a.m. Eastern Time to discuss these results. All interested parties are welcome to join the live webcast, which can be accessed at https://event.on24.com/wcc/r/1640148/3080D95B9A248F9C9ABD7BE2567BD1CF. 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. 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 Company, 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 Company 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 Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company 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 Company has no obligation to update such statements.
This press release should be read in conjunction with Company’s consolidated financial statements and related notes, and management’s discussion and analysis for the year ending December 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 Chairman & Chief Executive Officer (647) 775- 8603 jswayze@nullsymbilitysolutions.com |
Blair R. Baxter Chief Financial Officer (647) 775-8608 bbaxter@nullsymbilitysolutions.com |
| Lucy De Oliveira VP, Global Marketing (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)
| December 31, 2017 | December 31, 2016 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 8,238 | 7,976 |
| Accounts receivable | 7,651 | 6,488 |
| Prepaid expenses | 1,614 | 1,217 |
| Tax credits receivables | 665 | 745 |
| 18,168 | 16,426 | |
| Long-term assets | ||
| Prepaid expenses | 54 | 33 |
| Security deposits | 115 | 114 |
| Property and equipment | 502 | 626 |
| Intangible assets | 8,369 | 10,059 |
| Goodwill | 10,763 | 10,763 |
| 37,971 | 38,021 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable | 1,786 | 2,288 |
| Accrued liabilities | 4,079 | 4,025 |
| Provisions | 220 | 845 |
| Deferred revenue | 2,121 | 1,836 |
| Long-term liabilities | 8,206 | 8,994 |
| Accrued liabilities and others | 7 | 14 |
| Customer deposits | 382 | 382 |
| 8,595 | 9,390 | |
| Shareholders’ equity | 29,376 | 28,631 |
| 37,971 | 38,021 | |
Symbility Solutions Inc.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Unaudited – In thousands of Canadian dollars, except per share data
| three-month period ended December 31, | twelve-month period ended December 31, | |||
| 2017 | 2016 | 2017 | 2016 | |
| Revenue | ||||
| Software and other | 8,360 | 7,149 | 32,029 | 28,153 |
| Professional services | 2,989 | 1,877 | 9,725 | 6,142 |
| Total Revenue | 11,349 | 9,026 | 41,754 | 34,295 |
| Cost of sales | ||||
| Software and other | 1,224 | 2,145 | 6,541 | 7,413 |
| Professional services | 1,402 | 1,100 | 5,583 | 3,790 |
| Total cost of sales | 2,626 | 3,245 | 12,124 | 11,203 |
| Gross Profit | 8,723 | 5,781 | 29,630 | 23,092 |
| Expenses | ||||
| Sales and Marketing | 3,821 | 3,243 | 14,477 | 13,520 |
| General and administration | 2,434 | 1,737 | 9,490 | 8,122 |
| Research and development | 1,013 | 1,267 | 4,354 | 3,943 |
| Depreciation, amortization, and foreign exchange | 26 | 139 | 411 | 860 |
| Transaction | 58 | – | 972 | – |
| 7,352 | 6,386 | 29,704 | 26,445 | |
| Income (loss) before finance income, net and income tax expense | 1,371 | (605) | (74) | (3,353) |
| Finance income, net | 4 | (2) | (8) | (18) |
| Income tax expense | 10 | (6) | 30 | 31 |
| Net income (loss) and comprehensive income (loss) for the period | 1,357 | (597) | (96) | (3,366) |
| Basic net income (loss) and comprehensive income (loss) per common share | 0.01 | (0.00) | (0.00) | (0.01) |
| Diluted net income (loss) and comprehensive income (loss) per common share | 0.01 | (0.00) | (0.00) | (0.01) |
| Weighted average number of common shares outstanding | ||||
| Basic | 239,473,840 | 238,718,715 | 239,216,822 | 238,143,851 |
| Diluted | 247,768,144 | 238,718,715 | 239,216,822 | 238,143,851 |