TORONTO, ONTARIO–(August 15, 2014) Symbility Solutions Inc. (the “Corporation”), (TSX.V: SY) a global provider of cloud-based and smartphone/tablet-enabled claims technology for the property and casualty and health insurance industries, today reported that revenue increased to $7.1 million for the three months ending June 30, 2014. This compares to revenues of $6.0 million in the same period last year, which represents an increase of 17% or $1.1 million. This brings the six month revenue total to $14.2 million versus $11.0 million for the first half of last year, representing a 30% increase year to date.
The net loss for the three months ending June 30, 2014 was $101,000 and represents a basic and fully diluted loss per share of ($0.00). This compares to net loss of $334,000 in the same period last year, representing a basic and fully diluted loss per share of ($0.00). The Corporation has a cash balance of $16.1 million as at June 30, 2014.
The Corporation believes adjusted EBITDA1 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 June 30, 2014 was $610,000 compared to adjusted EBITDA of $635,000 in the same period last year.
“We are focused on expanding our reach in Europe, Asia Pacific and other parts of the world as well as offering new technology solutions to complement and enhance our existing array of products in the North American market. Along these lines, we have initiated several strategic partnerships which are generating new business opportunities that will help grow our customer base.” stated James Swayze, Chief Executive Officer, Symbility Solutions Inc.
Selected Financial Information
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| Revenue | $ | 7,066 | $ | 6,019 | $ | 14,248 | $ | 10,994 | ||||
| Cost of Sales | $ | 1,229 | $ | 1,107 | $ | 2,559 | $ | 2,104 | ||||
| Expenses | $ | 5,978 | $ | 5,275 | $ | 12,564 | $ | 11,254 | ||||
| Net Loss | $ | (101 | ) | $ | (334 | ) | $ | (799 | ) | $ | (2,306 | ) |
| Adjusted EBITDA | $ | 610 | $ | 635 | $ | 1,417 | $ | 434 | ||||
| Loss per share (1) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) |
| As at June 30, 2014 and December 31, 2013, in thousands of dollars | 2014 | 2013 | ||
| Cash and cash equivalents | $ | 16,109 | $ | 12,173 |
| Total Assets | $ | 37,531 | $ | 33,613 |
| Total long term liabilities | $ | 347 | $ | 350 |
The Corporation has provided a reconciliation of adjusted EBITDA to IFRS net loss in the following table:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| IFRS Net Loss | $ | (101 | ) | $ | (334 | ) | $ | (799 | ) | $ | (2,306 | ) |
| Finance income, net | (41 | ) | (29 | ) | (80 | ) | (61 | ) | ||||
| Depreciation and amortization | 471 | 407 | 918 | 782 | ||||||||
| Stock-based compensation | 280 | 591 | 1,374 | 2,016 | ||||||||
| Income tax expense | 1 | – | 4 | 3 | ||||||||
| Adjusted EBITDA | $ | 610 | $ | 635 | $ | 1,417 | $ | 434 | ||||
| 1 | Adjusted EBITDA is defined 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. 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 income (loss) prepared in accordance with IFRS as issued by the IASB. |
| 2 | In Canadian dollars, rounded to the nearest cent. |
About Symbility Solutions Inc.
Symbility Solutions® (TSX.V: SY) 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 and on LinkedIn at symbility-solutions.
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 period ending June 30, 2014, copies of which can be found at http://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.
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.
All trade names are the property of their respective owners.
| Symbility Solutions Inc. |
| Interim Consolidated Statements of Financial Position |
| (Unaudited – In thousands of Canadian dollars) |
| As at | ||||
| June 30, 2014 | December 31, 2013 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 16,109 | 12,173 | ||
| Accounts receivable and other assets | 4,301 | 4,153 | ||
| Prepaid expenses and other assets | 635 | 791 | ||
| 21,045 | 17,117 | |||
| Long-term assets | ||||
| Security deposits | 50 | 33 | ||
| Property and equipment | 883 | 675 | ||
| Intangible assets | 8,782 | 9,017 | ||
| Goodwill | 6,771 | 6,771 | ||
| 37,531 | 33,613 | |||
| Liabilities | ||||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 3,845 | 3,755 | ||
| Deferred revenue | 6,063 | 3,032 | ||
| 9,908 | 6,787 | |||
| Long-term liabilities | ||||
| Finance lease obligations | 2 | 5 | ||
| Customer deposits | 345 | 345 | ||
| 10,255 | 7,137 | |||
| Shareholders’ equity | 27,276 | 26,476 | ||
| 37,531 | 33,613 | |||
| 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 June 30 |
Six-month period ended June 30 |
||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||
| Revenue | 7,066 | 6,019 | 14,248 | 10,994 | |||||
| Cost of sales | 1,229 | 1,107 | 2,559 | 2,104 | |||||
| 5,837 | 4,912 | 11,689 | 8,890 | ||||||
| Expenses | |||||||||
| Sales and marketing | 2,478 | 2,401 | 5,615 | 5,135 | |||||
| General and administration | 1,703 | 1,794 | 3,649 | 3,989 | |||||
| Research and development | 1,526 | 1,026 | 3,311 | 2,013 | |||||
| Other operating (income) | 271 | 54 | (11 | ) | 117 | ||||
| 5,978 | 5,275 | 12,564 | 11,254 | ||||||
| Loss before finance income, net and income tax expense | (141 | ) | (363 | ) | (875 | ) | (2,364 | ) | |
| Finance income, net | (41 | ) | (29 | ) | (80 | ) | (61 | ) | |
| Income tax expense | 1 | – | 4 | 3 | |||||
| Net loss and comprehensive loss for the period | (101 | ) | (334 | ) | (799 | ) | (2,306 | ) | |
| Basic and diluted loss and comprehensive loss per common share | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |
| Weighted average number of common shares outstanding | |||||||||
| Basic and diluted | 209,061,193 | 205,070,400 | 207,405,740 | 204,523,466 | |||||