TORONTO, ONTARIO — (Aug. 24, 2018) Symbility Solutions Inc. (“Symbility”or the “Company”) (TSX.V: SY), a global software company focused on modernizing the insurance industry, announced financial results for the second quarter ending June 30, 2018. “The first half of 2018 saw global economic losses from natural disasters down 64 percent from the 10-year average1, resulting in the lowest claims volumes in five years2. Although Symbility achieved 10 percent revenue growth over the first half of 2018, the steep decline in weather severity has impacted our property division’s revenue.” said James Swayze, CEO of Symbility. “Most encouraging over the first half is that the number of contract signings in our Property segment increased 148 percent in 2018 as compared to 2017. The combination of contract signings, pipeline expansion, new product launches and the strength of our strategic services allows us to reiterate our revenue guidance of $40 million for 2018 and feel very confident about continued, strong growth in the coming years.”
SECOND QUARTER FINANCIAL RESULTS
- Consolidated revenue for the second quarter of 2018 ended June 30, 2018, was 9.0 million compared to $8.2 million in the same period in 2017, an increase of 9 percent. Consolidated revenue for the six months ended June 30, 2018, was $17.5 million compared to $15.9 million over the same period in 2017, an increase of 10 percent.
- The Company reported Adjusted EBITDA3 of $0.2 million in second quarter of 2018 compared to an Adjusted EBITDA of $0.4 million in the second quarter of 2017, a decrease of 40 percent. Adjusted EBITDA for the six months ended June 30, 2018, was $1.1 million compared to $2.0 thousand in the same period in 2017.
- The Company had loss per share from continuing operations4 of ($0.00) in the second quarter of 2018 compared to a loss per share from continuing operations of ($0.00) in the second quarter of 2017.
- The Company had a cash balance of $22.1 million as at June 30, 2018, compared to a cash balance of $8.2 million as at Dec. 31, 2017.
- Net loss and comprehensive loss from continuing operations for the second quarter of 2018 was ($0.6) million compared to a net loss of ($0.9) million for the same period in 2017. Net loss and comprehensive loss from continuing operations for the six months ended June 30, 2018, was ($0.5) million compared to ($2.0) million over the same period in 2017.
- Net income was $14.5 million for the second quarter of 2018 compared to a loss of ($0.9) million in the second quarter of 2017. Net Income for the six months ended June 30, 2018, was $14.7 million compared to a loss of ($2.0) million for the six months ended June 30, 2017.
SELECTED FINANCIAL INFORMATION
| in thousands of dollars | three months ended June 30 | six months ended June 30, | ||
| Continuing Operations | 2018 | 2017 | 2018 | 2017 |
| Revenue | $8,962 | $8,205 | $17,514 | $15,943 |
| Cost of Sales | $2,320 | $2,415 | $4,441 | $4,737 |
| Expenses | $7,257 | $6,681 | $13,597 | $13,216 |
| Net Loss | ($571) | ($893) | ($471) | ($2,023) |
| Adjusted EBITDA3 | $224 | $371 | $1,052 | $2 |
| Loss per share4 | ($0.00) | ($0.00) | ($0.00) | ($0.01) |
| in thousands of dollars | three months ended June 30 | six months ended June 30, | ||
| 2018 | 2017 | 2018 | 2017 | |
| Net Income (loss) | $14,487 | ($899) | $14,662 | ($2,033) |
| Income (loss) per share2 | $0.06 | ($0.00) | $0.06 | ($0.01) |
| As at | June 30, 2018 | Dec. 31, 2017 |
| Cash and cash equivalents | $22,076 | $8,238 |
| Total Assets | $52,258 | $37,971 |
| Total long term liabilities | $107 | $389 |
| three months ended June 30, | six months ended June 30, | |||
| Reconciliation of Adjusted EBITDA | 2018 | 2017 | 2018 | 2017 |
| IFRS Net Income (Loss) | $14,487 | ($899) | $14,662 | ($2,033) |
| Discontinued operations | ($15,058) | $6 | ($15,133) | 10 |
| Finance income, net | (47) | (5) | (64) | (9) |
| Depreciation and amortization | 448 | 493 | 901 | 1,097 |
| Stock-based compensation | 167 | 241 | 326 | 387 |
| Transaction Expense | 224 | 528 | 349 | 528 |
| Income tax expense | 3 | 7 | 11 | 22 |
| Adjusted EBITDA (Continuing Operations)1 | $224 | $371 | $1,052 | $2 |
- “Global Catastrophe Recap: First Half of 2018”, Aon Benfield, July 2018, pg3.
- “P&C industry combined ratio for Q1 2018 lowest in past 5 years”, PropertyCasualty360, May 24, 2018, https://www.propertycasualty360.com/2018/05/24/pc-industry-combined-ratio-for-q1-2018-lowest-in-p.
- 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 Canadian dollars, rounded to the nearest cent.
INVESTOR CONFERENCE CALL
Symbility will host a live webcast and conference call Aug. 24, 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/1804244/EA67DE9BCE2A92180ADB9C25BEB468B6. 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 & casualty industry, Symbility has established itself as a partner that puts security, efficiency and customer experience first. Symbility PROPERTY™ brings smarter thinking to property insurance. Our strategic services team, Symbility INTERSECT™ empowers a variety of businesses with smarter mobile and IoT product development strategy, design thinking and engineering excellence. We push industries forward and prove 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 quarter ending June30, 2018, 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.
###
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 VP, Global Marketing (647) 775-8607 ldeoliveira@nullsymbilitysolutions.com |
Babak Pedram Investor Relations (416)644-5081 bpedram@nullvirtusadvisory.com |
Symbility Solutions Inc.
Interim Consolidated Statements of Financial Position
(Unaudited – In thousands of Canadian dollars)
| June 30, 2018 | Dec. 31, 2017 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 22,076 | 8,238 |
| Accounts receivable | 5,868 | 7,651 |
| Prepaid expenses | 1,258 | 1,614 |
| Tax credits receivables | 678 | 665 |
| 29,880 | 18,168 | |
| Long-term assets | ||
| Restricted cash deposits | 4,225 | |
| Prepaid expenses | 35 | 54 |
| Security deposits | 118 | 115 |
| Property and equipment | 417 | 502 |
| Intangible assets | 7,570 | 8,369 |
| Goodwill | 10,763 | 10,763 |
| 53,008 | 37,971 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable | 995 | 1,786 |
| Accrued liabilities | 2,973 | 4,079 |
| Provisions | 904 | 220 |
| Deferred revenue | 3,255 | 2,121 |
| 8,127 | 8,206 | |
| Long-term liabilities | ||
| Accrued liabilities and others | 107 | 7 |
| Customer deposits | – | 382 |
| 8,234 | 8,595 | |
| Shareholders’ equity | 44,774 | 29,376 |
| 53,008 | 37,971 | |
Symbility Solutions Inc.
Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Unaudited – In thousands of Canadian dollars, except per share data
| three-month period ended June 30, | six-month period ended June 30, | |||
| 2018 | 2017 | 2018 | 2017 | |
| Continuing Operations | ||||
| Revenue | ||||
| Software and other | 6,426 | 6,390 | 11,945 | 12,042 |
| Professional services | 2,716 | 1,815 | 5,569 | 3,901 |
| Total Revenue | 8,962 | 8,205 | 17,514 | 15,943 |
| Cost of sales | ||||
| Software and other | 888 | 961 | 1,668 | 1,917 |
| Professional services | 1,432 | 1,454 | 2,773 | 2,820 |
| Total cost of sales | 2,320 | 2,415 | 4,441 | 4,737 |
| Gross Profit | 6,642 | 5,790 | 13,073 | 11,206 |
| Expenses | ||||
| Sales and Marketing | 3,648 | 3,203 | 6,892 | 6,700 |
| General and administration | 2,289 | 2,008 | 4,574 | 4,242 |
| Research and development | 929 | 822 | 1,723 | 1,510 |
| Depreciation, amortization, and foreign exchange | 167 | 120 | 59 | 236 |
| Transaction | 224 | 528 | 349 | 528 |
| 7,257 | 6,681 | 13,597 | 13,216 | |
| Loss before finance income, net and income tax expense | (615) | (891) | (524) | (2,010) |
| Finance income, net | (47) | (5) | (64) | (9) |
| Loss Before Income Tax Expense | (568) | (886) | (460) | (2,001) |
| Income Tax Expense | 3 | 7 | 11 | 22 |
| Net Loss and comprehensive loss for the period from continuing operations | (571) | (893) | (471) | (2,023) |
| Discontinued OperationsNet income (loss) for the period from discontinued operations | 15,058 | (6) | 15,133 | (10) |
| Net income (loss) and comprehensive income (loss)for the period | 14,487 | (899) | 14,662 | (2,033) |
| Basic and diluted loss and comprehensive loss per common share from continuing operations | (0.00) | (0.00) | (0.00) | (0.01) |
| Basic and diluted income (loss) and comprehensive income (loss) per common share | 0.06 | (0.00) | 0.06 | (0.01) |
| Weighted average number of common shares outstanding | ||||
| Basic | 239,835,319 | 238,988,822 | 239,655,578 | 238,955,544 |
| Diluted | 248,993,791 | 238,988,822 | 248,208,996 | 238,955,544 |