TORONTO, ONTARIO — (Nov. 28, 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 third quarter ending September 30, 2018.
THIRD QUARTER FINANCIAL RESULTS
- Consolidated revenue for the third quarter of 2018 ended September 30, 2018 was $9.9 million compared to $9.8 million in the same period in 2017, an increase of one percent. Consolidated revenue for the nine months ended September 30, 2018 was $27.4 million compared to $25.8 million over the same period in 2017, an increase of seven percent.
- The Company reported Adjusted EBITDA1 from continuing operations of $1.4 million in third quarter of 2018 compared to an Adjusted EBITDA of $1.6 million in the third quarter of 2018, a decrease of 12 percent. Adjusted EBITDA for the nine months ended September 30, 2018 was $2.4 million compared to $1.6 million in the same period in 2017, an increase of 55 percent.
- The Company had income per share2 from continuing operations of $0.00 in the third quarter of 2018 compared to an income per share from continuing operations of $0.00 in the third quarter of 2017.
- The Company had a cash balance of $23.1 million as at September 30, 2018 compared to a cash balance of $8.2 million as at December 31, 2017.
- Net income and comprehensive income from continuing operations for the third quarter of 2018 was $861,000 compared to a net income of $562,000 for the same period in 2017. Net income (loss) and comprehensive income (loss) from continuing operations for the nine months ended September 30, 2018 was $390,000 compared to ($1.5) million over the same period in 2017.
- Net income from discontinued operations was $56,000 for the third quarter of 2018 compared to a net income of $18 in the third quarter of 2017. Net Income from discontinued operations for the nine months ended September 30, 2018 was $15.2 million compared to a net income of $8,000 for the nine months ended September 30, 2017.
SELECTED FINANCIAL INFORMATION
| in thousands of dollars | three months ended September 30 | nine months ended September 30, | ||
| Continuing Operations | 2018 | 2017 | 2018 | 2017 |
| Revenue | $9,924 | $9,908 | $27,438 | $25,751 |
| Cost of Sales | $2,538 | $2,664 | $6,979 | $7,401 |
| Expenses | $6,632 | $6,587 | $20,229 | $19,803 |
| Net Income (Loss) | $861 | $562 | $390 | ($1,461) |
| Adjusted EBITDA1 | $1,377 | $1,566 | $2,423 | $1,567 |
| Income (Loss) per share2 | $0.00 | $0.00 | $0.00 | ($0.01) |
| in thousands of dollars | three months ended September 30, | nine months ended September 30, | ||
| 2018 | 2017 | 2018 | 2017 | |
| Net Income (Loss) | $917 | $580 | $15,579 | ($1,453) |
| Income (Loss) per share2 | $0.00 | $0.00 | $0.06 | ($0.01) |
| As at September 30, 2018 and December 31, 2017 | 2018 | 2017 |
| Cash and cash equivalents | $23,132 | $8,238 |
| Total Assets | $53,722 | $37,971 |
| Total long term liabilities | $92 | $389 |
| three months ended September 30, | nine months ended September 30, | |||
| Reconciliation of Adjusted EBITA | 2018 | 2017 | 2018 | 2017 |
| IFRS Net Income (Loss) | $917 | $580 | $15,579 | ($1,453) |
| Discontinued operations | ($56) | ($18) | ($15,189) | ($8) |
| Finance income, net | (78) | (3) | (142) | (12) |
| Depreciation and amortization | 426 | 451 | 1,321 | 1,547 |
| Stock-based compensation | 53 | 172 | 379 | 559 |
| Transaction Expense | 144 | 386 | 493 | 914 |
| Income tax expense | (29) | (2) | (18) | 20 |
| Adjusted EBITDA1 (Continuing Operations) | $1,377 | $1,566 | $2,423 | $1,567 |
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. 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 quarter ending September 30, 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.
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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 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) |
||
| September 30, 2018 | December 31, 2017 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 23,132 | 8,238 |
| Accounts receivable | 6,324 | 7,651 |
| Prepaid expenses | 1,473 | 1,614 |
| Tax credits receivables | 768 | 665 |
| 31,697 | 18,168 | |
| Long-term assets | ||
| Restricted Cash Deposits | 3,400 | – |
| Prepaid expenses | 26 | 54 |
| Security deposits | 141 | 115 |
| Property and equipment | 497 | 502 |
| Intangible assets | 7,198 | 8,369 |
| Goodwill | 10,763 | 10,763 |
| 53,722 | 37,971 | |
| Liabilities | ||
| Current Liabilities | ||
| Accounts payable and accrued liabilities | 1,252 | 1,786 |
| Accrued liabilities | 3,072 | 4,079 |
| Provisions | 784 | 220 |
| Deferred revenue | 2,634 | 2,121 |
| 7,742 | 8,206 | |
| Long-term liabilities | ||
| Accrued liabilities and others | 92 | 7 |
| Customer deposits | – | 382 |
| 7,834 | 8,595 | |
| Shareholders’ equity | 45,888 | 29,376 |
| 53,722 | 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 September 30, | nine-month period ended September 30, | |||
| Continuing Operations | 2018 | 2017 | 2018 | 2017 |
| Revenue | ||||
| Software and other | 6,139 | 6,973 | 18,084 | 19,015 |
| Professional services | 3,785 | 2,835 | 9,354 | 6,736 |
| Total Revenue | 9,924 | 9,808 | 27,438 | 25,751 |
| Cost of sales | ||||
| Software and other | 793 | 1,303 | 2,461 | 3,220 |
| Professional services | 1,745 | 1,361 | 4,518 | 4,181 |
| Total cost of sales | 2,538 | 2,664 | 6,979 | 7,401 |
| Gross Profit | 7,386 | 7,144 | 20,459 | 18,350 |
| Expenses | ||||
| Sales and Marketing | 3,292 | 3,008 | 10,184 | 9,708 |
| General and administration | 2,176 | 2,302 | 6,750 | 6,544 |
| Research and development | 765 | 752 | 2,488 | 2,263 |
| Depreciation, amortization, and foreign exchange | 255 | 139 | 314 | 374 |
| Transaction | 144 | 386 | 493 | 914 |
| 6,632 | 6,587 | 20,229 | 19,803 | |
| Income (loss) before finance income, net and income tax expense | 754 | 557 | 230 | (1,453) |
| Finance income, net | (78) | (3) | (142) | (12) |
| Income (loss) Before Income Tax Expense | 832 | 560 | 372 | (1,441) |
| Income Tax Expense (recovery) | (29) | (2) | (18) | 20 |
| Net Income (loss) and comprehensive Income (loss) for the period from continuing operations | 861 | 562 | 390 | (1,461) |
| Discontinued Operations Net income for the period from discontinued operations | 56 | 18 | 15,189 | 8 |
| Net income (loss) and comprehensive income (loss) for the period | 917 | 580 | 15,579 | (1,453) |
| Basic and diluted income (loss) and comprehensive income (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 | 0.00 | 0.00 | 0.06 | (0.01) |
| Weighted average number of common shares outstanding | ||||
| Basic | 241,365,039 | 239,473,840 | 240,231,660 | 239,130,208 |
| Diluted | 251,921,606 | 247,870,944 | 249,352,340 | 239,130,208 |