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Symbility Solutions Reports Record Revenue of $4.9 Million in Q3 2012
Year Over Year Quarterly Revenue Doubles, Adjusted EBITDA Triples
By: Marketwired .
Nov. 16, 2012 08:00 AM
TORONTO, ONTARIO -- (Marketwire) -- 11/16/12 -- Symbility Solutions Inc.® (the "Corporation") (TSX VENTURE:SY), a leading provider of cloud-based claims technology for the insurance industry, today reported that revenue increased to approximately $4.9 million for the three months ending September 30, 2012, up 144% from $2.0 million in the comparable period in 2011.
Net loss for the three months ending September 30, 2012 was $159,000 or ($0.00) per share on a basic and fully diluted basis. This compares to a net income of approximately $88,000 in the same period last year or earnings per share of $0.00 on a basic and fully diluted basis.
At September 30, 2012, the Corporation held $2.7 million in cash and cash equivalents (net of debt of $112,000 owed on a capital lease).
Adjusted EBITDA for the three months ending September 30, 2012 was $469,000 compared to Adjusted EBITDA of $146,000 in the same period last year. The Corporation believes Adjusted EBITDA(1) is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because it helps investors more meaningfully evaluate and compare the results of our operations from period to period, by removing the impact of our asset base (primarily depreciation and amortization), transaction related expenses and actions that do not affect liquidity (stock-based compensation expense and non-cash impairments) from our operating results.
"This quarter was primarily focused on the MSB integration and resource strengthening to build scale into our operations. While the effort is ongoing, we have effectively absorbed the staff, systems, contracts and offices of the MSB claims division and are operating as one fluid entity already," states James Swayze, Chief Executive Officer, Symbility Solutions Inc. "We are very proud of the fact that we have added two additional offices and more than doubled our staff over the last two quarters, and still managed to post an EBITDA three times higher than the same period last year. We now have a solid foundation in our infrastructure from which to rapidly grow our top and bottom line into next year and beyond."
The Corporations' operating subsidiaries, Symbility Solutions Ltd. ("Symbility®") and Automated Benefits Inc.®
("Adjudicare®") report the following recent business developments:
-- On July 25, 2012, Symbility announced it had signed a multi-year agreement with Shelter Insurance® group of companies, a leader in the insurance industry, providing customers with exceptional insurance and financial products and services since 1946. On September 26, 2012, Symbility announced that Farmers Alliance Companies, who has specialized in providing personal, commercial, and farm insurance for rural America for more than a century, also signed a multi-year agreement to integrate the Symbility platform into its operations. In addition, on October 15, 2012, Symbility announced that Mountain West Farm Bureau Mutual Insurance Company, a multi-line insurance organization, serving the needs of individuals, families, and businesses throughout Wyoming and Montana, had also signed a multi- year agreement to integrate Symbility into its operations. Shelter Insurance, Farmers Alliance, and Mountain West Farm Bureau were previous IntegriClaim customers. -- September 20, 2012, the Corporation announced that its shareholders had approved changing the name of the Corporation to Symbility Solutions Inc. Since September 24, 2012, our stock symbol has been TSX-V:SY and our corporate website is now www.symbilitysolutions.com. On October 4, 2012, Symbility announced its plans to expand the sales Leadership team with the addition of John Burega, as the company's Senior Vice President, Global Sales & Marketing and the promotion of Jeff Brinkman, to Vice President, US Sales. -- On October 29, 2012, Symbility announced that First Choice Repair, a national third party administrator, offering a Managed Repair Program through a network of credentialed contractors, had signed a multi-year agreement to integrate Symbility into its operations, in order to enhance third-party contractor productivity. On November 11, 2012, Symbility announced that Independent Mitigation and Cleaning/Conservation Network ('IMACC"), the largest network of independent restoration contractors in the United States, had also signed a multi-year agreement to integrate Symbility into its operations. Adjudicare -- On September 25, 2012, Adjudicare announced that it had signed a multi- year strategic partnership with Foresight Health Incorporated ("FHI"), a firm specializing in unique proprietary wellness solutions for Canadian businesses. Adjudicare will distribute FHI's Foresight Health Navigator, an on-line health risk appraisal system, to our national network of Third-Party Administrators and Brokers. -- On October 3, 2012, Adjudicare announced that it had celebrated its second annual Adjudicare Partner Summit. From September 24 - 27, a wide variety of Adjudicare partners and strategic vendors from across Canada gathered at the historic Fairmount Banff Springs Resort in Banff in Alberta. The conference offered participants the opportunity to hear from industry experts on a series of current hot topics that included; drug plan design and cost containment, practical workplace wellness solutions, and working with other industry participants such as Labour Unions and the Third Party Administrators Association of Canada (TPAAC). Our development team also announced new product updates, including online claims submission technology, designed to help them differentiate themselves in the ever-competitive Canadian group benefits industry. -- On October 17, 2012, Adjudicare announced that it had signed a multi- year agreement to integrate the Adjudicare platform into Assure Group Benefits. Founded in 2007, Assure provides flexible, cost-effective and comprehensive employee benefit packages to various groups in the greater Vancouver area.
(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, 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 earnings (loss) prepared in accordance with IFRS. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.
About Symbility Solutions Inc.
Symbility Solutions (TSX VENTURE:SY) is a progressive software company dedicated to developing applications for the insurance industry. The organization currently has two product family brands: Symbility® and Adjudicare®.
The Symbility platform is a cutting-edge, easy-to-use, cloud-based claims processing and estimating technology that optimizes claims performance for the Property & Casualty insurance industry. Relying on the most extensive and defendable property cost data developed by Marshall & Swift/Boeckh ("MSB"), our collaborative workflow management, mobile estimating, claims triage solutions and analytical services allow insurers to reduce costs while delivering a market-leading claims experience. Symbility Claims solutions, used in conjunction with MSB's Underwriting Solutions, means property insurers now have a dynamic, market-driven enterprise solution. Providing a virtual feedback loop between claims and underwriting systems, this enterprise solution allows insurers to manage property risks more proactively and effectively.
Adjudicare is an advanced, practical web-based software solution used by a network of Employee Benefits Brokers and Third-Party Administrator partners across Canada in the adjudication of health and dental claims. Adjudicare's rules-based engine and leading-edge features ensure that claims are precisely adjudicated and paid in real-time, giving our partners' customers optimum flexibility, along with transparent disclosure on the benefit plan's financial performance.
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 September 30, 2012, copies of which can be found at 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.
All trade names are the property of their respective owners.
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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