TORONTO, ONTARIO–(Marketwire – Aug. 27, 2008) – Automated Benefits Corp. (the “Corporation”) (TSX VENTURE:AUT) today reported results and selected financial metrics for the quarter ending June 30, 2008. This press release should be read in conjunction with Corporation’s interim consolidated financial statements and management’s discussion and analysis of financial condition and results of operations for the three month period ending June 30, 2008, copies of which can be found at www.sedar.com.
Revenues for the three months ending June 30, 2008 increased to approximately $986,000. This compares to revenues of approximately $909,000 for the same period last year. This represents an increase of approximately $77,000 or 8.5%.
The net loss for the three month period ending June 30, 2008 was approximately $(445,000) and represents a basic and fully diluted loss per share of $0.00. This compares to a loss of approximately $(1,104,000) during the same period last year representing a basic and fully diluted loss per share of $.01. This represents an improvement of approximately $659,000 or 60%. Quarter over quarter net loss decreased by approximately 36% from $(695,000) in the quarter ending March 31, 2008.
Management believes adjusted EBITDA is also a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring, impairment charges and other one-time gains and losses. Adjusted EBITDA for the three month period ending June 30, 2008 was approximately $(334,000) compared to approximately $(853,000) for the quarter ending June 30, 2007. This represents an improvement of $519,000 or 61%.
The Corporation reports the following recent developments:
– On June 4, 2008, Automated Benefits Inc. released version 2.17 of the Autoben software solution. This release includes several enhancements that offer a better user experience through easier navigation and better management over large volumes of claims. These upgrades include real time e-dental adjudication, new features enhancing the claims experience function, the ability to group employers by specific blocks, manual rejection or adjustment to the amount payable on a claim and the ability to save pre-determinations and weekly indemnity/short term disability claims within the software and recall them for adjudication at a later date.
– On June 11, 2008, Symbility announced the release of version 3.1 of its mobile claims software package. Version 3.1 of Symbility mobile claims offers value added enhancements to improve claims processing. These upgrades include new reports that allow users the ability to measure claim status, financial performance and Key Performance Indicators; enhanced user roles to identify multiple claims participants and their activities; a manual entry feature that provides an alternative to drawing a floor plan or roof plan diagram and the ability to perform automatic mathematical calculations in any numerical field.
– On July 22, 2008 Symbility announced a strategic alliance integrating e2Value’s web-based property Insurance-to-Value (ITV) calculation services to Symbility’s mobile claims estimation application. As the leading hosted application provider of online replacement cost valuations for residential, commercial and farm and ranch properties in the United States, e2Value offers a standard calculating platform that integrates easily with digital technologies for expedited information sharing and decision making among a company’s sales, underwriting and claims functions. With this leading edge partnership, both Symbility and e2Value customers now have the added advantage of completing their residential estimates, commercial estimates and ITV valuation at a claim site, increasing the efficiency of adjusters and valuators with reduced site visits and increased indemnity due to instant online valuations.
Chief Financial Officer and Chief Operating Officer Richard Adair stated, “We are now enjoying the benefits of our consolidation efforts over the past year.” He added, “We have been able to achieve these efficiencies while revenue continues to grow, resulting in a material improvement in the Corporation’s operating cash flow.”
About Automated Benefits Corp
Automated Benefits Corp. (www.autoben.com), headquartered in Toronto, Ontario, is a software company dedicated to developing applications for the insurance industry. The corporation currently has two subsidiaries, Automated Benefits Inc. and Symbility Solutions Inc.
Symbility Solutions Inc. is in the business of automating insurance claims. Its award-winning mobile claims solutions are designed to increase the speed and accuracy of damage claims processing by allowing claims adjusters, carriers, and restoration contractors to process claims on-site, resulting in increased customer satisfaction levels. Handwritten notes and post-inspection data entry are eliminated. Complete mobility provides the means to access key information on location and instantly settle claims up to three times faster and with greater accuracy, thereby reducing adjusting expenses and lowering indemnity.
Automated Benefits Inc. provides a software solution for the adjudication of health and dental claims. This software adjudicates claims in real time, providing clients with the highest level of flexibility available along with complete disclosure on the plan’s financial performance. Autoben enables their clients to provide an additional level of value-added service in a very cost effective manner.
All trade names are the property of their respective owners.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Automated Benefits Corp. 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 Automated Benefits Corp.
Adjusted EBITDA does not have any standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures presented by other companies. Adjusted EBITDA should not be considered in isolation of as a substitute for net earnings (loss) prepared in accordance with GAAP.
Automated Benefits Corp. is not aware of any uniform standards for calculating users, claims, or certificates and we believe that the Corporation’s presentation of these measures may not be calculated consistently with other companies in the same or similar business. Moreover, these measures are of operational performance and not measures of financial performance under generally accepted accounting principles. All other financial measures referenced herein have been prepared in accordance with Canadian generally accepted accounting principles unless stated otherwise.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.