TORONTO, ONTARIO–(Marketwire – May 30, 2008) – Automated Benefits Corp. (the “Corporation”) (TSX VENTURE:AUT) today reported results and selected financial metrics for the quarter ending March 31, 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 March 31, 2008, copies of which can be found at www.sedar.com.
Revenues for the three months ending March 31, 2008 increased to approximately $860,000. This compares to revenues of approximately $762,000 for the same period last year. This represents an increase of approximately $98,000 or 13%.
The net loss for the three month period ending March 31, 2008 was approximately $(696,000) and represents a basic and fully diluted loss per share of $.01. This compares to a loss of approximately $(1,318,000) during the same period last year representing a basic and fully diluted loss per share of $.01. This represents an improvement of approximately $622,000 or 47%. Quarter over quarter net loss decreased by approximately 21% from $(876,000) in the quarter ending December 31, 2007.
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 March 31, 2008 was approximately $(499,000) compared to approximately $(1,087,000) for the quarter ending March 31, 2007. This represents an improvement of $588,000 or 54%.
James Swayze, president and chief executive officer of Automated Benefits Corp., states, “I am pleased that we continue to see an increase in high margin revenue streams while benefitting from a much lower cost base to the extent the net loss has been cut in half from the previous year. When combined with the new market opportunities provided by our new value-added reseller arrangement with Innovation Group, we believe we are well-positioned for future growth.”
The Corporation reports the following recent developments:
– On April 23, 2008, Symbility established a strategic partnership with The Innovation Group plc (Innovation Group) for international expansion of its Symbility mobile claims platform. Initial implementation will occur this summer in the United Kingdom with additional European countries to follow shortly thereafter and further global expansion in 2009. Innovation Group, headquartered in the United Kingdom, will become both a user and exclusive value added reseller of Symbility’s mobile claims software solution outside of North America.
– On April 29, 2008, Autoben announced that a contractual agreement had been reached with Direct Marketing Centre Inc. (DMC) who will use Autoben’s proprietary software for the administration and adjudication of medical and dental benefits for their group insurance clients. DMC administers a variety of services ranging from traditional insurance plans to non-insurance complimentary programs, working as a third party administrator (TPA).
– On May 27, 2008, Symbility announced the addition of its 9,000th user of its mobile claims processing solution. Along with this achievement comes the added distinction of having over 800 companies now registered as users of the Symbility software solution. Having recently celebrated record growth with the acquisition of its 8,000th user in January, this accomplishment marks a 12% growth rate in software usage in only four months.
– On May 30, 2008, the Corporation converted 2,375,357 preferred Series A shares previously issued to certain shareholders of the Corporation into 2,375,357 common shares pursuant to the conversion terms of these preferred Series A shares. Following this conversion there are now 3,786,882 preferred shares outstanding. For more information on the conversion terms, please refer to management’s discussion and analysis of financial condition and results of operations for the three month period ending March 31, 2008.
Chief Financial Officer and Chief Operating Officer Richard Adair states, “We now have an efficient consolidated infrastructure in North America and the ability to leverage the resources of a strong international partner to support future profitable growth.”
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.