TORONTO, ONTARIO–(Marketwire – Nov. 30, 2009) – Automated Benefits Corp. (the “Corporation”) (TSX VENTURE:AUT) today reports revenue of $3,252,000 for the nine months ending September 30, 2009. This represents an increase of $361,000 or 12.5% over revenue for the same period last year.
Adjusted EBITDA for the nine months ending September 30, 2009 is ($875,000), a decline of $116,000 or 15% over the Adjusted EBITDA from the same period last year. Adjusted EBITDA is defined as earnings before: interest income and expense; income taxes; depreciation; amortization; and adjustments for any other one-time gains or losses including stock based compensation, restructuring costs, and impairment charges.
Net loss for the nine months ending September 30, 2009 is $1,540,000 ($0.01 per fully diluted share) compared to a loss of $1,209,000 ($0.01 per fully diluted share) during the same period last year. This represents an increase of $331,000 or 27%. The majority of this decline results from a timing difference associated with the accrual of certain expenses as compared to the prior periods, and a one time expense for stock-based compensation related to an extension to the term of certain options.
“Over the past two years, the Corporation has been investing a significant amount of resources into its entry into the European market with The Innovation Group plc (“Innovation Group”). These efforts were rewarded with the signing of the contract with RSA Insurance Group plc (“RSA”) in the United Kingdom,” states James R. Swayze Chief Executive Officer of Automated Benefits. “The receipt of approximately $770,000 from Innovation Group at the beginning of the fourth quarter and a total contractual commitment of approximately $3,000,000 over the next five years puts the Corporation in a significantly improved financial position.”
The Corporation reported the following recent business developments:
- On July 23, 2009, the Corporation announced that RSA had adopted the Innovation Symbility mobile and desktop claims triage and scoping tool for use throughout the United Kingdom. The elements of this claims estimation and triage suite will aid RSA in streamlining their claims process to increase both productivity and profitability.
- On August 7, 2009, Automated Benefits Inc. released version 3.2 of its Adjudicare product, which includes features such as Electronic Funds Transfer, which enables clients to pay through direct deposits to both plan members and service providers.
- On August 17, 2009, the Corporation announced the adoption of Innovation Symbility by Ellipta Ltd. Ellipta will integrate the Innovation Symbility technology platform with their existing ‘ClaimSpec’ property damage product and provide insurers and loss adjustors with an accurate and streamlined way for end-to-end property claims management.
About Automated Benefits Corp.
Automated Benefits Corp., 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, based in Toronto, Ontario, automates property insurance claims through its two complementary components. Its award-winning mobile claims solution is an estimating tool that increases speed, efficiency and accuracy by allowing on-site claims processing. Symbility.NET is the collaborative workflow management tool that gives every claim participant real-time access to the claims they are working on. The Symbility solution gives users the mobility, speed and control they need to effectively and quickly move onto their next claim.
Automated Benefits Inc. provides the Adjudicare 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. Automated Benefits Inc. enables their clients to provide an additional level of value-added service in a very cost effective manner. The Adjudicare software supports the adjudication of health and dental claims through local insurance brokers across Canada.
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This press release should be read in conjunction with the Corporation’s interim consolidated financial statements and related notes and management’s discussion and analysis for the period ended September 30, 2009, 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. 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. All other financial measures referenced herein have been prepared in accordance with Canadian generally accepted accounting principles unless stated otherwise.
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.