Net Loss Improved 37%
The net loss for the three month period ending March 31, 2009 decreased by 37% to approximately $439,000 and represents a basic and fully diluted loss per share of $0.00. This compares to a loss of approximately $696,000 during the same period last year representing a basic and fully diluted loss per share of $0.01 and an improvement of approximately $257,000.
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, 2009 was ($375,000), an improvement of 25%, or $122,000, over adjusted EBITDA of ($497,000) for the prior year.
“Management is very pleased with a 28% increase in revenue from the same period last year, especially during an economic downturn and a time of year which is typically slow from a claims perspective,” states James R. Swayze, chief executive officer of Automated Benefits Corp.
Symbility Solutions Inc. and Automated Benefits Inc. report the following recent business developments:
- On April 1, 2009, Symbility Solutions Inc. announced the signing of a three-year contract with Promutuel Lanaudiere, which provides insurance and financial services to Quebec-based insured customers.
- On April 7, 2009, Automated Benefits Inc. announced that it had formalized a contract with Platinum Health Benefits Solutions of Mississauga, Ontario. Platinum Health Benefits Solutions provides self- insured and administrative services for drugs, extended health, dental and disability benefits.
- On April 14, 2009, Automated Benefits Inc. announced that it had formalized a contract with GroupHEALTH Global Partners of White Rock, British Columbia. GroupHEALTH Global Partners provides group benefit consulting and systems administration to companies across Canada.
- On April 28, 2009, Automated Benefits Inc. released version 3.1 of its proprietary health and dental claims adjudication software, Adjudicare. Version 3.1 offers enhanced batch cheque options, the ability for Automated Benefits Inc. to handle all client drug card production internally, the application and management of survivor benefits status and the ability to set coverage dates and status at the dependent level.
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.
All trade names are the property of their respective owners.
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 March 31, 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.
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