TORONTO, ONTARIO–(Marketwire – April 28, 2008) –
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Automated Benefits Corp. (the “Corporation”) (TSX VENTURE:AUT) today reported results and selected financial metrics for the fiscal year ending December 31, 2007. This press release should be read in conjunction with the Corporation’s audited consolidated financial statements and management’s discussion and analysis of financial condition and results of operation for the fiscal year ending December 31, 2007, copies of which can be found at www.sedar.com.
Revenues for the twelve month period ending December 31, 2007 increased to approximately $3,231,000. This compares to revenues of approximately $2,447,000 for the same period last year. This represents an increase of approximately $784,000 or 32%.
The net loss for the twelve month period ending December 31, 2007 was approximately $(4,020,000) and represents a basic and fully diluted loss per share of $.04. This compares to a loss of approximately $(6,643,000) during the same period last year representing a basic and fully diluted loss per share of $.08 and a decrease of approximately 39%.
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 losses and gains. Adjusted EBITDA for the twelve month period ending December 31, 2007 was approximately $(3,342,000) compared to approximately $(5,735,000) for the same period last year, representing a decrease of approximately 42%.
The number of Symbility Solutions Inc. (“Symbility”) customers using mobile claims™ has grown from 5,000 users as of December 31, 2006 to 8,000 users as of December 31, 2007, representing an increase of 60%. As of December 31, 2007, Automated Benefits Inc. (“Autoben”) had 35,000 certificates on its Autoben software system compared to 27,000 certificates as of December 31, 2006, representing an increase of 30%.
Automated Benefits Corp. President and Chief Executive Officer James R. Swayze commented, “We are pleased to see our Symbility and Autoben subsidiaries continue to gain share in their respective markets.” He added, “This is generating significant improvements to our cash flow and creates very positive momentum for 2008.”
The Corporation reports the following recent developments:
– On December 19, 2007, Autoben announced that it signed a new contract with Sirius Benefit Plans, a third party administrator (TPA), who will use the Autoben software for the administration and adjudication of medical and dental benefits for their group insurance clients.
– On February 25, 2008, Autoben released version 2.16 of the Autoben software solution. This release gives the Autoben software equivalent functionality to large insurance companies by allowing clients to manage larger volumes of business using the software.
– On March 17, 2008, Symbility announced the extension of their existing contract with Farmers Mutual of Nebraska for an additional five year period. This extension confirms that Symbility’s clients are benefiting from our product and are committed to the technology.
– On March 20, 2008, Autoben announced a partnership with Unison Benefits. Autoben streamlined its offerings, exiting all business lines not directly related to the functionality and support of their proprietary software. Automated Benefits had offered a full range of administrative functions, including the resale of insured products, but will now focus exclusively on providing health and dental claims administration software to their client base.
– On March 25, 2008, Symbility announced that Schafer, Wood & Associates signed a two year contract for the use of Symbility’s mobile claims solution. Schafer, Woods & Associates is a full service adjusting company that provides independent adjusters to the insurance industry during catastrophic events.
– On March 27, 2008, Symbility announced the integration of its mobile claims software with Enservio. The two companies jointly developed this solution to serve adjusters on the claim site, allowing them to quickly and efficiently manage contents claims valuations.
– On March 31, 2008, Symbility announced the release of version 3.0 of its mobile claims software package. Version 3.0 includes a number of value added elements including the integration of a commercial database with other advancements focused primarily on pen-based features and usability, allowing Symbility users to streamline their property claims processing even further.
– On April 24, 2008, Symbility announced a strategic partnership with Innovation Group for expansion of the Symbility mobile claims platform. Initial implementation will occur this summer in the United Kingdom with additional European countries to follow shortly thereafter. Product demonstrations to Innovation Group operations in South Africa and Australia have initiated plans for further global expansion in 2009. Innovation Group, headquartered in the UK, will become both a user and exclusive value added reseller of Symbility’s mobile claims software solution outside of North America.
The consolidation of Autoben’s Edmonton office and Symbility’s Kitchener office into the Corporation’s head office in Toronto has successfully been completed.
Richard Adair, Chief Financial Officer and Chief Operating Officer of Automated Benefits Corp. states “With the completion of the consolidation of our offices and certain support functions, we believe that we have now “right-sized” the business.” He added, “We now have growing revenues and a platform where we can add new customers profitably while continuing to support their needs.”
About Automated Benefits Corp., Automated Benefits Inc. and Symbility Solutions Inc.
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. The Autoben software supports the adjudication of health and dental claims through local insurance brokers for over 35,000 employees across Canada.
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.
Forward Looking Statements
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
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.
Key Performance Indicators and Other Measures
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.