Nine Month Revenue Increases 38%
TORONTO, ONTARIO–(Marketwired – Nov. 13, 2013) – Symbility Solutions Inc. (the “Corporation”), (TSX VENTURE:SY)(OTCQX:ATBEF), a global software company dedicated to developing cloud-based applications for the property and health insurance industries, today reported that revenue increased to $5.4 million for the three months ending September 30, 2013. This compares to revenues of $4.9 million in the same period last year, which represents an increase of 10%. This brings the nine month revenue total to $16.4 million versus $11.9 million for the same period last year, representing a 38% increase year to date.
The net loss for the three months ending September 30, 2013 was $1.0 million and represents a basic and fully diluted loss per share of ($0.01). This compares to net loss of $159,000 in the same period last year, representing a basic and fully diluted loss per share of $(0.00).
Adjusted EBITDA for the three months ending September 30, 2013 was ($112,000) compared to adjusted EBITDA of $471,000 in the same period last year. The Corporation believes Adjusted EBITDA(1) is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons.
Following an extensive evaluation and analysis of the existing client contracts and new opportunities the Corporation’s outlook for fiscal 2013 revenue is between $21 million and $22 million. The revised outlook also reflects the impact of an unusually calm storm season in the United States, which has reduced transaction volumes and revenue.
“Our focus this year has been primarily geared towards ramping up new users from the supply chain of restoration contractors, independent adjusters and other third-party vendors to build the foundational support for our growing pipeline of insurance companies,” commented James Swayze, CEO, Symbility Solutions Inc. “We expect the 12,000 new users we have added this year to significantly enhance our 2014 revenue as they reach full adoption in six to nine months. The Corporation has been increasingly modifying contract terms and proposals for its carrier customers to include minimum claim and revenue levels so as to reduce the variability of revenue due to weather and corresponding claims activity in the future.”
Selected Financial Information
| Three months ended Sept 30 | Nine months ended Sept 30 | |||||||||||
| (in thousands of dollars, except per share) | 2013 | 2012 | 2013 | 2012 | ||||||||
| Revenue | $ | 5,430 | $ | 4,934 | $ | 16,424 | $ | 11,881 | ||||
| Net Loss | $ | (1,032 | ) | $ | (159 | ) | $ | (3,339 | ) | $ | (2,632 | ) |
| Adjusted EBITDA(1) | $ | (112 | ) | $ | 471 | $ | 323 | $ | 677 | |||
| Loss per share (2) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.02 | ) |
| Three months ended Sept 30 | Nine months ended Sept 30 | |||||||||||
| (in thousands of dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||
| IFRS Net Loss | $ | (1,032 | ) | $ | (159 | ) | $ | (3,339 | ) | $ | (2,632 | ) |
| Finance and other income | (28 | ) | – | (89 | ) | 2 | ||||||
| Depreciation and amortization | 410 | 359 | 1,193 | 728 | ||||||||
| Stock-based compensation | 538 | 237 | 2,555 | 746 | ||||||||
| Transaction related expenses | – | 34 | – | 1,833 | ||||||||
| Income tax expense | – | – | 3 | – | ||||||||
| Adjusted EBITDA(1) | $ | (112 | ) | $ | 471 | $ | 323 | $ | 677 | |||
| As at Sept 30, 2013 and December 31, 2012, | ||||
| (in thousands of dollars) | 2013 | 2012 | ||
| Cash and cash equivalents | $ | 11,361 | $ | 15,008 |
| Total assets | $ | 34,585 | $ | 36,409 |
| Total long term liabilities | $ | 333 | $ | 459 |
| (1) | Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in other general & administration expense and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period -to-period operating comparisons. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. Adjusted EBITDA should not be considered in isolation or as a substitute for net earnings (loss) prepared in accordance with IFRS as issued by IASB. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise. |
| (2) | In Canadian dollars, rounded to the nearest cent. |
About Symbility Solutions Inc.
Symbility Solutions® (TSX VENTURE:SY)(OTCQX:ATBEF) is a global provider of cloud-based and smartphone/tablet-enabled claims technology for the property and health insurance industries. Designed to be flexible and easy-to-use, Symbility Solutions’ two product suites, Symbility Property™ and Symbility Health™, empower insurers to collaborate across the entire claims processing workflow and reduce costs while delivering a market-leading claims experience. For more information, please visit www.symbilitysolutions.com or follow Symbility on Twitter at@symbility and on LinkedIn at symbility-solutions.
This press release should be read in conjunction with Corporation’s interim condensed consolidated financial statements and related notes, and management’s discussion and analysis for the quarter ending September 30, 2013, copies of which can be found atwww.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. Symbility Solutions Inc. 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 Symbility Solutions Inc.
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.
All trade names are the property of their respective owners.
| Symbility Solutions Inc. | |||
| Interim Consolidated Statements of Financial Position | |||
| (Unaudited – In thousands of Canadian dollars) | |||
| As at | |||
| September 30, | December 31, | ||
| 2013 | 2012 | ||
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 11,361 | 15,008 | |
| Accounts receivable | 5,458 | 3,340 | |
| Loans receivable | – | 148 | |
| Prepaid expenses and other assets | 914 | 576 | |
| 17,733 | 19,072 | ||
| Security deposits | 33 | 19 | |
| Property and equipment | 698 | 399 | |
| Intangible assets | 9,350 | 10,148 | |
| Goodwill | 6,771 | 6,771 | |
| 34,585 | 36,409 | ||
| Liabilities | |||
| Current liabilities | |||
| Accounts payable and accrued liabilities | 3,206 | 3,902 | |
| Current portion of deferred revenue | 3,780 | 4,118 | |
| 6,986 | 8,020 | ||
| Long-term liabilities | |||
| Deferred revenue | – | 208 | |
| Finance lease obligations | 10 | 49 | |
| Customer deposits | 323 | 202 | |
| 7,319 | 8,479 | ||
| Shareholders’ equity | 27,266 | 27,930 | |
| 34,585 | 36,409 | ||
| Symbility Solutions Inc. | ||||||||||
| Interim Consolidated Statements of Loss and Comprehensive Loss | ||||||||||
| (Unaudited – In thousands of Canadian dollars except per share data) | ||||||||||
| Three-month period ended September 30, | Nine-month period ended September 30, | |||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||
| Revenue | 5,430 | 4,934 | 16,424 | 11,881 | ||||||
| Cost of sales | 1,028 | 964 | 3,094 | 2,233 | ||||||
| 4,402 | 3,970 | 13,330 | 9,648 | |||||||
| Expenses | ||||||||||
| Sales and marketing | 2,558 | 1,771 | 7,731 | 4,270 | ||||||
| Research and development | 1,113 | 612 | 3,181 | 1,807 | ||||||
| General and administration | 1,710 | 1,650 | 5,645 | 4,200 | ||||||
| Transaction related expenses | – | 34 | – | 1,833 | ||||||
| Other operating expenses | 81 | 62 | 198 | 168 | ||||||
| 5,462 | 4,129 | 16,755 | 12,278 | |||||||
| Loss before finance costs | ||||||||||
| (income), net and | ||||||||||
| income tax expense | (1,060 | ) | (159 | ) | (3,425 | ) | (2,630 | ) | ||
| Finance costs (income), net | (28 | ) | – | (89 | ) | 2 | ||||
| Current income tax expense | – | – | 3 | – | ||||||
| Net loss and | ||||||||||
| comprehensive loss for | ||||||||||
| the period | (1,032 | ) | (159 | ) | (3,339 | ) | (2,632 | ) | ||
| Basic and diluted loss and | ||||||||||
| comprehensive loss per | ||||||||||
| common share | (0.01 | ) | (0.00 | ) | (0.02 | ) | (0.02 | ) | ||
| Weighted average number | ||||||||||
| of common shares | ||||||||||
| outstanding | ||||||||||
| Basic and diluted | 205,153,725 | 180,573,533 | 204,735,861 | 157,270,055 | ||||||