Automated Benefits Corp.
TSX VENTURE : AUT

Automated Benefits Corp.

November 25, 2008 08:00 ET

Automated Benefits Corp. Releases Q3 2008 Results

Revenues Up 35% and Net Loss Improved 91% vs. Q3 2007

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2008) - Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported results and selected financial metrics for the quarter ending September 30, 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 September 30, 2008, copies of which can be found at www.sedar.com.

Revenues for the three months ending September 30, 2008 increased to approximately $1,045,000. This compares to revenues of approximately $774,000 for the same period last year. This represents an increase of approximately $271,000 or 35%.

The net loss for the three month period ending September 30, 2008 was approximately $(68,000) and represents a basic and fully diluted loss per share of $0.00. This compares to a loss of approximately $(723,000) during the same period last year representing a basic and fully diluted loss per share of $.01. This represents an improvement of approximately $655,000 or 91%. Quarter over quarter net loss decreased by approximately 85% from $(445,000) in the quarter ending June 30, 2008.

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 September 30, 2008 was approximately $(52,000) compared to approximately $(609,000) for the quarter ending September 30, 2007. This represents an improvement of $557,000 or 91%.

Chief Financial Officer and Chief Operating Officer Richard Adair stated, "We now have a lean infrastructure that is "right-sized" to our current revenue levels and remain debt free." He added, "We believe that this is a scalable platform which will enable the Corporation to add profitable revenue from our sales pipeline and partners in the future."

The Corporation reports the following recent developments:

- On October 9, 2008, the Corporation's transfer agent, Olympia Transfer Services Inc., announced a notice of meeting on December 11, 2008 for the Annual and Special Meeting of security holders. The record date for notice and voting of common shares is November 6, 2008.

- On October 14, 2008, Symbility announced the release of version 3.2 of its mobile claims software package. The release of version 3.2 is the realization of adapting the mobile claims platform to the UK market and leveraging the intellectual property of the Innovation Group. It offers the following value added enhancements: the accommodation of pounds sterling as a currency; the ability to accept metric measurements as opposed to just imperial; the integration of a UK specific pricing database; and the creation of custom regulated engineering reports. The launch of mobile claims version 3.2 represents Symbility's first initiative to expand outside of the North American market. The product will immediately be adopted by the subsidence management services division of the Innovation Group. In addition to using the mobile claims application, the division will also assist in the sales process by showcasing mobile claims to other potential insurance carriers, independent adjusters and contractors throughout the United Kingdom and Europe.

- Effective October 17, 2008, Eric Embacher resigned from his role as a Director of the Corporation. Mr. Embacher will remain with the Corporation's wholly-owned subsidiary, Symbility Solutions, in a consulting role where he will focus on the development of new product lines and business opportunities.

- On October 21, 2008, Automated Benefits Inc., a wholly-owned subsidiary of the Corporation, announced the launch of its latest software product, Adjudicare. This release includes a newly designed software application, a new website, and a refreshed corporate look and feel. The Adjudicare application will offer new features to further enhance the customer experience including the new Management Console component which lets users create and manage multiple plan designs and setups; improved security settings; benefit plan effective dates that allow simple adjudication of claims under multiple benefit plans; and new reports that enable users to create customized benefit plan reports.

- On November 5, 2008, Symbility announced the formalization of a five year contract with Franklin Mutual Insurance Company, a division of the Franklin Mutual Insurance Group of Branchville, New Jersey. Franklin Mutual Insurance Company (FMI) is the largest mutual insurance company in New Jersey and has been insuring clients for over 129 years. FMI will use the Symbility solution in the field to drive efficiency and quality into their operation while ultimately improving customer service.

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 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 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.

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.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Automated Benefits Corp.
    James R. Swayze
    President and Chief Executive Officer
    (416) 359-9339, ext. 1003
    (416) 359-1911 (FAX)
    Email: jswayze@autoben.com
    or
    Automated Benefits Corp.
    Richard Adair
    Chief Financial Officer and Chief Operating Officer
    (416) 359-9339 ext. 1002
    (416) 359-1911 (FAX)
    Email: radair@autoben.com