Automated Benefits Corp.

Automated Benefits Corp.

April 29, 2011 08:00 ET

Automated Benefits Corp. Achieves Positive Operating Cashflow

Increases Revenue 28% FY2010 vs. FY2009

TORONTO, ONTARIO--(Marketwire - April 29, 2011) - Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported revenue increased by 28% to approximately $5.85 million for the fiscal year ending December 31, 2010. This compares to revenues of approximately $4.59 million in FY 2009, which represents an increase of approximately $1.26 million.

The net loss for the twelve month period ending December 31, 2010 decreased by 86% to approximately $281,000 and represents a basic and fully diluted loss per share of approximately one-quarter of a cent. This compares to a loss of approximately $1.94 million in FY 2009, representing a basic and fully diluted loss per share of approximately one-and-three-quarter cents, and an improvement of approximately $1.66 million.

The Corporation believes adjusted EBITDA is also a useful measure as a proxy for operating cashflow and 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 twelve month period ending December 31, 2010 was $78,000, an improvement of $1.18 million over adjusted EBITDA of ($1.1 million) in FY 2009.

"We are thrilled to have achieved our first positive operating cashflow for a full year," states James R. Swayze, Chief Executive Officer of Automated Benefits Corp. "This was a breakthrough year and we expect to build on this milestone and look forward to continued profitable growth in 2011."

The Corporation's operating subsidiaries, Symbility Solutions Inc. ("Symbility") and Automated Benefits Inc. ("Adjudicare") report the following recent business developments:

  • On January 20, 2011, Symbility announced that RSA Insurance Group plc (LSE:RSAIF) has expanded its use of Innovation Group's Innovation Symbility desk top Triage system in a move which increases automated claims handling across its UK property insurance business.
  • On January 24, 2011, Symbility announced an extension to its strategic partnership with Innovation Group (LSE:TIG.L) for the distribution of Symbility's market leading property estimation software in Europe.
  • On February 11, 2011, Symbility announced the finalization of a strategic partnership agreement with the TradePro Network, a specialty trades service provider network for property damage restoration and repairs servicing property & casualty insurance carriers and self-insured's throughout the United States.
  • On March 30, 2011, Symbility announced the signing of an agreement with La Capitale General Insurance, a leading home and auto insurance company in Quebec.
  • On April 5, 2011, Symbility announced its inclusion in Forrester Research, Inc.'s most recent report, "Industry Essential: The US Insurance Market, 2011," and was identified as an example of an emerging business technology vendor for property and casualty insurers.
  • On April 12, 2011, Adjudicare announced the release of Version 4.1.9 of the Adjudicare software, featuring exciting enhancements and a new Online Claims Access feature.
  • On April 19, 2011, Adjudicare announced the renewal of a five year contract with ESI Canada, a wholly owned subsidiary of Express Scripts Inc. (NASDAQ:ESRX), for the provision of Pharmacy Benefits Management services.

Today, the Corporation announces that, subject to approval of the TSX Venture Exchange, it intends to satisfy its obligation to pay independent director fees for the period July 1, 2010 to December 31, 2010 by issuing shares. The Corporation intends to issue 80,337 Common Shares to the independent directors of the Corporation at a price of $0.255 per share for an aggregate value of $20,486. Such aggregate value is the aggregate net amount owing to the independent directors after making all statutorily required source deductions. The price per share is equal to the closing volume – weighted average trading share price on the day preceding the board approval for this share issuance.

The Corporation also announces that today 811,000 options were granted in accordance with the Corporation's stock option plan. Of this total, 646,000 options were granted to the independent Directors and three Officers of the Corporation. Each option entitles its holder to purchase one common share of the Corporation at a price of $0.255 per share for a period of ten years from the date of grant. The options will vest in three equal tranches with one-third vesting immediately, one-third vesting on the first anniversary of the grant date, and one-third vesting on the second anniversary of the grant date. The granting of the stock options is subject to regulatory approval.

About Automated Benefits Corp.

Automated Benefits Corp., headquartered in Toronto, Canada, is a software company dedicated to developing applications for the insurance industry in North America and Europe. The Corporation currently has two platforms: Symbility and Adjudicare.

Symbility automates property insurance claims through its three complementary software components which afford users the mobility, speed and control needed to efficiently and quickly move onto the next claim. Symbility Claims Connect is the collaborative workflow management tool that gives every claim participant real-time access to the claims they are working on. Symbility Inside Adjuster is an integrated application designed to streamline the first notice of loss process which leads to faster settlement of claims. Symbility Mobile Claims software is an estimating tool that increases speed, efficiency and accuracy by allowing on-site claims processing.

Adjudicare is web-based software solution which enables insurance brokers and third party administrators across Canada to adjudicate health and dental claims on behalf of their group benefit clients. Adjudicare's software accommodates flexible plan designs and real-time payment of claims which allows our partners to provide a high level of service while managing the costs of their client's benefits plans.

All trade names are the property of their respective owners.

This press release should be read in conjunction with Corporation's consolidated financial statements and related notes and management's discussion and analysis for the year ending December 31, 2010, copies of which can be found at

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.

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