Automated Benefits Corp.
TSX VENTURE : AUT

Automated Benefits Corp.

November 29, 2010 08:01 ET

Automated Benefits Corp. Announces Net Profit for Three Month Period Ending September 30, 2010

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported revenue increased by 53% to approximately $1,705,000 for the three months ending September 30, 2010 compared to revenues of approximately $1,113,000 for the third quarter of 2009.

The Corporation reported its first ever quarterly net profit which, for the three month period ending September 30, 2010, was approximately $380,000 representing a basic and fully diluted earnings per share of $0.00. This compares to a loss of approximately $228,000 during the same period last year for a basic and fully diluted loss per share of $0.00 representing a positive change of approximately $608,000.

For the nine months ending September 30, 2010, the Corporation reported revenues of $4,235,000, up 26% compared to the same period in 2009. The net loss for the nine month period ending September 30, 2010 decreased by 85% to approximately $229,000 and represents a basic and fully diluted loss per share of $0.00. This compares to a loss of approximately $1,540,000 during the same period last year, representing a basic and fully diluted loss per share of $0.01.

The Corporation 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, 2010 was $447,000, an improvement of $536,000 over adjusted EBITDA of ($89,000) for the prior year. Adjusted EBITDA for the nine month period ending September 30, 2010 was $5,000, an improvement of $880,000 over adjusted EBITDA of ($875,000) for the prior year.

"We are very pleased to have achieved our first profitable quarter," states James R. Swayze, Chief Executive Officer of Automated Benefits Corp. "We have been investing in our products, our people and our customers for several years now and we are confident that this positive financial momentum will continue beyond this major milestone."

Symbility Solutions Inc. and Automated Benefits Inc. report the following recent business developments:

  • On November 18, 2010, Symbility Solutions Inc. announced the finalization of a multi-year contract with Farmers Insurance of Los Angeles, California. Farmers today ranks as the third largest provider of automobile and homeowners insurance in the United States with over 15 million customers served by 24,000 employees across 41 states.

  • On October 20, 2010, Symbility Solutions Inc. announced that it had been included in the Forrester Research Inc. report "Hot Insurance Tech Companies to Watch in 2010: Q2 Update", which highlights innovative technology companies within the insurance industry.

  • On August 10, 2010, Symbility Solutions Inc. announced the finalization of a three year contract with one of the largest contractor networks in Canada.

About Automated Benefits Corp (TSX VENTURE:AUT)

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 a software solution used by local insurance brokers and third party administrators across Canada in the adjudication of health and dental claims. Adjudicare's software pays claims in real time giving clients optimum flexibility along with transparent disclosure on the benefit plan's financial performance.

All trade names are the property of their respective owners.

This press release should be read in conjunction with Corporation's interim consolidated financial statements and related notes and management's discussion and analysis for the period ending September 30, 2010, 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.

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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