Automated Benefits Corp.

Automated Benefits Corp.

June 28, 2011 08:01 ET

Automated Benefits Corp. Increases Revenue 33% Q1 2011 vs. Q1 2010

TORONTO, ONTARIO--(Marketwire - June 28, 2011) - Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported revenue increased by 33% to approximately $1.67 million for the three months ending March 31, 2011. This compares to revenues of approximately $1.26 million in the same period last year, which represents an increase of approximately $410,000.

The net income for the three months ending March 31, 2011 increased to approximately $57,000 and represents a basic and fully diluted earnings per share of approximately one-twentieth of a cent. This compares to a loss of approximately $195,000 in the same period last year, representing a basic and fully diluted loss per share of approximately one-fifth of a cent, and an improvement of approximately $252,000.

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 three months ending March 31, 2011 was $104,000, an improvement of $265,000 over adjusted EBITDA of ($161,000) in the same period last year.

"We expect to build off the momentum of our first quarter and deliver continued profitable growth for our shareholders in 2011," states James R. Swayze, Chief Executive Officer of Automated Benefits Corp.

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

  • 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. (US:ESRX), for the provision of Pharmacy Benefits Management services.

  • On May 31, 2011, Symbility announced the release of Version 4.0 of Mobile Claims and Claims Connect products, which includes communication with providers of aerial roofing measurements, a new default Claim Structure and improvements to its Report Builder engine.

Today, the Corporation is also pleased to announce that Richard Adair has been appointed as President of Adjudicare. Mr. Adair has been working successfully with the Adjudicare team over the past nine months in his role as Chief Financial Officer and Chief Operating Officer to review and strengthen the business strategy of the division. This organizational change demonstrates the Corporation's commitment to the business by formalizing the leadership of the division and investing additional senior management time and resources to focus on growing revenue profitably.

James R. Swayze states, "Richard has been a great asset to Automated Benefits and our Board is confident that he will add even further value with his enhanced mandate of leading Adjudicare."

Richard Adair notes, "After a comprehensive strategic review of the industry and assessing Adjudicare's value proposition, I am confident that Adjudicare can continue to build and grow a very successful business to the benefit of our customers and our Automated Benefits shareholders."

In addition, the Corporation also announced today that 525,000 options were granted in accordance with the Corporation's stock option plan. These options were granted to Richard Adair in recognition of his enhanced mandate and for services provided by an independent Director of the Corporation. Each option entitles its holder to purchase one common share of the Corporation at a price of $0.24 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 a 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 interim consolidated financial statements and related notes and management's discussion and analysis for the quarter ending March 31, 2011, 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 IFRS 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 IFRS. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards 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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