Automated Benefits Corp.
TSX VENTURE : AUT

Automated Benefits Corp.

August 29, 2007 08:00 ET

Automated Benefits Corp. Increases Revenue 40% in Q2 2007 vs. Q2 2006

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported results and selected financial metrics for the quarter ending June 30, 2007. 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 June 30, 2007, copies of which can be found at www.sedar.com.

Revenues for the three month period ended June 30, 2007 increased to approximately $909,000 which represents a revenue increase of 40% as compared to the same period last year. Sequentially, revenue increased 19% from $762,000 in the first quarter of 2007.

The net loss for the three month period ended June 30, 2007 was approximately $1,103,000 and represents a basic and fully diluted loss per share of $.01. This compares to a loss of approximately $1,767,000 during the same period last year representing a basic and fully diluted loss per share of $.02 and a decrease of approximately 38%. Quarter over Quarter net loss decreased by approximately 16% from $1,318,000 or a basic and fully diluted loss per share of $.02 in the quarter ended March 31, 2007.

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, and impairment charges. Adjusted EBITDA for the three month period ended June 30, 2007 was approximately $(852,000) compared to approximately $(1,096,000) for the quarter ended March 31, 2007. This represents an improvement of $244,000 or 22%.

As Symbility's customers roll-out the mobile claims product to their adjusting base, the number of users has grown from 6,000 users at March 31, 2007 to 7,000 users as of June 30, 2007 representing an increase of 17%. As of June 30, 2007, Automated Benefits Inc. had 34,000 certificates on its software system as compared to 30,000 certificates as of March 31, 2007 which represents an increase of 13%.

Automated Benefits Corp. President and Chief Executive Officer James R. Swayze commented "We are pleased to see our Symbility and Autoben subsidiaries continue the robust growth in their respective user bases and associated high margin transaction revenue. He added "This has been achieved while ensuring that their cost structures remain in line with revenue growth".

The Corporation reports the following recent developments:

- On May 7, 2007 the Corporation announced the closing of its previously announced Private Placement which resulted in gross proceeds of $3,668,800 to fund operations.

- The Corporation achieved Microsoft® Partner Certified status which enables its subsidiaries to access significant benefits including the use of the Microsoft® Certified Partner logo in all promotional activities and access to free licensing, training, technical, and pre-sale support for certain Microsoft® products.

- Autoben released version 2.14 of their claims adjudication software to its customer base. This release incorporates a number of suggestions from customers which will improve the user interface and overall efficiency and functionality of the service delivery.

- On August 9, 2007, Symbility announced a major milestone with the release of Mobile Claims v2.9 which offers significant enhancements including a roof plan scoping module and other new features for both the Symbility.NET web-based data warehouse application and the mobile claims wireless, pen-based claim processing software.

- Symbility announced that it has signed a contract with Lautriv, LLC, a national provider of Claims Management Solutions. This contract is significant as it represents the first time Symbility has used a Value Added Reseller (VAR) to privately label its mobile claims product and integrate it into another branded claims management solution.

- Symbility announced strategic partnerships with Motion ComputingTM and Lenovo. Both of these hardware vendors are leaders in mobile computing and wireless communications and will help enhance Symbility's ability to increase its share of the market.

- Management has made a strategic decision to consolidate the Edmonton office of Autoben with the Corporation's head office in Toronto which will enhance Autoben's ability to pursue growth in the Eastern Canadian market.

Richard Adair, Chief Financial Officer of Automated Benefits Corp. stated "We are making a concerted effort to promote sharing resources between the operating subsidiaries. The consolidation of Autoben's Edmonton office will enable us to further leverage existing infrastructure and resources in Ontario and reduce our operating expenses going forward."

About Automated Benefits Corp. and Symbility Solutions

Automated Benefits Corp. (www.autoben.com), headquartered in Toronto, Ontario, is a software company dedicated to developing applications for the insurance industry. The corporation currently has two subsidiaries, Autoben and Symbility.

Autoben is focused on the employee benefit segment of the life insurance industry. Located in Edmonton, Alberta, Autoben provides claims management software for health and dental plans in addition to insurance products for employer groups. The proprietary software of Autoben assists in reducing the cost of employee benefits programs by allowing local adjudication and administration to over 34,000 employees across Canada.

Symbility Solutions (www.symbilitysolutions.com) has developed a Mobile Claims system focusing principally on residential and commercial property claims estimation for use by insurance company adjusters and independent contractors. Symbility has offices in Waterloo, Ontario and Montreal, Quebec.

Forward Looking Statements

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

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 or as a substitute for net earnings (loss) prepared in accordance with GAAP.

Key Performance Indicators and Other Measures

Automated Benefits Corp. is not aware of any uniform standards for calculating users or certificates and we believe that the Corporation's presentation of these measures may not be calculated consistently with other companies in the same or similar business. Moreover, these measures are of operational performance and not measures of financial performance under generally accepted accounting principles. 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 & Chief Executive Officer
    (416) 359-9339 ext. 1003
    Email: jswayze@autoben.com
    or
    Automated Benefits Corp.
    Richard Adair
    Chief Financial Officer
    (416) 359-9339 ext. 1002
    Email: radair@autoben.com
    Website: www.autoben.com