Automated Benefits Corp.

Automated Benefits Corp.

August 26, 2011 08:00 ET

Automated Benefits Corp.™ Reaches Milestone of $2 Million in Quarterly Revenue

Increases Revenue 58 Percent Q2 2011 vs Q2 2010

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2011) - Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported financial results for the second quarter of fiscal year 2011. Revenue increased by 58 percent to approximately $2.0 million for the second quarter, compared to revenues of approximately $1.3 million in the same period last year, an increase of $0.7 million. Revenue increased by 46 percent to approximately $3.7 million for the six months ending June 30, 2011, compared to revenues of approximately $2.5 million in the same period last year, an increase of approximately $1.2 million.

The net income for the three and six months ending June 30, 2011 increased to approximately $51,000 and $109,000, respectively. This compares to a loss of approximately $405,000 and $600,000 in the same period last year, an improvement of approximately $456,000 and $709,000.

The basic and fully diluted earnings per share for the three months and six months ending June 30, 2011 was approximately four one-hundredths of a cent and one-tenth of a cent, respectively. This compares to a basic and fully diluted loss per share in the same period last year of approximately three and a half tenths of a cent and one-half of a cent.

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 and six months ending June 30, 2011 was $232,000 and $337,000, respectively. This compares to adjusted EBITDA of ($240,000) and ($401,000) in the same period last year for an improvement of $472,000 and $738,000.

"We are pleased to have delivered our second consecutive profitable quarter and our first quarter in excess of $2.0 million in revenue," says James R. Swayze, Chief Executive Officer of Automated Benefits Corp. "By continuing to work closely with our key partners and fostering new customer relationships, we expect to extend this accelerated revenue growth and profitability throughout 2011."

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

  • On May 31, 2011, Symbility announced Version 4.0 of Mobile Claims and Claims Connect products; this release includes communication with providers of aerial roofing measurements, a new default Claim Structure and improvements to its Report Builder engine.
  • On June 28 2011, the Corporation announced Richard Adair's promotion to the role of President of Adjudicare. This organizational change strengthens the business by formalizing the leadership of the division and investing additional time of senior management and resources to focus on growing revenue profitably.
  • On July 26, 2011 Adjudicare announced the formalization of a contract with Lewer Insurance Agency ("Lewer") of Mississauga, Ontario. A pioneer in the Third-Party Administration market space, Lewer works with small business owners, independent marketers and corporate executives in all industries with a focus on the petroleum and automotive sectors of the market place. Lewer represents an exciting opportunity for Adjudicare to expand into the Quebec market.
  • On August 16, 2011, Adjudicare announced that Sirius Benefit Plans, a full service third party administrator of employee benefit programs for small to large-enterprise clients in the private and public sectors across Canada, had completed its implementation of the Adjudicare software solution to the majority of its existing block of group insurance business.

About Automated Benefits Corp.

Automated Benefits Corp. 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 that 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 June 30, 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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