SOURCE: Symbility Solutions Inc.

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August 18, 2016 06:30 ET

Symbility Reports 54% Revenue Growth Year-Over-Year in Q2 2016

TORONTO, ON--(Marketwired - August 18, 2016) - Symbility Solutions Inc. (the "Corporation") (TSX VENTURE: SY), a global software company focused on modernizing the insurance industry, today announced financial results for the second quarter ended June 30, 2016.

SECOND QUARTER FINANCIAL RESULTS

  • Consolidated revenue for the second quarter of fiscal 2016 was $8.7 million, an increase of $3.1 million, or 54 percent, from $5.6 million reported in the same period last year.
  • The net loss for the second quarter of fiscal 2016 was $718,000 and represents basic and fully diluted earnings per share of ($0.00), an improvement from the net loss of $2.4 million in the same period last year and represents basic and fully diluted earnings per share of ($0.01).
  • The Corporation has a cash balance of $6.6 million and no debt as at June 30, 2016.
  • The Corporation has working capital, excluding deferred revenue, of $10.1 million as at June 30, 2016.
  • Adjusted EBITDA1 for the three months ending June 30, 2016, was $286,000, an improvement from Adjusted EBITDA of ($797,000) million in the same period last year. Included in Adjusted EBITDA of $286,000 in the current quarter are expenses of $132,000 related to changes in foreign exchange.

MANAGEMENT COMMENT
"We are pleased to report another new milestone in Q2 of 2016 with our highest quarterly revenue since inception. This quarter saw a 31% revenue increase in our Property segment with a 24% increase in Health and an overall positive adjusted EBITDA despite the foreign exchange headwinds," stated James Swayze, Symbility's chief executive officer. "We feel confident heading into the second half of the year that we will meet or exceed our guidance considering the increases we are seeing in product utilization across our segments and regions."

SELECTED FINANCIAL INFORMATION

       
in thousands of dollars  three months ended June 30,  six months ended June 30,
   2016  2015  2016  2015
Revenue  $8,665  $5,628  $16,576  $10,675
Cost of Sales  $2,601  $1,426  $4,877  $2,745
Expenses  $6,766  $6,594  $13,921  $12,273
Net Loss  ($718)  ($2,395)  ($2,239)  ($4,323)
Adjusted EBITDA  $286  ($797)  ($267)  ($1,674)
Loss per share2  ($0.00)  ($0.01)  ($0.01)  ($0.02)
         
As at June 30, 2016, and December 31, 2015, in thousands of dollars  2016  2015
Cash and cash equivalents  $6,555  $6,553
Total Assets  $37,366  $39,155
Total long term liabilities  $387  $354
     
   three months ended June 30,  six months ended June 30,
   2016  2015  2016  2015
IFRS Net Loss  ($718)  ($2,395)  ($2,239)  ($4,323)
Finance income, net  ($3)  ($12)  ($9)  ($53)
Depreciation and amortization  $684  $700  $1,378  $1,259
Stock-based compensation  $304  $127  $577  $385
Other non-operating expenses  $0  $768  $0  $1,025
Income tax expense  $19  $15  $26  $33
Adjusted EBITDA  $286  ($797)  ($267)  ($1,674)
             

INVESTOR CONFERENCE CALL
Symbility will host a live webcast and conference call this morning, Thursday, August 18, 2016, at 11 a.m. ET to discuss these results. All interested parties are welcome to join the live webcast, which can be accessed at http://www.gowebcasting.com/7725. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4965 for international participants. A replay of the webcast will be available on Symbility's website.

1 Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, and other non-recurring gains or losses including transaction costs related to acquisition and restructuring cost. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. 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 or as a substitute for net earnings (loss) prepared in accordance with IFRS as issued by IASB. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.

2 In Canadian dollars, rounded to the nearest cent.

ABOUT SYMBILITY
Symbility® (TSX VENTURE: SY) believes in creating world-class experiences that simplify business and improve lives. With a history in modernizing insurance claims solutions for the property and health industries, Symbility has established itself as a partner that puts security, efficiency and customer experience first. Symbility PROPERTY™ brings smarter thinking to property insurance. Symbility HEALTH™ helps benefits professionals build their brands and businesses. Our strategic services team, Symbility INTERSECT™ empowers a variety of businesses with smarter mobile and IoT product development strategy, design thinking and engineering excellence. With our three segments pushing industries forward, Symbility proves that change for the better is entirely possible. symbilitysolutions.com

CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release may contain forward-looking statements with respect to the Corporation, its products and operations and the contemplated financing. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Corporation discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations, and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Annual Information Form of the Corporation which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Corporation and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Corporation has no obligation to update such statements.

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 quarter ending June 30, 2016, copies of which can be found at www.sedar.com.

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.

All trade names are the property of their respective owners.

 
 
Symbility Solutions Inc.
Interim Consolidated Statements of Financial Position
(Unaudited - In thousands of Canadian dollars)
   
  As At
   June 30, 2016  December 31, 2015
Assets    
Current assets    
 Cash and cash equivalents  6,555  6,553
 Accounts receivable  6,619  7,127
 Prepaid expenses  773  1,101
 Tax credits receivables  999  849
   14,946  15,630
Long-term assets      
 Prepaid expenses and Security deposits  169  142
 Property and equipment  673  691
 Intangible assets  10,815  11,929
 Goodwill  10,763  10,763
   37,366  39,155
Liabilities      
Current Liabilities      
 Accounts payable and accrued liabilities  4,857  4,949
 Deferred revenue  2,599  2,702
     
Long-term liabilities  7,456  7,651
 Accrued liabilities and others  20  8
 Customer deposits  367  346
   7,843  8,005
       
Shareholders' equity  29,523  31,150
   37,366  39,155
       
 
Symbility Solutions Inc.
Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited - In thousands of Canadian dollars, except per share data)
 
   three-month period ended June 30,  six-month period ended June 30,
   2016  2015  2016  2015
             
Revenue            
 Software and other  7,219  5,586  14,078  10,633
 Professional services  1,446  42  2,498  42
 Total Revenue  8,665  5,628  16,576  10,675
             
Cost of sales            
 Software and other  1,744  1,402  3,259  2,721
 Professional services  857  24  1,618  24
 Total cost of sales  2,601  1,426  4,877  2,745
Gross Profit  6,064  4,202  11,699  7,930
Expenses            
 Sales and Marketing  3,566  2,896  7,143  5,375
 General and administration  2,018  1,708  4,024  3,424
 Research and development  888  1,159  1,793  2,266
 Depreciation, amortization, and foreign exchange foreign exchange  294  63  961  183
 Transaction and restructuring  -  768  -  1,025
   6,766  6,594  13,921  12,273
Loss before finance costs (income), net and income tax expense  (702)  (2,392)  (2,222)  (4,343)
 Finance income, net  (3)  (12)  (9)  (53)
 Income tax expense  19  15  26  33
Net loss and comprehensive loss for the period  (718)  (2,395)  (2,239)  (4,323)
Basic and diluted loss and comprehensive loss per common share  (0.00)  (0.01)  (0.01)  (0.02)
Weighted average number of common shares outstanding Basic and Diluted  237,628,521  226,966,582  237,584,932  218,557,265

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