SOURCE: Symbility Solutions Inc.

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May 19, 2016 08:00 ET

Symbility Reports 57% Revenue Growth Year-Over-Year in First Quarter 2016

TORONTO, ON--(Marketwired - May 19, 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 first quarter ended March 31, 2016.

FIRST QUARTER FINANCIAL RESULTS

  • Consolidated revenue for the first quarter of fiscal 2016 was $7.9 million, an increase of $2.9 million, or 57 percent, from $5.0 million reported in the same period last year.
  • The net loss for the first quarter of fiscal 2016 was $1.5 million and represents basic and fully diluted earnings per share of ($0.01), a decrease from the net loss of $1.9 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 $6.4 million and no debt as at March 31, 2016.
  • The Corporation has working capital, excluding deferred revenue, of $10.8 million as at March 31, 2016.
  • Adjusted EBITDA1 for the three months ending March 31, 2016, was ($553,000), an improvement from Adjusted EBITDA of ($877,000) million in the same period last year. Included in the Adjusted EBITDA of ($553,000) in the current quarter are expenses of $501,000 related to changes in foreign exchange.

MANAGEMENT COMMENT

"Revenue for Q1 represents the strongest first quarter in our history and sets the stage for Symbility to meet or exceed our guidance of $33M in 2016," commented James Swayze, Symbility's chief executive officer. "The operational changes we implemented plus the new products we launched last year, have accelerated our deal closure and deployment cycle-time which give us a great deal of confidence in our growth toward the end of this year and into 2017."

SELECTED FINANCIAL INFORMATION

For the three months ended March 31, in thousands of dollars 2016 2015
Revenue $7,911 $5,047
Cost of Sales $2,276 $1,319
Expenses $7,155 $5,679
Net Loss ($1,521) ($1,928)
Adjusted EBITDA ($553) ($877)
Loss per share2 ($0.01) ($0.01)
     
As at March 31, 2016, and December 31, 2015, in thousands of dollars 2016 2015
Cash and cash equivalents $6,380 $6,553
Total Assets $39,241 $39,155
Total long term liabilities $366 $354
     
For the three months ended March 31, in thousands of dollars 2016 2015
IFRS Net Loss ($1,521) ($1,928)
Finance income, net ($6) (41)
Depreciation and amortization $694 559
Stock-based compensation $273 258
Transaction related expenses $0 257
Income tax expense $7 18
Adjusted EBITDA ($553) ($877)
     

INVESTOR CONFERENCE CALL 

Symbility will host a live webcast and conference call this morning, Thursday, May 19, 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 www.gowebcasting.com/7489. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4919 for international participants. A replay of the webcast will be available on Symbility's website

ANNUAL GENERAL MEETING

As previously announced, the Corporation is also pleased to announce that they will be holding their Annual and Special Meeting of shareholders Wednesday, June 22, 2016, at 12 p.m. ET. The meeting will be held at the TMX Broadcast Centre - The Exchange Tower - 130 King Street West Toronto, ON M5X 1J2, for shareholders, investors and guests.

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 March 31, 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
  March 31, 2016   December 31, 2015
Assets      
Current assets      
  Cash and cash equivalents 6,380   6,553
  Accounts receivable 7,980   7,127
  Prepaid expenses 965   1,101
  Tax credits receivables 917   849
  16,242   15,630
Long-term assets      
  Prepaid expenses 53   19
  Security deposits 123   123
  Property and equipment 666   691
  Intangible assets 11,394   11,929
  Goodwill 10,763   10,763
  39,241   39,155
Liabilities      
Current Liabilities      
  Accounts payable and accrued liabilities 5,463   4,949
  Deferred revenue 3,510   2,702
    8,973
  7,651
       
Long-term liabilities      
  Accrued liabilities and others 20   8
  Customer deposits 346   346
    9,339   8,005
       
Shareholders' equity 29,902   31,150
  39,241   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
    March 31
    2016   2015
Revenue        
  Software and other   6,859   5,047
  Professional services   1,052   -
  Total Revenue   7,911   5,047
         
Cost of sales        
  Software and other   1,515   1,319
  Professional services   761   -
  Total cost of sales   2,276   1,319
         
Gross Profit   5,635   3,728
         
Expenses        
  Sales and Marketing   3,578   2,480
  General and administration   2,006   1,716
  Research and development   905   1,106
  Depreciation, amortization, and foreign exchange   666   120
  Transaction and restructuring   -   257
    7,155   5,679
Loss before finance costs (income), net and income tax expense   (1,520)   (1,951)
  Finance income, net   (6)   (41)
  Income tax expense   7   18
         
Net loss and comprehensive loss for the period   (1,521)   (1,928)
         
Basic and diluted loss and comprehensive loss per common share   (0.01)   (0.01)
Weighted average number of common shares outstanding        
  Basic and Diluted   237,541,342   210,054,511
           
           

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