SOURCE: Symbility Solutions Inc.

Symbility Solutions Inc.

April 04, 2016 08:00 ET

Symbility Reports Record Revenue in the Fourth Quarter 2015

TORONTO, ON--(Marketwired - April 04, 2016) - Symbility Solutions Inc. (the "Corporation"), (TSX VENTURE: SY), a global software company focused on modernizing the insurance industry, reported financial results for its fourth quarter and fiscal year 2015, which ended December 31, 2015.

Fourth Quarter Financial Results

  • Consolidated revenue for the fourth quarter of fiscal 2015 was $8.1 million, an increase of $1.2 million, or 16 percent, from $6.9 million reported in the same period last year.
  • The net loss for the fourth quarter of fiscal 2015 was ($876,000) and represents basic and fully diluted earnings per share of ($0.00). This compares to net income of $225,000 in the same period last year, representing a basic and fully diluted earnings per share of $0.00.
  • Adjusted EBITDA1 for the three months ending December 31, 2015, was $776,000 compared to adjusted EBITDA of $1.1 million in the same period last year.
     
     
    Three months ended Dec. 31,
(in thousands of dollars, except per share amounts)     2015       2014
Revenue   $ 8,075     $ 6,949
Net Income (Loss)     ($876 )   $ 225
Adjusted EBITDA1   $ 776     $ 1,078
Earnings (Loss) per share2     ($0.00 )   $ 0.00
               
       
    Three months ended Dec. 31,  
(in thousands of dollars)
  2015     2014  
IFRS Net Income (Loss)     ($876 )   $ 225  
Finance and other income     (5 )     (31 )
Depreciation and amortization     1,285       550  
Stock-based compensation     296       267  
Transaction related expenses     8       5  
Restructuring cost     79       -  
Income tax expense (recovery)     (11 )     62  
Adjusted EBITDA1   $ 776     $ 1,078  
                 
                 
As at December 31, (in thousands of dollars)   2015   2014
Cash and cash equivalents   $ 6,553   $ 12,612
Total assets   $ 39,155   $ 35,532
Total long term liabilities   $ 354   $ 409
             
             

Management Comment

Symbility's chief executive officer, James Swayze, commented, "Symbility closed the year with its strongest revenue quarter in our history giving us revenue of $16 million over the second half of the year, eclipsing our guidance of $15 million, and achieved positive Adjusted EBITDA again this quarter. With the momentum we have built in our sales pipeline, conversion rate and recently announced deals, we feel well positioned to drive further growth into our core markets in 2016 in addition to continuing our expansion efforts through international investments."

Fiscal Year 2015 Financial Results

  • Consolidated revenue in fiscal 2015 was $26.5 million, compared to revenue of $27.8 million in the previous fiscal year.
  • The net loss in fiscal 2015 was ($6.1) million and represents a basic and fully diluted loss per share of ($0.03), compared to a net loss of ($833,000) in previous fiscal year.
  • Adjusted EBITDA1 for the twelve-month period ending December 31, 2015, was a loss of ($380,000) compared to $3.1 million in previous fiscal year.
    Twelve months ended Dec. 31,  
(in thousands of dollars, except per share amounts)
  2015     2014  
Revenue   $ 26,537     $ 27,805  
Net Loss     ($6,063 )     ($833 )
Adjusted EBITDA1     ($380 )   $ 3,091  
Loss per share2     ($0.03 )     ($0.00 )
                 
                 
    Twelve months ended Dec. 31,  
(in thousands of dollars)
  2015     2014  
IFRS Net Loss   ($6,063 )     ($833 )
Finance and other income   (64 )     (148 )
Depreciation and amortization   3,372       1,951  
Stock-based compensation   1,009       1,903  
Transaction related expenses   904       143  
Restructuring cost   410       -  
Income tax expense   52       75  
Adjusted EBITDA1   ($380 )   $ 3,091  
               
               

Management Guidance

In 2016, the Corporation estimates that it will meet or exceed $33 million in revenue. To support the continued growth in our sales pipeline and the implementation efforts associated with certain new customers, Symbility will make additional investments during 2016. These additional investments are primarily related to R&D expenses associated with product localization for new geographies, Sales & Marketing expenses associated with adding more local representation, and additional data hosting requirements. After taking into account these expenditures, the Corporation expects to achieve break-even cash flow and Adjusted EBITDA1 in 2016.

Investor Conference Call 

Symbility will host a live webcast and conference call this morning, April 4, 2016, at 11 a.m. ET to provide a business update and review financial results for the fourth quarter and year ended December 31, 2015. All interested parties are welcome to join the webcast, which can be accessed at http://www.gowebcasting.com/7338. 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 presentation will be available on Symbility's website www.symbilitysolutions.com.

Annual General Meeting

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. Any and all holders of common shares of the Corporation as at the close of business on the Record Date, which is May 16, 2016, will be entitled to vote at this meeting. For more information, please refer to the Corporation's Management Information Circular, which will be posted at www.sedar.com.

Options to Directors and Officers

Symbility also announced today that 840,360 options will be granted to Directors and Officers in accordance with the Corporation's stock option plan. Each option entitles its holder to purchase one common share of the Corporation at the higher of price or $0.33 or the closing price on April 4, 2016 and for a period of ten years. The options will vest at a rate of one third per annum on the anniversary date of the grant.

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 Solutions Inc.

Symbility (TSX VENTURE: SY) is a global provider of cloud-based and mobile-enabled claims technology for the property and health insurance industries. Designed to be flexible and easy-to-use, Symbility Solutions' two product suites, Symbility Property™ and Symbility Health™, empower insurers to collaborate across the entire claims processing workflow and reduce costs while delivering a market-leading claims experience. Symbility's Strategic Services focuses on the design and development of leading technologies in the areas of mobile, the Internet of Things (IoT), Machine-to-Machine (M2M), and wearables. Symbility is proudly ISO/IEC 27001:2013 certified and ISO/IEC 27034 compliant. For more information, please visit www.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 Corporation's future opportunities and expected financial performance. 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 year ending December 31, 2015, 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
Consolidated Statements of Financial Position
(Unaudited- In thousands of Canadian dollars)
 
    As At
    December 31, 2015   December 31, 2014
Assets        
Current assets        
  Cash and cash equivalents   6,553   12,612
  Accounts receivable   7,127   4,879
  Prepaid expenses   1,101   704
  Tax credits receivables   849   895
Long-term assets   15,630   19,090
  Prepaid expenses   19   34
  Security deposits   123   56
  Property and equipment   691   747
  Intangible assets   11,929   8,657
  Goodwill   10,763   6,948
    39,155   35,532
Liabilities        
Current Liabilities        
  Accounts payable and accrued liabilities   4,949   5,136
  Deferred revenue   2,702   2,135
Long-term liabilities   7,651   7,271
  Accrued liabilities and others   8   64
  Customer deposits   346   345
    8,005   7,680
         
Shareholders' equity  
31,150
 
27,852
    39,155   35,532
         
         
Symbility Solutions Inc.  
Consolidated Statements of Loss and Comprehensive Loss  
(Unaudited - In thousands of Canadian dollars, except per share data)  
   
    Three-month period ended     Twelve-month period ended  
    December 31 ,     December 31 ,  
    2015     2014     2015     2014  
Revenue                        
  Software and other   6,593     6,949     23,550     27,805  
  Professional services   1,482     -     2,987     -  
  Total revenue   8,075     6,949     26,537     27,805  
  Cost of sales                        
  Software and other   1,896     1,508     6,014     5,289  
  Professional services   862     -     1,752     -  
  Total cost of sales   2,758     1,508     7,766     5,289  
                         
Gross margin   5,317     5,441     18,771     22,516  
                         
Expenses                        
  Sales and marketing   3,226     2,636     11,945     10,630  
  General and administration   1,890     1,730     7,157     7,068  
  Research and development   859     485     4,067     5,094  
  Depreciation, amortization, and foreign exchange   147     329     363     487  
  Transaction and restructuring   87     4     1,314     143  
    6,209     5,184     24,846     23,422  
Income (loss) before finance costs (income), net and income tax expense (recovery) expense   (892 )  

 257
   

(6,075
)  

 (906
)
Finance income, net  
(5
)   (31 )   (64 )   (148 )
Income tax expense (recovery)   (11 )   63     52     75  
Net income (loss) and comprehensive income (loss) for the period   (876 )   225     (6,063 )   (833 )
Basic and diluted earnings (loss) and comprehensive earnings (loss) per common share   (0.00 )   0.00     (0.03 )   (0.00 )
Weighted average number of  common shares outstanding                        
    Basic   237,541,342     209,865,543     228,122,105     208,597,825  
    Diluted   237,541,342     220,319,808     228,122,105     208,597,825  
                         
                         

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