Symbility Solutions Inc.
TSX VENTURE : SY
OTCQX : ATBEF

Symbility Solutions Inc.

November 13, 2013 08:00 ET

Symbility Solutions Announces Third Quarter 2013 Financial Results

Nine Month Revenue Increases 38%

TORONTO, ONTARIO--(Marketwired - Nov. 13, 2013) - Symbility Solutions Inc. (the "Corporation"), (TSX VENTURE:SY)(OTCQX:ATBEF), a global software company dedicated to developing cloud-based applications for the property and health insurance industries, today reported that revenue increased to $5.4 million for the three months ending September 30, 2013. This compares to revenues of $4.9 million in the same period last year, which represents an increase of 10%. This brings the nine month revenue total to $16.4 million versus $11.9 million for the same period last year, representing a 38% increase year to date.

The net loss for the three months ending September 30, 2013 was $1.0 million and represents a basic and fully diluted loss per share of ($0.01). This compares to net loss of $159,000 in the same period last year, representing a basic and fully diluted loss per share of $(0.00).

Adjusted EBITDA for the three months ending September 30, 2013 was ($112,000) compared to adjusted EBITDA of $471,000 in the same period last year. The Corporation believes Adjusted EBITDA(1) is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons.

Following an extensive evaluation and analysis of the existing client contracts and new opportunities the Corporation's outlook for fiscal 2013 revenue is between $21 million and $22 million. The revised outlook also reflects the impact of an unusually calm storm season in the United States, which has reduced transaction volumes and revenue.

"Our focus this year has been primarily geared towards ramping up new users from the supply chain of restoration contractors, independent adjusters and other third-party vendors to build the foundational support for our growing pipeline of insurance companies," commented James Swayze, CEO, Symbility Solutions Inc. "We expect the 12,000 new users we have added this year to significantly enhance our 2014 revenue as they reach full adoption in six to nine months. The Corporation has been increasingly modifying contract terms and proposals for its carrier customers to include minimum claim and revenue levels so as to reduce the variability of revenue due to weather and corresponding claims activity in the future."

Selected Financial Information

Three months ended Sept 30 Nine months ended Sept 30
(in thousands of dollars, except per share) 2013 2012 2013 2012
Revenue $ 5,430 $ 4,934 $ 16,424 $ 11,881
Net Loss $ (1,032 ) $ (159 ) $ (3,339 ) $ (2,632 )
Adjusted EBITDA(1) $ (112 ) $ 471 $ 323 $ 677
Loss per share (2) $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 )
Three months ended Sept 30 Nine months ended Sept 30
(in thousands of dollars) 2013 2012 2013 2012
IFRS Net Loss $ (1,032 ) $ (159 ) $ (3,339 ) $ (2,632 )
Finance and other income (28 ) - (89 ) 2
Depreciation and amortization 410 359 1,193 728
Stock-based compensation 538 237 2,555 746
Transaction related expenses - 34 - 1,833
Income tax expense - - 3 -
Adjusted EBITDA(1) $ (112 ) $ 471 $ 323 $ 677
As at Sept 30, 2013 and December 31, 2012,
(in thousands of dollars) 2013 2012
Cash and cash equivalents $ 11,361 $ 15,008
Total assets $ 34,585 $ 36,409
Total long term liabilities $ 333 $ 459
(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, restructuring costs included in other general & administration expense and other non-recurring gains or losses including transaction costs related to acquisition. 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 Solutions® (TSX VENTURE:SY)(OTCQX:ATBEF) is a global provider of cloud-based and smartphone/tablet-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. For more information, please visit www.symbilitysolutions.com or follow Symbility on Twitter at @symbility and on LinkedIn at symbility-solutions.

This press release should be read in conjunction with Corporation's interim condensed consolidated financial statements and related notes, and management's discussion and analysis for the quarter ending September 30, 2013, copies of which can be found at www.sedar.com.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Symbility Solutions Inc. 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 Symbility Solutions Inc.

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
September 30, December 31,
2013 2012
Assets
Current assets
Cash and cash equivalents 11,361 15,008
Accounts receivable 5,458 3,340
Loans receivable - 148
Prepaid expenses and other assets 914 576
17,733 19,072
Security deposits 33 19
Property and equipment 698 399
Intangible assets 9,350 10,148
Goodwill 6,771 6,771
34,585 36,409
Liabilities
Current liabilities
Accounts payable and accrued liabilities 3,206 3,902
Current portion of deferred revenue 3,780 4,118
6,986 8,020
Long-term liabilities
Deferred revenue - 208
Finance lease obligations 10 49
Customer deposits 323 202
7,319 8,479
Shareholders' equity 27,266 27,930
34,585 36,409
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 September 30, Nine-month period ended September 30,
2013 2012 2013 2012
Revenue 5,430 4,934 16,424 11,881
Cost of sales 1,028 964 3,094 2,233
4,402 3,970 13,330 9,648
Expenses
Sales and marketing 2,558 1,771 7,731 4,270
Research and development 1,113 612 3,181 1,807
General and administration 1,710 1,650 5,645 4,200
Transaction related expenses - 34 - 1,833
Other operating expenses 81 62 198 168
5,462 4,129 16,755 12,278
Loss before finance costs
(income), net and
income tax expense (1,060 ) (159 ) (3,425 ) (2,630 )
Finance costs (income), net (28 ) - (89 ) 2
Current income tax expense - - 3 -
Net loss and
comprehensive loss for
the period (1,032 ) (159 ) (3,339 ) (2,632 )
Basic and diluted loss and
comprehensive loss per
common share (0.01 ) (0.00 ) (0.02 ) (0.02 )
Weighted average number
of common shares
outstanding
Basic and diluted 205,153,725 180,573,533 204,735,861 157,270,055

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