SOURCE: Symbility Solutions Inc.

Symbility Solutions Inc.

November 19, 2014 08:00 ET

Symbility Solutions Announces Third Quarter 2014 Financial Results

Three Month Revenue Increases 22%

TORONTO, ON--(Marketwired - November 19, 2014) - Symbility Solutions Inc. (the "Corporation"), (TSX VENTURE: SY), a global software company dedicated to developing cloud-based applications for the property and health insurance industries, today reported that revenue increased to $6.6 million for the three months ending September 30, 2014. This compares to revenues of $5.4 million in the same period last year, which represents an increase of 22%. This brings the nine month revenue total to $20.9 million versus $16.4 million for the same period last year, representing a 27% increase year to date.

The net loss for the three months ending September 30, 2014 was $259,000 and represents a basic and fully diluted loss per share of ($0.00). This compares to net loss of $1.0 million in the same period last year, representing a basic and fully diluted loss per share of ($0.01). The Corporation has a cash balance of $12.9 million as at September 30, 2014.

The Corporation believes adjusted EBITDA1 is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Adjusted EBITDA for the three months ending September 30, 2014 was $597,000 compared to adjusted EBITDA of ($112,000) in the same period last year. Adjusted EBITDA for the nine months ending September 30, 2014 was $2.0 million compared to adjusted EBITDA of $323,000 in the same period last year.

Symbility's Chief Executive Officer, James Swayze, commented, "As of the end of the third quarter, Symbility has signed 52 new domestic and international customer contracts. These contracts represent new business for us in North America and Europe, including insurance companies and P&C supply chain vendors for the Property Division, and the first insurance carrier and new third-party administrators for Symbility Health that represent a combined annual contract value (ACV)2 of $3.1 million. These contract signings position us well for 2015."

Symbility Solutions will host a conference call today at 2:00 p.m. ET to provide a business update and review financial results for the third-quarter ending September 30, 2014. The conference call will be webcast. All interested parties are welcome to join the live webcast, which can be accessed at http://www.gowebcasting.com/6134. Participants may also join the conference call by dialing toll free 1-877-223-4471 or 1-647-788-4922 for international participants.

Selected Financial Information

       
   Three-months ended
September 30,
 Nine-months ended
September 30,
   2014  2013  2014  2013
Revenue  $6,608  $5,430  $20,856  $16,424
Cost of Sales  $1,222  $1,104  $3,781  $3,207
Expenses  $5,673  $5,386  $18,238  $16,642
Net Loss  ($259)  ($1,032)  ($1,058)  ($3,339)
Adjusted EBITDA1  $597  ($112)  $2,013  $323
Loss per share 3  ($0.00)  ($0.01)  ($0.01)  ($0.02)
             
       
       
As at September 30, 2014 and December 31, 2013  2014  2013
Cash and cash equivalents  $12,922  $12,173
Total assets  $36,994  $33,613
Total long term liabilities  $346  $350
     
       
   Three-months ended
September 30,
 Nine-months ended
September 30,
   2014  2013  2014  2013
IFRS Net Loss  ($259)  ($1,032)  ($1,058)  ($3,339)
Finance income, net  (37)  (28)  (117)  (89)
Depreciation and amortization  482  410  1,400  1,193
Stock-based compensation  263  538  1,637  2,555
Transaction related expenses  139  -  139  -
Income tax expense  9  -  12  3
Adjusted EBITDA1  $597  ($112)  $2,013  $323
         

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. 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 The ACV is an estimated variable amount impacted by: (1) the actual number of claims processed; (2) the impact of severe weather on insurance property claims; (3) the number of claims assigned by an insurance carrier to an independent adjuster or contractor; and (4) the time required to integrate the Company's system with Symbility Solutions platform, any of which may result of a time delay between the signed agreement and revenue recognition and there may be material, significant variances in actual revenue on these new contracts.

3 In Canadian dollars, rounded to the nearest cent.

About Symbility Solutions Inc.

Symbility Solutions® (TSX VENTURE: SY) 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, 2014, 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 Condensed Consolidated Statements of Financial Position
(Unaudited - In thousands of Canadian dollars)
 
  As at
   September 30,  December 31,
  2014  2013
Assets      
Current assets      
 Cash and cash equivalents  12,922  12,173
 Accounts receivable  6,708  4,153
 Prepaid expenses and other assets  750  791
  20,380 17,117
 
Security deposits  
50
 
33
Property and equipment  796  675
Intangible assets  8,820  9,017
Goodwill  6,948  6,771
   36,994  33,613
Liabilities    
Current liabilities    
 Accounts payable and accrued liabilities  4,687  3,755
 Current portion of deferred revenue  4,648  3,032
      
Long-term liabilities  9,335  6,787
 Finance lease obligations  1  5
 Customer deposits  345  345
   9,681  7,137
     
Shareholders' equity  27,313  26,476
   36,994  33,613
 
 
Symbility Solutions Inc.
Interim Condensed 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,
  2014 2013 2014 2013
Revenue  6,608   5,430  20,856   16,424
         
Cost of sales  1,222   1,104  3,781  3,207
         
   5,386  4,326  17,075   13,217
Expenses            
 Sales and marketing  2,377  2,482  7,994  7,617
 Research and development  1,689  1,744  5,338  5,735
 General and administration  1,299  1,079  4,609  3,092
 Transaction related expenses  139  -  139  -
 Other operating expenses  169  81  158  198
   5,673  5,386  18,238  16,642
         
Loss before finance costs (income), net and income tax expense  (287)   (1,060)  (1,163)   (3,425)
Finance costs (income), net  (37)  (28)  (117)  (89)
Current income tax expense  9  -  12  3
         
Net loss and comprehensive loss for the period (259)  (1,032) (1,058) (3,339)
         
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  209,675,404  205,153,725  208,170,608  204,735,861
         
         

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