SOURCE: Symbility Solutions Inc.

Symbility Solutions Inc.

November 16, 2015 08:00 ET

Symbility Solutions Announces Third Quarter 2015 Financial Results

Quarterly Revenue Increases 38% From the Second Quarter

TORONTO, ON--(Marketwired - November 16, 2015) - Symbility Solutions Inc. (the "Corporation") (TSX VENTURE: SY), a global software company dedicated to developing applications for the insurance industry, reports that consolidated revenue increased to $7.8 million for the three months ending September 30, 2015. This compares to revenues of $6.6 million in the same period last year, which represents an increase of 18 percent, and $5.6 million in the second quarter of 2015, representing 38 percent revenue growth this quarter over the last quarter.

The net loss for the three months ending September 30, 2015 was $864,000 and represents a basic and fully diluted loss per share of ($0.00). This compares to net loss of $259,000 in the same period last year, representing a basic and fully diluted loss per share of ($0.00). The Corporation has a cash balance of $4.5 million as at September 30, 2015.

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, 2015 was $512,000 compared to adjusted EBITDA of $597,000 in the same period last year.

Symbility's chief executive officer, James Swayze, commented, "Symbility is very pleased to have returned to positive Adjusted EBITDA this quarter. The changes we have been implementing this year have helped Symbility get back on track with the kind of revenue growth we have achieved in recent years. From a customer adoption perspective, we have signed a number of contracts in both North America and Europe recently and we expect to continue this momentum as we close out the year which will drive further growth and profitability."

Third Quarter Results Conference Call

Symbility will host a conference call today, Monday, November 16, 2015, at 11:00 a.m. ET to provide a business update and review financial results for the third quarter of 2015. 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/7090. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4919 for international participants.

Symbility is pleased to announce that it has engaged The Howard Group as its strategic investor communications advisor, providing both traditional and online initiatives targeting the investment community and the investing public. The Agreement has a term of one year effective November 1, 2015. The remuneration payable to the Howard Group will be $7,500 per month plus GST. The Agreement is subject to the approval of the TSX Venture Exchange.

Selected Financial Information
(in thousands of dollars, except per share amounts)

       
   Three months ended September 30,  Nine months ended September 30,
   2015  2014  2015  2014
Revenue  $7,787  $ 6,608  $18,462  $ 20,856
Cost of Sales  $2,262  $ 1,222  $5,008  $ 3,781
Expenses  $6,365  $5,673  $18,637  $18,238
Net Loss  ($864)  ($259)  ($5,187)  ($1,058)
Adjusted EBITDA  $512  $597  ($1,162)  $2,013
Loss per share2  ($0.00)  ($0.00)  ($0.02)  ($0.01)
         
     
As at September 30, 2015, and December 31, 2014 2015  2014
Cash and cash equivalents $4,529 $12,612
Total Assets $41,139 $35,532
Total long term liabilities $367 $409
     
       
   Three months ended Sept 30,  Nine months ended Sept 30,
   2015  2014  2015  2014
IFRS Net Loss  ($864)  ($259)  ($5,187)  ($1,058)
Finance income, net  (6)  (37)  (59)  (117)
Depreciation and amortization  824  482  2,083  1,400
Stock-based compensation  326  263  711  1,637
Other expenses  202  139  1,227  139
Income tax expense  30  9  63  12
Adjusted EBITDA  $512  $597  ($1,162)  $2,013
             

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 Solutions (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 mobile innovation division, BNOTIONS, 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. For more information, please visit www.symbilitysolutions.com or follow Symbility on Twitter at @symbility and on LinkedIn at symbility-solutions.

Caution Regarding Forward-Looking Information

This press release may contain forward-looking statements with respect to the Corporation, its products and operations and the estimated value and future operation relating to the BNOTIONS acquisition 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 quarter ending September 30, 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 Inc.
Interim Consolidated Statements of Financial Position
(Unaudited - In thousands of Canadian dollars)
   As At
   September 30, 2015  December 31, 2014
Assets      
Current assets    
 Cash and cash equivalents 4,529 12,612
 Accounts receivable  9,636  4,879
 Prepaid expenses  1,042  704
 Tax receivables  1,195  895
   16,402  19,090
Long-term assets      
 Security deposits and other assets  144  90
 Property and equipment  744  747
 Intangible assets  13,098  8,657
 Goodwill  10,751  6,948
   41,139  35,532
Liabilities      
Current Liabilities      
 Accounts payable and accrued liabilities  5,482  5,136
 Deferred revenue  3,591  2,135
   9,073  7,271
Long-term liabilities      
 Accrued liabilities and others  22  64
 Customer deposits  345  345
   9,440  7,680
       
Shareholders' equity  31,699  27,852
   41,139  35,532
     

 
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,
   2015  2014  2015  2014
Revenue            
 Software and other  6,325  6,608  16,957  20,856
 Professional services  1,462  -  1,505  -
Total revenue  7,787  6,608  18,462  20,856
         
Cost of sales            
 Software and other  1,397  1,222  4,118  3,781
 Professional services  865  -  890  -
 Total cost of sales  2,262  1,222  5,008  3,781
             
Gross margin  5,525  5,386  13,454  17,075
             
Expenses            
 Sales and marketing  3,343  2,377  8,719  7,994
 General and administration  1,843  1,689  5,267  5,338
 Research and development  943  1,299  3,208  4,609
 Depreciation, amortization, and foreign exchange  34  169  216  158
 Other  202  139  1,227  139
   6,365  5,673  18,637  18,238
Loss before finance income, and income tax expense  (840)  (287)  (5,183)  (1,163)
Finance income, net  (6)  (37)  (59)  (117)
Income tax expense  30  9  63  12
Net loss and comprehensive loss for the period  (864)  (259)  (5,187)  (1,058)
Basic and diluted loss and comprehensive loss per common share  (0.00)  (0.00)  (0.02)  (0.01)
             
Weighted average number of common shares outstanding            
  Basic and diluted 237,520,650 209,675,404 224,947,856 208,170,608
         

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