Symbility Solutions Inc.

TSX VENTURE : SY


Symbility Solutions Inc.

March 28, 2014 08:00 ET

Symbility Solutions Increases Revenue 32% FY2013 vs FY2012

TORONTO, ONTARIO--(Marketwired - March 28, 2014) - Symbility Solutions Inc. (the "Corporation") (TSX VENTURE:SY), a global software company dedicated to developing applications for the insurance industry, today reported that revenue increased by 32% to $21.9 million for the fiscal year ended December 31, 2013. This compares to revenues of $16.5 million in FY 2012 and is an increase of $5.4 million.

The net loss for the year ended December 31, 2013 was $4.7 million and represents a basic and fully diluted loss per share of $0.02. This compares to a loss of $3.4 million in FY 2012. Included the net loss for the year was non-cash amortization and stock based compensation of $4.7 million compared to transaction related expenses of $1.83 million and non-cash amortization and stock based compensation of $2.39 million in FY2012.

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. Adjusted EBITDA for the twelve month period ending December 31, 2013 was ($137,000), compared to $831,000 in 2012.

"Our focus in 2013 was the expansion of our supply chain and the 62% increase in our user base in addition to our revenue growth is evidence of success." commented James Swayze, CEO, Symbility Solutions. "This year we have a number of new products and partnerships aimed at insurance company needs, both domestically and internationally, that we expect to drive cost out of our customers operations through an increase in remote and virtual data collection."

The Corporation has provided the following metrics on the number of users of its Symbility Property software at the end of each period and the number of claims created in each period as an indication of the growing activity in Symbility Property.

Fiscal
2013
Fiscal
2012
Fiscal
2011
Users 41,458 25,622 17,080
Claims created 870,076 634,568 347,277

The Corporation also announced today that 630,685 options were granted to 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 closing share price on March 31, 2014 for a period of ten years from March 31, 2014. The options will vest at a rate of one third per annum on the anniversary date of the grant.

The Corporation will host a conference call today at 10:00 a.m. ET to provide a business update and review financial results for the year ended December 31, 2013. 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/5349. Participants may also join the conference call by dialing toll free 1-877-223-4471 or 1-647-788-4922 for international participants.

The Corporation is also pleased to announce that they will be holding their Annual and Special Meeting of shareholders on Thursday May 22, 2014 at 12:00 p.m. EDT. 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 April 22, 2014, 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.

Selected Financial Information

Three months ended
Dec 31
Twelve months ended
Dec 31
(in thousands of dollars) 2013 2012 2013 2012
Revenue $ 5,471 $ 4,656 $ 21,894 $ 16,537
Net Loss $ (1,347 ) $ (761 ) $ (4,687 ) $ (3,393 )
Adjusted EBITDA(1) $ (460 ) $ 161 $ (137 ) $ 831
Loss per share (2) $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.02 )
Three months ended
Dec 31
Twelve months ended
Dec 31
(in thousands of dollars) 2013 2012 2013 2012
IFRS Net Loss $ (1,347 ) $ (761 ) $ (4,687 ) $ (3,393 )
Finance and other income (29 ) (6 ) (117 ) (9 )
Depreciation and amortization 412 371 1,605 1,099
Stock-based compensation 494 550 3,049 1,296
Transaction related expenses - - - 1,831
Income tax expense 10 7 13 7
Adjusted EBITDA(1) $ (460 ) $ 161 $ (137 ) $ 831
As at December 31, 2013,
(in thousands of dollars)
2013 2012
Cash and cash equivalents $ 12,173 $ 15,008
Total assets $ 33,613 $ 36,409
Total long term liabilities $ 350 $ 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) 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 consolidated financial statements and related notes, management's discussion and analysis and the Annual Information Form for the period ending December 31, 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.
Notes to Consolidated Financial Statements
(In thousands of Canadian dollars unless otherwise stated)
December 31, 2013
As at
December 31,
2013
December 31,
2012
Assets
Current assets
Cash and cash equivalents 12,173 15,008
Accounts receivable and other assets 4,153 3,340
Loans receivable - 148
Prepaid expenses and other assets 791 576
17,117 19,072
Long-term assets
Security deposits 33 19
Property and equipment 675 399
Intangible assets 9,017 10,148
Goodwill 6,771 6,771
33,613 36,409
Current liabilities
Liabilities
Accounts payable and accrued liabilities 3,755 3,902
Current portion of deferred revenue 3,032 4,118
6,787 8,020
Long-term liabilities
Deferred revenue - 208
Finance lease obligations 5 49
Customer deposits 345 202
7,137 8,479
Commitments
Shareholders' equity 26,476 27,930
33,613 36,409
Symbility Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
(In thousands of Canadian dollars except per share data)
Three-month period
ended December 31
Twelve-month period
ended December 31
2013 2012 2013 2012
Revenue 5,471 4,656 21,894 16,537
Cost of sales 1,130 969 4,224 3,202
4,341 3,687 17,670 13,335
Expenses
Sales and marketing 2,324 1,969 10,055 6,239
General and administration 1,955 1,545 7,600 5,745
Research and development 1,371 911 4,552 2,718
Transaction related - (2 ) - 1,831
Other operating 56 29 254 197
5,706 4,452 22,461 16,730
Loss before finance costs (income), net and income tax expense (1,365 ) (765 ) (4,791 ) (3,395 )
Finance costs (income), net (28 ) (11 ) (117 ) (9 )
Current income tax expense 10 7 13 7
Net loss and comprehensive loss for the period (1,347 ) (761 ) (4,687 ) (3,393 )
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 205,375,464 186,278,556 204,897,076 164,561,810

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