Symbility Solutions Inc.
TSX VENTURE : SY

Symbility Solutions Inc.

May 15, 2014 08:00 ET

Symbility Solutions Reports Record Revenue of $7.2 Million and Adjusted EBITDA of $808,000

TORONTO, ONTARIO--(Marketwired - May 15, 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 to $7.182 million for the three months ending March 31, 2014. This compares to revenues of $4.974 million in the same period last year, which represents an increase of 44% or $2.208 million.

The net loss for the three months ending March 31, 2014 was $698,000 and represents a basic and fully diluted loss per share of $(0.00). This compares to net loss of $1.972 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 $18.0 million as at March 31, 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 March 31, 2014 was $808,000 compared to adjusted EBITDA of $(200,000) in the same period last year.

As announced on April 2, 2014, the Corporation signed twenty-one domestic and international customer contracts in the first quarter of 2014. The contracts represent new business for Symbility in Canada, USA, UK and Germany, including a number of different insurers, independent adjusting firms, contractors and other P&C supply chain vendors for the Property Division, and new third-party administrators for Symbility Health. The contracts range in duration from one to five years and the combined annual net new contract value (ACV)2 of these agreements is $1.3 million, with a total contract value (TCV)3 of $4.5 million.

"Our sales performance in the quarter was very solid as our products continue to gain traction in property insurance claims markets globally," commented James Swayze, Chief Executive Officer, Symbility Solutions Inc. "With much of last year focused on building the team and pipeline, it is nice to see the payoff in the form of adoption and growing momentum by new customers, especially internationally where our revenue doubled year-over-year compared to Q1 2013."

Selected Financial Information

For the three months ended March 31, in thousands of dollars 2014 2013
Consolidated Revenue $ 7,182 $ 4,974
Net Loss $ (698 ) $ (1,972 )
Loss per share4 $ (0.00 ) $ (0.01 )
As at March 31, 2014 and December 31, 2013, in thousands of dollars 2014 2013
Cash and cash equivalents $ 18,090 $ 12,173
Total Assets $ 40,395 $ 33,613
Total long term liabilities $ 349 $ 350

The Corporation has provided a reconciliation of adjusted EBITDA to IFRS net loss in the following table:

For the three months ended March 31, in thousands of dollars 2014 2013
IFRS Net Loss $ (698 ) $ (1,972 )
Finance and other income (38 ) (32 )
Depreciation and amortization 447 375
Stock-based compensation 1,094 1,426
Income tax expense 3 3
Adjusted EBITDA $ 808 $ (200 )

Board of Directors of the Corporation granted 300,000 options to an officer in accordance with the Corporation's stock option plan. Each option entitles its holder to purchase one Common Share at the closing price on May 15, 2014 for a period of ten years from the date of grant. The options will vest in three equal tranches with one-third vesting the first anniversary of the grant date, one-third vesting on the second anniversary of the grant date, and one-third vesting on the third anniversary of the grant date.

As previously announced, the Corporation is 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, Ontario, for shareholders, investors and guests.

1 Adjusted EBITDA is defined 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 income (loss) prepared in accordance with IFRS as issued by the IASB.

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; (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.

3 The TCV is the total of the estimated ACV over the term of each the contracts. TCV also includes expected changes from the use of Symbility's products and/or price increases.

4 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, and management's discussion and analysis for the period ending March 31, 2014, copies of which can be found at http://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
March 31,
2014
December 31,
2013
Assets
Current assets
Cash and cash equivalents 18,090 12,173
Accounts receivable and other assets 4,827 4,153
Prepaid expenses and other assets 818 791
23,735 17,117
Long-term assets
Security deposits 52 33
Property and equipment 690 675
Intangible assets 9,147 9,017
Goodwill 6,771 6,771
40,395 33,613
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,595 3,755
Deferred revenue 8,543 3,032
13,138 6,787
Long-term liabilities
Finance lease obligations 4 5
Customer deposits 345 345
13,487 7,137
Shareholders' equity 26,908 26,476
40,395 33,613
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
March 31,
2014 2013
Revenue 7,182 4,974
Cost of sales 1,329 997
5,853 3,977
Expenses
Sales and marketing 3,138 2,734
General and administration 1,946 2,195
Research and development 1,785 987
Other operating (income) (283 ) 62
6,586 5,978
Loss before finance costs (income), net and income tax expense (733 ) (2,001 )
Finance costs (income), net (38 ) (32 )
Income tax expense 3 3
Net loss and comprehensive loss for the period (698 ) (1,972 )
Basic and diluted loss and comprehensive loss per common share (0.00 ) (0.01 )
Weighted average number of common shares outstanding Basic and diluted 205,731,893 203,970,455

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