TORONTO, May 18, 2018 /CNW/ - Symbility Solutions Inc.
("Symbility" or the "Company") (TSX.V: SY), a global software
company focused on modernizing the insurance industry, today
announced financial results for the first quarter ending
March 31, 2018.
"I am pleased to report another strong quarter as we continue to
grow revenue and show profitability, a trend we expect to continue
going forward," said James Swayze,
CEO of Symbility Solutions. "With the sale of Symbility Health, we
have realigned our focus around our P&C Insurance platform and
are looking to leverage our strengthened balance sheet to drive
scale into the business."
Mr. Swayze continued, "The success we are enjoying in the UK
through the launch of new products last year is now translating
into pipeline growth in multiple markets. Insurtech momentum is
compelling top 10 companies to challenge the status quo of their
operations and begin testing new claim submission and settlement
products which is seen as Symbility's strength. Over the course of
this year, we look forward to expanding the reach of our
consumer-facing product LINK, as policyholders continue to demand
more transparency from their insurance providers."
2018 GUIDANCE
In 2018, Symbility estimates that it will generate revenue of
$40 million, compared to $35.6 revenue in 2017 from continuing operations.
This revenue growth is expected to generate Adjusted
EBITDA1 in the range of $4
million to $5 million,
compared to $3.9 million Adjusted
EBITDA in 2017 from continuing operations. The Company also expects
to have positive cash flow.
SYMBILITY HEALTH
As announced on May 8, 2018,
Symbility Solutions sold its Symbility Health division for
$16.5 million, subject to working
capital adjustments. This divestiture allows Symbility to focus on
the growth and expansion of its P&C Insurance platform which is
now offered in eight countries on four continents. The cash
proceeds of this deal give Symbility a strengthened balance sheet
in excess of $20 million which will
allow the company to contemplate further transformative M&A as
it continues to strategically review growth and scale
opportunities.
FIRST QUARTER FINANCIAL RESULTS
- Consolidated revenue from continuing operations for the first
quarter of 2018 ended March 31, 2018
was $8.6 million compared to
$7.7 million in the same period in
2017 from containing operations, an increase of 11 per cent.
- The Company reported Adjusted EBITDA from continuing operations
of $0.8 million in first quarter of
2018 compared to an Adjusted EBITDA loss of ($0.4) million in the first quarter of 2017, an
improvement of 325 per cent.
- Net income and comprehensive income from continuing operations
for the first quarter of 2018 was $0.1
million compared to a net loss of ($1.1) million for the same period in 2017.
- The Company had income per share2 of $0.00 in the first quarter of 2018 compared to a
loss per share of ($0.00) in the
first quarter of 2017.
- The Company had a cash balance of $10.9
million as at March 31, 2018
compared to a cash balance of $8.2
million as at December 31,
2017.
SELECTED FINANCIAL INFORMATION
in thousands of
dollars
|
three months ended
March 31,
|
Continuing
Operations
|
2018
|
2017
|
Revenue
|
$8,552
|
$7,738
|
Cost of
Sales
|
$2,121
|
$2,322
|
Expenses
|
$6,340
|
$6,535
|
Net Income
(Loss)
|
$100
|
($1,130)
|
Adjusted
EBITDA1
|
$829
|
($369)
|
Income (Loss) per
share2
|
$0.00
|
($0.00)
|
|
As
at
|
March
31,
2018
|
December
31,
2017
|
Cash and cash
equivalents
|
$10,942
|
$8,238
|
Total
Assets
|
$39,679
|
$37,971
|
Total long-term
liabilities
|
$6
|
$389
|
|
|
three months ended
March 31,
|
Reconciliation of
Adjusted EBITDA
|
2018
|
2017
|
IFRS Net Income
(Loss)
|
$175
|
($1,134)
|
Discontinued
operations
|
(75)
|
4
|
Finance income,
net
|
(17)
|
(4)
|
Depreciation and
amortization
|
454
|
604
|
Stock-based
compensation
|
159
|
146
|
Transaction Related
Expense
|
125
|
-
|
Income tax
expense
|
8
|
15
|
Adjusted
EBITDA1 (Continuing Operations)
|
$829
|
($369)
|
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.
|
INVESTOR CONFERENCE CALL
Symbility will host a live webcast and conference call
Friday, May 18, 2018, at 11 a.m. Eastern Time to review highlights of its
quarterly results, recent transaction news, discussion on guidance
and general business update. All interested parties are welcome to
join the live webcast, which can be accessed at
https://event.on24.com/wcc/r/1668865/A2E153DB5C827403F60809DBB766ECB8. Participants
may also join the conference call by dialing toll free (888)
231-8191 or (647) 427-7450 for international participants. A replay
of the webcast will be available on Symbility's website.
ABOUT SYMBILITY
Symbility (TSX.V: SY) believes in creating world-class
experiences that simplify business and improve lives. With a
history in modernizing insurance claims solutions for the property
& casualty industry, Symbility has established itself as a
partner that puts security, efficiency and customer experience
first. Symbility PROPERTYâ„¢ brings smarter thinking to property
insurance. Our strategic services team, Symbility INTERSECTâ„¢
empowers a variety of businesses with smarter mobile and IoT
product development strategy, design thinking and engineering
excellence. We push industries forward and prove that change for
the better is entirely possible. symbilitysolutions.com
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release may contain forward-looking statements
with respect to the Company, its products and operations and the
contemplated financing. 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 Company 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 Company which are available
at www.sedar.com. The cautionary statements
qualify all forward-looking statements attributable to the Company
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 Company has no obligation to update such
statements.
This press release should be read in conjunction with
Company's consolidated financial statements and related notes, and
management's discussion and analysis for the quarter ending
March 31, 2018, 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)
|
|
|
March
31,
2018
|
December
31,
2017
|
Assets
Current
assets
|
|
|
|
Cash and cash
equivalents
|
10,942
|
8,238
|
|
Accounts
receivable
|
5,145
|
7,651
|
|
Prepaid
expenses
|
1,517
|
1,614
|
|
Tax credits
receivables
|
447
|
665
|
|
Assets held for sale including cash
|
18,051
2,306
|
18,168
-
|
|
20,357
|
18,168
|
Long-term
assets
|
|
|
|
Prepaid
expenses
|
44
|
54
|
|
Security
deposits
Property and
equipment
|
115
455
|
115
502
|
|
Intangible
assets
|
7,945
|
8,369
|
|
Goodwill
|
10,763
|
10,763
|
|
39,679
|
37,971
|
Liabilities
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
Accrued
liabilities
Provisions
|
696
3,643
174
|
1,786
4,079
220
|
|
Deferred
revenue
|
3,772
|
2,121
|
|
8,285
|
8,206
|
|
Liabilities directly
associated with the assets
held for
sale
|
1,659
|
-
|
|
9,944
|
8,206
|
Long-term
liabilities
|
|
|
|
Accrued liabilities
and others
|
6
|
7
|
|
Customer
deposits
|
-
|
382
|
|
9,950
|
8,595
|
|
|
|
Shareholders'
equity
|
29,729
|
29,376
|
|
39,679
|
37,971
|
Symbility
Solutions Inc.
Interim Consolidated Statements of Income (Loss) and Comprehensive
Income (Loss)
Unaudited - In thousands of Canadian dollars, except per share
data
|
|
|
three-month period
ended
March
31,
|
|
2018
|
2017
|
Continuing
Operations
|
|
|
Revenue
|
|
|
|
Software and
other
|
5,699
|
5,652
|
|
Professional
services
|
2,853
|
2,086
|
|
Total
Revenue
|
8,552
|
7,738
|
Cost of
sales
|
|
|
|
Software and
other
|
780
|
956
|
|
Professional
services
|
1,341
|
1,366
|
|
Total cost of
sales
|
2,121
|
2,322
|
|
|
|
Gross
Profit
|
6,431
|
5,416
|
Expenses
|
|
|
|
Sales and
Marketing
|
3,244
|
3,496
|
|
General and
administration
|
2,285
|
2,233
|
|
Research and
development
|
794
|
689
|
|
Depreciation,
amortization, and foreign exchange
|
(108)
|
117
|
|
Transaction
|
125
|
-
|
|
6,340
|
6,535
|
Income (loss)
before finance income, net and
income tax expense
|
91
|
(1,119)
|
|
Finance income,
net
|
(17)
|
(4)
|
Income (Loss)
before income tax expense
|
108
|
(1,115)
|
|
Income tax
expense
|
8
|
15
|
|
|
|
Net income (loss)
and comprehensive income
(loss) for the period from continuing operations
|
100
|
(1,130)
|
Discontinued
Operations
Net income (loss)
for the period from
discontinued operations
|
75
|
(4)
|
|
|
|
Net income (loss)
and comprehensive income
(loss) for the period
|
|
|
|
175
|
(1,134)
|
Basic and diluted
income and comprehensive
income per common share
|
0.00
|
(0.00)
|
|
|
|
Basic and diluted
income and comprehensive
income per common share from continuing
operations
|
|
|
|
0.00
|
(0.00)
|
Weighted average
number of common shares
outstanding
|
|
|
|
Basic
|
239,473,840
|
238,921,896
|
|
Diluted
|
247,469,229
|
238,921,896
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/symbility-solutions-reports-fourth-consecutive-profitable-quarter-with-q1-2018-financial-results-300650786.html
SOURCE Symbility Solutions Inc.