TORONTO, ON—(Marketwired – August 17, 2015) – Symbility Solutions Inc. (the “Corporation”) (TSX VENTURE: SY), a global software company dedicated to developing applications for the insurance industry, today announced financial results for its second quarter 2015, ended June 30, 2015.
In the three months ended June 30, 2015, consolidated revenue was $5.6 million, this compares to revenues of $7.1 million in the same period last year. Excluding the impact of the one customer termination we announced last year, revenue in the current period of $5.6 million compares to $4.7 million in the same period last year.
The net loss for the three months ending June 30, 2015 was $2.4 million and represents a basic and fully diluted loss per share of ($0.01). This compares to net loss of $101,000 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 $7.9 million as at June 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 June 30, 2015, was ($797,000) compared to Adjusted EBITDA of $610,000 in the same period last year.
“The second quarter was transformational for Symbility with our revenue growth shifting internationally. We now have 200+ contracts in the UK and we completed the successful rollout of the first two European regions of the new Fortune 100 customer we announced in December of 2014,” stated James Swayze, Chief Executive Officer of Symbility Solutions Inc. “With our revenue and sales opportunities now equally distributed between Canada, the USA and our International operations, in late Q2 we realigned our resources to mirror the geographic footprint of our revenue, with an annual cash cost savings of approximately $2.0 million. Now that our infrastructure and pipeline are properly aligned, we look forward to a successful second half of the year and a number of new contracts to set up a very positive 2016.”
Selected Financial Information
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Three months ended June 30,
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Six months ended June 30,
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2015
Â
2014
Â
2015
Â
2014
Revenue
$5,628
Â
$7,066
Â
$10,675
Â
$14,248
Cost of Sales
$1,426
Â
$1,229
Â
$2,745
Â
$2,559
Expenses
$6,594
Â
$5,978
Â
$12,273
Â
$12,564
Net Loss
($2,395)
Â
($101)
Â
($4,323)
Â
($799)
Adjusted EBITDA
($797)
Â
$610
Â
($1,674)
Â
$1,417
Loss per share2
($0.01)
Â
($0.00)
Â
($0.02)
Â
($0.00)
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Â
Â
Â
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As at June 30, 2015, and December 31, 2014, in thousands of dollars
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2015
Â
2014
Cash and cash equivalents
Â
$7,893
Â
$12,612
Total Assets
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$40,939
Â
$35,532
Total long term liabilities
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$384
Â
$409
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Three months ended June 30,
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Six months ended June 30,
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2015
Â
2014
Â
2015
Â
2014
IFRS Net Loss
($2,395)
Â
($101)
Â
($4,323)
Â
($799)
Finance income, net
(12)
Â
(41)
Â
(53)
Â
(80)
Depreciation and amortization
700
Â
471
Â
1,259
Â
918
Stock–based compensation
127
Â
280
Â
385
Â
1,374
Other non–operating
768
Â
–
Â
1,025
Â
–
Income tax expense
15
Â
1
Â
33
Â
4
Adjusted EBITDA
($797)
Â
$610
Â
($1,674)
Â
$1,417
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Â
Â
Â
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BNOTIONS Acquisition
The purchase price of BNOTIONS, as previously announced on June 30, 2015, was $1 million cash on closing, and up to $1.1 million cash paid over the next 10 months (with standard adjustments for working capital changes and a portion of which is subject to financial performance of BNOTIONS), and 5.5 million Common Shares at $0.315 per share and 1 million Common Share purchase warrants for three years at a price of $0.40 for total consideration of approximately $3.9 million. In addition, the Corporation issued 2 million Restricted Shares (including 526,000 Restricted Shares to senior management) at $0.315 per share and issued 1.6 million Stock Options (including 500,000 to senior management) to employees of BNOTIONS on June 30, 2015 at a price of $0.34 per share.
Second Quarter Results Conference Call
The Corporation will host a conference call today, Monday, August 17, 2015, at 10 a.m. ET to provide a business update and review financial results for the second 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/6825. Participants may also join the conference call by dialing toll free 1–877–291–4570 or 1–647–788–4919 for international participants.
1Adjusted 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.
2In 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 Propertyâ„¢ and Symbility Healthâ„¢, 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.
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 June 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.
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Symbility Solutions Inc.
Interim Consolidated Statements of Financial Position
(Unaudited– In thousands of Canadian dollars)
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Â
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 As At
Â
Â
June 30,
2015
Â
December 31,
2014
Assets
Â
Â
Â
Â
Â
Current assets
Â
Â
Â
Â
Â
Â
Cash and cash equivalents
Â
7,893
Â
12,612
Â
Â
Accounts receivable and other assets
Â
5,789
Â
4,879
Â
Â
Prepaid expenses and other assets
Â
718
Â
704
Â
Â
Tax receivables
Â
1,095
Â
895
Â
Â
Â
Â
Â
Â
Â
Long–term assets
Â
15,495
Â
19,090
Â
Â
Security deposits and other assets
Â
80
Â
90
Â
Â
Property and equipment
Â
817
Â
747
Â
Â
Intangible assets
Â
13,796
Â
8,657
Â
Â
Goodwill
Â
10,751
Â
6,948
Â
Â
40,939
Â
35,532
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Liabilities
Â
Â
Â
Â
Â
Current Liabilities
Â
Â
Â
Â
Â
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Accounts payable and accrued liabilities
Â
6,330
Â
5,136
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Â
Deferred revenue
Â
2,041
Â
2,135
Â
Â
Â
Â
Â
Â
Â
Long–term liabilities
Â
8,371
Â
7,271
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Â
Accrued liabilities and others
Â
39
Â
64
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Â
Customer deposits
Â
345
Â
345
Â
Â
8,755
Â
7,680
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Â
Â
Â
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Shareholders' equity
Â
32,184
Â
27,852
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Â
40,939
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35,532
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Â
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Symbility Solutions Inc.
Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited – In thousands of Canadian dollars, except per share data)
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Â
Three–month period endedÂ
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Six–month period ended
June 30,
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June 30,
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2015
Â
2014
Â
2015
Â
2014
Revenue
5,628
Â
7,066
Â
10,675
Â
14,248
Cost of sales
1,426
Â
1,229
Â
2,745
Â
2,559
Â
4,202
Â
 5,837
Â
7,930
Â
 11,689
Expenses
Â
Â
Â
Â
Â
Â
Â
Â
Sales and marketing
2,896
Â
2,478
Â
5,375
Â
5,615
Â
Research and development
1,159
Â
1,703
Â
3,424
Â
3,649
Â
General and administration
1,708
Â
1,526
Â
2,266
Â
3,311
Â
Depreciation, amortization, foreign exchange loss (gain)
63
Â
271
Â
183
Â
(11)
Â
Other non–operating
768
Â
–
Â
1,025
Â
–
Â
6,594
Â
5,978
Â
12,273
Â
12,564
Â
Â
Â
Â
Â
Â
Â
Â
Loss before finance costs (income), net and income tax expense
(2,392)
Â
(141)
Â
(4,343)
Â
(875)
Â
Â
Â
Â
Â
Â
Â
Â
Â
Â
Finance income, net
(12)
Â
41
Â
(53)
Â
(80)
Â
Income tax expense
15
Â
1
Â
33
Â
4
Â
Â
Â
Â
Â
Â
Â
Â
Net loss and comprehensive loss for the period
(2,395)
Â
(101)
Â
(4,323)
Â
(799)
Â
Â
Â
Â
Â
Â
Â
Â
Basic and diluted loss and comprehensive loss per common share
(0.01)
Â
(0.00)
Â
(0.02)
Â
(0.00)
Â
Â
Â
Â
Â
Â
Â
Â
Weighted average number of common shares outstanding
Â
Â
Â
Â
Â
Â
Â
Â
Â
Basic and diluted
226,966,582
Â
209,061,193
Â
218,557,265
Â
207,405,740