Symbility Solutions Announces Fourth Consecutive Quarter of Record Revenue With Q1 2017 Financial Results

TORONTO, May 18, 2017 /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, 2017.

"We are very pleased with our growth in 2017 thus far, as we have now achieved a new high in revenue for the fourth consecutive quarter," said James Swayze, Chief Executive Officer of Symbility Solutions. "With 18 percent year-over-year growth, we are on plan for the year and can confidently reiterate our management guidance of $40 - $42 million in revenue expected in fiscal year 2017. This revenue growth is outpacing our expenses revealing our planned operating leverage which gives us equal confidence in our $2 - $3 million expected Adjusted EBITDA1 as per guidance."

Mr. Swayze continued, "The greatest amount of growth we have experienced thus far is to our sales pipeline. After years of watching and waiting, it appears that the insurance industry is finally embracing Fintech and Insuretech solutions to streamline their business operations. Having built a reputation through testimonials from multinational insurance companies, Symbility is considered an established player with leading-edge development capabilities and a secure platform, which few other firms can boast. With the addition of Artificial Intelligence to our product stack and the ability to leverage a billion data points in our cloud, we have enhanced our profile in multiple markets which is growing our pipeline of opportunities."

FIRST QUARTER FINANCIAL RESULTS

  • Consolidated revenue for the first quarter of 2017 was $9.3 million compared to $7.9 million in the same period in 2016, an increase of 18 percent.

  • The Company reported an Adjusted EBITDA of ($363,000) in Q1 2017 compared to an Adjusted EBITDA of ($553,000) in Q1 2016.

  • The Company had a loss per share2 of ($0.00) in the first quarter of 2017 compared to a loss per share of ($0.01) in the first quarter of 2016.

  • The Company had a cash balance of $7.9 million at March 31, 2017 compared to a cash balance of $8.0 million at December 31, 2016.

  • Net loss for the first quarter of 2017 was ($1.1) million compared to ($1.52) million in the same period in 2016, a decrease in loss of 25 percent.

 

SELECTED FINANCIAL INFORMATION

in thousands of dollars


three months ended March 31,



2017

2016

Revenue


$9,335

$7,911

Cost of Sales


$2,982

$2,276

Expenses


$7,476

$7,155

Net Loss


($1,134)

($1,521)

Adjusted EBITDA1


($363)

($553)

Loss per share2


($0.00)

($0.01)

 

As at March  31, 2017, and December  31, 2016, in thousands of dollars

2017

2016

Cash and cash equivalents

$7,942

$7,976

Total Assets

$38,794

$38,021

Total long term liabilities

$395

$396

 

in thousands of dollars

three months ended March 31,


2017

2016

IFRS Net Loss

($1,134)

($1,521)

Finance income, net

(4)

(6)

Depreciation and amortization

608

694

Stock-based compensation

152

273

Transaction Related Expense

-

-

Income tax expense

15

7

Adjusted EBITDA

($363)

($553)

 

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 today, Thursday, May 18, 2017, at 11 a.m. EDT to review highlights of its quarterly results. All interested parties are welcome to join the live webcast, which can be accessed at http://event.on24.com/r.htm?e=1407832&s=1&k=0A521A7CED5217F3B1DCDC7F5D52A5BA. 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 and health industries, Symbility has established itself as a partner that puts security, efficiency and customer experience first. Symbility PROPERTY™ brings smarter thinking to property insurance. Symbility HEALTH™ helps benefits professionals build their brands and businesses. Our strategic services team, Symbility INTERSECT™ empowers a variety of businesses with smarter mobile and IoT product development strategy, design thinking and engineering excellence. With our three segments pushing industries forward, Symbility proves 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 Corporation, 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 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 March 31, 2017, 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.
Consolidated Statements of Financial Position
(Unaudited- In thousands of Canadian dollars)


As At


March 31,

December 31,


2017

2016

Assets



Current assets




Cash and cash equivalents

7,942

7,976


Accounts receivable

8,067

6,488


Prepaid expenses

1,211

1,217


Tax credits receivables

482

745


17,702

16,426

Long-term assets




Prepaid expenses

78

33


Security deposits

114

114


Property and equipment

605

626


Intangible assets

9,532

10,059


Goodwill

10,763

10,763


38,794

38,021

Liabilities



Current Liabilities




Accounts payable

1,478

2,288


Accrued liabilities

5,090

4,025


Provisions

870

845


Deferred revenue

3,290

1,836


10,728

8,994

Long-term liabilities




Accrued liabilities and others

13

14


Customer deposits

382

382


11,123

9,390




Shareholders' equity

27,671

28,631


38,794

38,021

 

Symbility Solutions Inc.
Consolidated Statements of Loss and Comprehensive Loss
(Unaudited - In thousands of Canadian dollars, except per share data)


Three-month period ended
March, 31


2017

2016

Revenue




Software and other

7,249

6,859


Professional services

2,086

1,052


Total revenue

9,335

7,911

Cost of sales




Software and other

1,616

1,515


Professional services

1,366

761


Total cost of sales

2,982

2,276




Gross profit

6,353

5,635




Expenses




Sales and marketing

3,775

3,578


General and administration

2,448

2,006


Research and development

1,133

905


Depreciation, amortization, and foreign exchange

120

666


7,476

7,155




Loss before finance income, net and income tax expense

(1,123)

(1,520)


Finance income, net

(4)

(6)


Income tax expense

15

7





Net loss and comprehensive loss for the period

(1,134)

(1,521)




Basic and diluted loss and comprehensive loss per common share

(0.00)

(0.01)




Weighted average number of common shares outstanding




Basic & Diluted

238,921,896

237,541,342

 

SOURCE Symbility Solutions Inc.

For further information: James R. Swayze, Chief Executive Officer, (647) 775- 8603, jswayze@symbilitysolutions.com; Blair R. Baxter, Chief Financial Officer, (647) 775-8608, bbaxter@symbilitysolutions.com; Lucy De Oliveira, Global Marketing Director, (647) 775-8607, ldeoliveira@symbilitysolutions.com; Babak Pedram, Investor Relations, (416) 644-5081, bpedram@virtusadvisory.com

RELATED LINKS
www.symbilitysolutions.com

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