Symbility Solutions Reports Record Revenue for Q3 2016

TORONTO, Nov. 29, 2016 /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 third quarter ending September 30, 2016.

"We are very pleased with our Q3 results, reporting another record revenue quarter, resulting in an increase to our 2016 guidance from $33 million to meet or exceed $34 million," said James Swayze, Chief Executive Officer of Symbility Solutions. "Our year to date revenue has increased 37% as compared to the same period last year as a consequence of expanding into new geographies, acquiring new customers in our current territories, upselling new products into our existing customer base and gaining market share from competitors in mature markets. We are also happy to report that although we continue to invest meaningfully in new products and new markets, we were Adjusted EBITDA positive for the second consecutive quarter coming in at $264,000 which gives us confidence that we will have an overall positive Adjusted EBITDA for the year in 2016."

THIRD QUARTER FINANCIAL RESULTS

  • Consolidated revenue for the third quarter of 2016 was $8.7 million compared to $7.8 million in the same period in 2015, an increase of 11.6 percent. Consolidated revenue for the nine months ended September 30, 2016 totaled $25.3 million compared to $18.5 million for the nine months ended September 30, 2015, an increase of 36.9 percent.
  • The Company reported an Adjusted EBITDA of $264,000 in Q3 2016 compared to $512,000 in Q3 2015. For the nine months ended September 30, 2016 the Company had an Adjusted EBITDA of ($3,000) compared to an Adjusted EBITDA of ($1,162,000) for the nine months ended September 30, 2015.
  • The Company had a loss per share2 of ($0.00) in the third quarter of 2016 compared to a loss per share of ($0.00) in the third quarter of 2015. The Company had a loss per share of ($0.01) for the nine months ended September 30, 2016 compared to a loss per share of ($0.02) for the same period in 2015.
  • The Company had a cash balance of $6.5 million at September 30, 2016 compared to a cash balance of $6.6 million at December 31, 2015.
  • Net loss for the third quarter of 2016 was ($530,000) compared to ($864,000) in the same period of 2015, a decrease in loss of 38.7 percent. Net loss for the nine months ended September 30, 2016 was ($2,769,000) compared to ($5,187,000) on for the nine months ended September 30, 2015, a decrease in loss of 46.6 percent.

 

SELECTED FINANCIAL INFORMATION

in thousands of dollars

three months ended September 30,


nine months ended September 30,


2016

2015


2016

2015

Revenue

$8,693

$7,787


$25,269

$18,462

Cost of Sales

$3,051

$2,262


$7,928

$5,008

Expenses

$6,168

$6,365


$20,089

$18,637

Net Loss

($530)

($864)


($2,769)

($5,187)

Adjusted EBITDA1

$264

$512


($3)

($1,162)

Loss per share2

($0.00)

($0.00)


($0.01)

($0.02)







As at September  30, 2016, and December 31, 2015, in thousands of dollars

2016

2015

Cash and cash equivalents

$6,503

$6,553

Total Assets

$38,842

$39,155

Total long term liabilities

$397

$354










three months ended September 30,


nine months ended September 30,


2016

2015


2016

2015

IFRS Net Loss

($530)

($864)


($2,769)

($5,187)

Finance income, net

($7)

($6)


($16)

($59)

Depreciation and amortization

$672

$824


$2,050

$2,083

Stock-based compensation

$118

$326


$695

$711

Restructuring Cost

$0

$0


$0

$332

Transaction Related Expense

$0

$202


$0

$895

Income tax expense

$11

$30


$37

$63

Adjusted EBITDA1

$264

$512


($3)

($1,162)






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 tomorrow Wednesday, November 30, 2016, at 10 a.m. ET to discuss these results. All interested parties are welcome to join the live webcast, which can be accessed at http://event.on24.com/r.htm?e=1296160&s=1&k=3F6B1C1FA14AFFF80721A0514C5CF231. 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 September 30, 2016, 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)



September 30,
2016

December 31,
2015

Assets




Current assets





Cash and cash equivalents


6,503

6,553


Accounts receivable


8,433

7,127


Prepaid expenses


1,139

1,101


Tax credits receivables


626

849



16,701

15,630

Long-term assets





Prepaid expenses and Security deposits


160

142


Property and equipment


666

691


Intangible assets


10,552

11,929


Goodwill


10,763

10,763



38,842

39,155

Liabilities




Current Liabilities





Accounts payable and accrued liabilities


6,383

4,949


Deferred revenue


2,951

2,702



9,334

7,651

Long-term liabilities





Accrued liabilities and others


15

8


Customer deposits


382

346



9,731

8,005





Shareholders' equity


29,111

31,150



38,842

39,155

 

 

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
September 30,


nine-month period ended
September 30,


2016

2015


2016

2015







Revenue







Software and other

6,988

6,325


21,066

16,957


Professional services

1,705

1,462


4,203

1,505


Total Revenue

8,693

7,787


25,269

18,462

Cost of sales







Software and other

2,009

1,397


5,268

4,118


Professional services

1,042

865


2,660

890


Total cost of sales

3,051

2,262


7,928

5,008

Gross Profit

5,642

5,525


17,341

13,454







Expenses







Sales and Marketing

3,163

3,343


10,306

8,719


General and administration

2,361

1,843


6,385

5,267


Research and development

883

943


2,676

3,208


Depreciation, amortization, and foreign exchange foreign exchange

(239)

34


722

216


Transaction and restructuring

-

202


-

1,227


6,168

6,365


20,089

18,637







Loss before finance costs (income), net and income tax expense

(526)

(840)


(2,748)

(5,183)


Finance income, net

(7)

(6)


(16)

(59)


Income tax expense

11

30


37

63







Net loss and comprehensive loss for the period

(530)

(864)


(2,769)

(5,187)







Basic and diluted loss and comprehensive loss per common share

(0.00)

(0.00)


(0.01)

(0.02)

 

SOURCE Symbility Solutions Inc.

Image with caption: "Symbility Solutions Inc. (CNW Group/Symbility Solutions Inc.)". Image available at: http://photos.newswire.ca/images/download/20161129_C6976_PHOTO_EN_828182.jpg



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
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