Three Month Revenue Increases 22%
Wednesday, November 19, 2014
Symbility Solutions Announces Third Quarter 2014 Financial Results
08:00 EST Wednesday, November 19, 2014
TORONTO, ON --(Marketwired - November 19, 2014) - Symbility Solutions Inc. (the "Corporation"), (TSX VENTURE: SY), a global software company dedicated to developing cloud-based applications for the property and health insurance industries, today reported that revenue increased to $6.6 million for the three months ending September 30, 2014. This compares to revenues of $5.4 million in the same period last year, which represents an increase of 22%. This brings the nine month revenue total to $20.9 million versus $16.4 million for the same period last year, representing a 27% increase year to date.
The net loss for the three months ending September 30, 2014 was $259,000 and represents a basic and fully diluted loss per share of ($0.00). This compares to net loss of $1.0 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 $12.9 million as at September 30, 2014.
The Corporation believes adjusted EBITDA1is 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 September 30, 2014 was $597,000 compared to adjusted EBITDA of ($112,000) in the same period last year. Adjusted EBITDA for the nine months ending September 30, 2014 was $2.0 million compared to adjusted EBITDA of $323,000 in the same period last year.
Symbility's Chief Executive Officer, James Swayze, commented, "As of the end of the third quarter, Symbility has signed 52 new domestic and international customer contracts. These contracts represent new business for us in North America and Europe, including insurance companies and P&C supply chain vendors for the Property Division, and the first insurance carrier and new third-party administrators for Symbility Health that represent a combined annual contract value (ACV)2 of $3.1 million. These contract signings position us well for 2015."
Symbility Solutions will host a conference call today at 2:00 p.m. ET to provide a business update and review financial results for the third-quarter ending September 30, 2014. The conference call will be webcast. All interested parties are welcome to join the live webcast, which can be accessed at https://www.gowebcasting.com/6134. Participants may also join the conference call by dialing toll free 1-877-223-4471 or 1-647-788-4922 for international participants.
Selected Financial Information
| | | | | |
| | | Three-months ended
September 30, | | Nine-months ended
September 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Revenue | | $6,608 | | $5,430 | | $20,856 | | $16,424 |
| Cost of Sales | | $1,222 | | $1,104 | | $3,781 | | $3,207 |
| Expenses | | $5,673 | | $5,386 | | $18,238 | | $16,642 |
| Net Loss | | ($259) | | ($1,032) | | ($1,058) | | ($3,339) |
| Adjusted EBITDA1 | | $597 | | ($112) | | $2,013 | | $323 |
| Loss per share 3 | | ($0.00) | | ($0.01) | | ($0.01) | | ($0.02) |
| | | | | | | | | |
| | | | | |
| | | | | |
| As at September 30, 2014 and December 31, 2013 | | 2014 | | 2013 |
| Cash and cash equivalents | | $12,922 | | $12,173 |
| Total assets | | $36,994 | | $33,613 |
| Total long term liabilities | | $346 | | $350 |
| | | | | |
| | | | | |
| | | Three-months ended
September 30, | | Nine-months ended
September 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| IFRS Net Loss | | ($259) | | ($1,032) | | ($1,058) | | ($3,339) |
| Finance income, net | | (37) | | (28) | | (117) | | (89) |
| Depreciation and amortization | | 482 | | 410 | | 1,400 | | 1,193 |
| Stock-based compensation | | 263 | | 538 | | 1,637 | | 2,555 |
| Transaction related expenses | | 139 | | - | | 139 | | - |
| Income tax expense | | 9 | | - | | 12 | | 3 |
| Adjusted EBITDA1 | | $597 | | ($112) | | $2,013 | | $323 |
| | | | | | | | | |
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. 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 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; and (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 and there may be material, significant variances in actual revenue on these new contracts.
3 In Canadian dollars, rounded to the nearest cent.