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Symbility Solutions Reports Third Quarter 2018 Financial Results

November 28, 2018

Canada NewsWire

TORONTO, Nov. 28, 2018

TORONTO, Nov. 28, 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 third quarter ending September 30, 2018.

Symbility Logo (CNW Group/Symbility Solutions Inc.)

THIRD QUARTER FINANCIAL RESULTS

Consolidated revenue for the third quarter of 2018 ended September 30, 2018 was $9.9 million compared to $9.8 million in the same period in 2017, an increase of one percent. Consolidated revenue for the nine months ended September 30, 2018 was $27.4 million compared to $25.8 million over the same period in 2017, an increase of seven percent.
The Company reported Adjusted EBITDA¹ from continuing operations of $1.4 million in third quarter of 2018 compared to an Adjusted EBITDA of $1.6 million in the third quarter of 2018, a decrease of 12 percent. Adjusted EBITDA for the nine months ended September 30, 2018 was $2.4 million compared to $1.6 million in the same period in 2017, an increase of 55 percent.
The Company had income per share² from continuing operations of $0.00 in the third quarter of 2018 compared to an income per share from continuing operations of $0.00 in the third quarter of 2017.
The Company had a cash balance of $23.1 million as at September 30, 2018 compared to a cash balance of $8.2 million as at December 31, 2017.
Net income and comprehensive income from continuing operations for the third quarter of 2018 was $861,000 compared to a net income of $562,000 for the same period in 2017. Net income (loss) and comprehensive income (loss) from continuing operations for the nine months ended September 30, 2018 was $390,000 compared to ($1.5) million over the same period in 2017.
Net income from discontinued operations was $56,000 for the third quarter of 2018 compared to a net income of $18 in the third quarter of 2017. Net Income from discontinued operations for the nine months ended September 30, 2018 was $15.2 million compared to a net income of $8,000 for the nine months ended September 30, 2017.

SELECTED FINANCIAL INFORMATION

in thousands of dollars	three months ended September 30		nine months ended September 30,
Continuing Operations	2018	2017	2018	2017
Revenue	$9,924	$9,908	$27,438	$25,751
Cost of Sales	$2,538	$2,664	$6,979	$7,401
Expenses	$6,632	$6,587	$20,229	$19,803
Net Income (Loss)	$861	$562	$390	($1,461)
Adjusted EBITDA¹	$1,377	$1,566	$2,423	$1,567
Income (Loss) per share²	$0.00	$0.00	$0.00	($0.01)

in thousands of dollars	three months ended September 30,		nine months ended September 30,
	2018	2017	2018	2017
Net Income (Loss)	$917	$580	$15,579	($1,453)
Income (Loss) per share²	$0.00	$0.00	$0.06	($0.01)

As at September 30, 2018 and December 31, 2017	2018	2017
Cash and cash equivalents	$23,132	$8,238
Total Assets	$53,722	$37,971
Total long term liabilities	$92	$389

	three months ended September 30,		nine months ended September 30,
Reconciliation of Adjusted EBITA	2018	2017		2018	2017
IFRS Net Income (Loss)	$917	$580		$15,579	($1,453)
Discontinued operations	($56)	($18)		($15,189)	($8)
Finance income, net	(78)	(3)		(142)	(12)
Depreciation and amortization	426	451		1,321	1,547
Stock-based compensation	53	172		379	559
Transaction Expense	144	386		493	914
Income tax expense	(29)	(2)		(18)	20
Adjusted EBITDA¹ (Continuing Operations)	$1,377	$1,566		$2,423	$1,567

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.

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. 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 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 September 30, 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)
	September 30, 2018	December 31, 2017
Assets
Current assets
Cash and cash equivalents	23,132	8,238
Accounts receivable	6,324	7,651
Prepaid expenses	1,473	1,614
Tax credits receivables	768	665
	31,697	18,168

Long-term assets

Restricted Cash Deposits	3,400	-
Prepaid expenses	26	54
Security deposits	141	115
Property and equipment	497	502
Intangible assets	7,198	8,369
Goodwill	10,763	10,763
	53,722	37,971

Liabilities


Current Liabilities
Accounts payable and accrued liabilities	1,252	1,786
Accrued liabilities	3,072	4,079
Provisions	784	220
Deferred revenue	2,634	2,121

Long-term liabilities	7,742	8,206
Accrued liabilities and others	92	7
Customer deposits	-	382
	7,834	8,595

Shareholders' equity	45,888	29,376
	53,722	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 September 30,		nine-month period ended September 30,
Continuing Operations	2018	2017	2018	2017
Revenue
Software and other	6,139	6,973	18,084	19,015
Professional services	3,785	2,835	9,354	6,736
Total Revenue	9,924	9,808	27,438	25,751

Cost of sales
Software and other	793	1,303	2,461	3,220
Professional services	1,745	1,361	4,518	4,181
Total cost of sales	2,538	2,664	6,979	7,401
Gross Profit	7,386	7,144	20,459	18,350
Expenses
Sales and Marketing	3,292	3,008	10,184	9,708
General and administration	2,176	2,302	6,750	6,544
Research and development	765	752	2,488	2,263
Depreciation, amortization, and foreign exchange	255	139	314	374
Transaction	144	386	493	914
	6,632	6,587	20,229	19,803
Income (loss) before finance income, net and income tax expense	754	557	230	(1,453)
Finance income, net	(78)	(3)	(142)	(12)
Income (loss) Before Income Tax Expense	832	560	372	(1,441)
Income Tax Expense (recovery)	(29)	(2)	(18)	20
Net Income (loss) and comprehensive Income (loss) for the period from continuing operations	861	562	390	(1,461)
Discontinued Operations
Net income for the period from discontinued operations	56	18	15,189	8
Net income (loss) and comprehensive income (loss) for the period	917	580	15,579	(1,453)
Basic and diluted income (loss) and comprehensive income (loss) per common share from continuing operations	0.00	0.00	0.00	(0.01)
Basic and diluted income (loss) and comprehensive income (loss) per common share	0.00	0.00	0.06	(0.01)
Weighted average number of common shares outstanding
Basic	241,365,039	239,473,840	240,231,660	239,130,208
Diluted	251,921,606	247,870,944	249,352,340	239,130,208