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Symbility Solutions Reports Second Quarter 2018 Financial Results

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Symbility Solutions Reports Second Quarter 2018 Financial Results

PR Newswire

TORONTO, Aug. 24, 2018 /PRNewswire/ - Symbility Solutions Inc. ("Symbility" or the "Company") (TSX.V: SY), a global software company focused on modernizing the insurance industry, announced financial results for the second quarter ending June 30, 2018.

Symbility Solutions Inc. (CNW Group/Symbility Solutions Inc.)

"The first half of 2018 saw global economic losses from natural disasters down 64 percent from the 10-year average1, resulting in the lowest claims volumes in five years2. Although Symbility achieved 10 percent revenue growth over the first half of 2018, the steep decline in weather severity has impacted our property division's revenue." said James Swayze, CEO of Symbility. "Most encouraging over the first half is that the number of contract signings in our Property segment increased 148 percent in 2018 as compared to 2017. The combination of contract signings, pipeline expansion, new product launches and the strength of our strategic services allows us to reiterate our revenue guidance of $40 million for 2018 and feel very confident about continued, strong growth in the coming years."

SECOND QUARTER FINANCIAL RESULTS

  • Consolidated revenue for the second quarter of 2018 ended June 30, 2018, was 9.0 million compared to $8.2 million in the same period in 2017, an increase of 9 percent. Consolidated revenue for the six months ended June 30, 2018, was $17.5 million compared to $15.9 million over the same period in 2017, an increase of 10 percent.

  • The Company reported Adjusted EBITDA3 of $0.2 million in second quarter of 2018 compared to an Adjusted EBITDA of $0.4 million in the second quarter of 2017, a decrease of 40 percent. Adjusted EBITDA for the six months ended June 30, 2018, was $1.1 million compared to $2.0 thousand in the same period in 2017.

  • The Company had loss per share from continuing operations4 of ($0.00) in the second quarter of 2018 compared to a loss per share from continuing operations of ($0.00) in the second quarter of 2017.

  • The Company had a cash balance of $22.1 million as at June 30, 2018, compared to a cash balance of $8.2 million as at Dec. 31, 2017.

  • Net loss and comprehensive loss from continuing operations for the second quarter of 2018 was ($0.6) million compared to a net loss of ($0.9) million for the same period in 2017. Net loss and comprehensive loss from continuing operations for the six months ended June 30, 2018, was ($0.5) million compared to ($2.0) million over the same period in 2017.

  • Net income was $14.5 million for the second quarter of 2018 compared to a loss of ($0.9) million in the second quarter of 2017. Net Income for the six months ended June 30, 2018, was $14.7 million compared to a loss of ($2.0) million for the six months ended June 30, 2017.

SELECTED FINANCIAL INFORMATION

in thousands of dollars

three months ended June 30

six months ended June 30,

Continuing Operations

2018

2017

2018

2017

Revenue

$8,962

$8,205

$17,514

$15,943

Cost of Sales

$2,320

$2,415

$4,441

$4,737

Expenses

$7,257

$6,681

$13,597

$13,216

Net Loss

($571)

($893)

($471)

($2,023)

Adjusted EBITDA3

$224

$371

$1,052

$2

Loss per share4

($0.00)

($0.00)

($0.00)

($0.01)

 

in thousands of dollars

three months ended June 30

six months ended June 30,


2018

2017

2018

2017

Net Income (loss)

$14,487

($899)

$14,662

($2,033)

Income (loss) per share2

$0.06

($0.00)

$0.06

($0.01)

 

As at

June 30,

2018

Dec. 31, 2017

Cash and cash equivalents

$22,076

$8,238

Total Assets

$52,258

$37,971

Total long term liabilities

$107

$389

 



three months ended June 30,


six months ended June 30,

Reconciliation of Adjusted EBITDA


2018

2017


2018

2017

IFRS Net Income (Loss)


$14,487

($899)


$14,662

($2,033)

Discontinued operations


($15,058)

$6


($15,133)

10

Finance income, net


(47)

(5)


(64)

(9)

Depreciation and amortization


448

493


901

1,097

Stock-based compensation


167

241


326

387

Transaction Expense


224

528


349

528

Income tax expense


3

7


11

22

Adjusted EBITDA (Continuing Operations)1


$224

$371


$1,052

$2



1

Global Catastrophe Recap: First Half of 2018", Aon Benfield, July 2018, pg3.

2

"P&C industry combined ratio for Q1 2018 lowest in past 5 years", PropertyCasualty360, May 24, 2018, https://www.propertycasualty360.com/2018/05/24/pc-industry-combined-ratio-for-q1-2018-lowest-in-p/.

3

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.

4

In Canadian dollars, rounded to the nearest cent.

 

INVESTOR CONFERENCE CALL 

Symbility will host a live webcast and conference call Aug. 24, 2018, at 10 a.m. Eastern time to discuss these results. All interested parties are welcome to join the live webcast, which can be accessed at  https://event.on24.com/wcc/r/1804244/EA67DE9BCE2A92180ADB9C25BEB468B6. 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. Our strategic services team, Symbility INTERSECT™ empowers a variety of businesses with smarter mobile and IoT product development strategy, design thinking and engineering excellence. We push industries forward and prove 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 June 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)










June 30,
2018

Dec. 31,
2017





Assets




Current assets





Cash and cash equivalents


22,076

8,238


Accounts receivable


5,868

7,651


Prepaid expenses


1,258

1,614


Tax credits receivables


678

665



29,880

18,168





Long-term assets









Restricted cash deposits


4,225



Prepaid expenses


35

54


Security deposits


118

115


Property and equipment


417

502


Intangible assets


7,570

8,369


Goodwill


10,763

10,763



53,008

37,971





Liabilities












Current Liabilities





Accounts payable


995

1,786


Accrued liabilities


2,973

4,079


Provisions


904

220


Deferred revenue


3,255

2,121



8,127

8,206

Long-term liabilities





Accrued liabilities and others


107

7


Customer deposits


-

382



8,234

8,595









Shareholders' equity


44,774

29,376



53,008

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 

June 30,


six-month period ended

June 30,



2018

2017


2018

2017

Continuing Operations







Revenue








Software and other


6,426

6,390


11,945

12,042


Professional services


2,716

1,815


5,569

3,901


Total Revenue


8,962

8,205


17,514

15,943









Cost of sales








Software and other


888

961


1,668

1,917


Professional services


1,432

1,454


2,773

2,820


Total cost of sales


2,320

2,415


4,441

4,737

Gross Profit


6,642

5,790


13,073

11,206








Expenses








Sales and Marketing


3,648

3,203


6,892

6,700


General and administration


2,289

2,008


4,574

4,242


Research and development


929

822


1,723

1,510


Depreciation, amortization, and foreign exchange


167

120


59

236


Transaction


224

528


349

528



7,257

6,681


13,597

13,216

Loss before finance income, net and

income tax expense


(615)

(891)


(524)

(2,010)


Finance income, net


(47)

(5)


(64)

(9)

Loss Before Income Tax Expense


(568)

(886)


(460)

(2,001)

Income Tax Expense


3

7


11

22

Net Loss and comprehensive loss for the

period from continuing operations


(571)

(893)


(471)

(2,023)

Discontinued Operations







Net income (loss) for the period from

discontinued operations


15,058

(6)


15,133

(10)

Net income (loss) and comprehensive

income (loss) for the period


14,487

(899)


14,662

(2,033)

Basic and diluted loss and

comprehensive 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


0.06

(0.00)


0.06

(0.01)

Weighted average number of common

shares outstanding








Basic


239,835,319

238,988,822


239,655,578

238,955,544


Diluted


248,993,791

238,988,822


248,208,996

238,955,544

 

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SOURCE Symbility Solutions Inc.

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