TORONTO, Aug. 24, 2018 /CNW/ - 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.
"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.