Symbility Solutions Reports Fourth Quarter and Full Year 2017 Results

TORONTO, March 29, 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 fourth quarter and fiscal year ending December 31, 2017.

"2017 was a very positive year for Symbility as we continued to solidify our position in the P&C Insurance market globally," said James Swayze, Chief Executive Officer of Symbility Solutions. "We added new insurance companies to our Property platform in North America, Europe and Asia; launched our Health mobile benefits app with multiple providers; and saw a 50 percent increase to our app development with our Services team as customers looked to advance their mobile offerings. Furthermore, we approached the high end of our revenue guidance while exceeding our Adjusted EBITDA¹ guidance as our model yielded higher leverage on the heels of a strong second half of the year."

Mr. Swayze continued, "Looking ahead to 2018, we remain committed to driving shareholder value as our markets seek improved customer experience through mobile tools that provide greater engagement and transparency for policyholders. Our ability to quickly integrate partner applications and datasets enables us to scale our business and drive customer efficiencies with only nominal incremental cost. Symbility is perfectly positioned to capitalize on the Insurtech momentum with our suite of applications which will drive expanded EBITDA margins into the future."

FOURTH QUARTER FINANCIAL RESULTS

• Consolidated revenue for the fourth quarter of 2017 ended December 31, 2017 was $11.3 million compared to $9.0 million in the same period in 2016, an increase of 26 percent. Consolidated revenue for the twelve months ended December 31, 2017 was $41.8 million compared to $34.3 million in the same period in 2016, an increase of 22 percent.
  
  
• Net income for the fourth quarter of 2017 was $1.4 million compared to a net loss of ($0.6) million for the same period in 2016. Net loss for the twelve months ended December 31, 2017 was ($96,000) million compared to a net loss of ($3.4) million for the same period in 2016.
  
  
• The Company had income per share² of $0.01 in the fourth quarter of 2017 compared to a loss per share of ($0.00) in the fourth quarter of 2016. The Company had a loss per share of ($0.00) for the twelve months ended December 31, 2017 compared to a loss per share of ($0.01) in the same period in 2016.
  
  
• The Company reported Adjusted EBITDA of $2.1 million in fourth quarter of 2017 compared to an Adjusted EBITDA of $66,000 in the fourth quarter of 2016, an increase of 3,092 percent. Adjusted EBITDA for the twelve months ended December 31, 2017 was $3.7 million compared to Adjusted EBITDA of $62,000 for the same period in 2016.
  
  
• The Company had a cash balance of $8.2 million as at December 31, 2017 compared to a cash balance of $8.0 million as at December 31, 2016.

SELECTED FINANCIAL INFORMATION

in thousands of dollars	three months ended December 31,			twelve months ended December 31,
	2017	2016		2017	2016
Revenue	$11,349	$9,026		$41,754	$34,295
Cost of Sales	$2,626	$3,245		$12,124	$11,203
Expenses	$7,352	$6,386		$29,704	$26,445
Net Income (Loss)	$1,357	($597)		($96)	($3,366)
Adjusted EBITDA^1	$2,075	$65		$3,709	$62
Income (Loss) per share^2	$0.01	($0.00)		($0.00)	($0.01)
As at December 31, 2017, and December 31, 2016, in thousands of dollars				2017	2016
Cash and cash equivalents				$8,238	$7,976
Total Assets				$37,971	$38,021
Total long term liabilities				$389	$396
	three months ended December 31,			twelve months ended December 31,
	2017	2016		2017	2016
IFRS Net Income (Loss)	$1,357	($597)		($96)	($3,366)
Finance income, net	4	(2)		(8)	(18)
Depreciation and amortization	449	624		2,008	2,674
Stock-based compensation	197	46		803	741
Transaction Related Expense	58	0		972	0
Income tax expense	10	(6)		30	31
Adjusted EBITDA^1	$2,075	$65		$3,709	$62

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 today, Thursday, March 29, 2018, at 11 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/1640148/3080D95B9A248F9C9ABD7BE2567BD1CF. Participants may also join the conference call by dialing toll free [phone] or [phone] for international participants. A replay of the webcast will be available on Symbility's website.  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 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 year ending December 31, 2017, 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. Consolidated Statements of Financial Position (Unaudited - In thousands of Canadian dollars)
		December 31, 2017	December 31, 2016
Assets
Current assets
	Cash and cash equivalents	8,238	7,976
	Accounts receivable	7,651	6,488
	Prepaid expenses	1,614	1,217
	Tax credits receivables	665	745
		18,168	16,426
Long-term assets
	Prepaid expenses	54	33
	Security deposits	115	114
	Property and equipment	502	626
	Intangible assets	8,369	10,059
	Goodwill	10,763	10,763
		37,971	38,021
Liabilities
Current Liabilities
	Accounts payable	1,786	2,288
	Accrued liabilities	4,079	4,025
	Provisions	220	845
	Deferred revenue	2,121	1,836
		8,206	8,994
Long-term liabilities
	Accrued liabilities and others	7	14
	Customer deposits	382	382
		8,595	9,390
Shareholders' equity		29,376	28,631
		37,971	38,021

Symbility Solutions Inc. Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited - In thousands of Canadian dollars, except per share data)
		three-month period ended December 31,			twelve-month period ended   December 31,
		2017	2016		2017	2016
Revenue
	Software and other	8,360	7,149		32,029	28,153
	Professional services	2,989	1,877		9,725	6,142
	Total Revenue	11,349	9,026		41,754	34,295
Cost of sales
	Software and other	1,224	2,145		6,541	7,413
	Professional services	1,402	1,100		5,583	3,790
	Total cost of sales	2,626	3,245		12,124	11,203
Gross Profit		8,723	5,781		29,630	23,092
Expenses
	Sales and Marketing	3,821	3,243		14,477	13,520
	General and administration	2,434	1,737		9,490	8,122
	Research and development	1,013	1,267		4,354	3,943
	Depreciation, amortization, and foreign exchange	26	139		411	860
	Transaction	58	-		972	-
		7,352	6,386		29,704	26,445
Income (loss) before finance income, net and income tax expense		1,371	(605)		(74)	(3,353)
	Finance income, net	4	(2)		(8)	(18)
	Income tax expense	10	(6)		30	31
Net income (loss) and comprehensive income (loss) for the period		1,357	(597)		(96)	(3,366)
Basic net income (loss) and comprehensive income (loss) per common share		0.01	(0.00)		(0.00)	(0.01)
Diluted net income (loss) and comprehensive income (loss) per common share		0.01	(0.00)		(0.00)	(0.01)
Weighted average number of common shares outstanding
	Basic	239,473,840	238,718,715		239,216,822	238,143,851
Diluted		247,768,144	238,718,715		239,216,822	238,143,851

SOURCE Symbility Solutions Inc.

James R. Swayze, Chairman & Chief Executive Officer, (647) 775- 8603, [email protected]; Blair R. Baxter, Chief Financial Officer, [phone], [email protected]; Lucy De Oliveira, VP, Global Marketing, [phone], [email protected]; Babak Pedram, Investor Relations, [phone], [email protected]

Related Links

www.symbilitysolutions.com