Symbility Solutions Reports Third Quarter 2018 Financial Results

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.

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 EBITDA^1	$1,377	$1,566		$2,423	$1,567
Income (Loss) per share^2	$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 share^2	$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 EBITDA^1 (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

SOURCE Symbility Solutions Inc.

James R. Swayze, 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

http://www.symbilitysolutions.com/en_US/Main/Index