TORONTO, April 11, 2017 /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 its fourth quarter and fiscal year
2016, which ended December 31,
2016.
FOURTH QUARTER FINANCIAL RESULTS
- Consolidated revenue for the fourth quarter of fiscal 2016 was
a record $9.0 million compared to
$8.1 million in the same period in
2015, an increase of 11 percent.
- The Company reported an Adjusted EBITDA1 of
$66,000 in Q4 2016 compared to
$776,000 in Q4 2015.
- Net loss for the fourth quarter of 2016 was ($597,000) compared to a net loss of ($876,000) in the same period of 2015, a decrease
in loss of 32 percent.
- The Company had a loss per share2 of $0.00 in the fourth quarter of 2016 compared to a
loss per share of $0.00 in the fourth
quarter of 2015.
- The Company had a cash balance of $8.0
million at December 31, 2016
compared to a cash balance of $6.6
million at December 31,
2015.
"2016 was the year that Symbility cemented its reputation as a
global leader in mobile solutions for the insurance industry," said
James Swayze, CEO of Symbility
Solutions. "The launch of our policyholder communication and
fulfillment tool for insurers in the United Kingdom and the introduction of our
consumer self-serve product in North
America has moved Symbility Property toward the B2C market;
Symbility Health introduced a white-label mobile app for employee
benefits management; and Symbility Intersect worked with multiple
insurance and financial services companies building automobile
claims submission and first notice of loss applications plus mobile
payment and currency transfers."
Mr. Swayze continued, "Our investments in R&D are now paying
off as our reputation as market innovator is driving further
adoption of our tools. Growing our revenue by nearly 30 percent to
exceed 2016 guidance while increasing these investments and showing
a positive adjusted EBITDA was management's goal for the year and
demonstrates that we can create leverage in our model while
continuing to innovate. We expect that trend to continue as
announced earlier this year with guidance for 2017 fiscal year
revenue in the range of $40-$42
million and adjusted EBITDA of $2 -
$3 million."
SELECTED FINANCIAL INFORMATION
in thousands of
dollars
|
three months ended
December 31,
|
|
twelve months
ended December 31,
|
|
2016
|
2015
|
|
2016
|
2015
|
Revenue
|
$9,026
|
$8,075
|
|
$34,295
|
$26,537
|
Cost of
Sales
|
$3,245
|
$2,758
|
|
$11,203
|
$7,766
|
Expenses
|
$6,386
|
$6,209
|
|
$26,445
|
$24,846
|
Net Loss
|
($597)
|
($876)
|
|
($3,366)
|
($6,063)
|
Adjusted
EBITDA1
|
$66
|
$776
|
|
$62
|
($380)
|
Loss per
share2
|
($0.00)
|
($0.00)
|
|
($0.01)
|
($0.03)
|
As at December
31, 2016, and December 31, 2015, in thousands of
dollars
|
2016
|
2015
|
Cash and cash
equivalents
|
$7,976
|
$6,553
|
Total
Assets
|
$38,021
|
$39,155
|
Total long term
liabilities
|
$396
|
$354
|
|
three months ended
December 31,
|
|
twelve months
ended December 31,
|
|
2016
|
2015
|
|
2016
|
2015
|
IFRS Net
Loss
|
($597)
|
($876)
|
|
($3,366)
|
($6,063)
|
Finance and other
income
|
($2)
|
($5)
|
|
($18)
|
($64)
|
Depreciation and
amortization
|
$625
|
$1,285
|
|
$2,674
|
$3,372
|
Stock-based
compensation
|
$46
|
$296
|
|
$741
|
$1,009
|
Restructuring
Cost
|
$0
|
$79
|
|
$0
|
$410
|
Transaction Related
Expense
|
$0
|
$8
|
|
$0
|
$904
|
Income tax expense
(recovery)
|
($6)
|
($11)
|
|
$31
|
$52
|
Adjusted
EBITDA1
|
$66
|
$776
|
|
$62
|
($380)
|
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.
|
FISCAL YEAR 2016 FINANCIAL RESULTS
- Consolidated revenue in fiscal year 2016 was $34.3 million, compared to revenue of
$26.5 million in the previous fiscal
year, an increase of 29 percent year over year.
- The Company reported an Adjusted EBITDA of $62,000 in fiscal year 2016 compared to an
Adjusted EBITDA loss of ($380,000).
- Net loss for the fiscal year ended December 31, 2016 was ($3.4 million) compared to a net loss of
($6.1 million) in the same period of
2015, a decrease in loss of 44 percent.
INVESTOR CONFERENCE CALL
Symbility will host a live webcast and conference call today,
Tuesday, April 11, 2017, 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
http://event.on24.com/r.htm?e=1380386&s=1&k=E0D864B9666E8395855BE2C654DBF5DF.
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.
OPTIONS TO DIRECTORS AND OFFICERS
Symbility also announced today that 2,096,250 options will be
granted to Directors and Officers in accordance with the
Corporation's stock option plan. Each option entitles its holder to
purchase one common share of the Corporation at the closing price
on April 12, 2017 and for a period of
ten years. The options will vest at a rate of one third per annum
on the anniversary date of the grant.
SECURITYHOLDERS' AGREEMENT
The Company announces that the securityholders' agreement dated
April 10, 2012 (the "Securityholders'
Agreement"), which is available on SEDAR at www.sedar.com, has
terminated in accordance with its terms. Accordingly, the
terms of the Securityholders' Agreement, including, without
limitation, the provisions contained therein with respect to the
conduct of certain aspects of the business and affairs of the
Company and its subsidiaries, the pre-emptive rights provided to
the Investor regarding the purchase of additional securities and
the standstill restrictions applicable to the Investor, are no
longer in force.
AMENDMENT TO GENERAL BY-LAW
The Company announces that its board of directors (the "Board")
has approved amendments to the Company's general by-law, By-law
No.1. The changes are primarily "housekeeping" in nature and
reflect Canadian residency requirements under the Business
Corporation Act (Alberta) (the
"Act"). In addition, the quorum requirements for meetings of
shareholders of the Company has been decreased from a majority of
shareholders to 25 percent. The amendments to By-Law No. 1 are
effective immediately and an amended and restated By-Law No 1 will
be placed before shareholders for confirmation at the for approval
by its shareholders at the next annual meeting of shareholders to
be held in 2017 (the "Meeting"). Pursuant to the provisions of the
Act, the amended and restated By-Law No. 1 will cease to be
effective unless it is confirmed by a resolution adopted by a
majority of the votes cast by the shareholders of the Company at
the Meeting. The description of the amended and restated By-Law No.
1 in this press release is qualified in its entirety by the full
text of the amended and restated By-Law No. 1, which will be made
available under the Company's profile at www.sedar.com.
ADVANCE NOTICE BY-LAW
The Company announces that the Board has adopted an advance
notice by-law relating to advance notice requirements for director
elections (the "Advance Notice By-Law") to provide
shareholders, directors and management of the Company with a clear
framework for nominating directors of the Company in connection
with any annual or special meeting of the shareholders.
The purpose of the Advance Notice By-Law is (i) to ensure that
all shareholders receive adequate notice of director nominations
and sufficient time and information with respect to all nominees to
make appropriate deliberations and register an informed vote; and
(ii) to facilitate an orderly and efficient process for annual or
special meetings of shareholders of the Company. The Advance Notice
By-Law fixes the deadlines by which shareholders must submit
director nominations to the Company prior to any annual or special
meeting of shareholders and sets for the information that a
shareholder must include in a written notice to the Company for any
director nominee to be eligible for election at such annual or
special meeting of shareholders.
Pursuant to the Advance Notice By-Law, shareholders seeking to
nominate candidates for election as directors other than pursuant
to a proposal or requisition of shareholders made in accordance
with the provisions of the Act must provide timely written notice
in proper form to the Corporate Secretary of the Company. To be
timely, a shareholder's notice must be received (i) in the case of
annual meeting of shareholders, not less than 30 days prior to the
date of the annual meeting; provided, however, that in the event
that the annual meeting of shareholders is to be held on a date
that is less than 50 days after the date on which the first public
announcement of the date of the annual meeting was made, notice by
the shareholder may not be received later than the close of the
business on the 10th day following the date of such
public announcement; and (ii) in the case of a special meeting
(which is not also an annual meeting) of shareholders called for
any purpose which includes the election of directors to the Board,
not later than the close of business on the 15th day
following the day on which the first public announcement of the
date of the special meeting was made. The Advance Notice By-Law
also prescribes the proper written form for a shareholder's notice.
The Board may, in its sole discretion, waive any requirement under
these provisions.
The Advance Notice By-Law is effective immediately and will be
placed before shareholders for confirmation at the Meeting.
Pursuant to the provisions of the Act, the Advance Notice By-Law
will cease to be effective unless it is confirmed by a resolution
adopted by a majority of the votes cast at the Meeting. The
description of the Advance Notice By-Law in this press release is
qualified in its entirety by the full text of the Advance Notice
By-Law, which will be made available under the Company's profile at
www.sedar.com.
SHAREHOLDER RIGHTS PLAN
The Company announces that the Board has adopted a shareholder
rights plan (the "Rights Plan").
The Rights Plan has been adopted to ensure the fair treatment of
all shareholders of the Company in connection with any take-over
bid or other acquisition of control of the Company. The Rights Plan
has not been adopted in response to any specific take-over bid or
other proposal to acquire control of the Company and the Company is
not aware of any such pending or contemplated proposals.
At the close of business today, one right will be issued and
attached to each common share of the Company outstanding at such
time. The rights will automatically attach to the common shares and
no further action will be required by shareholders. A right will
also automatically attach to each common share of the Company
issued hereafter.
Subject to terms of the Rights Plan and to certain exceptions
provided therein, the rights will become exercisable in the event
that any person, together with joint actors, acquires or announces
its intention to acquire 20 percent or more of the Company's
outstanding common shares without complying with the "Permitted
Bid" provisions of the Rights Plan or in circumstances where the
application of the Rights Plan is waived in accordance with its
terms. The "Permitted Bid" provisions prevent the dilutive effects
of the Rights Plan from operating if a take-over bid is made to all
holders of common shares of the Company (other than the offeror) by
way of a take-over bid circular that remains open for acceptance
for a minimum of 105 days, subject to certain exceptions, and
satisfied certain other conditions. In circumstances where a
take-over bid does not comply with the requirements of the Rights
Plan or where the application of the Rights Plan is not waived in
accordance with its terms, the rights holders (other than the
acquiring person and joint actors) will be entitled to purchase
additional common shares of the Company at a significant discount
to the market price.
The Rights Plan has been conditionally approved by the TSX
Venture Exchange and is subject to ratification by the shareholders
of the Company within six months of its effective date. The Company
intends to recommend the ratification by the shareholders of the
Company within six months of its effective date. The Company
intends to recommend the ratification of the Rights Plan for
approval by its shareholders at the next Meeting. If ratified by
the shareholders, the Rights Plan will have an initial term of
three years. If the Rights Plan is not approved by the shareholders
within six months of the effective date of the Rights Plan it,
together with the outstanding rights, will terminate and cease to
be effective.
The description of the Rights Plan in this press release is
qualified in its entirety by the full text of the Rights Plan,
which will be made available under the Company's profile on
SEDAR at www.sedar.com.
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, 2016, 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)
|
|
As
At
|
|
|
December
31,
2016
|
December 31,
2015
|
Assets
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
7,976
|
6,553
|
|
Accounts
receivable
|
|
6,488
|
7,127
|
|
Prepaid
expenses
|
|
1,217
|
1,101
|
|
Tax credits
receivables
|
|
745
|
849
|
|
|
16,426
|
15,630
|
Long-term
assets
|
|
|
|
|
Prepaid
expenses
|
|
33
|
19
|
|
Security
deposits
|
|
114
|
123
|
|
Property and
equipment
|
|
626
|
691
|
|
Intangible
assets
|
|
10,059
|
11,929
|
|
Goodwill
|
|
10,763
|
10,763
|
|
|
38,021
|
39,155
|
Liabilities
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
2,288
|
4,949
|
|
Accrued
liabilities
|
|
4,025
|
3,608
|
|
Provisions
|
|
845
|
124
|
|
Deferred
revenue
|
|
1,836
|
2,702
|
|
|
8,994
|
7,651
|
Long-term
liabilities
|
|
|
|
|
Accrued liabilities
and others
|
|
14
|
8
|
|
Customer
deposits
|
|
382
|
346
|
|
|
9,390
|
8,005
|
|
|
|
|
Shareholders'
equity
|
|
28,631
|
31,150
|
|
|
38,021
|
39,155
|
Symbility Solutions
Inc.
Consolidated Statements of Loss and Comprehensive
Loss
(Unaudited - In thousands of Canadian dollars, except per
share data)
|
Three-month period
ended
December 31,
|
|
Twelve-month
period ended
December
31,
|
|
2016
|
2015
|
|
2016
|
2015
|
Revenue
|
|
|
|
|
|
|
Software and
other
|
7,149
|
6,593
|
|
28,153
|
23,550
|
|
Professional
services
|
1,877
|
1,482
|
|
6,142
|
2,987
|
|
Total
revenue
|
9,026
|
8,075
|
|
34,295
|
26,537
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
Software and
other
|
2,145
|
1,896
|
|
7,413
|
6,014
|
|
Professional
services
|
1,100
|
862
|
|
3,790
|
1,752
|
|
Total cost of
sales
|
3,245
|
2,758
|
|
11,203
|
7,766
|
|
|
|
|
|
|
Gross
margin
|
5,781
|
5,317
|
|
23,092
|
18,771
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Sales and
marketing
|
3,243
|
3,226
|
|
13,520
|
11,945
|
|
General and
administration
|
1,737
|
1,890
|
|
8,122
|
7,157
|
|
Research and
development
|
1,267
|
859
|
|
3,943
|
4,067
|
|
Depreciation,
amortization, and foreign
exchange
|
139
|
147
|
|
860
|
363
|
|
Transaction and
restructuring
|
-
|
87
|
|
-
|
1,314
|
|
6,386
|
6,209
|
|
26,445
|
24,846
|
|
|
|
|
|
|
Loss before
finance income, net
and income tax
expense
|
(605)
|
(892)
|
|
(3,353)
|
(6,075)
|
Finance income,
net
|
(2)
|
(5)
|
|
(18)
|
(64)
|
Income tax
expense
|
(6)
|
(11)
|
|
31
|
52
|
|
|
|
|
|
|
Net loss and
comprehensive loss for the period
|
(597)
|
(876)
|
|
(3,366)
|
(6,063)
|
|
|
|
|
|
|
Basic and diluted
net loss and comprehensive loss per common share
|
(0.00)
|
(0.00)
|
|
(0.01)
|
(0.03)
|
Weighted average
number of common shares
outstanding Basic &
Diluted
|
238,718,715
|
237,541,342
|
|
238,143,851
|
228,122,105
|
SOURCE Symbility Solutions Inc.