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Automated Benefits(R) Increases Revenue 18 Percent Q3 2011 Vs Q3 2010(November 28, 2011)
TORONTO, ONTARIO -- (Marketwire) -- 11/28/11 -- Automated Benefits Corp. (the "Corporation") (TSX VENTURE:AUT) today reported financial results for the third quarter of fiscal year 2011. Revenue increased by 18% to $2 million for the third quarter in 2011, compared to revenue of $1.7 million for the same period in 2010, an increase of $0.3 million. Revenue increased by 35% to $5.7 million for the nine months ending September 30, 2011, compared to revenue of $4.2 million for the same period in 2010, an increase of $1.5 million.
The net income for the third quarter in 2011 was $88,000 compared to the net income of $385,000 for the same period in 2010, a decrease of $297,000. The decrease relates mainly to the fact that Symbility delivered programming services revenue in the third quarter of FY 2010 at the front end of a customer rollout, which did not reoccur in the third quarter of FY 2011. These revenues are replaced by recurring license fees after the rollout of the project is complete. The net income for the nine months ending September 30, 2011 was $197,000 compared to a net loss of $215,000 for the same period in 2010, an improvement of $412,000.
The basic and fully diluted earnings per share for the three months ending September 30, 2011 was approximately seven one-hundredths of a cent, compared to the basic and fully diluted earnings per share of three-tenths of a cent for the same period in 2010. The basic and fully diluted earnings per share for the nine months ending September 30, 2011 was approximately two-tenths of a cent, compared to the basic and fully diluted loss per share of two-tenths of a cent for the same period in 2010.
The Corporation believes adjusted EBITDA is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Adjusted EBITDA is defined as, earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring, impairment charges, and other one-time gains and losses. Adjusted EBITDA for the three and nine months ending September 30, 2011 was $146,000 and $483,000, respectively. This compares to adjusted EBITDA of $447,000 and $45,000 in the same period last year for a decrease of $301,000 and an improvement of $438,000 respectively.
Commenting on the third quarter of 2011, James R. Swayze, Chief Executive Officer of Automated Benefits Corp. said: "We are proud to have delivered our third consecutive profitable quarter. Our performance to date this year reflects the operational strength of our two subsidiaries and we expect this to contribute to our expanded growth in 2012."
The Corporation's operating subsidiaries; Symbility Solutions Inc.?? ("Symbility") and Automated Benefits Inc.?? ("Adjudicare??") report the following recent business developments:
-- On July 26, 2011, Adjudicare announced the formalization of a contract with Lewer Insurance Agency ("Lewer") of Mississauga, Ontario. Lewer works with small business owners, independent marketers, and corporate executives for all industries with a focus on the petroleum and automotive sectors and represents an exciting opportunity for Adjudicare's expansion into the Quebec market. -- On August 16, 2011, Adjudicare announced that Sirius Benefit Plans, a national full-service Third-Party Administrator of employee benefit programs, had completed its implementation of the Adjudicare software solution servicing the majority of its existing block of group insurance business. -- On October 11, 2011, Symbility Solutions announced that in 2012, their award-winning application Symbility Mobile Claims?? would be available on a variety of different smartphones and tablets, such as iPhone, iPod, iPad, Playbook, Android and Windows Mobile. -- On October 19, 2011, Adjudicare announced that it had successfully celebrated its inaugural Adjudicare Partner Event with attendance from a community of partners ranging from customers, vendors, employees, and board members. This diverse group came together to network, collaborate and exchange ideas on how to compete successfully in the group benefits industry. -- On October 31, 2011, Adjudicare announced the launch of benefitsXchange.ca, a free dedicated online resource, and interactive community available for owners, brokers, third-party administrators, adjudicators and plan administrators. The portal brings together benefits industry participants from different geographies and market segments across Canada, to exchange knowledge and relevant industry information. -- On November 17, 2011, Adjudicare announced it had entered into a contract with MSH International, a leading worldwide provider of expatriate insurance solutions. MSH International's Canadian office is located in Calgary, Alberta, with headquarters in Paris, France and is a member of the Siaci Saint Honore Group. MSH International is one of the largest and most comprehensive suppliers of expatriate insurance services in the world.
About Automated Benefits Corp.
Automated Benefits Corp.?? is a software company dedicated to developing applications for the insurance industry in North America and Europe. The Corporation currently has two platforms: Adjudicare?? and Symbility??.
Symbility (www.symbilitysolutions.com) automates property insurance claims through its three complementary software components, which afford users the mobility, speed and control needed to efficiently and quickly move onto the next claim. Symbility Claims Connect?? is the collaborative workflow management tool that gives every claim participant real-time access to the claims they are working on. Symbility Inside Adjuster(TM) is an integrated application designed to streamline the first notice of loss process that leads to faster settlement of claims. Symbility Mobile Claims?? software is an estimating tool that increases speed, efficiency, and accuracy by allowing on-site claims processing.
Adjudicare (www.adjudicare.com) is a web-based software solution used by our network of Employee Benefits Brokers and Third Party Administrator partners across Canada in the adjudication of health and dental claims. Adjudicare's rules-based engine and leading edge features, ensures that claims are precisely adjudicated and paid in real-time, giving their customers optimum flexibility along with transparent disclosure on the benefit plan's financial performance.
All trade names are the property of their respective owners.
This press release should be read in conjunction with Corporation's interim consolidated financial statements and related notes and Management's Discussion and Analysis for the quarter ending September 30, 2011, copies of which can be found at www.sedar.com.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Automated Benefits Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results are included in the documents filed from time to time with the Canadian securities regulatory authorities by Automated Benefits Corp.
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 of as a substitute for net earnings (loss) prepared in accordance with IFRS. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.
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.
Automated Benefits Corp.
Lucy De Oliveira
Director of Marketing
(416) 359-9339, ext. 1007
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