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Automated Benefits Corp. Increases Revenue 42% Q1 2012 vs. Q1 2011(May 30, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 05/30/12 -- Automated Benefits Corp.?? (the "Corporation") (TSX VENTURE:AUT), a software company dedicated to developing applications for the insurance industry, today reported revenue increased by 42% to approximately $2.36 million for the three months ending March 31, 2012. This compares to revenues of approximately $1.67 million in the same period last year, which represents an increase of approximately $0.69 million.
The net loss for the three months ending March 31, 2012 was approximately $1.16 million and represents a basic and fully diluted loss per share of approximately one cent. This compares to net income of approximately $57,000 in the same period last year, representing a basic and fully diluted earnings per share of approximately one-twentieth of a cent, and a decrease of approximately $1.21 million. This net loss includes transaction related expenses of $912,000.
The Corporation believes Adjusted EBITDA(1) is also a useful measure as a proxy for operating cashflow and facilitates period-to-period operating comparisons. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock based compensation, restructuring costs including general and administration expenses, and other non-recurring gains or losses including transaction costs related to acquisition. Adjusted EBITDA for the three months ending March 31, 2012 was $(70,000) compared to Adjusted EBITDA of $104,000 in the same period last year.
"While we had revenue growth of 42%, the first quarter performance was significantly impacted by transaction related expenses," states James R. Swayze, Chief Executive Officer, Automated Benefits Corp. "With the rollout of Symbility's products to The Farmers Exchange in the USA, Direct Line Insurance in the UK, plus the acquisition of the claims business of Marshall, Swift & Boeckh, we anticipate significant growth in 2012."
The Corporations operating subsidiaries, Symbility Solutions Inc.?? ("Symbility") and Automated Benefits Inc.?? ("Adjudicare??") report the following recent business developments:
-- In January of 2012, Symbility announced that Farmers Insurance Exchange will be rolling out our software to the balance of their company. After a successful initial rollout to the specialty claims division, Farmers decided that the Symbility platform offered a compelling business case to introduce it to the rest of their organization. -- In January of 2012, Adjudicare announced it had signed a formal partnership with WorldCare??, a pioneer and leader in the global healthcare community offering highly specialized and personalized electronic second medical opinions from top medical centers to local attending physicians for the benefit of their patients. -- In February of 2012, Adjudicare announced it had signed a contract with Seventh-day Adventist Church in Canada, who chose to deploy Adjudicare to provide health benefit and claim administration services for their employees and retirees across Canada. -- In March of 2012, Symbility announced that Direct Line Insurance Group plc. (formerly RBS Insurance Services Limited), the UK's largest personal lines insurer, signed a major contract to integrate Symbility, a collaborative claims management software and mobile scoping tool, into its organization through its UK partner the Innovation Group. -- In March of 2012, Symbility announced it had signed a five-year agreement with Chubb, a leading provider of comprehensive insurance products and services tailored to individuals with unique homes and possessions. -- In April of 2012, Symbility announced it had completed the acquisition of the claims division of Marshall, Swift & Boeckh ("MSB"), a wholly owned subsidiary of Decision Insight Information Group. This acquisition combines Symbility's leadership in workflow and property estimating technologies with MSB's 80 years of expertise in property cost data and analytics under a single corporate structure, which will offer the property and casualty market a new alternative. -- On May 16, 2012 Symbility announced an extension of its strategic partnership with Wipro Limited. Wipro provides comprehensive IT solutions and services to corporations globally. Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Symbility will leverage Wipro's existing relationships and their strength in the Asian market to continue our global expansion.
The Corporation also announced today that 250,000 options were granted to an Officer in accordance with the Corporation's stock option plan. Each option entitles its holder to purchase one common share of the Corporation at a price of $0.46 per share for a period of ten years from the date of grant. The options will vest in three equal tranches with one-third vesting immediately, one-third vesting on the first anniversary of the grant date, and one-third vesting on the second anniversary of the grant date. The granting of the stock options is subject to regulatory approval.
On May 29, 2012, 4,443,265 restricted shares were granted to certain staff, senior management and Directors of the Corporation in accordance with the Corporation's Restricted Share Plan ("Restricted Shares"). Of these Restricted Shares, 2,823,625 were granted to officers and Directors of the Corporation. Each Restricted Share is subject to forfeiture as described below. For Canadian employees, the Corporation has agreed to loan each employee an amount equal to the employee's Canadian income tax liability due upon the grant of the Restricted Share, repayable on terms equivalent to when the risk of forfeiture lapses. The approximate value of these loans is $160,000. There is no tax liability immediately payable for employees based in the United States and therefore no corresponding loan.
The risk of forfeiture of the Restricted Share lapses in accordance with the terms of the Restricted Share Plan. Each grant consists of three equal tranches with different forfeiture criteria. Tranche 1 of the Restricted Shares will have 20% of the risk of forfeiture lapse on each anniversary of the date of grant. Tranche 2 of the Restricted Shares will have the risk of forfeiture lapse upon the achievement of certain performance goals related to the integration of the operations of the Corporation and the Transaction over a period not to exceed two years from the Closing Date. Tranche 3 of the Restricted Shares will have 20% of the risk of forfeiture lapse equally over 5 years upon the achievement of certain financial performance based targets.
(1) Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in general and administration expense and other non-recurring gains or losses including transaction costs related to acquisition. 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.
About Automated Benefits Corp.
Automated Benefits Corp.?? (www.automatedbenefits.com) is a progressive software company dedicated to developing applications for the insurance industry. The organization currently has two platforms: Symbility Solutions?? and Adjudicare??.
Symbility Solutions (www.symbilitysolutions.com) provides powerful, accurate and easy-to-use claims processing and estimating software solutions for Property & Casualty Insurers. Our collaborative workflow management, mobile estimating and claims triage solutions and analytical services allow insurers to reduce costs while delivering a market leading claims experience.
Adjudicare (www.adjudicare.com) is an advanced, practical software solution used by a 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 ensure that claims are precisely adjudicated and paid in real-time, giving our partners' 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 consolidated financial statements and related notes and management's discussion and analysis for the quarter ending March 31, 2012, 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 is 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.
MEDIA CONTACTS: Automated Benefits Corp.
James R. Swayze
Chief Executive Officer
(416) 359-9339, ext. 1003
Automated Benefits Corp.
Richard D. Adair
President/Chief Operating Officer
(416) 359-9339, ext. 1002
Automated Benefits Corp.
Blair R. Baxter
Chief Financial Officer
(416) 359-9339, ext. 1008
Automated Benefits Corp.
Lucy De Oliveira
Director of Marketing
(416) 359-9339, ext. 1007
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