Symbility Solutions Reports Record Revenue and Profitability in Third Quarter 2017

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Nov 29, 2017, 16:00 ET

TORONTO, Nov. 29, 2017 /PRNewswire/ - 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 Sept. 30, 2017.

"Symbility has been working hard over the past couple of years to ensure we have enough adjusters in the supply chain trained to support our customers in their time of need and Q3 2017 was definitely a time when all hands were required on deck," said James Swayze, CEO of Symbility Solutions. "It was nice to see the leverage of our model emerge in this busy quarter to show strong profitability with the record revenue."

Mr. Swayze continued, "the strength of our top and bottom line this quarter gives us confidence to reiterate our guidance of $40 million - $42 million in revenue and $2 million - $3 million in Adjusted EBITDA¹for 2017."

THIRD QUARTER FINANCIAL RESULTS

Consolidated revenue for the third quarter of 2017 ended Sept. 30, 2017 was $11.3 million compared to $8.7 million in the same period in 2016, an increase of 30 percent. Consolidated revenue for the nine months ended Sept. 30, 2017 was $30.4 million compared to $25.3 million in the same period in 2016, an increase of 20 percent.
The Company reported an Adjusted EBITDA of $1.6 million in Q3 2017 compared to an Adjusted EBITDA of $0.3 million in Q3 2016, an increase of 507 percent. Adjusted EBITDA for the nine months ended Sept. 30, 2017 was $1.6 million compared to Adjusted EBITDA of ($0.3) million in the same period in 2016.
The Company had a net income per share² of $0.00 in the third quarter of 2017 compared to a net loss per share of ($0.00) in the third quarter of 2016. The Company had a loss per share of ($0.01) for the nine months ended Sept. 30, 2017 compared to a loss per share of ($0.01) in the same period in 2016.
The Company had a cash balance of $6.4 million as at Sept. 30, 2017 compared to a cash balance of $8.0 million as at Dec. 31, 2016.
Net income for the third quarter of 2017 was $0.6 million compared to net loss of ($0.5) million in the same period in 2016. Net loss for the nine months ended Sept. 30, 2017 was ($1.5) million compared to net loss of ($2.8) million in the same period in 2016, an improvement of 48 percent.

SELECTED FINANCIAL INFORMATION

*in thousands of dollars*	three months ended Sept. 30,		nine months ended Sept. 30,
	2017	2016	2017	2016
Revenue	$11,274	$8,693	$30,405	$25,269
Cost of sales	$3,365	$3,080	$9,498	$7,957
Expenses	$7,334	$6,138	$22,352	$20,060
Net income (loss)	$580	($530)	($1,453)	($2,769)
Adjusted EBITDA¹	$1,608	$265	$1,634	($3)
Income (loss) per share²	$0.00	($0.00)	($0.01)	($0.01)

*As at Sept. 30, 2017, and Dec. 31, 2016, in thousands of dollars*	2017	2016
Cash and cash equivalents	$6,447	$7,976
Total assets	$37,328	$38,021
Total long-term liabilities	$389	$396

	three months ended Sept. 30,		nine months ended Sept. 30,
	2017	2016	2017	2016
IFRS net income (loss)	$580	($530)	($1,453)	($2,769)
Finance income, net	(3)	(6)	(12)	(16)
Depreciation and amortization	454	672	1,559	2,050
Stock-based compensation	193	118	606	695
Transaction related expense	386	0	914	0
Income tax expense (recovery)	(2)	11	20	37
Adjusted EBITDA¹	$1,608	$265	$1,634	($3)

¹Adjusted 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.

²In Canadian dollars, rounded to the nearest cent.

INVESTOR CONFERENCE CALL

Symbility will host a live webcast and conference call Thursday, November 30th, at 4 p.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/1491521/55E0B6D86B5C99A4DF483C7B5E5E5E45. 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.

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. 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, 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.

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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)

		Sept. 30, 2017	Dec. 31, 2016
Assets
Current assets
	Cash and cash equivalents	6,447	7,976
	Accounts receivable	8,586	6,488
	Prepaid expenses	1,552	1,217
	Tax credits receivables	522	745
		17,107	16,426
Long-term assets
	Prepaid expenses	58	33
	Security deposits	89	114
	Property and equipment	560	626
	Intangible assets	8,751	10,059
	Goodwill	10,763	10,763
		37,328	38,021
Liabilities
Current Liabilities
	Accounts payable and accrued liabilities	1,924	2,288
	Accrued liabilities	4,009	4,025
	Provisions	701	845
	Deferred revenue	2,483	1,836
Long-term liabilities		9,117	8,994
	Accrued liabilities and others	7	14
	Customer deposits	382	382
		9,506	9,390

Shareholders' equity		27,822	28,631
		37,328	38,021

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 Sept. 30,		nine-month period ended Sept. 30,
		2017	2016	2017	2016

Revenue
	Software and other	8,439	6,924	23,669	21,002
	Professional services	2,835	1,769	6,736	4,267
	Total Revenue	11,274	8,693	30,405	25,269

Cost of sales
	Software and other	2,004	2,009	5,317	5,268
	Professional services	1,361	1,071	4,181	2,689
	Total cost of sales	3,365	3,080	9,498	7,957
Gross Profit		7,909	5,613	20,907	17,312

Expenses
	Sales and Marketing	3,330	3,132	10,656	10,277
	General and administration	2,455	2,361	7,056	6,385
	Research and development	1,022	884	3,341	2,676
	Depreciation, amortization, and foreign exchange	141	(239)	385	722
	Transaction	386	-	914	-
		7,334	6,138	22,352	20,060
Income (loss) before finance income, net and
income tax expense		575	(525)	(1,445)	(2,748)
	Finance income, net	(3)	(6)	(12)	(16)
	Income tax expense	(2)	11	20	37

Net income (loss) and comprehensive income
(loss) for the period		580	(530)	(1,453)	(2,769)

Basic income (loss) and comprehensive
income (loss) per common share		0.00	(0.00)	(0.01)	(0.01)

Diluted income (loss) and comprehensive
income (loss) per common share		0.00	(0.00)	(0.01)	(0.01)

Weighted average number of common
shares outstanding
	Basic	239,473,840	238,674,675	239,130,208	237,950,831
	Diluted	247,870,944	238,674,675	239,130,208	237,950,831