Press release from Marketwire
Automated Benefits Reports Record Revenue of $4.6 Million in Q2 2012
Increases 128% Year Over Year
Tuesday, August 14, 2012
Automated Benefits Reports Record Revenue of $4.6 Million in Q2 201208:00 EDT Tuesday, August 14, 2012TORONTO, ONTARIO--(Marketwire - Aug. 14, 2012) - Automated Benefits Corp.® (the "Corporation") (TSX VENTURE:AUT), a leading provider of cloud-based claims technology for the insurance industry, today reported that revenue increased to $4.6 million for the three months ending June 30, 2012 up 128% from $2.0 million in the comparable period in 2011.Net loss for the three months ending June 30, 2012 was $1,318,000 or ($0.01) per share on a basic and fully diluted basis. This net loss includes transaction related expenses of $887,000. This compares to net income of approximately $51,000 in the same period last year or earnings per share of $0.00 on a basic and fully diluted basis.At June 30, 2012, the Corporation held $2.4 million in cash and cash equivalents (net of debt of $108,000 owed on a capital lease).The Corporation believes Adjusted EBITDA(1) is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization), and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results. Adjusted EBITDA for the three months ending June 30, 2012 was $272,000 compared to Adjusted EBITDA of $232,000 in the same period last year."Our record revenue this quarter is the direct result of successfully integrating the claims business of Marshall & Swift/Boeckh and completing the roll-out of Farmers Insurance," comments James R. Swayze, Chief Executive Officer, Automated Benefits Corp. "The product innovations we are launching in the coming quarters, together with pilots we have running in global markets such as Germany, South Africa, and Australia should ensure continued growth in our results."The Corporations operating subsidiaries, Symbility Solutions Ltd. ("Symbility") and Automated Benefits Inc.® ("Adjudicare®") report the following recent business developments: Symbility 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 transaction augments Symbility's existing expertise in claims processing, loss estimating solutions, and process analytics technologies. Symbility Claims solutions, used in conjunction with MSB's Underwriting Solutions, means property insurers now have an alternative, market-driven enterprise solution to provide their policyholders a better claims experience. On May 31, 2012 Symbility announced it had signed a five-year agreement with SSQ General Insurance Company Inc., a subsidiary of SSQ Financial Group, a leading insurance company in Canada. On June 25, 2012 Symbility announced that Illinois Casualty Company, a leader in providing insurance protection for the food and beverage industry, also signed a multi-year agreement to integrate the Symbility platform into its operations. On June 4, 2012 Symbility announced that Rytech, a network of certified water damage mitigation specialists, had signed a multi-year agreement. On July 10, 2012 Symbility also announced that Nixon and Company, Inc., a leading provider of adjusting services in the Midwest, USA, signed a multi-year agreement to adopt Symbility into its operations, in order to enhance adjuster and third-party contractor productivity. Adjudicare In June of 2012, Adjudicare announced a formalized partnership agreement with the Trustees Health & Insurance Plan for IBEW Local 402. IBEW Local 402 will implement Adjudicare's new web-based Hour Banking product to provide their union members a leading-edge solution to track their hour banking data and benefit plan eligibility. On July 3, 2012 Adjudicare announced that it had signed a multi-year agreement to integrate the Adjudicare platform into Edgewater Employee Services Inc. operations, who were the first to create a Canadian network of preferred paramedical providers. On July 17, 2012 Adjudicare announced that it had signed a multi-year agreement with Automated Administration Services Inc. ("AAS") to adopt the Adjudicare system into its operations. Considered pioneers in the TPA marketplace and a charter member of the Third Party Administrators' Association of Canada, AAS will be instrumental in helping Adjudicare develop and execute a roll-up strategy to provide access to industry knowledge and best practices to our valued partners.  Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, 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. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.About Automated Benefits Corp. Automated Benefits Corp.® (TSX VENTURE:AUT) a progressive software company dedicated to developing applications for the insurance industry. The organization currently has two platforms: Symbility® and Adjudicare®. Symbility Solutions is an innovative, easy-to-use, cloud-based claims processing and estimating technology that optimizes claims performance for Property & Casualty insurance industry. Relying on the most extensive and defendable property cost data developed by Marshall & Swift/Boeckh ("MSB"), our collaborative workflow management, mobile estimating, claims triage solutions and analytical services allow insurers to reduce costs while delivering a market-leading claims experience. Symbility Claims Solutions, used in conjunction with MSB's Underwriting Solutions, means property insurers now have a dynamic, market-driven enterprise solution. Providing a virtual feedback loop between claims and underwriting systems, this enterprise solution allows insurers to manage property risks more proactively and effectively. Adjudicare is an advanced, practical web-based 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.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 period ending June 30, 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.All trade names are the property of their respective owners.FOR FURTHER INFORMATION PLEASE CONTACT: Automated Benefits Corp.MEDIA CONTACTS:James R. SwayzeChief Executive Officer(416) 359-9339, ext. email@example.comORRichard D. AdairAutomated Benefits Corp.President/Chief Operating Officer(416) 359-9339, ext. firstname.lastname@example.orgORBlair R. BaxterAutomated Benefits Corp.Chief Financial Officer(416) 359-9339, ext. email@example.comORLucy De OliveiraAutomated Benefits Corp.Director of Marketing(416) 359-9339, ext. firstname.lastname@example.orgNeither 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.