SEB Reports Financial Results for the Quarter Ending August 31, 2013
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 10/30/13 -- Smart Employee Benefits Inc. ("SEB" or "Company") (TSX VENTURE: SEB) today reported its financial results for the three month period ending August 31, 2013.
SEB is a technology company with two divisions, the Benefits Division and the Technology Division, providing business processes software, solutions and services to corporate and government clients with specialty practices focused on managing group benefit solutions and health claims processing environments. The core expertise of the SEB Group of Companies is managing and reporting on Big Data, including transaction processing in complex global Supply Chain environments. This expertise is uniquely adaptable to the "Benefits" and "Health-Care" industries.
John McKimm, President and CEO states:
"SEB's Benefits Practice is focused on two primary target markets in Canada - employee group health benefits which exceed $33.0 billion annually and government funded health benefits (federal and provincial) which are in excess of $23.0 billion. SEB's technology platform is easily adaptable to managing the end-to-end business processes in both environments. Of the $56.0 billion market in Canada, the employee group benefit portion has grown over 80% in the past decade."
SEB's business growth strategy for developing the benefits business has three components:
Technology Platform Provides Competitive Advantage in Benefits Management
SEB has spent over $5.0 million since 2011 automating the administration, payment processing/billing and reporting modules of its platform and integrating these modules into an already proven leading edge adjudication platform.
SEB's technology platform manages the total business processing services for group benefit solutions and health claims processing on one fully-integrated technology environment. The SEB technology platform is open architecture, rules based and modular, and allows clients to utilize either a fully integrated solution or modules. SEB's "rules-based adjudication" environment is very unique, and when combined with the fully-integrated Administration, Payment Processing, Billing and Reporting modules, will provide very sophisticated and highly competitive solutions to the marketplace, both in Canada and globally. SEB can administer, adjudicate and report for all benefit types in one fully integrated environment. Rules creation is an administrative, not a programming exercise. Highly customized and flexible processing solutions can be created easily and cost effectively. The largest current implementation of the SEB Adjudication Environment is Oman Insurance in Dubai.
The health benefits division of SEB operates as a Third Party Administrator ("TPA"). The opportunity for SEB is to increase the capture and retention of revenue by providing fully integrated services and solutions, currently being outsourced by most TPAs and Insurers to third parties.
Acquisitions Underpin SEB's Growth Strategy
Through acquisitions, SEB is acquiring the client relationships and vendor status to support a complementary organic growth model with both employers and government business opportunities. On the employee group benefit side, acquisitions target TPAs, as well as broker and consultant organizations that provide solutions and services to employers. The objective is to secure the client relationships and transition many of the front and back-office business processes to the SEB technology environment over time; in effect, capturing revenue that was previously being outsourced. On the government side, SEB is targeting technology companies (primarily IT) that have established vendor relationships, security clearances and project references that are required to bid on government outsourcing contracts.
Fiscal 2013 - Progress to Date
The growth plan for 2013 and 2014 is acquisition-based, with the objective of reaching consolidated profitability within the fiscal year 2014 and establishing a solid base of business and clients from which to launch organic growth initiatives. In this fiscal year to date, SEB has closed two acquisitions and announced three more. Historically, the consolidated annual revenues for the two acquired companies exceeded $12.0 million. Closing all acquisitions announced is expected to result in consolidated annual revenue in excess of $25 million. These transactions bring a solid profitable base of business and clients, both corporate and government. Additionally, they expand technology operations and infrastructure in both Toronto and Ottawa, each a major centre growth of growth for SEB, along with expanding a national and global presence. The acquisitions announced are expected to close imminently, prior to fiscal year-end November 30, 2013.
Recent Announcements
In the period since the beginning of this fiscal year, the following have occurred:
Financial Results for Quarter Ending August 31, 2013
For the 3 month period ending August 31, 2013, SEB recorded a loss of $1,172,183, which included non-cash costs of $249,878, made up of a Stock-based compensation cost of $10,840, accretion of non-cash interest of $66,983 related to SEB's Convertible Financings, amortization of $151,082 and depreciation of $20,973. Of the other costs, the largest was salaries and other compensation costs of $973,570 (the largest portion of which was related to software development and maintenance); the next was professional fees of $168,499, much of which was related to the one-time costs of closing of the financings and acquisitions. Cash used in operating activities was $705,717. Revenue for the quarter was $3,005,052 compared to $57,937 in the comparable quarter last year and $343,141 in the first quarter ending February 28, 2013 and $3,299,472 in the 2nd quarter ending May 31, 2013. The decline in sales from the second quarter is solely attributed to the technology division and the impact of summer vacations on billable resources.
The quarterly comparative in the financial statements is the period July 1, 2012 to September 30, 2012. Following completion in July, 2012 of the RTO by which the Company became publicly traded, SEB elected to use November 30 as its year-end for financial reporting purposes. The comparative statements are that of Smart Employee Solutions Inc., the target company in the RTO, which had been using September 30 as its year end.
The consolidated financial statements and related MD&A for the period ended August 31, 2013, can be found on SEDAR at under the profile of Smart Employee Benefits.
Neither the 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.
Contacts:
Smart Employee Benefits
John McKimm
Chief Executive Officer
(416) 460-2817
Smart Employee Benefits
Shelly Frank
VP Marketing
(888) 939-8885 Ext 358
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2013 - 22:40 Uhr
Sprache: Deutsch
News-ID 311149
Anzahl Zeichen: 0
contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Software
Diese Pressemitteilung wurde bisher 218 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SEB Reports Financial Results for the Quarter Ending August 31, 2013"
steht unter der journalistisch-redaktionellen Verantwortung von
Smart Employee Benefits Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
