Symbility Solutions Reports 2015 First Quarter Financial Results

Symbility Solutions Inc. (TSXV:SY) announced its financial results for the 2015 first quarter, which showed a net loss of $1.0 million or $0.01 per share and a cash balance of $5.2 million.

As quoted in the press release:

In the three months ended March 31, 2015, consolidated revenue was $5 million, this compares to revenues of $7.2 million in the same period last year, which represents a decrease of 30 percent or $2.1 million.

The net loss for the three months ending March 31, 2015, was $1.9 million and represents a basic and fully diluted loss per share of $(0.01). This compares to net loss of $698,000 in the same period last year, representing a basic and fully diluted loss per share of ($0.01). The Corporation has a cash balance of $5.2 million as at March 31, 2015.

On a pro forma basis, assuming the previously announced acquisition of customer contracts and related people from The Innovation Group (LSE: TIG) that was completed March 31, 2015, had occurred January 1, 2015, revenue decreased to $5.9 million for the three months ending March 31, 2015. This compares to revenues of $7.2 million in the same period last year.

The Corporation believes Adjusted EBITDA2 is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Pro forma Adjusted EBITDA for the three months ending March 31, 2015, was ($554,000) compared to Adjusted EBITDA of $808,000 in the same period last year.

James Swayze, CEO of Symbility Solutions, commented:

As we had announced at the beginning of 2014, our largest customer terminated at year-end which impacted our first quarter revenue. This customer, together with the supply chain, represented $10.3 million which effectively reset our revenue to $17.5 million to start 2015. While we knew it would be challenging to recoup this lost revenue in a single year, we are pleased to report that our first quarter financial results, together with the pro forma growth attributable to the business we acquired in the UK have us at a run rate of approximately $23.5 million with a more balanced customer concentration of 10 percent.

Click here to read the full Symbility Solutions Inc. (TSXV:SY) press release.