|By Marketwired .||
|April 1, 2014 12:33 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 04/01/14 -- Smart Employee Benefits Inc. ("SEB" or the "Company") (TSX VENTURE:SEB), today reported its financial results for the fiscal year ending November 30, 2013.
SEB is a technology company with two primary 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 was founded in January 2011 with the acquisition of SES Benefits Inc., a company focused on selling its adjudication technology services to the employee health benefits marketplace. During 2011 and 2012, SEB's objective was to use the adjudication technology as the backbone to build a fully integrated end to end "Administration - Adjudication - Billing Payment - Reporting" technology platform. This platform would enable a services business model targeting the processing of health benefits in an industry characterized by archaic and inflexible technology infrastructure. While enhancements continue, the core development was completed in fiscal 2013. SEB began its client acquisition strategy in early 2013. The focus was to acquire, make investments in or joint venture with organizations in the benefits industry where the SEB technology platform introduced a significant competitive advantage.
SEB's Benefits division is focused on two primary target markets in Canada - employee group health benefits which exceed $35.0 billion annually and government funded health benefits (federal and provincial) which are in excess of $25.0 billion. SEB's technology platform is easily adaptable to managing the end-to-end business processes in both environments. Of the $60.0 plus billion market in Canada, the employee group health benefits portion of the market has grown over 80% in the past decade.
SEB's business growth strategy for developing the benefits business has the following components:
-- Maintaining the leading technology platform for managing group benefit solutions and health claims processing environments. This includes developing unique benefit solutions made possible by the technology platform. -- Acquiring and making investments in existing benefit administration businesses and technology companies serving the corporate and government markets with the objective of expanding SEB's health benefit processing footprint across Canada. -- Transitioning to the SEB technology environment the benefits-processing (administration, claims-adjudication and reporting) currently outsourced by the acquired businesses to third parties. -- Developing a significant footprint in managing federal and provincial government health benefit programs.
The progress SEB has made in the 2011 through fiscal 2013 period has positioned the Company well for anticipated strong growth and sustainable profitability in fiscal 2014."
Technology Platform Provides Competitive Advantage in Benefits Management
SEB has spent over $6 million since 2011 automating the administration, payment processing/billing and reporting modules of its technology 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 real time "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. Reporting is the most detailed in the industry with self-serve functionality including real time access to standard reports and data mining capabilities for customized reports. The largest current implementation of the SEB Adjudication Environment is Oman Insurance in Dubai.
The Benefits division of SEB operates as a Third Party Administrator ("TPA") and technology provider supporting unique benefit solutions. The immediate 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 and investments 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.
The growth plan for 2013 was acquisition based. The plan for 2014 is acquisition-based, complemented by organic growth initiatives. The objective is to reach consolidated profitability within the fiscal year 2014 and establishing a solid base of business and clients from which to expedite organic growth initiatives. From the beginning of fiscal 2013 until now, SEB has closed five acquisitions and has announced a sixth that is expected to give the Company a solid base of sustainable profitable revenue in excess of $25 million and established offices in Toronto, Ottawa, North Bay, UAE and India. Historically, the consolidated annual revenues for these six acquisitions exceed $25 million. These transactions bring a solid profitable base of business and clients, both corporate and government.
Fiscal 2013 Announcements
In the period since the beginning of the 2013 fiscal year, the following have occurred:
-- December 27, 2012-SEB closed a convertible notes financing of $554,000. -- February 7, 2013-SEB closed the acquisition of Logitek Technology Ltd. -- February 7, 2013-Latiq Qureshi, President and CEO of Logitek, joined the Board of Directors. -- February 27, 2013-SEB closed an equity placement of $1,106,000 at $0.35 per unit. -- March 5, 2013-SEB closed the acquisition of the SOMOS Group of Companies. -- April 1, 2013-Christine Hrudka joined the Board of Directors. -- April 23, 2013-SEB granted 1,219,000 options to 57 key employees within SEB and its subsidiaries and the new director, Christine Hrudka. -- May 8, 2013-Ron Barbaro, previously the Lead Director of the Board of Directors was appointed Chairman of the Board. This step transitioned the Chairman position from an inside director to an independent director. -- May 14, 2013-SEB closed a convertible-notes financing of $1,025,000, acquired by independent directors of SEB, one of whom is the Chairman. -- September 6, 2013-SEB closed a convertible-notes financing of $975,000, of which $840,000 was acquired by a pro-group or insiders of SEB. -- October 22, 2013-SEB announced it had reached agreement to acquire Stroma Services Consulting Ltd, a provider of software, consulting, and training services having a significant presence with clients in health care. The transaction is expected to close shortly. -- November 18, 2013-SEB closed an equity private placement of $500,000; consisting of 1,250,000 units at a purchase price of $0.40 per unit, with each unit consisting of 1 common share of SEB and 1 common share purchase warrant of SEB.
Post Fiscal 2013 Announcements
-- December 2, 2013-SEB closed the acquisition of a 50% interest in the Inforica Group of Companies through its wholly owned subsidiary, Logitek Technology Ltd. -- February 12, 2014-SEB closed a $2,000,000 convertible note offering. -- March 14, 2014-SEB closed the acquisition of Adeeva Nutritionals Canada Inc. and the Wellness assets and business of Dr. James Meschino Health and Wellness. -- March 18, 2014-SEB's wholly owned subsidiary, Somos Consulting Group Ltd., closed the acquisition of Antian Professional Services Inc.
Financial Results for the year ended November 30, 2013
For the year ending November 30, 2013, SEB recorded a loss of $3,960,711 which included non-cash items of $765,826, made up of a Stock-based compensation cost of $265,717, accretion of non-cash interest of $185,871 related to SEB's Convertible Financings, amortization of $497,616, depreciation of $128,185 and deferred tax recovery of $(311,563). Of the other operations costs, the largest was salaries and other compensation costs of $3,195,585 (the largest portion of which was related to software development and maintenance); the next was professional fees of $648,126, much of which was related to the one-time costs of closing of the financings and acquisitions. Cash used in operating activities was $2,657,391. Revenue for the year was $10,153,539 compared to $294,298 in the 14 month comparable period ending November 30, 2012. The increase in revenue was due to the inclusion of the revenues of the acquired companies; Logitek Technology Ltd. for the period from February through November ($3,457,140) and Somos Consulting Group Ltd. for the period from March through November ($6,453,293).
The yearly comparative in the financial statements is the period October 1, 2011 to November 30, 2012. Following completion in July, 2012 of the qualifying transaction ("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, for the period until the RTO after which the statements reflect the post-RTO combined company Smart Employee Benefits Inc.
The consolidated financial statements and related MD&A for the period ended November 30, 2013, can be found on SEDAR at www.sedar.com under the profile of Smart Employee Benefits Inc.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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.
Smart Employee Benefits Inc.
President/Chief Executive Officer
Smart Employee Benefits Inc.
(888) 939-8885 x 358
First Canadian Capital Corp.
416-742-5600 or 1-866-580-8891
First Canadian Capital Corp.
416-742-5600 or 1-866-580-8891
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 8, 2016 08:00 PM EST Reads: 130
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 8, 2016 06:30 PM EST Reads: 166
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 8, 2016 03:00 PM EST
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 8, 2016 03:00 PM EST Reads: 574
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Feb. 8, 2016 02:00 PM EST Reads: 341
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 8, 2016 02:00 PM EST Reads: 377
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
Feb. 8, 2016 02:00 PM EST Reads: 208
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Feb. 8, 2016 01:30 PM EST Reads: 174
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 8, 2016 12:45 PM EST Reads: 356
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
Feb. 8, 2016 12:30 PM EST Reads: 235
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 8, 2016 12:30 PM EST Reads: 144
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 8, 2016 12:00 PM EST Reads: 158
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 8, 2016 10:45 AM EST Reads: 383
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Feb. 8, 2016 10:15 AM EST Reads: 365
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Feb. 8, 2016 09:45 AM EST Reads: 171