Click here to close now.

Welcome!

News Feed Item

SEB Reports Financial Results for the Year Ending November 30, 2013

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.

SEB History

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.

Fiscal 2013

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.

Contacts:
MEDIA CONTACTS:
Smart Employee Benefits Inc.
John McKimm
President/Chief Executive Officer
(416) 460-2817
[email protected]

Smart Employee Benefits Inc.
Shelly Frank
Vice-President, Marketing
(888) 939-8885 x 358
[email protected]

First Canadian Capital Corp.
Dan Boase
416-742-5600 or 1-866-580-8891
[email protected]

First Canadian Capital Corp.
Eric Balog
416-742-5600 or 1-866-580-8891
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"CenturyLink brings a full suite of services to the table and that enables us to be an IT service provider," explained Jeff Katzen, Director of the Cloud Practice at CenturyLink, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.