Welcome!

News Feed Item

SEB Reports Financial Results for the Quarter Ending February 28, 2014

TORONTO, ONTARIO -- (Marketwired) -- 04/28/14 -- Smart Employee Benefits Inc. ("SEB" or "Company") (TSX VENTURE: SEB) today reported its financial results for the quarter ending February 28, 2014.

SEB Overview

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.

SEB's Benefits Practice is focused on two primary target markets in Canada - employee group health benefits which exceed $37.0 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 benefit portion 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 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.

--  Creating new unique benefits solutions made possible by the SEB
    technology platform.

The progress SEB has made in 2011 through fiscal 2013 has positioned the company in 2014 to achieve strong growth and sustainable profitability.

SEB's 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 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 health 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.

SEB's Growth Strategy based on acquisitions and organic initiatives

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 2014 is acquisition-based, complemented by organic growth initiatives, 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 stronger organic growth initiatives. From the beginning of Fiscal 2013 until now, SEB has closed 5 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.

SEB developments during the quarter ending February 28, 2014


--  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.

SEB developments subsequent to February 28, 2014


--  March 14, 2013 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 quarter ended February 28, 2014

For the quarter ending February 28, 2014, SEB recorded a loss of $1,092,950 which included non-cash costs of $312,743, made up of accretion of interest of $90,431 related to SEB's Convertible Financings, amortization of $197,084 and depreciation of $25,228. The loss before interest, non-cash items and the minority interest in the earnings of Inforica was $644,573.

Revenue for the quarter was $4,257,290 compared to $343,141 in the comparable period ending February 28, 2013. The increase in revenue was due to the inclusion of the all the revenues of Logitek Technology Ltd. (compared to one month in the comparable quarter), and all of the revenues of Somos Consulting Group Ltd. and the Inforica group. The Compensation portion of Cost of revenues primarily reflects the cost of contractors of Logitek, SOMOS and Inforica placed with clients during the period subsequent to acquisition, and not present in the previous comparable quarter, resulting in the large increase. Of the other operations costs, the largest was salaries and other compensation costs of $844,577 (a portion of which was related to software development and maintenance); the next was professional fees of $175,595, of which $49,226 was related to the one-time costs of closing of the Inforica acquisition as well as some audit and valuation costs.

The major sources of cash during the quarter were proceeds (net of closing costs) from the convertible financing of $1,751,809 and $254,800 from the exercise of warrants.

The unaudited condensed interim consolidated financial statements and related MD&A for the period ended February 28, 2014, can be found on SEDAR at www.sedar.com 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 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
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today TechTarget has been named “Media 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. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.