Click here to close now.

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
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps 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 bu...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Alert Logic provides Security-as-a-Service for on-premises, cloud, and hybrid IT infrastructures, delivering deep security insight and continuous protection for cust...
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...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations migh...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
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
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
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...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
DevOps Summit, 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 and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
SYS-CON Events announced today that Secure Infrastructure & Services 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. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
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 cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...