MISSISSAUGA, ONTARIO — (Marketwired) — 04/29/16 — Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSX VENTURE: SEB) today reported its financial results for the first quarter ended February 29, 2016.
FINANCIAL OVERVIEW FOR THE FIRST QUARTER
(All comparative figures are the first quarter prior year, unless stated otherwise.)
FINANCE HIGHLIGHTS DURING THE QUARTER
MANAGEMENT COMMENTS
John McKimm, President/CEO of SEB, states:
“SEB–s acquisition program continues to deliver positive results. The Company now has a geographic footprint across Canada, the UAE, India and Australia. The business base has been established for strong organic growth. Contracted backlog and expected renewals exceed $360.0m, up from approximately $25.0m, at November 2014. The SEB Group employs approximately 850 people globally, one third employees and the rest, contractors. Over $30.0m has been spent over the past four years on the acquisition and development of software solutions and hosting infrastructures, and acquiring companies that are core to the business.
The acquisition of Maplesoft is expected to increase the consolidated annual revenue of SEB by over $50.0m, contribute substantially to the overall profitability, and increase sales backlog and renewals by over $280.0m. This acquisition builds on our previous technology acquisitions (Somos Consulting Group Ltd., Logitek Technology Ltd., Inforica Inc., Stroma Service Consulting Inc., APS -Antian Professional Services Inc. and Paradigm Consulting Group Inc.), and will establish SEB as a leading Canadian company in the Cyber/IT Security, Information Management, IT Infrastructure Management, Data Centre Management, Project Management and Professional Services sectors, capable of delivering a broad portfolio of services and solutions to government and corporate clients, with specialty practices in healthcare and benefits processing solutions.
Transactions in the acquisition and joint venture pipeline for 2016 are well advanced. The cost structure of completed acquisitions continues to be optimized through cost reduction initiatives. The cost structure has been permanently reduced in the past 90 days by over $1.4m annualized, largely due to restructuring of the senior management team in both the Technology and Benefits Divisions. This has positioned the Company to emphasize growth initiatives in the Benefits Division for 2016. SEB has now reached the point where Management expects significant, ongoing, positive EBITDA from continuing operations.
The growth emphasis in 2016 and beyond will be on the Benefits Division. This will require additional investment in sales and marketing initiatives, acquisitions and joint ventures. Our Technology Division is staged for both double-digit, organic growth, and to support of the Benefits Division–s growth initiatives. SEB–s unique blend of benefit technology solutions are well-positioned to experience significant growth in 2016.”
ABOUT SEB
Smart Employee Benefits Inc.–s global infrastructure is comprised of two operating Divisions: Technology and Benefits. The Technology Division currently serves corporate and government clients across Canada and internationally. The Benefits Division focuses on SAAS and BPO solutions in the Health Sector and delivers its offerings to corporate and government clientele. The Benefits Division operates as a client of the Technology Division. The Technology Division is a critical competitive advantage in supporting the implementation of SEB–s benefits processing solutions into client environments. Acquisitions, joint ventures, and RFP wins will continue to be dominant influences in driving growth in both Divisions.
For further information about SEB, please visit .
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS RELEASE REPRESENTS THE COMPANY–S CURRENT EXPECTATIONS AND, ACCORDINGLY, IS SUBJECT TO CHANGE. HOWEVER, THE COMPANY EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.
All figures are in Canadian dollars unless otherwise stated.
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 AND INVESTOR CONTACTS:
John McKimm
President/CEO
(888) 939-8885 x 354 or (416) 460-2817
Glenn Akselrod
Bristol Capital Ltd.
(905) 326-1888 x10
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