SEB Reports Fourth Quarter and Full Year ResultsPicture Gallery, Software Friday, 31. March 2017
MISSISSAUGA, ONTARIO — (Marketwired) — 03/31/17 — Mississauga, ON: Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSX VENTURE: SEB) today reported its financial results for the fourth quarter ended November 30, 2016.
HIGHLIGHTS FOR THE FOURTH QUARTER AND 2016 FISCAL YEAR
(All comparative figures are for the fourth quarter and full year 2016)
1) Operation Income:
Cash Operating expenses declined as a % of revenue:
2) Divisional Performance:
3) Consolidated Earnings (Loss), Operating Income
Operating income, prior to interest charges and net of non-cash expenses was $2,080,121 for fiscal 2016 versus a negative $748,485 for fiscal 2015.
It is expected by 2019 non-cash amortization costs will no longer be a material negative impact on earnings.
EQUITY FINANCING SUBSEQUENT TO FISCAL YEAR END
The term of this financing is $0.20 per unit where each unit consist of one share and one warrant exercisable at $0.30 per SEB share for a period of 18 months.
Closing of these financings consist of the following:
Insiders, the majority from the President/CEO/CIO of SEB, contributed $2,010,426 of these closings.
Subsequently the Company began closing a further equity issue of $1,500,000. The following has closed:
Of these amounts insiders contributed $100,000.
The remainder of this $1,500,000 is expected to close imminently.
John McKimm, President/CEO/CIO of SEB, states:
“SEB has progressed significantly in the past year. The Technology Division has had consistently strong growing cash flow for the past two years. Continued organic growth is expected in fiscal 2017. Backlog, renewals and option year contracts are in excess of $450 million. The Benefits division has required additional investment in fiscal 2016 to address new business opportunities with strategic partners. SEB has adopted a “Sales Channel” strategy which has resulted in multiple opportunities with strategic partners. SEB–s sales pipeline includes multiple transactions where SEB becomes the –strategic technology administration partner– for organizations who already have well established client opportunities. These opportunities are Canadian, U.S. and global. SEB–s Benefits Division is well positioned for strong growth in fiscal 2017 and is expected to have significant positive cash flow. Corporate costs are declining and expected to decline further in fiscal 2017 as a % of revenue. SEB Consolidated is well positioned for growth in both revenue and cash flow in fiscal 2017.”
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 offering SAAS and BPO solutions in the Health Benefits Sector 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. Benefits processing is a high-growth specialty practice area. Emphasis is on automating business processes utilizing SEB proprietary software solutions combined with solutions of third parties through joint ventures and partnerships. 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.
MEDIA AND INVESTOR CONTACTS:
Office (888) 939-8885 x 354
Cell (416) 460-2817