U.S. Markets close in 5 hrs 15 mins

Edited Transcript of SY.V earnings conference call or presentation 11-Apr-17 3:00pm GMT

Thomson Reuters StreetEvents

Q4 2016 Symbility Solutions Inc Earnings Call

TORONTO Apr 22, 2017 (Thomson StreetEvents) -- Edited Transcript of Symbility Solutions Inc earnings conference call or presentation Tuesday, April 11, 2017 at 3:00:00pm GMT

TEXT version of Transcript


Corporate Participants


* Blair R. Baxter

Symbility Solutions Inc. - CFO and Corporate Secretary

* James R. Swayze

Symbility Solutions Inc. - CEO and Non-Independent Director


Conference Call Participants


* Blair Harold Abernethy

Industrial Alliance Securities Inc., Research Division - Research Analyst




Operator [1]


Good morning, ladies and gentlemen. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Symbility Solutions Full Year and Q4 2016 Financial Results Conference Call and Webcast. (Operator Instructions) Please note that this call is being recorded today, Tuesday, April 11, 2017, at 11:00 Eastern Time.

I would now like to turn the meeting over to your host for today's call, James Swayze, Chief Executive Officer of Symbility Solutions. Please go ahead.


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [2]


Thank you, Mike, and thank you, everyone. Welcome to Symbility's 2016 fourth quarter and year-end earnings (technical difficulty). To kick off our call, I will ask Blair Baxter, Symbility's Chief Financial Officer, to present our Q4 and annual 2016 financial results, which will include a slide presentation that attendees can follow via live webcast as stated in the announcement. After Blair's presentation, as indicated by Mike, I'll speak to some of the activity at Symbility in 2016, plus some new initiatives that have recently begun, and then we'll open the lines for questions.

Now, before I hand it off to Blair, I would like to state that our remark (technical difficulty) may contain forward-looking statements that are based upon what management believes to be reasonable estimates and assumptions. While Symbility cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements, the company, nevertheless, seeks safe harbor.

So with that said, I will hand it to you, Mr. Baxter.


Blair R. Baxter, Symbility Solutions Inc. - CFO and Corporate Secretary [3]


Thank you, James. Let me walk through the year results and some commentary on the fourth quarter as well. So going to the next slide, we're looking at selected financial information. As we announced, we had a 29% growth in revenue this year. Q4 at just over $9 million, was a record quarter for us. We are very pleased with that. The 12% growth year-over-year is an apples-to-apples comparison, whereas the 12-month period does include some acquisitions that happened in 2015.

One of the things that did grow in 2016 is our cost of sales, and I'm going to talk a little bit more about that, but it's a function of changing our financial -- or business model. And there's some details behind that

(technical difficulty)

get to in a couple of slides.

Our operating expenses increased by 6% for the year, and we're pleased with the reduction in our loss of 44%, from $6 million down to $3.4 million for the year.

I will reconcile our net loss and comprehensive loss for the period back to adjusted EBITDA, and that will be in about 3 more slides. So that's the highlights for the year.

Let's move on to revenue, and let's talk about the revenue for the year. We've had some good growth for the year. The (technical difficulty) Property for the 12-month period grew by 20%, that's going to come out of the supply-chain, some new carriers. And our international business grew in 2016, notwithstanding that both headers say 2015. So $21.9 million in 2016 in Property.

Health grew 17%. That business grew 11% in the quarter. It's historically been between 11% and 17% as a high watermark. Generally, 13%, 14%, 15% growth year-over-year. It's been a consistent performer in terms of growth for us.

Symbility Strategic Services, or what we market as Symbility Intersect, grew, but there is some hidden numbers here in the sense that we acquired it halfway through 2015. So while it looks like it grew 105%, it's a services business that grew 23% on a pro forma basis. We're pleased with that growth. And when you look at the Q4 growth, it grew 27% in Q4. The professional services business that (technical difficulty) does or the Strategic Services, does seem to be a little bit seasonal in Q4. If you look at the 6 quarters, Q4 has been a strong performer for that business group in the last 2 years.

So that's a synopsis of the revenue. Let's turn to expenses now on the next slide. What's not on this slide is cost of sales for property. So I want to just hit a couple of highlights. Cost of services for Property consists of hosting costs, revenue on resold products has a cost associated with it, cost of providing software. We provide analytic services with Logi software analytics, Logi Analytics, and then other costs associated with our software.

So in 2016, cost of sales for Property was 21%; in 2015, it was 20%; in Q4, it was 26%, a little bit higher than the average; and Q4 2015 was 25%. The focus for us as a business is to manage and reduce these costs going forward. There is, based on the revenue mix, some limited actions that we can take. We're looking at how can we address this going forward, but the numbers are consistent on a year-to-year basis.

So that's on the cost of sales from a Property per -- side. On the cost of sales for professional services or the Strategic Services. Year-over-year, the 12-month period again, we have a 6-month versus a 12-month period, so let's just focus on the fourth quarter. We had a growth in the -- 38% growth in the costs, excluding stock-based compensation, and only a 27% growth in revenue. We have bumps in our revenue, like we did in the fourth quarter, we turned to contractors, and we have less of a margin or a higher cost on contractors. We run about 25% contractors, 75% employees, and that gives us the flexibility to scale the group with demand. The cost is about 57% of revenue in Q4 versus 52% last year. And remember, we did have a jump of 27% in revenue in the fourth quarter compared to last year's fourth quarter.

Sales and marketing expense, which includes many things other than direct sales. For example, it includes training, account management, ensuring that our customer relationship, it's probably more -- better described as a customer relationship cost versus just straight sales and marketing. Some -- slightly unusual, we did have some reversal of stock-based compensation in the fourth quarter, but the quarter had an 11% growth rate whereas the year had a 17% growth rate. Again, we did have some acquisitions in 2015 that's driving that growth rate for the year. We do see that the cost -- that the sales and marketing costs are growing at a lesser rate than the revenue growth. If you look at the revenue growth in Health and Property and in Strategic Services, this is definitely a growth rate that is close, but not equal to the growth in sales.

Turning to research and development. In the year, we reduced R&D expenses by 2%. And in the last (technical difficulty) fourth quarter, we increased it by 50%. James is going to talk about the things that we've been doing in research and development to enhance our products across the Property and Health side. Again, in the Strategic Services side, we don't actually own products. We don't have any research and development in that segment of our business.

G&A cost decreased 7% in the fourth quarter. Our focus has been to manage these and make sure that we keep our G&A costs under control as we work to grow revenue, so that we can get some operating leverage in G&A as well as across all of our expense category. One of the things that I wanted to point out is our stock-based compensation for the year was $741,000, which we've excluded from these numbers, versus $1 million last year. That's kind of a -- it fluctuates a little bit. As you saw in the press release, we did issue some stock options -- we will be issuing some stock options. Those that we expensed over 3 years. So it's -- we expect that to be kind of our, going forward, between $740,000 and $1 million on an annual basis.

So if that's the expense side, let me turn to adjusted EBITDA on the next slide. Couple of things I wanted to point out here. For the year, we went from a loss of $380,000 to a small profit of $62,000 at an adjusted EBITDA line. We've been reducing the stock-based compensation, as I talked about. We've reduced the depreciation and amortization. This is around customer relationships backlog. We do have still the data license that we're amortizing, and a couple of other smaller things. Customer relationships in the U.K., we amortized over an extended period due to the length of the contracts, whereas in Strategic Services, they were a much shorter amortization period.

It sticks out a lot more -- it's much more evident when you look at the third -- the fourth quarter for the 3 months ended December 31, our depreciation and amortization was cut in half and our stock-based compensation is a fraction of what it was a year ago.

The business is improving, and we're pleased with that. And as James is going to talk about, we've provided guidance for next year, which has a better adjusted EBITDA guidance.

So finally, let me turn to our financial position on the next slide. Our cash and equivalents finished the year at $8 million, so up from $6.6 million at the end of the prior year. We were pretty consistent during the year, around $6.5 million in each quarter. Our accounts receivable are in good shape. They're sitting about 65 DSOs, days sales outstanding. Putting that in context, we bill monthly in arrears. So we're kind of getting paid on time in

(technical difficulty)

our segments, and we're pleased with that. One of the sources of cash, this -- at the end of the year was, if you look at our accounts payable, we had about $1 million increase in accounts payable, and that's simply timing on payments to suppliers. So some of that cash increase did come from increasing payables and accrued liabilities.

The final comment I had on this slide was, the deferred revenue has gone down about $900,000 from last year. We are seeing fewer and fewer clients doing an annual prepayment. Many are moving to quarterly prepayments. Again, from our perspective, receivables are in good shape. So it's -- our customers, it's not a -- on the Property side, our customers are big insurance carriers for the most part. So it's not a challenge for us to see regular payments, and once they're paying, they pay regularly.

So that's our financial position. That summarizes, James, the highlights from the fourth quarter and 2016. So if I could turn it back to you for comments.


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [4]


Okay. Thanks very much, Blair. And moving right into my first slide. For the fourth consecutive

(technical difficulty)

we've seen a healthy rate of growth in all 3 of our segments, resulting in year-over-year growth figures of 20% for Property, 17% for Health and 23% for Intersect or our Strategic Services Segment. And as Blair mentioned, considering that we now have a full year of services revenue for 2016, the overall revenue for Symbility is up by 29% in 2016 over 2015. So as stated earlier this year, we're expecting that 20% plus growth rate to continue into 2017. And given our revenue guidance of $40 million to $42 million in top line revenue, with a $2 million to $3 million in bottom line adjusted EBITDA.

So I'll carry through and start with the Property business. On the left side of the slide, I've summarized our pilot activity for 2016. Some of you on the line may recall that we decided to drop this metric in Q3, as we feel it's no longer truly reflective of our progress. But some shareholders were somewhat frustrated by that omission in Q3. The reason we feel it's not reflective is that we're now closing deals without pilots, especially with suppliers, where previously everyone required some form of a pilot. So if you compare the 10 wins through pilots to the 24 wins through contracts, the disparity is clear. So therefore, from here on out, we'll be detailing contract signings as a proxy for growth for all of our segments.

So the most positive growth that we've been experiencing lately is to the supply chain. The panel in the middle shows the past 4 years of cumulative assignments from independent adjusters and contractors in the U.S., in particular. In 2016, we have over 5 times the number of assignments we had in 2013, and that was a year in which we were at our peak production, with a top carrier in the U.S. market.

Now, looking at 2017 through the first 3 months of the year, we've already processed 30% more claim assignments than we did, again, in all of 2013.

So the more of the supply chain that we get onboard and train, the [stickier] we are with the carrier community, and the more revenue we generate per claim.

The addition of new online training modules has been one of the primary reasons for this accelerated usage by the supply chain. And where the U.S. is our most mature market, the trend we're seeing here is beginning to play out in European markets as well but at an earlier growth phase.

So carrying on to the next slide, and keeping with Property. I want to touch on a few more positive aspects of 2016, starting with our pipeline. I would've categorized 2014 and 2015 as years of expansion where the goal was to plant a flag in as many or more mature insurance markets globally. Where in 2016, the focus shifted towards entrenchment in these markets before the next wave of expansion.

This focus on our core markets now has us in active sales cycles with the majority of the top 10 insurance companies in the U.S. Internationally, we're engaged with many of the top 10 insurance carriers in multiple markets as well. So we've really done a great job entrenching ourselves in our core markets, and our pipeline has never been more robust.

One of the reasons for this successful growth to the pipeline is our ability to quickly integrate partner companies. We position our platform as the communication hub around a claim. And invariably, while many of these newer markets are not as evolved as North America, there is often some form of software used in some aspect of the claim where we need to integrate it into the hub.

In the (technical difficulty) market, for example, we have integrated the CoreLogic database for labor materials data, Enservio for contents pricing, ITEL for material evaluation and EagleView for aerial imagery for roofing, all feeding their specialized data into the claim file in our system in an automated fashion. So doing this in our new markets allows us to streamline the process by collecting a number of new service provider's data into a single electronic file for the insurance company. And by constantly adding new partners in every market as sort of nodes to the hub, we are better entrenching our position in those markets.

And finally, on this slide on the right-hand side, without a secure and stable platform, we would never add a single account. Our ability to demonstrate security through our ISO certifications gives us an opportunity to prove our value. And with the confidence provided with a platform stability of 99.9% uptime, new prospective customers need not be concerned over platform integrity. So having a (technical difficulty) platform with primary and redundant data centers located in 6 countries, serving 4 continents, without crashing year-in and year-out, has allowed Symbility to build a reputation for reliability to go along with our reputation as an innovator.

And with that, we'll move to the next slide. And this slide should explain why we're an innovator in the market, as it speaks to a couple of product initiatives that we introduced in 2016, that are both focused on the consumer.

We are still selling these products to insurance companies as a B2B sale, but the users are shifting from the insurance company professionals and supply chain to an insurance company's policyholders, and as such, the user interface and user experience, or UI, UX, as it's called, is critical to that customer loyalty.

So one example of this shift is the launch of our Symbility LINK Solution, on the left-hand side of the slide. An exciting new tool that brings us closer to an ever-growing B2C market. We launched it in the U.K. in 2016, where LINK is a white (technical difficulty) solution for insurance providers to offer monitoring capabilities to their customers when it comes to the claims process. So whether it's booking appointments, providing documents directly to policyholders or any of the other multitude of features that come along with the platform, LINK is unique and effective approach to minimizing inefficiencies in the claim process and providing consumers greater visibility through a very transparent tool.

So next to LINK, I share screenshots from our latest innovative product, which we call Sensai. This, again, is a white-label mobile app, which will enable the policyholder to submit a property claim directly to the insurance carrier without the need for a claim specialist review. This was introduced in the U.S. market at the tail end of 2016, and the first phase of the product launch is scheduled in the coming months.

So where Link is designed to help manage the process with suppliers around the rebuilding effort of a claim, Sensai is designed to handle smaller-size claims that can lead directly to cash settlement.

The first phase of this product has been designed to leverage (technical difficulty) scripts built around common claims questions with preconfigured assemblies of parts and labor most commonly performed for an estimate, so an automated process, and then using a chat bot to walk the policyholder through the process. So a robotic chat bot process, avoiding the need for additional human intervention.

When we expand our product suite in this fashion to reach through to our client's policyholders, insurance companies are showing an enormous deal of confidence in Symbility by allowing us to help them manage that customer experience. Where we previously had products and tools used by claim handlers, these new products have a direct impact on customer interactions and satisfaction, which is invaluable to our insurance company clients. So both of these products are tremendous examples of the joint skill sets from our Property platform development team and the Intersect services team. While the Property team has developed a core cloud platform that's both secure and stable, the Intersect team brings award-winning UI, (technical difficulty) capabilities required of consumer applications.

And on to the next slide, segueing from there onto our Strategic Services provided by the Intersect team. We continue to develop new and innovative solutions for insurance banking, employee benefits that extend beyond the scope of our core platforms and touch on a variety of processes for our customers. This includes other lines of insurance beyond property, and a great deal of payment products to assist a variety of verticals in the InsurTech, FinTech space and beyond. One area where we're increasing our resource development and R&D is focused on artificial intelligence. Building neural networks and machine learning as aspects of our application development is a growth area that will assist with all of our client projects, regardless of the underlying vertical.

Using these capabilities to help drive the success of our new products, like Sensai that I showed you on the other slide, is where we see the greatest benefit for Symbility. At this point, we have accumulated over 5 million claims worth of data, with an average of 16 photos per claim and thousands of data points in every one of those claims. Building artificial intelligence capabilities around this data will help with things like fraud detection, image recognition, vendor optimization and a host of automation, which will help products continuously learn and refine the accuracy of the estimates that they provide.

So as we continue to expand our global footprint to younger markets with less established processes, these types of automation (technical difficulty) will allow these more nascent markets to leapfrog the mature markets in their ability to build an easier customer experience. And our goal is to have our AI strategy operational in Q4 of this year, 2017.

So lastly, with respect to the growth of our Strategic Services, we will share our project count in the form of statements of work, comparable to the contract count we shared in Property but for the fact these projects represent one-time revenue versus the recurring revenue of the Property segment. While nonrecurring in nature, you can see that over 60% of our annual project work comes from repeat customers. So once we build an app for a customer, the natural tendency is to reach back to our team for upgrades or a refresh and -- once satisfied with that original build, as well as projects for new business requirements. And as we move forward, we intend to stick to our strategy of creating new and innovative solutions for the InsurTech field while revolutionizing our own platforms to stay well ahead of the curve. Approximately 75% of our new revenue opportunities are emerging from InsurTech, FinTech space, and the Intersect team has been integral to our future success.

And with that, we will move on to the Health segment, where we continue to see progress and product adoption on this side of the business, as demonstrated by the growth rate of 17% that I stated earlier.

Symbility Health is the only national health care software provider in Canada that provides fast, flexible, user-friendly tools to all third-party payers and administrators with a fully white-labeled solution for end-to-end. This model empowers our client's brand, giving complete control over management of administration, claims processes and customer support to guarantee the best service experience and pricing for their customers.

Our new mobile app, on the left-hand side of the screen, which we introduced in 2016 and recently launched, is the most modern, user-friendly app in the Canadian market. It offers a fully native environment, allowing our client's brand to be displayed in the Apple and Google Play stores with the ability to integrate with any platform through a very robust API application programming interface. The embedded Optical Character Recognition, or OCR technology, patented for fraud protection, automates the process while flagging anomalies for human review.

So once again, we have developed a solution that is critical to improving the benefits experienced for the end user, and that allows third-party administrators or payers to offer their own, unique customizable experience. And over time, our goal is to leverage artificial intelligence based on existing data to move our suite of products toward that consumer B2C focus as we're doing in the Property space as well. So on the right-hand side of this slide, in a similar fashion to that which we shared for Property and Services segments, we have shared the contract count for 2016. Our primary focus over the past year was to upsell our new products to existing customers before making a greater push to acquire new accounts. But the early feedback we've received gives us a lot of confidence that our model and tool set will generate a great deal of appeal with new potential customers.

And with that, I have 1 final slide. And lastly, under the heading of Corporate Matters, Symbility announced this morning a few items listed on the slide including the termination of the security holder agreement, the adoption of a shareholder rights plan and an advance notice by-law and the amendment to the company's general by-law.

So the security holders' agreement dated April 10, 2012, which is available on SEDAR, has terminated in accordance with its terms. This termination, which essentially relates to certain aspects of the business of the company and its subsidiaries, the rights provided to CoreLogic regarding the purchase of additional securities and the (technical difficulty) restrictions applicable to CoreLogic, which are no longer in force.

Next, the shareholder rights plan has been adopted to ensure the fair treatment of all shareholders of the company in connection with any takeover bid or other acquisition of control of the company. The rights plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of the company, and the company is not aware of any such pending or contemplated proposals. In that regard, the rights plan does not prevent a formal (technical difficulty) being made to all shareholders of the company, in compliance with securities laws, but is designed to protect the company from creeping takeovers made pursuant to acquisitions that are exempt from the formal bid requirements. The rights plan also prevents a bidder from entering into any lockup agreements with shareholders that cannot be terminated in the event a superior offer is received from a third party, which may inhibit the company's ability to conduct an auction.

The advance notice by-law was adopted in relation to advance notice requirements for (technical difficulty) elections to provide shareholders, directors and Symbility management with a clear framework for nominating directors of the company in connection with any annual or special meeting of the shareholders. Basically, any shareholder seeking to nominate a candidate for election as a director, must provide written notice 30 days prior to the date of the Annual Meeting. And finally, the amendment to the general by-law reflects changes to the Canadian residency requirements under the Business Corporation Act as well as a decrease to the quorum requirements for meetings of shareholders of the company from a majority to a 25% threshold.

Both of these changes are primarily housekeeping items that reflect the current makeup of the Symbility Board and the number of shareholders historically represented at our Annual General Meeting of Shareholders.

So that really concludes my formal remarks. And with that, on behalf of Blair Baxter and myself, I want to thank you for taking the time to listen to our presentation.

And we will now open the floor to questions.


Questions and Answers


Operator [1]


(Operator Instructions) Your first question is from Blair Abernethy from Industrial Alliance Securities.


Blair Harold Abernethy, Industrial Alliance Securities Inc., Research Division - Research Analyst [2]


James, I wonder if you could just give us maybe a little more color around what you're looking at in the artificial intelligence space. And how -- I guess, 2 things really. How impactful could this be to your product offering over the next year or so or 2? And do you have any early customer feedback or customer conversations that kind of shed light on what the interest level might be on the customer side?


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [3]


Okay. Well, at the extreme in the category of dare to dream, imagine picking up your phone and saying, Siri, my basement flooded, and having it respond through a series of intelligence, based off historical data, that guides you through a process that requires absolutely no human intervention until such time as somebody has got to slop through your basement and suck up the water. That's the dream. And when we look through the data that we have, and as I mentioned, we have over 5 million claims of accumulated data, the average size or severity, as it's called for these property claims, is in and around the $5,000 mark. When you think it costs upwards of $400 to $500 to send an adjustor in the company car out to visit that flooded basement, that's already 10% of the associated cost. So we're doing everything to build product that reduces the need or eliminates the need for that person to be involved. We have already started engaging companies that are local to Toronto that have expertise in the artificial intelligence field. We have been adding resources to our teams with this experience and hope to push

(technical difficulty)

as I mentioned in the fourth quarter. Again, the theory being, if you've done 1,000 flooded basements, you should, with a handful of questions and a couple of pictures, be able to estimate, on the basis of that past 1,000, what the cost of that flooded basement will be within a very narrow range percentage wise.

So the early feedback that we've received, and we've really only showcased this in the U.S. market thus far, has been tremendous. We had a customer event back in January, down in Florida, and we had 6 of the top 10 U.S. companies in attendance, in addition to our existing customer base. And the feedback was very positive. I think strides like this, tools of -- toward automation that are already leveraging artificial intelligence, are already further down the path in auto insurance. Auto is a little bit easier to do. It's got a very succinct list of parts for every car.

With a property, our outcomes need to be nearly infinite, because everyone's kitchen is different and so it's more complex. But with the usage of artificial intelligence, neural networks, machine learning, again with enough data and enough learning, you can guess to such a narrow range that it's worth rounding up from an insurance company's perspective to satisfy the customer and still save a small fortune. So the feedback's been great, and we're pushing forward to get the few -- first few active customers up and running.


Blair Harold Abernethy, Industrial Alliance Securities Inc., Research Division - Research Analyst [4]


Okay. That's great. Just shifting gears. Can you just chat a little bit about some of your partnerships on the Property side, in particular with CoreLogic? How has the market development been going lately? And over the next -- what do you see happening over the next year or 2? Are the partners becoming more important to you guys? Or what's -- what sort of the -- what's going on there?


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [5]


Well, I would say, from the outset, we built a platform with a very robust, published, open API. We never expected that we could be all things to all people, and therefore we wanted to have the ability [to] very quickly and easily integrate into new platforms. And it seems like every 3 to 6 months, there is a new product popping up on the horizon that people are interested in trying out and ultimately integrating into our platform.

Our goal has always been to be that primary communication hub through which all these other forms of data can be sifted, so that you have one place for all aspects of the claim and the estimate. And so to that extent, companies, as I said, are merging all of the time, and they are an integral part of what we offer to the market.

And CoreLogic, in particular, has always been one of our strongest partnerships. They are our provider of labor material pricing in the Canadian, U.S., Australian and New Zealand markets. They're reselling our products in Australia and New Zealand as the frontline. We are reselling aerial image products for them in the United States market, and we have constant interaction between the senior executives of CoreLogic and Symbility. Our sales leadership are comparing pipeline, and when the opportunity serves, specifically in the U.S. market, we're walking into accounts hand-in-hand and leveraging each other's relationships where necessary.

So I would say, the partnerships are as important as they've ever been. They're growing only in that there's more emerging technology, and our ability to integrate really quickly and really easily to these new emerging technologies is key to our ongoing growth.


Blair Harold Abernethy, Industrial Alliance Securities Inc., Research Division - Research Analyst [6]


Okay. Great. And just one last one from me. James, the -- any thoughts -- Intersect on the M&A side. I mean, Intersect has been a very successful addition to your business. What do you -- are you looking at anything now or over the next couple of years that you might want to add on to your platform?


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [7]


I think there are opportunities that exist and I -- harkening back to your last question around partners. There are so many pieces of technology coming out that could eventually be seen as tuck-in acquisitions. Our focus this year has been on organic growth, and to continue to drive top line and see the emergence of bottom line and hope that through the guidance numbers we've given, we're starting to show that leverage in the model. So where -- yes, the opportunities exist and they seem to appear every 3 to 6 months, with a new piece of technology that comes out. It's not an imminent plan for the business.


Blair Harold Abernethy, Industrial Alliance Securities Inc., Research Division - Research Analyst [8]


Okay, great. Thanks very much.


Operator [9]


(Operator Instructions) There are no further questions at this time. I will turn the call back over to the presenters.


James R. Swayze, Symbility Solutions Inc. - CEO and Non-Independent Director [10]


Well, I thank you very much for your attention. And if there are no further questions, I assume we've covered all aspects quite well, and we look forward to speaking to you in what will be probably only 5 or 6 weeks from now, when we file our Q1. Thank you, again, for your attendance. We look forward to speaking to you soon.


Operator [11]


This concludes today's conference call. You may now disconnect.