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Smart Employee Benefits Reports Q2/2022 Results

·19 min read
Smart Employee Benefits Inc.
Smart Employee Benefits Inc.

9 Consecutive Quarters of Positive Adjusted EBITDA;

Conference Call Thursday August 4th at 3:30 P.M.

  • Q2/2022 revenue at $16.7 million increased by 3.8% versus Q2/2021 and 4.2% over Q1/2022

  • Posted 9th consecutive quarter of positive adjusted EBITDA

  • Trailing Twelve Months (“TTM”) revenue increased by $5.0 million (8.5%) and TTM gross profit increased by $0.148 million (0.7%)

  • Over 90% of targeted 2022 revenues are currently under contract

  • Future revenue and EBITDA are expected to experience significant growth, driven by the Company’s strong business pipeline

MISSISSAUGA, Ontario, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSXV: SEB) (OTCQB: SEBFF) reports its financial results for the second quarter ending May 31, 2022 (“Q2/2022”). SEB is an Insurtech company focused on technologies that provide leading-edge, cloud based end-to-end IT and benefit processing software, solutions and services for the life and group benefits marketplace and government.

Please refer to the interim unaudited consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the six months ended May 31, 2022, filed on SEDAR at www.sedar.com for more information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.

Q2/2022 Highlights:

  • Consolidated:

    • Revenue: Grew 3.8% to $16.7 million versus $16.1 million in Q2/2021

    • Nine consecutive quarters of positive Adjusted EBITDA.

  • Benefits Solutions:

    • Revenue: $4.5 million versus $4.6 million in Q2/2021

    • Eight consecutive quarters of positive EBITDA.

  • Technology Services:

    • Revenue: $12.6 million versus $12.1 million in Q2/2021.

    • Adjusted EBITDA: $0.7 million versus $1.1 million in Q2/2021.

    • EBITDA: $0.7 million versus $1.1 million in Q2/2021.

  • Over 65% of year-to-date revenues come from clients with more than 5-year histories with the Company.

  • With over $240 million of contract wins in the last 18-months and over $470 million of total contract value, management expects year-over-year increases in fiscal 2022 Revenue, Adjusted EBITDA and EBITDA.

States John McKimm, President/CEO/CIO of Smart Employee Benefits Inc.:
“Since our inception, SEB has been investing in both Technology Services operations and more significantly in Benefits Solutions. Historically, Technology Services has strong profitability. Benefits Solutions has required significant investment, the majority of which has been expensed. This has penalized historical cash flow, net earnings and EBITDA, but going forward, Benefits Solutions should require minimal capital expenditures. The cost structure from acquisitions and integrations has been largely realigned and we anticipate both Technology Services and Benefits Solutions to show strong growth and positive cash flow in Fiscal 2022 and beyond. Today, approximately 80% of every new gross margin dollar goes to cash flow and EBITDA in both revenue streams. The contract values, including backlog, option years and evergreen, remain strong, with the Company continually renewing or winning sufficient new business to maintain and grow future annual revenues. Over 90% of 2022 targeted revenues are under contract, with over 80% under contract for the subsequent 4 years; and some under contract for as long as 11 years. The Company has established strong traction in multiple new business initiatives and is well positioned to win new business going forward. A one-time contract in the first half of 2022 increased the cost structure and reduced margins; however, this contract is considered an investment in the future as it contributes to both Intellectual Property assets opening opportunities with new clients and longer-term managed services revenue.”

Business Development Activities Fiscal 2022:
Relationships have been consolidated and grown with multiple new business partners. The Company’s Channel Partner strategy has gained strong traction with more than a dozen active negotiations with brokerage organizations, Master General Agents, Third Party Administrators (“TPA”), insurers, unions, and corporate entities. Several agreements have been executed with Channel Partners; with revenue growth expected in 2022 and beyond. Channel Partner “White Label TPA” agreements have been signed with organizations representing over 180,000 plan members. Additionally, RFP wins added over 60,000 plan members in Fiscal 2021. Approximately 160,000 of those plan members are in transition, expected to be live later in 2022.

The Company’s RFP and Channel Partner sales pipeline is the largest it has ever been (in both corporate and government opportunities) for both Technology Services and Benefits software and solutions driven revenue streams.

Business Outlook:
Technology Services revenues have historically been cash flow positive, and net new business wins and renewals remain strong. Benefits Solutions revenue is becoming cash flow positive after considerable investments in technology, business infrastructure, and client acquisition. We expect both revenue streams to have continued strong sustainable growth going forward. Signed contracts (backlog, evergreen, option years), based on a 5-year time frame are valued at over $470 million, of which over $130 million is Benefits Solutions revenue. Approximately 80% of 2022 forecast revenue targets are expected to be recurring over the next 4 years, with additional recurring revenue going out as long as 11 years. Since November 30, 2020, the Company has won over $240 million of net new contracts, including option years.

COVID-19 has led to increasing demand for the Company’s Benefits Solutions, including “online medical care partnerships”. In Technology Services, we saw an increase in revenues in the first half of the year which was a direct result of the contract wins in the past 18 months. Total Contract Values for the Company continue to grow, and utilization of the contracts is gaining stronger traction as government and businesses streamline and adjust to COVID-19 operating business processes.

The majority of the Company’s business is largely multi-year, managed services-driven recurring revenue contracts for managing and operating mission critical technology and people infrastructure for our clients. On a consolidated level, in Q2/2021 the Company applied for and received approximately $0.339 million of COVID-19 government relief to support the Technology Services operations as opposed to no support in Q2/2022. This resulted in lower profitability when comparing the two quarters. However, this has allowed the Company to keep valuable full-time staff employed throughout the pandemic, who are now deployed to support the current and anticipated growth.

The consolidated sales pipeline is the strongest it has ever been. The cost savings initiatives taken over the past several years largely benefited the Company in 2020 and 2021 with some continued benefits into fiscal 2022.

Comparative Consolidated Results for the Second Quarter and Six Months 2022 and 2021:

 

 

3 months ended

 

YTD ended

 

 

May-22

May-21

 

May-22

May-21

Revenue

 

$

16,663,735

 

$

16,059,834

 

 

$

32,663,870

 

$

30,388,064

 

Cost of revenues

 

 

11,054,364

 

 

10,130,214

 

 

 

21,787,216

 

 

18,970,194

 

Gross Margin

 

 

5,609,371

 

 

5,929,620

 

 

 

10,876,654

 

 

11,417,870

 

Gross Margin as a % of Revenue

 

 

33.7%

 

 

36.9%

 

 

 

33.3%

 

 

38.3%

 

 

 

 

 

 

 

 

Operating costs

 

 

5,256,087

 

 

4,569,274

 

 

 

10,261,241

 

 

9,106,583

 

Professional fees

 

 

209,624

 

 

344,994

 

 

 

413,969

 

 

625,815

 

Adjusted EBITDA

 

 

143,658

 

 

1,015,350

 

 

 

201,444

 

 

1,685,471

 

 

 

 

 

 

 

 

Change in Investment

 

 

-

 

 

104,164

 

 

 

-

 

 

104,164

 

Gain on sale of investment

 

 

(89,618

)

 

-

 

 

 

(89,618

)

 

-

 

Decommissioning costs

 

 

28,206

 

 

-

 

 

 

104,037

 

 

-

 

Share-based compensation

 

 

158,280

 

 

121,339

 

 

 

402,580

 

 

618,286

 

Transaction costs

 

 

484,854

 

 

81,999

 

 

 

574,289

 

 

81,999

 

EBITDA

 

$

(438,063

)

$

707,847

 

 

$

(789,844

)

$

881,022

 

 

 

 

 

 

 

 

Net loss from operations

 

$

(2,461,761

)

$

(789,871

)

 

$

(4,421,368

)

$

(2,265,729

)

Consolidated Segmented results for the Six Months ended May 31, 2022 and 2021:

Smart Employee Benefits Inc.

 

 

Segmented Income Statement Detail for
the Six Months May 31, 2022 (in C$)

Technology

Benefits

Corporate

Intercompany
Sales/COS

Total
Company

Revenue

$

24,286,984

$

9,118,116

$

-

 

$

(741,230

)

$

32,663,870

 

Cost of revenues

 

 

 

 

 

Cost of revenues

 

20,162,273

 

2,366,173

 

-

 

 

(741,230

)

 

21,787,216

 

Gross margin

 

4,124,711

 

6,751,943

 

-

 

 

-

 

 

10,876,654

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Salaries and other compensation costs

 

2,520,786

 

4,738,622

 

495,340

 

 

-

 

 

7,754,748

 

Office and general

 

343,511

 

1,477,775

 

685,207

 

 

-

 

 

2,506,492

 

Professional fees

 

57,842

 

22,298

 

333,829

 

 

-

 

 

413,969

 

 

 

2,922,140

 

6,238,694

 

1,514,375

 

 

-

 

 

10,675,209

 

 

 

 

 

 

 

Adjusted EBITDA

 

1,202,572

 

513,248

 

(1,514,375

)

 

-

 

 

201,444

 

 

 

 

 

 

 

Decommissioning cost

 

104,037

 

-

 

-

 

 

-

 

 

104,037

 

Gain on sale of investment

 

-

 

-

 

(89,618

)

 

-

 

 

(89,618

)

Transaction costs

 

-

 

-

 

574,289

 

 

-

 

 

574,289

 

Share-based compensation

 

4,886

 

12,617

 

385,077

 

 

-

 

 

402,580

 

 

 

 

 

 

 

EBITDA

 

1,093,649

 

500,631

 

(2,384,124

)

 

-

 

 

(789,844

)

 

 

 

 

 

 

Amortization of intangible assets

 

5,948

 

225,038

 

39,911

 

 

-

 

 

270,897

 

Depreciation of equipment

 

40,640

 

22,551

 

-

 

 

-

 

 

63,191

 

Depreciation of right-of-use assets

 

54,089

 

127,186

 

299,424

 

 

-

 

 

480,698

 

Interest and financing costs

 

91,520

 

106,451

 

2,618,767

 

 

-

 

 

2,816,738

 

 

 

 

 

 

 

Net income (loss)

$

901,452

$

19,405

$

(5,342,226

)

$

-

 

$

(4,421,368

)


Smart Employee Benefits Inc.

 

 

Segmented Income Statement Detail for
the Six Months ended May 31, 2021 (in C$)

Technology

Benefits

Corporate

Intercompany
Sales/COS

Total
Company

Revenue

$

22,641,524

$

8,760,689

$

-

 

$

(1,014,149

)

$

30,388,064

 

Cost of revenues

 

 

 

 

 

Cost of revenues

 

17,998,915

 

1,985,428

 

-

 

 

(1,014,149

)

 

18,970,194

 

Gross margin

 

4,642,608

 

6,775,262

 

-

 

 

-

 

 

11,417,870

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Salaries and other compensation costs

 

2,134,021

 

4,605,511

 

635,751

 

 

-

 

 

7,375,282

 

Office and general

 

362,718

 

1,148,904

 

219,677

 

 

-

 

 

1,731,302

 

Professional fees

 

104,234

 

49,285

 

472,297

 

 

-

 

 

625,815

 

 

 

2,600,973

 

5,803,700

 

1,327,725

 

 

-

 

 

9,732,399

 

 

 

 

 

 

 

Adjusted EBITDA

 

2,041,636

 

971,562

 

(1,327,725

)

 

-

 

 

1,685,471

 

 

 

 

 

 

 

Change in investment

 

-

 

-

 

104,164

 

 

-

 

 

104,164

 

Transaction costs

 

-

 

-

 

81,999

 

 

-

 

 

81,999

 

Share-based compensation

 

121,217

 

208,681

 

288,388

 

 

-

 

 

618,286

 

 

 

 

 

 

 

EBITDA

 

1,920,418

 

762,881

 

(1,802,277

)

 

-

 

 

881,021

 

 

 

 

 

 

 

Amortization of intangible assets

 

5,106

 

207,668

 

39,911

 

 

-

 

 

252,684

 

Depreciation of equipment

 

55,852

 

40,093

 

-

 

 

-

 

 

95,944

 

Depreciation of right-of-use assets

 

54,089

 

127,185

 

299,424

 

 

-

 

 

480,698

 

Interest and financing costs

 

87,474

 

64,576

 

2,164,432

 

 

-

 

 

2,316,482

 

Income tax recovery

 

943

 

-

 

-

 

 

-

 

 

943

 

 

 

 

 

 

 

Net income (loss)

$

1,716,954

$

323,364

$

(4,306,043

)

$

-

 

$

(2,265,729

)

Consolidated Segmented results for the Second Quarters ended May 31, 2022 and 2021:

Smart Employee Benefits Inc.

 

 

Segmented Income Statement Detail for
the quarter ended May 31, 2022 (in C$)

Technology

Benefits

Corporate

Intercompany
Sales/COS

Total
Company

Revenue

$

12,553,738

$

4,488,781

$

-

 

$

(378,785

)

$

16,663,734

 

Cost of revenues

 

 

 

 

 

Cost of revenues

 

10,301,448

 

1,131,701

 

-

 

 

(378,785

)

 

11,054,364

 

Gross margin

 

2,252,290

 

3,357,080

 

-

 

 

-

 

 

5,609,370

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Salaries and other compensation costs

 

1,411,760

 

2,318,325

 

253,231

 

 

-

 

 

3,983,317

 

Office and general

 

91,838

 

717,360

 

463,575

 

 

-

 

 

1,272,773

 

Professional fees

 

31,580

 

8,915

 

169,129

 

 

-

 

 

209,624

 

 

 

1,535,178

 

3,044,599

 

885,936

 

 

-

 

 

5,465,714

 

 

 

 

 

 

 

Adjusted EBITDA

 

717,112

 

312,482

 

(885,936

)

 

-

 

 

143,657

 

 

 

 

 

 

 

Decommissioning cost

 

28,206

 

-

 

-

 

 

-

 

 

28,206

 

Gain on sale of investment

 

-

 

-

 

(89,618

)

 

-

 

 

(89,618

)

Transaction costs

 

-

 

-

 

484,854

 

 

-

 

 

484,854

 

Share-based compensation

 

1,080

 

-

 

157,200

 

 

-

 

 

158,280

 

 

 

 

 

 

 

EBITDA

 

687,826

 

312,482

 

(1,438,372

)

 

-

 

 

(438,066

)

 

 

 

 

 

 

Amortization of intangible assets

 

2,974

 

124,089

 

19,955

 

 

-

 

 

147,018

 

Depreciation of equipment

 

20,342

 

10,607

 

-

 

 

-

 

 

30,950

 

Depreciation of right-of-use assets

 

26,596

 

62,539

 

147,231

 

 

-

 

 

236,366

 

Interest and financing costs

 

47,740

 

84,985

 

1,476,641

 

 

-

 

 

1,609,365

 

 

 

 

 

 

 

Net income (loss)

$

590,174

$

30,261

$

(3,082,197

)

$

-

 

$

(2,461,762

)


Smart Employee Benefits Inc.

 

 

Segmented Income Statement Detail for
the quarter ended May 31, 2021 (in C$)

Technology

Benefits

Corporate

Intercompany
Sales/COS

Total
Company

Revenue

$

12,088,125

$

4,550,036

$

-

 

$

(578,327

)

$

16,059,834

 

Cost of revenues

 

 

 

 

 

Cost of revenues

 

9,696,669

 

1,011,873

 

-

 

 

(578,327

)

 

10,130,214

 

Gross margin

 

2,391,456

 

3,538,164

 

-

 

 

-

 

 

5,929,620

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Salaries and other compensation costs

 

1,112,489

 

2,277,828

 

330,439

 

 

-

 

 

3,720,755

 

Office and general

 

169,240

 

562,125

 

117,156

 

 

-

 

 

848,522

 

Professional fees

 

48,834

 

43,732

 

252,428

 

 

-

 

 

344,994

 

 

 

1,330,562

 

2,883,685

 

700,023

 

 

-

 

 

4,914,272

 

 

 

 

 

 

 

Adjusted EBITDA

 

1,060,894

 

654,479

 

(700,023

)

 

-

 

 

1,015,349

 

 

 

 

 

 

 

Transaction costs

 

-

 

-

 

81,999

 

 

-

 

 

81,999

 

Share-based compensation

 

-

 

-

 

121,339

 

 

-

 

 

121,339

 

 

 

 

 

 

 

EBITDA

 

1,060,894

 

654,479

 

(1,007,526

)

 

-

 

 

707,846

 

 

 

 

 

 

 

Amortization of intangible assets

 

2,553

 

106,062

 

19,956

 

 

-

 

 

128,570

 

Depreciation of equipment

 

27,926

 

19,000

 

-

 

 

-

 

 

46,926

 

Depreciation of right-of-use assets

 

26,596

 

62,539

 

147,231

 

 

-

 

 

236,365

 

Interest and financing costs

 

47,662

 

36,014

 

1,001,237

 

 

-

 

 

1,084,914

 

 

 

 

 

 

 

Net income (loss)

$

955,213

$

430,863

$

(2,175,948

)

$

-

 

$

(789,871

)

Reconciliation of Consolidated Net loss to EBITDA for the Six Months ended May 31, 2022 and 2021:

 

 

3 months ended

YTD ended

 

 

May-22

May-21

May-22

May-21

Net loss from operations

 

$

(2,461,761

)

$

(789,871

)

$

(4,421,368

)

$

(2,265,729

)

Interest and financing costs

 

 

1,609,365

 

 

1,084,914

 

 

2,816,738

 

 

2,316,482

 

Income tax expense

 

 

-

 

 

943

 

 

-

 

 

943

 

Depreciation and amortization

 

 

177,967

 

 

175,496

 

 

334,088

 

 

348,628

 

Depreciation of right-of-use assets

 

 

236,366

 

 

236,365

 

 

480,698

 

 

480,698

 

EBITDA

 

 

(438,063

)

 

707,847

 

 

(789,844

)

 

881,022

 

 

 

 

 

 

 

Change in investment

 

 

-

 

 

104,164

 

 

-

 

 

104,164

 

Gain on sale of investment

 

 

(89,618

)

 

-

 

 

(89,618

)

 

-

 

Decommissioning costs

 

 

28,206

 

 

-

 

 

104,037

 

 

-

 

Share- based compensation

 

 

158,280

 

 

121,339

 

 

402,580

 

 

618,286

 

Transaction costs

 

 

484,854

 

 

81,999

 

 

574,289

 

 

81,999

 

Adjusted EBITDA

 

$

143,658

 

$

1,015,350

 

$

201,444

 

$

1,685,471

 

Revenue Increased 3.8% Quarter Over Quarter:

During Q2/2022, consolidated revenues from continuing operations was $16.7 million versus $16.1 million in Q2/2021. Technology Services revenue increased by $0.5 million while the Benefits Solutions revenues decreased by $0.1 million. Contract values remain high with over $240 million of new wins in the last 18 months. Approximately 80% of 2022 forecast consolidated revenue streams are under contract for the next 4 years, representing >90% for Benefits Solutions revenues and >70% for Technology Services revenue. The Company’s growth focus is on the higher margin Benefit Solutions revenue, although Technology Services revenues continue to experience significant growth.

Gross Margin and Gross Profit:

The Company generated $5.6 million in Gross Profit in Q2/2022 versus $6.0 million in Q2/2021. Gross Margin was 33.7% in Q2/2022 compared to 36.9% in Q2/2021. The reduction in Gross Margin and Gross Profit in the Q2/2022 was largely due to two notable one-time projects in Q2/2022.

Technology Services Gross Profit (Gross Margin) in Q2/2022 was $2.3 million (17.9%) versus $2.4 million (19.8%) in Q2/2021.

The Benefits Solutions Gross Profit (Gross Margin) was $3.4 million (74.8%) versus $3.5 million (77.8%) largely due to lower Gross Margins in the online medical module sales.

Operational Costs:

  • Salaries and Other Compensation - Salaries increased by $0.3 million during Q2/2022 compared to the same period the prior year. The increase is mainly due to a reduction in COVID relief funding when compared to the same period last year.

  • Office and General Costs – Office and general costs increased by nearly $0.4 million during Q2/2022 versus Q2/2021. The increase is largely due to no COVID-19 subsidy and rent credits in Q2/2022 as opposed Q2/2021.

  • Professional Fees - Professional fees remained relatively flat in Q2/2022 compared to Q2/2021. Professional fees vary with the amount of financing or acquisition/disposition activity during the period.

Non-Cash Expenses:
Non-Cash expenses include amortization, depreciation and share-based (options, RSUs) compensation remain flat during Q2/2022 versus Q2/2021.

Interest and Financing Costs, Interest Accretion and Transaction Costs:
Interest and financing costs, interest accretion from continuing operations increased from $1.1 million in Q2/2021 to $1.6 million in Q2/2022, which is due to increased credit facility and convertible debt. The transaction costs expense increased by $0.4 million in Q2/2022 compared to Q2/2021. There were no significant transactions costs in fiscal 2021 as compared to the actively involved equity financing that occurred in the current quarter.

Decommissioning Costs:
Approximately $0.03 million of costs in Q2/2022 were one-time, related to the decommissioning of select operations in Western Canada. Total decommissioning costs are estimated at approximately $0.45 million to be recognized on a quarterly basis over the subsequent 12 months. The Company has reorganized select operations such that these activities will be managed from our Ottawa offices.

Grant of Options and RSUs:
On March 9, 2022, pursuant to the Company’s Omnibus Long-Term Incentive Plan (the “Plan”), the Company granted 1,700,000 options to a consultant. The options have a 36-month term, vest 25% on the third, the sixth, the ninth and the twelfth months, and are exercisable at $0.22 per share. On April 27, 2022, the Company granted 200,000 options to an employee. The options have a 36-month term, vest after 24 months, and are exercisable at $0.16 per share. On April 27, 2022, the Company granted 77,500 options to various employees. The options have a 42-months term, vest 10% every six months for 30 months with the remaining 50% vest after 36 months. They are exercisable at $0.16 per share.

On April 27, 2022, the Company has granted an aggregate of 140,625 RSUs to an employee. The RSUs were vested immediately. Each vested RSU entitles the holder to acquire one common share of the Company. The Shares issued upon such RSU settlement shall be issued as fully paid and non-assessable Shares, each RSU is valued at market price of $0.16 per share. On the same date, the Company has also granted an aggregate of 232,500 RSUs to various employees. The RSUs were issued in accordance with the Plan. The RSUs will be vested 10% every six months for 30 months with the remaining 50% vested after 36 months. Each vested RSU entitles the holder to acquire one common share of the Company. The Shares issued upon such RSU settlement shall be issued as fully paid and non-assessable Shares, each RSU is valued at market price of $0.16 per share.

A minimum of 25% of the directors’ fees for Fiscal 2021 and 2022 must be compensated in RSUs and the directors can choose to be either compensated in cash or RSUs for the remaining 75%. As a result, the Company has also committed to issue 212,714 RSUs at $0.20 per share and 296,807 RSUs at $0.16 per share to the directors for the service provided in Q1 and Q2 2022. The RSUs will vest 100% after 12 months.

CONFERENCE CALL DETAILS:
Management will host a call:
Date/Time: Thursday August 4th, at 3:30 PM ET
Canada & USA Toll Free Dial In: 1-800-319-4610
Toronto Toll Dial In: 1-416-915-3239
Callers should dial in 5-10 minutes prior to the scheduled start time and simply ask to join the call. 
Webcast Link access at http://services.choruscall.ca/links/seb2022q2.html

Conference Call Replay Numbers:

Canada & USA Toll Free:

1-855-669-9658

Code:

9328 followed by the # sign

Replay Duration: Available for one week until end of day Thursday August 11th, 2022.

About Smart Employee Benefits Inc. (“SEB”):
SEB is an Insurtech company focused on Benefits Administration Technology driving two interrelated revenue streams – Benefits Solutions and Technology Services. The Company is a proven provider of leading-edge IT and benefits processing software, solutions and services for the Life and Group benefits marketplace and government. We design, customize, build and manage mission critical, end-to-end technology, people and infrastructure solutions using SEB’s proprietary technologies and expertise and partner technologies. We manage mission critical business processes for over 150 blue chip and government accounts, nationally and globally. Over 90% of our revenue and contracts are multi-year recurring revenue streams contracts related to government, insurance, healthcare, benefits and e-commerce. Our solutions are supported nationally and globally by over 600 multi-certified technical professionals in a multi-lingual infrastructure, from multiple offices across Canada and globally.

Our solutions include both software and services driven ecosystems including multiple SaaS solutions, cloud solutions & services, managed services offering smart sourcing (near shore/offshore), managed security services, custom software development and support, professional services, deep systems integration expertise and multiple specialty practice areas including AI, CRM, BI, Portals, EDI, e-commerce, digital transformation, analytics, project management to mention a few. The Company has more than 20 strategic partnerships/relationships with leading global and regional technology and consulting organizations.

Forward-looking statements:
Certain information in this release, may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.

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.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

All figures are in Canadian dollars unless otherwise stated.

Media and Investor Contact
John McKimm
President/CEO/CIO
Office (888) 939-8885 x 2354
Cell (416) 460-2817
john.mckimm@seb-inc.com