4 Quarters of Positive EBITDA
Conference Call Scheduled Tuesday, May, 4 at 11:00 A.M.
MISSISSAUGA, Ontario, April 29, 2021 (GLOBE NEWSWIRE) — Smart Employee Benefits Inc. (“SEB” or the “Company”) (TSXV: SEB) today reports its financial results for the first quarter ending February 28, 2021.
States John McKimm, President/CEO/CIO of Smart Employee Benefits Inc.:
“The first quarter, 2021 is the fourth straight quarter of positive EBITDA and Adjusted EBITDA. The trailing twelve months EBITDA was a positive $1,465,061 and adjusted EBITDA was $2,551,503 for the same period. Continued positive growth is targeted for the remainder of fiscal 2021 and beyond. Adjusted EBITDA and EBITDA improved significantly for the first quarter 2021 over the comparable period the previous year. Consolidated gross margin percentage improved by 6.1% compared to the first quarter 2020 and 6.2% over fiscal year 2020. Operating costs including professional fees reduction initiatives led to the year over year improvement in cost structure and resulted in reductions of approximately $560,543 quarter over quarter, 2021 compared to 2020.
EBITDA improved by $245,075 in the first quarter, 2021 to a positive $173,175 from a negative $71,900. Adjusted EBITDA improved by $726,446 to a positive $670,121 from a negative $56,324 in the same period the previous year. The improvement is attributed to a combination of company wide cost reduction initiatives, and revenue growth in the Benefits Operations.
SEB has made significant investments in both the Technology and Benefits Solutions revenue streams since the Company’s inception. Building the business and technology infrastructure, while a time consuming and costly process, has created significant values with blue chip and government clientele and strong strategic partnerships in both revenue streams. As a result, the Technology revenue stream currently experienced a positive $859,524 of EBITDA in the first quarter 2021 versus $524,270 the same period the previous year. The Benefits revenue stream experienced a positive $108,402 EBITDA versus a positive $30,019 during the same time frame. This trend is expected to continue in 2021, as growth is experienced in both revenue streams. Over 65% of first quarter revenues come from clients with more than 5-year histories with the Company.
Technology Operations have