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Smart Employee Benefits says benefits division is showing steady improvement

Gross margin was $21M versus $18.5mln in the same nine months of 2017
At the benefits division, revenues are growing, gross margins are strong, the company said

Tech group Smart Employee Benefits Inc (CVE:SEB) issued another set of encouraging quarterly numbers, which showed its benefits division was showing a steady improvement.

The company supplies business process and outsourcing software, solutions and services to a Canadian and global client base with the focus on employer-and government-sponsored health benefit plans.

READ: Smart Employee Benefits says results show steady improvement

"Consolidated results for gross margin, adjusted EBITDA and EBITDA for the nine months ended August 31, 2018 showed steady improvement from the comparable periods in 2017 and 2016, John McKimm, the president and CEO said.

Gross margin was $21M versus $18.5M in the same nine months of 2017.

Adjusted EBITDA (underlying earnings) was $1.4M versus $995,000 a year ago, and EBITDA was $675,000 against a loss of $3.4M a year ago.

The net loss for continuing operations $5.1M compared to a net loss of $9.1M in the same nine months of 2017. Revenue was $74.9M versus $76.5M in 2017.

At the benefits division, revenues are growing, gross margins are strong, 22 of 23 client contracts (representing over 100,000 employees) that have matured since April 2017 have been renewed, the firm said.

"SEB has invested heavily in its benefits processing solutions over the past number of years. This has penalized consolidated EBITDA," said McKimm.
"In 2017, SEB gained serious traction in the Benefits Division with the Aon transaction.

"Today we have over 50 name brand clients representing over 330,000 employees and over $1 Billion of premium."

SEB shares in Toronto were unchanged at $0.20

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