Smart Employee Benefits Inc. (“SEB” or “Company”) (TSX VENTURE:SEB) is pleased to report its financial results for the year ending November 30, 2014. Ranked in April, 2014 as Canada’s top growth company in the ICT sector by Branham Group, SEB offers a full suite of technology-enabled services and solutions to its geographically diverse clientele. Clients are able to leverage project and consulting expertise, proprietary software offerings, group benefit administration and claims adjudication, auxiliary health administration services and information technology training and licensing.

John McKimm, President and CEO states: “2014 was an exciting year for SEB. Significant acquisitions, associated financings, partnership formations and restructuring have been completed laying the foundation for the Company’s strategic vision of modernizing the healthcare industry via technology. To date, SEB has closed nine acquisitions. Two in previous years, five during fiscal 2014, and two subsequent to the year end. This diversification and the resulting synergies have led to projected sustainable annual revenue in excess of $60 million. In addition, the Company now has a well-established physical presence in both Central and Western Canada.”

2014 Corporate Highlights 

The 2014 fiscal year included the following highlights:

• December 2, 2013-SEB acquired 50% of Inforica Inc., a company focused on delivering technical services and solutions to both private and public organizations;
• March 1, 2014-SEB acquired APS – Antian Professional Services Inc., a communication and personnel provider with significant vendor credentials with Canadian Military Organizations;
• March 14, 2014-SEB acquired Adeeva Nutritionals Canada Inc. and the wellness assets and business of Dr. James Meschino. The technical assets, a “Wellness Assessment” and an extensive library of published material and on-line videos, will form the basis of SEB’s Wellness Solution;
• June 11, 2014-SEB acquired Stroma Service Consulting Inc., a company providing software consulting and training, as well as licensing and installation of software services;
• November 3, 2014-SEB acquired 50% of Banyan Work Health Solutions Inc., BITS Licensing Inc. and Banyan IT Solutions Inc., adding disability management to SEB’s growing suite of Health and Wellness offerings.
• Financing for the above noted acquisitions included a $2,000,000 convertible note financing, a $3,000,000 equity raise, and warrant and option exercises resulting in cash proceeds of $1,746,188.

Subsequent to November 30, 2014:

• SEB sold the EDI Business of Logitek to DiCentral for $2,150,000;
• SEB acquired the highly profitable Paradigm Group of Companies which provide management consulting, change management, and application and IT services to corporate and government clients throughout the Prairie Provinces;
• SEB acquired 50% of SEB Benefits and HR Consulting Inc., expanding the Company’s Health and Wellness Division’s offerings to include consulting services and solutions in the areas of group and health benefits, retirement plans and human resources; and
• Additional debt financing with a Schedule A bank in the amount of $8,775,000 was completed.

2014 Financial Highlights

Revenues 

Revenue for the year was $20,022,220 compared to $10,153,539 in the prior year ending November 30, 2013. The increase in revenue was due in part to the consolidation of the newly acquired entities’ revenues, including; Inforica for the period December 2013 to November ($2,522,838), Antian from March to November ($553,879), Adeeva Nutritionals from March to November ($1,244,438), and Stroma Consulting Group for the period from June through November ($2,398,576). In addition, both Logitek and SOMOS showed growth in revenues.

Cost of Revenues 

The largest portion of “Cost of Revenues” was the compensation costs of contractors in SOMOS, Logitek and Inforica. While significant streamlining has taken place, these costs showed a net increase of $6,066,512 over the previous year which is consistent with the growth in revenues.

Net Loss 

For the year ending November 30, 2014, SEB recorded a loss of $7,089,198 which included interest of $546,815 and non-cash items of $2,771,974, made up of stock-based compensation cost of $975,043, accretion of non-cash interest of $793,987 related to SEB’s convertible financings, amortization of $1,032,420, depreciation of $228,454 and income tax recovery of $257,930. The Company is targeting being cash flow positive in fiscal 2015.

The consolidated financial statements and related MD&A for the period ended November 30, 2014, can be found on SEDAR at www.sedar.comunder the profile of Smart Employee Benefits.

About SEB 

Smart Employee Benefits Inc.’s global infrastructure is comprised of two Divisions; Technology and Health and Wellness.

The Technology Division currently serves corporate and government clients through three inter-related segments:

• Logitek and Inforica – Development, implementation, integration and hosting of software solutions for big data environments, retail supply chain, PCI compliant transaction processing, and energy management, amongst others;
• SOMOS – Leaders in the provision of information technology solutions in Central Canada. Services include: business, project, portfolio and IT consulting, and licensing and training for Marval™ and Prince2™; and
• Paradigm – Premier supplier of the most trusted consulting professionals in Western Canada, offering both IT and businesses consulting services, with a renowned reputation for continuous professional development.

The Health and Wellness Division focuses on software-enabled services in the Personal Health Sector and delivers its offerings to corporate and government clientele through four inter-related segments:

• SES Benefits – Utilizing its leading-edge proprietary benefit adjudication and administration software, SES is able to provide cost-effective, and flexible group plan design and administration, and fast, accurate secure claims adjudication to all types of customers;
• Banyan – Leveraging leading-edge proprietary disability management software, both national and global employers and insurers are offered full spectrum solutions in disability and workers compensation claims management;
• Meschino Health and Adeeva – Web-based individual health management platform, offering personalized assessments and education, in addition to being a producer of high quality products and formulations directed towards promoting health; and
• Consulting – Offering risk management solutions through health-related data analysis and consulting services including benefit program design, workers compensation and disability management audits, actuarial consulting, and strategies for wellness and mental health in the workplace.

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.

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