MISSISSAUGA, Ontario, Feb. 02, 2022 (GLOBE NEWSWIRE) — Smart Employee Benefits Inc., (“SEB” or the Company) (TSXV:SEB, OTCQX: SEBFF), through its operating entities, has been awarded new contracts valued in excess of $38M. These contracts extend out as long as 6 years including option years with the majority of revenue realized in the 2 to 4 year range. These contracts are all net new business and adds to SEB’s recurring revenue contract value, increasing this value to over $450.0M. The contracts were competitive RFP (Request for Proposal) bids. SEB’s RFP win rate in the past year is >65%, an increase from >50% in fiscal 2020 and >30% in 2019. Our RFP win rate has been steadily increasing since 2019. RFP wins together with Channel Partner White Label TPA client acquisition transactions are steadily growing the Company’s contract values. Today, the Company has visibility on over 90% of 2022 budgeted revenues and over 80% of 2022 forecast revenues out to 2025. SEB’s contracts are largely recurring revenue managed service business with contracts ranging out as long as 9 years.
These contract awards reinforce SEB’s strong positioning as one of the leading suppliers of expertise in Information Technology and Benefits Processing (software, solutions, services) to both the Enterprise and Public sectors. These awards come at a time when Governments (Federal and Provincial) and Corporations are responding to the dynamic challenges of Covid-19 and the concurrent need to increasingly digitize and automate business processes. The wins also indicate the stability of SEB’s client base, even in times of economic turmoil.
To support its growing business the Company has entered into an amending agreement with its lender with respect to its $10,000,000 revolving credit facility to amend the definition of the term Borrowing Base therein, thereby allowing the Company to increase the utilization under such credit facility.
States Mohamad El Chayah, COO of SEB and President/CEO of SEB Administrative Services Inc. (“SEB Admin”): “We continue to experience increasing demand in all 3 business lines, IT Services “ITS”, Business Process Services “BPS” and Professional Services “PS” and across all 6 practices – Cloud Computing, Digital Solutions and Services, Enterprise and Cyber Security, Data Management, Business Process Outsourcing and Project Services. These new contract wins reflect the effectiveness of our operating model to be responsive to market drivers, customer needs and provide the efficiency and value extraction to win in an increasingly complex market conditions. We are very pleased to see our growth momentum continue with this strong start to 2022. This builds on the record wins of $140.0M in 2021. We are thrilled to see more of our technology and people solutions driving the digital transformation journey for our clients in the public, enterprise and emerging market segments. Our recent ISO 27001 Certification further strengthens our competitive advantage in winning new business and renewing existing contracts.”
About Smart Employee Benefits Inc. (“SEB”):
SEB 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 8 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.
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.
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All figures are in Canadian dollars unless otherwise stated.
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