Automated Benefits enjoying breakout year

Today, the company announced it had formed a partnership agreement with Northwestern Ontario’s largest union of electrical workers, the International Brotherhood of Electrical Workers Local Union 402. IBEW Local 402 will implement Automated Benefit’s Web-based hour banking product, Adjudicare, to provide their union members with a way to track their hour banking data and benefit plan eligibility.

This morning’s announcement comes on the heels of a win on the other side of Automated Benefits business. On Monday, Symbility Solutions signed a multiyear agreement with Rytech, a network of certified water damage mitigation specialists, to integrate Symbility into Rytech’s operations.

After a slide that began seven years ago, 2012 has been a good year for shareholders of Automated Benefits. In January, the company announced it would acquire the claims division of Marshall & Swift/Boeckh, for $18.1-million. MSB, which was owned by Kansas City based market research firm Decision Insight, added three execs to the board of Automated Benefits and became the largest single shareholder in the company. The acquisition added annualized revenue of approximately $8-milion to Automated Benefit’s topline.

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Shareholders saw the first real impact of the acquisition when Automated Benefits reported its Q1, 2012 results on May 30th. The company’s revenue increased by 42% to approximately $2.36-million for the three months ended March 31, 2012, up from $1.67-million in the same period last year.

The Toronto-based company is divided into two operating divisions, Automated Benefits Inc., which develops software to improve health and dental claims, and Symbility Solutions, which focuses on property claims. Symbility speeds up property claims and makes the process more transparent by giving every claim participant real-time access and collaborative tools.

Shares of Automated Benefits closed today up 2.2% to $.46 cents.

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