IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results
for the first quarter ended October 31, 2009.
HIGHLIGHTS FOR THE QUARTER:
- Sales increase of 6% vs. year ago.
- Continued profitability.
- Cash increase of 18% vs. previous quarter and 59% vs. year ago.
- Working capital increase of 3% vs. previous quarter and 36% vs. year ago.
"We are pleased to see continued positive results in the first quarter of Fiscal
2010, with both sales and cash increasing vs. year ago" said Paul Baehr, IBEX
CEO.
"As expected, this quarter did not compare favourably with the robust previous
quarter, which contained a significant one-time gain related to our successful
currency hedging, and which also typically has higher sales than the first
quarter.
"Looking forward, we expect full-year operational profitability (which excludes
currency or hedging effects) at about the same level as last year", said Mr.
Baehr.
FINANCIAL RESULTS FOR THE FIRST QUARTER
Sales for the quarter ended October 31, 2009 totaled $646,656, an increase of 6%
as compared to $612,430 to the same period in the prior year, but representing a
decrease of 25% vs. the exceptionally strong previous quarter.(on average the
4th quarter of the years is significantly higher than the first quarter.
Sales of arthritis assays increased by 125% vs. year ago, and increased 56% vs.
the previous quarter. Sales of enzymes decreased by 5% vs. the previous year,
and were down by 31% vs. the strong previous quarter. This result was due to
shipment-timing, rather than a decrease in orders, as orders for enzyme related
devices continues to grow.
Net earnings for the quarter ended October 31, 2009 were $71,877 ($0.00 per
share), compared to net earnings of $337,414, ($0.01 per share) for the same
period year ago. The decrease in net earning is mainly due to a negative
$256,331 currency swing, as the strengthening of the Canadian dollar versus the
US dollar produced a currency loss of $44,712 versus a gain of $211,619 a year
ago.
Excluding the foreign exchange swings, expenses during the quarter increased 9%
vs. year-ago. This increase is mainly attributable to the increase in
employee-related cost and the increase of the level of business activity vs.
year ago.
Cash, Cash Equivalents, and Marketable Securities increased 18% during the
quarter to $2,661,569. The Company's working capital was $2,930,953 as at the
end of the first quarter ended October 31, 2009 and up from $2,838,635 as at the
end of the prior quarter ending July 31, 2009.
Financial Summary for the quarters ending
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October 31, October 31,
2009 2008
Revenues $646,656 $612,430
Earning Before Interests, Tax,
Depreciation & Amortization $103,350 $338,165
Depreciation & Amortization $32,708 $15,200
Net Earnings $71,877 $337,414
Profit per Share $0.00 $0.01
Cash, Cash Equivalents &
Marketable Securities $2,661,569 $1,676,039
Working Capital $2,930,953 $2,163,018
Outstanding shares at report
date (Common Shares) 24,703,244 24,703,244
LOOKING FORWARD
IBEX has been successful in bringing its existing business to profitability and
is now turning its attention to pursuing growth opportunities, including further
growing its base business, and maximizing shareholder value through strategic
initiatives with companies where increased market strength and synergies might
be obtained.
The Company expects to see increasing sales volume, and a healthy profit margin,
due to robust orders for its enzymes and arthritis assays, however, the
declining value of the US$ (our currency- of-sale) will have a negative impact
on recorded sales and profits when compared to Fiscal 2009 in which the company
booked a $408,710 hedging gain.
ABOUT IBEX
The Company manufactures and markets a series of proprietary enzymes
(heparinases and chondroitinases) for use in pharmaceutical research by our
customers, as well Heparinase I, which is used in many leading hemostasis
monitoring devices.
IBEX also manufactures and markets a series of arthritis assays which are widely
used in pharmaceutical research by our customers. These assays are based on the
discovery and increasing role of a number of specific molecular biomarkers
associated with collagen synthesis and degradation.
For more information, please visit the Company's web site at www.ibex.ca.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release
Safe Harbor Statement
All of the statements contained in this news release, other than statements of
fact that are independently verifiable at the date hereof, are forward-looking
statements. Such statements, based as they are on the current expectations of
management, inherently involve numerous risks and uncertainties, known and
unknown. Some examples of known risks are: the impact of general economic
conditions, general conditions in the pharmaceutical industry, changes in the
regulatory environment in the jurisdictions in which IBEX does business, stock
market volatility, fluctuations in costs, and changes to the competitive
environment due to consolidation or otherwise. Consequently, actual future
results may differ materially from the anticipated results expressed in the
forward-looking statements. IBEX disclaims any intention or obligation to update
these statements.
CONSOLIDATED BALANCE SHEETS
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October 31, July 31,
UNAUDITED 2009 2009
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$ $
ASSETS
Current assets
Cash and cash equivalents 2,661,569 2,260,344
Accounts receivable 686,443 996,830
Inventories 297,237 321,922
Prepaid expenses 43,352 63,258
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Sub-total current assets 3,688,601 3,642,354
Long term deposit 8,650 8,650
Property and equipment 561,264 530,544
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Total assets 4,258,515 4,181,548
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LIABILITIES
Current liabilities
Accounts payable and accrued
liabilities 766,298 761,208
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Total liabilities 766,298 761,208
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SHAREHOLDERS' EQUITY
Capital stock 52,660,078 52,660,078
Contributed surplus 401,553 401,553
Deficit (49,569,414) (49,641,291)
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Total shareholders' equity 3,492,217 3,420,340
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Total liabilities and
shareholders' equity 4,258,515 4,181,548
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CONSOLIDATED STATEMENTS OF DEFICIT October 31, October 31,
2009 2008
---------------------------------------------------------------------
$ $
Balance - Beginning of period (49 641 291) (50,985,029)
Net profit for the period 71,877 337,414
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Balance - End of period (49,569,414) (50,647,615)
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CONSOLIDATED STATEMENTS OF EARNING AND COMPREHENSIVE INCOME
UNAUDITED
---------------------------------------------------------------------
For the three months ended October 31st 2009 2008
---------------------------------------------------------------------
$ $
Revenue 646,656 612,430
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Operating expenses
Selling, general and
administrative expenses
and cost of goods sold (495,125) (488,910)
Amortization of property and
equipment (32,768) (15,200)
Other interest and bank charges (3,468) (3,078)
Foreign exchange (loss) gain (44,712) 211,619
Gain on sale of assets - 6,104
Investment income 1,294 14,449
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Total operating expenses (574,779) (275,016)
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Net profit and other comprehensive
income 71,877 337,414
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Net profit and other comprehensive
income per share
Basic and diluted $- $0.01
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See accompanying notes
CONSOLIDATED CASH FLOW STATEMENTS
UNAUDITED
---------------------------------------------------------------------
For the three months ended
October 31st 2009 2008
---------------------------------------------------------------------
$ $
Cash flows provided by (used in):
Operating activities
Net profit for the period 71,877 337,414
Items not affecting cash -
Amortization of property and equipment 32,768 15,200
Stock-based compensation costs - 2,351
Gain on disposal of property and
equipment - (6,104)
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Cash flow relating to operating
activities 104,645 348,861
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Net changes in non-cash working
capital items -
Decrease (increase) in accounts
receivable 310,387 (274,028)
Decrease in inventories 24,686 24,882
Decrease in prepaid expenses 19,905 40,910
Increase (decrease) in accounts
payable and accrued liabilities 5,089 (13,514)
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Net changes in non-cash working
capital balances relating to
operations 360,067 (221,750)
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Cash flow relating to operating
activities 464,712 127,111
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Investing activities
Additions to marketable securities - (209,207)
Proceeds on disposal of marketable
securities - 204,462
Additions to property and equipment (63,487) (24,440)
Proceeds on disposal of property
and equipment - 6,104
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Cash flow relating to financing
activities (63,487) (23,081)
---------------------------------------------------------------------
Increase in cash and cash equivalents
during the quater 401,225 104,030
Cash and cash equivalents
- Beginning of period 2,260,344 372,096
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Cash and cash equivalents
- End of period 2,661,569 476,126
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