IBEX Technologies Inc. (“IBEX” or the “Company”) (TSX Venture: IBT)
today reported its financial results for the fiscal year ended July
31, 2023.
According to Paul Baehr, IBEX President and CEO,
“We were pleased by the overall F2023 performance when compared to
an exceptional F2022, and in particular, with the Company’s
performance as compared to F2021 and F2020.”
Highlights:
- Revenues for the
year were only 5% lower than F2022, well above expectations, and
were 41% higher than the benchmark F2021.
- Earnings before
tax were down 15% as compared to F2022, but up over 200% when
compared to F2021 & F2020.
- Year-ending cash
and cash equivalents were $8,547,043, up 12% vs F2022 and up 193%
vs F2021.
Mr. Baehr further stated, “Looking forward we
expect F2024 results to be in line with F2023.”
- Revenues are
expected to be in the F2023 range, with continued strong growth in
the hemostasis business.
- Offsetting the
strong growth in hemostasis is the negative impact of the Company’s
exit from the marginally-profitable Arthritis ELIZA kit business
and some softness in other reagent customers.
- Earnings before
tax for F2024 are expected to be in line with F2023.
- Year-ending cash
is expected to reach $10M, an increase of 17%.
Note: All figures are in Canadian dollars unless
otherwise stated. The Company’s audited consolidated financial
statements for the year ended July 31, 2023 and the
accompanying notes and the related management’s discussion and
analysis is found on the Company’s website at www.ibex.ca or under
the Company’s profile on SEDAR at www.sedar.com.
FINANCIAL RESULTS FOR THE FOURTH QUARTER OF FISCAL
2023
Revenues for the quarter ended July 31, 2023 totaled $1,753,902,
decreasing by $316,112 (15%) from $2,070,014 in the same period
last year.
Expenses before tax totaling $1,397,079 were up
by $74,257 vs same quarter a year ago, relating to many offsetting
factors: a negative foreign exchange impact of $64,935 and an
increase in salaries & benefits of $63,459 mainly due to a
higher Profit-Sharing Plan accrual in the quarter; offset by a
decrease in finance expenses of $69,446 driven by interest on the
cash balances.
The company recorded earnings before tax for the
quarter of $356,623 down $390,369 versus earnings before tax of
$746,992 on a comparable basis in Fiscal 2022.
The increase in net earnings to $2,223,643 from
$34,764 in the same period last year is mainly due to a tax
reorganization resulting in the recording of previously unrecorded
tax assets on the balance sheet. This led to an income tax recovery
of $1,867,020 for the quarter versus an income tax expense of
$712,228 in the same quarter last year.
The decrease in earnings before tax for the
quarter, led the Company to record an EBITDA of $383,570 versus
$815,219 in the same period year ago.
EBITDA for the three months ended |
|
|
|
July 31,2023 |
|
July 31,2022 |
|
Net earnings |
|
$2,223,643 |
|
|
$34,764 |
|
Depreciation of property,
plant, equipment and intangible assets |
|
$53,555 |
|
|
$34,370 |
|
Depreciation of right-of-use
assets |
|
$68,341 |
|
|
$57,627 |
|
Interest – Net |
|
($94,949 |
) |
|
($23,770 |
) |
Income tax expense
(recovery) |
|
($1,867,020 |
) |
|
$712,228 |
|
Earnings before interest, tax,
depreciation and amortization |
|
$383,570 |
|
|
$815,219 |
|
|
|
|
|
|
|
|
It should be noted that “EBITDA” (Earnings
Before Interest, Tax, Depreciation & Amortization) is not a
performance measure defined by IFRS, but we, as well as investors
and analysts, consider that this performance measure facilitates
the evaluation of our ongoing operations and our ability to
generate cash flows to fund our cash requirements, including our
capital expenditures program. Note that our definition of this
measure may differ from the ones used by other public
corporations.
FINANCIAL RESULTS FOR THE
YEAR
Revenues for the year ended July 31, 2023
totaled $7,491,739 compared to $7,892,487 in the prior year, a
decrease of 5%.
Expenses before taxes totaled $5,473,925, a
decrease of $31,939. This small variance is due to many offsetting
factors, mainly: an increase in R&D costs of $323,210 offset by
an increase in SR&ED tax credits of $277,401 for the year.
Lower finance expenses of $292,137 driven by interest income on the
cash balances offsets the negative foreign exchange impact of
$151,356.
As mentioned above, the company recognized
previously unrecognized tax assets resulting in an income tax
recovery for the year ended July 31, 2023. Due to this tax
recovery, net earnings totaled $3,893,614 compared to net earnings
in FY2022 of $1,674,395.
The company recorded EBITDA of $2,161,702 versus
$2,760,885 in the same period last year, a decrease of $599,183,
due mainly to the decrease in revenues.
Financial Summary for the year ended |
|
July 31,2023 |
|
July 31,2022 |
|
Revenues |
|
$7,491,739 |
|
|
$7,892,487 |
|
Earnings before interest, tax,
depreciation & amortization (EBITDA) |
|
$2,161,702 |
|
|
$2,760,885 |
|
Depreciation of property,
plant, equipment and intangible assets |
|
$171,444 |
|
|
$149,214 |
|
Depreciation of right-of-use
assets |
|
$265,611 |
|
|
$220,719 |
|
Net earnings |
|
$3,983,614 |
|
|
$1,674,395 |
|
Earnings per share |
|
$0.16 |
|
|
$0.07 |
|
|
|
|
EBITDA for the year ended |
|
|
|
July 31,2023 |
|
July 31,2022 |
|
Net earnings |
|
$3,893,614 |
|
|
$1,674,395 |
|
Depreciation of property,
plant, equipment and intangible assets |
|
$171,444 |
|
|
$149,214 |
|
Depreciation of right-of-use
assets |
|
$265,611 |
|
|
$220,719 |
|
Interest - Net |
|
($293.167 |
) |
|
$4,329 |
|
Income tax expense
(recovery) |
|
($1,875,800 |
) |
|
$712,228 |
|
Earnings before interest,
taxes, depreciation and amortization |
|
$2,161,702 |
|
|
$2,760,885 |
|
|
|
|
|
|
|
|
Cash and cash equivalents increased by $905,991
to $8,547,043 during the year ended July 31, 2023 as
compared to the year ended July 31, 2022. Net working capital
reached $8,429,764, an increase of $1,155,431 from FY2022.
|
Balance Sheet Summary as at |
|
July 31,2023 |
|
July 31,2022 |
|
Cash and cash equivalents |
|
$8,547,043 |
|
|
$7,641,052 |
|
Net working capital |
|
$8,429,764 |
|
|
$7,274,333 |
|
Outstanding shares at report
date (common shares) |
|
24,644,244 |
|
|
24,784,244 |
|
|
|
|
|
|
|
|
NCIB
On July 17, 2023, the Company announced that the
Toronto Stock Venture Exchange approved the renewal of the Normal
Course Issuer Bid (“2024 NCIB”) that was originally launched on
July 29, 2022. Under the terms of the 2024 NCIB, the Company may
purchase for cancellation up to 1,500,000 common shares of the
Company, which represented 10% of its public float as at July 14,
2023. The new 2024 NCIB commenced on August 5, 2023 and will end on
the earlier of August 4, 2024 or when the Company completes its
maximum purchases under the NCIB. Furthermore, IBEX entered into an
agreement with a broker to facilitate purchases of its common
shares under the NCIB. Under IBEX’s automatic share purchase plan,
the broker may purchase common shares, which would ordinarily not
be permitted due to regulatory restrictions or self-imposed
blackout periods. After year-end and as of the date of the
financial statements, 64,600 shares were repurchased and cancelled
for a total of $42,584 for the original 2023 NCIB and 114,400
shares have been repurchased for the 2024 NCIB for a total of
$111,820.
LOOKING
FORWARD
As always, the future financial results of the
Company are difficult to predict as the Company’s customers have
significant variations in their purchasing patterns, as can be seen
from our quarterly results over the past few years.
COVID 19 had a significant impact, as customers
increased their purchases in F2022 for fear of supply chain
interruptions. Our sales softened somewhat as some of those
customers worked off those inventories in F2023.
On a positive note, our largest market
(hemostasis) continues to grow at a rapid pace which we expect to
continue into F2024. Customers in other markets appear to be
working off their inventory cushion, which may have an impact in
F2024.
The Company continues to work on a number of new
heparinase-containing clinical device projects with its key
customers. However, as with all developmental projects, we cannot
give assurances that any of these customer-driven projects will
come to market and produce significant revenues.
Development of DiaMaze® (diamine oxidase)
continues to advance. DiaMaze® is an enzyme targeted to persons
suffering from histamine intolerance and will be marketed as a
nutraceutical. We continue to make good progress in the development
of a commercial scale manufacturing process. The next critical
development steps will be selecting a manufacturer for commercial
product, and conducting toxicology studies which, if undertaken,
will increase R&D expenses in fiscal 2025.
ABOUT IBEX
IBEX manufactures and markets proteins for
biomedical use through its wholly owned subsidiary IBEX
Pharmaceuticals Inc. (Montréal, QC).
For more information, please visit the Company’s
website at www.ibex.ca.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Safe Harbour 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, as they are based on the current assessment or
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, except if
required by applicable laws.
In addition to the risk factors identified
above, IBEX is, and has been in the past, heavily reliant on three
products and five customers, the loss of any of which could have a
material effect on its profitability.
Contact:
Paul BaehrPresident & CEOIBEX Technologies
Inc.514-344-4004 x 143
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