IBEX TECHNOLOGIES INC.
TSX VENTURE : IBT

IBEX TECHNOLOGIES INC.

March 11, 2010 08:00 ET

IBEX Reports Second Quarter Fiscal 2010 Results: Net Earning Increase 47% vs. Year Ago

MONTREAL, QUEBEC--(Marketwire - March 10, 2010) - IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results for the second quarter ended January 31, 2010.

HIGHLIGHTS FOR THE QUARTER:

  • Quarterly net earnings increased 47% vs. year ago;

  • EPS double vs. year ago;

  • Working capital increased 43% vs. year ago (and 17% vs. previous quarter).

"Year to date results are in line with expectations, notwithstanding the quarter to quarter variability", said Paul Baehr, IBEX CEO. "Second half results are expected to be softer, given that certain customers are feathering back inventories. Cash and working capital continue to increase significantly, as the results from prior years hedges begin to flow in".

FINANCIAL RESULTS FOR THE SECOND QUARTER

In USD sales IBEX recorded its highest quarterly sales since going public, with total sales for this quarter reaching USD$838,297, up from USD$790,428 in same period a year ago, an increase of 6%.

Reported sales (CAD) for the quarter ended January 31, 2010 totaled $871,037 a decrease of 13% as compared to $995,557 to the same period in the prior year, but representing an increase of 35% vs. the previous quarter.

This decrease of 13% in CAD sales is due to the translation of current USD sales into Canadian sales. A higher value of the Canadian dollar negatively impacts the current USD sales by translating them into a lower Canadian amount. During the second quarter of fiscal year 2009, the average USD currency rate reached $1.2125 but dropped to an average of $1.0563 in the second quarter ended January 31, 2010.

Excluding the currency impact, sales of enzymes increased by 6% vs. the previous year, and by 55% vs. the previous quarter, tracing to continued strong demand for the point of care disposables sold by IBEX customers. Sales of arthritis assays increased by 6% vs. year ago, and increased 27% vs. the previous quarter.

Net earnings for the quarter ended January 31, 2010 were $424,993 or $0.02 per share, compared to net earnings of $289,110, or $0.01 per share, for the same period year ago, representing an increase of 47%. This can be mainly attributable to a gain of $129,673 in foreign exchange recorded in this quarter versus a loss of $43,002 recorded in the previous fiscal year.

Expenses during the quarter decreased by 37% vs. year-ago and also decreased by 22% vs. the previous quarter. This reduction in expenses is mainly attributable to foreign exchange impact, a higher inventory allocation and occupancy cost reduction. Expenses excluding foreign exchange impact were $575,717 vs. $663,445 year ago.

Cash, cash equivalents, and marketable securities increased 9% during the quarter to $2,904,889.

The Company's working capital was $3,433,285 as at the end of the second quarter ended January 31, 2010 and up from $2,390,884 at the end of the prior year's quarter ending January 31, 2009.

Financial Summary for the quarters ending

  January 31, January 31,
  2010 2009
     
Revenues $871,037 $995,557
     
Earning Before Interests, Tax, Depreciation & Amortization $457,130 $300,698
     
Depreciation & Amortization $34,974 $16,818
     
Net Earnings $424,993 $289,110
     
Net Earnings per Share $0.02 $0.01
     
Cash, Cash Equivalents & Marketable Securities $2,904,889 $1,848,396
     
Net Working Capital $3,433,285 $2,390,884
     
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.

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.

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    
  January 31 , July 31,
UNAUDITED 2010 2009
  $ $
ASSETS    
 
Current assets    
Cash and cash equivalents 2,904,890 2,260,344
Accounts receivable 516,320 996,830
Inventories 364,373 321,922
Prepaid expenses 9,902 63,258
Sub-total current assets 3,795,485 3,642,354
 
Long term deposit 8,650 8,650
Property and equipment 544,705 530,544
Total assets 4,348,840 4,181,548
 
LIABILITIES    
 
Current liabilities    
Accounts payable and accrued liabilities 370,850 761,208
Total liabilities 370,850 761,208
 
SHAREHOLDERS' EQUITY    
 
Capital stock 52,660,078 52,660,078
Contributed surplus 462,333 401,553
Deficit (49,144,421) (49,641,291)
Total shareholders' equity 3,977,990 3,420,340
Total liabilities and shareholders' equity 4,348,840 4,181,548
   
CONSOLIDATED STATEMENTS OF DEFICIT January 31, January 31,
  2010 2009
  $ $
 
Balance - Beginning of period (49 641 291) (50,985,029)
 
Net earnings for the period 496,870 626,525
Balance - End of period (49,144,421) (50,358,504)
         
         
         
CONSOLIDATED STATEMENTS OF EARNING AND COMPREHENSIVE INCOME  
 
UNAUDITED        
  Three months ended January 31st Six months ended January 31st
  2010 2009 2010 2009
  $ $ $ $
 
Revenue 871,037 995,557 1,517,693 1,607,988
 
Operating expenses        
           
  Selling, general and administrative expenses and cost of goods sold (540,414) (648,009) (1,035,539) (1,136,919)
  Amortization of property and equipment (34,974) (16,818) (67,741) (32,018)
  Other interest and bank charges (3,166) (8,133) (6,635) (11,211)
  Foreign exchange gain (loss) 129,673 (43,002) 84,960 168,617
  Gain on sale of assets - 4,285 - 10,389
  Investment income 2,837 5,230 4,132 19,679
Total operating expenses (446,044) (706,447) (1,020,823) (981,463)
 
Net earnings and other comprehensive income 424,993 289,110 496,870 626,525
 
Net earnings and other comprehensive income per share        
  Basic and diluted $0.02 $0.01 $0.02 $0.03
 
See accompanying notes        
     
     
     
CONSOLIDATED CASH FLOW STATEMENTS Three months ended January 31st Six months ended January 31st
UNAUDITED 2010 2009 2010 2009
 
  $ $ $ $
 
Cash flows provided by (used in):        
Operating activities        
Net profit for the period 424,993 289,110 496,870 626,525
Items not affecting cash -        
  Amortization of property and equipment 34,974 16,818 67,741 32,018
  Stock-based compensation costs 60,780 2,605 60,780 4,952
  Gain on disposal of property and equipment - (4,285) - (10,389)
 
Cash flow relating to operating activities 520,747 304,248 625,391 653,106
 
Net changes in non-cash working capital items -        
  Decrease (increase) in accounts receivable 170,123 (174,022) 480,511 (448,049)
  Increase in inventories (67,136) (60,837) (42,451) (35,954)
  Decrease (increase) in prepaid expenses 33,450 (16,430) 53,356 24,480
  (Decrease) increase in accounts payable and accrued liabilities (395,446) 196,320 (390,360) 182,804
Net changes in non-cash working capital balances relating to operations (259,009) (54,969) 101,056 (276,719)
Cash flow relating to operating activities 261,738 249,279 726,447 376,387
 
Investing activities        
Additions to marketable securities - - - (209,207)
Proceeds on disposal of marketable securities - 1,199,912 - 1,404,375
Additions to property and equipment (18,415) (80,663) (81,902) (105,104)
Proceeds on disposal of property and equipment - 4,285 - 10,389
Cash flow relating to financing activities (18,415) 1,123,534 (81,902) 1,100,453
 
Increase in cash and cash equivalents during the quater 243,323 1,372,813 644,545 717,617
Cash and cash equivalents - Beginning of period 2,661,567 476,123 2,260,345 348,752
Cash and cash equivalents - End of period 2,904,890 1,848,936 2,904,890 1,066,369

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • IBEX Technologies Inc.
    Paul Baehr
    President & CEO
    514-344-4004 x 143
    514-344-8827 (FAX)
    www.ibex.ca