MONTREAL, QUEBEC--(Marketwire - June 16, 2010) - IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results for the third quarter ended April 30, 2010.
FINANCIAL RESULTS FOR THE THIRD QUARTER
IBEX noted that during the third quarter of fiscal year 2010, the average exchange rate for USD, the currency-of-sale, dropped to $1.03 vs. $1.25 in the third quarter ended April 30, 2009.
Partially as a result of this decline in our currency-of-sale, reported sales in Canadian dollars for the quarter ended April 30, decreased 56% as compared to the exceptional quarter year-ago, and decreased 46% vs. the previous quarter.
Additionally, the year-ago quarter benefited from a large one time order pertaining to an arthritis study which is no longer running. Also contributing to the decline in this quarter vs. year ago was a reduction in orders by one of our major customers of diagnostic enzymes. This customer has now returned to their regular order pattern.
Net earnings for the quarter ended April 30, 2010 were $137,927 or $0.01 per share, compared to net earnings of $242,582, or $0.01 per share, for the same period year ago, representing a decrease of 43%. This decrease is mainly attributable to the decline in sales for the quarter, rather than increasing costs.
Excluding foreign exchange, expenses during the quarter decreased by 4% versus vs. year-ago and also by 19% vs. the previous quarter. Foreign exchange gains of $353,029 were recorded in the quarter vs. a loss of $117,725 in the same period year ago.
Cash, cash equivalents, and marketable securities increased 12% during the quarter to $2,973,894 and are up 40% vs. the same period year ago.
The Company's working capital was up 47% to $3,482,086 as at the end of the third quarter ended April 30, 2010 as compared to $2,390,884 as at the end of the quarter ending April 30, 2009.
"As anticipated, the Company saw a sales decline due to a declining US dollar (which will effect us in the next quarter as well), said Paul Baehr, IBEX President & CEO, however we are encouraged by our increasing cash and working capital levels."
| Financial Summary for the quarters ending |
| |
April 30, 2010 |
April 30, 2009 |
| Revenues |
$469,502 |
$1,072,603 |
| Earning Before Interests, Tax, Depreciation & Amortization |
$156,700 |
$265,103 |
| Depreciation & Amortization |
$25,935 |
$26,470 |
| Net Earnings |
$137,927 |
$242,582 |
| Net Earnings per Share |
$0.01 |
$0.01 |
| Cash, Cash Equivalents & Marketable Securities |
$2,973,894 |
$2,118,086 |
| Net Working Capital |
$3,482,086 |
$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.
Looking forward, we are investing in production capacity to meet increasing demand for enzyme-based products, and we are also adding modestly to our assay development team to accelerate the development of a number of new assays.
On a quarter to quarter basis the Company expects that it will see large fluctuation in sales as a result in the volatility of the Canadian dollar, however, it expects that on average, cash flow will increase steadily due to strong fundamentals and the Company's hedging strategy which is more fully explained in the MD&A.
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.
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| CONSOLIDATED BALANCE SHEETS |
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| |
April 30 |
|
July 31, |
|
| UNAUDITED |
2010 |
|
2009 |
|
| |
$ |
|
$ |
|
| ASSETS |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
2,973,894 |
|
2,260,344 |
|
| Accounts receivable |
553,645 |
|
996,830 |
|
| Inventories |
327,327 |
|
321,922 |
|
| Prepaid expenses |
102,728 |
|
63,258 |
|
| Sub-total current assets |
3,957,594 |
|
3,642,354 |
|
| Long term deposit |
8,650 |
|
8,650 |
|
| Property and equipment |
634,556 |
|
530,544 |
|
| Total assets |
4,600,800 |
|
4,181,548 |
|
| |
|
|
|
|
| LIABILITIES |
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable and accrued liabilities |
475,508 |
|
761,208 |
|
| Total liabilities |
475,508 |
|
761,208 |
|
| |
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
| Capital stock |
52,660,078 |
|
52,660,078 |
|
| Contributed surplus |
471,708 |
|
401,553 |
|
| Deficit |
(49,006,494 |
) |
(49,641,291 |
) |
| Total shareholders' equity |
4,125,292 |
|
3,420,340 |
|
| Total liabilities and shareholders' equity |
4,600,800 |
|
4,181,548 |
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| |
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|
|
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| |
|
|
|
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| CONSOLIDATED STATEMENTS OF DEFICIT |
April 30, |
|
April 30, |
|
| |
2010 |
|
2009 |
|
| |
$ |
|
$ |
|
| |
|
|
|
|
| Balance - Beginning of period |
(49 641 291 |
) |
(50,985,029 |
) |
| |
|
|
|
|
| Net earnings for the period |
634,797 |
|
869,106 |
|
| Balance - End of period |
(49,006,494 |
) |
(50,115,923 |
) |
| |
|
|
|
|
| |
|
|
|
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| |
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| CONSOLIDATED STATEMENTS OF EARNING AND COMPREHENSIVE INCOME |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| UNAUDITED |
|
|
|
|
|
|
|
|
| |
Three months ended |
|
Nine months ended |
|
| |
April 30 |
|
April 30 |
|
| |
2010 |
|
2009 |
|
2010 |
|
2009 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
|
| Revenue |
469,502 |
|
1,072,603 |
|
1,987,196 |
|
2,680,591 |
|
| |
|
|
|
|
|
|
|
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| Operating expenses |
|
|
|
|
|
|
|
|
| |
Selling, general and administrative expenses |
|
|
|
|
|
|
|
|
| |
and cost of goods sold |
(641,476 |
) |
(688,335 |
) |
(1,677,015 |
) |
(1,825,255 |
) |
| |
Amortization of property and equipment |
(25,935 |
) |
(26,470 |
) |
(93,676 |
) |
(58,488 |
) |
| |
Other interest and bank charges |
(3,161 |
) |
(3,223 |
) |
(9,796 |
) |
(14,434 |
) |
| |
Foreign exchange gain (loss) |
353,029 |
|
(117,725 |
) |
437,989 |
|
50,892 |
|
| |
Gain on sale of assets |
(21,194 |
) |
1,783 |
|
(21,194 |
) |
12,172 |
|
| |
Investment income |
7,162 |
|
3,949 |
|
11,293 |
|
23,628 |
|
| Total operating expenses |
(331,575 |
) |
(830,021 |
) |
(1,352,399 |
) |
(1,811,485 |
) |
| |
|
|
|
|
|
|
|
|
| Net earnings and other comprehensive income |
137,927 |
|
242,582 |
|
634,797 |
|
869,106 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Net earnings and other comprehensive income per share |
|
|
|
|
|
|
|
|
| Basic and diluted |
$ 0.01 |
|
$ 0.01 |
|
$0.03 |
|
$ 0.04 |
|
| |
|
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|
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| See accompanying notes |
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| |
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| CONSOLIDATED CASH FLOW STATEMENTS |
Three months ended |
|
Nine months ended |
|
| |
April 30 |
|
April 30 |
|
| UNAUDITED |
2010 |
|
2009 |
|
2010 |
|
2009 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
|
| |
|
|
|
|
|
|
|
|
| Cash flows provided by (used in): |
|
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
| Net profit for the period |
$137,927 |
|
$242,582 |
|
$634,797 |
|
$869,106 |
|
| Items not affecting cash - |
|
|
|
|
|
|
|
|
| |
Amortization of property and equipment |
25,935 |
|
26,470 |
|
93,676 |
|
58,488 |
|
| |
Stock-based compensation costs |
9,375 |
|
349 |
|
70,155 |
|
5,300 |
|
| |
Gain on disposal of property and equipment |
- |
|
(1,783 |
) |
- |
|
(12,172 |
) |
| |
|
|
|
|
|
|
|
|
| Cash flow relating to operating activities |
173,237 |
|
267,618 |
|
798,628 |
|
920,722 |
|
| |
|
|
|
|
|
|
|
|
| Net changes in non-cash working capital items - |
|
|
|
|
|
|
|
|
| |
Decrease (increase) in accounts receivable |
(37,327 |
) |
(6,637 |
) |
443,184 |
|
(454,687 |
) |
| |
Increase in inventories |
37,046 |
|
93,307 |
|
(5,405 |
) |
57,353 |
|
| |
Decrease (increase) in prepaid expenses |
(92,826 |
) |
(30,460 |
) |
(39,470 |
) |
(5,979 |
) |
| |
(Decrease) increase in accounts payable and accrued liabilities |
104,662 |
|
41,888 |
|
(285,700 |
) |
224,693 |
|
| Net changes in non-cash working capital balances relating to operations |
11,555 |
|
98,098 |
|
112,609 |
|
(178,620 |
) |
| Cash flow relating to operating activities |
184,792 |
|
365,716 |
|
911,237 |
|
742,102 |
|
| |
|
|
|
|
|
|
|
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| Investing activities |
|
|
|
|
|
|
|
|
| Additions to marketable securities |
- |
|
- |
|
- |
|
(209,207 |
) |
| Proceeds on disposal of marketable securities |
- |
|
- |
|
- |
|
1,404,375 |
|
| Additions to property and equipment |
(115,788 |
) |
(98,349 |
) |
(197,688 |
) |
(203,452 |
) |
| Proceeds on disposal of property and equipment |
- |
|
1,783 |
|
- |
|
12,172 |
|
| Cash flow relating to financing activities |
(115,788 |
) |
(96,566 |
) |
(197,688 |
) |
1,003,888 |
|
| |
|
|
|
|
|
|
|
|
| Increase in cash and cash equivalents during the quater |
69,004 |
|
269,150 |
|
713,549 |
|
1,745,990 |
|
| Cash and cash equivalents - Beginning of period |
2,904,890 |
|
1,848,936 |
|
2,260,345 |
|
372,096 |
|
| Cash and cash equivalents - End of period |
2,973,894 |
|
2,118,086 |
|
2,973,894 |
|
2,118,086 |
|