Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

March 29, 2010 08:00 ET

Immunotec Announces Positive First-Quarter Results and the Return to Profitability

VAUDREUIL-DORION, QUEBEC--(Marketwire - March 29, 2010) -

  • Active Distributors Up 8% to 27,000

  • Earnings from continued operations to $343 thousand

Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today reported positive results with First-quarter 2010, earnings from continuing operation profit of $343 thousand compared with a loss of $201 thousand in the prior-year quarter.

For the quarter ended January 31, 2010, EBITDA before losses from discontinued operations totalled $737 thousand or 7% of total income, compared to $4 thousand or 0% of total income for Fiscal 2009.

"A return to profitability after a challenging 2009, is a demonstration that our reorganized business model is starting to create shareholder value", said James A. Northrop, President and CEO of Immunotec Inc. "Our message on Health Improvement and Income Opportunity seems well received by our distributors to establish us as a first class multi- level marketing company".

Fiscal 2010 Financial Results Highlights:

  • Network Sales reached $8.9M compared to $9.2M for the same period in 2009, a decline of $0.3M or a 4% decrease attributed to foreign exchange rates stemming from a stronger Canadian dollar in 2010. The relative contribution in sales last year resulting from this variation and for the same period is approximately $0.6 M. The average Canadian dollar value used during the period was 1.0571 during fiscal 2010 compared to 1.2264 for the same period of 2009.

  • Other Revenues that include international distribution revenues, freight and shipping, charge backs and educational material reached $1.6M in 2010 an increase of 11% compared to $1.5M in 2009.

  • Margin before expenses, as a percentage of net sales improved to 32% compared to 29% for year 2009. This improvement, despite the lower revenues, is mostly attributed to certain amendments made on the sales incentive program launch in 2009. Network Sales incentives is the largest segment of variable expenses of the Company. As a percentage of Network sales, the incentive program represented an average of 48% of Network revenues, an improvement from the 53% level in 2009.

  • Administration, Marketing, Sales, Quality Control and Research & Development expenses were $2.6M representing 25% of total revenues and improvement versus the 29% ratio for the previous year.

  • Net earnings (loss) and comprehensive income (loss), including losses from discontinued operations, achieved $209 thousand or $0.003 per share, compared to a loss of $201 thousand or ($0.003) per share for 2009.

About Immunotec Inc.

Immunotec is a Network Marketing Company involved in the direct selling of scientifically validated natural health products and dietary supplements. The Company offers a lucrative business opportunity to its independent distributors. This business model provides Immunotec's network of people with an opportunity to earn a steady and recurring income, directly based on their level of involvement and performance. Individual distributors build their business by conveying product information and selling product to customers and by building teams of distributors to expand geographic penetration and market coverage to larger populations of customers.

Headquartered with manufacturing facilities near Montreal, Canada, the Company also subcontracts certain distribution logistics and capacity to support its activities in the United States, Europe and The Caribbean.

The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

Immunotec Inc.
Interim Consolidated Balance Sheet
(Unaudited)
   
  As at January   As at October  
  31, 2010   31, 2009  
  $   $  
ASSETS        
Current        
  Cash 2,344,831   2,262,821  
  Accounts receivable 584,798   201,841  
  Income taxes receivable 35,742   70,306  
  Inventories 3,450,779   3,941,847  
  Prepaid expenses 540,867   436,251  
  Future income taxes 82,115   90,133  
  7,039,132   7,003,199  
Long-term        
  Property, plant and equipment 5,954,856   6,068,313  
  Intangible assets 2,375,673   2,505,937  
  Goodwill 499,541   499,541  
  Future income taxes 1,894,528   1,969,403  
  Other assets (note 3) 656,397   699,839  
  18,420,127   18,746,232  
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities        
  Accounts payable 2,176,760   2,629,247  
  Accrued liabilities 1,666,131   1,881,390  
  Customer deposits 391,294   308,557  
  4,234,185   4,819,194  
Shareholders' Equity (Deficit)        
  Share capital (note 4) 3,465,548   3,465,548  
  Other equity - Stock options (note 5) 1,819,696   1,770,093  
  Contributed surplus 11,337,796   11,337,796  
  Deficit (2,437,098 ) (2,646,399 )
  14,185,942   13,927,038  
  18,420,127   18,746,232  
             
             
             
Immunotec Inc.
Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
                       
  Number of common shares   Share capital   Other equity -Stock options   Contributed surplus   (Deficit) Retained earnings     Total  
      $   $   $   $     $  
   
Balance - October 31, 2008 69,994,300   3,465,548   1,414,885   11,332,143   1,898,637     18,111,213  
Net loss -   -   -   -   (201,205 )   (201,205 )
Stock-based compensation (note 5) -   -   122,316   -   -     122,316  
Balance - January 31, 2009 69,994,300   3,465,548   1,537,201   11,332,143   1,697,432     18,032,324  
   
   
Balance - October 31, 2009 69,994,300   3,465,548   1,770,093   11,337,796   (2,646,399 )   13,927,038  
Net profit -   -   -   -   209,301     209,301  
Stock-based compensation (note 5) -   -   49,603   -   -     49,603  
Balance - January 31, 2010 69,994,300   3,465,548   1,819,696   11,337,796   (2,437,098 )   14,185,942  
   
   
   
Immunotec Inc.  
Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income  
(Unaudited)  
   
Quarter ended January 31 2010   2009  
  $   $  
REVENUES        
  Network sales 8,865,644   9,227,007  
  Other revenue 1,615,426   1,464,502  
  10,481,070   10,691,509  
VARIABLE COSTS        
  Cost of goods sold (excluding amortization) 2,022,251   1,729,462  
  Sales incentives - Network 4,248,329   4,868,649  
  Other variable costs 900,572   956,889  
  Margin before expenses 3,309,918   3,136,509  
Expenses        
  Administrative 1,459,915   1,593,937  
  Marketing and Selling 860,602   1,292,308  
  Quality and Development costs 251,903   246,579  
  Amortization 287,029   263,828  
  Financial charges (revenues) -   (21,513 )
  2,859,449   3,375,139  
Earnings (Loss) from continuing operations before income taxes 450,469   (238,630 )
Income taxes (Recovery)        
  Current 24,986   59,452  
  Future 82,893   (96,877 )
Earnings (Loss) from continued operations 342,590   (201,205 )
Loss from discontinued operations (133,289 ) -  
Net earnings (loss) and comprehensive income (loss) 209,301   (201,205 )
   
Basic and diluted net earnings (loss) per share        
  Continuing operations 0.005   (0.003 )
  Discontinued operations (0.002 ) -  
Total basic and diluted net earnings (loss) per share 0.003   (0.003 )
   
Weighted average number of common shares outstanding during the period        
Basic and diluted 69,994,300   69,994,300  
   
   
Immunotec Inc.  
Consolidated Statement of Cash Flows  
(Unaudited)  
   
  2010   2009  
Quarter ended January 31 $   $  
Operating activities        
Net earnings (loss) 209,301   (201,205 )
Loss from discontinued operations (133,289 ) -  
Earnings (Loss) from continuing operations 342,590   (201,205 )
Add (deduct) non cash items:        
    Amortization of property, plant and equipment 141,146   132,408  
    Amortization of intangible assets 145,883   131,420  
    Other receivable 43,442   -  
    Future income taxes 82,893   (96,877 )
    Stock-based compensation 49,603   122,316  
Cash received prior to working capital variation 805,557   88,062  
         
Net change in non-cash working capital (546,950 ) (356,999 )
Cash (used) received in operating activities 258,607   (268,937 )
Investing activities        
  Additions to property, plant and equipment (27,689 ) (35,305 )
  Additions to intangible assets (15,619 ) (127,174 )
  Research and development tax credits -   (13,272 )
Cash used in investing activities (43,308 ) (175,751 )
Net increase (decrease) in cash from continuing activities 215,299   (444,688 )
Net (decrease) in cash from discontinued activities        
    Operating activities (133,289 ) -  
Net increase (decrease) in cash during the quarter 82,010   (444,688 )
Cash at the beginning of the quarter 2,262,821   6,138,454  
Cash at the end of the quarter 2,344,831   5,693,766  
   
Supplemental information        
Income taxes (recovered) paid during the quarter (7,983 ) 33,939  

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

Contact Information

  • Immunotec Inc.
    Patrick Montpetit
    Chief Financial Officer
    450-510-4527