Ergoresearch Ltd

Ergoresearch Ltd

October 28, 2011 13:55 ET

Ergoresearch Ltd Reports Growing Sales of 9.0% for the Fiscal Year Ended June 30, 2011. Earnings Before Tax for the Period Amounted to $596 395

- Revenues for the period increased by 9.0% to $7 229 635, compared to $6,633,049 in 2010.

- Income before tax and non-controlling interest decreased to $596,395, a decrease of 19.2%, compared to $738,353 for the same period last year. The main differences with last year can be explained by non recurring expenses related to moving and grouping the head offices of all entities of the Company's group. (opening May 2011)

- Cash flow generated from operating activities decreased by 5.6% to $904 117, compared to $957,764$ for the same period last year.

MONTREAL, QUEBEC--(Marketwire - Oct. 28, 2011) - Ergoresearch ltd (TSX VENTURE:ERG )

All amounts in Canadian dollars unless otherwise stated.

Ergoresearch ltd ("Ergoresearch" or the "Corporation") announced today its results for the fourth quarter and the 2011 fiscal year ended June 30, 2011.

In previous mandates under the current management team, revenues of the Company have greatly increased and profits have entirely offset past accumulated deficits. This past June, for the first time in its history, Ergoresearch (the «Company») qualified as one of Canada's and Quebec's strongest growth corporations on a chart published each year by the «L'ACTUALITÉ» and « PROFIT » magazines. In October of this year, the Company also qualified for the «Fast 500» chart published by Deloitte.

Encouraged by such results and in an effort to pursue this sustained growth in coming years, the Company provided itself with infrastructures commensurate with its aspirations. In May, the Group inaugurated its «ERGO» Complex. Several of the Company's business units are gathered under this complex:

  • The production as well as its Research & Development units ;
  • A satellite office of Clinique du Pied Équilibre ;
  • Orthoconcept's manufacturing unit;
  • Management of both the Company's Group and Orthoconcept (2008) inc.;

These new infrastructures are part of the foundation on which future growth of the Company is built. It allowed the official launch of the first « living lab » concept in osteoarthritis of the knee in Canada. This living lab strives to become a unique multidisciplinary approach that will offer patients the ability to consult all of the medical and paramedical professionals involved in the treatment of osteoarthritis of the knee. Hence, doctors, orthopedists, kinestiologists, physiotherapists, orthesists and nutritionists, among others, will take charge of the patient and work together to insure that proper diagnosis, services, products and treatments are provided under the same roof to significantly improve the patient's quality of life. It also provides a unique platform where innovations and prototypes are tested and validated. All positive contributions stemming from the living lab are immediately circulated to, or commercialized in, the Company's network.

This is certainly a unique approach that rests on research and innovation to remain ahead in the orthopeadic industry. The Company advantageously develops its technologies in an intense environment where the benefits to the patients are the focus. To insure the constant evolution of the proposed solutions, an important R&D program sustains the «Living Lab» initiative. This program calls upon universities, private corporations and institutional partners. A scientific committee formed by medical specialists supervises all clinical protocols.

Alongside these projects, the Company continued its growth. Hence, revenues for the period rose by 9.0 % to $7 229 635, compared to $6 633 049 for the same period in 2010. Profits before taxes and minority shares were $596 395 this year, compared to $738 353 for the same period in 2010 and funds generated by operating activities were at $904 117 compared to $957 764 for the same period in 2010. The main differences with last year can be explained by non recurring expenses related to moving and grouping the head offices of all entities of the Company's group as well as by an increase in research and development investments.

Selected annual information (restated)
Net sales$7,229,635$6,633,049$5,308,708$2,393,350$2,074,900
Net earnings$389,113$454,884$737,971$423,247$210,911
Net earnings basic and diluted per share$0.007$0.008$0.012$0.007$0.003
Total assets$5,326,685$4,989,594$4,495,145$2,414,139$1,782,895
Total debts$266,817$543,483$898,504$164,389$2,157

* Earnings before interests, taxes, depreciation and amortization (EBITDA) is a performance indicator that is not determined in accordance with Canadian generally accepted accounting principles and is not intended as an alternative measure of net earnings. Because EBITDA may not be calculated identically by all companies, the Corporation's result may not be directly comparable to similarly titled measures of other companies.

** In 2010, the company used all its deferred losses. Tax expenses were registered as followed: 2009: $ (304 435) 2010 : $ 283 469 2011 : $ 185 652.

"Our financial position, our strong business model and current projects make management and employees of the Company and its affiliates very enthusiastic. Our entire workforce is focused on delivering the business plan and creating substantial gain for shareholders in the upcoming quarters" declared Mr Sylvain Boucher, President and CEO of Ergoresearch Ltd.

Forward-looking statements

Certain statements in this Press Release contain forward-looking statements and information that may entail certain risks related to uncertainties. Such statements are based on management's expectations and no assurance can be given that potential future results or circumstances described in the forward looking statements will be achieved or will occur. Such risks factors include, but are not limited to, those related to the Corporation's ability to finance its activities, competition, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, fluctuations in cash flow, expectations regarding market demand for particular products and the dependence on new product development.

The reader should not give great importance to forward-looking statements as (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

About Ergoresearch

Over the past 5 years, Ergoresearch has built the biggest network of orthotic clinics in Québec with over 60 business centres and associates. With a team of 74 individuals, it conceives and develops software for clinical analysis and manufacturing as well as medical equipment destined for the orthopaedic industry. Today, the evolution of its proprietary clinical and production software and related medical equipment enables Ergoresearch to participate in the consolidation of the orthopaedic market and allows noticeable competitive advantages. Involved in eight research projects with institutions such as «Université Laval» in Québec and the «École de technologie supérieure (ETS)» at the «Université du Québec» in Montreal, Ergoresearch was the first to develop and commercialize its proprietary Expert-Fit clinical and manufacturing software that, paired with a high precision pressure mapping system designed to measure and analyze pressure distribution, provides a unique 3D digital image of the foot. The parent company, Ergoresearch Ltd., is listed on the Toronto Stock Exchange- TSX Venture Exchange under the ticker symbol ERG.


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