IBEX Technologies Inc.
TSX VENTURE : IBT

IBEX Technologies Inc.

June 18, 2015 08:00 ET

IBEX Reports Results for the Third Quarter and the Nine Months Ended April 30, 2015

MONTREAL, QUEBEC--(Marketwired - June 18, 2015) - IBEX Technologies Inc. ("IBEX" or the "Company") (TSX VENTURE:IBT) today reported its financial results for the nine months ended April 30, 2015.

"While sales are down year over year, we are pleased to note that we have had two quarters of progressively increasing sales," said Paul Baehr, IBEX President and CEO. "We are also pleased to report that, subsequent to the end of the quarter, we reached a positive conclusion to our outstanding legal actions against third parties which resulted in aggregate settlements of approximately $875,000."

Note: All figures are in Canadian dollars unless otherwise stated. The Company's audited consolidated financial statements for the year ended July 31, 2014 and the accompanying notes and the related management's discussion and analysis can be found on the Company's website at www.ibex.ca or under the Company's profile on SEDAR at www.sedar.com.

THIRD QUARTER FISCAL 2015 FINANCIAL RESULTS

Sales for the quarter ended April 30, 2015 totaled $892,969 compared to $1,140,228 in the same period of the prior year. Sales were down by $195,317 in our Bio-Research Products ("BRP") subsidiary and by $51,942 in our IBEX Pharma subsidiary. As has been explained in prior releases, sales are suffering from what we believe to be temporary cutbacks in purchases from major customers.

The Company sustained a net loss of $288,538, as compared to net earnings of $148,844 in the year ago period. This loss can be primarily traced to the $247,259 reduction in sales. Losses were incurred in both the IBEX Pharma and the BRP subsidiaries.

FINANCIAL RESULTS FOR THE NINE MONTHS ENDED APRIL 30, 2015

Sales for the nine months ended April 30, 2015 totaled $2,241,768 compared to $2,941,351 the same period of the prior year. Sales in the IBEX Pharma subsidiary were down by $423,904 and by $275,679 in the BRP subsidiary, due to the reasons mentioned above.

The company recorded a net loss of $720,874 compared to a net loss of $258,097 for the same period a year ago. This net loss can be primarily traced to the reduction in sales revenue.

Financial Summary for the nine months ended
April 30,
2015
April 30,
2014
Revenues $2,241,768 $2,941,351
(Loss) earnings before interest, tax, depreciation & amortization ($426,123) $68,367
Depreciation $265,614 $297,846
Net loss ($720,874) ($258,097)
Loss per share ($0.03) ($0.01)

Cash and cash equivalents decreased by $521,565 during the nine months ended April 30, 2015 as compared to the year ended July 31, 2014. Net working capital decreased by $457,310 during the nine months ended April 30, 2015 as compared to the year ended July 31, 2014.

Balance Sheet Summary as at
April 30,
2015
July 31,
2014
Cash and cash equivalents $1,165,347 $1,686,912
Net working capital $2,102,767 $2,560,077
Outstanding shares at report date (common shares) 24,703,244 24,703,244

LOOKING FORWARD

We expect that sales of the BRP subsidiary will continue to be under pressure due to cutbacks in purchases from one of its major customers, however we expect that sales in the IBEX Pharma subsidiary to pick up as one of its major customers starts to roll out a major new product using one of IBEX's enzymes.

Management believes that the Company has sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.

SUBSEQUENT EVENTS

Subsequent to the end of the Quarter, the Company settled its outstanding legal actions against third parties which resulted in aggregate settlements of approximately $875,000. The proceeds from settlements will be recorded as they are received. As at June 17, the Company has received $665,000 which will be recorded in the fourth quarter.

ABOUT IBEX

IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montreal, QC) and the recently acquired Bio-Research Products, Inc. (North Liberty, IA). IBEX Pharmaceuticals also manufactures and markets a series of arthritis assays which are widely used in osteoarthritis research.

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 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, 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 Information

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