IBEX Technologies Inc.
TSX VENTURE : IBT

IBEX Technologies Inc.

October 29, 2014 08:00 ET

IBEX Reports Results for the Year Ended July 31, 2014

MONTREAL, QUEBEC--(Marketwired - Oct. 29, 2014) - IBEX Technologies Inc. ("IBEX" or the "Company") (TSX VENTURE:IBT) today reported its financial results for the year ended July 31, 2014.

"Fiscal 2014 has been a challenging year for IBEX", said Paul Baehr, IBEX's President and CEO, "due principally to a purchasing hiatus from one of our major customers which led to a net loss in our IBEX Pharma subsidiary, and a continuing but smaller net loss in our Bio-Research Products subsidiary. Fiscal 2015 will also be difficult, however we expect the situation to improve in Fiscal 2016 as a result of new products which are planned for introduction in late Fiscal 2015".

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.

FINANCIAL RESULTS FOR THE YEAR

Sales for the year ended July 31, 2014 totaled $3,943,144 compared to $3,968,829 in the prior year. Sales in our IBEX Pharma subsidiary were down significantly as increased sales from other customers failed to offset the sales gap from one of our largest customers. Sales at our Bio-Research Products ("BRP") subsidiary were up, due principally to the inclusion of twelve months of revenue versus only seven in the previous fiscal year.

The Company sustained a net loss for the year ended July 31, 2014 of $480,734, as compared to net earnings of $40,416 in the prior Fiscal year, which had benefited from a $357,290 income tax recovery. Losses were incurred in both the IBEX Pharma and the BRP subsidiaries.

Expenses for the year ended July 31, 2014 were $4,423,878 compared to $4,285,703 in the previous year. Most of the increase traces to the inclusion of twelve months of BRP expenses versus only seven months in the prior fiscal year.

In the year ended July 31, 2014, net working capital increased to $2,560,077 from $2,512,907 in the year ended July 31, 2013. Cash and cash equivalents increased to $1,686,912 from $1,579,639. The recorded capital expenditures for the 2014 Fiscal year were $53,609 compared to $390,043 in the prior year.

FINANCIAL RESULTS FOR THE FOURTH QUARTER OF FISCAL 2014

Revenues for the quarter ended July 31, 2014 totaled $1,001,793, a decrease of 17% as compared to $1,203,917 in the same period of the prior year. Most of this decrease came from the BRP subsidiary and can be attributed to variations in customer order patterns.

The Company sustained a net loss of $222,637 in its fourth quarter ended July 31, 2014 compared to a net profit of $562,053 in the same period a year ago, which had the benefit of a $357,290 income tax recovery. Significant factors affecting this loss were a project-related equipment write-off, and the effect of inventory allocation.

Expenses for the period were $1,224,430 compared to $999,154 in the same period a year ago, an increase of $225,276. The principal difference in the two quarters can be traced to lower personnel costs in the current quarter ($181,621), offset by an equipment write-off ($163,430) and the absence of an inventory allocation credit, which benefitted the year-ago quarter by $309,751.

Financial Summary for the years ended
July 31,
2014
July 31,
2013
Revenues $3,943,144 $3,968,829
Earnings before interest, tax, depreciation & amortization $127,660 $41,437
Depreciation $406,723 $344,668
Net (loss) earnings ($480,734 ) $40,416
(Loss) earnings per share ($0.02 ) $0.00
Cash and cash equivalents $1,686,912 $1,579,639
Net working capital $2,560,077 $2,512,907
Outstanding shares at report date (common shares) 24,703,244 24,703,244

LOOKING FORWARD

Fiscal 2015 will be another challenging year for the Company. As previously announced, a major customer of the IBEX Pharmaceuticals subsidiary significantly cut back its purchases during F2014 and will do so over the next two years as it works off excess inventory.

While we expect sales from other IBEX customers to increase, we do not expect that they will do so to the extent that they will overcome the deficit. We also expect that sales of the BRP subsidiary will be down in Fiscal 2015 due to cutbacks in purchases from one of its major customers.

The Company has been working on a number of projects, some of which could result in significant revenue in late Fiscal 2015 and beyond. However, there can be no assurances that any of these projects will come to fruition or produce the expected revenues.

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.

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

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