IBEX TECHNOLOGIES INC.
TSX VENTURE : IBT

IBEX TECHNOLOGIES INC.

June 11, 2009 08:00 ET

IBEX Reports Third Quarter Fiscal 2009 Results

Sales reach record high of one million dollars in Q3

MONTREAL, QUEBEC--(Marketwire - June 11, 2009) – IBEX Technologies Inc. (TSX VENTURE:IBT), today reported its financial results for the third quarter ended April 30, 2009.

Solely for the convenience of the reader, selected financial results expressed in Canadian dollars on the financial statements, have been translated into U.S. dollars at the April 30, 2009 month-end rate C$1.00  =  US$ 0.8382. This translation should not be construed as an application of the recommendations relating to the accounting for foreign currency translation, but rather as supplemental information for the reader.

HIGHLIGHTS FOR THE QUARTER:

  • Record sales of over million dollars in the quarter.
  • Sales increased 51% vs. year ago and 8% vs. the previous quarter.
  • Net earnings, exclusive of foreign exchange, increased 18% vs. year ago.
  • Working capital increased 7% vs. previous quarter

"IBEX had another excellent quarter in both profits and sales" said Paul Baehr, IBEX CEO "with sales driven by real growth and a favourable foreign currency exchange rate".


FINANCIAL RESULTS FOR THE THIRD QUARTER

Sales for the quarter ended April 30, 2009 totaled $1,072,603 (US$899,056) an increase of 51% as compared to $712,997 to the same period in the prior year, and representing an increase of 8% vs. the previous quarter.

Sales of enzymes increased by 30% vs. the previous year, although down by 6% vs. the very strong previous quarter. Most of this increase traces to continued strong demand for the point of care disposables sold by IBEX customers, but gains are also seen in the use of our enzymes in manufacturing quality control.

Sales of arthritis assays increased by 125% vs. year ago, and increased 56% vs. the previous quarter.

Net earnings for the quarter ended April 30, 2009 were $242,582 (US$203,332), or $0.01 per share, compared to net earnings of $259,269, or $0.01 per share, for the same period year ago, (a decrease of 6%)  with increasing revenues offset by a $117,725 negative charge to the foreign exchange account.


Net earnings for the third quarter declined 16% versus the second quarter, however, excluding foreign exchange swings, net earnings were $360,307, up 18% over year ago, 8% versus the second quarter and up 135% when compared with first quarter.  The two first quarters benefited from a $168,617 gain in foreign exchange due to the increased strength of the US currency, while the current quarter recorded a foreign exchange loss of $117,725 due to a decline in the value of the US dollar vs. the last quarter.

Expenses during the quarter increased 22% vs. year-ago but decreased by 11% vs. the previous quarter.  This increase is mainly attributable to the increase in the level of business activity vs. year ago.

Cash, Cash Equivalents, and Marketable Securities increased 15% during the quarter to $2,118,086. The Company's working capital was $2,557,888 as at the end of the third quarter ended April 30, 2009 and up from $2,390,884 as at the end of the prior quarter ending January 31, 2009.

Financial Summary for the quarters ending

  April 30, 2009 April 30, 2008
Revenues $1,072,603 $712,997
Earning Before Interests, Tax, Depreciation & Amortization $265,103 $266,932
Depreciation & Amortization $26,470 $15,763
Net Earnings $242,582 $259,269
Profit per Share $0.01 $0.01
Cash, Cash Equivalents & Marketable Securities $2,118,086 $1,398,745
Working Capital $2,557,888 $1,629,408
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.

While the Company expects the last quarter of Fiscal 2009 to be profitable, it will not benefit from the same level of foreign exchange gains, nor will it see the same level of sales (the third quarter was an exceptionally good quarter, the fourth quarter is typically the smallest quarter).


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.

CONSOLIDATED BALANCE SHEETS            
    April 30     July 31  
UNAUDITED   2009     2008  
    $     $  
ASSETS            
Current assets            
Cash and cash equivalents   2,118,086     372,096  
Marketable securities (note 3)   -     1,195,168  
Accounts receivable   792,302     337,621  
Inventories   235,403     292,755  
Prepaid expenses   96,186     90,206  
Sub-total current assets   3,241,977     2,287,846  
Property and equipment   383,773     238,809  
Total assets   3,625,750     2,526,655  
             
LIABILITIES            
Current liabilities            
Accounts payable and accrued liabilities   680,042     455,354  
Total liabilities   680,042     455,354  
             
SHAREHOLDERS' EQUITY            
Capital stock   52,660,078     52,660,078  
Contributed surplus   401,553     396,252  
Deficit   (50,115,923 )   (50,985,029 )
Total shareholders' equity   2,945,708     2,071,301  
Total liabilities and shareholders' equity   3,625,750     2,526,655  
           
             
CONSOLIDATED STATEMENTS OF DEFICIT            
For the nine months ended April 30  (unaudited)   2009     2008  
    $     $  
             
Balance - Beginning of period   (50 985 029 )   (51,328,637 )
Transition adjustment on adoption of financial instrument        
standard  (note 2)   -     (4,711 )
Restated balance - Beginning of period   (50,985,029 )   (51,333,348 )
             
Net earning for the period   869,106     158,622  
Balance - End of period   (50,115,923 )   (51,174,727 )
             
           
           

CONSOLIDATED STATEMENTS OF EARNING AND COMPREHENSIVE INCOME                
  Three months ended   Nine months ended  
UNAUDITED April 30   April 30  
  2009   2008   2009   2008  
  $   $   $   $  
Revenue 1,072,603   712,997   2,680,591   1,816,800  
                 
Operating expenses                
  Net research and development expenditure
  (note 7)
-   39,427   -   39,427  
  Selling, general and administrative expenses                
    and cost of goods sold (688,335 ) (466,525 ) (1,825,255 ) (1,661,519 )
  Amortization of property and equipment (26,470 ) (15,763 ) (58,488 ) (49,677 )
  Other interest and bank charges (3,223 ) (3,266 ) (14,434 ) (7,703 )
  Foreign exchange gain (loss) (117,725 ) (15,749 ) 50,892   (22,646 )
  Gain on sale of assets 1,783   -   12,172   -  
  Investment income 3,949   8,124   23,628   36,857  
Total operating expenses (830,021 ) (453,752 ) (1,811,485 ) (1,665,261 )
                 
Net earning before Income tax 242,582   259,245   869,106   151,540  
                 
Current income tax -   (24 ) -   (7,082 )
Net earning and other comprehensive income 242,582   259,269   869,106   158,622  
                 
                 
Net earning and other comprehensive income per share                
Basic and diluted $0.01   $0.01   $0.04   $0.01  
                 
See accompanying notes                
CONSOLIDATED CASH FLOW STATEMENTS   Three months ended
April 30

Nine months ended
    April 30
                                            
UNAUDITED   2009   2008   2009   2008  
    $   $   $   $  
                   
Cash flows provided by (used in):                  
Operating activities                  
Net profit for the period   242,582   259,269   869,106   158,622  
Items not affecting cash -                  
  Amortization of property and equipment   26,470   15,763   58,488   49,678  
  Stock-based compensation costs   349   17,150   5,300   24,824  
  Gain on disposal of property and equipment   (1,783 ) -   (12,172 ) -  
                   
Cash flow relating to operating activities   267,618   292,182   920,722   233,124  
                   
Net changes in non-cash working capital items -                  
  Decrease (increase) in accounts receivable   (6,637 ) 26,770   (454,687 ) 155,371  
  Decrease (increase)  in inventories   93,307   (58,963 ) 57,353   (8,737 )
  Decrease (increase) in prepaid expenses   (30,460 ) (45,903 ) (5,979 ) 1,949  
  Increase (decrease) in accounts payable
 and accrued liabilities
  41,888   119,689   224,693   (429,061 )
Net changes in non-cash working capital 
 balances relating to operations
  98,098   41,593   (178,620 ) (280,478 )
Cash flow relating to operating activities   365,716   333,775   742,102   (47,354 )
                   
Investing activities                  
Additions to marketable securities   -   -   (209,207 ) 1,099,673  
Proceeds on disposal of marketable securities   -   (1,400 ) 1,404,375   (2,326 )
Additions to property and equipment   (98,349 ) -   (203,452 ) -  
Proceeds on disposal of property and equipment   1,783   -   12,172   -  
Cash flow relating to financing activities   (96,566 ) (1,400 ) 1,003,888   1,097,347  
                   
Increase in cash and cash equivalents during
the quater
  269,150   332,375   1,745,990   1,049,993  
Cash and cash equivalents - Beginning of period   1,848,936   1,066,370   372,096   348,752  
Cash and cash equivalents - End of period   2,118,086   1,398,745   2,118,086   1,398,745  

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

Contact Information

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