Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

June 17, 2011 16:40 ET

Immunotec Announces Financial Results for the Second Quarter Ended April 30, 2011

Net earnings totalled $192 thousands

VAUDREUIL-DORION, QUEBEC--(Marketwire - June 17, 2011) - Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today reported financial results for the second quarter of fiscal year 2011.

"We are pleased to report positive earnings" said Bob Henry, Immunotec's Executive Chairman and CEO; "The annual event held in February was a success confirming that our new approach is starting to produce results."

Highlights for Q2

  • Q2-Network sales reached $8.9M an increase of 4.6% compared to the previous year. Total consolidated revenues increased by 8.6% reaching $10.6M in 2011 vs. $9.8M in 2010.

  • Q2-Sales incentives reached a rate of 53%, compared to 49% in the previous period, as a result of strong new recruitment and moving up bonuses paid as part of the compensation plan. This increase in commission payout, compared to the previous year was a trend first noticed during Q1 and in direct relation with strong recruitment in the Mexican territory.

  • Q2-Selected expenses, as defined by Administrative, Marketing and selling, Quality and development costs reached $2.8M an increase of 11% over the previous year as a result of continued modernization effort and new tools announced and deployed to the field during the quarter.

  • Subsequent to the quarter, the Company entered into a five (5) year Supply and Manufacturing Agreement with a strategic supplier. This new contract supersedes the expiration of a previous agreement signed in 2005.

  • Net earnings and comprehensive income totalled $192 thousand for the quarter ending April 30, 2011, compared to earnings of $193 thousand for 2010. The total basic and fully diluted earnings per share for the same period was $0.003 in 2011 compared to$0.003 for the same period in Fiscal 2010.

About Immunotec Inc.

Immunotec is a world class business opportunity supported by unique scientifically proven products that improve wellness. Headquartered with manufacturing facilities near Montreal, Canada, the Company also has distribution capacities to support its commercial activities in Canada and internationally to the United States, Europe, Mexico 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.

Immunotec Inc.
Interim Consolidated Balance Sheet
(Unaudited)
As at April 30,As at October 31,
20112010
$$
ASSETS
Current
Cash1,212,6432,936,456
Accounts receivable743,805782,557
Income taxes receivable30,767-
Inventories3,582,4652,605,371
Prepaid expenses558,819382,794
Future income taxes85,094103,099
6,213,5936,810,277
Long-term
Property, plant and equipment5,480,2825,674,090
Intangible assets2,277,8562,456,651
Goodwill833,559833,559
Future income taxes2,813,9392,382,148
Other assets484,349484,349
18,103,57818,641,074
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Demand loan916,6671,000,000
Accounts payable1,900,0301,593,697
Accrued liabilities3,126,6752,707,076
Customer deposits227,395274,051
Income taxes payable-2,041
Other liability - current portion137,160147,218
6,307,9275,724,083
Other liability256,428239,622
6,564,3555,963,705
Shareholders' deficit
Share capital3,465,5483,465,548
Other equity - Stock options1,900,8411,907,584
Contributed surplus11,337,79611,337,796
Deficit(5,164,962)(4,033,559)
11,539,22312,677,369
18,103,57818,641,074
Immunotec Inc.
Interim Consolidated Statements of Changes in Shareholders' Deficit
(Unaudited)
Number
of

common
shares

Share
capital
$
Other
equity

- Stock
options
$

Contri-
buted

surplus
$


Deficit
$


Total
$
Balance - October 31, 200969,994,3003,465,5481,770,09311,337,796(2,646,399)13,927,038
Net profit----402,711402,711
Stock-based compen-
sation
--77,516--77,516
Balance -April 30, 201069,994,3003,465,5481,847,60911,337,796(2,243,688)14,407,265
Balance - October 31, 201069,994,3003,465,5481,907,58411,337,796(4,033,559)12,677,369
Net loss----(1,131,403)(1,131,403)
Stock-based compen-
sation
--(6,743)--(6,743)
Balance - April 30, 201169,994,3003,465,5481,900,84111,337,796(5,164,962)11,539,223
Immunotec Inc.
Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income
(Loss) (Unaudited)
For the three-month period endedFor the six-month period ended
April 30,April 30,
2011201020112010
$$$$
Revenues
Network sales8,869,1088,476,67117,933,12717,342,315
Other revenue1,790,6571,341,8123,102,2852,957,238
10,659,7659,818,48321,035,41220,299,553
Variable costs
Cost of goods sold (excluding amortization)1,688,2081,615,8463,683,9083,638,097
Sales incentives - Network4,660,7104,148,8429,430,5118,397,171
Other variable costs966,101892,3621,907,9051,792,934
Margin before expenses3,344,7463,161,4336,013,0886,471,351
Expenses
Administrative1,492,2731,306,3773,231,7022,724,853
Marketing and selling1,126,524966,4492,568,2821,827,051
Quality and development costs222,639288,301476,865540,204
Amortization297,180288,282582,972575,311
Restructuring charges143,845-808,382-
Recovery of an impaired investment(139,309)-(139,309)-
Stock-based compensation(27,405)27,913(6,743)77,516
Foreign exchange loss (gain)(40,529)6,322(36,401)(1,842)
3,075,2182,883,6447,485,7505,743,093
Earnings (loss) from continuing operations before financing expenses and income taxes269,528277,789(1,472,662)728,258
Financing expenses48,046-67,843-
Earnings (loss) from continuing operations before income taxes221,482277,789(1,540,505)728,258
Income taxes (recovery)
Current(19)30,1754,68455,161
Future29,50146,237(413,786)129,130
Earnings (loss) from continuing operations192,000201,377(1,131,403)543,967
Loss from discontinued operations-(7,967)-(141,256)
Net earnings (loss) and comprehensive income (loss)192,000193,410(1,131,403)402,711
Basic and diluted net earnings (loss) per share
Continuing operations0.0030.003(0.016)0.008
Discontinued operations(0.000)(0.000)(0.000)(0.002)
Total basic and diluted net earnings (loss) per share0.0030.003(0.016)0.006
Weighted average number of common shares outstanding during the period
Basic and diluted69,994,30069,994,30069,994,30069,994,300
Immunotec Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the three-month period endedFor the six-month period ended
April 30,April 30,
2011201020112010
$$$$
Operating activities
Net earnings (loss)192,000193,410(1,131,403)402,711
Loss from discontinued operations-(7,967)-(141,256)
Earnings (loss) from continuing operations192,000201,377(1,131,403)543,967
Add (deduct) non cash items:
Amortization of property, plant and equipment134,765152,577273,500293,723
Amortization of intangible assets162,415135,705309,472281,588
Other receivables---43,442
Unrealized foreign exchange(28,320)-(28,320)-
Accreted interest35,068-35,068-
Future income taxes29,50146,237(413,786)129,130
Stock-based compensation(27,405)27,913(6,743)77,516
Cash received prior to working capital variation498,024563,809(962,212)1,369,366
Net change in non-cash working capital(1,061,693)(162,191)(467,899)(709,141)
Cash (used) received from operating activities(563,669)401,618(1,430,111)660,225
Investing activities
Additions to property, plant and equipment(35,334)(56,175)(79,692)(83,864)
Additions to intangible assets(58,859)(84,367)(130,677)(99,986)
Cash used from investing activities(94,193)(140,542)(210,369)(183,850)
Financing activities
Reimbursment of demand loan(33,333)-(83,333)-
Cash used from financing activities(33,333)-(83,333)-
Net (decrease) increase in cash from continuing operations(691,195)261,076(1,723,813)476,375
Net decrease in cash from discontinued operations
Operating activities-(7,967)-(141,256)
Net (decrease) increase in cash during the period(691,195)253,109(1,723,813)335,119
Cash at the beginning of the period1,903,8382,344,8312,936,4562,262,821
Cash at the end of the period1,212,6432,597,9401,212,6432,597,940
Supplemental information
Income tax paid (recovered) during the period-19,3975,37711,414

The accompanying notes are an integral part of the consolidated financial statements.

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

Contact Information

  • Patrick Montpetit
    VP and Chief Financial Officer
    (450) 510-4527