Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

September 09, 2011 17:27 ET

Immunotec Announces Financial Results for the Third Quarter Ended July 31, 2011 and Changes to its Board

Network's sales in Mexico up by 320% and Adjusted EBITDA of $325 thousand

VAUDREUIL-DORION, QUEBEC--(Marketwire - Sept. 9, 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 third quarter of fiscal year 2011.

"We are very pleased with our overall performance" said Robert Henry, Immunotec's Executive Chairman and CEO; "We remain confident and focus on growing our markets despite a difficult worldwide economic climate".

At yesterday`s meeting, the Board of Directors announced the resignation of Mr. Jean La Couture, Director and Chairman of the Audit Committee to be effective September 30, 2011. The Board of Directors also approved the nomination of Mr. Rod Budd for this role starting on October 1, 2011 and the nomination of Mr. Charles Orr as lead Director. Mr. Orr has been a Director of the Company since 2006.

On behalf of the Immunotec Board of Directors "We want to thank Jean for his five years of service on Immunotec's Board. Jean has been a valuable contributor to the Company. We acknowledge the work he did during the CEO transition.

"We are pleased to welcome Rod. His business experience through 25 years of partnership at Ernst & Young will be of great value to our Company." said Robert Henry, Immunotec's Executive Chairman and CEO.

On September 8, 2011 the Board of Directors approved two grants of options. One for Mr. Henry which entitles him to acquire up to 500,000 common shares of the Company and the other one to Mr. Orr which entitles him to acquire up to 25,000 common shares of the Company. Both grants will have an exercise price of $0.24 per share, representing a premium over $0.17, being the closing price of the Company's Shares on the TSX-Venture Exchange on September 7th, 2011 the trading day preceding the grant.

Highlights for Q3

  • Q3-Network sales reached $9.5M an increase of 11% compared to the previous year.

  • Total consolidated revenues, increased by 4% reaching $31.7M in 2011 vs. $30.3M in 2010.

  • Q3-Sales incentives reached a rate of 50%, compared with 47% for the same period last year, 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 early in the new fiscal year and is in direct relation with strong recruitment in the Mexican territory.

  • Q3-Selected expenses, as defined by Administrative, Marketing and selling, Quality and development costs reached $2.8M a decrease of 10% over the previous year as a result of continued modernization effort and new tools announced and deployed to the field during the quarter.

  • Net earnings and comprehensive income totalled $99 thousand for the quarter ending July 31, 2011, compared to a net loss of ($393) thousand for 2010. The total basic and fully diluted earnings per share for the same period was $0.001 in 2011 compared to a loss of ($0.006) per share for the same period in Fiscal 2010.

  • Subsequent to the quarter, the Company signed a financing letter of offer with a leading Canadian institution. The offer comprises several financing facilities design to support the Company in its international development and general working capital need and will replace the existing debt currently in its balance sheet.

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 July 31, As at October 31,
2011 2010
$ $
ASSETS
Current
Cash 1,810,470 2,936,456
Accounts receivable 385,630 782,557
Income taxes receivable 10,123 -
Inventories 3,620,908 2,605,371
Prepaid expenses 536,268 382,794
Future income taxes 96,000 103,099
6,459,399 6,810,277
Long-term
Property, plant and equipment 5,369,498 5,674,090
Intangible assets 2,142,470 2,456,651
Goodwill 833,559 833,559
Future income taxes 2,767,757 2,382,148
Other assets 484,349 484,349
18,057,032 18,641,074
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Demand loan 866,667 1,000,000
Accounts payable 1,822,008 1,593,697
Accrued liabilities 3,108,392 2,707,076
Customer deposits 343,684 274,051
Income taxes payable - 2,041
Other liability - current portion (note 3) 143,443 147,218
6,284,194 5,724,083
Other liability (note 3) 124,732 239,622
6,408,926 5,963,705
Shareholders' deficit
Share capital (note 4) 3,465,548 3,465,548
Other equity - Stock options (note 5) 1,910,884 1,907,584
Contributed surplus 11,337,796 11,337,796
Deficit (5,066,122 ) (4,033,559 )
11,648,106 12,677,369
18,057,032 18,641,074
Contingency (note 9)
The accompanying notes are an integral part of the consolidated financial statements.
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, 2009
69,994,300 3,465,548 1,770,093 11,337,796 (2,646,399 ) 13,927,038
Net
profit
- - - - 9,419 9,419
Stock-
based
compen-
sation
(note 5)
- - 106,815 - - 106,815
Balance
-July 31,
2010
69,994,300 3,465,548 1,876,908 11,337,796 (2,636,980 ) 14,043,272
Balance
- October
31, 2010
69,994,300 3,465,548 1,907,584 11,337,796 (4,033,559 ) 12,677,369
Net
loss
- - - - (1,032,563 ) (1,032,563 )
Stock-
based
compen-
sation
(note 5)
- - 3,300 - - 3,300
Balance
- July 31,
2011
69,994,300 3,465,548 1,910,884 11,337,796 (5,066,122 ) 11,648,106
The accompanying notes are an integral part of the consolidated financial statements.
Immunotec Inc.
Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income
(Loss) (Unaudited)
For the three-month period ended For the nine-month period ended
July 31, July 31,
2011 2010 2011 2010
$ $ $ $
Revenues
Network sales 9,540,766 8,550,885 27,473,893 25,893,200
Other revenue 1,115,894 1,406,377 4,218,179 4,363,615
10,656,660 9,957,262 31,692,072 30,256,815
Variable costs
Cost of goods sold (excluding amortization) 1,831,242 1,977,025 5,515,150 5,615,122
Sales incentives - Network 4,773,420 3,988,117 14,203,931 12,385,288
Other variable costs 961,154 940,940 2,869,059 2,733,874
Margin before expenses 3,090,844 3,051,180 9,103,932 9,522,531
Expenses
Administrative 1,550,710 1,661,534 4,782,412 4,386,387
Marketing and selling 959,162 1,090,737 3,527,444 2,917,788
Quality and development costs 256,144 317,191 733,009 857,395
Amortization 295,430 295,819 878,402 871,130
Restructuring charges (note 7) 206,907 156,813 1,015,289 156,813
Recovery of an impaired investment (note 8) (378,560 ) - (517,869 ) -
Stock-based compensation (note 5) 10,043 29,299 3,300 106,815
Foreign exchange (gain) loss 17,924 (14,429 ) (18,477 ) (16,271 )
2,917,760 3,536,964 10,403,510 9,280,057
Earnings (loss) from continuing operations before financing expenses and income taxes 173,084 (485,784 ) (1,299,578 ) 242,474
Financing expenses 23,948 - 91,791 -
Earnings (loss) from continuing operations before income taxes 149,136 (485,784 ) (1,391,369 ) 242,474
Income taxes (recovery)
Current 15,020 (12,062 ) 19,704 43,099
Future 35,276 (93,240 ) (378,510 ) 35,890
Earnings (loss) from continuing operations 98,840 (380,482 ) (1,032,563 ) 163,485
Loss from discontinued operations - (12,810 ) - (154,066 )
Net earnings (loss) and comprehensive income
(loss) 98,840 (393,292 ) (1,032,563 ) 9,419
Basic and diluted net earnings (loss) per share
Continuing operations 0.001 (0.006 ) (0.015 ) 0.002
Discontinued operations (0.000 ) (0.000 ) (0.000 ) (0.002 )
Total basic and diluted net earnings (loss) per share 0.001 (0.006 ) (0.015 ) 0.000
Weighted average number of common shares outstanding during the period
Basic and diluted 69,994,300 69,994,300 69,994,300 69,994,300
The accompanying notes are an integral part of the consolidated financial statements.
Immunotec Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the three-month period ended For the nine-month period ended
July 31, July 31,
2011 2010 2011 2010
$ $ $ $
Operating activities
Net earnings (loss) 98,840 (393,292 ) (1,032,563 ) 9,419
Loss from discontinued operations - (12,810 ) - (154,066 )
Earnings (loss) from continuing operations 98,840 (380,482 ) (1,032,563 ) 163,485
Add (deduct) non cash items:
Amortization of property, plant and equipment 135,898 150,044 409,398 443,767
Amortization of intangible assets 159,532 145,775 469,004 427,363
Net loss on disposal of property, plant and equipment - 474 - 474
Other receivables - 26,750 - 70,192
Gain on partial settlement of the other liability (56,950 ) - (56,950 ) -
Unrealized foreign exchange 5,741 - (22,579 ) -
Accreted interest 9,368 - 44,436 -
Future income taxes 35,276 (93,240 ) (378,510 ) 35,890
Stock-based compensation 10,043 29,299 3,300 106,815
Cash received prior to working capital variation 397,748 (121,380 ) (564,464 ) 1,247,986
Net change in non-cash working capital 382,911 198,387 (84,988 ) (510,754 )
Cash (used) received from operating activities 780,659 77,007 (649,452 ) 737,232
Investing activities
Business acquisition - (403,510 ) - (403,510 )
Additions to property, plant and equipment (25,114 ) (105,741 ) (104,806 ) (189,605 )
Additions to intangible assets (24,146 ) (40,609 ) (154,823 ) (140,595 )
Proceed from disposal of property, plant and equipment - 400 - 400
Cash used from investing activities (49,260 ) (549,460 ) (259,629 ) (733,310 )
Financing activities
Reimbursment of demand loan (50,000 ) - (133,333 ) -
Reimbursment of other liability (83,572 ) - (83,572 ) -
Cash used from financing activities (133,572 ) - (216,905 ) -
Net (decrease) increase in cash from continuing operations 597,827 (472,453 ) (1,125,986 ) 3,922
Net decrease in cash from discontinued operations
Operating activities - (12,810 ) - (154,066 )
Net (decrease) increase in cash during the period 597,827 (485,263 ) (1,125,986 ) (150,144 )
Cash at the beginning of the period 1,212,643 2,597,940 2,936,456 2,262,821
Cash at the end of the period 1,810,470 2,112,677 1,810,470 2,112,677
Supplemental information
Income tax paid (recovered) during the period (53,011 ) (45,097 ) (47,634 ) (33,683 )
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