Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

June 15, 2012 16:05 ET

Immunotec Announces Second Quarter 2012 Financial Results

VAUDREUIL-DORION, QUEBEC--(Marketwire - June 15, 2012) - Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today released its 2012 second quarter results for the period ended April 30, 2012.

Second Quarter 2012 Highlights:

(All amounts are in CAD dollars.)

  • Revenue growth of 7.1% in the quarter over the previous year to reach $11.4 million and 6.8% year to date.

  • Revenues in Mexico, now the largest segment representing 37% of total revenues were up 140% over previous year to reach $4.1 million.

  • Adjusted EBITDA of $457 thousand or 4% of revenues in Q2 and $672 thousand or 3% of total revenues, year to date. This represents an improvement over negative adjusted EBITDA of ($32) thousand as compared to prior year.

  • The acquisition of our subsidiary company in Mexico was completed during the quarter end and we opened a new Immunotec corporate office in Mexico City to support our growth plans.

"We are pleased with the result but we are determined to reenergize the Canadian and US segments", said Bob Henry, Immunotec's Chairman and CEO.

Condensed financial results for the second Quarter ended April 30, 2012 are as follows:

  • During the second quarter, Network sales reached $10.3M in 2012 compared to $8.9M for the same quarter in 2011, an increase of 15.9% or $1.4M. Other revenues which include revenues of products sold to licensees, freight and shipping, charge backs and educational material purchased by our network, amounted to $1.1M in Q2 of 2012, a decrease in $0.7M compared to $1.8M for the same period in 2011.

  • Margins before expenses, as a percentage of net sales, decrease, in the second quarter ending April 30, 2012 to 26.2% from 31.2% for the same quarter in 2011. This decrease is primarily attributed to increase is certain costs related to a growth in Mexico and the decrease of Export sales to licenses which represent a higher margin contribution.

  • Selected expenses in the second quarter of 2012 were $2.8M and were the same as the same period a year earlier. They now represent 24.6% of sales compared to 26.7% a year earlier.
  • The adjusted EBITDA, a Non GAAP financial measure, was $457 thousand which represent a decrease of $269 thousand over adjusted EBITDA for the same period ended April 30, 2011.

  • Net loss for the quarter ended April 30, 2012 totalled $109 thousand, compared to a net loss of $7 thousand for the same period a year earlier. For the six-month ended April 30, 2012, net loss was $103 thousand compared to a net loss of $1.3M for the same period in 2011.

  • The total basic and fully diluted earnings per share for the three-month period ended April 30, 2012 was $0.00 compared with fully a diluted loss per share of $0.02 for the same period in 2011.

  • During the Quarter on April 30 The Company also announced today the implementation of a Normal Course Issuer Bid (the "Bid") to purchase for
    cancellation, from time to time, as it considers advisable, up to 1,000,000 of its issued and outstanding Common Shares. At the end of June 15th, 2012, no shares had been purchase from this plan.
  • Subsequent to the quarter, on June 14th 2012, The Company granted 25,000 stock options to a recently named Director of the Company and 25,000 stock options to an executive of the Company. Both grants of options are exercisable over 5 years at an exercise price of $0.35.

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.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS: Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

Interim Consolidated Statements of Financial Position
(Unaudited)
(Stated in Canadian dollars)
April 30, October 31,
2012 2011
$ $
ASSETS
Current assets
Cash 2,626,137 2,561,969
Trade and other receivables 1,091,669 659,004
Inventories 2,932,173 3,324,740
Prepaid expenses 475,227 393,119
7,125,206 6,938,832
Non-current assets
Property, plant and equipment 6,060,682 5,931,411
Intangible assets 1,803,682 2,000,217
Goodwill 833,559 833,559
Deferred income tax assets 2,749,283 2,725,367
Non-refundable research and development tax credits 337,971 337,971
11,785,177 11,828,525
18,910,383 18,767,357
LIABILITIES
Current liabilities
Payables 1,125,219 935,800
Accrued liabilities 2,702,543 2,464,967
Provisions 563,515 671,201
Customer deposits 497,620 288,192
Income taxes 65,711 58,576
Current portion of long- term debt 115,032 312,320
5,069,640 4,731,056
Long-term debt 2,019,753 2,077,787
7,089,393 6,808,843
EQUITY
Share capital 3,465,548 3,465,548
Other equity - Stock options 1,924,886 1,903,039
Contributed surplus 11,337,796 11,337,796
Accumulated other comprehensive income 249,742 306,595
Deficit (5,156,982 ) (5,054,464 )
11,820,990 11,958,514
18,910,383 18,767,357
Interim Consolidated Statements of Changes in Equity
(Unaudited)
Six-month periods ended April 30,
(Stated in Canadian dollars except for number of shares)
Share capital Other
equity
- Stock
options
Contributed
surplus
Accumulated
other
comprehensive
income
Deficit Total
Number $ $ $ $ $ $
Balance at November 1, 2010 69,994,300 3,465,548 1,894,040 11,337,796 - (3,650,834 ) 13,046,550
Net loss for the period - - - - - (1,344,477 ) (1,344,477 )
Foreign currency translation adjustments - - - - 187,407 - 187,407
Total comprehensive loss of the period: - - - - 187,407 (1,344,477 ) (1,157,070 )
Share-based compensation - - (11,448 ) - - - (11,448 )
Balance at April 30, 2011 69,994,300 3,465,548 1,882,592 11,337,796 187,407 (4,995,311 ) 11,878,032
Balance at November 1, 2011 69,994,300 3,465,548 1,903,039 11,337,796 306,595 (5,054,464 ) 11,958,514
Net loss for the period - - - - - (102,518 ) (102,518 )
Foreign currency translation adjustments - - - - (56,853 ) - (56,853 )
Total comprehensive loss of the period: - - - - (56,853 ) (102,518 ) (159,371 )
Share-based compensation - - 21,847 - - - 21,847
Balance at April 30, 2012 69,994,300 3,465,548 1,924,886 11,337,796 249,742 (5,156,982 ) 11,820,990
Interim Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three-month and six-month periods ended April 30,
(Stated in Canadian dollars except for number of shares)
For the three-month period For the six-month period
ended April 30, ended April 30,
2012 2011 2012 2011
$ $ $ $
Revenues
Network sales 10,277,123 8,869,108 20,238,165 17,933,127
Other revenue 1,142,964 1,790,657 2,225,090 3,102,285
11,420,087 10,659,765 22,463,255 21,035,412
Variable costs
Cost of goods sold 1,935,261 1,705,956 3,791,383 3,691,774
Sales incentives - Network 5,407,413 4,660,710 10,371,660 9,430,511
Other variable costs 1,088,149 966,101 2,037,160 1,907,905
Margin before expenses 2,989,264 3,326,998 6,263,052 6,005,222
Expenses
Administrative 1,378,453 1,492,271 2,999,778 3,231,700
Marketing and selling 1,248,505 1,126,524 2,405,769 2,568,282
Quality and development costs 183,460 222,639 406,133 476,865
Depreciation and amortization 223,658 274,913 463,262 538,402
Other expenses 11,706 (22,869 ) 21,847 657,625
Operating income (loss) (56,518 ) 233,520 (33,737 ) (1,467,652 )
Net finance expenses 124,857 200,610 80,373 269,757
Profit (loss) before income taxes (181,375 ) 32,910 (114,110 ) (1,737,409 )
Income taxes (recovery)
Current 13,298 (19 ) 15,455 4,684
Future (85,747 ) 39,780 (27,047 ) (397,616 )
Net loss (108,926 ) (6,851 ) (102,518 ) (1,344,477 )
Other comprehensive income (loss), net of income tax
Foreign currency translation adjustments (57,461 ) (153,564 ) (56,853 ) (187,407 )
Total comprehensive income (loss) for the period (51,465 ) 146,713 (45,665 ) (1,157,070 )
Total basic and diluted net profit (loss) per share (0.00 ) (0.00 ) (0.00 ) (0.02 )
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
Interim Consolidated Statements of Cash Flows
(Unaudited)
Six-month periods ended April 30,
(Stated in Canadian dollars)
2012 2011
$ $
Operating activities
Net profit (loss) (102,518 ) (1,344,477 )
Adjustments for:
Depreciation of property, plant and equipment 185,685 231,047
Amortization of intangible assets 277,577 307,355
Unrealized foreign exchange (46,253 ) 203,706
Accreted interest - 35,068
Interest expense measured at amortized cost 39,734 32,775
Future income taxes (27,047 ) (397,616 )
Share- based compensation 21,847 (11,448 )
Interest paid (42,129 ) (32,775 )
Interest received 2,395 -
Cash received prior to working capital variation 309,291 (976,365 )
Net change in non- cash working capital 422,569 (421,965 )
Net cash provided by (used in) operating activities 731,860 (1,398,330 )
Investing activities
Additions to property, plant and equipment (314,823 ) (79,660 )
Additions to intangible assets (83,057 ) (130,677 )
Net cash used in investing activities (397,880 ) (210,337 )
Financing activities
Reimbursement of long- term debt (55,982 ) -
Reimbursement of demand loan - (83,333 )
Reimbursement of other liability (200,203 ) -
Net cash used in financing activities (256,185 ) (83,333 )
Net increase (decrease) in cash during the period 77,795 (1,692,000 )
Cash at the beginning of the period 2,561,969 2,936,456
Effect of foreign exchange rate fluctuations on cash (13,627 ) (31,813 )
Cash at the end of the period 2,626,137 1,212,643

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.

Contact Information

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