Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

September 12, 2013 16:38 ET

Immunotec Announces Third Quarter 2013 Financial Results

VAUDREUIL-DORION, QUEBEC--(Marketwired - Sept. 12, 2013) - Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company" or "Immunotec"), today released its third quarter 2013 financial results for the three- and nine-month periods ended 31 July 2013.

"Immunotec has concluded a strong quarter of growth, particularly in Mexico and the western United States. Sponsoring trended positively in all markets throughout the three-month period, reflecting the marketing outreach of the Company's independent consultants" said Mr. Charles L. Orr, Immunotec's Chief Executive Officer. "Additionally, we are commemorating this week, the research partnership initiated twenty five years ago leading to the discovery of Immunocal and the birth of our business in 1995".

Highlights for the third quarter of fiscal 2013

  • Total Revenue for the three-month period reached $14.4M, an increase of 9.8% as compared to the same period in the previous year. Total revenue in the nine-month period reached $39.2M, an increase of 10.2% as compared to the same period in the previous year.

  • Network sales in the three-month period reached $12.9M, an increase of 10.3% as compared to the same period in the previous year. Network sales in the nine-month period reached $35.3M, an increase of 10.5% as compared to the same period in the previous year. The increases in both periods in 2013 are attributable to sales in Mexico and favourable foreign exchange fluctuations

  • Selected expenses,(1) defined as administrative, marketing and selling, quality and development expenses in the three-month period ended 31 July 2013, amounted to $3.3M or 22.9% of total revenues, which compares favourably to 24.2% for the same period in the previous year. In the nine-month period, these expenses amounted to $9.2M or 23.5% of total revenues, also comparing favourably to 25.3% the same period of the previous year.

  • Adjusted EBITDA,(1) in the three-month period ended 31 July 2013 amounted to $0.6M or 4.0% of total revenues, compared to $0.8M or 6.0% of total revenues for the same period in the previous year. For the nine-month period, Adjusted EBITDA(1) amounted to $2.2M or 5.6% of total revenues, an improvement over $1.3M and 3.5% in the previous year.

  • Net loss for the three-month period ended 31 July 2013 amounted to $0.1M compared to net profit of $0.3M for the same period in the previous year. For the nine-month period ended 31 July 2013, net profit amounted to $1.1M a significant improvement over $0.2M in the same period in the previous year.

(1) Please refer to the non-GAAP financial measures section of our Third Quarter 2013 Management's Discussion and Analysis

"We are pleased with the Net earnings after nine months, reflecting the field efforts to build shareholder value;" said Mr. Patrick Montpetit, Immunotec's Chief Financial Officer, "the net loss for the quarter is the result of the non-cash foreign exchange adjustments and non-cash deferred income tax charges."

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, Mexico, Europe 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.

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.

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.

SUPPLEMENTAL INFORMATION

Immunotec Inc.
Interim Consolidated Statements of Financial Position
As at
31 July 31 October
2013 2012
(Canadian dollars) $ $
ASSETS
Current assets
Cash 3,913,673 3,779,089
Trade and other receivables 1,686,418 1,688,279
Inventories 2,925,250 2,601,079
Prepaid expenses 495,585 374,774
9,020,926 8,443,221
Non-current assets
Property, plant and equipment 5,876,178 5,931,470
Intangible assets 1,343,862 1,621,830
Goodwill 833,559 833,559
Other non- current assets 3,811,499 3,102,151
11,865,098 11,489,010
20,886,024 19,932,231
LIABILITIES
Current liabilities
Bank indebtedness - 5,000
Payables 1,024,048 1,545,310
Accrued liabilities 4,161,610 3,151,212
Provisions 226,632 491,776
Deferred revenue and customer deposits 486,202 630,240
Income taxes 48,813 54,859
Current portion of finance lease obligation 13,512 -
Current portion of long- term debt 120,324 117,120
6,081,141 5,995,517
Non-current liabilities
Finance lease obligation 46,412 -
Long- term debt 1,870,814 1,964,336
7,998,367 7,959,853
EQUITY
Share capital 3,443,755 3,462,503
Contributed surplus 13,194,067 13,259,401
Accumulated other comprehensive income 113,513 179,531
Deficit (3,863,678 ) (4,929,057 )
12,887,657 11,972,378
20,886,024 19,932,231
Immunotec Inc.
Interim Consolidated Statements of Income (Loss)
For the three-and nine-month periods ended 31 July
Three months Nine months
2013 2012 2013 2012
(Canadian dollars except for the number of shares) $ $ $ $
Revenues
Network sales 12,952,387 11,745,818 35,352,976 31,983,983
Other revenue 1,408,244 1,334,122 3,817,357 3,559,212
14,360,631 13,079,940 39,170,333 35,543,195
Cost of sales
Cost of goods sold 2,614,837 2,279,372 6,834,483 6,070,755
Sales incentives - Network 6,764,794 5,872,291 17,743,531 16,243,951
Other variable costs 1,110,470 1,106,989 3,178,069 3,144,149
Margin before expenses 3,870,530 3,821,288 11,414,250 10,084,340
Expenses
Administrative 1,675,243 1,652,175 4,651,073 4,651,953
Marketing and selling 1,320,227 1,260,565 3,815,842 3,666,334
Quality and development costs 298,008 250,497 750,728 656,630
Depreciation and amortization 191,341 229,294 631,937 692,556
Other expenses 17,640 2,824 38,154 24,671
Operating income 368,071 425,933 1,526,516 392,196
Net finance expenses (income) 258,093 73,314 (77,526 ) 153,687
Profit before income taxes 109,978 352,619 1,604,042 238,509
Income taxes
Current 4,023 8,278 9,532 23,733
Deferred 227,405 79,602 529,131 52,555
Net profit (loss) (121,450 ) 264,739 1,065,379 162,221
Total basic and diluted net profit (loss)common per share (0.00 ) 0.00 0.02 0.00
Weighted average number of common shares outstandingduring the period
Basic and diluted 69,611,330 69,990,055 69,706,508 69,990,055
Immunotec Inc.
Interim Consolidated Statements of Cash Flows
For the nine-month periods ended 31 July
2013 2012
(Canadian dollars) $ $
Operating activities
Net profit 1,065,379 162,221
Adjustments for:
Depreciation 297,998 275,505
Amortization 333,939 417,052
Unrealized foreign exchange differences (250,479 ) (20,520 )
Net interest expense on financial liabilities measured at amortized cost 57,673 58,171
Deferred income taxes 529,131 52,555
Share-based compensation 38,154 24,671
Interest paid (57,673 ) (61,295 )
Interest received - 3,124
Cash prior to working capital variation 2,014,122 911,484
Net change in non- cash working capital (1,551,554 ) 452,531
Net cash provided by operating activities 462,568 1,364,015
Investing activities
Additions to property, plant and equipment (168,477 ) (366,386 )
Additions to intangible assets (54,684 ) (105,135 )
Net cash used in investing activities (223,161 ) (471,521 )
Financing activities
Bank indebtedness (5,000 ) -
Reimbursement of long-term debt (90,318 ) (84,353 )
Reimbursement of finance lease obligation (1,076 ) -
Repurchase of shares (122,236 ) (1,145 )
Reimbursement of other liability - (200,203 )
Net cash used in financing activities (218,630 ) (285,701 )
Net increase in cash during the period 20,777 606,793
Cash - Beginning of the period 3,779,089 2,561,969
Effect of foreign exchange rate fluctuations on cash 113,807 (9,516 )
Cash - End of the period 3,913,673 3,159,246

Contact Information

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