Immunotec Inc.

TSX VENTURE : IMM


Immunotec Inc.

February 07, 2013 16:00 ET

Immunotec Announces Year End 2012 Financial Results

Network sales increased 18% compared to previous year

VAUDREUIL-DORION, QUÉBEC--(Marketwire - Feb. 7, 2013) - Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today released its Year End 2012 financial results for the period ended October 31, 2012.

"Over the last twelve months, our Company has recruited 43,000 new distributors, a 41% increase over the prior year. This strong recruitment performance has improved our profitability and strengthens our balance sheet", said Bob Henry, Immunotec's Chairman and CEO. "Our product line is creating significant opportunities for distributors and we are as confident as ever in the future of Immunotec."

Highlights for the year

  • Total Revenue reached $49.2M, an increase of 15% as compared to the previous year.
  • Network sales reached $44.2M, an increase of 18% as compared to the same period in the previous year.
  • Selected expenses(1), defined as administrative, marketing and selling, quality and development expenses amounted to $11.9M and measured favorably, as a percentage of total revenues by improving to 24% as compared to 28% of total revenues last year.
  • Adjusted EBITDA(1) improved to $1.9M or 3.8% of total revenues, compared to $0.6M or 1.4% of total revenues over last year, a major improvement.
  • Net profit of $125 thousand, a significant improvement over last year (net loss of $1.4M).

(1) Refers to adjusted EBITDA in non-GAAP financial measures section of the Management Discussion and Analysis.

Modifications to the Corporation's Stock Option Plan

The Board of Directors has also approved a modification to the Company's Stock Option Plan, whereby it removed the 2-month hold period which applied to shares issued following the exercise of options under such Plan.

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.

SUPPLEMENTAL INFORMATION
Consolidated Statements of Financial Position
(Stated in Canadian dollars)
October 31, October 31, November 1,
2012 2011 2010
$ $ $
ASSETS
Current assets
Cash3,779,089 2,561,969 2,936,456
Trade and other receivables1,688,279 659,004 782,557
Inventories2,601,079 3,324,740 2,612,670
Prepaid expenses374,774 393,119 381,717
8,443,221 6,938,832 6,713,400
Non-current assets
Property, plant and equipment5,931,470 5,931,411 6,218,352
Intangible assets1,621,830 2,000,217 2,446,675
Goodwill833,559 833,559 833,559
Deferred income tax assets2,736,460 2,725,367 2,313,920
Non-refundable research and development tax credits365,691 337,971 484,349
11,489,010 11,828,525 12,296,855
19,932,231 18,767,357 19,010,255
LIABILITIES
Current liabilities
Bank indebtedness5,000 - -
Demand loan- - 1,000,000
Payables1,545,310 935,800 1,593,697
Accrued liabilities3,151,212 2,464,967 2,182,517
Provisions491,776 671,201 524,559
Customer deposits630,240 288,192 274,051
Income taxes54,859 58,576 2,041
Current portion of long-term debt117,120 312,320 147,218
5,995,517 4,731,056 5,724,083
Long-term debt1,964,336 2,077,787 239,622
7,959,853 6,808,843 5,963,705
EQUITY
Share capital3,462,503 3,465,548 3,465,548
Contributed surplus13,259,401 13,240,835 13,231,836
Accumulated other comprehensive income179,531 306,595 -
Deficit(4,929,057)(5,054,464)(3,650,834)
11,972,378 11,958,514 13,046,550
19,932,231 18,767,357 19,010,255
Immunotec Inc.
Consolidated Statements of Changes in Equity
(Stated in Canadian dollars)
Share capital Contributed surplus Accumulated other comprehensive income Deficit Total
Number $ $ $ $ $
Balance at November 1, 201069,994,300 3,465,548 13,231,836 - (3,650,834)13,046,550
Net loss- - - - (1,403,630)(1,403,630)
Foreign currency translation adjustments- - - 306,595 - 306,595
Total comprehensive loss- - - 306,595 (1,403,630)(1,097,035)
Share-based compensation- - 8,999 - - 8,999
Balance at October 31, 201169,994,300 3,465,548 13,240,835 306,595 (5,054,464)11,958,514
Net profit- - - - 125,407 125,407
Foreign currency translation adjustments- - - (127,064)- (127,064)
Total comprehensive loss- - - (127,064)125,407 (1,657)
Repurchase of shares(61,745)(3,045)(11,623)- - (14,668)
Share-based compensation- - 30,189 - - 30,189
Balance at October 31, 201269,932,555 3,462,503 13,259,401 179,531 (4,929,057)11,972,378
Immunotec Inc.
Consolidated Statements of Income (Loss)
(Stated in Canadian dollars)
2012 2011
$ $
Revenues
Network sales44,237,280 37,396,889
Other revenue4,968,795 5,523,390
49,206,075 42,920,279
Cost of sales
Cost of goods sold8,857,853 7,595,870
Sales incentives - Network22,615,538 19,060,065
Other variable costs4,260,186 3,810,679
Margin before expenses13,472,498 12,453,665
Expenses
Administrative5,964,183 6,403,079
Marketing and selling4,973,514 4,551,532
Quality and development costs891,006 905,113
Depreciation and amortization946,059 1,081,496
Other expenses486,634 765,618
Operating income (loss)211,102 (1,253,173)
Net finance expenses84,992 456,139
Profit (loss) before income taxes126,110 (1,709,312)
Income taxes (recovery)
Current8,462 93,605
Deferred(7,759)(449,287)
Profit (loss) from continuing operations125,407 (1,353,630)
Loss from discontinued operations- (50,000)
Net profit (loss)125,407 (1,403,630)
Basic and diluted net profit (loss) per share
Continuing operations0.00 (0.02)
Discontinued operations- (0.00)
Total basic and diluted net profit (loss) per share0.00 (0.02)
Weighted average number of common shares outstanding during the period
Basic and diluted69,985,287 69,994,300
Immunotec Inc.
Consolidated Statements of Comprehensive Loss
(Stated in Canadian dollars)
2012 2011
$ $
Net profit (loss)125,407 (1,403,630)
Other comprehensive income (loss), net of income tax
Foreign currency translation adjustments(127,064)306,595
Total comprehensive loss(1,657)(1,097,035)
Immunotec Inc.
Consolidated Statements of Cash Flows
(Stated in Canadian dollars)
2012 2011
$ $
Operating activities
Profit (loss) from continuing operations125,407 (1,403,630)
Loss from discontinued operations- (50,000)
Net profit (loss)125,407 (1,353,630)
Adjustments for:
Depreciation386,797 455,668
Amortization559,263 625,828
Gain on settlement of contingent consideration liability- (64,344)
Gain on change in fair value of contingent consideration liability- (56,950)
Loss on write- down of intangible assets4,131 -
Gain on disposal of a subsidiary(3,669)-
Foreign exchange loss (gain) on items denominated in foreign currencies(156,185)512,325
Accreted interest on contingent consideration liability- 51,720
Net interest expense on financial liabilities measured at amortized cost79,860 60,521
Deferred income taxes(7,759)(449,287)
Share-based compensation30,189 8,999
Interest paid(84,101)(60,521)
Interest received4,241 -
Cash prior to working capital variation938,174 (269,671)
Net change in non-cash working capital1,188,265 (878,924)
Net cash provided by (used in) operating activities2,126,439 (1,148,595)
Investing activities
Business acquisition(200,203)(109,777)
Additions to property, plant and equipment(384,050)(171,086)
Additions to intangible assets(187,233)(181,022)
Non-refundable research and investment tax credits(27,720)146,378
Net cash used in investing activities(799,206)(315,507)
Financing activities
Long-term debt- 2,200,000
Bank indebtedness5,000 -
Reimbursement of long-term debt(109,311)(9,233)
Reimbursement of demand loan- (1,000,000)
Repurchase of shares(14,668)-
Net cash used in financing activities(118,979)1,190,767
Net decrease in cash from continuing operations1,208,254 (273,335)
Net decrease in cash from discontinued operations
Operating activities- (50,000)
Net increase (decrease) in cash during the year1,208,254 (323,335)
Cash - Beginning of the year2,561,969 2,936,456
Effect of foreign exchange rate fluctuations on cash8,866 (51,152)
Cash - End of the year3,779,089 2,561,969

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
    Chief Financial Officer
    (450) 510-4527