Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

June 12, 2015 17:44 ET

Immunotec Reports Second Quarter Results

U.S. Network sales up 25%

VAUDREUIL-DORION, QUEBEC--(Marketwired - June 12, 2015) - Immunotec Inc. (TSX VENTURE:IMM), a direct-to-consumer company and a leader in the nutritional industry (the "Company" or "Immunotec"), today announced its consolidated financial results for the second quarter of Fiscal 2015. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.

"During the 2nd quarter, the Company welcomed nearly 4,000 Consultants and guests to conventions and other meetings in Canada, the United States and Mexico to learn about new products and programs and be recognized for their personal and team accomplishments", said Charles L. Orr, Chief Executive Officer of Immunotec. "We have set the stage for growth during the Spring and Summer months", added Mr. Orr.

DEVELOPMENTS DURING THE PERIOD

  • November 2014 - Immunotec and Institut de recherches cliniques de Montréal (IRCM) announced clinical results, published in the JOURNAL OF NUTRITION HEALTH AND AGING, showing that Immunocal imparted a performance benefit of approximately 10% in a model of resistance exercise in an elderly population of between 65 to 88 years. The results are very important in the context of healthy aging, as this process is typically associated with a decrease in muscle strength which comprises quality of life in later years.
  • February and March 2015 - Immunotec hosted 3 conventions and used this opportunity to launch 2 new products addressing demand in the skin care market for Mexico and the renewing cartilage or healthy joints market for Canada and the United States.
  • April 2015 - Immunotec was ranked 97th on the Direct Selling News sixth annual DSN Global 100 list. This list is an exclusive ranking of the top revenue-generating companies in the direct selling industry worldwide.
  • May 2015 - Immunotec announced that Health Canada granted a new health claim specific to Immunocal's ability to help "increase muscle strength and enhance performance when combined with regular exercise". These milestones are the fruition of over four decades of research at leading university hospitals in Canada and abroad.
  • May 2015 - Immunotec welcomes Dr. Ronald Prussick, MD, FRCP(C) as a distinguished member of the Immunotec Scientific Advisory Board. Dr. Prussick currently serves as the medical director of The Washington Dermatology Center and Assistant Clinical Professor at George Washington University in Washington, DC. He will work with the Immunotec Product Development Committee (PDC) playing an integral role in the development of the new all- natural skin care line.

PERFORMANCE HIGHLIGHTS

Revenues for the three- and six-month periods ending April 30, 2015 reached $20.0M and $37.9M compared to $19.1M and $35.2M in the previous year, an increase of $0.9M or 4.8% and $2.7M or 7.6%. This growth was generated mostly by increased sales in the United States.

Revenues and sponsoring 1
For the periods ended April 30, Three-months Six-months
('000s of C$) 2015 2014 Variation 2015 2014 Variation
Network sales 18,170 17,484 3.9 % 34,475 32,261 6.9 %
Other revenue 1,798 1,578 13.9 % 3,412 2,957 15.4 %
19,968 19,062 4.8 % 37,887 35,218 7.6 %
Network sales in key markets in local currency 2015 2014 Variation 2015 2014 Variation
Mexico ('000s of Mexican pesos) 114,834 125,238 -8.3 % 221,362 224,111 -1.2 %
United States ('000s of US$) 4,735 3,790 24.9 % 8,847 7,232 22.3 %
Canada ('000s of C$) 2,733 2,772 -1.4 % 5,489 5,700 -3.7 %
Sponsoring1of new customers and consultants in key markets(# of people) 2015 2014 Variation 2015 2014 Variation
Mexico 12,847 15,143 -15.2 % 23,526 27,282 -13.8 %
United States 4,384 3,369 30.1 % 7,608 6,062 25.5 %
Canada 1,534 1,284 19.5 % 3,023 2,637 14.6 %
18,765 19,796 -5.2 % 34,157 35,981 -5.1 %

"The recent volatility in currencies is causing businesses worldwide to review their supply chain strategies," said Mr. Patrick Montpetit, Chief Financial Officer. "Subsequent to the end of April, we secured additional financing to support strengthening our supply chain".

Adjusted EBITDA1 for the three- and six-month periods ended April 30, 2015 amounted to $1.4M or 7.0% and $2.5M or 6.6% of revenues compared to $1.4M or 7.4% and $2.2M or 6.2% in the same period the previous year.

Net profit for the three- and six-month periods ended April 30, 2015 was $0.3M and $1.2M compared to $0.8M and $1.5M for the same period in the previous year.

1 Refer to the "NON-GAAP MEASURES" section. The definition of Sponsoring and the Adjusted EBITDA reconciliation to Net (loss) profit is shown below.

About Immunotec Inc.

Immunotec is a Canadian-based company that develops, manufactures, markets and sells research-driven nutritional products through direct-to-consumer sales channels primarily in Canada, the U.S. and Mexico. The Company offers an extensive family of nutritional products targeting health, wellness, weight management, as well as energy and performance. The Immunocal family of products is supported by over 40 published articles and supporting science in medical and scientific literature.

Please visit us at www.immunotec.com for additional information.

The Company files its continuous disclosure documents inclusive of its second quarter results 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, Annual Informat ion Form and Preliminary Short Form Prospectus, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

NON-GAAP MEASURES: This Press Release contains non-GAAP measures which do not have a standardized meaning under International Financial Reporting Standards ("IFRS"). We use earnings before interest, taxes, depreciation and amortization ( "EBITDA"), as this measure allows management to evaluate the operational performance of the Company. EBITDA does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA should not be considered an alternative to profit (loss) in measuring the Company's performance, nor should it be used as a n exclusive measure of cash flow. This measure does not represent the funds available for the repayment of debt, the payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as substitutes for other measures of performance calculated according to IFRS. The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company's definition of these metrics may differ from those of other businesses.

Adjusted EBITDA and Sponsoring

  • Adjusted EBITDA corresponds to EBITDA as defined above less elements that management considers to be outside the scope of its normal activities and therefore not reflective of how management views performance measurement. Management believes that this metric is necessary in order to isolate commercial operations from items which it believes merit separate examination when assessing performance. Consistent improvement in adjusted EBITDA is one of management's primary objectives.
Calculation of adjusted EBITDA 1
For the periods ended April 30, Three-months Six-months
('000s of C$) 2015 2014 2015 2014
Net profit 323 770 1,175 1,529
Add (deduct):
Depreciation and amortization 168 176 322 349
Net finance expense (income) 793 120 451 (347 )
Other expense 6 15 9 32
Income taxes 104 338 560 618
Adjusted EBITDA 1,394 1,419 2,517 2,181
as a % of Revenues 7.0 % 7.4 % 6.6 % 6.2 %
  • Sponsoring means the activity in which independent Consultants sponsor new Consultants and Customers; the sponsored Consultants themselves may sponsor new Consultants or Customers and so forth. This is referred to as a Consultant's "organization" or "downline". The Consultants are compensated for sales generated by their organization, based on their quali fication and rank. Successful Independent Consultants assume the responsibility to train, support and communicate with their downline.

Contact Information

  • Patrick Montpetit CPA, CA, CF
    Vice-President and Chief Financial Officer
    Immunotec Inc.
    (450) 510-4527