Immunotec Inc.
TSX VENTURE : IMM

Immunotec Inc.

September 16, 2016 21:34 ET

Immunotec Reports Third Quarter Results

Record Revenues of $28.4M or 28.6%

VAUDREUIL-DORION, QUEBEC--(Marketwired - Sept. 16, 2016) - Immunotec Inc. (TSX VENTURE:IMM), a direct-to-consumer company and leader in the nutritional industry (the "Company" or "Immunotec"), today announced its third quarter financial results for Fiscal 2016. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.

QUARTERLY PERFORMANCE HIGHLIGHTS

  • Network sales amounted to $26.4M an increase of 31.0% while Sponsoring(1) of new customers and consultants increased by 47.6% over last year.
  • Network sales in key geographies grew by 54.5% in Mexico, 19.3% in the United States and 4.6% in Canada.
  • Margin before expenses were down by 2.7% reaching 73.0% and Adjusted EBITDA(1) amounted to 3.4% of Revenues, impacted from the recent foreign currency devaluation of the Mexican Peso.
  • Net profit totalled $0.6M or $0.009, basic and fully diluted profit per common share.

"We are pleased by the Revenue growth for the fiscal year but our profitability was affected by the recent devaluation of the Mexican Peso," said Patrick Montpetit, Chief Financial Officer of Immunotec. "Looking at results, on a currency neutral basis, we estimate our profits have been reduced by approximately $1.0 M for the Quarter."

"We maintain our guidance to exceed $100M in Revenues for the full fiscal year, but are concerned that profitability will remain impacted during the Fourth quarter from further deterioration in the Mexican Peso. Management has initiated a review the currency risk exposure and will work to find mitigating solutions to this new economic reality," said Patrick Montpetit, Chief Financial Officer of Immunotec.

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

Results of operations
For the periods ended July 31, Three-months Nine-months
('000s of C$, except for share and per share data) 2016 2015 2016 2015
Revenues 28,370 22,068 76,900 59,954
Cost of sales 7,674 5,369 19,527 14,237
Margin before expenses 20,696 16,699 57,373 45,717
Expenses 19,968 15,543 54,301 42,375
Operating income 728 1,156 3,072 3,342
Net finance (income) expenses (94 ) (256 ) 684 195
Income taxes 200 260 860 820
Net profit 622 1,152 1,528 2,327
Total comprehensive income 554 1,041 1,271 2,380
Revenues and sponsoring(1)
For the periods ended July 31, Three-months Nine-months
('000s of C$) 2016 2015 Variation 2016 2015 Variation
Network sales 26,383 20,139 31.0 % 70,931 54,614 29.9 %
Other revenue 1,987 1,929 3.0 % 5,969 5,340 11.8 %
28,370 22,068 28.6 % 76,900 59,954 28.3 %
Network sales in key markets in local currency 2016 2015 Variation 2016 2015 Variation
Mexico ('000s of Mexican pesos) 200,170 129,566 54.5 % 494,614 350,928 40.9 %
United States ('000s of US$) 6,473 5,424 19.3 % 17,872 14,271 25.2 %
Canada ('000s of C$) 3,020 2,887 4.6 % 8,888 8,376 6.1 %
Sponsoring(1) of new customers and consultants in key markets (# of people) 2016 2015 Variation 2016 2015 Variation
Mexico 22,469 14,557 54.4 % 53,922 38,083 41.6 %
United States 6,547 5,002 30.9 % 16,686 12,610 32.3 %
Canada 2,175 1,577 37.9 % 6,173 4,600 34.2 %
31,191 21,136 47.6 % 76,781 55,293 38.9 %
Calculation of adjusted EBITDA(1)
For the periods ended July 31, Three-months Nine-months
('000s of C$) 2016 2015 2016 2015
Net profit 622 1,152 1,528 2,327
Add:
Depreciation and amortization 165 170 511 492
Net finance (income) expenses (94 ) (256 ) 684 195
Other expenses 67 158 1,001 167
Income taxes 200 260 860 820
Adjusted EBITDA 960 1,484 4,584 4,001
as a % of Revenues 3.4 % 6.7 % 6.0 % 6.7 %

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 in Canada, the U.S., Mexico, the Dominican Republic, the United Kingdom and Ireland. The Company offers an extensive family of nutritional, skin care and wellness products targeting health, weight management, energy and physical performance.

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

The Company files its continuous disclosure documents, inclusive of its year end 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.

This Press Release should be read in conjunction with the Company's most recent unaudited interim condensed consolidated financial statements and the Management discussion and analysis which can be found at www.sedar.com.

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, 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 an 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.
  • 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 qualification and rank. Successful Independent Consultants assume the responsibility to train, support and communicate with their downline.

Contact Information

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