IBEX Reports Results for the Year Ended July 31, 2013
MONTREAL, QUEBEC--(Marketwired - Nov 29, 2013) - IBEX
Technologies Inc. ("IBEX" or the "Company") (TSX-VENTURE:IBT) today
reported its financial results for the year ended July 31,
2013.
"Following a very good Fiscal 2012, Fiscal 2013 has been a
challenging year for IBEX", said Paul Baehr, IBEX's President and
CEO. "While sales increased by 35% versus the prior year (due,
among other things, to a 5% increase in our IBEX Pharmaceuticals
subsidiary and the acquisition of Bio-Research Products), our
profits suffered due to the acquisition cost. Fiscal 2014 is
expected to be an even more difficult year as the Company will
absorb the effect of a hiatus in purchasing by of one of its major
customers".
Note: All figures are in Canadian dollars unless otherwise
stated. The Company's audited consolidated financial statements for
the year ended July 31, 2013 and the accompanying notes and the
related management's discussion and analysis can be found on the
Company's website at www.ibex.ca or under the Company's profile on
SEDAR at www.sedar.com.
FINANCIAL RESULTS FOR THE YEAR
Sales for the year ended July 31, 2013 totaled $3,968,829
compared to $2,924,700 in the prior year, which represents an
increase of 35%. This increase in sales stems from a 5% increase in
sales in the IBEX Pharmaceuticals subsidiary and the inclusion of
seven months of sales from the newly acquired Bio-Research
Products, Inc. ("BRP") in the amount of $895,467.
The net profit for the year ended July 31, 2013 declined to
$40,416 compared to net earnings of $229,981 for the previous
fiscal year. The decrease in profitability can be traced to the
inclusion of the operating losses at BRP ($522,286), and the
one-time transaction costs associated with that acquisition
($230,048), offset in part by the inclusion of $357,290 in current
and deferred income tax recovery.
Expenses for the year ended July 31, 2013 were $4,285,703
compared to $2,694,719 in the previous year. The bulk of the
increase traces to the inclusion of seven months of BRP expenses
($1,417,753) and the transaction costs referred to above.
In the year ended July 31, 2013, net working capital decreased
to $2,512,907 from $2,790,395 in the year ended July 31, 2012.
Cash, cash equivalents and marketable securities decreased to
$1,579,639 from $2,677,276. These changes relate primarily to the
acquisition of BRP (the Company paid a cash consideration of
US$2,000,000, partially offset by a US$990,000 mortgage on the land
and buildings of BRP), and the 2013 operating costs of BRP.
The recorded capital expenditures for the year were $390,043 (of
which $132,016 was a non-cash item as it was included in the BRP
purchase price). Capital expenditures for the year ended July 31,
2012 were $9,485.
FINANCIAL RESULTS FOR THE FOURTH QUARTER OF FISCAL 2013
Sales for the quarter ended July 31, 2013 totaled $1,203,917,
which represents an increase of 53% as compared to $785,107 in the
same period of the prior year.
The Company recorded a net profit of $495,551 in its fourth
quarter ended July 31, 2013 compared to a net loss of $73,643 for
the same period a year ago, tracing primarily to a net profit of
$756,637 in its IBEX subsidiary (including the previously mentioned
$357,290 income tax provision) offset by losses of $261,086 at its
BRP subsidiary).
Expenses for the period were $1,065,656 compared to $858,750 in
the same period a year ago. The increase in expenses traces to the
inclusion of BRP operating expenses of $783,190, which were
partially offset by a decrease in expenses in IBEX Pharmaceuticals
of $576,284 (which included a positive inventory adjustment of
$361,269).
Financial Summary for the years ended |
|
|
July 31, 2013 |
|
July 31, 2012 |
Revenues |
$ |
3,968,829 |
$ |
2,924,700 |
Earnings before Interest, Tax, Depreciation & Amortization |
$ |
41,437 |
$ |
335,729 |
Depreciation & Amortization |
$ |
344,668 |
$ |
151,026 |
Net Earnings |
$ |
40,416 |
$ |
229,981 |
Earnings per Share |
$ |
0.00 |
$ |
0.01 |
Cash, Cash Equivalents & Marketable Securities |
$ |
1,579,639 |
$ |
2,677,276 |
Net Working Capital |
$ |
2,512,907 |
$ |
2,790,395 |
Outstanding shares at report date (Common Shares) |
|
24,703,244 |
|
24,703,244 |
LOOKING FORWARD
Fiscal 2014 and Fiscal 2015 will be challenging years for the
Company. As previously announced, the Company was informed that a
major customer will significantly cut back its purchases over the
next two years. In the event the Company is not able to replace the
sales from this major customer with new contracts, it will not be
in a cash flow positive position in Fiscal 2014, and possibly in
Fiscal 2015.
The company expects that its new acquisition, BRP, will be cash
neutral in Fiscal 2014 and cash positive in Fiscal 2015.
The Company has been working on a number of projects with major
customers, some of which it hopes will result in significant
revenue in the latter part of Fiscal 2014. However, we cannot be
certain that any of these projects will in fact come to
fruition.
Management believes that the Company has sufficient funds to
meet its obligations and planned expenditures for the ensuing
twelve months as they fall due. In assessing whether the going
concern assumption is appropriate, management takes into account
all available information about the future, which is at least, but
not limited to, twelve months from the end of the reporting
period.
ABOUT IBEX
IBEX, through its wholly owned subsidiaries IBEX Pharmaceuticals
Inc. (Montreal, QC) and the recently acquired Bio-Research
Products, Inc. (North Liberty, IA), manufactures and markets
proteins for biomedical use. IBEX Pharmaceuticals also manufactures
and markets a series of arthritis assays which are widely used in
osteoarthritis research.
For more information, please visit the Company's website at
www.ibex.ca.
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.
Safe Harbor Statement
All of the statements contained in this news release, other
than statements of fact that are independently verifiable at the
date hereof, are forward-looking statements. Such statements, as
they are based on the current assessment or expectations of
management, inherently involve numerous risks and uncertainties,
known and unknown. Some examples of known risks are: the impact of
general economic conditions, general conditions in the
pharmaceutical industry, changes in the regulatory environment in
the jurisdictions in which IBEX does business, stock market
volatility, fluctuations in costs, and changes to the competitive
environment due to consolidation or otherwise. Consequently, actual
future results may differ materially from the anticipated results
expressed in the forward-looking statements. IBEX disclaims any
intention or obligation to update these statements, except if
required by applicable laws.
In addition to the risk factors identified above, IBEX is,
and has been in the past, heavily reliant on three products and
five customers, the loss of any of which could have a material
effect on its profitability.
Paul BaehrPresident & CEOIBEX Technologies Inc.514-344-4004
x 143
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