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, | July 31, | |||
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.
