MONTREAL, QUEBEC--(Marketwire - June 16, 2010) - IBEX Technologies Inc. (TSX VENTURE: IBT), today reported its financial results for the third quarter ended April 30, 2010.
FINANCIAL RESULTS FOR THE THIRD QUARTER
IBEX noted that during the third quarter of fiscal year 2010, the average exchange rate for USD, the currency-of-sale, dropped to $1.03 vs. $1.25 in the third quarter ended April 30, 2009.
Partially as a result of this decline in our currency-of-sale, reported sales in Canadian dollars for the quarter ended April 30, decreased 56% as compared to the exceptional quarter year-ago, and decreased 46% vs. the previous quarter.
Additionally, the year-ago quarter benefited from a large one time order pertaining to an arthritis study which is no longer running. Also contributing to the decline in this quarter vs. year ago was a reduction in orders by one of our major customers of diagnostic enzymes. This customer has now returned to their regular order pattern.
Net earnings for the quarter ended April 30, 2010 were $137,927 or $0.01 per share, compared to net earnings of $242,582, or $0.01 per share, for the same period year ago, representing a decrease of 43%. This decrease is mainly attributable to the decline in sales for the quarter, rather than increasing costs.
Excluding foreign exchange, expenses during the quarter decreased by 4% versus vs. year-ago and also by 19% vs. the previous quarter. Foreign exchange gains of $353,029 were recorded in the quarter vs. a loss of $117,725 in the same period year ago.
Cash, cash equivalents, and marketable securities increased 12% during the quarter to $2,973,894 and are up 40% vs. the same period year ago.
The Company's working capital was up 47% to $3,482,086 as at the end of the third quarter ended April 30, 2010 as compared to $2,390,884 as at the end of the quarter ending April 30, 2009.
"As anticipated, the Company saw a sales decline due to a declining US dollar (which will effect us in the next quarter as well), said Paul Baehr, IBEX President & CEO, however we are encouraged by our increasing cash and working capital levels."
Financial Summary for the quarters ending
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April 30, April 30,
2010 2009
Revenues $469,502 $1,072,603
Earning Before Interests, Tax, Depreciation &
Amortization $156,700 $265,103
Depreciation & Amortization $25,935 $26,470
Net Earnings $137,927 $242,582
Net Earnings per Share $0.01 $0.01
Cash, Cash Equivalents & Marketable Securities $2,973,894 $2,118,086
Net Working Capital $3,482,086 $2,390,884
Outstanding shares at report date (Common
Shares) 24,703,244 24,703,244
LOOKING FORWARD
IBEX has been successful in bringing its existing business to profitability and is now turning its attention to pursuing growth opportunities, including further growing its base business, and maximizing shareholder value through strategic initiatives with companies where increased market strength and synergies might be obtained.
Looking forward, we are investing in production capacity to meet increasing demand for enzyme-based products, and we are also adding modestly to our assay development team to accelerate the development of a number of new assays.
On a quarter to quarter basis the Company expects that it will see large fluctuation in sales as a result in the volatility of the Canadian dollar, however, it expects that on average, cash flow will increase steadily due to strong fundamentals and the Company's hedging strategy which is more fully explained in the MD&A.
ABOUT IBEX
The Company manufactures and markets a series of proprietary enzymes (heparinases and chondroitinases) for use in pharmaceutical research by our customers, as well Heparinase I, which is used in many leading hemostasis monitoring devices.
IBEX also manufactures and markets a series of arthritis assays which are widely used in pharmaceutical research by our customers. These assays are based on the discovery and increasing role of a number of specific molecular biomarkers associated with collagen synthesis and degradation.
For more information, please visit the Company's web site at www.ibex.ca.
The TSX Venture Exchange does not accept 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, based as they are on the current 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.
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CONSOLIDATED BALANCE SHEETS
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April 30 July 31,
UNAUDITED 2010 2009
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$ $
ASSETS
Current assets
Cash and cash equivalents 2,973,894 2,260,344
Accounts receivable 553,645 996,830
Inventories 327,327 321,922
Prepaid expenses 102,728 63,258
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Sub-total current assets 3,957,594 3,642,354
Long term deposit 8,650 8,650
Property and equipment 634,556 530,544
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Total assets 4,600,800 4,181,548
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 475,508 761,208
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Total liabilities 475,508 761,208
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SHAREHOLDERS' EQUITY
Capital stock 52,660,078 52,660,078
Contributed surplus 471,708 401,553
Deficit (49,006,494) (49,641,291)
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Total shareholders' equity 4,125,292 3,420,340
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Total liabilities and shareholders' equity 4,600,800 4,181,548
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CONSOLIDATED STATEMENTS OF DEFICIT April 30, April 30,
2010 2009
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$ $
Balance - Beginning of period (49 641 291) (50,985,029)
Net earnings for the period 634,797 869,106
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Balance - End of period (49,006,494) (50,115,923)
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CONSOLIDATED STATEMENTS OF EARNING AND
COMPREHENSIVE INCOME
UNAUDITED
Three months ended Nine months ended
April 30 April 30
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2010 2009 2010 2009
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$ $ $ $
Revenue 469,502 1,072,603 1,987,196 2,680,591
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Operating expenses
Selling, general and
administrative
expenses
and cost of goods sold (641,476) (688,335) (1,677,015) (1,825,255)
Amortization of
property and
equipment (25,935) (26,470) (93,676) (58,488)
Other interest and
bank charges (3,161) (3,223) (9,796) (14,434)
Foreign exchange gain
(loss) 353,029 (117,725) 437,989 50,892
Gain on sale of assets (21,194) 1,783 (21,194) 12,172
Investment income 7,162 3,949 11,293 23,628
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Total operating expenses (331,575) (830,021) (1,352,399) (1,811,485)
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Net earnings and other
comprehensive income 137,927 242,582 634,797 869,106
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Net earnings and other
comprehensive income
per share
Basic and diluted $ 0.01 $ 0.01 $0.03 $ 0.04
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See accompanying notes
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CONSOLIDATED CASH FLOW
STATEMENTS Three months ended Nine months ended
April 30 April 30
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UNAUDITED 2010 2009 2010 2009
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$ $ $ $
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Cash flows provided by
(used in):
Operating activities
Net profit for the period $137,927 $242,582 $634,797 $869,106
Items not affecting cash -
Amortization of property
and equipment 25,935 26,470 93,676 58,488
Stock-based compensation
costs 9,375 349 70,155 5,300
Gain on disposal of
property and equipment - (1,783) - (12,172)
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Cash flow relating to
operating activities 173,237 267,618 798,628 920,722
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Net changes in non-cash
working capital items -
Decrease (increase) in
accounts receivable (37,327) (6,637) 443,184 (454,687)
Increase in inventories 37,046 93,307 (5,405) 57,353
Decrease (increase) in
prepaid expenses (92,826) (30,460) (39,470) (5,979)
(Decrease) increase in
accounts payable and
accrued liabilities 104,662 41,888 (285,700) 224,693
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Net changes in non-cash
working capital balances
relating to operations 11,555 98,098 112,609 (178,620)
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Cash flow relating to
operating activities 184,792 365,716 911,237 742,102
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Investing activities
Additions to marketable
securities - - - (209,207)
Proceeds on disposal of
marketable securities - - - 1,404,375
Additions to property and
equipment (115,788) (98,349) (197,688) (203,452)
Proceeds on disposal of
property and equipment - 1,783 - 12,172
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Cash flow relating to
financing activities (115,788) (96,566) (197,688) 1,003,888
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Increase in cash and cash
equivalents during the
quater 69,004 269,150 713,549 1,745,990
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Cash and cash equivalents
- Beginning of period 2,904,890 1,848,936 2,260,345 372,096
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Cash and cash equivalents
- End of period 2,973,894 2,118,086 2,973,894 2,118,086
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