Fiscal 2014 Second quarter highlights:
Revenues increased by 74.9% and rose to $4,889,330. Revenues stemming from the acquisition of
Victhom Human Bionics Inc. and Laboratoire Langelier generated
Net income after tax amounted to $226,963 for the period, compared to
$188,134 for the period ended December 31, 2012.
The Corporation recorded non-recurring administrative expenses in the
period (fiscal fees) in the amount of $115,137 related to the
acquisition of Victhom Human Bionics Inc
The adjusted net income after tax amounted to $342,100 for the period
ended December 31, 2013 compared to $188,134 for the same period last
The income tax expenses amounted to $139,008 of which an amount of
$123,150 did not impact the Corporation's cash flow. It reduced the
available fiscal attributes which were recorded as deferred tax assets
in the fourth quarter of the 2013 fiscal year.
Total assets amounted to $29,424,954 for the quarter ended December 31,
LAVAL, QC, Feb. 27, 2014 /CNW Telbec/ - Ergoresearch Ltd (TSXV: ERG) - based in Laval and mainly known under the Clinique du
pied Équilibre, Orthoconcept and now Laboratoire Langelier banners -
announced today its second quarter results for the period ended
December 31, 2013. All figures quoted are in Canadian dollars.
Financial results analysis takes into consideration the acquisitions of
Victhom Human Bionics inc. on April 26, 2013, Laboratoire M.P.
Langelier, LL Customs Inc., 2947-9052 Québec Inc. and Laboratoire M.P.
Langelier/Lanoue Inc. on January 22 2013 (effective January 01 2013).
Fiscal 2014 second quarter revenues totaled $4,489,330 a 74.9% increase
compared to an amount of $ 2,566,840 for the period ended December 31,
2012. Increased sales were primarily due to the following factors:
Influx of revenues from recent business acquisition of Victhom Human
Bionics and Laboratoire Langelier in the amount of $1,770,902;
Organic growth (other than by acquisitions) of 5.9 %
The increase in revenues from product derived from the Corporation's own
technologies was slightly offset by a decrease in revenues from generic
Operating income amounted to $491,682 in the second quarter of the 2014
fiscal year, compared to $357,246 for the period ended December 31,
2012. The adjusted operating income taking into account the
extraordinary and non-recurring items of $115,137, reached $606,819 a
69.9 % increase over last year. The depreciation charge included in
this result was $250,471 for the quarter ended December 31, 2013
compared to $75,844 for the same period last year;
For the second quarter of fiscal year 2014, the net income after tax
expenses reached $226,963, compared to $188,134 for the same period in
fiscal year 2013. This increase is mainly attributed to an increase in
specialty orthotic products, including the OdrA, a product launched in
fiscal year 2013.
Income tax expense amounted to $139,008 of which an amount of $123,150
had no cash flow incidence on the Corporation. This amount reduced the
fiscal attributes available to the Corporation These fiscal attributes
were recognized as deferred income taxes assets during the fourth
quarter of fiscal year 2013.
Ergoresearch and its subsidiaries are pursuing their objective of
sustained growth, the outcome of a carefully executed business
strategy. "The launch of the patented OdrA orthotic device is positive
and this product, under an exclusive Canadian distribution licensing
agreement, is well received among both patients and the medical
community." Today, the Corporation is in a promising position to
execute the next steps in its growth strategy. "We will take advantage
of the next few months to accelerate product promotion (including the
OdrA orthotic device) and we will continue to look for additional
acquisition opportunities." says Ergoresearch President and CEO, Mr.
Ergoresearch has developed the most important network of orthotics clinics in
Québec, with over one hundred clinics and satellite centres flying
under the banners of Clinique du pied Équilibre, Orthoconcept, Podotechand Langelier Orthèses Chaussures. The Corporation owns patents in the field of bionics, including
intellectual property for the Power Knee, the world's only motor-powered prosthesis with artificial intelligence
designed for above-knee amputees and is a leading manufacturer and
trend-setter of software, "intelligent" foot orthotics and specialty
orthotics dedicated to the orthopedics market.
Ergoresearch has also developed and commercialized Expert-Fit, the first robotized custom-fit orthotics manufacturing software
program of its kind, launched the first Living Lab in Canada for knee osteoarthritis and more recently, a new
world-patented orthotic device called the OdrA, that revolutionizes the treatment of pain associated with knee OA.
Ergoresearch Ltd is listed on the TSX Venture Exchange (TSXV) under the
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Forward looking statements
Certain statements in this Press Release contain forward-looking
statements and information that may entail certain risks related to
uncertainties. Such statements are based on management's expectations
and no assurance can be given that potential future results or
circumstances described in the forward looking statements will be
achieved or will occur. Such risks factors include, but are not limited
to, those related to the Corporation's ability to finance its
activities, competition, ability to negotiate and maintain
partnerships, the market acceptance of the said product, fluctuations
in operating results, the impact of general economics, industry and
market conditions, the ability to recruit and retain qualified
the success of research and development programs, fluctuations in cash
flow, expectations regarding market demand for particular products, the
strength of intellectual property, market dependence on new product
development, the trust invested in sub-contractors or their core
personnel, as well as other documents containing risks and
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The reader should not give great importance to forward-looking
statements as the results may differ from conclusions, predictions or
projections contained in such forward-looking statements; and certain
important factors or hypothesis taken into account in reaching
conclusions or the preparation of a projection or prediction may prove
to be incorrect in fact.
Management disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or circumstances. All figures are in Canadian dollars,
unless otherwise specified.
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SOURCE Ergoresearch Ltd