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Second Quarter Results Fiscal 2014 - Ergoresearch Inc. (ERG) Reports Excellent Financial Results

2/27/2014 12:31:17 PM

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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 $1,770,902;
  • 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 year.
  • 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, 2013;

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 products.

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. Sylvain Boucher

About Ergoresearch

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 symbol ERG.

This is not an invitation to purchase securities listed on TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the referenced securities or investment advisors. Please seek professional advice to evaluate specific securities.

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 employees,

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 uncertainties which are put forth every now and then by the firm to various Canadian securities and exchange commissions and made available at

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Ergoresearch Ltd

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