VAUDREUIL-DORION, QUEBEC--(Marketwire - March 29, 2010) -
- Active Distributors Up 8% to 27,000
- Earnings from continued operations to $343 thousand
Immunotec Inc. (TSX VENTURE: IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today reported positive results with First-quarter 2010, earnings from continuing operation profit of $343 thousand compared with a loss of $201 thousand in the prior-year quarter.
For the quarter ended January 31, 2010, EBITDA before losses from discontinued operations totalled $737 thousand or 7% of total income, compared to $4 thousand or 0% of total income for Fiscal 2009.
"A return to profitability after a challenging 2009, is a demonstration that our reorganized business model is starting to create shareholder value", said James A. Northrop, President and CEO of Immunotec Inc. "Our message on Health Improvement and Income Opportunity seems well received by our distributors to establish us as a first class multi- level marketing company".
Fiscal 2010 Financial Results Highlights:
- Network Sales reached $8.9M compared to $9.2M for the same period in
2009, a decline of $0.3M or a 4% decrease attributed to foreign exchange
rates stemming from a stronger Canadian dollar in 2010. The relative
contribution in sales last year resulting from this variation and for
the same period is approximately $0.6 M. The average Canadian dollar
value used during the period was 1.0571 during fiscal 2010 compared to
1.2264 for the same period of 2009.
- Other Revenues that include international distribution revenues, freight
and shipping, charge backs and educational material reached $1.6M in
2010 an increase of 11% compared to $1.5M in 2009.
- Margin before expenses, as a percentage of net sales improved to 32%
compared to 29% for year 2009. This improvement, despite the lower
revenues, is mostly attributed to certain amendments made on the sales
incentive program launch in 2009. Network Sales incentives is the
largest segment of variable expenses of the Company. As a percentage of
Network sales, the incentive program represented an average of 48% of
Network revenues, an improvement from the 53% level in 2009.
- Administration, Marketing, Sales, Quality Control and Research &
Development expenses were $2.6M representing 25% of total revenues and
improvement versus the 29% ratio for the previous year.
- Net earnings (loss) and comprehensive income (loss), including losses
from discontinued operations, achieved $209 thousand or $0.003 per
share, compared to a loss of $201 thousand or ($0.003) per share for
2009.
About Immunotec Inc.
Immunotec is a Network Marketing Company involved in the direct selling of scientifically validated natural health products and dietary supplements. The Company offers a lucrative business opportunity to its independent distributors. This business model provides Immunotec's network of people with an opportunity to earn a steady and recurring income, directly based on their level of involvement and performance. Individual distributors build their business by conveying product information and selling product to customers and by building teams of distributors to expand geographic penetration and market coverage to larger populations of customers.
Headquartered with manufacturing facilities near Montreal, Canada, the Company also subcontracts certain distribution logistics and capacity to support its activities in the United States, Europe and The Caribbean.
The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
Immunotec Inc.
Interim Consolidated Balance Sheet
(Unaudited)
As at January As at October
31, 2010 31, 2009
$ $
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ASSETS
Current
Cash 2,344,831 2,262,821
Accounts receivable 584,798 201,841
Income taxes receivable 35,742 70,306
Inventories 3,450,779 3,941,847
Prepaid expenses 540,867 436,251
Future income taxes 82,115 90,133
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7,039,132 7,003,199
Long-term
Property, plant and equipment 5,954,856 6,068,313
Intangible assets 2,375,673 2,505,937
Goodwill 499,541 499,541
Future income taxes 1,894,528 1,969,403
Other assets (note 3) 656,397 699,839
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18,420,127 18,746,232
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 2,176,760 2,629,247
Accrued liabilities 1,666,131 1,881,390
Customer deposits 391,294 308,557
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4,234,185 4,819,194
Shareholders' Equity (Deficit)
Share capital (note 4) 3,465,548 3,465,548
Other equity - Stock options (note 5) 1,819,696 1,770,093
Contributed surplus 11,337,796 11,337,796
Deficit (2,437,098) (2,646,399)
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14,185,942 13,927,038
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18,420,127 18,746,232
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Immunotec Inc.
Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
Number of Other equity
common Share -Stock
shares capital options
$ $
---------------------------------------
Balance - October 31, 2008 69,994,300 3,465,548 1,414,885
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Net loss - - -
Stock-based compensation (note 5) - - 122,316
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Balance - January 31, 2009 69,994,300 3,465,548 1,537,201
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Balance - October 31, 2009 69,994,300 3,465,548 1,770,093
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Net profit - - -
Stock-based compensation (note 5) - - 49,603
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Balance - January 31, 2010 69,994,300 3,465,548 1,819,696
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Immunotec Inc.
Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
(Deficit)
Contributed Retained
surplus earnings Total
$ $ $
--------------------------------------
Balance - October 31, 2008 11,332,143 1,898,637 18,111,213
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Net loss - (201,205) (201,205)
Stock-based compensation (note 5) - - 122,316
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Balance - January 31, 2009 11,332,143 1,697,432 18,032,324
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Balance - October 31, 2009 11,337,796 (2,646,399) 13,927,038
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Net profit - 209,301 209,301
Stock-based compensation (note 5) - - 49,603
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Balance - January 31, 2010 11,337,796 (2,437,098) 14,185,942
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Immunotec Inc.
Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income
(Unaudited)
Quarter ended January 31 2010 2009
$ $
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REVENUES
Network sales 8,865,644 9,227,007
Other revenue 1,615,426 1,464,502
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10,481,070 10,691,509
VARIABLE COSTS
Cost of goods sold (excluding amortization) 2,022,251 1,729,462
Sales incentives - Network 4,248,329 4,868,649
Other variable costs 900,572 956,889
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Margin before expenses 3,309,918 3,136,509
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Expenses
Administrative 1,459,915 1,593,937
Marketing and Selling 860,602 1,292,308
Quality and Development costs 251,903 246,579
Amortization 287,029 263,828
Financial charges (revenues) - (21,513)
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2,859,449 3,375,139
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Earnings (Loss) from continuing operations before
income taxes 450,469 (238,630)
Income taxes (Recovery)
Current 24,986 59,452
Future 82,893 (96,877)
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Earnings (Loss) from continued operations 342,590 (201,205)
Loss from discontinued operations (133,289) -
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Net earnings (loss) and comprehensive income
(loss) 209,301 (201,205)
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Basic and diluted net earnings (loss) per share
Continuing operations 0.005 (0.003)
Discontinued operations (0.002) -
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Total basic and diluted net earnings (loss) per
share 0.003 (0.003)
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Weighted average number of common shares
outstanding during the period
Basic and diluted 69,994,300 69,994,300
Immunotec Inc.
Consolidated Statement of Cash Flows
(Unaudited)
2010 2009
Quarter ended January 31 $ $
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Operating activities
Net earnings (loss) 209,301 (201,205)
Loss from discontinued operations (133,289) -
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Earnings (Loss) from continuing operations 342,590 (201,205)
Add (deduct) non cash items:
---------------------------------------------
Amortization of property, plant and
equipment 141,146 132,408
Amortization of intangible assets 145,883 131,420
Other receivable 43,442 -
Future income taxes 82,893 (96,877)
Stock-based compensation 49,603 122,316
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Cash received prior to working capital
variation 805,557 88,062
Net change in non-cash working capital (546,950) (356,999)
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Cash (used) received in operating activities 258,607 (268,937)
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Investing activities
Additions to property, plant and equipment (27,689) (35,305)
Additions to intangible assets (15,619) (127,174)
Research and development tax credits - (13,272)
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Cash used in investing activities (43,308) (175,751)
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Net increase (decrease) in cash from
continuing activities 215,299 (444,688)
Net (decrease) in cash from discontinued
activities
Operating activities (133,289) -
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Net increase (decrease) in cash during the
quarter 82,010 (444,688)
Cash at the beginning of the quarter 2,262,821 6,138,454
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Cash at the end of the quarter 2,344,831 5,693,766
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Supplemental information
Income taxes (recovered) paid during the
quarter (7,983) 33,939
"The TSX Venture does not accept responsibility for the adequacy or accuracy of this release."
Contacts:
Immunotec Inc.
Patrick Montpetit
Chief Financial Officer
450-510-4527
