LONDON, ONTARIO--(Marketwire - March 17, 2010) - Stellar Pharmaceuticals Inc. (OTCBB: SLXCF) ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the year ended December 31, 2009. In this press release, all dollar amounts are expressed in Canadian currency and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).
2009 Highlights
-- Revenues grew by 39.9% -- Gross profit up 28.8% -- Third consecutive year the Company has been cash-flow positive -- 2009 Net Profit up $270,000 over 2008For the twelve-month period ended December 31, 2009, Stellar's total revenues were $3,581,300. This compares to $2,559,400 in the same period in 2008 and was driven by 15.7% and 74.8% growth in Canadian and international sales, respectively. The gross margin percentage decreased to 66.6% in 2009 compared to 73.7% in 2008, largely as a result of the Company's continued strong growth in international sales where its margins are reduced. Net income for 2009, including $163,800 in non-cash stock options and amortization expenses (2008 - $140,200), was $238,900, or $0.01 per share, compared to a loss of $31,100, or ($0.01) per share, in 2008.
Stellar's strong financial performance allowed it to close the year in a solid financial position. As of December 31, 2009, the Company had cash and cash equivalents of $2,325,200. This was up from $2,106,000 at the end of 2008.
Peter Riehl, Stellar's President and Chief Executive Officer commented, "We are very pleased to show a profit for 2009 and a strong growth in our overall business, given the difficult economic environment that persisted for much of the year. Now, as we move forward into 2010, our focus will remain on building the Canadian business and expanding global licensing of Uracyst® and NeoVisc®. At the same time, we will continue to carefully manage our resources while pursuing opportunities for Stellar's future growth.
About Stellar Pharmaceuticals Inc.
Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc® and NeoVisc® Single Dose, for the symptomatic treatment of osteoarthritis; and Uracyst®, its patented technology for the treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Both NeoVisc and Uracyst have their CE Mark certification for the European Community. Stellar also has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer. For more information, please visit the company's website at www.stellarpharma.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.
STELLAR PHARMACEUTICALS INC.
BALANCE SHEETS
(Expressed in Canadian dollars)
December 31
ASSETS 2009 2008
CURRENT
Cash and cash equivalents $ 2,325,212 $ 2,105,966
Accounts receivable, net of allowance of $nil
(2008 - $nil) 293,565 549,055
Inventories 721,061 364,551
Taxes recoverable 1,501 212,445
Loan receivable 15,818 18,369
Prepaids, deposits and sundry receivables 163,698 130,515
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Total current assets 3,520,855 3,380,901
PROPERTY, PLANT AND EQUIPMENT 1,390,296 1,270,257
OTHER ASSETS 114,553 65,495
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Total assets $ 5,025,704 $ 4,716,653
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LIABILITIES
CURRENT
Accounts payable $ 228,367 $ 173,812
Accrued liabilities 175,637 186,201
Deferred revenues 2,890 1,749
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Total current liabilities 406,894 361,762
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CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS' EQUITY
CAPITAL STOCK
AUTHORIZED
Unlimited Non-voting, convertible redeemable
and retractable preferred shares
with no par value
Unlimited Common shares with no par value
ISSUED
23,480,040 Common shares (2008 - 23,702,540) 8,183,638 8,261,403
Nil Treasury shares (2008 - 147,500) - (51,625)
Additional Paid-in capital for
cancelled Common shares - 2,329
Additional Paid-in capital options -
outstanding 89,562 35,965
Additional Paid-in capital options -
expired 724,127 722,372
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8,997,327 8,970,444
DEFICIT (4,378,517) (4,615,553)
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Total shareholders' equity 4,618,810 4,354,891
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Total liabilities and shareholders' equity $ 5,025,704 $ 4,716,653
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STELLAR PHARMACEUTICALS INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in Canadian dollars)
FOR THE YEARS ENDED DECEMBER 31
2009 2008
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PRODUCT SALES $ 3,000,062 $ 2,118,282
ROYALTIES & LICENSING REVENUE 581,230 441,130
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TOTAL REVENUE FROM ALL SOURCES 3,581,292 2,559,412
COST OF PRODUCTS SOLD 1,001,871 556,401
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GROSS PROFIT 2,579,421 2,003,011
EXPENSES
Selling, general and administrative 2,278,530 2,010,383
Research and development 18,107 62,727
Amortization of assets (non-manufacturing
property, plant and equipment) 55,822 54,384
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2,352,459 2,127,494
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INCOME (LOSS) FROM OPERATIONS 226,962 (124,483)
INTEREST AND OTHER INCOME 11,962 83,741
GAIN ON DISPOSAL OF EQUIPMENT - 9,676
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NET INCOME (LOSS) AND COMPREHENSIIVE INCOME
(LOSS) FOR THE YEAR (before tax) 238,924 (31,066)
INCOME TAXES - -
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NET INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS) $ 238,924 $ (31,066)
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EARNINGS (LOSS) PER SHARE - Basic $ 0.01 $ (0.00)
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- Diluted $ 0.01 $ -
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WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING - Basic 23,498,889 23,801,450
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- Diluted 23,599,170 23,801,450
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STELLAR PHARMACEUTICALS INC.
STATEMENTS OF CASH FLOWS
(Expressed in Canadian dollars)
FOR THE YEARS ENDED DECEMBER 31
2009 2008
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CASH FLOWS USED IN OPERATING ACTIVITIES
Net income (loss) $ 238,924 $ (31,066)
Items not affecting cash
Amortization 108,492 126,556
Gain on disposal of equipment - (9,676)
Write-down of property, plant & equipment - 2,656
Unrealized foreign exchange (gain) loss 24,203 (17,945)
Issuance of equity instruments for services
rendered 55,352 13,618
Change in non-cash operating assets and
liabilities 26,143 (562,256)
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CASH FLOWS USED IN OPERATING ACTIVITIES 453,114 (478,113)
CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Additions to property, plant and equipment (155,630) (539,511)
Increase in other assets (26,230) (11,420)
Proceeds from sale of equipment - 10,000
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CASH FLOWS USED IN INVESTING ACTIVITIES (181,860) (540,931)
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CASH FLOWS USED IN FINANCING ACTIVITIES
Repurchase of common shares for cash (30,357) (100,514)
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CASH FLOWS USED IN FINANCING ACTIVITIES (30,357) (100,514)
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EFFECT OF EXCHANGE RATES ON CASH HELD IN
FOREIGN CURRENCY (21,650) 14,398
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CHANGE IN CASH AND CASH EQUIVALENTS 219,246 (1,105,160)
CASH AND CASH EQUIVALENTS, beginning of year 2,105,966 3,211,126
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CASH AND CASH EQUIVALENTS, end of year $ 2,325,212 $ 2,105,966
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Contacts:
Company Contact: Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(519) 434-1540
corpinfo@stellarpharma.com
Stellar Pharmaceuticals Inc.
Arnold Tenney
Chairman
(416) 587-3200
Investor Contact: Kilmer Lucas Inc.
Stephen Kilmer
President
(905) 690-2400 ext. 21
stephen@kilmerlucas.com
Media Contact: Kilmer Lucas Inc.
Leonard Zehr
Managing Director
(905) 690-2400 ext. 41
len@kilmerlucas.com
