LONDON, ONTARIO--(Marketwire - November 10, 2009) - This release is to correct an inadvertent error in the press release issued on November 6, 2009 in which the Company's results for the quarter ended September 30, 2009, reported total revenues to only include product revenues and not total operating revenues from all sources. No other changes to the information contained in such report have been made. The corrected release follows:
Stellar Pharmaceuticals Inc. ("Stellar" or "the Company") (OTCBB: SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced its financial results for the third quarter ended September 30, 2009. In this press release, unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been rounded to nearest hundred.
Q3-2009 Highlights
- Revenues grew 71.9% over the same three-month period in 2008
- Gross profit grew by 41.7% for the quarter
- Net income for the quarter grew by 42.9%
- Fourth consecutive quarter the Company has generated a profit
Total operating revenues from all sources increased to $826,900 in Q3-2009 from $481,100 in Q3-2008. This was driven by 7.9% and 303.1% growth in Canadian and International sales, respectively. The gross margin percentage decreased to 66.0% in Q3-2009 compared to 77.7% in Q3-2008 largely as a result of the Company's strong growth in international sales where Stellar's margins are reduced. Stellar's Q3-2009 net profit was $25,900 compared to a net loss of $60,300 in Q3-2008.
For the nine-month period ended September 30, 2009, Stellar's total operating revenues from all sources were $2,673,700. This was up 61.4% from $1,656,400 for the same period in 2008 and was driven by 16.6% and 169.9% growth in Canadian and International sales, respectively. Net income for the 2009 nine-month period was $215,800, or $0.01 per share, compared to a loss of $227,100, or ($0.01) per share, in the same 2008 period.
Peter Riehl, Stellar's President and Chief Executive Officer, commented, "Despite the difficult economic environment, we entered 2009 confident that our focus on building Canadian sales and expanding global partnerships for Uracyst® and NeoVisc® would generate improved operating performance throughout the year. These third quarter financial results demonstrate the success of that focus. We continue to make considerable progress on all fronts. The shift in awareness and acceptance of our two lead products by scientists and clinicians is growing, sales traction in Canada continues to build, and we are increasingly benefiting from the aggressive expansion of our global out-licensing program. I am pleased to report, that thus far in the fourth quarter, we are seeing these positive trends continue."
About Stellar Pharmaceuticals Inc.
Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst®, its patented technology for treatment of interstitial cystitis/painful bladder syndrome, an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreement for the distribution and sale of NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.
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.
CONDENSED BALANCE SHEETS
(Expressed in Canadian Dollars)
As at As at
September 30, December 31,
2009 2008
-------------- -------------
ASSETS
CURRENT
Cash and cash equivalents $ 1,913,194 $ 2,105,966
Accounts receivable, net of allowance $nil
(2008 - $nil) 376,683 549,055
Inventories 582,036 364,551
Taxes recoverable 216,147 212,445
Loan receivable 18,369 18,369
Prepaids, deposits and sundry receivables 227,411 130,515
-------------- -------------
3,333,840 3,380,901
PROPERTY, PLANT AND EQUIPMENT 1,315,236 1,270,257
OTHER ASSETS 90,711 65,495
-------------- -------------
$ 4,739,787 $ 4,716,653
-------------- -------------
-------------- -------------
LIABILITIES
CURRENT
Accounts payable $ 133,960 $ 173,812
Accrued liabilities 56,875 186,201
Deferred revenues 8,897 1,749
-------------- -------------
199,732 361,762
-------------- -------------
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
23,495,040 Common shares (2008 -
23,702,540) 8,188,486 8,261,403
(15,000) - Treasury shares (2008 -
(147,500)) (9,293) (51,625)
Additional paid-in capital for cancelled
common shares 2,329 2,329
Additional paid-in capital options
- outstanding 34,209 35,965
- expired 724,128 722,372
-------------- -------------
8,939,859 8,970,444
DEFICIT (4,399,804) (4,615,553)
-------------- -------------
4,540,055 4,354,891
-------------- -------------
$ 4,739,787 $ 4,716,653
-------------- -------------
-------------- -------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS AND DEFICIT
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period For the Nine Month Period
Ended September 30 Ended September 30
2009 2008 2009 2008
------------ ------------ ------------ ------------
PRODUCT SALES $ 811,684 $ 477,289 $ 2,270,229 $ 1,452,280
COST OF PRODUCTS SOLD 275,710 106,473 763,744 366,804
------------ ------------ ------------ ------------
MARGIN ON PRODUCTS SOLD 535,974 370,816 1,506,485 1,085,476
ROYALTY AND LICENSING
REVENUES 15,233 3,780 403,498 204,136
------------ ------------ ------------ ------------
GROSS PROFIT 551,207 388,910 1,909,983 1,289,612
------------ ------------ ------------ ------------
EXPENSES
Selling, general and
administrative 505,391 453,362 1,646,388 1,496,246
Research and development 9,009 (4,805) 16,420 53,437
Amortization
(non-manufacturing
property, plant and
equipment) 14,488 14,625 41,888 43,769
------------ ------------ ------------ ------------
528,888 463,182 1,704,696 1,593,452
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
OPERATIONS 22,319 (88,586) 205,287 (303,840)
INTEREST AND OTHER
INCOME 3,559 18,627 10,462 67,050
GAIN ON DISPOSAL OF
EQUIPMENT - 9,676 - 9,676
------------ ------------ ------------ ------------
NET INCOME (LOSS) AND
COMPREHENSIVE INCOME
(LOSS) FOR THE
PERIOD BEFORE
INCOME TAXES 25,878 (60,283) 215,749 (227,114)
Current income tax
expense (10,100) - (18,200) -
Future income tax
recovery 10,100 - 18,200 -
DEFICIT, beginning of
period (4,425,682) (4,746,385) (4,615,553) (4,576,621)
Effect of repurchase
and cancellation of
Common Shares - (1,876) - (4,809)
------------ ------------ ------------ ------------
DEFICIT, end of period $ (4,399,804) $ (4,808,54)$ (4,399,804)$ (4,808,544)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
EARNINGS (LOSS) PER
SHARE - basic and
diluted $ 0.00 $ (0.00) $ 0.01 $ (0.01)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING 23,493,736 23,681,779 23,505,241 23,752,790
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
STELLAR PHARMACEUTICALS INC.
CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Expressed in Canadian Dollars)
(Unaudited)
For the Three Month Period For the Nine Month Period
Ended September 30 Ended September 30
2009 2008 2009 2008
------------- ------------- ------------- -----------
CASH FLOWS FROM (USED
IN) OPERATING
ACTIVITIES -
Net income (loss) for
the period $ 25,878 $ (60,283) $ 215,749 $ (227,114)
Items not affecting
cash
Amortization 15,769 28,939 83,885 89,367
Unrealized foreign
exchange (gain)
loss 5,247 (8,042) 18,353 (14,399)
Gain on sale of
asset - (9,676) - (9,676)
Issuance of equity
instruments for
services rendered - 3,603 - 16,730
Change in non-cash
operating asset and
liabilities 65,698 35,832 (322,815) (65,808)
------------- ------------- ------------- -----------
CASH FLOWS USED IN
OPERATING ACTIVITIES 112,593 (9,627) (4,827) (210,900)
------------- ------------- ------------- -----------
CASH FLOWS FROM (USED
IN) INVESTING
ACTIVITIES -
Additions to
property, plant and
equipment (66,899) (152,373) (112,776) (354,008)
Increase to other
assets - (5,357) (26,231) (11,420)
Sale of equipment - 10,000 - 10,000
------------- ------------- ------------- -----------
CASH FLOWS USED IN
INVESTING ACTIVITIES (66,899) (147,730) (139,007) (355,428)
------------- ------------- ------------- -----------
CASH FLOWS USED IN
FINANCING
ACTIVITIES -
Repurchase of common
shares for cash (9,293) (20,729) (30,584) (64,384)
------------- ------------- ------------- -----------
CASH FLOWS USED IN
FINANCING ACTIVITIES (9,293) (20,729) (30,584) (64,384)
------------- ------------- ------------- -----------
EFFECT OF EXCHANGE
RATES ON CASH HELD
IN FOREIGN
CURRENCY (5,247) 8,041 (18,354) 14,397
------------- ------------- ------------- -----------
CHANGE IN CASH AND
CASH EQUIVALENTS 31,154 (170,045) (192,772) (616,315)
CASH AND CASH
EQUIVALENTS,
Beginning of period 1,882,040 2,764,856 2,105,966 3,211,126
------------- ------------- ------------- -----------
CASH AND CASH
EQUIVALENTS,
End of period $ 1,913,194 $ 2,594,811 $ 1,913,194 $ 2,594,811
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
Contacts:
Stellar Pharmaceuticals Inc.
Peter Riehl
President & CEO
(800) 639-0643 or (519) 434-1540
Stellar Pharmaceuticals Inc.
Arnold Tenney
(705) 445-9505
Kilmer Lucas Inc.
Stephen Kilmer
905-690-2400 ext. 21
Email: stephen@kilmerlucas.com
