MONTRÉAL, Nov. 08, 2018 (GLOBE NEWSWIRE) -- IBEX Technologies Inc. (“IBEX” or the “Company”) (TSX Venture: IBT) today reported its financial results for the fiscal year ended July 31, 2018.

“While EBITDA for the year was positive, and the balance sheet improved, we were disappointed with the revenue results of the Company as compared to the previous fiscal year”, said Paul Baehr, IBEX President & CEO. “This disappointment traced to significantly reduced purchases from one key customer who had purchased inventory in Fiscal 2017 which proved to be in excess of their needs. On the positive side our new fermentation facility in Montreal is up and running and should produce some production economies towards the end of calendar 2019”.

Note: All figures are in Canadian dollars unless otherwise stated. The Company’s audited consolidated financial statements for the year ended July 31, 2018 and the accompanying notes and the related management’s discussion and analysis can be found on the Company’s website at www.ibex.ca or under the Company’s profile on SEDAR at www.sedar.com.

FINANCIAL RESULTS FOR THE YEAR

Revenues for the year ended July 31, 2018 totaled $4,729,599 compared to $5,326,721 in the prior year. The revenues decrease traces mainly to a reduction in purchases by one customer who built up inventory in Fiscal 2017 in advance of the launch of one of their new products and in Fiscal 2018 found themselves with excess inventory.

As a consequence of the decrease in revenues, partially offset by a small decrease in expenses, the Company recorded EBITDA of $264,927 vs. $825,321 in same period year ago.

Net loss before income taxes was $33,987 (vs. net earnings of $515,663 on a comparable basis in Fiscal 2017) tracing to a decrease in revenues of $597,122 partially offset by the decrease in expenses of $47,472.

Net loss after income taxes for the year ended July 31, 2018 was $95,189 compared to net earnings of $2,981,839 in the prior fiscal year. The prior fiscal year contained a one-time recognition of deferred income tax assets of $2,443,327.

FINANCIAL RESULTS FOR THE FOURTH QUARTER OF FISCAL 2018

Revenues for the quarter ended July 31, 2018 of $1,264,500 were down $194,088 as compared to $1,458,588 in the same period of the prior year. The decrease in revenues traces mainly to a reduction in purchases by one customer for reasons alluded to above.

Despite the reduction in revenues, the Company recorded EBITDA of $112,066 vs. ($34,930) in the same period year ago due to the absence of some non-recurring expenses.

Net earnings before income taxes were $41,944 (vs. net loss of $107,361 on a comparable basis in Fiscal 2017) tracing to a decrease in expenses of $343,393 partially offset by the decrease in revenues of $194,088.

The Company recorded net loss after income taxes of $19,258 compared to net earnings of $2,358,815 for the same period a year ago. As mentioned above, the decrease is mainly related to the one-time recognition of deferred income tax assets of $2,443,327 in Fiscal 2017.

It should be noted that Earnings before interest, tax, depreciation & amortization (“EBITDA”) is not a performance measure defined by IFRS, but we, as well as investors and analysts, consider that this performance measure facilitates the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program. Note that our definition of this measure may differ from the ones used by other public corporations:

EBITDA for the three months ended  
  July 31,
2018
  July 31,
2017
 
Net (loss) earnings($19,258)$2,358,815 
Depreciation of property, plant, equipment and intangible assets$68,288 $65,144 
Interest – Net$1,834 $7,287 
Income tax expense (recovery)$61,202 ($2,466,176)
Earnings (loss) before interest, tax, depreciation and amortization$112,066 ($34,930)


Financial Summary for the years ended
  July 31,
2018
  July 31,
2017
 
Revenues$4,729,599 $5,326,721 
Earnings before interest, tax, depreciation & amortization (EBITDA)$264,927 $825,321 
Depreciation $284,376 $273,613 
Net (loss) earnings($95,189)$2,981,839 
(Loss) earnings per share($0.00)$0.12 

 
  
   
EBITDA for the years ended  
  July 31,
2018
  July 31,
2017
 
Net (loss) earnings($95,189)$2,981,839 
Depreciation of property, plant, equipment and intangible assets$284,376 $273,613 
Interest – Net$14,538 $36,045 
 Income tax expense (recovery)$61,202 ($2,466,176)
Earnings before interest, tax, depreciation and amortization$264,927 $825,321 

Cash and cash equivalents increased by $135,745 during the year ended July 31, 2018 as compared to the year ended July 31, 2017. Net working capital increased by $270,401 during the year ended July 31, 2018 as compared to the year ended July 31, 2017.

                                     

Balance Sheet Summary as at
 July 31,
2018
July 31,
2017
Cash and cash equivalents$3,140,372$3,004,627
Net working capital$3,619,456$3,349,055
Outstanding shares at report date (common shares) 24,773,244 24,703,244

LOOKING FORWARD

As always, future results for the Company are difficult to predict since the Company’s customers have wide swings in their purchase patterns. Based on what we see at the moment, management expects that revenues and profitability in Fiscal 2019 will be lower than the current year.

That notwithstanding, management believes that the Company has sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.

ABOUT IBEX

IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiaries IBEX Pharmaceuticals Inc. (Montréal, QC) and Bio-Research Products, Inc. (North Liberty, IA). IBEX Pharmaceuticals also manufactures and markets a series of arthritis assays which are widely used in osteoarthritis research.

For more information, please visit the Company’s website at www.ibex.ca.

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

Safe Harbor Statement

All of the statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, as they are based on the current assessment or expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which IBEX does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. IBEX disclaims any intention or obligation to update these statements, except if required by applicable laws.

In addition to the risk factors identified above, IBEX is, and has been in the past, heavily reliant on three products and five customers, the loss of any of which could have a material effect on its profitability.

Contact:

Paul Baehr
President & CEO
IBEX Technologies Inc.
514-344-4004 x 143