MONTREAL, Nov. 20, 2017 (GLOBE NEWSWIRE) -- IBEX Technologies Inc. (“IBEX” or the “Company”) (TSX-V:IBT) today reported its financial results for the fiscal year ended July 31, 2017.
“I am pleased to report that Fiscal 2017 EBITDA increased to $825,321 from $478,727 in Fiscal 2016,” said Paul Baehr, IBEX President and CEO. “Cash at year end increased to $3,004,627 from $2,899,622 the previous year, notwithstanding the expenditure of $716,725 related to the construction of our new production facility for heparinase I in Montreal”.
“Fiscal 2017 was an exceptional year, owing to unusual sales to one customer which was building inventory in advance of a new product launch. We expect to see reduced net earnings in Fiscal 2018 as sales to this customer decline to a normal steady-state post-introductory mode”.
Note: All figures are in Canadian dollars unless otherwise stated. The Company’s audited consolidated financial statements for the year ended July 31, 2017 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, 2017 totaled $5,326,721 compared to $4,113,694 in the prior year. The revenue increase traces mainly to a substantial increase in sales to one customer which was building inventory in advance of the introduction of a new product based on one of IBEX’s enzymes.
The Company reported net earnings for the year ended July 31, 2017 of $2,981,839 compared to net earnings of $100,560 in the prior Fiscal year. This unusual increase is mainly related to the one-time recognition of deferred income tax assets of $2,443,327. Absent this recovery of income taxes, net earnings before income taxes were $515,663 (vs. $98,063 on a comparable basis in Fiscal 2016) representing an increase in sales of $1,213,027 partially offset by the increase in expenses of $795,427.
FINANCIAL RESULTS FOR THE FOURTH QUARTER OF FISCAL 2017
Revenues for the quarter ended July 31, 2017 increased by $596,785 to $1,458,588 compared to $861,803 in the same period of the prior year. As described above, the revenue increase traces mainly to the introduction of a new product by one of our customers, which contains an IBEX enzyme.
The Company recorded net earnings of $2,358,815 compared to net earnings of $5,584 for the same period a year ago. As mentioned above, the positive increase can be attributed to the deferred income tax assets of $2,443,327 and the increase in sales of $596,785 partially offset by the increase in expenses of $707,233.
| Financial Summary for the years ended | ||||
| July 31, 2017 | July 31, 2016 | |||
| Revenues | $ | 5,326,721 | $ | 4,113,694 |
| Earnings before interest, tax, depreciation & amortization (EBITDA) | $ | 825,321 | $ | 478,727 |
| Depreciation | $ | 273,613 | $ | 335,281 |
| Net earnings | $ | 2,981,839 | $ | 100,560 |
| Earnings per share | $ | 0.12 | $ | 0.00 |
Cash and cash equivalents increased by $105,005 during the year ended July 31, 2017 as compared to the year ended July 31, 2016. Net working capital decreased by $167,134 during the year ended July 31, 2017 as compared to the year ended July 31, 2016.
| Balance Sheet Summary as at | ||||
| July 31, 2017 | July 31, 2016 | |||
| Cash and cash equivalents | $ | 3,004,627 | $ | 2,899,622 |
| Net working capital | $ | 3,349,055 | $ | 3,516,189 |
| Outstanding shares at report date (common shares) | 24,703,244 | 24,703,244 | ||
LOOKING FORWARD
As always, the future of the Company is difficult to predict as the Company’s customers have wide swings in their purchase patterns.
Fiscal 2017 results were aided by above-normal sales to one customer which was building inventory in advance of the introduction of a new product based on one of IBEX’s enzymes.
In Fiscal 2018 we expect to see lower sales than in Fiscal 2017 as this customer moves to a sustaining level of purchases. We also anticipate a weaker US dollar in Fiscal 2018 which will have a negative impact on profitability. These two factors point to lower net earnings in Fiscal 2018. However, as we do not expect any major capital expenditures in Fiscal 2018, we expect to modestly improve our year-end cash-on-hand position.
The Company also continues to work on a number of projects with its key customers, some of which may result in additional revenues in Fiscal 2018 and beyond. However, we cannot give any assurances that any of these projects will come to fruition and produce revenues.
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. (Montreal, 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