Epicore BioNetworks Inc. Reports Quarter One Fiscal Year 2013
for the period ended 30 September
2012, in US dollars
CALGARY, Nov. 19, 2012 /PRNewswire/ - Gross profit grew 6%
in quarter one (Q1) and revenue at $1.1
million was only 2% lower than last year's record Q1. Demand
for shrimp and shrimp prices have remained high, which increase the
demand for Epicore's productivity enhancing products. However,
Early Mortality Syndrome in Asia
has caused farm closures that have hurt Epicore sales throughout
2012. The severe US Midwest drought drove up spot prices of
agricultural commodities and reduced availability. This event
caused a shortage of critical raw materials for Epicore's dry feed
products and produced finished feed stock-outs. A significant
volume of orders were missed in Q1 that will be filled in Q2.
Epicore continued a major initiative to increase its science
resources, which will position the Company for significant future
growth and increase the reliability of its manufacturing
operations. Some Q1 highlights were:
- Decrease in revenue of 2% over last year's record Q1
- Increase in gross profit of 6% over Q1 last year
- Increase in operating expenses of 14% over Q1 last year
- Decrease in net income of 73% versus last year's Q1
- Decrease in EBITDA of 42% versus last year's Q1
- Increase in cash of $0.2 million
from prior quarter
- Achieved basic and diluted earnings per share of $0.001, down from $0.003 in prior year Q1.
- Increased shareholders' equity 0.5% in the quarter to
$4.9 million.
Epicore gross margin (gross profit as a
percentage of sales) increased due to price increases and to sales
mix Operational expenses increased by 14% due to inflation,
higher marketing travel expense, quality initiative expense and
outside research expense. Quarter one fiscal 2012 results
include a US federal income tax expense of $0.04 million, along with $0.02 million for New
Jersey and Ecuadorian taxes. Net income of
$0.02 million was lower than fiscal
2011 because of higher operating expenses, as the following results
show (rounded to thousands in US dollars):
|
For the Quarter Ended
September 30 |
|
2012 |
2011 |
Sales
|
1,093,000 |
1,114,000 |
Gross
Profit |
665,000 |
628,000 |
Operating Expenses
|
581,000 |
509,000 |
Earnings Before
Tax
|
75,000 |
126,000 |
Income Tax
Expense
|
58,000 |
62,000 |
Net Income
|
17,000 |
64,000 |
EBITDA |
81,000 |
139,000 |
Cash at the end of September was $1.8 million, an increase of 12% over prior year
quarter four. With these funds, expected sales revenue growth
and continued relatively low operating costs, management expects
there will be sufficient cash to meet the fiscal year's financial
requirements, to fund expansion of aquaculture and environmental
remediation marketing efforts and to pursue new strategies for
enhancing shareholder value. In support of its growth
strategy, the Company anticipates additional expenditure during
fiscal 2013 in property, plant and equipment, through the addition
of leased capital equipment and enhancements to its production
facility in New Jersey, and in
product development through its ongoing R&D programs.
This is expected to be financed by a combination of the Company's
cash reserves, continued positive earnings and third-party
financing.
The financial statements of the company have
been prepared in accordance with International Financial Reporting
Standards. Epicore BioNetworks Inc. is a public corporation
with a registered office in Calgary,
Alberta, Canada and with shares listed on the TSX Venture
Exchange (symbol EBN). [Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.]
This press release contains forward-looking
statements that involve significant risks and uncertainties.
The actual results, performance or achievements of the company
might differ materially from the results, performance or
achievements of the company expressed or implied by such
forward-looking statements. Such forward-looking statements
include, without limitation, those regarding the future growth of
the Company, expected future sales volumes, expected improvements
in the quality and reliability of manufacturing operations,
acceleration of the Company's penetration into new business areas,
the development plans of the company and expectations respecting
availability of financing for such development, the expected timing
and results of such development and the expectation by management
that there will be sufficient cash to meet the fiscal year's
financial requirements. We can provide no assurance that such
development will proceed as currently anticipated, that the
expected timing or results of such development will be realized or
that the company will be able to generate sufficient cash to meet
its obligations. We are subject to various risks, including
the uncertainties of product development, markets for our products
and regulatory review, our need for additional capital to fund our
operations, our reliance on collaborative partners, our history of
losses, and other risks inherent in the biotechnology
industry.
SOURCE Epicore BioNetworks Inc.