Immunotec Announces 2013 Fourth Quarter and Full Year Financial Results
14 February 2014 - 9:56AM
Marketwired Canada
Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the
wellness industry (the "Company") today released its fourth quarter and full
year results for the period ended 31 October 2013.
The Company, led by its consultants and employees, made significant progress as
shown in its performance against key metrics" said Mr. Charles L. Orr,
Immunotec's Chief Executive Officer. "We are grateful for how all our
stakeholders are collaborating to support Immunotec's vision to become the
company of choice for nutrition and lifestyle improvement".
"The 2013 Financial Results are the strongest since the Company became public in
2007", said Mr. Patrick Montpetit, Immunotec's Chief Financial Officer. "We are
pleased with the trend of financial results over the last eight quarters and the
potential for the quarters ahead".
2013 and Subsequent Year-End Highlights:
-- Total revenues reached $54.8M, an increase of 11.3% as compared to the
previous year.
-- Network sales reached $49.6M, an increase of 12.2% as compared to the
previous year.
-- Selected expenses(1), defined as administrative, marketing and selling,
and quality and development expenses amounted to $11.9M and measured
favourably as a percentage of total revenues by improving to 21.7% as
compared to 24.0% in the previous year.
-- Adjusted EBITDA(1), amounted to $2.9M or 5.2% of total revenues,
compared to $1.9M or 3.8% of total revenues in the previous year.
-- Net profit of $1.4M, compared to $0.1M in the previous year.
-- Total basic and fully diluted profit per common share was $0.02.
-- The Company repurchased a total of 732,000 shares under the Normal
Course Issuer Bid ("NCIB") program.
For the year ended 31 October 2013, Immunotec recorded Network sales of $49.6M
as compared to $44.2M for the previous year, an increase of 12.2% or $5.4M. This
increase was driven by a $4.8M gain over the previous year from the Mexican
operations. Other revenue, which includes revenues of products sold to
licensees, freight and shipping and educational material purchased by our
network of independent consultants, was stable at $5.1M compared to $5.0M in the
previous year.
Sales incentives paid to our Network is the Company's most significant expense
and consists of commissions, performance bonuses and other promotional
incentives provided to qualifying consultants. During the year ended 31 October
2013, the Company incurred $25.8M in Sales incentives paid to our Network for an
average of 51.9% of total Network sales compared to 51.1% of total Network sales
in the previous year.
Selected expenses(1) in year ended 31 October 2013 amounted to $11.9M as
compared to $11.8M for the previous year. As a result of the growth in revenues
in 2013 being achieved without a commensurate growth in these expenses, their
percentage of total revenues improved to 21.7% as compared to 24.0% in the
previous year.
For the year ended 31 October 2013, adjusted EBITDA(1) was $2.9M or 5.2% of
revenues, versus $1.9M or 3.8% for the previous year. Adjusted EBITDA has
improved 53.0% over the previous year while revenue increased 11.3% reflecting a
disciplined approach to expense management.
Net profit for the year ended 31 October 2013 totalled $1.4M, as compared to net
profit of $0.1M for the previous year. This year-over-year improvement is
primarily the result of revenue growth in Mexico. Total basic and fully diluted
profit per common share for the year ended 31 October 2013 was $0.02, compared
to $0.00 in the previous year.
During the year, under the Normal Course Issuer Bid (NCIB) program, the Company
repurchased and cancelled 732,000 common shares for cash consideration of $0.2M,
whereas repurchases made in the corresponding period in the previous year were
not significant.
Subsequent to the year ended 31 October 2013, the Company amended the terms and
conditions of its existing credit facilities with the lender. An additional
tranche of up to approximately $0.25M was added to the existing Committed
Reducing Term Facility, bearing interest at 3.63%, and maturing in September
2016. This amount was received in January 2014. A new Committed Reducing Term
Facility in the amount of $0.5M, bearing interest at 4.34% and maturing in
February 2017 was added. Certain additional collateralization was included in
the agreement, including cross-guarantees from Group companies. The entire $0.5M
amount was drawn in February 2014.
Pursuant to the Immunotec Stock Option Plan, on 17 February 2014, a director
will be granted 25,000 options to acquire up to an aggregate of 25,000 common
shares (the "Shares"). The exercise price of such options will be established at
the closing trading price on that day. These options will vest over a three-year
period, with one-third (1/3) which will vest on each of the first, second and
third anniversaries of the date of the grant. Each option is exercisable, once
vested, for a period of five years from the date of the grant.
Financial Results for the Fourth Quarter of 2013
In the three-month period ended 31 October 2013, total revenue reached $15.5M,
an increase of 13.1% as compared to the same period in the previous year when
total revenues were $13.7M. Of this amount, Network sales comprised $14.2M or
91.6% of total sales, as compared to 89.8% in the same period in the previous
year when Network sales were $12.3M. The fourth quarter increase is due
primarily to sales growth in Mexico and the Western United States.
Selected expenses(1) as a percentage of total revenues were 16.1% in the three-
month period ended 31 October 2013, as compared to 21.2% of total revenues for
the same quarter in the previous year. This improvement in the fourth quarter is
due primarily to improved administrative costs and the recognition of research
and development tax credits in Canada.
The net profit in the three-month period ended 31 October 2013 was $0.4M,
compared to a loss of $0.1M in the same period in the previous year.
About Immunotec Inc.
Immunotec Inc. is dedicated to making a positive difference in people's
lifestyle every day by offering research-driven nutritional products through its
network of Independent Consultants worldwide. Immunotec's strength comes from
its culture that emphasizes teamwork and entrepreneurial leadership by
employees, consultants and research collaborators.
Headquartered with manufacturing facilities near Montreal, Canada, Immunotec
Consultants generate nearly $55.0 Million in annual revenues. Please visit us at
www.immunotec.com for additional information.
The Company files its consolidated financial statements, its management and
discussion analysis report, its press releases and such other required documents
on the SEDAR database at www.sedar.com and on the Company's website at
www.immunotec.com. The common shares of the Company are listed on the TSX
Venture Exchange under the ticker symbol IMM. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS: Certain statements contained in
this news release are forward looking and are subject to numerous risks and
uncertainties, known and unknown. For information identifying known risks and
uncertainties and other important factors that could cause actual results to
differ materially from those anticipated in the forward-looking statements,
please refer to the heading Risks and Uncertainties in Immunotec's most recent
Management's Discussion and Analysis, which can be found at www.sedar.com.
Consequently, actual results may differ materially from the anticipated results
expressed in these forward-looking statements.
Selected Financial Information
The following tables summarize selected financial information from the
Consolidated Statements of Income and the Consolidated Statements of Financial
Position regarding the Company's results of operations and financial position.
Selected Financial Information
For the years ended 31 October
('000s of C$, except for share and per share
data) 2013 2012
----------------------------------------------------------------------------
Revenues 54,771 49,206
Cost of goods sold 9,989 8,858
Sales incentives - Network 25,786 22,616
Other variable costs 4,505 4,260
----------------------------------------------------------------------------
Margin before expenses 14,491 13,472
Expenses 13,456 13,261
----------------------------------------------------------------------------
Operating income 1,035 211
Net finance (income) expenses (64) 85
Income taxes (recovery) (278) 1
----------------------------------------------------------------------------
Net profit 1,377 125
----------------------------------------------------------------------------
Total comprehensive income (loss) 1,293 (2)
Net profit per share:
Basic and diluted 0.02 0.00
Weighted average common shares oustanding:
Basic and diluted 69,600,040 69,985,287
----------------------------------------------------------------------------
As at 31 October 31 October
(000's of C$) 2013 2012
----------------------------------------------------------------------------
Cash (net of bank indebtedness) 4,706 3,774
Total assets 23,495 19,932
Long- term liabilities (including current
portions) 2,021 2,081
Equity 13,071 11,972
----------------------------------------------------------------------------
Geographic distribution of revenues
For the year ended 31 October
('000s of C$) 2013 2012
----------------------------------------------------------------------------
Mexico 24,064 18,268
Canada 13,897 15,055
United States 14,057 13,444
Other countries 2,753 2,439
----------------------------------------------------------------------------
54,771 49,206
----------------------------------------------------------------------------
Selected expenses as a percentage (%) of total revenue
For the year ended 31 October
('000s of C$) 2013 % 2012 %
----------------------------------------------------------------------------
Revenues 54,771 100.0% 49,206 100.0%
Selected expenses
Administrative 6,072 11.1% 5,964 12.1%
Marketing and selling 5,227 9.5% 4,974 10.1%
Quality and development costs 603 1.1% 891 1.8%
----------------------------------------------------------------------------
11,902 21.7% 11,829 24.0%
----------------------------------------------------------------------------
Calculation of adjusted EBITDA
For the year ended 31 October
('000s of C$) 2013 2012
----------------------------------------------------------------------------
Net profit 1,377 125
Add (deduct):
Depreciation and amortization 814 946
Net finance (income) expenses (64) 85
Administrative assessments from a foreign jurisdiction 282 233
Other expenses 740 487
Income tax (recovery) expense (278) 1
----------------------------------------------------------------------------
Adjusted EBITDA 2,871 1,877
----------------------------------------------------------------------------
Percentage of revenues 5.2% 3.8%
----------------------------------------------------------------------------
(1) Adjusted EBITDA and Selected Expenses are a non-GAAP measures providing
additional information on the commercial performance of regular operations.
Adjusted EBITDA corresponds to EBITDA as defined Earnings before Interest Taxes
Depreciation and Amortization less elements that management considers outside of
the normal activities of the Company. Selected Expenses correspond to general
administration charges and fixed overhead charges in the normal activities of
the Company. For more information please refer to the non-GAAP measures section
of the most recent Management Discussion and Analysis filed on www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Patrick Montpetit CPA, CA, CF
Vice-President and Chief Financial Officer,
Immunotec Inc.
(450) 510-4527
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