Immunotec Reports Second Quarter Results
"Record Quarterly Revenues"
- Revenues increased by 28.1% over last year
- Adjusted EBITDA(1) amounted to 7.8% of revenues
- Sponsoring of new customers and consultants increased by 34.6% over last year
/EINPresswire.com/ -- VAUDREUIL-DORION, QUEBEC -- (Marketwired) -- 06/16/16 -- Immunotec Inc. (TSX VENTURE: IMM), a direct-to-consumer company and leader in the nutritional industry (the "Company" or "Immunotec"), today announced its second quarter financial results for Fiscal 2016. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.
"We are pleased to report that total revenues for the quarter exceeded $25.0M for the first time in Company history. This performance is the result of superior teamwork and dedication on the part of our field associates, employees and valued suppliers", said Charles L. Orr, Chief Executive Officer of Immunotec.
PERFORMANCE HIGHLIGHTS
Network sales for the three- and six-month periods ended April 30, 2016 reached $23.4M and $44.5M compared to $18.2M and $34.5M for the corresponding periods of the previous year, an increase of $5.2M or 28.9% and $10.0M or 29.2%. Excluding currency fluctuations, the Company recorded an increase in network sales in Mexico of 38.6% and 33.0%, in the United States of 27.0% and 28.9%, and, in Canada of 11.1% and 6.9% for the three- and six-month periods ended April 30, 2016 relative to the corresponding periods of the previous year.
"The increase of our Sponsoring numbers are above 30% in all of our key markets, which indicates a strong momentum for the quarters ahead" said Patrick Montpetit, Chief Financial Officer of Immunotec. "We are confident that we are on track to achieve $100.0M in revenues for fiscal 2016".
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Revenues and sponsoring (1)
For the periods
ended April 30, Three-months Six-months
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('000s of C$) 2016 2015 Variation 2016 2015 Variation
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Network sales 23,418 18,170 28.9% 44,548 34,475 29.2%
Other revenue 2,168 1,798 20.6% 3,982 3,412 16.7%
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25,586 19,968 28.1% 48,530 37,887 28.1%
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Network sales in
key markets in
local currency 2016 2015 Variation 2016 2015 Variation
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Mexico ('000s of
Mexican pesos) 159,142 114,834 38.6% 294,441 221,362 33.0%
United States
('000s of US$) 6,014 4,735 27.0% 11,402 8,847 28.9%
Canada ('000s of
C$) 3,036 2,733 11.1% 5,867 5,489 6.9%
Sponsoring(1) of
new customers and
consultants in
key markets
(# of people) 2016 2015 Variation 2016 2015 Variation
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Mexico 17,376 12,847 35.3% 31,453 23,526 33.7%
United States 5,842 4,384 33.3% 10,139 7,608 33.3%
Canada 2,041 1,534 33.1% 3,998 3,023 32.3%
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25,259 18,765 34.6% 45,590 34,157 33.5%
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Margins before expenses, as a percentage of revenues, remained stable at 76.5% for the three- month period ended April 30, 2016 compared to 76.4% for the same period in the prior year. Margins before expenses decreased slightly from 76.6% in the six-month period ended April 30, 2015 to 75.6% for the six-month period ended April 30, 2016. The small decrease is due to a combination of the product mix sold; negative fluctuations in exchange rates and increases in raw materials prices from suppliers.
Adjusted EBITDA(1) for the three- and six-month periods ended April 30, 2016 amounted to $2.0M or 7.8% of revenues and $3.2M or 6.5% of revenues compared to $1.4M or 7.0% of revenues and $2.5M or 6.6% of revenues for the same periods of the previous year.
Net profit for the three- and six-month periods ended April 30, 2016 was $0.6M and $0.9M compared to $0.3M and $1.2M for the corresponding periods of the previous year. Total basic and fully diluted net profit per common share for the three- and six-month periods ended April 30, 2016 was $0.008 and $0.013 compared to $0.005 and $0.017 for the corresponding periods of the previous year.
(1)Refer to the "NON-GAAP MEASURES" section. The definition of Sponsoring
and the Adjusted EBITDA reconciliation to Net profit is shown below.
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Results of operations
For the periods ended April
30, Three-months Six-months
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('000s of C$, except for
share and per share data) 2016 2015 2016 2015
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Revenues 25,586 19,968 48,530 37,887
Cost of sales 6,002 4,717 11,853 8,869
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Margin before expenses 19,584 15,251 36,677 29,018
Expenses 17,798 14,031 34,333 26,832
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Operating income 1,786 1,220 2,344 2,186
Net finance expenses 773 793 778 451
Income taxes 445 104 660 560
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Net profit 568 323 906 1,175
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Total comprehensive income 402 891 718 1,340
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Total basic and diluted net
profit per common share 0.008 0.005 0.013 0.017
Weighted average number of
common shares oustanding
during the period
Basic 69,751,103 69,097,995 69,516,943 69,015,556
Diluted 69,909,755 69,101,596 69,534,198 69,019,133
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Calculation of adjusted EBITDA 1
For the periods ended April
30, Three-months Six-months
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('000s of C$) 2016 2015 2016 2015
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Net profit 568 324 906 1,175
Add:
Depreciation and
amortization 166 168 346 322
Net finance expenses 773 793 778 451
Other expenses 38 6 484 9
Income taxes 445 104 660 560
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Adjusted EBITDA 1,990 1,395 3,174 2,517
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as a % of Revenues 7.8% 7.0% 6.5% 6.6%
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About Immunotec Inc.
Immunotec is a Canadian-based company that develops, manufactures, markets and sells research-driven nutritional products through direct-to-consumer sales channels in Canada, the U.S., Mexico, the Dominican Republic, the United Kingdom and Ireland. The Company offers an extensive family of nutritional, skin care and wellness products targeting health, weight management, energy and physical performance.
Please visit us at www.immunotec.com for additional information.
The Company files its continuous disclosure documents, inclusive of its year end results, 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.
This Press Release should be read in conjunction with the Company's most recent unaudited interim condensed consolidated financial statements and the Management discussion and analysis which can be found at www.sedar.com
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, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
NON-GAAP MEASURES: This Press Release contains non-GAAP measures which do not have a standardized meaning under International Financial Reporting Standards ("IFRS"). We use earnings before interest, taxes, depreciation and amortization ("EBITDA"), as this measure allows management to evaluate the operational performance of the Company. EBITDA does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA should not be considered an alternative to profit (loss) in measuring the Company's performance, nor should it be used as an exclusive measure of cash flow. This measure does not represent the funds available for the repayment of debt, the payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as substitutes for other measures of performance calculated according to IFRS. The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company's definition of these metrics may differ from those of other businesses.
Adjusted EBITDA and Sponsoring
-- Adjusted EBITDA corresponds to EBITDA as defined above less elements
that management considers to be outside the scope of its normal
activities and therefore not reflective of how management views
performance measurement. Management believes that this metric is
necessary in order to isolate commercial operations from items which it
believes merit separate examination when assessing performance.
Consistent improvement in adjusted EBITDA is one of management's primary
objectives.
-- Sponsoring means the activity in which independent Consultants sponsor
new Consultants and Customers; the sponsored Consultants themselves may
sponsor new Consultants or Customers and so forth. This is referred to
as a Consultant's "organization" or "downline". The Consultants are
compensated for sales generated by their organization, based on their
qualification and rank. Successful Independent Consultants assume the
responsibility to train, support and communicate with their downline.
Contacts:
Immunotec Inc.
Patrick Montpetit, CPA, CA, CF
Vice-President and Chief Financial Officer
(450) 510-4527
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