“Our results for this reporting period, while lower than year ago, were above expectations since many of our customers were drawing down prior year’s inventories faster than we forecasted. While revenues were down 6% in the period, they were up 31% from the same period in fiscal 2021. We now expect that revenues, while lower than the exceptional 2022 fiscal year, to be significantly higher than fiscal year 2021,” said
Note: All figures are in Canadian dollars unless otherwise stated. The Company’s audited consolidated financial statements for the year ended
FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 2023
Revenues for the quarter ended
Expenses totaled
Net earnings totaled
The Company recorded EBITDA of
It should be noted that “EBITDA” (Earnings Before Interest, Tax, Depreciation & Amortization) 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 | ||||||
2023 | 2022 | |||||
Net earnings | $ | 100,033 | $ | 405,469 | ||
Depreciation of property, plant, equipment and intangible assets | $ | 36,825 | $ | 35,932 | ||
Depreciation of right-of-use assets | $ | 65,769 | $ | 52,746 | ||
Interest – Net | $ | (85,380 | ) | $ | 1,636 | |
Income tax expense | - | - | ||||
Earnings before interest, tax, depreciation and amortization | $ | 117,247 | $ | 495,783 | ||
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
Revenues for the six months ended
Fiscal 2022 sales were influenced by several major customers building surplus inventory due to concerns about supply chain interruptions. It appears that our customers are working off their inventory faster than we expected however, which points to the underlying growth of the market segments in which we compete.
Total Expenses at
Net earnings totaled
The Company recorded EBITDA of
Financial Summary for the six months ended | ||||||
2023 | 2022 | |||||
Revenues | $ | 3,473,641 | $ | 3,613,239 | ||
Earnings before interest, tax, depreciation & amortization (EBITDA) | $ | 858,481 | $ | 1,258,995 | ||
Depreciation of property, plant, equipment and intangible assets | $ | 70,687 | $ | 79,313 | ||
Depreciation of right-of-use assets | $ | 131,502 | $ | 105,039 | ||
Net earnings | $ | 778,540 | $ | 1,070,029 | ||
Earnings per share | $ | 0.03 | $ | 0.04 | ||
EBITDA for the six months ended | ||||||
2023 | 2022 | |||||
Net earnings | $ | 778,540 | $ | 1,070,029 | ||
Depreciation of property, plant, equipment and intangible assets | $ | 70,687 | $ | 79,313 | ||
Depreciation of right-of-use assets | $ | 131,502 | $ | 105,039 | ||
Interest - Net | $ | (122,248 | ) | $ | 4,614 | |
Income tax expense | - | - | ||||
Earnings before interest, taxes, depreciation and amortization | $ | 858,481 | $ | 1,258,995 | ||
The Company’s substantial cash balance of
Net working capital increased by
Balance Sheet Summary as at | ||||||
2023 | 2022 | |||||
Cash and cash equivalents | $ | 7,489,644 | $ | 7,641,052 | ||
Net working capital | $ | 7,512,075 | $ | 7,274,333 | ||
Outstanding shares at report date (common shares) | 24,784,244 | 24,784,244 | ||||
LOOKING FORWARD
As always, the future financial results of the Company are difficult to predict as the Company’s customers have significant variations in their purchasing patterns, as has been illustrated in the quarterly results over the past few years. The impact of COVID-19 added further variability.
Considering the above, customer drawdown of their accumulated inventory has been stronger than we had forecasted, mainly due to the underlying strength of the markets we serve and customers working off their supply chain safety stocks faster than we had expected. This positive trend points to IBEX generating net earnings significantly higher than F2021, although not approaching the extraordinary F2022.
Looking beyond Fiscal 2023, the future looks very favorable for IBEX as the market for hemostasis testing grows at a rapid pace, driven by the accelerated adoption of the new rapid viscoelastic testing devices.
The Company continues to work on a number of new heparinase-containing clinical device projects with its key customers, some of which may result in additional revenues in Fiscal 2023. However, as with all developmental projects, we cannot give assurances that any of these customer-driven projects will come to market and produce significant revenues.
Development of DiaMaze® (diamine oxidase) continues to advance. DiaMaze® is an enzyme targeted to persons suffering from histamine intolerance and will be marketed as a nutraceutical. We continue to make good progress in the development of a commercial scale manufacturing process. The next critical development steps will be; selecting a manufacturer for commercial product, and the investment in toxicology studies (which, if undertaken, will increase R&D expenses considerably in fiscal 2024).
ABOUT IBEX
IBEX manufactures and markets proteins for biomedical use through its wholly owned subsidiary
For more information, please visit the Company’s website at www.ibex.ca.
Neither
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:
President & CEO
514-344-4004 x 143
Source:
2023 GlobeNewswire, Inc., source