Fiscal 2013 ‒ Third quarter highlights:
- Completion of acquisition of Laboratoire Langelier on January 22 2013, for a consideration of $4.6M;
- Definitive agreement with Victhom Human Bionics (TSXV: VHB); all Victhom shares acquired by Ergoresearch April 26 2013 for a total consideration of $4.1M; Victhom shares delisted from the TSXV;
- Private placement of 10 258 065 common shares at $0.62 per share, for gross proceeds of $6.36M, on April 25 2013;
Other third quarter highlights:
- 96.0% rise in product sales, to $3,813M;
- 321.1% increase in operating income, to $399,871;
- Third quarter net profits of $213,418 ‒ a 200% increase compared to previous year;
- Acquisition-based non-recurring charges totalling $114,807
LAVAL, QC, May 30, 2013 /CNW Telbec/ - Ergoresearch Ltd (TSXV: ERG) - based in Laval and chiefly known under the Clinique du pied Équilibre, Orthoconcept and now Laboratoire Langelier banners - announced today its third quarter results for the period ending March 31 2013. All figures quoted are in Canadian dollars.
Financial results analysis takes into consideration the acquisitions of Laboratoire M.P. Langelier, LL Customs Inc., 2947-9052 Québec Inc. and Laboratoire M.P. Langelier/Lanoue Inc. on January 22 2013 (effective January 01 2013) and hereafter called ″Laboratoire Langelier″, and of Laboratoire Podotech inc., hereafter called ″Podotech″, on November 27 2012 (effective October 01 2012).
Fiscal 2013 third quarter sales totalled $3,813,863, a 96.0% increase compared to the same period in 2012, at $1,946,218. Increased sales were primarily due to the following factors:
- Influx of new products acquired through Laboratoire Langelier and Laboratoire Podotech, in the amount of $1,318,173;
- 21.7% increase in regular product sales derived from the Company's own technologies.
A 321% increase in operating income is reported in the third quarter of fiscal 2013, or $399,871 compared to $94,951 for the third quarter of fiscal 2012. Of note is that acquisition-based transaction fees (non-recurring charges) resulted in a lowering of the operating income numbers by $114,807 in the third quarter of fiscal 2013.
Company net profits reached $213,418 (5.6% of sales) in the quarter compared to $71,149 (3.7% of sales) in the third quarter of fiscal 2012. Higher profitability is chiefly owed to a broader range of foot orthotic and specialty orthotic products, including the OdrA, a new product launched last October.
Ergoresearch and its subsidiaries are therefore pursuing their objective of sustained growth, the outcome of a carefully executed business strategy. "The launch of the patented OdrA orthotic device, under an exclusive Canadian distribution licensing agreement, was well received among both patients and the medical community," stated Sylvain Boucher, President and CEO of Ergoresearch. "Given the Company's excellent performance since the beginning of the year and with the recent acquisitions of Podotech, Victhom human bionics and Laboratoire Langelier which alone generated $6.5M in revenues for the 12-month period ending this past December 31, the outlook for the future is positive."
About Ergoresearch
Ergoresearch has developed the most important network of orthotics clinics in Québec, with over one hundred clinics and satellite centres flying under the banners of Clinique du pied Équilibre, Orthoconcept and Langelier Orthèses Chaussures. Québec's leading manufacturer of "intelligent" foot orthotics and specialty orthotics, the company is a trend-setter in creating durable medical equipment and software for the orthopedics market. Through its subsidiary Victhom Human Bionics, it now also owns patents in the field of bionics, including intellectual property for the Power Knee, the world's only motor-powered prosthesis with artificial intelligence designed for above-knee amputees.
Ergoresearch has also developed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program of its kind, launched the first Living Lab in Canada for knee osteoarthritis and more recently, a new world-patented orthotic device called the OdrA, that revolutionizes the treatment of pain associated with knee OA. Ergoresearch Ltd is listed on the TSX Venture Exchange (TSXV) under the symbol ERG.
This is not an invitation to purchase securities listed on TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the referenced securities or investment advisors. Please seek professional advice to evaluate specific securities.
Forward looking statements
Certain statements in this Press Release contain forward-looking statements and information that may entail certain risks related to uncertainties. Such statements are based on management's expectations and no assurance can be given that potential future results or circumstances described in the forward looking statements will be achieved or will occur. Such risks factors include, but are not limited to, those related to the Corporation's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the said product, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, the success of research and development programs, fluctuations in cash flow, expectations regarding market demand for particular products, the strength of intellectual property, market dependence on new product development, the trust invested in sub-contractors or their core personnel, as well as other documents containing risks and uncertainties which are put forth every now and then by the firm to various Canadian securities and exchange commissions and made available at www.sedar.com.
The reader should not give great importance to forward-looking statements as the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.
Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or circumstances. All figures are in Canadian dollars, unless otherwise specified.
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.
SOURCE: Ergoresearch Ltd
