Ergoresearch Ltd (TSXV: ERG) - based in Laval and better known under the «Clinique du pied Équilibre», «Orthoconcept» and «Laboratoire Langelier» banners - announced today its first quarter results for the period ended September 30, 2013. All figures quoted are in Canadian dollars.
The analysis of the financial results takes into consideration the acquisitions of Victhom Human Bionics inc. on April 26, 2013, 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 2014 first quarter revenues amounted to $4,227,942, a 95.0% increase compared to the period ended September 30, 2012 at $2,167,916. Increased sales were primarily due to the following factors:
-
Influx of revenues from recent business acquisition, namely Victhom Human Bionics, Laboratoire Langelier and Laboratoire Podotech, for a total amount of $1,775,901;
-
Organic growth (other than by acquisitions) of 13.6 %
-
A $456,843 increase in revenues from product derived from the Company's own technologies has offset a slight decrease in revenues from generic products.
A 54.1% increase in operating income is reported in the first quarter of fiscal 2014. Operating income totaled $544,292 compared to $353,246 for the first quarter of fiscal 2013. The non-recurring expenses from business acquisitions amounted to $62,583 and resulted in a lowering of the operating income figure in the first quarter of fiscal 2014.
The Company's net profits after tax reached $336,113 in the quarter compared to $207,164 in the first quarter ended September 30, 2012. Higher profitability is mainly attributable to increasing revenues from custom made foot orthotic and specialty orthotic products, including the OdrA, a product launched in fiscal year 2013.
Income tax expense amounted to $97,835 of which an amount of $92,500 has no cash flows incidence on the Corporation. This amount decreases the fiscal attributes available to the Company which were recognized as deferred income taxes assets during the fourth quarter of fiscal year 2013.
Ergoresearch and its subsidiaries are 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, is well received among both patients and the medical community." Today, the Company's cash position exceeds $6,000,000 and it is in a promising position to execute the next steps of its growth strategy. "We will take advantage of the next few months to properly integrate our recent acquisitions, accelerate product promotion (including the OdrA orthotic device) while seeking new business acquisition opportunities", says Ergoresearch President and CEO, Mr. Sylvain Boucher