IBEX earns $422,686 in fiscal Q2

Mr. Paul Baehr reports

 

IBEX REPORTS RESULTS FOR THE SECOND QUARTER AND THE SIX MONTHS ENDED JANUARY 31, 2017

 

IBEX Technologies Inc. has released its financial results for the six months ended Jan. 31, 2017.

 

"The second quarter of fiscal 2017 was a very positive quarter for the company with sales increasing 35 per cent over year ago and 27 per cent over the previous quarter," said Paul Baehr, IBEX president and chief executive officer. "Net earnings increased 114 per cent over the same quarter year ago and by 113 per cent over the previous quarter. In addition, cash and cash equivalents have increased by 8 per cent during the quarter despite the investment in our new fermentation facility.

Note

 

The company's audited consolidated financial statements for the year ended July 31, 2016, and the accompanying notes and the related management's discussion and analysis can be found on the company's website or under the company's profile on SEDAR.

 

Second quarter fiscal 2017 financial results

 

Sales for the quarter ended Jan. 31, 2017 ($1,542,241), were up 35 per cent compared with the same period of the prior year ($1,140,816). The sales increase traces mainly to the introduction by one of the company's customers of a new product which contains an IBEX enzyme.

 

Net earnings ($422,686) increased 114 per cent compared with the same period a year ago ($197,330). The favourable change in earnings traced mainly to the sales increase.

 

Cash and cash equivalents increased 8 per cent versus the previous quarter, despite the investment in the company's new fermentation facility ($117,000).

 

Financial results for the six months ended Jan. 31, 2017

 

Sales for the six months ended Jan. 31, 2017 ($2,752,815), are up 8 per cent as compared with the same period of the prior year ($2,555,691). The sales increase traces mainly to the introduction of a new product mentioned above.

 

Net earnings ($621,574) are up 11 per cent as compared with the same period a year ago ($557,536). This positive variation in earnings can be mainly traced to the increase in sales.

 

Year-to-date cash and cash equivalents ($3,114,055) are up 7 per cent versus the end of fiscal 2016, despite the investment in the company's new fermentation facility ($250,000).

                     FINANCIAL SUMMARY FOR THE SIX MONTHS ENDED JAN. 31     
                                            
                                                              Jan. 31, 2017    Jan. 31, 2016

Revenues                                                         $2,752,815       $2,555,691
Earnings before interest, tax, depreciation and amortization       $783,797         $755,795
Depreciation                                                       $141,082         $175,071
Net earnings                                                       $621,574         $557,536
Earnings per share                                                    $0.02            $0.02

 

Cash and cash equivalents increased by $214,433 during the six months ended Jan. 31, 2017, as compared with the year ended July 31, 2016. Net working capital increased by $436,108 during the six months ended Jan. 31, 2017, as compared with the year ended July 31, 2016.

Looking forward

The company's new fermentation facility is on track to be finished during the fourth quarter of this fiscal year. The total cost of the facility is expected to be $600,000 of which $250,000 has already been disbursed. The balance of the company's investment is expected to be disbursed within the current fiscal year.

The company now expects sales for the 2017 fiscal year to increase 10 to 15 per cent over the previous year as one of the company's major customers is experiencing increased sales on two of its major products.

Over all, the company expects to end the year with an improved cash position versus its 2016 fiscal year-end.

Management believes that the company has sufficient funds to meet its obligations and planned expenditures for the ensuing 12 months as they fall due. In assessing whether the going-concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period.