TSX-V : ERG
LAVAL, QC,
Oct. 27, 2017 /CNW Telbec/ - Ergoresearch Ltd
("Ergoresearch" or "the Company") based in Laval and known under the «Équilibre, orthèses
et biomécanique» banner – announces its results for the fiscal year
ended June 30, 2017. All dollar
amounts in the present release are in Canadian currency. The year
2017 was dedicated to improving the efficiency of the Company,
forward research projects and launch complementary opportunities as
well as laying out the foundations for future growth.
Revenues for the period ending June 30, 2017 amounted to
$14 028 021 which represented a decrease of 2.1% compared to
the same period last year. Revenues this year were negatively
impacted by the strategic and planned closure of the "home care"
division, the evolution of the market and changes in the
organization of health care in Quebec.
Net results for the period were ($214 058) compared to $111 733 last year. This decrease in
earnings is mainly related to the other items that generated a
credit of $ 170,393 in fiscal year
2016, a tax expense of $ 64,092
resulting from a change in the provincial tax rate in 2017 and
start-up costs incurred during the 2017 financial year:
These start up cost were to launch of new organic
initiatives:
- Sleep apnea services in some Equilibre clinics in Quebec
- Dynamic knee analysis service, called "Kneegraphy" (Knee
KG)
- Recruitment and training of distributors outside Quebec for Ergoresearch's flagship
products
Cash flow from operating activities represented $887 612
compared to $694 301 last year.
Concerning the balance sheet, the Company reimbursed in full its
long-term debt by paying amounts totalling $366 667 during the
period. In addition, as was announced in November 2016, the Company redeemed for
cancellation 225 000 common shares of its capital stock for a
total amount of $51 625.
The Company still has a cash equivalent of more than
$8 million that the Company plans to use over the next few
years.
Mr. Sylvain Boucher, president
and C.E.O. stated: the health care industry is in mutation and more
specifically in Québec where the Company operates. The year
2017 saw the adoption of new legislation regarding accessory fees,
a parliamentary commission on medical laboratories (Bill 118) and
the launch of the «Super clinics» project. These major developments
combined with high acquisition price expectations from potential
sellers, all contributed to management's decision to focus on
complementary opportunities.
Hence, the Company signed agreements to open three new Equilibre
laboratories within «Super-clinic» locations. These sites will open
during the course of next year. Equilibre also launched its new
apnea division known as « Apnée Equilibre » and
integrated the « Knee KG » «kneegraphy» to its
operations. Knee KG is one of the featured technologies
presented at the Quebec
government's « Stratégie québécoise des sciences de la vie,
2017-2027 ». These complementary services are perfectly
in line with Equilibre's mission and benefit from the Company's
administrative and commercial platforms. It is expected that these
activities will impact the short term profitability of the group.
It is expected that the breaking point for each initiative will be
reached between 18 to 24 months from their respective launch.
In its efforts to innovate, the Company presented two requests
for patents in 2016 and 2017. The added value of its products
supported by its technological platform, allowed the Company to
sign a distribution agreement with a Canadian physiotherapy
network. Investments were made in training programs and
marketing tools to insure the success of these launches. Management
expects positive results during the course of the next fiscal year.
The Company is also seriously looking into distributing its
products in the United-States.
Development and perspectives
Our current priorities and development plans include the
following objectives:
- Strengthened by our cash position, pursue the exploration of
potential acquisitions or partnership in Quebec and across Canada.
- Deploy the "Equilibre" brand in a multidisciplinary and
interdisciplinary concept through the opening or designation of the
super-clinics in Quebec.
- Continue to develop the marketing of our technology platform
and derivative orthotic related specialty products.
- Continuing our investments in Research and Development
(R&D)
Mr. Sylvain Boucher would like to
thank all of our employees for their dedication and their ongoing
desire to improve. Progress, the desire to excel and
commitment are values that we all share, which reveals a bright
future.
About Ergoresearch
Ergoresearch is a Canadian company that designs and
manufactures cutting edge technologies for the orthopedic
industry. The Company is a trend-setter in creating custom
orthotics and speciality orthotics for the orthopedics market and
holds a portfolio of patents in the orthopedics field and in human
bionics. The mission of our banner "Équilibre orthèses et
biomécanique" is to keep people active and moving. "ÉQUILIBRE",
driven by its proprietary technologies and the expertise of its
professionals, offers a range of products, treatments and services
in order to relieve pain, restore motor function and optimize
performance.
This document is not intended to encourage the purchase of
securities listed on the TSX Venture Exchange. TMX Group and its
affiliates do not endorse or recommend any of the securities
referenced here. 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 not historical facts and are
based on current management's expectations. We ask the reader to
note that these statements are subject to a multitude of risks and
uncertainties that could affect the potential future results,
circumstances or events and may differ materially from those
contained in the forward-looking statements. Such risk factors
include, but are not limited to, those related to the Company's
ability to finance its activities, competition, ability to
negotiate and maintain partnerships, the market acceptance of the
Company's product, the strength of intellectual property, the
success of research and development programs, the trust invested in
sub-contractors or their core personnel as well as other risks and
uncertainties that are put forth every now and then by the Company
in the documents filed with 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 (i) the results may differ from conclusions,
predictions or projections contained in such forward-looking
statements; and (ii) certain important factors or hypotheses taken
into account in reaching conclusions or the preparation of a
projection or prediction may prove to be incorrect in fact.
These statements are correct only on the date on which they were
written, and Management disclaims any obligation to revise these
statements after any event, circumstance or other situation, except
as required by law. 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