Ergoresearch reports solid 2014 annual results
Published November 6 2014 in What's New
Results for the fourth quarter and the fiscal year ended June 30, 2014
KEY FINANCIAL ITEMS – FISCAL 2014
Compared to Fiscal 2013:
- Revenues increased by 32.6%, from $13,469,348 to $17,862,341.
- The EBITDA reached $3,087,816 this year compared to the adjusted EBITDA¹ of $2,195,290 for last year.
- Cash flow generated from operating activities rose to $1,774,141, up from $989,377 last year.
- Net income amounted to $1,230,153, compared to $11,926,893 last year. Last year’s result included extraordinary gains from business acquisition (Victhom
- Human Bionics), non-recurring expenses from business acquisition and stock-based compensation (2013).
- Cash on hand and temporary investments as of June 30, 2014 were $10,506,706, up from $6,678,585 on June 30, 2013.
- The Company continued reimbursing its long-term debt, with $2,223,536 paid down during the fiscal year. As of June 30, 2014, the long-term debt was
- Total assets amounted to $34,564,855 compared to $30,767,118 for the period ended on June 30, 2013.
¹ Adjusted 2013 EBITDA: The 2013 EBITDA was adjusted by ($11,158,941) for a gain from business acquisition and by $108,000 for stock-based compensation.
KEYOPERATING ITEMS – FISCAL 2014
- The Company completed the development and manufacturing of scanner technology for the orthopedic industry. The 3D technology, more precise than
- traditional methods using casting tape, means that orthotists will no longer resort to plaster when casting. This new, competitive edge will enable
- Ergoresearch to conquer new market shares for its custom medical products like the OdrA, the new worldwide-patented distraction-rotation orthotic device.
- The Company continued to implement and develop its new ERP software: the Company is currently using both the old and new systems in one of its
- subsidiaries to ensure the integrity of clinical, financial and production data.
- Monetization of the sleep apnea technology. The Company received a net royalty payment of $590,000, representing its share of the net proceeds generated
- by the sleep apnea technology’s monetization transaction as completed by its German partner, Otto Bock Healthcare. According to the terms of the royalty
- agreement between Victhom and Otto Bock Healthcare, the sleep apnea technology could also generate additional royalties on future sales should this
- technology be commercialized.
- Last February, the Company issued 5,000,000 shares through private offering, in the gross amount of $5,000,000.
LAVAL, QC, Nov. 06, 2014 /CNW Telbec/ – Ergoresearch Ltd (“Ergoresearch” or “the Company”) is poised, with its strategic plan, for accelerated growth in
terms of sales and profitability. Annual growth in 2014 was 32.6% and revenues reached $17,862,341. Net income amounted to $1,230,153. The EBITDA reached
$3,087,816, crossing the $3 million threshold for the first time in the Company’s history.
With the goal of continuing this growth, the Company joined the forces of its subsidiaries, merging in September 2014 Clinique du Pied Équilibre, Orthoconcept
and Laboratoire Langelier under a single banner: “Equilibre“.
Equilibre is the largest network of orthotics professionals in Quebec. The network is motivated by a shared objective of reducing pain, getting people moving and
helping them regain their mobility. Its positioning is also well-defined: a network of health professionals supported by leading edge research and development.
Ergoresearch innovates by integrating and developing new technologies that change people’s lives.
Sylvain Boucher, President and CEO, noted, “Last year was especially fertile with respect to innovation. The Company completed a major project that helped
launch new 3D-scanner technology. This technology, available for a fraction of the cost of traditional high-precision scanners, eliminates the need to take an
imprint with casting tape when making custom orthotics.” The scanner technology was integrated into the OdrA measurement-taking process for all operations in
Quebec. Commercialization of the OdrA outside Quebec has now been now made possible by this new procedure. During the fourth quarter, the Company also
welcomed its first OdrA licensees outside Quebec.
Mr. Boucher added, “OdrA’s clinical results were also very encouraging. Doctors recognize the effectiveness (pain relief) and the ease of use (significant wear
time) of the OdrA patented distraction orthotic.” Beyond the clinical research results and scientific publications supporting the OdrA’s advantages, effectiveness in
the field is still the best gauge of future success.
The Company also participated in a monetization transaction for the sleep apnea technology, which was completed in collaboration with its German partner, Otto
Bock Healthcare. The technology is an implantable medical device that records and stimulates peripheral nerves to treat obstructive sleep apnea. Based on the
neurostimulation platform developed by Victhom, the technology helps detect sleep apnea and deliver therapy only when necessary. The sleep apnea technology
could eventually generate additional royalties on future sales should this technology be commercialized.
Finally, last February, Ergoresearch issued shares through private offering, in the gross amount of $5,000,000. Ergoresearch’s current cash on hand is over
$10,000,000 and the Company is advantageously positioned to carry out the next steps of its growth plan. Management is actively exploring various business
acquisition opportunities. Carrying out the business plan and valuing shareholders is central to our actions and we will continue to strive to reach new heights in
the years to come.
Ergoresearch aims for excellence and constantly tries to refresh its ways of doing things, offering what is best to its clients “Our advancement is the result of
countless years of research and technological innovation, of a long collaboration and sustained exchanges with the medical world, but also and particularly of a
clinical commitment to our patients. This Management report is a unique opportunity to thank our employees, clinical staff and management team who, by their
daily work and dedication, contribute to the success of our Company,” said Mr. Boucher.
AWARDS and RECOGNITION
In October 2013, the President and CEO of Ergoresearch was chosen for the second consecutive year as one of Quebec’s finalists for the Ernst & Young
Entrepreneur of the Year Award. In June 2014, Ergoresearch appeared for a fourth consecutive year on the prestigious roster of PROFIT 500 Canada’s
Fastest-Growing Companies as one of the country’s most successful five-year performers. The Company also ranked 17th on the list of Quebec businesses
posting the strongest five-year growth, as published in L’actualité. Finally, in October 2014, the Company won the Desjardins Entrepreneur Awards – Innovation
and Productivity Award.
Ergoresearch is a Canadian company that designs and manufactures cutting edge technologies for the orthopedic industry. The Company holds a portfolio of
patents in the bionics field, including the intellectual property used in the Power Knee, the world’s only motor-powered AI prosthesis for above-knee amputees.
Ergoresearch designed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program and launched OdrA, a new
category of orthotic that, with the action of its world-patented distraction-rotation action, revolutionizes the treatment of pain associated with knee osteoarthritis.
Ergoresearch owns the largest orthotics network in Quebec, now known as Equilibre. The Corporation is listed on the TSXVenture Exchange under the ERG
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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, as these statements are subject to numerous uncertainties and risk factors. 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
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Sylvain Boucher, President and CEO – Ergoresearch Ltd
Tel.: 450-973-6700, x. 213 / firstname.lastname@example.org
Émilie Vion, Communications Coordinator – Ergoresearch Ltd
Tel.: 450-973-6700, x. 242 / email@example.com