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Immunotec Reports Second Quarter Results

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“Record Quarterly Revenues”

– Revenues increased by 28.1% over last year

– Adjusted EBITDA(1) amounted to 7.8% of revenues

– Sponsoring of new customers and consultants increased by 34.6% over last year

VAUDREUIL-DORION, QUEBEC–(Marketwired – June 16, 2016) – Immunotec Inc. (TSX VENTURE:IMM), a direct-to-consumer company and leader in the nutritional industry (the “Company” or “Immunotec”), today announced its second quarter financial results for Fiscal 2016. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.

“We are pleased to report that total revenues for the quarter exceeded $25.0M for the first time in Company history. This performance is the result of superior teamwork and dedication on the part of our field associates, employees and valued suppliers”, said Charles L. Orr, Chief Executive Officer of Immunotec.

PERFORMANCE HIGHLIGHTS

Network sales for the three- and six-month periods ended April 30, 2016 reached $23.4M and $44.5M compared to $18.2M and $34.5M for the corresponding periods of the previous year, an increase of $5.2M or 28.9% and $10.0M or 29.2%. Excluding currency fluctuations, the Company recorded an increase in network sales in Mexico of 38.6% and 33.0%, in the United States of 27.0% and 28.9%, and, in Canada of 11.1% and 6.9% for the three- and six-month periods ended April 30, 2016 relative to the corresponding periods of the previous year.

“The increase of our Sponsoring numbers are above 30% in all of our key markets, which indicates a strong momentum for the quarters ahead” said Patrick Montpetit, Chief Financial Officer of Immunotec. “We are confident that we are on track to achieve $100.0M in revenues for fiscal 2016”.

Revenues and sponsoring 1
For the periods ended April 30, Three-months Six-months
(‘000s of C$) 2016 2015 Variation 2016 2015 Variation
Network sales 23,418 18,170 28.9 % 44,548 34,475 29.2 %
Other revenue 2,168 1,798 20.6 % 3,982 3,412 16.7 %
25,586 19,968 28.1 % 48,530 37,887 28.1 %
Network sales in key markets in local currency 2016 2015 Variation 2016 2015 Variation
Mexico (‘000s of Mexican pesos) 159,142 114,834 38.6 % 294,441 221,362 33.0 %
United States (‘000s of US$) 6,014 4,735 27.0 % 11,402 8,847 28.9 %
Canada (‘000s of C$) 3,036 2,733 11.1 % 5,867 5,489 6.9 %
Sponsoring1 of new customers and consultants in key markets
(# of people) 2016 2015 Variation 2016 2015 Variation
Mexico 17,376 12,847 35.3 % 31,453 23,526 33.7 %
United States 5,842 4,384 33.3 % 10,139 7,608 33.3 %
Canada 2,041 1,534 33.1 % 3,998 3,023 32.3 %
25,259 18,765 34.6 % 45,590 34,157 33.5 %

Margins before expenses, as a percentage of revenues, remained stable at 76.5% for the three- month period ended April 30, 2016 compared to 76.4% for the same period in the prior year. Margins before expenses decreased slightly from 76.6% in the six-month period ended April 30, 2015 to 75.6% for the six-month period ended April 30, 2016. The small decrease is due to a combination of the product mix sold; negative fluctuations in exchange rates and increases in raw materials prices from suppliers.

Adjusted EBITDA1 for the three- and six-month periods ended April 30, 2016 amounted to $2.0M or 7.8% of revenues and $3.2M or 6.5% of revenues compared to $1.4M or 7.0% of revenues and $2.5M or 6.6% of revenues for the same periods of the previous year.

Net profit for the three- and six-month periods ended April 30, 2016 was $0.6M and $0.9M compared to $0.3M and $1.2M for the corresponding periods of the previous year. Total basic and fully diluted net profit per common share for the three- and six-month periods ended April 30, 2016 was $0.008 and $0.013 compared to $0.005 and $0.017 for the corresponding periods of the previous year.

1 Refer to the “NON-GAAP MEASURES” section. The definition of Sponsoring and the Adjusted EBITDA reconciliation to Net profit is shown below.
Results of operations
For the periods ended April 30, Three-months Six-months
(‘000s of C$, except for share and per share data) 2016 2015 2016 2015
Revenues 25,586 19,968 48,530 37,887
Cost of sales 6,002 4,717 11,853 8,869
Margin before expenses 19,584 15,251 36,677 29,018
Expenses 17,798 14,031 34,333 26,832
Operating income 1,786 1,220 2,344 2,186
Net finance expenses 773 793 778 451
Income taxes 445 104 660 560
Net profit 568 323 906 1,175
Total comprehensive income 402 891 718 1,340
Total basic and diluted net profit per common share 0.008 0.005 0.013 0.017
Weighted average number of common shares oustanding during the period
Basic 69,751,103 69,097,995 69,516,943 69,015,556
Diluted 69,909,755 69,101,596 69,534,198 69,019,133
Calculation of adjusted EBITDA 1
For the periods ended April 30, Three-months Six-months
(‘000s of C$) 2016 2015 2016 2015
Net profit 568 324 906 1,175
Add:
Depreciation and amortization 166 168 346 322
Net finance expenses 773 793 778 451
Other expenses 38 6 484 9
Income taxes 445 104 660 560
Adjusted EBITDA 1,990 1,395 3,174 2,517
as a % of Revenues 7.8 % 7.0 % 6.5 % 6.6 %

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