Merus Labs International Inc. reports first quarter financial results for the period ended August 31, 2011

(CNSX: MR)

VANCOUVER, Sept. 8, 2011 /CNW/ - Merus Labs International Inc. ("Merus" or the "Company") today reported its financial results for the quarter ended August 31, 2011.

In the first quarter Merus:

  • Achieved $2,246,899 in net Vancocin sales [$2,314,233 gross sales], representing a 20% increase over the same period in the previous year [as recorded by IMS Canada]
  • Achieved Gross profit of $2,075,782, representing 89.7% gross margin
  • Recorded selling, general and administrative expenses of $201,908
  • Realized EBITDA of $1,542,429 which was $1,714,000 before all non-cash items
  • Reduced short term debt by $1.2 mil
  • Realized net income of $488,521

"I am very pleased to report the results of our first quarter. During this period, our team demonstrated a flawless execution of Vancocin acquisition and managed to deliver a solid first quarter financial performance. We will use these results as a foundation for Merus Labs to continue to pursue opportunities to acquire and licence additional branded legacy products. In addition we expect to show strong organic growth in the next coming quarters with growth in the sale of Vancocin as well as launch of our wound care products in the current quarter." said Ahmad Doroudian, President and CEO.

Company's financial statements and management discussion and analysis (MD&A) can be accessed on www.Sedar.com

Consolidated balance sheets

(Expressed in Canadian dollars)

      August 31,

2011

$
        May 31,

2011

$
        June 1,

2010

$
                           
      (unaudited)                    
                           
Assets                          
                           
Current Assets                          
                           
  Cash     264,412         74,995         101,313
                           
  Accounts receivable     1,359,838         524,866         --
                           
  Prepaid expenses     61,873         --         1,162
                           
  Inventory     324,186         486,795         --
                           
                           
      2,010,309         1,086,656         102,475
                           
Intangible assets     19,925,196         20,269,606         --
                           
                           
      21,935,505         21,356,262         102,475
                           
                           
                           
Current Liabilities                          
                           
  Accounts payable and accrued liabilities     128,615         124,281         6,152
                           
  Due to related party (Note 8)     11,000         --         15,000
                           
  Income taxes payable     255,000         --         --
                           
  Short-term loan payable (Note 6)     4,607,584         5,489,384         --
                           
  Due to Iroko (Note 5)     12,540,353         12,402,061         --
                           
                           
      17,542,552         18,015,726         21,152
                           
Long-term loan payable (Note 7)     500,000         --         --
                           
                           
      18,042,552         18,015,726         21,152
                           
                           
Shareholders' Equity                          
                           
  Share capital (Note 9)     3,648,664         3,549,977         381,901
                             
  Share subscriptions received     --         36,000         850
                           
  Share option reserves     143,798         139,597         2,615
                           
  Share warrant reserves     159,197         162,189         --
                           
  Other reserves     147,997         147,997         129,907
                           
  Deficit     (206,703)         (695,224)         (433,950)
                           
                           
      3,892,953         3,340,536         81,323
                           
                           
      21,935,505         21,356,262         102,475
                             

MERUS LABS INTERNATIONAL INC.

Consolidated statements of operations, comprehensive loss, and deficit

(Expressed in Canadian dollars)

(unaudited)

      Three Months Ended

August 31,

2011

$
    Three Months Ended

August 31,

2010

$
             
             
Sales revenue     2,314,233     --
             
Cost of goods sold     238,450     --
             
             
Gross margin     2,075,783     --
             
             
Expenses            
             
  Amortization     344,410     --
             
  Foreign exchange loss     131,688     --
             
  Selling, general and administrative     201,908     20,135
             
  Management fees (Note 8)     10,000     14,944
             
  Professional fees     58,473     27,315
             
  Research and development     3,868     --
             
  Stock-based compensation (Note 9)     39,816     136,982
             
  Transfer agent and filing fees     20,975     9,513
             
  Warranty     67,334     --
             
             
      878,472     208,889
             
             
Net income/(loss) before other income (expense)     1,197,311     (208,889)
             
Other income (expense)            
             
  Accretion of discount on loan payable (Note 6)     (288,200)     --
             
  Interest expense     (166,298)     --
             
  Other income     708     --
             
             
      (453,790)     --
             
             
Net income/(loss) before income taxes     743,591     (208,889)
             
Income tax expense     (255,000)     --
             
             
Net income/(loss) and comprehensive income/(loss)     488,521     (208,889)
             
             
             
Net earnings/(loss) per share, basic     0.02     (0.02)
             
             
Net earnings/(loss) per share, diluted     0.01     (0.02)
             
             
Weighted average shares outstanding, basic     30,841,000     13,458,000
             
               
Weighted average shares outstanding, diluted     49,937,000     13,458,000
               

MERUS LABS INTERNATIONAL INC.

Consolidated statements of cash flows

(Expressed in Canadian dollars)

(unaudited) 

      Three Months Ended

August 31,

2011

$
    Three Months Ended

August 31,

2010

$
             
             
Operating Activities            
             
Net income/(loss) for the period     488,521     (25,660)
             
Items not involving cash:            
             
  Accretion of discount on debt     288,200     --
  Amortization     344,410     --
  Donated services     --     14,000
  Stock-based compensation     39,816     --
  Shares issued for services     --     --
  Unrealized foreign exchange loss     138,292     --
             
Changes in non-cash working capital items:            
             
  Accounts receivable     (834,972)     (451)
             
  Inventory     162,609     --
             
  Prepaid expenses     (61,873)     --
             
  Accounts payable and accrued liabilities     4,334     (2,625)
             
  Due to related parties     11,000     (5,250)
             
  Income taxes payable     255,000     --
             
             
      835,337     (19,986)
             
             
Financing Activities            
             
  Proceeds from issuance of long-term loan payable     500,000     --
             
  Repayment of loan payable     (1,170,000)     --
             
  Subscriptions receivable     --     2,500
             
  Proceeds from issuance of common shares     24,080     15,000
             
             
      (645,920)     17,500
             
             
Increase (decrease) in cash     189,417     (2,486)
             
Cash - beginning of year     74,995     24,992
             
             
Cash - end of year     264,412     22,506
             
             
Supplemental disclosures:            
             
  Interest paid     166,298     --
             
  Income tax paid     --     --
               

About Merus Labs International Inc.

Merus is a specialty pharmaceutical company engaged in the acquisition and licensing of pharmaceutical products. The Company utilizes its expertise in the North American pharmaceutical markets and its access to capital to acquire and license niche branded products in Canada and United States. Merus further enhances the sale and distribution of these products by introduction of a focused marketing and promotion plan.

Forward-looking Statements:
This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, we do not intend to update any of the forward-looking statements so as to conform these statements to actual results. Investors should refer to the risks disclosed in the Company's reports filed from time to time with securities regulatory authorities.

 

SOURCE Merus Labs International Inc.

For further information:

Dr. Ahmad Doroudian, Chief Executive Officer
Merus Labs International Inc.
Tel: (604) 805-7783
adoroudian@meruslabs.com

Profil de l'entreprise

Merus Labs International Inc.

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