Second quarter results ‒ Fiscal 2013 - Ergoresearch records excellent financial results and 24th consecutive profitable quarter

Fiscal 2013 second quarter highlights compared to Fiscal 2012:

  • Product sales show a 26.1% increase, to $2,567M;
  • EBITDA show a 58.5% increase to $0.431M, or 16.8% of second quarter results;
  • Acquisition of Laboratoire Podotech Inc. during current quarter;
  • Acquisition of Laboratoire Langelier this past January 22.

LAVAL, QC, Feb. 28, 2013 /CNW Telbec/ - At closing of the second quarter of fiscal year ended 2013, Ergoresearch Ltd (TSXV: ERG), based in Laval and known for its Clinique du pied Équilibre, Orthoconcept and now Laboratoire Langelier banners, is announcing a 26.1% increase in sales for this quarter in comparison with the same period ended in 2012, and amounting to $2,566,840. Net profit before taxes is $302,318 compared to $156,659 for the same quarter last year.

Sales of foot orthotics, derivative products from the Company's proprietary technologies, are on the rise at 24.6%, while those generated by its new OdrA orthotic device, dedicated to relieving pain associated with knee osteoarthritis, amount to $254,008. Sales generated by Laboratoire Podotech, newly acquired October 1 2012, have increased to $99,267 and represent 3.8% of the Company's product sales.

On January 22 2013, Ergoresearch proceeded with the acquisition of Laboratoire Langelier for $4.6M, conditional to certain adjustments regarding working capital, to be paid out as follows:

  • $3,188,762 in cash;
  • $811,238 by the assumption of some existing long-term debt;
  • $600,000 in the form of a promissory note to the sellers.

As Laboratoire Langelier is ranked second in the Québec foot orthotic industry, this acquisition enables Ergoresearch to broaden its distribution network and further reinforce its position as Québec leader. It also acts a showcase for its proprietary technologies and products, including the OdrA orthotic device.

Ergoresearch and its subsidiaries are hereby pursuing their objective for sustained growth, the result of a precisely executed business strategy. "The launch of the OdrA orthotic device proved to be positive and this new patented product under an exclusive Canadian distribution licensing agreement has been well received among both the patients, and the medical community," states Sylvain Boucher, President and CEO of Ergoresearch. "Given the Company's excellent performance since the beginning of the year, and with the recent acquisitions of Laboratoire Podotech and Laboratoire Langelier which, for its part, generated $6.5M in revenues for the 12-month period ending this past December 31, the outlook for the remainder of the 2012 fiscal year is positive. We estimate being able to double our consolidated revenues over the upcoming 12-month period."

In addition to appearing on Deloitte's Technology Fast 500TM that showcases the 500 fastest-growing businesses in Canada and the United-States, Québec's leading manufacturer of "intelligent" foot orthotics and specialty orthotics also joins the ranks of select Québec finalists nominated for the 2012 Ernst & Young Entrepreneur Of The Year® Award and appears, post-closing, on the 2013 TSX Venture 50® Companies that features Canada's top 50 strongest performing businesses on the TSX Venture Exchange.

About Ergoresearch
Ergoresearch has developed the most important network of orthotics clinics in Québec, with over one hundred clinics and satellite centres flying under the banners of Clinique du pied Équilibre, Orthoconcept, Podotech and Laboratoire Langelier. Québec's leading manufacturer of "intelligent" foot orthotics and specialty orthotics, it is a trend-setter in creating durable medical equipment and software for the orthopedics market. Ergoresearch has developed and commercialized Expert-Fit™, the first robotized custom-fit orthotics manufacturing software program, launched the first Living Lab in Canada and more recently, a new generation of world-patented orthotic device called the OdrA that revolutionizes the treatment of pain associated with knee osteoarthritis. Ergoresearch Ltd is listed on the TSX Venture Exchange (TSXV) under the symbol ERG.

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 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. Such risks factors include, but are not limited to, those related to the Corporation's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the said product, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, the success of research and development programs, fluctuations in cash flow, expectations regarding market demand for particular products, the strength of intellectual property, market dependence on new product development, the trust invested in sub-contractors or their core personnel, as well as other documents containing risks and uncertainties which are put forth every now and then by the firm to 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 the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or circumstances. 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

For further information:

Source:
Sylvain Boucher, President and CEO - Ergoresearch Ltd
Tel.: 450-973-6700, ext. 213 / sboucher@ergoresearch.com

Information: 
Isabelle Vallée, Director ‒ Communications and Public Relations, Ergoresearch Ltd
Tel.: 450-973-6700, ext. 233 / Cell: 514-377-0485 / ivallee@ergoresearch.com


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