for the period ended 30 June 2008
CALGARY, Oct. 27 /CNW/ - Fiscal 2008 was a year of consolidation and
development after record 57% growth of the previous year. Revenue continued to
grow in 2008 in spite of very challenging underlying climatic conditions in
some key markets. Epicore sales remained above the three million US dollar
mark. Some highlights were,
- Increased net income to $0.48 million as Epicore recorded a positive
net income for the fifth year in a row and marked four consecutive
years of earnings growth.
- Achieved net income as a percentage of sales revenue of 15%.
- Grew basic and diluted earnings from $0.019 to $0.02 per share in
- Grew sales revenues by $0.1 million (2%) building on record prior
year growth and maintaining four years of uninterrupted growth.
- Achieved a compound annual net earnings growth rate (CAGR) of 36%
over the last four years.
- Increased cash by $0.5 million to $0.8 million.
Considerable progress was made in a number of very important areas,
including expanding and consolidating distributorships and technical support
specialists in a number of major markets that are key to the Company's future.
The Epicore product range offers strong value to a growing customer base. Even
in markets where Epicore revenues are skewed by timing of distributor
purchases, underlying end customer sales grew.
Aquaculture remains the Company's most important market sector, with 98%
of total sales. Epicore biotechnology and specialty feed technology offer
answers to problems of pollution, disease and poor nutrition in aquaculture
operations around the world.
Despite floods in Ecuador and typhoons in Asia, shrimp supplies have been
relatively high, contributing to a slow recovery of shrimp prices. Epicore
continues to successfully adapt and develop its product range to meet changing
market situations. New products and application systems offer strong value to
a growing customer base as well as satisfying constantly changing customer
Distributors in Mexico, Indonesia, Brazil, India, Thailand and Venezuela
made major contributions to fiscal 2008 results. Latin American distributors
posted strong year-on-year sales growth. Some distributors started the year
overstocked or faced changing market conditions so failed to match prior year
results. All remain committed to promoting Epicore products and to helping
aquaculture producers improve animal survival and operational productivity.
One particularly impressive growth region was Mexico. The country shows how
effectively a well-trained and technically competent distributor can generate
sales in a strong market. Latin America remained our largest revenue generator
with 78% of sales in fiscal 2008.
Epicore gross profit fell slightly (3%) due to sales mix changes and to a
reallocation of manufacturing labor costs and overhead. Operating expenses
decreased by 3% in 2008. Revenue growth resulted in higher income taxes, which
were partially decreased by our accumulated net operating losses. The Company
generated a net income of $0.475 million, a 4% increase over $0.457 million in
(US$) 2008 2007
Sales 3,192,000 3,131,000
Gross Profit 2,099,000 2,113,000
Expenses 1,515,000 1,557,000
Other Income (Expense) (34,000) (27,000)
Income Taxes 74,000 72,000
Net Income (Loss) 475,000 457,000
Cash at the end of June was $0.8 million, an increase of $0.5 million
from prior year mainly due to a strong net income and working capital
improvements generated during the year. With these funds, expected sales
revenue growth and continued relatively low operating costs, management
expects there will be sufficient cash to meet the fiscal year's financial
requirements, to fund expansion of aquaculture and environmental remediation
marketing efforts and to investigate new strategies for enhancing shareholder
The financial statements of the Company have been prepared in accordance
with Canadian GAAP. Epicore BioNetworks Inc. is a public corporation with a
registered office in Calgary, Alberta, Canada and with shares listed on the
TSX Venture Exchange (symbol EBN). (The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this
This press release contains forward-looking statements that involve
significant risks and uncertainties. The actual results, performance or
achievements of the Company might differ materially from the results,
performance or achievements of the Company expressed or implied by such
forward-looking statements. Such forward-looking statements include, without
limitation, those regarding the development plans of the Company and the
expected timing and results of such development. We can provide no assurance
that such development will proceed as currently anticipated or that the
expected timing or results of such development will be realized. We are
subject to various risks, including the uncertainties of product development,
markets for our products and regulatory review, our need for additional
capital to fund our operations, our reliance on collaborative partners, our
history of losses, and other risks inherent in the biotechnology industry.
For further information:
For further information: Mr. William P. Long (Chief Executive Officer),
USA, Tel: (609) 267-9118