Immunotec's sales increase by 4.3% in 2008



    VAUDREUIL-DORION, QC, Feb. 12 /CNW Telbec/ - Immunotec Inc. (TSX Venture
Exchange: IMM) (the "Company" or "Immunotec"), is engaged primarily in the
development, manufacturing and marketing of health and wellness products which
are classified as dietary supplements or natural health products. These
products are distributed and sold in Canada and the United States through a
network marketing system and in other countries under exclusive
distributorship agreements.

    NET SALES

    Net Sales for the year ended October 31, 2008 were $36,021,645 compared
to $34,528,236 for the same period in 2007, an increase of $1,493,409 or 4.3%.
This mainly reflects increases in volume in Canada of $382,117 or 2.2%, in the
United States $170,889 or 1.2% and to other countries, $997,744 or 39.4%. In
US dollars, network sales in the United States were $13,564,527 compared to
$12,496,985 in 2007, an increase of $1,067,542 or 8.5%.
    For the fourth quarter in 2008, net sales were $9,254,877 compared to
$8,511,677 for the fourth quarter in 2007, an increase of $743,200 or 8.7%.
Increases were $120,599, (2.7%) in Canada, $389,451 (11.3%) in the United
States and $233,150 (36.2%) in other countries. In US dollars, network sales
in the United States were $3,385,374 compared to $3,156,880, an increase of
7.2%.

    
    SELECTED CONSOLIDATED ANNUAL INFORMATION

                                             Year Ended           Year Ended
                                       October 31, 2008     October 31, 2007
                                                Audited              Audited
                                                     ($)                  ($)
                                       -----------------    -----------------
    Net Sales                                36,021,645           34,528,236
    Cost of Sales                             6,522,675            6,364,645
    Sales Incentives                         14,734,152           14,356,993
    Selling, General and Administrative      13,163,012           12,360,304
    Earnings before income taxes              1,601,806            1,446,294
    Net Earnings                                941,801              884,785
    Net Earnings per share:
      Basic                                       0.013                0.013
      Diluted                                     0.013                0.013
    Weighed average number of common
     shares outstanding:
      Basic                                  69,994,300           68,198,574
      Diluted                                70,034,549           69,573,727
    Cash Dividends Declared                           -                    -
    -------------------------------------------------------------------------


                                                  As at                As at
                                       October 31, 2008     October 31, 2007
                                                Audited              Audited
                                                     ($)                  ($)
                                       -----------------    -----------------
    ASSETS:
    -------
    Cash and equivalents                      6,138,454            3,874,558
    Accounts receivable                         812,914              505,366
    Other current Assets                      4,683,255            3,728,109
                                       -----------------    -----------------
    Total current Assets                     11,634,623            8,108,033
                                       -----------------    -----------------

    Other Assets                             11,028,777           12,246,573
                                       -----------------    -----------------
      TOTAL ASSETS                           22,663,400           20,354,606
                                       -----------------    -----------------
                                       -----------------    -----------------

    LIABILITIES:
    ------------
    Current Liabilities                       4,552,187            3,475,800

    Long Term Liabilities                             -              393,600

                                       -----------------    -----------------
      TOTAL LIABILITIES                       4,552,187            3,869,400
                                       -----------------    -----------------
                                       -----------------    -----------------
    SHAREHOLDERS' EQUITY:
    ---------------------
    Share Capital                             3,465,548            3,465,548
    Other Equity-Stock Options                1,414,885              736,416
    Contributed surplus                      11,332,143           11,326,406
    Retained Earnings                         1,898,637              956,836
                                       -----------------    -----------------

      TOTAL SHAREHOLDERS'
      EQUITY                                 18,111,213           16,485,206
                                       -----------------    -----------------
                                       --------------------------------------
    

    OPERATING RESULTS FOR THE YEAR ENDED OCTOBER 31, 2008

    Net earnings were $941,801 for the year ended October 31, 2008, compared
to $884,785 for 2007. The increase in net earnings of $57,016, is largely
attributable to increase in network sales and sales to other countries, offset
by changes made in key job positions to support the strategic plan of the
Company, resulting in higher administrative and marketing remuneration
expenses offset by income resulting from foreign exchange gains from the
strengthening of the U.S. dollar and additional interest revenue on our
increased cash and cash equivalents balances during the year.
    The operating results of the Company are a direct result of certain key
performance indicators. These indicators not only affect current performance
but are indicative of future performance. New distributors are independent
contractors that purchase a distributor kit and agree to market the products
of the Company to their circle of acquaintances. New customers are those who
agree to purchase the products of the Company on a regular basis through an
auto ship program called ImmunoDirect. For the year, the number of new
distributors recruited into the business opportunity increased by 24% and in
the fourth quarter increased by 23%. The number of new customers increased by
16.5% for the year but decreased by 4.1% in the fourth quarter. This decrease
in customer acquisition is due to increased emphasis on acquiring distributors
versus customers as their average monthly purchase pattern is approximately
50% greater than a customer.

    FINANCIAL SITUATION AND LIQUIDITY

    As at October 31, 2008, the Company had a cash position of $6,138,454
compared to $3,874,558 as at October 31, 2007. The Company believes that cash
requirements in the ordinary course of business for next year can be met with
its available cash, cash generated from its operating activities and the
reduction of income tax payments caused by the realization of prior years
income tax losses. If required, the Company has access to operating credit
facilities of $2,000,000 at its bank's prime rate plus 1/2 %. The credit
facilities were not drawn upon to date.
    The Company shows a solid balance sheet with no long term debt as at
October 31, 2008. As at October 31, 2008, the Company shows a working capital
of $7,082,436 for a ratio of 2.56 compared to a working capital of $4,632,233
with a ratio of 2.33 as at October 31, 2007. The increase in working capital
of $2,450,203 is mainly attributable to the investment of the majority of the
funds generated from the operations into short-term certificates of deposit
and treasury bills with short term maturities.

    RECENT DEVELOPMENTS

    In September 2008, at the Company's annual convention in New Jersey, a
number of marketing and sales tools designed to create a highly duplicatable
system for acquiring new distributors into the business were launched. These
tools included an attractive new distributor kit inclusive of brochures,
catalogs, a DVD/CD as well as a redesigned web site which is the business
center for the independent distributors.
    These tools were augmented by a new product: FITT (Future in Thinning
Technology) meal replacement system as well as an aggressive monthly
promotional offering.

    OUTLOOK

    The Company has for many years sold product internationally under
exclusive distribution agreements based on geographic territories. In fiscal
2008, distribution agreements were entered into with licensees in Malaysia,
Equador and Poland. Going forward, the Company has made a decision to expand
internationally using the same seamless network marketing model successfully
employed in North America. As a result of this decision it is the Company's
intent to open in the United Kingdom, Republic of Ireland and South Korea
through wholly owned subsidiaries in the coming year.
    In support of this more rapid expansion plan, the Company will be
expanding its manufacturing capability at its production facility in
Blainville, Quebec, adding packaging capability for its flagship Immunocal
product.
    Immunotec benefits from a solid balance sheet, skilled and motivated
employees, well established suppliers, repeat customers and a dedicated
network of distributors. Management believes that the new measures and sales
and marketing initiatives being implemented will help increase sales and
profits in the next year.
    Moreover, management is of the opinion that its investment in current
research in such areas as cancer cachexia, aging and aging related conditions
will enable Immunotec to produce and bring to market more value added products
which will continue to differentiate its products from competing products.
Immunotec, following recommendations from its Product Development Committee,
is constantly developing new products that are appropriate for its health and
wellness markets.

    FORWARD LOOKING STATEMENTS

    Some statements included in this management report contain
forward-looking information about the Company's future financial positions,
operating results and sales. They may be based on market expectations,
management opinions and assumptions. Such information involves significant
risks and uncertainties that are difficult to predict and rely on assumptions
that may prove inaccurate. Actual results and events may differ materially
from these forward-looking statements.

    ABOUT IMMUNOTEC

    Immunotec operates from a 37,000 square foot facility located in
Vaudreuil-Dorion, Quebec, Canada as well as a manufacturing facility located
in Blainville, Quebec, Canada and a distribution centre located in Swanton,
Vermont, USA. Immunotec is engaged primarily in the development and marketing
of natural health products, dietary supplements, food, vitamins and personal
care products, and natural health products, some of which are manufactured on
its behalf by third parties. Immunotec's products are distributed and sold in
Canada and the United States through a network marketing system and in other
countries under exclusive distributorship agreements.

    The TSX Venture does not accept responsibility for the adequacy or
    accuracy of this release.
    %SEDAR: 00011993EF




For further information:

For further information: Richard Patte, CA, Executive Vice-President and
Chief Financial Officer, (450) 510-4445

Organization Profile

IMMUNOTEC INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890