Third Quarter results - Fiscal 2015 - Ergoresearch reports its results for the quarter ended March 31, 2015

Third quarter of fiscal year 2015 highlights:

  • Revenues decreased by 13.7 % and totalized $3,299,994 for the quarter ended March 31, 2015 compared to $3,823,151 for the same quarter last year.
  • Net income after tax amounted to ($280,197) compared to $14,466 for the third quarter ended March 31, 2014.
  • Cash flows from operating activities totalized $(523,605) for the third quarter ended March 31, 2015, compared to $242,263 for the same period last year.
  • EBITDA totalized $(146,225) for the third quarter ended March 31, 2015 compared to $432,167 for the same period last year.
  • The Company has cash totaling $9,445,631 as of 31 March 2015.
  • The Company has consolidated its different divisions under the name " Équilibre ". As well, the networks Clinique du Pied Équilibre, Orthoconcept, Laboratoire Podotech and Laboratoire Langelier merged and now appear under a common banner.
    • The Company had three clinics in the same area in Laval. Two of these clinics were closed and the activities were merged into a single location.
    • The five websites of the Company have been regrouped under www.equilibre.net
  • The Company continued the implementation and development of its new ERP software. To date, the implementation process is completed at 85 % and will be completed in its entirety on 30 June 2015.
  • The Company is continuing its clinical studies (comparative study and cross-study method) to scientifically support the benefits associated with the new Odra distraction orthotics. These studies complement those already published in Canada, France and Japan, which have already clearly established benefits for patients.
  • The CEO of the Company, Mr. Sylvain Boucher, was in nomination as a finalist for the award for CEO of the Year Investissement Québec - Association Québécoise des technologies.

LAVAL, QC, June 1, 2015 /CNW Telbec/ - Ergoresearch Ltd (TSXV: ERG) – based in Laval and known under the «Équilibre, orthèses et biomécanique» banner  – announces its results for the third quarter Ended on March 31, 2015. All dollar amounts in the present release are in Canadian currency.

Revenues for the third quarter of fiscal year 2015 ended this past March 31, 2015 totaled $ 3,299,994 decreasing by 13.7 % compared to revenues of $ 3,823,151 for the quarter ended March 31, 2014. This decrease can be explained by the following elements :

  • The closing of Podotech laboratory located in Laval and Laboratoire Langelier clinic also located in Laval. All activities and patients files were transferred to the Équilibre Laval branch.
  • The merge under the unique banner coupled with difficult climatic conditions, which could have affected our clinical visits and could explain part of the decline.
  • The Company was not able to provide services to patients on days when professionals were under training in regards to the processes related to the new banner :
    • Training of production employees.
    • Staff training on new concepts under "Équilibre" and new technologies.
  • The termination of activities of the "Langelier" franchise.

Cash flow from operating activities amounted to $ (542,605) for the third quarter ended on March 31, 2015 compared to $ 242,263 for the same period last year. Net income after tax of the Corporation reached $ (280,197) compared to $ 14,466 for the same period last year. The declining results are in part caused by the closure of some offices and changing banners combined with the non- recurring investments for clinical studies launched last quarter.

Ergoresearch and its subsidiaries intend to pursue the growth of past years. To that end, the Corporation began the final stage of the integration of its recent acquisitions. This final phase is in three parts:

  • Merging all Quebec banners under one trademark (completed in September 2014).
  • Impliment the new personalized ERP software. This had been completed at 85% and the Corporation intends to fully complete the integration as of June 30, 2015
  • Simplify the corporate structure.

« In parallel, we will accelerate the commercialization of our products in the coming months (of which the « OdrA » device), we are indeed pursuing a clinical program aimed at increasing scientific evidence on the benefits of this patented product. Scientific evidence is the highway to a wider adoption of this revolutionary product by referring physicians. Finally the Corporation is staying vigilant to any new acquisition opportunities. » declared Mr. Sylvain Boucher, President and CEO of Ergoresearch.

About Ergoresearch

Ergoresearch is a Canadian company that designs and manufactures cutting edge technologies for the orthopedic industry. The Company holds a portfolio of patents in the bionics field, including the intellectual property used in the Power Knee, the world's only motor-powered AI prosthesis for above-knee amputees. Ergoresearch designed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program and launched OdrA, a new category of orthotic that, with the action of its world-patented distraction-rotation action, revolutionizes the treatment of pain associated with knee osteoarthritis.

Ergoresearch owns the largest orthotics network in Quebec, now known as Equilibre. The Corporation is listed on the TSX Venture Exchange under the ERG symbol.

This document is not intended to encourage the purchase of securities listed on the TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the securities referenced here. Please seek professional advice to evaluate specific securities.

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, as these statements are subject to numerous uncertainties and risk factors. Such risk factors include, but are not limited to, those related to the Company's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the Company's product, the strength of intellectual property, the success of research and development programs, the trust invested in sub-contractors or their core personnel as well as other risks and uncertainties that are put forth every now and then by the Company in the documents filed with 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 (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypotheses taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

These statements are correct only on the date on which they were written, and Management disclaims any obligation to revise these statements after any event, circumstance or other situation, except as required by law. 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: Sylvain Boucher, President and CEO - Ergoresearch Ltd., Tel.: 450-973-6700, ext. 213 / sboucher@ergoresearch.com

RELATED LINKS
http://www.ergoresearch.com/

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