MISSISSAUGA, Ontario, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator and exporter, reports results for its third quarter and nine months of fiscal 2021 ending June 30, 2021 (“Q3” and “YTD”), with record sales and earnings, plus progress upon its strategic goal of increasing the proportion of revenues derived from innovative, proprietary, and branded medical devices.
Management Discussion
Q3 revenues were up 88% from 2020, achieving a record level of $5.45 million as Microbix continues to emphasize operational excellence and the sale of innovative, proprietary, and branded medical devices. Sales of its test quality assessment products (“QAPs™”) for Q3 increased 84% from the same period in fiscal 2020 (“Q3 2020”). Microbix’s newest product line, viral transport medium (branded “DxTM™”) also contributed, with Q3 sales of nearly $2 million. Finally, sales of antigens and product royalties were similar to 2020 but with improved margins. In summary, all sales were at solid gross margins and together resulted in strong EBITDA and record operating and net income.
Microbix continues to pursue growth in sales of its medical devices and expects that subsequent quarters will realize positive net earnings, as have each of Q1, Q2, and Q3 of fiscal 2021.
Third Quarter 2021 Financial Results
Q3 revenue was $5,451,834, an 88% increase from Q3 2020 revenues of $2,898,328. Included were antigen revenues of $2,398,068 (Q3 2020 - $2,245,912) and QAPs revenues were $1,051,618 (Q3 2020 - $570,148) for segment growth of 84%. In turn, revenue from DxTM was $1,924,300 (Q3 2020 - nil), and royalties were $76,948 (Q3 2020 - $82,268). Microbix’s Q3 sales growth was most influenced by initial Ontario-driven deliveries of DxTM, followed by continuing diagnostics industry uptake of QAPs, and helped by stable antigen sales with a product mix that provided good margins.
Q3 gross margin was 63%, up from 47% in Q3 2020, due to a greater proportion of sales of QAPs, new VTM sales, the effects of antigen product sales mix, and improved bioreactor antigen margins.
Operating expenses in Q3 increased by 7% relative to Q3 2020, primarily due to the impact of the fluctuations in foreign currencies versus the prior year. Overall, greater sales and more available gross margin dollars during Q3 led to an operating income and net income of $1,516,178 versus an operating and net loss of $440,233 in Q3 2020. Cash used in operating activities was $683,335, compared to $764,707 in Q3 2020, with the decrease coming primarily from changes in non-cash working capital (large increases in accounts receivable and small decreases in accounts payable) which more than offset the favourable year-over-year growth in net income.
YTD (9 months 2021) Financial Results
YTD revenue was $12,963,266, a 66% increase from prior year (“YTD 2020”) revenue of $7,819,172. Included were antigen product revenues of $7,061,161 (YTD 2020 - $6,550,289), a recovery of 8%. QAPs revenues were $3,509,177, an increase of 243% from YTD 2020 sales of $1,022,153. Finally, DxTM was $2,179,300 (YTD 2020 - nil) and royalties were $213,679 (YTD 2020 - $246,730). YTD sales were most influenced by the uptake of Microbix’s COVID-19 related QAPs, especially PROCEEDx™FLOQ® and REDx™FLOQ®, followed by the start of DxTM sales, and then the beginning of a recovery in antigen sales.
Gross margin YTD was 60%, up from 48% in YTD 2020, due to significant increase in higher margin QAPs sales, the start of DxTM sales, and changes in Antigens product mix & yields. YTD operating expenses increased by 8% from 2020, primarily due to year-over-year incremental foreign exchange losses. Stronger sales and gross margins YTD led to a net profit of $2,454,461 versus a net loss of $1,244,528 in YTD 2020. Cash provided by operations was $485,115, compared to $224,648 in YTD 2020.
At the end of Q3, Microbix’s current ratio (current assets divided by current liabilities) was 4.02 and its debt to equity ratio (total debt over shareholders’ equity) was 0.55.
| FINANCIAL HIGHLIGHTS | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| As at and for the quarter ended | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||
| Total Revenue | $ | 5,451,834 | $ | 2,898,328 | $ | 12,963,266 | $ | 7,819,172 | |||||||
| Gross Margin | 3,445,814 | 1,355,595 | 7,798,217 | 3,719,942 | |||||||||||
| SG&A Expenses | 1,384,951 | 1,244,369 | 3,856,512 | 3,324,706 | |||||||||||
| R&D Expense | 271,503 | 294,774 | 685,663 | 837,726 | |||||||||||
| Financial Expenses | 273,182 | 256,685 | 801,581 | 802,038 | |||||||||||
| Operating Income (Loss) for the period | 1,516,178 | (440,233 | ) | 2,454,461 | (1,244,528 | ) | |||||||||
| Net Income (Loss) and Comprehensive Income (Loss) for the period | 1,516,178 | (440,233 | ) | 2,454,461 | (1,244,528 | ) | |||||||||
| Cash Provided (Used) by Operating Activities | (683,335 | ) | 764,707 | 485,115 | 224,648 | ||||||||||
| June 30, 2021 | September 30, 2020 | ||||||||||||||
| Cash | 7,506,506 | 92,661 | |||||||||||||
| Accounts receivable | 4,180,464 | 1,877,009 | |||||||||||||
| Total current assets | 16,805,249 | 6,492,832 | |||||||||||||
| Total assets | 25,863,846 | 15,598,011 | |||||||||||||
| Total current liabilities | 4,180,464 | 4,090,038 | |||||||||||||
| Total liabilities | 9,149,513 | 8,978,534 | |||||||||||||
| Total shareholders' equity | 16,714,333 | 6,619,477 | |||||||||||||
| Current ratio | 4.02 | 1.59 | |||||||||||||
| Debt to equity ratio | 0.55 | 1.36 | |||||||||||||
Corporate Outlook
Microbix will continue to drive sales growth across all of its three revenue-generating business lines, and work to keep improving percentage gross margins and driving bottom-line results. Management currently expects Microbix to generate meaningful net earnings in Q4 and for full-year fiscal 2021. Additionally, work continues upon securing a partnership to advance its Kinlytic® urokinase project.
Adelaide Capital will host a live webinar with management, on Monday August 16th at 11am ET. Please register here: https://us02web.zoom.us/webinar/register/WN_7NqOAfIRQiOEtr9V6n0tEg. It will also be live-streamed to YouTube at: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.
A replay of the webinar will also be made available on Adelaide Capital’s YouTube channel.
About Microbix Biosystems
Microbix develops proprietary biological technology solutions for human health and well-being, with about 90 skilled employees and sales nearing C$ 2.0 million per month. It makes a wide range of critical biological materials for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Microbix antigens enable the antibody tests of over 100 international diagnostics companies, while its QAPs are sold to clinical laboratory accreditation organizations, diagnostics companies, and clinical laboratories. Microbix QAPs are now available in over 30 countries, distributed by 1WA (Oneworld Accuracy Inc.), Alpha-Tec Systems, Inc., Diagnostic International Distribution SpA., Labquality Oy, The Medical Supply Company of Ireland, R-Biopharm AG, SDT Molecular Pte Ltd, Seegene Canada Inc., and Thomas Scientific LLC. Microbix is ISO 9001 and 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides CE marked products.
Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably viral transport medium (DxTM™) to stabilize patient samples for lab-based diagnostic testing and Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots. Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.
Forward-Looking Information
This news release includes “forward-looking information,” as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of financial results or the outlook for the business, risks associated with its financial results and stability, its current or future products, development projects such as those referenced herein, sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company’s judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.
Please visit www.microbix.com or www.sedar.com for recent Microbix news and filings.
For further information, please contact Microbix at:
| Cameron Groome, CEO (905) 361-8910 | Jim Currie, CFO (905) 361-8910 | Deborah Honig, Investor Relations Adelaide Capital Markets (647) 203-8793 ir@microbix.com | Jim Macdonald, Investor Relations Torrey Hills Capital (858) 456-7300 jm@sdthc.com |
Copyright © 2021 Microbix Biosystems Inc.
Microbix®, DxTM™, Kinlytic®, and QAPs™ are trademarks of Microbix Biosystems Inc.
PROCEEDx™FLOQ® and REDx™FLOQ® are trademarks of the Company in collaboration with Copan Italia S.p.A.
