MISSISSAUGA, Ontario, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator and exporter, reports results for its year and fourth quarter ended September 30, 2021 (“2021” and “Q4”), with record sales and earnings, plus progress upon its strategic goal of increasing the proportion of revenues derived from medical devices.
Management Discussion
2021 revenues were up 77% from 2020, achieving a record level of $18.6 million as Microbix continues to emphasize operational excellence and the sale of innovative, proprietary, and branded medical devices. Sales of test quality assessment products (“QAPs™”) for 2021 increased 208% from fiscal 2020. Microbix’s new product line, viral transport medium (branded “DxTM™”) also contributed, with 2021 sales of $4.5 million. Finally, sales of antigens and product royalties were slightly higher than 2020 but with improved margins. Overall, sales achieved a favourable gross margin of 59% for fiscal 2021, in comparison to 44% in fiscal 2020 and resulted in strong EBITDA and record operating and net income.
Microbix continues to pursue growth in sales of its medical devices and expects that fiscal 2022 will realize positive net earnings, as for fiscal 2021.
Year ending September 30, 2021 (“2021”)
2021 revenue was $18,592,960, a 77% increase from prior-year revenue of $10,524,904. Included were antigen product revenues of $9,082,021 (2020 - $8,702,109), a recovery of 4%. QAPs revenues were $4,704,671, an increase of 208% from 2020 sales of $1,527,998. Finally, DxTM revenues were $4,506,900 (2020 - nil) and royalties were $299,368 (2020 - $294,797). 2021 sales growth was most influenced by the start of DxTM sales, followed by the broadening uptake of Microbix’s respiratory-disease related QAPs, especially PROCEEDx®FLOQ® and REDx™FLOQ®, and then a modest recovery in antigen sales.
2021 Gross margin was 59%, up from 44% in 2020, due to significant increase in higher margin QAPs sales, the start of DxTM sales, and changes in antigens product mix and improved yields. 2021 operating expenses increased by 20% from 2020, primarily due to year-over-year incremental foreign exchange losses, increased investment in sales and marketing, and U.S. investor relations efforts. Full-year fiscal 2021 interest accretion expenses related to debentures were up due to a $517,651 one-time and non-cash charge related to the proposed early repayment of the $1.3 million outstanding balance on a non-convertible debenture, repayment of which was made on October 1, 2021.
Stronger sales and improved gross margins led to an operating income of $4,836,595 and net income of $3,233,390 versus an operating loss of $524,601 and a net loss of $6,227,525 in 2020 (which included one-time write-downs totaling $4.6 million). Cash provided by operations (“CFO”) was $2,106,736, compared to $8,566 in 2020, influenced by growth in accounts receivable, offset by strong operating income.
At the end of 2021, Microbix’s current ratio (current assets divided by current liabilities) was 3.68 and its debt to equity ratio (total debt over shareholders’ equity) was 0.55. Both of these financial health ratios are materially improved from fiscal 2020.
Quarter Ending September 30, 2021 (“Q4”)
Q4 revenue was $5,629,694, a 108% increase from 2020 revenues of $2,705,732. Included were antigen revenues of $2,020,861 (2020 - $2,151,767). QAPs revenues were $1,195,545 (2020 - $505,898) for segment growth of 136%. In turn, revenue from DxTM was $2,327,600 (2020 - nil), and royalties were $85,689 (2020 - $48,067). Q4 2021 sales growth was most influenced by Ontario-driven deliveries of DxTM, followed by continued diagnostics industry uptake of QAPs, and helped by stable antigen sales at improved margins.
Q4 gross margin was 58%, up from 35% in Q4 2020, due to a greater proportion of sales of QAPs, new VTM sales, the effects of antigen product sales mix, and improving bioreactor-made antigen yields.
Operating expenses in Q4 increased by 63% relative to Q4 2020, due to increased investment in R&D/Sales and lack of eligibility for Canada Emergency Wage Subsidies during Q4 of fiscal 2021. Interest accretion expenses related to debentures were up by $501,878, for the reasons described in the above financial overview for 2021. Overall, greater sales and more available gross margin dollars during led to an operating income of $1,580,553 and net income of $778,929 versus a Q4 2020 operating loss of $82,111 and net loss of $4,982,997 (the net loss including one-time write-downs). Cash from operating activities was $1,621,621, compared to cash used of $216,083 in Q4 2020, with the majority of the increase coming from the favourable year-over-year growth in net income.
| FINANCIAL HIGHLIGHTS | ||||||||||||||||
| For the years ended September 30 | For the quarter ended September 30 | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Total Revenue | $ | 18,592,960 | $ | 10,524,904 | $ | 5,629,694 | $ | 2,705,732 | ||||||||
| Gross Margin | 11,043,940 | 4,660,897 | 3,245,723 | 940,955 | ||||||||||||
| S,G&A Expenses | 5,174,091 | 4,172,372 | 1,317,579 | 847,666 | ||||||||||||
| R&D Expense | 1,033,254 | 1,013,126 | 347,591 | 175,400 | ||||||||||||
| Operating Income (Loss) before Impairment of Assets, Interest Accretion Expense and Finance Expenses | 4,836,595 | (524,601 | ) | 1,580,553 | (82,111 | ) | ||||||||||
| Impairment of long-lived assets | - | 3,078,585 | 3,078,585 | |||||||||||||
| Interest accretion expense on debenture due to planned redemption, non cash | 517,651 | - | 517,651 | - | ||||||||||||
| Finance Expenses | 1,085,554 | 1,056,102 | 283,973 | 299,746 | ||||||||||||
| Income (Loss) before Income taxes | 3,233,390 | (4,659,288 | ) | 778,929 | (3,460,442 | ) | ||||||||||
| Net Comprehensive Income (Loss) for the period | 3,233,390 | (6,227,525 | ) | 778,929 | (4,982,997 | ) | ||||||||||
| Net Comprehensive Income (Loss) per share | 0.028 | (0.059 | ) | 0.006 | (0.047 | ) | ||||||||||
| Cash Provided (Used) by Operating Activities | 2,106,736 | 8,566 | 1,621,621 | (216,083 | ) | |||||||||||
| Cash | 9,986,312 | 92,661 | ||||||||||||||
| Accounts receivable | 4,175,116 | 1,877,009 | ||||||||||||||
| Total current assets | 19,094,482 | 6,492,832 | ||||||||||||||
| Total assets | 28,829,034 | 15,598,011 | ||||||||||||||
| Total current liabilities | 5,194,194 | 4,090,038 | ||||||||||||||
| Total liabilities | 10,272,890 | 8,978,534 | ||||||||||||||
| Total shareholders' equity | 18,556,144 | 6,619,477 | ||||||||||||||
| Current ratio | 3.68 | 1.58 | ||||||||||||||
| Debt to equity ratio | 0.55 | 1.38 | ||||||||||||||
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 growth across fiscal 2022. Additionally, work continues upon securing a partnership to advance its Kinlytic® urokinase project.
Adelaide Capital will host a live webinar with management, on Tuesday, January 4th at 11am ET. Please register here: https://us02web.zoom.us/webinar/register/WN_GCJXxhYSSQS6JaInxvKNrQ. 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 100 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.
