MISSISSAUGA, Ontario, Feb. 10, 2022 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator and exporter, reports results for its first quarter ended December 31, 2021 (“Q1”), with record sales and earnings, plus ongoing progress upon its strategic goal of increasing the proportion of revenues derived from medical devices to thereby continue growing sales, margins, and earnings.
Management Discussion
Q1 revenues achieved a record level of $4.9 million, up 54% from Q1 2021, as Microbix continues to emphasize operational excellence and the sale of innovative, proprietary, and branded medical devices. Microbix’s viral transport medium (branded “DxTM™”) contributed strongly, with Q1 sales of $1.8 million versus zero in Q1 2021. Sales of antigens in Q1 were also $1.8 million (with improved margins) and royalties were higher than Q1 2021. Sales of test quality assessment products (“QAPs™”) for Q1 increased to $1.1 million, up 19% from Q1 2021. Overall, sales achieved a very favourable gross margin of 66% for Q1, in comparison to 55% in Q1 2021, 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 materially-positive net earnings, as were achieved in fiscal 2021.
Quarter Ending December 31, 2021 (“Q1”)
Q1 revenue was $4,855,600, a 54% increase from Q1 2021 revenues of $3,157,659. Included were DxTM revenues of $1,817,245 (Q1 2020 – nil), for strong segment performance. Antigen revenues were $1,766,416 (Q1 2020 - $2,137,829) down year-over-year but with a margin-favourable product mix in the quarter. QAPs revenues were $1,149,151 (Q1 2020 - $962,421) for segment growth of 19% and reflective of both seasonality and some of Microbix’s diagnostics industry customers pausing orders prior to launching new tests or test-platforms. Finally, royalties were $122,787 (2020 - $57,409). Q1 2022 sales growth was most influenced by Ontario-driven deliveries of DxTM, followed by continued diagnostics industry uptake of QAPs, and partly offset by weaker year-over-year antigen sales.
Q1 gross margin was 66%, up from 55% in Q1 2021, due to a greater proportion of sales of QAPs, new DxTM sales, and the effects of a favourable antigen product sales mix – all of which helped to improve margins.
Operating expenses in Q1 increased by 45% relative to Q1 2021, due to increased investment in R&D, additional selling and marketing spend, lack of eligibility for any Canada Emergency Wage Subsidies and no OTF grant funding (vs. Q1 2021). Overall, greater sales and more available gross margin dollars during Q1 led to operating and net income of $880,778 versus a Q1 2021 operating and net income of $130,819 (an increase of 573%). Cash used in operating activities was $284,014, compared to cash provided of $186,802 in Q1 2021, with most of the change from higher accounts receivables connected to late Q1 sales.
At the end of Q1, Microbix’s current ratio (current assets divided by current liabilities) was 5.20 and its debt to equity ratio (total debt over shareholders’ equity) was 0.41.
| Financial Highlights | |||||||
| As at and for the quarter ended | December 31, 2021 | December 31, 2020 | |||||
| Total Revenue | $ | 4,855,600 | $ | 3,157,659 | |||
| Gross Margin | 3,221,858 | 1,747,298 | |||||
| SG&A Expenses | 1,635,869 | 1,156,198 | |||||
| R&D Expense | 464,461 | 197,878 | |||||
| Financial Expenses | 240,750 | 262,403 | |||||
| Operating Income for the period | 880,778 | 130,819 | |||||
| Net Income and Comprehensive Income for the period | 880,778 | 130,819 | |||||
| Cash Provided (Used) by Operating Activities | (284,014 | ) | 186,802 | ||||
| December 31, 2021 | September 30, 2021 | ||||||
| Cash | 10,495,425 | 9,986,312 | |||||
| Accounts receivable | 5,560,421 | 4,175,116 | |||||
| Total current assets | 21,548,304 | 19,094,482 | |||||
| Total assets | 31,226,090 | 28,829,034 | |||||
| Total current liabilities | 4,146,227 | 5,194,194 | |||||
| Total liabilities | 9,028,326 | 10,272,890 | |||||
| Total shareholders' equity | 22,197,764 | 18,556,144 | |||||
| Current ratio | 5.20 | 3.68 | |||||
| Debt to equity ratio | 0.41 | 0.55 | |||||
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 Monday, February 14th at 2pm ET. Please register here: https://us02web.zoom.us/j/87083843651?pwd=Vm8wN3laU0hmcVpLemt3K3FiRWx0Zz09.
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 |
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Microbix®, DxTM™, Kinlytic®, and QAPs™ are trademarks of Microbix Biosystems Inc.
