Results for the fourth quarter and the 2013 fiscal year ended June 30, 2013 - Ergoresearch reports solid 2013 annual results

KEY FINANCIAL ITEMS ‒ FISCAL 2013

Compared to Fiscal 2012:

• Revenues increased by 63.6%, from  $8,231,134 to $13,469,348;
• Net income amounted to $11,926,893.
• Excluding gain from business acquisition, non-recurring expenses from business acquisition and stock-based compensation expense, net income amounted to $875,952 this year compared to $675,610 for the year ended June 30, 2012;
• Net cash generated from operating activities rose to $1,251,329;
• Cash as of June 30, 2013 amounted to $6,678,585 ‒ up $5,233,356 over last fiscal year.
• Total assets amounted to $30,767,118, compared to $6,607,439 for the fiscal year ended on June 30, 2012
  
  

KEY OPERATING ITEMS ‒ FISCAL 2013

• Launch of the OdrA orthotic device, a new category of device called "distraction brace" aimed at alleviating pain related to knee osteoarthritis.
• Acquisition of Laboratoire Podotech inc.(October 2012)
• Acquisiton of Laboratoire Langelier (January 2013)
• In April 2013, acquisition of Victhom Human Bionics (TSXV: VHB), a Corporation which owns patents in the field of orthotics and prosthetics, including intellectual property used in the Power Knee, the world's first and only motor-powered prosthesis for above-knee amputees.
• Financing through a share issuance (private offering) in the gross amount of $6,360,000; issuance of 10,258,065 common shares
  
  

TSX-V: ERG

LAVAL, QC, Oct. 28, 2013 /CNW Telbec/ - Ergoresearch Ltd (″Ergoresearch″ or ″the Company″ or ″the Corporation″) is pursuing a growth strategy based on innovation and acquisitions. With this strategy, the Company is poised for accelerated growth in terms of sales and profitability.  Annual growth has amounted to 63.6% and revenues reached $13,469,348. Net income amounted to $11,926,893.

Excluding gain from a business acquisition, non-recurring expenses from a business acquisition and stock-based compensation expense, net income totaled $875,952 this year, compared to $675,610 for the year ended June 30 2012. As an important gain compared to last year, the Company assets amounted to $30,767,118 in June 2013. We are particularly proud to have generated considerable value to the Corporation with three acquisitions and the launch of a patented product aimed at relieving pain associated with knee osteoarthritis, in Quebec.

Among completed acquisitions, Laboratoire Langelier ranked second after Ergoresearch in the Quebec foot orthotics industry. In April 2013, Ergoresearch also concluded a transaction to acquire Victhom Human Bionics, a Quebec medical biotech firm. With this transaction Ergoresearch acquired significant patents in the field of orthotics and prosthetics, including intellectual property used in the Power Knee, the world's first and only motor-powered prosthesis for above-knee amputees. The "Power Knee" is produced and distributed under licence by one of the world leader in ortho-prosthetics, Össur.

Also, in April 2013, the Corporation issued shares through a private offering in the gross amount of $6,360,000. Today, the Corporation's cash position exceeds $6,000,000 and is in a promising position to execute the next steps in its growth strategy. "We will take advantage of the next few months to properly integrate our recent acquisitions, accelerate product promotion (including the OdrA orthotic device) and we'll remain observant in regards to new business acquisition opportunities", says Ergoresearch President and CEO, Mr. Sylvain Boucher

"The health care industry is growing and joint problems associated with aging contain numerous business opportunities. Ergoresearch is focused on taking advantage of these opportunities. Achieving business plan goals and increasing shareholding value remain at the heart of our every action, and will allow us to reach new heights in the next coming years" adds Mr. Boucher.

AWARDS AND RECOGNITION

In June 2013, Ergoresearch appeared for a third consecutive year on the prestigious roster of PROFIT 500 Canada's Fastest-Growing Companies, as one of the country's most successful 5-year performers. Three months later, its President and CEO was selected as a finalist for the second consecutive year on Ernst & Young Entrepreneur Of The Year Awards, with winners to be announced on October 31, 2013. This worldwide initiative rewards entrepreneurs who are innovative and ensure sustainable growth and job creation. The selection of finalists is based on their vision, their leadership, their corporate spirit and the prosperity of their firm.

About Ergoresearch

Ergoresearch has developed the most important network of orthotics clinics in Quebec, with over one hundred clinics and satellite centres flying under the banners of Clinique du pied Équilibre, Orthoconcept and Langelier Orthèses Chaussures. Quebec's leading manufacturer of "intelligent" foot orthotics and specialty orthotics, the Company is a trend-setter in creating durable medical equipment and software for the orthopedics market. Through its subsidiary Victhom Human Bionics, it now also owns patents in the field of bionics, including intellectual property for the Power Knee, the only worldwide motor-powered prosthesis with artificial intelligence designed for above-knee amputees.

Ergoresearch has also developed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program of its kind, launched the first Living Lab in Canada for knee osteoarthritis and more recently, a new world-patented orthotic device called the OdrA, that revolutionizes the treatment of pain associated with knee OA. Ergoresearch Ltd is listed on the TSX Venture Exchange (TSXV) under the symbol ERG.

This is not an invitation to purchase securities listed on TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the referenced securities or investment advisors. 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. Such risks factors include, but are not limited to, those related to the Corporation's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the said product, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, the success of research and development programs, fluctuations in cash flow, expectations regarding market demand for particular products, the strength of intellectual property, market dependence on new product development, the trust invested in sub-contractors or their core personnel, as well as other documents containing risks and uncertainties which are put forth every now and then by the firm to 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 the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or circumstances. 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

Source:
Sylvain Boucher, President and CEO - Ergoresearch Ltd
Tel.: [phone], x. 213 / [email protected]

Information: 
Émilie Vion, Communications Coordinator - Ergoresearch Ltd
Tel.: [phone], x. 242  / [email protected]