EASTAMPTON, N.J., Nov. 11, 2014 (GLOBE NEWSWIRE) -- Revenue for Q1 at $2.3 million was 46% higher than last year's Q1 and set a new company Q1 record. This record follows five previous consecutive quarterly records. Sales were broad based with first quarter increases in every world region. High demand for Epicore (TSX-V:EBN) products comes from producers trying to capitalize on record high shrimp prices and on our successful marketing programs. Early Mortality Syndrome (EMS) in Asia and Mexico has reduced the worldwide supply of shrimp, which in turn has pushed shrimp prices to record levels. World consumption of shrimp has decreased slightly but producer profit is at record highs. Net income increased by 135% to deliver earnings per share of $0.016.
Some highlights versus prior fiscal year quarter one were as follows:
- Revenue increased by 46% over last year's Q1
- Gross profit increased by 28% over Q1 last year
- Operating expenses increased by 10% compared to last year's Q1
- Net income increased by 135% versus last year's Q1
- EBITDA increased by 72% compared to last year's Q1
- Cash was $1.3 million higher than prior year Q1
- Shareholder equity increased over prior year Q1 by 25% to $7.2 million
Gross profit was 28% higher than prior year quarter one. Most of the increase was due to higher sales revenue. Sales mix yielded higher average selling price but the mix had higher costs that adversely affected gross profit. Higher dry feed raw material costs had a negative impact on Q1 gross profit.
Operating expense increased 10%, from personnel areas and administrative costs. Selling expense increased due to travel and advertising needed to support sales growth. Employee expenses increased due to inflationary and merit pay increases and due to higher Ecuadorian profit sharing expense.
Higher gross profit combined with the modest operating expense increase to produce record Q1 net income that was 135% higher than prior year Q1. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 72% over prior year from $0.3 million to $0.6 million. The following table summarizes the Q1 results (rounded to thousands of US dollars):
| For the Quarter ended September 30 | ||||||||
| 2014 | 2013 | Increase (Decrease) | ||||||
| Revenue | $2,349 | $1,614 | $735 | 46% | ||||
| Gross profit | $1,377 | $1,072 | $305 | 28% | ||||
| Operating expenses | $815 | $740 | $75 | 10% | ||||
| Net income | $397 | $169 | $228 | 135% | ||||
| Earnings per share | $0.016 | $0.007 | $0.009 | 129% | ||||
| Shareholders' equity | $7,160 | $5,711 | $1,449 | 25% | ||||
| Cash balance | $3,270 | $1,968 | $1,302 | 66% | ||||
Epicore continues to generate positive cash flows from operating activities. Cash at the end of the quarter was $3.3 million. With these funds, expected sales revenue growth and continued relatively low operating costs, management expects there will be sufficient cash to meet the fiscal year's financial requirements, to fund expansion of aquaculture and environmental remediation marketing efforts and to pursue new strategies for enhancing shareholder value.
The financial statements of the company have been prepared in accordance with International Financial Reporting Standards. Epicore BioNetworks Inc. is a public corporation with a registered office in Calgary, Alberta, Canada and with shares listed on the TSX Venture Exchange (symbol EBN). [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.]
This press release contains forward-looking statements that involve significant risks and uncertainties. The actual results, performance or achievements of the company might differ materially from the results, performance or achievements of the company expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, those regarding the future growth of the Company and the expectation by management that there will be sufficient cash to meet the fiscal year's financial requirements. We can provide no assurance that the expected timing or results of such development will be realized or that the company will be able to generate sufficient cash to meet its obligations. We are subject to various risks, including the uncertainties of product development, markets for our products and regulatory review, our need for additional capital to fund our operations, our reliance on collaborative partners, our history of losses, and other risks inherent in the biotechnology industry.
For more information, please contact: Mr. William P. Long (Chief Executive Officer) USA. Tel: 609-267-9118, Email: Investors@EpicoreBioNetworks.com