Immunotec, a direct-to-consumer company and a leader in the nutritional industry (the Company or Immunotec), today announced its year-end consolidated financial results for Fiscal 2014. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.
We are pleased to report record full-year revenues and Adjusted EBITDA(1) in Fiscal 2014 fuelled by solid growth in our activities outside of Canada and operational leverage, said Mr. Charles L. Orr, Chief Executive Officer.
We are currently addressing some challenges related to our recent implementation of value-added taxes (VAT) in Mexico. More importantly, a growing number of consultants and customers throughout the world are experiencing the tangible benefits of Immunotec's products and the business opportunities provide by our business model, concluded Mr. Orr.
Fiscal 2014 consolidated revenues increased 47.5% over the same period last year to $80.8M. This increase was recorded consistently throughout the year in both Mexico and the rest of North America, totalling 92.9% and 12.9%, respectively.
Sponsoring, defined as the number of new Consultants and Customers, increased 85.2% over the same period last year to nearly 64,000 in Mexico while the rest of North America, increased 26.7% to nearly 20,000.
During the year, the Company recorded an increase in field incentives, which reached 56.4% of network sales compared to 51.9% in the previous year. Field incentives are the Company's most significant expense and consist of commissions from product sales, performance bonuses and other promotional incentives provided to qualifying independent consultants. The increase, when compared to the previous year, is a reflection of increases in various sponsoring1 activities, which have resulted in higher revenues and leadership rank advancements.
During the year, the Company was able to reduce its selling, general and administrative expenses as a percentage of total revenues to 18.6% compared to 23.0% in the previous year. This improvement reflects a continuous disciplined management of corporate expenses.
Other expenses during the year, include a commodity tax expense provision of $5.5M. The Company has filed an appeal with the Mexican Supreme Court during the fourth quarter. Also, the Company started charging a 16% of value added tax (VAT), effectively 1 October 2014 on additional products sold in Mexico. This action mitigates future taxation risk associated with this interpretation from the Mexican tax authority. More information is available in the Contingencies section of the Management Discussion and Analysis.
Adjusted EBITDA(1) for the year ended 31 October 2014 amounted to $5.0M or 6.2% of total revenues compared to $2.9M or 5.2% in the same periods in the previous year.
Net loss for the year ended 31 October 2014 totalled $2.7M compared to a net profit of $1.4M for the previous year. Total basic and fully diluted net loss per common share for year ended 31 October 2014 was $0.04 compared to a total basic and fully diluted net profit of $0.02 in the previous year.
About Immunotec Inc.
Immunotec is a Canadian-based Company that develops, manufactures, markets and sells research-driven nutritional products through direct-to-consumer sales channels primarily in Canada, the U.S. and Mexico. The Company offers an extensive family of nutritional products targeting health, wellness, weight management, as well as energy and fitness. The Immunocal family of products is supported by over 40 published articles and supporting science in medical and scientific literature.
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