Revenues of $5.1 million and Net Income of $0.25 million
MISSISSAUGA, Ontario, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix?), a life sciences innovator, manufacturer, and exporter, reports results for its third quarter and first nine months of fiscal 2024 ended June 30, 2024 (“Q3” and “YTD”) with strong revenues, reflective of ongoing progress to increase sales from its diagnostic-test related ingredients and devices businesses and resulting in material net income for Q3 and YTD.
Management Discussion Results for Q3 show robust growth in sales of Microbix’s test ingredients (“Antigens”) and test quality assessment products (“QAPs?”), which were collectively up by 20% versus prior year. The resulting revenues of C$ 5.1 million led to net earnings and continue to set the stage for a record full-year fiscal 2024. Microbix believes sales growth will continue for Antigens and QAPs, alongside satisfactory progress of Kinlytic toward FDA re-approval and re-launch into the U.S. market.
Quarter ending June 30, 2024 (“Q3”) Q3 revenue was $5,059,465, a decline from Q3 2023 revenues of $5,530,152, due to $1,348,500 in Kinlytic license fees being recorded in Q3 2023 that were non-recurring. Antigen sales grew by 26% to $3,276,469 (2023 - $2,608,527), while QAPs grew by 15% to $1,669,653 (2023 - $1,456,905). Revenue from royalties decreased to $113,343 (2023 - $116,226).
Q3 gross margin was 54%, up from Q3 2023 gross margins of 42%. Gross margins were primarily impacted by product mix and an increased weighting of Antigen revenues during the quarter. Operating and finance expenses in Q3 decreased by 10% relative to Q3 2023. Operating and finance expenses were down due to increased OTF grant income, lower IT implementation costs and a gain on debt modification relating to a favourable amendment to our FedDev agreement during the quarter.
Increased sales in our Antigen and QAPs businesses and higher gross margin dollars led to an operating income and net income of $246,746 versus a Q3 2023 operating loss and net loss of $769,108. Cash provided by operating activities was $1,403,494, compared to cash provided by operating activities of $2,131,358 in Q3 2023.
Period ending June 30, 2024 (“YTD”) YTD revenue was $19,100,251, a 56% increase from YTD 2023 revenues of $12,250,547. Included were antigen revenues of $9,341,607 (2023 - $6,615,040), up 41% from last year. QAPs revenues of $5,317,486 were up 37% from YTD 2023 (2023 - $3,892,090), due to a significant increase in sales of our PTDx?, PROCEEDx? and REDx? QAPs products. Revenue from royalties were $354,498 (2023 - $392,898). YTD revenues were also greatly influenced by the recognition of $4,086,660 in Kinlytic licensing milestone payments (2023 – $1,348,500). In summary, our YTD 2024 sales growth result has been driven by Kinlytic licensing revenues and significant growth in both our Antigens and QAPs businesses.
YTD gross margin was 63%, up from 49% in 2023, primarily due to the impact of Kinlytic licensing revenues and stronger Antigen and QAPs revenues. Operating expenses YTD increased by 9% relative to YTD 2023, principally due to US$ 500,000 in investment-banking fees related to our Kinlytic licensing agreement that were absorbed into G&A in accordance with IFRS accounting practices. In addition, YTD costs reflect the ongoing costs of our IT systems which began in the latter half of fiscal 2023 and amortization relating to the reversal of the impairment of the Kinlytic intangible asset, which began at the end of fiscal 2023. Our financing costs were reduced by a gain relating to a favourable amendment to our FedDev agreement during Q3.
Overall, strong YTD revenues and stronger margins led to an operating income and net income of $3,079,855 versus a YTD 2023 operating loss and net loss of $2,036,756. Cash provided by operating activities was $3,581,689, compared to cash provided by operating activities of $361,635, in YTD 2023, with much of the change coming from our increased operating income.
At the end of Q3, Microbix’s current ratio (current assets divided by current liabilities) was 6.62 and its debt to equity ratio (total debt over shareholders’ equity) was 0.35, both measures having improved from the prior year third quarter (Q3 2023) and the preceding fiscal year end (Q4 2023).
FINANCIAL HIGHLIGHTS
Three months ended
Nine months ended
For the three months and nine months ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Total Revenue
$
5,059,465
$
5,530,152
$
19,100,251
$
12,250,547
Gross Margin
2,748,054
2,342,885
11,941,355
6,056,140
SG&A Expenses
2,019,920
2,478,382
7,204,201
6,320,005
R&D Expense
562,820
531,121
1,542,920
1,482,004
Financial Expenses
(81,432
)
102,490
114,379
290,887
Operating Income (Loss) for the period
246,746
(769,108
)
3,079,855
(2,036,756
)
Net Income (Loss) and Comprehensive Income (Loss) for the period
246,746
(769,108
)
3,079,855
(2,036,756
)
Cash Provided (Used) by Operating Activities
1,403,494
2,131,358
3,581,689
361,635
As at
June 30, 2024
September 30, 2023
Cash
12,808,781
11,606,487
Accounts receivable
4,012,793
4,119,771
Total current assets
23,917,551
22,302,006
Total assets
37,732,590
35,653,024
Total current liabilities
3,615,088
4,349,942
Total liabilities
9,710,177
11,028,537
Total shareholders' equity
28,022,413
24,624,487
Current ratio
6.62
5.13
Debt to equity ratio
0.35
0.45
Corporate Outlook Microbix will continue to drive sales growth across all of its business lines, and work to keep improving percentage gross margins and driving bottom-line results. Management currently expects Microbix to generate meaningful year-over-year growth in revenues and net earnings across full-year fiscal 2024.
Furthermore, at 10:00 AM ET on Wednesday, August 14th, Microbix intends to hold a webinar discussion of Q3 2024 results with its CEO, CFO, and COO.
A replay of the webinar will also be made available on Adelaide Capital’s YouTube channel.
About Microbix Biosystems Inc. Microbix Biosystems Inc. creates proprietary biological products for human health, with over 100 skilled employees and annualized revenues now targeting C$ 2.0 million per month. It enables the worldwide commercialization of diagnostic assays by making a wide range of critical ingredients and devices 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. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 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 Kinlytic? urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (e.g., its DxTM? for patient-sample collection). 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 many material factors, some 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.
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