IBEX REPORTS RESULTS FOR THE SECOND QUARTER AND THE SIX MONTHS ENDED JANUARY 31, 2020
MONTRÉAL, March 26, 2020 (GLOBE NEWSWIRE) -- IBEX Technologies Inc. (“IBEX” or the “Company”) (TSX Venture: IBT) today reported its financial results for the six months ended January 31, 2020.
“Despite a sales decline versus the same period year-ago we were pleased to report a positive EBITDA of $80,986”, said Mr. Baehr, IBEX President & CEO. “This sales decline is due to customer purchasing patterns and is expected to correct itself in the third quarter. We were also pleased to report that the contribution to earnings resulting from the closure of our Iowa operation is beginning to show in the financial results. As to COVID-19: as an “Essential Service” IBEX will continue with the production of reagents and components for critical care diagnostic tests, as long as our staff are healthy” said Mr. Baehr, “and along with existing inventories, we expect to be able to fulfill customer demand”.
Note: All figures are in Canadian dollars unless otherwise stated. The Company’s audited consolidated financial statements for the year ended July 31, 2019 and the accompanying notes and the related management’s discussion and analysis can be found on the Company’s website at www.ibex.ca or under the Company’s profile on SEDAR at www.sedar.com.
FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 2020
Revenues for the quarter ended January 31, 2020 totaled $1,004,861 and were down $427,771 compared to a very strong quarter ($1,432,632) in the same period of the prior year. The decrease in revenues traces mainly to changes in quarterly purchasing patterns on the part of several of our major customers.
Operating Expenses at $1,033,864 were down $355,970, tracing in part to the closure of our facility in Iowa and a positive quarterly inventory adjustment of $142,290 (the difference between goods produced for inventory and the goods sold).
As a result, the Company recorded EBITDA of $80,986 vs. EBITDA of $111,616 in same period year ago.
It should be noted that “EBITDA” (Earnings Before Interest, Tax, Depreciation & Amortization) is not a performance measure defined by IFRS, but IBEX, as well as investors and analysts, consider that this performance measure facilitates the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program. Note that other public companies may use alternative definitions.