Second Quarter results - Fiscal 2015 - Ergoresearch reports its results for the quarter ended December 31, 2014.

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Mar 01, 2015, 20:15 ET

Second quarter of fiscal year 2015 highlights:

The Corporation merged its different divisions under one denomination called « Équilibre ». Hence, the «Clinique du Pied Équilibre», «Orthoconcept», «Laboratoire Podotech» and «Laboratoire Langelier» networks amalgamated and now operate under this one common banner.
- The Corporation held three clinics in the same area in Laval. Two of these clinics were closed and all activities and patients files were transferred to the Équilibre Laval branch.
The Company has launched important clinical studies (comparative study and cross-modality study) to increase the scientific literature on the benefits of the new distraction knee brace Odra. ( www.odra.ca )
Revenues decreased by 8.8 % and totaled $4 095 112 compared to $ 4 489 330 for the same period last year.
Net income after tax amounted to $ 1653 compared to $ 226 963 for the same period last year.
EBITDA reached $ 243 506 compared to $ 682 265 for the same period last year.
Total assets as of this past December 31 were at $ 33 490 157, including an amount of $ 10,455,500 in cash and temporary investments
The Company was designated on October 22, NATIONAL WINNER of the 2014 Desjardins Entrepreneur Award in the category "Innovation and Productivity – Medium Enterprises".
Sylvain Boucher, President and CEO of Ergoresearch was named among the three finalist for the award for CEO of the Year "Investissement Québec" – Quebec technology association

LAVAL, QC, March 1, 2015 /CNW Telbec/ - Ergoresearch Ltd (TSXV: ERG) – based in Laval and known under the «Équilibre, orthèses et biomécanique» banner – announces its results for the second quarter Ended on December 31, 2014. All dollar amounts in the present release are in Canadian currency.

Revenues for the second quarter of fiscal year 2015 ended this past December 31, 2014 totaled $ 4 095 112 decreasing by 8,8 % compared to revenues of $ 4 489 330 for the quarter ended December 31, 2013. This decrease is partly related to the following elements:

The closing of Podotech laboratory located in Laval and Laboratoire Langelier clinic also located in Laval. All activities and patients files were transferred to the Équilibre Laval branch.
The cessation of "Laboratoire Langelier" franchising activities.
The uncertainty related to the transition period required to merge all the banners of the group («Laboratoire Langelier, Laboratoire Podotech, Clinique du Pied Équilibre et Orthoconcept») into one unified banner.

Cash flow from operating activities increased by 7,3 % and amounted to $ 275 918 for the second quarter ended on December 31, 2014 compared to $ 257 106 for the same period last year. Net income after tax of the Corporation reached $ 1 653 compared to $ 226 962 for the same period last year. The declining results are in part caused by the closure of some offices and changing banners combined with the non- recurring investments for clinical studies launched this quarter.

Ergoresearch and its subsidiaries intend to pursue the growth of past years. To that end, the Corporation began the final stage of the integration of its recent acquisitions. This final phase is in three parts:

Merging all Quebec banners under one trademark (completed in September 2014).
Impliment the new personalized ERP software. This had been completed at 70% and the Corporation intends to fully complete the integration as of June 30, 2015
Simplifiy the corporate structure.

« In parallel, we will accelerate the commercialization of our products in the coming months (of which the « OdrA » device), we indeed initiated a clinical program aimed at increasing scientific evidence on the benefits of this patented product. Scientific evidence is the highway to a wider adoption of this revolutionary product by referring physicians.

Finally the Corporation is staying vigilant to any new acquisition opportunities. » declared Mr. Sylvain Boucher, President and CEO of Ergoresearch.

About Ergoresearch

Ergoresearch is a Canadian company that designs and manufactures cutting edge technologies for the orthopedic industry. The Company holds a portfolio of patents in the bionics field, including the intellectual property used in the Power Knee, the world's only motor-powered AI prosthesis for above-knee amputees. Ergoresearch designed and commercialized WebFit™, the first robotized custom-fit orthotics manufacturing software program and launched OdrA, a new category of orthotic that, with the action of its world-patented distraction-rotation action, revolutionizes the treatment of pain associated with knee osteoarthritis.

Ergoresearch owns the largest orthotics network in Quebec, now known as Equilibre. The Corporation is listed on the TSX Venture Exchange under the ERG symbol.

This document is not intended to encourage the purchase of securities listed on the TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the securities referenced here. 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, as these statements are subject to numerous uncertainties and risk factors. Such risk factors include, but are not limited to, those related to the Company's ability to finance its activities, competition, ability to negotiate and maintain partnerships, the market acceptance of the Company's product, the strength of intellectual property, the success of research and development programs, the trust invested in sub-contractors or their core personnel as well as other risks and uncertainties that are put forth every now and then by the Company in the documents filed with 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 (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypotheses taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

These statements are correct only on the date on which they were written, and Management disclaims any obligation to revise these statements after any event, circumstance or other situation, except as required by law. 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