22:26:58 EDT Thu 28 Mar 2024
Enter Symbol
or Name
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CA



Neptune Technologies & Bioressources Inc
Symbol NTB
Shares Issued 77,945,548
Close 2016-05-25 C$ 1.49
Market Cap C$ 116,138,867
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Neptune Technologies loses $10.8-million in fiscal 2016

2016-05-25 17:17 ET - News Release

Mr. Jim Hamilton reports

NEPTUNE ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS

Neptune Technologies & Bioressources Inc. is releasing its financial and operating results for the fourth quarter and fiscal year ended Feb. 29, 2016. All amounts are in Canadian dollars.

Fourth quarter financial and operational highlights (Neptune nutraceutical segment):

  • Revenues of $10.0-million, up 161 per cent versus last year;
  • Gross margin on sales rose to 27 per cent;
  • Nutraceutical segment generated positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $658,000, compared with a loss of $7.8-million a year ago;
  • Fourth quarter closing cash balance of $3.5-million;
  • Realized 50 per cent of $5.0-million cost savings plan;
  • Canada now one of only two countries that can export krill oil to China opening new opportunities;
  • Neptune receives first Chinese orders.

"For the past 12 months, we were pleased to deliver sequential quarter-over-quarter improvements in the nutraceutical segment leading to a positive adjusted EBITDA in the fourth quarter," stated Jim Hamilton, president and chief executive officer of Neptune. "The financial contribution and integration of Biodroga is well on track, supporting our strategy to move up the value chain as we create a more diversified nutrition products company with fast-growing market opportunities.

"Despite certain competitive supply and consumer demand headwinds in North America and Australia with regards to the Krill business, we have significantly improved our operations and manufacturing cost base in fiscal 2016. We are excited about the recent approval to sell krill oil in the Chinese market, and received our first orders for that large and fast-growing market.

"In fiscal 2017, we expect significant growth in revenues and adjusted EBITDA for the nutraceutical segment, considering the acquisition and overall operating efficiencies. At this time, for the nutraceutical segment, we expect revenue to be greater than the last 12-month fiscal 2016 revenues pro forma of $41-million and a double-digit adjusted EBITDA margin assuming constant currencies," concluded Mr. Hamilton.

Productivity initiatives driving margin improvements

Project Turbo, a company-wide initiative to drive efficiencies and operating performance, was put in place during the second quarter of fiscal 2016. To date (as of Feb. 29, 2016), approximately 50 per cent of total expected cost savings or approximately $5.0-million were realized.

Nutraceutical business results:

  • Nutraceutical revenues were $10.0-million for the three-month period ended Feb. 29, 2016, versus $3.8-million in the fourth quarter ended Feb. 28, 2015.
  • Adjusted EBITDA was $658,000 for the current quarter, compared with a non-IFRS (international financial reporting standards) operating loss of $7.8-million in the prior year. This represents the first quarter of positive EBITDA since 2012.
  • Net income was $963,000 for the current quarter, versus a net loss of $9.1-million in the prior year.
  • Nutraceutical revenues were $23.0-million for the year ended Feb. 29, 2016, versus $15.0-million for the year ended Feb. 28, 2015.
  • Non-IFRS operating loss was $4.6-million for the year ended Feb. 29, 2016, improving over $24.5-million for the corresponding prior-year period.
  • Net loss was $6.8-million for the year ended Feb. 29, 2016, improving over a net loss of $30.6-million for the corresponding prior-year period.

The nutraceutical segment fourth quarter EBITDA improvement was mainly driven by higher revenues and a stronger gross margin related to cost-reduction initiatives, including plant efficiencies and the Biodroga acquisition contribution. The net income reflects stronger revenues, a significant gross margin improvement, along with the recognition of deferred tax assets. In comparison, the prior-year net loss included plant ramp-up costs.

"We ended fiscal 2016 with a cash balance $3.5-million. On April 20, we announced a term loan financing of $4-million that could reach up to $10-million under certain conditions. For the first quarter of fiscal 2017, we expect revenues of approximately $11-million and another positive adjusted EBITDA for our nutraceutical segment. We have the funds in place to support our growth strategy and we anticipate that our results will improve significantly year over year," indicated Mario Paradis, vice-president and chief financial officer.

Update on Acasti Pharma Inc., a 48-per-cent-owned subsidiary of Neptune (For more information, see separate news release issued today.)

On May 12, 2016, Jan D'Alvise was appointed president and CEO of Acasti Pharma, effective June 1, 2016. Ms. D'Alvise is an accomplished executive with experience in large, public multinational companies, as well as in private start-ups in the life sciences industry. Her exceptional record includes leadership roles across the enterprise life cycle, from start-up to commercialization and growth. Ms. D'Alvise has established strategic partnerships of substantial value and secured significant financing through institutional investors.

On Dec. 16, 2015, Acasti announced that it had made important progress in its correspondence with the U.S. Food and Drug Administration (FDA) regarding next steps in the development plans for CaPre. "As planned, we initiated and recently completed subject enrolment for the bioavailability bridging study," highlighted Pierre Lemieux, PhD, Acasti's chief operating officer. "We are expecting results of the study before the end of the year, which should confirm our chosen regulatory pathway."

Consolidated results:

  • Consolidated revenues totalled $10.0-million for the three-month period ended Feb. 29, 2016, up from $4.0-million for the quarter ended Feb. 28, 2015;
  • Non-IFRS operating loss of $493,000 for the current quarter, versus $10.0-million in the prior year;
  • Net loss was $379,000 for the current quarter, versus a net loss of $10.7-million in the prior year;
  • Consolidated revenues totalled $22.6-million for the year ended Feb. 29, 2016, compared with $15.1-million for the corresponding prior-year period;
  • Non-IFRS operating loss of $11.2-million for the year ended Feb. 29, 2016, versus $32.9-million for the corresponding prior-year period;
  • Net loss was $10.8-million for the year ended Feb. 29, 2016, versus a net loss of $29.8-million in the corresponding prior-year period.

On a consolidated basis, the current quarter includes a non-IFRS operating loss of $1.2-million and a net loss of $1.9-million for Neptune's subsidiary, Acasti, which is actively engaged in clinical studies, and research and development. In the corresponding prior-year quarter ending Feb. 28, 2015, Acasti recorded a non-IFRS operating loss of $2.3-million and a net loss of $2.3-million.

Cash flows

Consolidated cash and short-term investments were $13.0-million as at Feb. 29, 2016, including $10.5-million for Acasti. The corporation also has restricted short-term investments of $3.0-million as at Feb. 29, 2016.

Conference call details

Neptune will be holding a conference call on May 26, 2016, at 8:30 a.m. ET, to present its results for the fourth quarter and fiscal year ended Feb. 29, 2016.

Date:  Thursday, May 26, 2016

Time:  8:30 a.m. Eastern Time

Conference ID:  11355723

Call:  1-877-223-4471 (within Canada and the United States) or 1-647-788-4964 (outside Canada and the U.S.) (Please dial in 15 minutes before the call begins.)

Webcast:  A live audio webcast will be available.

An archived recording of the conference call will also be available on Neptune's website shortly after the call.

We seek Safe Harbor.

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