Mr. Paul Baehr reports

IBEX REPORTS RESULTS FOR THE FIRST QUARTER ENDED OCTOBER 31, 2023

IBEX Technologies Inc. has released its financial results for the three months ended Oct. 31, 2023.

"We were very pleased with the Q1 F2024 [fiscal 2024] results when compared to the corresponding quarter in 2022 and to the previous quarter, as results were slightly ahead of expectations," said Paul Baehr, IBEX president and chief executive officer.

Highlights:

• Revenues for the quarter were up 18 per cent versus the year-ago quarter and up 17 per cent versus the previous quarter.
• Earnings before tax were up 19 per cent versus the corresponding quarter in 2022 and 127 per cent versus the previous quarter.
• Quarter-ending cash and cash equivalents were $8.7-million.

Mr. Baehr further stated, "Looking forward, we expect F2024 results to be in line with F2023 [fiscal 2023]."

Highlights:

• Revenues are expected to be in the F2023 range, with continued strong growth in the hemostasis business.
• Partially offsetting the strong growth in sales of hemostasis reagents is the impact on revenues resulting from the company's decision to exit from the marginally profitable arthritis ELISA kit business.
• Earnings before tax for F2024 are expected to be in line with F2023.
• Year-end cash is expected to be above $10-million, an increase of 17 per cent versus F2023.

Note: The company's audited consolidated financial statements for the year ended July 31, 2023, and the accompanying notes, and the related management's discussion and analysis can be found on the company's website or under the company's profile on SEDAR+.

Financial results for the first quarter of fiscal 2024

Revenues for the quarter ended Oct. 31, 2023, totalled $2,058,206, an increase of $306,635 compared with the first quarter FY2023.

Expenses totalled $1,247,927, an increase of $174,863 versus $1,073,064 last year, mainly due to the company's decision to begin accruing for the profit-sharing plan this quarter ($150,000), as well as to an increase in business development consulting fees of $125,000, partially offset by a decrease in finance expenses of $49,047 (due primarily to the interest on the cash balances) as well as a decrease in changes in inventory allocation of $46,832.

Net earnings totalled $810,279, an increase of $131,772 as compared with Q1 FY2023.

The company recorded EBITDA (earnings before interest, taxes, depreciation and amortization) of $856,849 versus $741,232 in the same period a year ago.

It should be noted that EBITDA is not a performance measure defined by IFRS (international financial reporting standards), but the company, as well as investors and analysts, consider that this performance measure facilitates the evaluation of the company's continuing operations and the company's ability to generate cash flows to finance its cash requirements, including the company's capital expenditures program. Note that the company's definition of this measure may differ from the ones used by other public corporations.

Cash and cash equivalents increased by $198,601 during the three months ended Oct. 31, 2023, as compared with the year ended July 31, 2023. Net working capital increased by $431,869 during the three months ended Oct. 31, 2023, as compared with the year ended July 31, 2023.

Looking forward

As always, the future financial results of the company are difficult to predict as the company's customers have significant variations in their purchasing patterns, as illustrated in the quarterly results over the past few years.

The company continues to work on a number of development projects related to its current enzyme line. As the pace of these projects is largely determined by its customers, it is difficult to predict if, and when, these projects will produce significant revenues.

IBEX is continuing with the development of DiaMaze (diamine oxidase). DiaMaze is an enzyme targeted to persons suffering from histamine intolerance and will be marketed as a nutraceutical.

About IBEX Technologies Inc.

IBEX manufactures and markets enzymes for biomedical use through its wholly owned subsidiary, IBEX Pharmaceuticals Inc. (Montreal, Que.).

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