Immunotec Reports Second Quarter Results

“Record Quarterly Revenues”

– Revenues increased by 28.1% over last year

– Adjusted EBITDA(1) amounted to 7.8% of revenues

– Sponsoring of new customers and consultants increased by 34.6% over last year

VAUDREUIL-DORION, QUEBEC–(Marketwired – June 16, 2016) – Immunotec Inc. (TSX VENTURE:IMM), a direct-to-consumer company and leader in the nutritional industry (the “Company” or “Immunotec”), today announced its second quarter financial results for Fiscal 2016. All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.

“We are pleased to report that total revenues for the quarter exceeded $25.0M for the first time in Company history. This performance is the result of superior teamwork and dedication on the part of our field associates, employees and valued suppliers”, said Charles L. Orr, Chief Executive Officer of Immunotec.

PERFORMANCE HIGHLIGHTS

Network sales for the three- and six-month periods ended April 30, 2016 reached $23.4M and $44.5M compared to $18.2M and $34.5M for the corresponding periods of the previous year, an increase of $5.2M or 28.9% and $10.0M or 29.2%. Excluding currency fluctuations, the Company recorded an increase in network sales in Mexico of 38.6% and 33.0%, in the United States of 27.0% and 28.9%, and, in Canada of 11.1% and 6.9% for the three- and six-month periods ended April 30, 2016 relative to the corresponding periods of the previous year.

“The increase of our Sponsoring numbers are above 30% in all of our key markets, which indicates a strong momentum for the quarters ahead” said Patrick Montpetit, Chief Financial Officer of Immunotec. “We are confident that we are on track to achieve $100.0M in revenues for fiscal 2016”.

Revenues and sponsoring ¹
For the periods ended April 30,	Three-months				Six-months
(‘000s of C$)	2016	2015	Variation		2016	2015	Variation
Network sales	23,418	18,170	28.9	%	44,548	34,475	29.2	%
Other revenue	2,168	1,798	20.6	%	3,982	3,412	16.7	%
	25,586	19,968	28.1	%	48,530	37,887	28.1	%
Network sales in key markets in local currency	2016	2015	Variation		2016	2015	Variation
Mexico (‘000s of Mexican pesos)	159,142	114,834	38.6	%	294,441	221,362	33.0	%
United States (‘000s of US$)	6,014	4,735	27.0	%	11,402	8,847	28.9	%
Canada (‘000s of C$)	3,036	2,733	11.1	%	5,867	5,489	6.9	%

Sponsoring¹ of new customers and consultants in key markets
(# of people)	2016	2015	Variation		2016	2015	Variation
Mexico	17,376	12,847	35.3	%	31,453	23,526	33.7	%
United States	5,842	4,384	33.3	%	10,139	7,608	33.3	%
Canada	2,041	1,534	33.1	%	3,998	3,023	32.3	%
	25,259	18,765	34.6	%	45,590	34,157	33.5	%

Margins before expenses, as a percentage of revenues, remained stable at 76.5% for the three- month period ended April 30, 2016 compared to 76.4% for the same period in the prior year. Margins before expenses decreased slightly from 76.6% in the six-month period ended April 30, 2015 to 75.6% for the six-month period ended April 30, 2016. The small decrease is due to a combination of the product mix sold; negative fluctuations in exchange rates and increases in raw materials prices from suppliers.

Adjusted EBITDA¹ for the three- and six-month periods ended April 30, 2016 amounted to $2.0M or 7.8% of revenues and $3.2M or 6.5% of revenues compared to $1.4M or 7.0% of revenues and $2.5M or 6.6% of revenues for the same periods of the previous year.

Net profit for the three- and six-month periods ended April 30, 2016 was $0.6M and $0.9M compared to $0.3M and $1.2M for the corresponding periods of the previous year. Total basic and fully diluted net profit per common share for the three- and six-month periods ended April 30, 2016 was $0.008 and $0.013 compared to $0.005 and $0.017 for the corresponding periods of the previous year.

¹	Refer to the “NON-GAAP MEASURES” section. The definition of Sponsoring and the Adjusted EBITDA reconciliation to Net profit is shown below.




Results of operations

For the periods ended April 30,		Three-months				Six-months
(‘000s of C$, except for share and per share data)		2016		2015		2016		2015
Revenues		25,586		19,968		48,530		37,887
	Cost of sales	6,002		4,717		11,853		8,869
Margin before expenses		19,584		15,251		36,677		29,018
	Expenses	17,798		14,031		34,333		26,832
Operating income		1,786		1,220		2,344		2,186
	Net finance expenses	773		793		778		451
	Income taxes	445		104		660		560
Net profit		568		323		906		1,175

Total comprehensive income		402		891		718		1,340
Total basic and diluted net profit per common share		0.008		0.005		0.013		0.017
Weighted average number of common shares oustanding during the period
	Basic	69,751,103		69,097,995		69,516,943		69,015,556
	Diluted	69,909,755		69,101,596		69,534,198		69,019,133


Calculation of adjusted EBITDA 1

For the periods ended April 30,		Three-months				Six-months
(‘000s of C$)		2016		2015		2016		2015
Net profit		568		324		906		1,175
Add:
	Depreciation and amortization	166		168		346		322
	Net finance expenses	773		793		778		451
	Other expenses	38		6		484		9
	Income taxes	445		104		660		560
Adjusted EBITDA		1,990		1,395		3,174		2,517
as a % of Revenues		7.8	%	7.0	%	6.5	%	6.6	%