ProMetic Reports Its Third Quarter 2012 Highlights and Financial Results2 hours ago by Marketwire
ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic" or the "Corporation") today reported revenues of $7.7 million, net profit of $2.5 million and earnings per share of $0.01 for the third quarter ended September 30, 2012 driven by strengthening product sales as well as increased services and licensing revenues from ProMetic's protein technologies business.
"Following a profitable Q2, our third quarter results continue to demonstrate the recurring revenue generation from our secured contracts and further diversifying of multiple revenue streams. With one quarter left in 2012, we are well underway to surpass our previously disclosed 2012 corporate objectives", stated Mr. Pierre Laurin, ProMetic's President and Chief Executive Officer.
Third Quarter 2012 Highlights
The Corporation continued to deliver on the previously secured orders included in its original 2012 projected $21 million base case business. The Corporation also added to its pipeline of business for the remainder of 2012 and 2013 providing significant revenue upside and a continued reduction in the requirement for future cash injection.
-- An $11 million agreement, for its Protein Technologies division, relating to research, development and commercial activities with Shenzhen Hepalink Co., Ltd project based on its proprietary protein technologies: The agreement includes $11 million in licensing fees and milestone payments to ProMetic, of which $2 million was paid up front. In addition, ProMetic will also receive further fees for product development activities to be performed on behalf of Hepalink. Work is expected to commence in the fourth quarter of 2012.-- ProMetic also entered into a strategic investment agreement with Shenzhen Hepalink Co.,Ltd consisting of a $10.0 million equity investment in ProMetic at $0.204 per share, representing a 63% premium to the stock market price of the day prior to the announcement. In exchange, ProMetic will issue 48,147,053 shares representing approximately 10.02% of the corporation's outstanding shares on a post- transaction basis. The issued shares will be subject to a three (3) year hold period. The investment is conditional to regulatory approval by the parties' respective regulatory authorities.
Third Quarter Financial Results and Outlook
The financial information in regards to the three month period ended September 30, 2012 should be read in conjunction with the Corporation's financial statements as well as the Management's Discussion and Analysis dated November 13, 2012.
Total revenues for the third quarter of 2012, which were derived from product sales, development services and licensing revenues, were $7.7 million compared with $3.3 million for the same quarter of 2011. Total revenues for the first 9 months of 2012 were $15.1 million compared to $9.1 million for the first 9 months of 2011.
ProMetic generated a net profit of $2.5 million for the quarter ended September 30, 2012, as compared to a net loss of $2.1 million for the quarter ended September 30, 2011 and a net loss of $1.4 million after the first 9 months of 2012 compared to a net loss of $6.6 million for the first 9 months of 2011.
"The combination of our expanding commercial activities coupled with the execution of recent strategic agreements will provide significant upside to revenues. This consequently results in a reduction in expected financing requirements for the coming quarters. We have already made significant progress in improving most of our key financial metrics compared to the same period of last year and expect this trend to continue", said Mr. Bruce Pritchard, ProMetic's Chief Financial Officer.
ProMetic's management believes that despite the financial hurdles of 2011 and weaker results of the first quarter of 2012, the Company has made significant progress on securing a solid revenue stream for the last quarter of 2012 and beyond as evidenced by the second and now third quarter results.
Third Quarter 2012 Conference Call Information
ProMetic will host a conference call at 11:30am (EST) on Wednesday, November 14, 2012. The telephone numbers to access the conference call are (416) 981-9001 (International) and 1-800-891-6979 (Toll-free). A replay of the call will be available from November 14, 2012 1:30pm until November 21, 2012. The numbers to access the replay are 1-416-626-4100 (21611217) and 1-800-558-5253 (21611217). A live audio webcast of the conference call will be available through the following: http://www.gowebcasting.com/4006
Additional Information in Respect to the Three month Period ended September 30, 2012
ProMetic's MD&A and 2012 Third Quarter Financial Statements have been filed on Sedar (www.sedar.com) and are available on the Company's website at www.prometic.com.