Stellar Pharmaceuticals Reports Second Quarter 2010 Financial Results
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{"s" : "slxcf.ob","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Stellar Pharmaceuticals Inc. On Friday August 6, 2010, 7:30 am
LONDON, ONTARIO--(Marketwire - 08/06/10) - Stellar Pharmaceuticals Inc. (OTC.BB:SLXCF - News) ("Stellar" or "the Company"), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced financial results for the quarter ended June 30, 2010. In this press release, all dollar amounts are expressed in Canadian currency and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).
Q2-2010 Highlights
- Revenues grew by 16.9%%- Gross profit up 31.6%- Net Profit up 119.1%
For the three-month period ended June 30, 2010, Stellar's total revenues were $1,255,811 as compared to $1,074,294 in the same period in 2009. Solid growth for all products in the Canadian market, as well as strong growth for Uracyst® in international markets, combined with the revenues from licensing income, resulted in the Company showing a profit for the three month period ended June 30, 2010, of $360,800. This is more than twice the $164,694 profit that was generated in the same period in 2009.
Peter Riehl, Stellar's President and Chief Executive Officer, commented, "This is one of the highest levels of quarterly profitability achieved in the Company's history. Now, as we move forward into the second half of 2010, our focus will remain on building the Canadian business and expanding global licensing of Uracyst® and NeoVisc®. At the same time, we will continue to carefully manage our resources as we grow."
About Stellar Pharmaceuticals Inc.
Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst®, its patented technology for treatment of interstitial cystitis/painful bladder syndrome, an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreement for the distribution and sale of NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer. For more information, please visit the company's website at www.stellarpharma.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.
CONDENSED INTERIM FINANCIAL STATEMENTS STELLAR PHARMACEUTICALS INC. BALANCE SHEETS (Expressed in Canadian dollars) As at As at June December 30, 2010 31, 2009 (Unaudited) ASSETSCURRENT 2010 2009 ------------ ------------ Cash and cash equivalents $ 1,799,486 $ 2,325,212 Accounts receivable, net of allowance of $nil (2009 - $nil) 740,238 293,565 Inventories 687,203 721,061 Taxes recoverable - 1,501 Loan receivable 15,814 15,818 Prepaids, deposits and sundry receivables 145,152 163,698 ------------ ------------ Total current assets 3,387,893 3,520,855PROPERTY, PLANT AND EQUIPMENT, net 1,567,598 1,390,296OTHER ASSETS 124,722 114,553 ------------ ------------ Total assets $ 5,080,213 $ 5,025,704 ------------ ------------ ------------ ------------ LIABILITIESCURRENT Accounts payable $ 125,322 $ 228,367 Accrued liabilities 89,300 175,637 Deferred revenues 7,237 2,890 Taxes Payable 1,917 - ------------ ------------ Total current liabilities 223,776 406,894 ------------ ------------CONTINGENCIES AND COMMITMENTS SHAREHOLDERS' EQUITYCAPITAL STOCK AUTHORIZED Unlimited Non-voting, convertible, redeemable and retractable preferred shares with no par value Unlimited Common shares with no par valueISSUED 23,585,040 Common shares (2009 - 23,480,040) 8,291,429 8,183,638 Additional Paid-in capital options - outstanding 106,160 89,562 Additional Paid-in capital options - expired 724,127 724,127 ------------ ------------ 9,121,716 8,997,327DEFICIT (4,265,279) (4,378,517) ------------ ------------ Total shareholders' equity 4,856,437 4,618,810 ------------ ------------ Total liabilities and shareholders' equity $ 5,080,213 $ 5,025,704 ------------ ------------ ------------ ------------ STELLAR PHARMACEUTICALS INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Expressed in Canadian Dollars) (Unaudited) For the Three Month Period For the Six Month Period Ended June 30 Ended June 30 2010 2009 2010 2009 -------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------PRODUCT SALES $ 811,752 $ 914,126 $ 1,361,262 $ 1,458,545ROYALTY AND LICENSING REVENUES 444,059 160,168 472,426 388,265 -------------- ------------- ------------- ------------- TOTAL REVENUES FROM ALL SOURCES 1,255,811 1,074,294 1,833,688 1,846,810COST OF PRODUCTS SOLD 280,717 333,082 484,474 488,034 -------------- ------------- ------------- -------------GROSS PROFIT 975,094 741,212 1,349,214 1,358,776 -------------- ------------- ------------- -------------EXPENSES Selling, general and administrative 592,585 562,941 1,160,517 1,140,996 Research and development 9,683 1,803 35,954 7,411 Amortization (non- manufacturing property, plant and equipment) 13,660 13,703 27,320 27,401 -------------- ------------- ------------- ------------- 615,928 578,447 1,223,791 1,175,808 -------------- ------------- ------------- -------------INCOME FROM OPERATIONS 359,166 162,765 125,423 182,968INTEREST AND OTHER INCOME 1,610 1,929 3,123 6,903LOSS ON DISPOSAL OF EQUIPMENT - - (15,308) - -------------- ------------- ------------- -------------INCOME AND COMPREHENSIVE INCOME FOR THE PERIOD BEFORE INCOME TAXES 360,776 164,694 113,238 189,871 Current income tax expense (29,300) - (29,300) - Future income tax recovery 29,300 - 29,300 - -------------- ------------- ------------- -------------NET INCOME AND COMPREHENSIVE INCOME FOR THE PERIOD 360,776 164,694 113,238 189,871DEFICIT, beginning of period (4,626,055) (4,590,376) (4,378,517) (4,615,553) -------------- ------------- ------------- -------------DEFICIT, end of period $ (4,265,279) $ (4,425,682) $ (4,265,279) $ (4,425,682) -------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------EARNINGS PER SHARE - basic $ 0.02 $ 0.01 $ 0.00 $ 0.01 -------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING 23,485,535 23,495,040 23,482,802 23,816,387 -------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------EARNINGS PER SHARE - diluted $ 0.02 $ 0.01 $ 0.00 $ 0.01 -------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------WEIGHTED AVERAGE NUMBER OFCOMMON SHARES OUTSTANDING 23,487,751 23,495,040 23,483,571 23,816,387 -------------- ------------- ------------- ------------- -------------- ------------- ------------- ------------- STELLAR PHARMACEUTICALS INC. STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars) (Unaudited) For the Three Month Period For the Six Month Period Ended June 30 Ended June 30 2010 2009 2010 2009 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES -Net income for the period $ 360,776 $ 164,694 $ 113,238 $ 189,871Items not affecting cash Amortization 30,794 33,118 57,579 68,112 Current income tax expense (29,300) - (29,300) - Future income tax recovery 29,300 - 29,300 - Loss on disposal of equipment - - 15,308 - Issuance of equity instruments for services rendered 4,000 - 4,000 - Stock-based compensation 17,443 - 51,390 - Change in non-cash operating asset and liabilities (434,961) (593,295) (575,882) (390,251) ------------ ------------ ------------ ------------CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES (21,948) (395,483) (334,367) (132,268) ------------ ------------ ------------ ------------CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES - Additions to property, plant and equipment (40,290) (43,938) (262,142) (44,135) Increase to other assets (2,833) (19,274) (10,847) (26,231) Proceeds from sale of equipment - - 12,630 - ------------ ------------ ------------ ------------CASH FLOWS USED IN INVESTING ACTIVITIES (43,123) (63,212) (260,359) (70,366) ------------ ------------ ------------ ------------CASH FLOWS USED IN FINANCING ACTIVITIES - Stock options exercised 69,000 - 69,000 - Re-purchase of Common shares for cash - - - (21,292) ------------ ------------ ------------ ------------CASH FLOWS USED IN FINANCING ACTIVITIES 69,000 - 69,000 (21,292) ------------ ------------ ------------ ------------CHANGE IN CASH AND CASH EQUIVALENTS 3,929 (458,695) (525,726) (223,926)CASH AND CASH EQUIVALENTS, Beginning of period 1,795,557 2,340,735 2,325,212 2,105,966 ------------ ------------ ------------ ------------CASH AND CASH EQUIVALENTS, End of period $ 1,799,486 $ 1,882,040 $ 1,799,486 $ 1,882,040 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Contact:
Contacts:Company Contact:Stellar Pharmaceuticals Inc.Peter RiehlPresident & CEO(519) 434-1540corpinfo@stellarpharma.comStellar Pharmaceuticals Inc.Arnold TenneyChairman(705) 445-9505Investor Contact:Kilmer Lucas Inc.Stephen KilmerPresident(905) 690-2400 ext. 21stephen@kilmerlucas.comMedia Contact:Kilmer Lucas Inc.Leonard ZehrManaging Director(905) 690-2400 ext. 41len@kilmerlucas.com
