Press Release | Source: Stellar Pharmaceuticals Inc. |
Stellar Pharmaceuticals Profitable for 2009
LONDON, ONTARIO — March 17, 2010 -- Stellar Pharmaceuticals Inc. (OTCBB:SLXCF) ("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 year ended December 31, 2009. 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).
2009 Highlights
| · | Third consecutive year the Company has been cash-flow positive |
| · | 2009 Net Profit up $270,000 over 2008 |
For the twelve-month period ended December 31, 2009, Stellar's total revenues were $3,581,300. This compares to $2,559,400 in the same period in 2008 and was driven by 15.7% and 74.8% growth in Canadian and international sales, respectively. The gross margin percentage decreased to 66.6% in 2009 compared to 73.7% in 2008, largely as a result of the Company's continued strong growth in international sales where its margins are reduced. Net income for 2009, including $163,800 in non-cash stock options and amortization expenses (2008 – 140,200), was $238,900, or $0.01 per share, compared to a loss of $31,100, or ($0.01) per share, in 2008.
Stellar’s strong financial performance allowed it to close the year in a solid financial position. As of December 31, 2009, the Company had cash and cash equivalents of $2,325,200. This was up from $2,106,000 at the end of 2008.
Peter Riehl, Stellar’s President and Chief Executive Officer commented, “We are very pleased to show a profit for 2009 and a strong growth in our overall business, given the difficult economic environment that persisted for much of the year. Now, as we move forward into 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 while pursuing opportunities for Stellar’s future growth.
About Stellar Pharmaceuticals Inc.
Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc® and NeoVisc® Single Dose, for the symptomatic treatment of osteoarthritis; and Uracyst®, its patented technology for the treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Both NeoVisc and Uracyst have their CE Mark certification for the European Community. Stellar also has an in-licensing agreement for 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.
Press Release – Profitable for 2009 Page 2 of 5
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.
CONTACTS:
| Company Contact | |
| | |
| Peter Riehl | Stephen Kilmer |
| President & CEO | President |
| Stellar Pharmaceuticals Inc. | Kilmer Lucas Inc. |
| (519) 434-1540 | (905) 690-2400 ext. 21 |
| email – corpinfo@stellarpharma.com | email – stephen@kilmerlucas.com |
| | |
| - or - | Media Contact |
| | |
| Arnold Tenney | Leonard Zehr |
| Chairman | Managing Director |
| Stellar Pharmaceuticals Inc. | Kilmer Lucas Inc. |
| (416) 587-3200 | (905) 690-2400 ext. 41 |
| | email - len@kilmerlucas.com |
Press Release – Profitable for 2009
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STELLAR PHARMACEUTICALS INC.
(Expressed in Canadian dollars)
December 31
| ASSETS | 2009 | | 2008 |
| CURRENT | | | | | | | |
| | Cash and cash equivalents | $ | 2,325,212 | �� | $ | 2,105,966 |
| | Accounts receivable, net of allowance of $nil (2008 - $nil) | | 293,565 | | | 549,055 |
| | Inventories | | 721,061 | | | 364,551 |
| | Taxes recoverable | | 1,501 | | | 212,445 |
| | Loan receivable | | 15,818 | | | 18,369 |
| | Prepaids, deposits and sundry receivables | | 163,698 | | | 130,515 |
| | Total current assets | | 3,520,855 | | | 3,380,901 |
| PROPERTY, PLANT AND EQUIPMENT | | 1,390,296 | | | 1,270,257 |
| OTHER ASSETS | | 114,553 | | | 65,495 |
| | Total assets | $ | 5,025,704 | | $ | 4,716,653 |
| LIABILITIES | | | | | |
| CURRENT | | | | | | | |
| | Accounts payable | $ | 228,367 | | $ | 173,812 |
| | Accrued liabilities | | 175,637 | | | 186,201 |
| | Deferred revenues | | 2,890 | | | 1,749 |
| | Total current liabilities | | 406,894 | | | 361,762 |
| | | | | | |
| CONTINGENCIES AND COMMITMENTS | | | | | |
| | | | | | |
| SHAREHOLDERS’ EQUITY | | | | | |
| CAPITAL STOCK | | | | | |
| | AUTHORIZED | | | | | | |
| | Unlimited Non-voting, convertible redeemable and retractable | | | | |
| | preferred shares with no par value | | | | | |
| | Unlimited Common shares with no par value | | | | | |
| | | | | | | | | |
| | ISSUED | | | | | |
| | 23,480,040 Common shares (2008 – 23,702,540) | | 8,183,638 | | | 8,261,403 |
| | Nil Treasury shares (2008 – 147,500) | | — | | | (51,625) |
| | | Additional Paid-in capital for cancelled Common shares | | — | | | 2,329 |
| | | Additional Paid-in capital options - outstanding | | 89,562 | | | 35,965 |
| | | Additional Paid-in capital options - expired | | 724,127 | | | 722,372 |
| | | | | | 8,997,327 | | | 8,970,444 |
| DEFICIT | | | | (4,378,517) | | | (4,615,553) |
| | Total shareholders’ equity | | 4,618,810 | | | 4,354,891 |
| | Total liabilities and shareholders’ equity | $ | 5,025,704 | | $ | 4,716,653 |
Press Release – Profitable for 2009 Page 4 of 5 |
| |
STELLAR PHARMACEUTICALS INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in Canadian dollars)
FOR THE YEARS ENDED DECEMBER 31
| | 2009 | | 2008 |
| | | | | | |
| PRODUCT SALES | $ | 3,000,062 | | $ | 2,118,282 |
| ROYALTIES & LICENSING REVENUE | | 581,230 | | | 441,130 |
| TOTAL REVENUE FROM ALL SOURCES | | 3,581,292 | | | 2,559,412 |
| COST OF PRODUCTS SOLD | | 1,001,871 | | | 556,401 |
| GROSS PROFIT | | 2,579,421 | | | 2,003,011 |
| EXPENSES | | | | | |
| Selling, general and administrative | | 2,278,530 | | | 2,010,383 |
| Research and development | | 18,107 | | | 62,727 |
| Amortization of assets (non-manufacturing property, plant and equipment) | | 55,822 | | | 54,384 |
| | | 2,352,459 | | | 2,127,494 |
| INCOME (LOSS) FROM OPERATIONS | | 226,962 | | | (124,483) |
| INTEREST AND OTHER INCOME | | 11,962 | | | 83,741 |
| GAIN ON DISPOSAL OF EQUIPMENT | | — | | | 9,676 |
NET INCOME (LOSS) AND COMPREHENSIIVE INCOME (LOSS) FOR THE YEAR (before tax) | | 238,924 | | | (31,066) |
| INCOME TAXES | | — | | | — |
| NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | $ | 238,924 | | $ | (31,066) |
EARNINGS (LOSS) PER SHARE - Basic | $ | 0.01 | | $ | (0.00) |
| - Diluted | $ | 0.01 | | $ | — |
| WEIGHTED AVERAGE NUMBER OF COMMON | | | | | |
SHARES OUTSTANDING - Basic | | 23,498,889 | | | 23,801,450 |
| - Diluted | | 23,599,170 | | | 23,801,450 |
| | | | | | |
Press Release – Profitable for 2009
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STELLAR PHARMACEUTICALS INC.
(Expressed in Canadian dollars)
FOR THE YEARS ENDED DECEMBER 31
| | 2009 | | 2008 |
| CASH FLOWS USED IN OPERATING ACTIVITIES | | | | | |
| Net income (loss) | $ | 238,924 | | $ | (31,066) |
| Items not affecting cash | | | | | |
| Amortization | | 108,492 | | | 126,556 |
| Gain on disposal of equipment | | –– | | | (9,676) |
| Write-down of property, plant & equipment | | –– | | | 2,656 |
| Unrealized foreign exchange (gain) loss | | 24,203 | | | (17,945) |
| Issuance of equity instruments for services rendered | | 55,352 | | | 13,618 |
| Change in non-cash operating assets and liabilities | | 26,143 | | | (562,256) |
| CASH FLOWS USED IN OPERATING ACTIVITIES | | 453,114 | | | (478,113) |
| | | | | | |
| CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES | | | | | |
| Additions to property, plant and equipment | | (155,630) | | | (539,511) |
| Increase in other assets | | (26,230) | | | (11,420) |
| Proceeds from sale of equipment | | –– | | | 10,000 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | | (181,860) | | | (540,931) |
| | | | | | |
| CASH FLOWS USED IN FINANCING ACTIVITIES | | | | | |
| Repurchase of common shares for cash | | (30,357) | | | (100,514) |
| CASH FLOWS USED IN FINANCING ACTIVITIES | | (30,357) | | | (100,514) |
| | | | | | |
EFFECT OF EXCHANGE RATES ON CASH HELD IN FOREIGN CURRENCY | | (21,650) | | | 14,398 |
| CHANGE IN CASH AND CASH EQUIVALENTS | | 219,246 | | | (1,105,160) |
| | | | | | |
| CASH AND CASH EQUIVALENTS, beginning of year | | 2,105,966 | | | 3,211,126 |
| CASH AND CASH EQUIVALENTS, end of year | $ | 2,325,212 | | $ | 2,105,966 |
