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October 20, 2015

United States

New Jersey—Epicore BioNetworks’ Financial Results for 2015

 

For the fiscal year ended June 30, 2015, Epicore BioNetworks, which designs, develops and manufactures innovative and environmentally responsible biotechnology products and animal feeds for shrimp farmers, set sales records in every quarter.  Net income (without exceptional adjustments) broke the million-dollar mark for the second time.  Epicore’s productivity enhancing products were in high demand as shrimp producers readily accepted new tools and techniques to fight the effects of early mortality syndrome (EMS).  Epicore’s marketing program increased usage of its products in several new regions.  Its ISO 9001:2008 quality system certification contributed to operational reliability and provided the foundation for its achievement of Global GAP Certification.  Net income increased by 6% and earnings per share were $0.05.

 

After more than a decade of growth, world farm production of shrimp peaked in 2011 at 4.1 million metric tons, but declined in 2012 and 2013 to 3.8 million tons because of disease problems.  Production has begun to recover, but has not reached the 2011 peak level.  The supply shortage caused by EMS forced shrimp prices to record levels in 2014.  Consumers reacted to high prices in 2015 with reduced demand, which reduced prices.  The net effect of EMS has been positive for Epicore.  Sales were lost where EMS closed farms, but the high prices encouraged more people to get into the shrimp farming business.

 

 

Some of Epicore’s Highlights, Versus Its Prior Fiscal Year

 

• An increase in revenue from $7.6 million to $9.7 million (a 27% increase)

 

• An increase in gross profit from $4.9 million to $5.6 million (a 16% increase)

 

• An increase in operating expenses from $2.8 to $3.6 million (a 28% increase)

 

• An increase in net income from $1.17 million to $1.24 million (a 6% increase)

 

• An increase in shareholders’ equity from $6.7 million to $8.2 million (a 21% increase)

 

• A decrease in cash from $3.0 million to $2.3 million (a 23% decrease)

 

EBITDA (earnings before interest, taxes, depreciation and amortization) was unchanged at $2.1 million

 

Epicore achieved Global GAP compound feed certification in fiscal 2015.  This hazard analysis (HACCP) based food safety program is required for farmed shrimp sold into Europe.  Shrimp producers prefer their suppliers to be Global GAP certified.  Epicore is the first USA feed producer to achieve this certification, which puts it in a preferred position with shrimp feed buyers.  The Global GAP certification supplements Epicore’s ISO 9001:2008 quality system certification.  In 2015, Epicore also passed a Food and Drug audit of its feed manufacturing facility.

 

Information: Mr. William P. Long, Chief Executive Officer (phone 1-609-267-9118, email investors@epicorebionetworks.com).

 

Source: CNN Money.  Epicore BioNetworks, Inc. Reports Results for Fiscal Year 2015.  October 19, 2015.

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