Immunotec Reports Fourth Quarter and Full-Year 2016 Results

VAUDREUIL-DORION, QUEBEC -- (Marketwired) -- 01/26/17 -- Immunotec Inc. (TSX VENTURE: IMM), a direct-to- consumer company and leader in the nutritional industry (the "Company" or "Immunotec"), today announced its fourth quarter financial results for Fiscal 2016. All amounts in this press release are in Canadian dollars unless otherwise indicated.

"Annual revenues surpassed our expectations and reached an all-time high of $109 million, reflecting solid performances in all regions by Immunotec's Consultants and Employees. The weakness of the Mexican Peso significantly impacted profitability during the fourth quarter. On a currency neutral basis, we estimate that this volatility reduced the Adjusted EBITDA(1) by approximately $3.4 million compared to last year", said Charles Orr, Chief Executive Officer.

QUARTERLY PERFORMANCE HIGHLIGHTS

--  Network sales amounted to $29.7M, an increase of 30.7% over last year,
    while sponsoring(1) of new customers and consultants increased by 50.9%
    over last year.
--  Network sales in key geographies grew by 58.4% in Mexico, 15.9% in the
    United States and 6.7% in Canada.
--  Margin before expenses were down by 2.4%, to 73.0%, and Adjusted
    EBITDA(1) amounted to 2.9% of revenues, considering the impact from the
    recent foreign currency devaluation of the Mexican Peso.
--  Net profit totalled $0.6M or $0.01 basic and fully diluted profit per
    common share.

"For the year, we are very pleased by the overall performance of our Network Sales and Sponsoring activities, representing a significant recovery over the prior year which was negatively impacted by the implementation of a 16% value-added tax in Mexico", said Patrick Montpetit, Chief Financial Officer of Immunotec. "Management's disciplined approach to corporate expenses led to a significant decline of these expenses as a percentage of total revenues. Finally, our balance sheet improved substantially with year-end cash of $13.9 million, reflecting solid cash flows from operations."

"Among efforts to contain the impact of the weak Mexican Peso, we have implemented price increases of 5 to 7% in all our markets effective on January 1st, 2017. This combined with other management initiatives should mitigate a significate portion of the foreign exchange impact on profitability. As we enter Fiscal 2017, we are confident in our ability to maintain the momentum of the past year and continue to better leverage the scale of our Company. Furthermore, the Company is pleased to announce that Charles Orr's employment agreement has been renewed until June 30, 2017", concluded Mr. Montpetit.

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                            Results of operations


For the periods ended
 October 31,                           Three-months            Twelve-months
                          --------------------------------------------------
('000s of C$, except for
 share and per share data)        2016         2015         2016        2015
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenues                        32,113       24,804      109,013      84,758
  Cost of sales                  8,674        6,113       28,200      20,350
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Margin before expenses          23,439       18,691       80,813      64,408
  Expenses                      22,708       16,819       77,009      59,194
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Operating income                   731        1,872        3,804       5,214
  Net finance (income)
   expenses                       (505)         (58)         179         137
  Income taxes                     650          215        1,510       1,035
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Net profit                         586        1,715        2,115       4,042
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Total comprehensive income         663        1,626        1,934       4,006
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Total basic and diluted
 net profitper common
 share                            0.01         0.02         0.03        0.06
Weighted average number
 ofcommon shares
 oustandingduring the year
  Basic                     69,761,628   69,287,627   69,639,953  69,152,836
  Diluted                   70,083,720   69,290,915   69,886,364  69,156,574
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                                    Revenues and sponsoring (1)


For the periods ended
 October 31,                        Three-months              Twelve-months
                      ------------------------------------------------------
('000s of C$)             2016    2015 Variation     2016    2015 Variation
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Network sales         29,671  22,707      30.7% 100,602  77,320      30.1%
  Other revenue          2,442   2,097      16.4%   8,411   7,438      13.1%
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                        32,113  24,804      29.5% 109,013  84,758      28.6%
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Network sales in key
 markets in local
 currency                 2016    2015 Variation     2016    2015 Variation
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Mexico ('000s of
 Mexican pesos)        241,970 152,738      58.4% 736,584 503,666      46.2%
United States ('000s
 of US$)                 6,695   5,778      15.9%  24,567  20,049      22.5%
Canada ('000s of C$)     3,134   2,936       6.7%  12,022  11,312       6.3%

Sponsoring(1)of new
 customers and
 consultants in key
 markets (# of people)    2016    2015 Variation     2016    2015 Variation
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Mexico                  30,001  17,432      72.1%  83,923  55,515      51.2%
United States            6,158   6,137       0.3%  22,844  18,747      21.9%
Canada                   1,967   1,691      16.3%   8,140   6,291      29.4%
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                        38,126  25,260      50.9% 114,907  80,553      42.6%
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                     Calculation of adjusted EBITDA(1)

For the periods ended
 October 31,                         Three-months             Twelve-months
                        ----------------------------------------------------
('000s of C$)                   2016         2015         2016         2015
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Net profit                       586        1,715        2,115        4,042
Add:
  Depreciation and
   amortization                  169          177          680          668
  Net finance (income)
   expenses                     (505)         (58)         179          137
  Other expenses                  45           30        1,046          197
  Income taxes                   650          215        1,510        1,035
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Adjusted EBITDA                  945        2,079        5,530        6,079
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      as a % of Revenues         2.9%         8.4%         5.1%         7.2%
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About Immunotec Inc.

Immunotec is a Canadian-based company that develops, manufactures, markets and sells research-driven nutritional products through direct-to-consumer sales channels in Canada, the U.S., Mexico, the Dominican Republic, the United Kingdom and Ireland. The Company offers an extensive family of nutritional, skin care and wellness products targeting health, weight management, energy and physical performance.

Please visit us at www.immunotec.com for additional information.

The Company files its continuous disclosure documents, inclusive of its year end results, on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This Press Release should be read in conjunction with the Company's most recent unaudited interim condensed consolidated financial statements and the Management discussion and analysis which can be found at www.sedar.com

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

Certain statements contained in this news release are forward looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec's most recent Management's Discussion, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

NON-GAAP MEASURES:

This Press Release contains non-GAAP measures which do not have a standardized meaning under International Financial Reporting Standards ("IFRS"). We use earnings before interest, taxes, depreciation and amortization ("EBITDA"), as this measure allows management to evaluate the operational performance of the Company. EBITDA does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA should not be considered an alternative to profit (loss) in measuring the Company's performance, nor should it be used as an exclusive measure of cash flow. This measure does not represent the funds available for the repayment of debt, the payment of dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as substitutes for other measures of performance calculated according to IFRS.

Adjusted EBITDA and Sponsoring

--  Adjusted EBITDA corresponds to EBITDA as defined above less elements
    that management considers to be outside the scope of its normal
    activities and therefore not reflective of how management views
    performance measurement. Management believes that this metric is
    necessary in order to isolate its commercial operations from items which
    it believes merit separate examination when assessing performance.
    Consistent improvement in adjusted EBITDA is one of management's primary
    objectives.
--  Sponsoring means the activity in which independent Consultants sponsor
    new Consultants and Customers; the sponsored Consultants themselves may
    sponsor new Consultants or Customers and so forth. This is referred to
    as a Consultant's "organization" or "downline". The
    Consultants are compensated for sales generated by their organization,
    based on their qualification and rank. Successful Independent
    Consultants assume the responsibility to train, support and communicate
    with their downline. The Consultants are not compensated on by simply
    referring or inviting new people to joint without them making a
    purchase.

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

Contacts:
Patrick Montpetit, CPA, CA, CF
Vice-President and Chief Financial Officer
(450) 510-4527

Source: Immunotec Inc.

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