HAMILTON THORNE REPORTS 7% SALES INCREASE FOR THE QUARTER ENDED JUNE 30, 2016
BEVERLY, MA and TORONTO, Ontario – August 24, 2016 - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision laser devices and advanced image analysis systems for the assisted reproductive technologies (ART) and developmental biology research markets, today reported operational and financial results for the quarter and six months ended June 30, 2016.
Hamilton Thorne reported total sales of $2.4 million for the quarter ended June 30, 2016, a 7% increase versus the prior year. Sales increased 2% to $4.4 million for the first six months of 2016. Net income and EBITDA for the quarter and six-months declined versus the prior year periods due to planned investments in research and development and sales and marketing resources, as well as increases in general and administrative expenses in the second quarter relating to the Company’s acquisition program.
David Wolf, President and Chief Executive Officer stated, “We were gratified to see that our significant investments in sales and support resources and market development funding led to a return to solid sales growth in the second quarter. While margins were down slightly at 63.4% for the quarter and 63.5% for the six-months ended June 30, 2016, we consider that a small price to pay in exchange for strong sales growth in what continues to be a difficult foreign exchange environment. The third quarter started with an extremely strong July. We remain optimistic that we will see solid revenues, operating margins, and net income in the second half of the year.”
Mr. Wolf continued, “Sales into our core in vitro fertilization (IVF) clinic market continued to grow, driven by a substantial increase in sales of our clinical laser systems. We also saw a substantial increase in service sales, contributing to our objective to increase our recurring revenues. Operating expenses were generally in line with expectations, reflecting our increased investment in R&D and sales and marketing, acquisition program related costs and a significant increase in non-cash expense resulting from stock option grants.”
All amounts are in US dollars, unless specified otherwise, and results, with the exception of EBITDA, are expressed in accordance with the International Financial Reporting Standards ("IFRS").
Cash generated by operations increased 28% to $470,625 for the six-months ended June 30, 2016, compared to $367,243 in the comparable period of the prior year, an improvement of $103,202. The Company ended the quarter with $4.5 million in cash on hand, an increase of $175,102 from December 31, 2015.
The Company also reported that its strategy to broaden its offerings of products and services through strategic acquisitions of both operating companies and established product lines continues to be a major focus. The Company is actively working on completing additional acquisitions and expects to complete one or more acquisitions in the coming months.
The Financial Statements and accompanying Management Discussion and Analysis for the periods are available on www.sedar.com and the Hamilton Thorne website.
About Hamilton Thorne Ltd. (www.hamiltonthorne.com)
Hamilton Thorne designs, manufactures and distributes precision laser devices and advanced imaging systems that reduce cost, increase productivity, improve results and enable breakthroughs in ART (Assisted Reproductive Technologies), regenerative medicine and developmental biology research markets. Hamilton Thorne's laser products attach to standard inverted microscopes and operate as robotic micro-surgeons, enabling a wide array of scientific applications and IVF procedures. Its imaging systems improve outcomes in human IVF clinics and animal breeding facilities and provide high-end toxicology analyses. Hamilton Thorne’s growing worldwide customer base consists of pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, animal breeding companies, and other commercial and academic research establishments, including Harvard, MIT, Yale, McGill, Oxford, Cambridge, the Smithsonian Institution, Charles River Labs, Covance, ABS Global, Sexing Technologies, Merck, Novartis, Pfizer, and Dow Chemical.
Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.
The Company has included earnings before interest, income taxes, depreciation and amortization, (“EBITDA”) as a non-IFRS measure, which is used by management as a measure of financial performance. See section entitled “Use of Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the periods covered for further information.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
For more information, please contact:
|David Wolf, President & CEO
Hamilton Thorne Ltd.
ir [AT] hamiltonthorne [DOT] com
|Michael Bruns, CFO
Hamilton Thorne Ltd.
ir [AT] hamiltonthorne [DOT] com