HAMILTON THORNE ANNOUNCES 147% REVENUE GROWTH FOR THE QUARTER ENDED SEPTEMBER 30, 2017
Year to date revenues of $14.9 million; Adjusted EBITDA of $3.6 million
BEVERLY, MA and TORONTO, Ontario – November 21, 2017 – Hamilton Thorne Ltd. (TSX-V:HTL), a leading global provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART) and developmental biology research markets, today reported operational and financial results for the quarter and nine months ended September 30, 2017.
Sales increased 147% to $6.05 million for the quarter and 117% to $14.9 million for the nine months ended September 30, 2017, primarily due to the contribution from the acquisition of Gynemed GmbH & Co. KG (acquired April 2017), as well as the Embryotech Laboratories quality control testing services and assay business (acquired September 2016). Net income for the third quarter increased substantially to $614,000 vs. $26,000 for the prior year period, and net income for the nine-months ended September 30, 2017 increased over 500% to $1.05 million. Net income year to date was negatively affected by $615,000 of acquisition expenses in the first and second quarters directly related to the Gynemed acquisition.
Adjusted EBITDA increased 273% to $1.4 million for the quarter and 320% to $3.6 million for the nine months year to date. Cash flow generated from operations was $655,000 for the quarter and $2.02 million for the nine months ended September 30, 2017. The Company ended the quarter with cash on hand of $5.35 million versus $1.8 million at December 31, 2016.
David Wolf, President and Chief Executive Officer stated, “We are pleased with the success of our acquisition program. Over the past year, sales into the In Vitro Fertilization (IVF) clinic market have grown dramatically, primarily driven by the contribution from our acquired businesses, augmented by continued strong performance in our laser products line. We continue to see positive results from sales, marketing and product synergies from the Gynemed acquisition, as we work on expanding Gynemed product offerings into additional international markets and increasing European sales of existing Hamilton Thorne products. Our strategy to broaden our offerings of products and services through strategic acquisitions of both operating companies and established product lines continues to be a major focus. We are actively working on completing additional acquisitions with a goal of completing one or more meaningful acquisitions every twelve to eighteen months.”
All amounts are in US dollars, unless specified otherwise, and results, with the exception of Adjusted EBITDA, are expressed in accordance with the International Financial Reporting Standards ("IFRS").
Mr. Wolf added, “In October, we announced that we have substantially increased our direct sales and support teams in North America and are augmenting our product offering with a selection of best in class equipment and consumables in order to provide a more complete solution and enable standardization of best practices in the labs that we serve. We expect these investments to bring us closer to our customers and increase sales of our own branded products as well as the new products we will be offering. It will be important for us to manage product mix to ensure that we maintain healthy gross profit and contrition margins as we grow this line of business.”
The Company reported that operating expenses were generally in line with expectations, reflecting added expenses from acquisitions and continued investment in R&D, sales staffing and marketing
The Company will hold a conference call Wednesday, November 22, 2017, at 11:00 a.m. EST to review highlights of its quarterly results. All interested parties are welcome to join the conference call by dialing toll free 1-855-223-7309 in North America, or 647-788-4929 from other locations, and requesting Conference ID 1669069. The Company’s updated investor presentation and a recording of the call will be available on Hamilton Thorne’s website shortly after the call.
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 is a leading global provider of precision instruments, consumables, software and services that reduce cost, increase productivity, improve results and enable breakthroughs in Assisted Reproductive Technologies (ART) and developmental biology research markets. Hamilton Thorne markets its products and services under the Hamilton Thorne, Gynemed and Embryotech Laboratories brands, through its growing sales force and distributors worldwide. Hamilton Thorne’s customer base consists of fertility clinics, university research centers, animal breeding facilities, pharmaceutical companies, biotechnology companies, and other commercial and academic research establishments.
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, amortization, share-based compensation expense, changes in fair value of derivatives and identified acquisition costs related to completed transactions (“Adjusted 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” and “Results of Operations” in the Company’s Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.
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 including the risk that the Company may not be able to obtain the necessary regulatory approvals, as applicable. 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