HAMILTON THORNE REPORTS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER-ENDED JUNE 30, 2019
Continued Constant Currency Organic Growth Over 10%
BEVERLY, MA and TORONTO, Ontario – August 27, 2019 – Hamilton Thorne Ltd. (TSX-V:HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART) and developmental biology research markets, today reported financial and operational results for the quarter and six months ended June 30, 2019.
- Sales increased 10% year over year to $8.0 million for the quarter; up 9% to $15.6 million for the six-month period; (constant currency growth of 12% for the quarter; 13% for the six-month period)
- Gross profit increased 1% year over year to $4.2 million for the quarter; up 1% to $8.2 million for the six-month period
- Net income of $100 thousand for the quarter; net loss of $464 thousand for the six-month period, largely due to the Q1 change in fair value of debenture; net income impacted by over $300 thousand in acquisition expenses incurred in the quarter
- Adjusted EBITDA increased 3% year over year to $1.6 million for the quarter; up 2% to $3.1 million for the six-month period
- Organic growth in USD was 8% for the quarter, 10% in constant currency; 7% organic growth for the six-month period, 10% in constant currency
- Cash flow from operations was $2.0 million for the six-month period; total cash on hand at June 30, 2019 was $14.0 million
“We had a strong start to the year for Hamilton Thorne which has continued into the second quarter,” stated David Wolf, President and Chief Executive Officer. “Sales into the human clinical market grew substantially for the three- and six-month periods, primarily driven by strong demand for Gynemed products worldwide, increased direct sales of equipment in Germany and the US, and increases in quality control testing services. Sales into the animal breeding market were down for the quarter but slightly up for the six-month period, while sales into research markets were down in both periods. Currency fluctuations continue to impact our reported results in US dollars; however, we were pleased to achieve constant currency growth of 12% for the quarter and 13% for the six-month period.”
Mr. Wolf continued, “We made substantial progress on several of our business goals, including largely completing our first two large lab buildouts in the US and substantially increasing cell culture media sales in our established markets worldwide. We also successfully launched our much anticipated next-generation LYKOS DTS™ moveable laser. Laser sales rebounded sharply in the second quarter after a decline in the first quarter, albeit somewhat below the prior year’s total, which was a record laser sales quarter for the Company. Gross profit margins were 52.2% for the quarter and 52.1% for the six months, primarily due to product mix (including a substantial increase of third-party products related to large laboratory sales), increased sales of consumables through distribution channels, volume discounting and certain supplier price increases, partially offset by increases in direct sales of higher margin, branded consumables and quality control testing services.”
Mr. Wolf added, “In the third quarter we completed the acquisition of Planer Limited. This acquisition enhances our product offerings in incubation, cryopreservation and lab monitoring solutions, and provides a direct sales and support platform for our entire Hamilton Thorne portfolio of products in the UK. While in the short term, this will require an investment in sales and support personnel, over the longer term, we would expect to see increased sales and profitability. With continued EBITDA growth, strong cash flows and a healthy cash balance remaining following the Planer acquisition, we believe we are well-positioned to continue our acquisition strategy to complement our organic growth.”
The Company reported that cash flow from operations was $2 million for the six-month period, up 18% from the prior year, while operating expenses (other than acquisition expenses) were generally in line with expectations. Operating expenses and net income were impacted by over $300 thousand in expenses incurred in the quarter relating to the acquisition of Planer Limited.
The Company will hold a conference call on Tuesday August 27, 2019 at 11:00 a.m. EDT to review highlights of the 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 4780266. 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.ltd)
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, Planer, 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 TSX 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. 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] ltd
|Michael Bruns, CFO
Hamilton Thorne Ltd.
ir [AT] hamiltonthorne [DOT] ltd
Bristol Investor Relations
glen [AT] bristolir [DOT] com