Hamilton Thorne Announces 147% Revenue Growth for the Quarter Ended September 30, 2017
November 21 2017 - 4:25PM
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 versus
$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.”
|
|
|
Three- and Nine-Month Periods Ending September
30 |
|
|
|
Three Months |
Nine Months |
Statements of Operations: |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Sales |
|
|
$6,052,566 |
$2,448,152 |
$14,940,512 |
$6,865,949 |
Gross profit |
|
|
|
3,639,609 |
|
1,578,327 |
|
9,266,821 |
|
4,384,662 |
Operating expenses |
|
|
|
2,714,958 |
|
1,474,053 |
|
7,405,271 |
|
4,015,025 |
Net income |
|
|
|
613,900 |
|
26,095 |
|
1,049,811 |
|
171,266 |
Adjusted EBITDA |
|
|
|
1,414,325 |
|
378,891 |
|
3,578,328 |
|
851,347 |
Basic
earnings per share |
|
$0.01 |
$0.00 |
$0.01 |
$0.00 |
Diluted
earnings per share |
|
$0.01 |
$0.00 |
$0.01 |
$0.00 |
Statements of Financial Position as at: |
|
Sept. 30, 17 |
Dec. 31, 16 |
Cash |
|
|
$5,352,296 |
$1,837,655 |
Working capital |
|
|
|
3,969,083 |
|
1,917,918 |
Total assets |
|
|
|
31,947,547 |
|
12,242,873 |
Non-current
liabilities |
|
|
|
9,492,126 |
|
6,036,966 |
Shareholders'
equity |
|
|
|
15,681,607 |
|
3,403,335 |
|
|
|
|
|
|
|
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 between
our own branded high margin products and distributed products to
ensure that we maintain healthy gross profit and contribution
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.
978-921-2050
ir@hamiltonthorne.com
Michael Bruns, CFO Hamilton Thorne
Ltd.978-921-2050ir@hamiltonthorne.com
Hamilton Thorne (TSXV:HTL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hamilton Thorne (TSXV:HTL)
Historical Stock Chart
From Apr 2023 to Apr 2024