Hamilton Thorne Announces Record Revenue for the Quarter and Year Ended December 31, 2017
February 13 2018 - 4:30PM
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 preliminary selected
unaudited financial results for the fourth quarter and year ended
December 31, 2017.
Based on preliminary unaudited results, 2017 revenues increased
109% to over $22 million with adjusted EBITDA for the year of
approximately $4.9 million (168% year over year growth). Fourth
quarter sales increased 95% to over $7.1 million, with adjusted
EBITDA expected to increase 33% to approximately $1.3 million. With
the Embryotech Laboratories business under its ownership for over a
year, the Company has increased its focus on organic growth
measures. Organic growth for the year was approximately 7% and
approximately 14% in the fourth quarter, largely driven by
increases in its US equipment business.
David Wolf, President and Chief Executive Officer of Hamilton
Thorne Ltd. commented, “2017 was another transformational year for
us as we completed a significant expansion of product line,
geographic coverage and scale when we acquired Gynemed in April.
Now that the work of integrating our acquired businesses is largely
behind us, we are focusing on growth, including the significant
expansion of our US-based sales team, as well as additional
cross-selling and marketing synergies between the North American
and European-based businesses. The addition of significant
operations in Europe has also diversified our currency mix and
reduced our exposure to currency fluctuations, and along with the
strengthening of the Euro versus the US Dollar, has helped mitigate
much of the foreign exchange headwinds we saw in 2015 and
2016.”
Commenting on the quarter, Mr. Wolf added, “Sales were
positively impacted by significant sales growth in the Company’s
equipment business in the US as its expanded sales force gained
traction and also by two large laboratory equipment installations
in Europe. As expected, gross profit and EBITDA margins were
somewhat lower due to these two unusually large sales of
third-party equipment in one quarter, the strategic broadening of
our product lines, as well as the substantial investments the
Company has made in additional sales and marketing resources.”
The Company ended the year with cash on hand of $5.7 million
versus $1.8 million at December 31, 2016.
OUTLOOK
Mr. Wolf added, “Looking forward into 2018, we expect to see
accelerating growth in our worldwide business, driven by continued
strong performance of our services and consumables brands,
augmented by substantial growth in the US as our new, direct sales
team hits its stride. We expect gross profit margins to normalize
as we manage product mix between our own higher margin products and
services and third-party products. We will also continue to make
investments in sales and marketing and R&D personnel and
programs, which may marginally impact EBITDA margins in the short
term but should set us up for long term success. Finally, our
acquisition program continues to be an important element in our
growth plans.”
The financial information contained in this news release is
based on management's estimates and is subject to adjustment. The
Company expects to release its completed audited financial
statements for the year ended December 31, 2017 on or about April
19, 2018.
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").
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. 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 & CEOHamilton Thorne
Ltd.978-921-2050ir@hamiltonthorne.com
Michael Bruns, CFO Hamilton Thorne
Ltd.978-921-2050ir@hamiltonthorne.com
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