Hamilton Thorne Reports Record Revenue and Adjusted EBITDA for the Quarter and Nine Months Ended September 30, 2019
November 21 2019 - 8:15AM
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 nine months ended September 30, 2019.
Highlights
- Sales increased 30% year over year to $8.9 million for the
quarter; up 16% to $24.5 million for the nine-month period;
(constant currency growth of 32% for the quarter, 19% for the
nine-month period)
- Gross profit increased 23% year over year to $4.8 million for
the quarter; up 8% to $12.9 million for the nine-month period
- Net income of $327 thousand for the quarter; net loss of $137
thousand for the nine-month period, largely due to the Q1 change in
fair value of debenture; net income impacted by $385 thousand in
acquisition expenses incurred in the quarter; $700 thousand for the
nine-month period
- Adjusted EBITDA increased 26% year over year to $1.8 million
for the quarter; up 10% to $4.9 million for the nine-month
period
- Organic growth in USD was 17% for the quarter, 19% in constant
currency; 10% organic growth for the nine-month period, 13% in
constant currency
- Cash flow from operations was $2.0 million for the nine-month
period; total cash on hand at September 30, 2019 was $10.3
million
“Our strong start to the year accelerated in the third quarter,”
stated David Wolf, President and Chief Executive Officer. “Sales
growth across all product categories, market sectors, and
geographies contributed to our substantial 17% organic growth in
the quarter (19% in constant currency). With the addition of one
and one-half months of the Planer business, we generated 30%
growth, leading to record revenues and Adjusted EBITDA.”
|
Three- and Nine-Month Periods Ending Sept. 30 |
|
Three Months |
Nine Months |
Statements of Operations: |
2019 |
2018 |
|
2019 |
|
2018 |
Sales |
$8,870,072 |
$6,833,457 |
|
$24,517,310 |
|
$21,141,076 |
Gross profit |
4,751,531 |
3,850,825 |
|
12,908,057 |
|
11,928,885 |
Operating expenses |
4,109,461 |
3,004,252 |
|
10,644,601 |
|
9,065,280 |
Net income (loss) |
326,756 |
(544,694 |
) |
(137,306 |
) |
215,335 |
Adjusted EBITDA |
1,805,848 |
1,428,959 |
|
4,862,949 |
|
4,437,010 |
Basic earnings per share |
$0.00 |
($0.00 |
) |
($0.00 |
) |
$0.00 |
Diluted earnings per
share |
$0.00 |
($0.00 |
) |
($0.00 |
) |
$0.00 |
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 continued, “Sales into the human clinical market for
the three- and nine-month periods grew substantially, primarily
driven by strong increases in the sales of clinical instruments and
consumables and increases in quality control testing assays,
augmented by the contribution from the Planer acquisition. Sales
into the animal breeding markets increased substantially for both
the three and nine months ended September 30, 2019 primarily due to
increased imaging systems sales. Sales into the research markets
were up during those periods, largely driven by the contribution
from the Planer acquisition. Gross profit margins were up from the
first half of 2019 at 53.6% for the quarter and 52.6% for the nine
months, primarily due to product mix, despite the Planer business
delivering somewhat lower gross profit margins than the overall
blend. In part as a result of the introduction of our next
generation LYKOS DTSTM product, laser sales contributed to margin
growth, with laser sales in the third quarter substantially ahead
of the prior year’s quarter.”
The Company reported that cash flow from operations was $2.7
million for the nine-month period, up 12% from the prior year,
while operating expenses were generally in line with expectations.
Operating expenses and net income were impacted by $385 thousand in
acquisition expenses incurred in the quarter, $700 thousand for the
nine-month period, relating to the acquisition of Planer
Limited.
Conference Call
The Company will hold a conference call on Thursday November 21,
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 7688118. The
Company’s updated investor presentation and a recording of the call
will be available on Hamilton Thorne’s website shortly after the
call.
Equity Grants
The Company also announced that it has granted a total of
998,000 stock options to purchase common shares and 682,000
Restricted Share Units (RSU’s) pursuant to the Company’s 2019
Long-Term Equity Incentive Plan (the “Plan”). The options are
exercisable at Cdn $0.96 per share and expire ten years from the
date of grant. Each vested RSU entitles the holder to receive
one common share of the Company in accordance with the Plan. A
total of 448,000 RSU’s were granted to the Company’s Directors,
CEO, CTO, and CFO. Option grants vest over four years. RSU’s vest
in three stages: 1/3rd on March 31, 2020 and 1/3rd annually
thereafter.
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 |
Michael Bruns,
CFO |
Hamilton Thorne Ltd. |
Hamilton Thorne Ltd. |
978-921-2050 |
978-921-2050 |
ir@hamiltonthorne.ltd |
ir@hamiltonthorne.ltd |
|
|
Glen Akselrod |
|
Bristol Investor Relations |
|
905-326-1888 |
|
glen@bristolir.com |
|
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