HAMILTON THORNE REPORTS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER-ENDED MARCH 31, 2021
Revenues up 11% to $11.5 million; Adjusted EBITDA up 27% to $2.3 million
BEVERLY, MA and TORONTO, Ontario – May 25, 2021 – Hamilton Thorne Ltd. (TSX-V:HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported financial and operational results for the quarter-ended March 31, 2021.
- Sales in USD increased 11% year over year to $11.5 million; organic growth up 11%
- Gross profit increased 13% year over year to $5.9 million
- Net income increased 495% to $866 thousand
- Adjusted EBITDA increased 27% year over year to $2.3 million
- Sales increased 5% in constant currency; organic constant currency growth up 5%
- Cash flow from operations was $1.5 million for the quarter, up 111%; total cash at March 31, 2021 was $21.4 million.
“The first quarter of 2021 was a solid quarter for us, as the majority of our customer base returned to more normalized operations,” stated David Wolf, President and Chief Executive Officer. “We achieved $11.5 million in sales, an 11% year over year growth, with improved gross profit margins and profitability. Sales of consumables and services, which closely correlate to increased activity at our customer sites, augmented by our market share gains were up over 33% in the quarter. As expected, equipment sales were down somewhat, partially as a result of significant forward buying in the EU in the fourth quarter to take advantage of tax expiring incentives as well as reduced third party equipment sales as we had no large lab build-outs in the quarter. Sales into the human clinical market were up substantially, driven by strong demand for consumables and services. Sales into the cell biology/research markets also grew substantially, albeit off a much smaller base, while sales into the animal breeding market were down. Gross profit margins were up 0.8% at 51.0% primarily due to product mix. We were pleased to see our adjusted EBITDA rebound to 20.1% of sales for the quarter versus 17.6% in the prior year quarter.”
Mr. Wolf continued, “Following the end of the quarter, we closed on the acquisition of Tek-Event Pty Ltd., based just outside of Sydney, Australia. Tek-Event is the manufacturer of the Cell-Tek Microscope Chamber, a specialized product for controlling temperature, air flow, humidification, and air quality that is used in ART and laboratory markets worldwide. Tek-Event is also a value-added reseller of a select range of capital equipment and consumables, including those manufactured by Hamilton Thorne. Tek-Event serves approximately 90% of IVF clinics in Australia. While this is a relatively small transaction, it is strategic and accretive. In addition to this transaction, we have an active pipeline and are actively working on multiple opportunities and, with $21.4 million in cash and $8.0 million in lines of credit availability, we are well positioned to execute on acquisition opportunities.”
Mr. Wolf added, “We are clearly on a path to normalized activity in the US and, at a slower pace, in many of our other major markets. Unfortunately, other large markets, such as India, struggle with the worst impacts of the pandemic. With these exceptions, ART clinics are largely open and the consensus is that, on a worldwide basis, they are operating at roughly 90% of capacity. Many clinics report they are as busy as they have ever been as they serve pent-up patient demand. This trend is positive for our services and consumables business. On the other hand, we see somewhat conflicting market signals in the capital equipment side of our business, with continued caution on capital expenditures with many of our customers, while we also have a record number of new labs in our pipeline. Based on these positive industry trends, we are planning to continue to make investments in personnel, R&D programs, and systems to support our growth, with an eye to balancing top-line growth with sustained EBITDA performance in the mid-term and EBITDA expansion over the longer term.”
“I would like to point out that, like many other businesses, we are beginning to experience shortages and longer lead-times in some finished goods that we resell as well as some key electronic components and parts incorporated into the instruments that we manufacture. We are managing through these disruptions but are mindful that we may see an impact on sales in the second quarter, which could continue for a period of time that is difficult to predict.”
The Company has scheduled a conference call on Tuesday, May 25, 2021 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 9531697. 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), research, and cell biology markets. Hamilton Thorne markets its products and services under the Hamilton Thorne, Gynemed, Planer, Embryotech Laboratories, and Tek-Event 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 Adjusted EBITDA, Organic Growth, and Constant Currency as non-IFRS measures, which are used by management as measures 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