HAMILTON THORNE REPORTS FINANCIAL AND OPERATIONAL RESULTS FOR THE QUARTER-ENDED MARCH 31, 2019
BEVERLY, MA and TORONTO, Ontario – May 23, 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-ended March 31, 2019.
- Sales in USD increased 9% year over year to $7.6 million; sales in constant currency were up 13%
- Gross profit increased 1% year over year to $3.9 million
- Net income decreased to a loss of $564 thousand
- Adjusted EBITDA increased 1% year over year to $1.5 million; 4% in constant currency
- Organic growth in USD was 6% for the quarter; 10% in constant currency
- Cash flow from operations was $1.5 million for the quarter, up 94%; total cash at March 31, 2019 increased to $14.4 million.
“This was a strong start to the year for Hamilton Thorne,” stated David Wolf, President and Chief Executive Officer. “We made substantial progress on several of our business goals, including booking our first two large lab buildouts in the US and substantially increasing cell culture media sales in our established markets worldwide. We also had strong growth in our image analysis product line, our branded pipettes, and our toxicology testing consumables. Sales of our laser products declined in the first quarter, partially as a result of the introduction of our next generation LYKOS DTSTM product. Sales into the human clinical market were flat, primarily driven by a reduction in equipment sales in the EMEA and Asia Pacific regions, offset by the significant increase in equipment sales in the US, as well as increases in consumables sales worldwide. Sales into the animal breeding market also grew substantially, while sales into research markets were somewhat down. Gross profit margins were 52.1% due to the increased contribution of third-party products related to large laboratory sales as well as the mix of our own branded products.”
Michael Bruns, the Company’s Chief Financial Officer commented, “Our reported results for the first quarter were substantially impacted by the approximately 8% reduction in the value of the Euro versus the US dollar from the first quarter of 2018 to this quarter. Sales growth in US dollars increased 9% year over year while sales in constant currency were up 13%. Organic growth was 6% for the quarter; 10% in constant currency. Assuming the Euro to Dollar exchange rate stays relatively stable, this will continue to effect reported results on a declining basis for the balance of the year. Net income was negatively impacted for the quarter by the non-cash increase in the fair value of a derivative relating to outstanding convertible debentures of approximately $1 million. This IFRS required derivative revaluation will continue to occur each quarter until the debentures are converted to equity or mature in April 2020.”
Mr. Wolf added, “Cash flow from operations was $1.5 million for the quarter. With continued earnings growth, strong cash flow from operations and a cash balance of $14.4 million at the end of the quarter, we believe we are well-positioned to grow our business both organically and through our acquisition program.”
The Company reported that operating expenses were generally in line with expectations, with increased spending in sales and marketing and R&D, and a reduction in G&A spending due to reduced compensation expense.
The Company will hold a conference call on Thursday May 23, 2019 at 11:00 a.m. EDT to review highlights of 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 6491626. 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 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