BEVERLY, Mass. and TORONTO, Feb. 13, 2018 (GLOBE NEWSWIRE) — 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.
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 & CEO
Hamilton Thorne Ltd.
Michael Bruns, CFO
Hamilton Thorne Ltd.