Hamilton Thorne announces financial and operating results

Revenues up 30%; Adjusted EBITDA up 22% for the quarter;
Revenues up 33% and Adjusted EBITDA up 67% for the nine-month period

BEVERLY, Mass. And TORONTO, November 22, 2021 (GLOBE NEWSWIRE) – Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision instruments, consumables, software and services to the assisted reproductive technology (ART), research and cell biology markets, has today announced its unaudited financial and operating results for the three and nine months ended September 30, 2021.

Strong points

  • Sales increased 30% year-over-year to $ 12.7 million for the quarter and 33% to $ 36.7 million for the nine-month period; constant exchange rate increase of 24% for the quarter and 28% for the nine-month period
  • Gross margin increased 23% to $ 6.0 million for the quarter and 31% to $ 18.3 million for the nine-month period
  • Net income was $ 249,000 for the quarter and $ 1.6 million for the nine-month period, compared to $ 459,000 and $ 10,000 for the prior year periods
  • Adjusted EBITDA increased 22% to $ 2.0 million for the quarter and 67% to $ 6.8 million for the nine-month period
  • Organic growth in USD was 16% for the quarter, 11% in constant currencies; organic growth of 28% over 9 months, 21% at constant exchange rates
  • Cash flow from operations was $ 549 thousand for the quarter and $ 3.8 million for the nine month period; total cash on hand at September 30, 2021 was $ 18.0 million

“Our third quarter demonstrated the continued strength of our business,” said David Wolf, President and CEO. “Sales of $ 12.7 million reflect a record quarter and were up 30% from the third quarter of 2020. Sales of $ 36.7 million for nine months were up 33% from last year. ‘last year. Looking at our growth excluding the impact of Covid-19 and acquisitions, we have grown our sales organically to compound annual growth of approximately 16% for the third quarter of 2021 compared to the third quarter before the 2019 pandemic. . ”

Three and nine month periods ending September 30
Three months Nine months
State of the results : 2021 2020 2021 2020
Sales $ 12,685,066 $ 9,793,572 $ 36,731,264 $ 27,521,207
Gross profit 6,020,724 4,909,228 18 291 833 13,921,632
Operating Expenses 5,553,997 4,199,819 15,760,895 12 516 473
Net income (loss) 249,319 459,289 1,597,613 10,348
Adjusted EBITDA 2,034,466 1,668,075 6 801 110 4,068,950
Basic earnings per share $ 0.00 $ 0.00 $ 0.01 $ 0.00
Diluted earnings per share $ 0.00 $ 0.00 $ 0.01 $ 0.00
Statements of Financial Position at: September 30, 21 31 December 20
Cash $ 18,047,045 $ 21,828,443
Working capital 22 634 365 22 076 872
Total assets 75 146 516 69 808 718
Non-current liabilities 10 347 127 7,008,568
Equity 54,304,600 51 065 925

All amounts are in US dollars, unless otherwise specified, and results, with the exception of adjusted EBITDA, are expressed in accordance with International Financial Reporting Standards (“IFRS”).

Mr. Wolf continued, “Sales of consumables and services, which are closely related to increased activity at our customers’ sites, augmented by our market share gains, have increased by over 30%. , while equipment sales, reflecting more normalized demand increased by the acquisition of IVFtech, increased 28% for the quarter. Gross profit margins decreased to 47.5% for the quarter and 49.8% for the nine months ended September 30, 2021, from 50.1% and 50.6% for the comparable periods in 2020, mainly due to the combination of products and channels and the increasing costs of materials and shipping. due to supply chain issues.

The Company continues to be active in its acquisition program. In July, the company acquired IVFtech ApS, which manufactures laminar flow workstations to control temperature, airflow and air quality in ART and laboratory markets around the world, as well as flatbed incubators and a number of accessories and related products. The Company also acquired IVFtech’s affiliate direct selling business, K4 Technology ApS. This acquisition adds a number of high-quality product lines with significant growth potential to our product portfolio and establishes a direct commercial presence for the entire Hamilton Thorne product line in the Nordic region of Denmark, Denmark. Sweden, Norway, Finland and Iceland.

The Company has an active pipeline and is working on multiple opportunities. With approximately $ 18 million in cash and $ 12 million in available lines of credit, Hamilton Thorne is well positioned to pursue further acquisition opportunities.

The Company reported that operating expenses were generally in line with expectations, with increased costs associated with sustaining investments in R&D and in sales and support personnel, variable costs of sales returning to historic levels, and expenses incurred. post-transaction acquisition.

OUTLOOK

Mr. Wolf added: “Our outlook for the remainder of the year is positive with normalized sales growth expected in the fourth quarter expected to continue for the foreseeable future. Although supply chain issues have created new challenges, we believe they affect all market players and we have demonstrated our ability to handle product shortages and extended delivery times without significantly impacting sales. . We expect general price increases in early 2022 which should address the margin impacts we had in the third quarter. We reiterate our warning that the resurgence of Covid-19 cases in parts of the world based on new variants and the supply chain issues we have discussed could impact sales and profitability during a difficult period to predict. “

Conference call

The Company will hold a conference call on Monday, November 22, 2021 at 11:00 a.m. EST to review results highlights. All interested parties are invited 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 the Conference ID 5078809. The updated Company investor presentation and a recording of the call will be available on Hamilton Thorne’s website shortly after the call.

The financial statements and the related MD&A for the periods are available at www.sedar.com and the Hamilton Thorne website.

About Hamilton Thorne Ltd. (www.hamiltonthorne.ltd)

Hamilton Thorne is a leading global supplier of precision instruments, consumables, software and services that reduce costs, increase productivity, improve outcomes, and enable breakthroughs in assisted reproductive technology (ART) markets. ), research and cell biology. Hamilton Thorne markets its products and services under the Hamilton Thorne, Gynemed, Planer, IVFtech, Embryotech Laboratories and Tek-Event brands, through its growing sales force and distributors around the world. Hamilton Thorne’s customer base consists of fertility clinics, academic research centers, animal husbandry facilities, pharmaceutical companies, biotechnology companies, and other commercial and academic research institutions.

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 exchange rate as non-IFRS measures, which are used by management as measures of financial performance. See the section titled “Use of Non-IFRS Measures” and “Results of Operations” in the Company’s MD&A for the periods covered for further information and a reconciliation of Adjusted EBITDA to net income.

Certain information contained in this press release may contain forward-looking statements. This information is based on current expectations which are subject to significant risks and uncertainties which are difficult to predict. Actual results may differ materially from results suggested in forward-looking statements. The Company assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until applicable securities laws. to the Company require it. Additional information identifying the risks and uncertainties is contained in the documents filed by the Company with the Canadian securities regulators, which documents are available at www.sedar.com.

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