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Revenues up 22% to $14.1 million; Adjusted EBITDA up 9% to $2.5 million
BEVERLY, Mass. and TORONTO, May 19, 2022 (GLOBE NEWSWIRE) -- 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, 2022.
Sales in USD increased 22% year over year to $14.1 million; sales in constant currency increased 26%
Gross profit increased 17% year over year to $6.9 million
Net income decreased 36% to $556 thousand
Adjusted EBITDA increased 9% year over year to $2.5 million
Organic growth was 8% for the quarter in constant currency; 4% as reported
Cash flow from operations was $243 thousand for the quarter; total cash at March 31, 2022 was $17.1 million.
“The first quarter of 2022 was a solid quarter for Hamilton Thorne as we achieved $14.1 million in sales, a 22% year over year growth, despite having supply chain issues leading to the delay in producing over $500 thousand in orders in Q1 and an approximately 4% negative impact from exchange rate fluctuations,” stated David Wolf, President and Chief Executive Officer. “Gross profit and EBITDA margins were somewhat down this quarter at 48.7% and 17.9% respectively, as the production delay involved some of our highest margin products and as we continue to see increased costs of materials and shipping due to supply chain issues. We did institute across-the-board price increases in January that will have a positive effect on margins as they layer in over the first half of the year. We had consistent growth across all of our product categories, fields of use, and geographic areas that we serve, with sales of capital equipment showing the greatest gains, primarily due to the addition of IVFtech workstation and incubator sales.”
Three Month Periods Ending March 31,
Statements of Operations:
Basic earnings per share
Diluted earnings per share
Statements of Financial Position as at:
Mar. 31, 2022
Dec. 31, 2021
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").
The Company reported that operating expenses were generally in line with expectations, with travel returning to historical levels and increased costs associated with maintaining investments in R&D and sales and support personnel.
Mr. Wolf added, “Looking forward into the balance of 2022, our Company is in a strong position. We continue to expect solid sales performance, based on the positive industry trends in our field and as demand and growth have returned to pre-pandemic levels in nearly every market that we serve. We have resolved the supply chain issues that led to production delays in Q1 although it is likely to take us into Q3 to work through the accumulated backlog. While we do see the possibility for additional quarter-to-quarter variability during the year due to currency fluctuations, inflationary pressures, and future supply chain issues that could continue to impact margins and profitability, we feel that we are well positioned to continue to execute on our strategy of driving long-term growth and EBITDA expansion by investing in our organic growth, while building scale, enhancing our product offerings, and expanding our geographic and direct sales footprint through acquisitions.
Commenting on the Company’s M&A activities, Mr. Wolf stated, “We have an extensive pipeline and are actively working on multiple acquisition opportunities. With $17 million in cash, $12.5 million in committed lines of credit availability, and further debt capacity, we are well positioned to continue to execute on our acquisition program.”
The Company has scheduled a conference call on Thursday, May 19, 2022 at 10:00 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 6977143. 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, Tek-Event, IVFtech, 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 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
Michael Bruns, CFO
Hamilton Thorne Ltd.
Hamilton Thorne Ltd.
Bristol Investor Relations