Revenues up 6% for the quarter and 14% for the nine months despite supply chain issues and significant foreign currency swings
Organic growth of 17% for the Quarter
BEVERLY, Mass. and TORONTO, Nov. 22, 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 and nine months ended September 30, 2022.
Sales increased 6% year over year to $13.5 million for the quarter; sales for the nine-month period increased 14% to $41.8 million; sales increased 17% for the quarter and 22% for the nine-month period on a constant currency basis
Organic growth was 17% for the quarter and 12% for the nine-month period
Gross profit increased 8% to $6.5 million for the quarter and increased 12% to $20.5 million for the nine-month period
Net income of $99 thousand for the quarter and $930 thousand for the nine-month period, versus net income of $249 thousand and $1.6 million in the prior year periods
Adjusted EBITDA increased 3% to $2.1 million for the quarter and increased 4% to $7.0 million for the nine-month period
Cash generated from operations was $471 thousand for the nine-month period; total cash on hand at September 30, 2022 was $15.7 million
“We continue to see strength in the fundamentals of our business, with well above-market organic growth of 17% for the quarter and 12% year to date. Reported sales of $13.5 million were negatively impacted by exchange rate fluctuations at our European and UK operations. These currency fluctuations in translating financial statements into the presentation currency (US dollar), reduced reported revenues for the quarter by approximately $1.3 million,” stated David Wolf, President and Chief Executive Officer. “Gross profit margins for the quarter were up 100 basis points versus the prior year at 48.5%, due to product mix and as the full impact of the price increases that we instituted at the beginning of the year are being recognized. EBITDA margins were somewhat down this quarter at 15.6%, in part due to the impact of currency fluctuations, and as expenses increased due to continued planned investments in growth, as well inflationary pressures leading to increased personnel costs and other expenses.”
Mr. Wolf continued, “Sales into the human clinical market, grew significantly faster than our overall growth in Q3, and continued to be our largest target market coming in at 90% of our revenues. Sales into the animal ART market were also up for the three- and nine-month periods, while sales into the research and cell biology markets were down for both periods. Sales into the Americas and the EMEA regions grew for both periods, while sales into Asia were somewhat down, partially as a result of renewed regional Covid-19 related lockdowns in China. From a product perspective, our equipment business continued to have the largest growth in both periods, largely due to the addition of the IVFtech product lines, as well as growth in equipment sales in the EMEA region.”
Key Financial Data and Comparative Results
Three- and Nine-Month Periods Ending September 30
Statements of Operations:
Net income (loss)
Basic earnings per share
Diluted earnings per share
Sep. 30, 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 and trade show expenses returning to historical levels, and increased costs associated with maintaining investments in R&D and investments in sales and other personnel to support growth.
Operating cash flow was positive $471 thousand for the nine-month period (positive $909 thousand in Q3 2022). Cash balances were down at $15.7 million at the end of the quarter versus $17.9 million at prior year-end, in part due to an approximately $2.4 million reduction attributable to the unrealized differences due to exchange rate impacts on significant non-US dollar denominated cash balances which the Company maintains in order to support its international operations.
Mr. Wolf added, “Looking forward into the balance of 2022, we continue to feel that we are in a strong position. We 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. Q4 bookings continued to be strong and barring new supply chain issues, we expect to continue to achieve well above market organic growth. 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 $15.7 million in cash, $11.6 million in unused lines of credit, and further debt capacity, we are well positioned to continue to execute on our acquisition program.”
The Company has scheduled a conference call on Tuesday November 22, 2022 at 9:00 a.m. EST to review highlights of the results. All interested parties are welcome to join the conference call by dialing toll free 1-833-630-1956 in North America, or 1-412-317-1837 from other locations, and requesting the “Hamilton Thorne Earnings Conference Call”. 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
Francesco Fragasso, CFO