BEVERLY, Mass. and TORONTO, May 15, 2023 (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 results for the quarter ended March 31, 2023.
Financial Highlights
- 1st quarter sales increased 19% to $16.7 million; sales for the quarter increased 24% on a constant currency basis
- 1st quarter adjusted EBITDA increased 13% to $2.8 million; 4th quarter EBITDA increased approximately 18% on a constant currency basis
- Organic sales growth was 15% for the quarter
- Gross profit margin was 50.6% for the quarter up 185 bps versus the prior year
- Net income decreased to $77 thousand for the quarter.
David Wolf, President and Chief Executive Officer, of Hamilton Thorne Ltd. commented, “I am excited to report that 2023 has gotten off to an exceptionally strong start. We had a record first quarter, posting sales of $16.7 million and Adjusted EBITDA of $2.8 million, versus sales of $14.1 million and Adjusted EBITDA of $2.5 million in the prior year. This represents 19% sales growth on a reported basis, and 24% sales growth on a constant currency basis. Our organic growth, which eliminates the effects of both acquisitions and exchange rates, was up 15% for the quarter, reflecting continued market share gains.”
“We continue to see strong demand across all of our product categories, with equipment sales up 20% and consumables, software, and services up 18%,” Mr. Wolf added. “I was particularly pleased to see our gross profit margins continue to improve, up over 180 basis points versus the prior year. Net income was down, largely due to significant M&A related expenses that we incurred in the quarter.”
Key Financial Data and Comparative Results
| Three- Month Period Ending March 31, | ||||
| Statements of Operations: | 2023 | 2022 | ||
| Sales | $16,690,104 | $14,051,835 | ||
| Gross profit | 8,444,702 | 6,850,092 | ||
| Operating expenses | 8,007,567 | 5,889,196 | ||
| Net income (loss) | 77,405 | 556,289 | ||
| Adjusted EBITDA | 2,837,358 | 2,514,056 | ||
| Basic earnings per share | $0.00 | $0.00 | ||
| Diluted earnings per share | $0.00 | $0.00 | ||
| Statements of Financial Position as at: | Mar. 31, 2023 | Dec. 31, 2022 | ||
| Cash | $15,885,325 | $16,673,401 | ||
| Working capital | 25,307,396 | 23,750,886 | ||
| Total assets | 87,187,165 | 86,667,258 | ||
| Non-current liabilities | 16,578,588 | 16,849,584 | ||
| Shareholders' equity | 57,920,679 | 56,222,162 | ||
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").
Francesco Fragasso, the Company’s CFO commented, “We used approximately $100 thousand of cash from operations for the quarter, primarily related to timing of increased accounts receivable and reduced accounts payable at quarter end. Inventories were up slightly as we begin to unwind the significant investments in inventory that we made in 2022, offset by our continued growth. We ended the quarter with a strong liquidity position, with cash on hand of $15.9 million and $10.5 million available under committed lines of credit, including our $8 acquisition million line of credit that was renewed in May.”
See the Company’s Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.
Outlook
Mr. Wolf continued, “We continue to feel that our company is in a great position as demand for our products and services remains strong. We expect solid sales performance, based on the positive trends in our field and as demand and growth in local currencies have returned to pre-pandemic levels in nearly every market that we serve. Also, while we faced 4-5% currency headwinds in Q1 if the current trends continue, we should see some tailwinds in the second half of the year.” 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 significant cash on hand, our unused line of credit, and further debt capacity, we are well positioned to continue to execute on our acquisition program.”
Conference Call
The Company has scheduled a conference call on Monday, May 15, 2023 at 9:00 a.m. EDT to review highlights of the results. All interested parties are welcome to join the conference call by dialing toll free 1-833-630-1956 in North America, or 1-412-317-1837 from other locations, and requesting the “Hamilton Thorne 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, Microptic, 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 sections 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 | |
| Hamilton Thorne Ltd. | Hamilton Thorne Ltd. | |
| 978-921-2050 | 978-921-2050 | |
| ir@hamiltonthorne.ltd | ir@hamiltonthorne.ltd | |
| Glen Akselrod | ||
| Bristol Investor Relations | ||
| 905-326-1888 | ||
| glen@bristolir.com | ||
