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 unaudited financial and operational results
for the quarter and six months ended June 30, 2021.
Highlights
- Sales increased 71% year over year to $12.5 million for the
quarter; sales for the six-month period increased 36% to $24
million; constant currency increase of 62% for the quarter and 29%
for the six-month period
- Gross profit increased 69% to $6.4 million for the quarter;
increased 36% to $12.3 million for the six-month period
- Net income was $482 thousand for the quarter and $1.35 million
for the six-month period, versus net losses of $594 thousand and
$449 thousand in the prior year periods
- Adjusted EBITDA increased 334% to $2.45 million for the quarter
and 99% to $4.77 million for the six-month period
- Organic growth in USD was 70%, 61% in constant currency; 35%
organic growth for the six-month period, 29% in constant
currency
- Cash generated from operations was $1.7 million for the
quarter, and $3.2 million for the six-month period; total cash on
hand at June 30, 2021 was $20.6 million
“Our solid start to the year continued in the second quarter,”
stated David Wolf, President and Chief Executive Officer. “Sales of
$12.5 million was a record quarter for us, and was up over 70%
versus the second quarter of 2020, which we all know was
meaningfully impacted by slowdowns related to Covid-19. Sales of
$24 million for the six months increased 36% over the prior year.
We were pleased to see our adjusted EBITDA results rebound to 19.6%
of sales in Q2, and 19.8% of sales for the six-month period.”
|
Three and Six-Month Periods Ending June 30 |
|
Three Months |
Six Months |
Statements of Operations: |
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
Sales |
$ |
12,527,310 |
$ |
7,332,559 |
|
$ |
24,046,198 |
$ |
17,727,635 |
|
Gross profit |
|
6,395,437 |
|
3,789,611 |
|
|
12,271,109 |
|
9,012,405 |
|
Operating expenses |
|
5,600,087 |
|
4,075,644 |
|
|
10,206,897 |
|
8,316,654 |
|
Net income (loss) |
|
482,419 |
|
(594,343 |
) |
|
1,348,294 |
|
(448,941 |
) |
Adjusted EBITDA |
|
2,449,574 |
|
573,150 |
|
|
4,766,644 |
|
2,400,875 |
|
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 as at: |
Jun. 30, 21 |
Dec. 31, 20 |
Cash |
$ |
20,586,715 |
$ |
21,828,443 |
Working capital |
|
22,820,731 |
|
22,076,872 |
Total assets |
|
69,811,775 |
|
69,808,718 |
Non-current liabilities |
|
6,030,149 |
|
7,008,568 |
Shareholders' equity |
|
52,813,030 |
|
51,065,925 |
|
|
|
|
|
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").
Mr. Wolf continued, “Sales of consumables and services, which
closely correlate to increased activity at our customer sites,
augmented by our market share gains, were up over 80%, while
equipment sales, which have been taking longer to recover, were up
over 55% for the quarter. Sales into the human clinical market were
up substantially for the quarter and first half, driven by strong
demand for all products and services. Sales into the cell
biology/research markets also grew substantially for both periods,
albeit off a much smaller base, while sales into the animal
breeding market were down for both periods. Gross profit margins
were down slightly to 51.1% primarily due to product mix but were
slightly up versus Q1 of this year.”
The Company continues to be active with its acquisition program.
In April, the Company acquired Tek-Event Pty. Ltd., the
manufacturer of the Cell-Tek Microscope Chamber, a specialized
workstation that is used in ART and laboratory markets worldwide
with direct sales operations in Australia. In July, the Company
acquired IVFtech ApS, which manufactures laminar flow workstations
for controlling temperature, air flow, and air quality in ART and
laboratory markets worldwide, as well as flatbed incubators and a
number of accessories and related products. The Company also
acquired IVFtech’s affiliated direct sales business, K4 Technology
ApS. These two recent acquisitions add a number of high-quality
product lines with significant growth potential to our product
portfolio, and establish a direct sales presence for the entire
Hamilton Thorne product range in Australia and the Nordics region
of Denmark, Sweden, Norway, Finland and Iceland. In addition to
these transactions, the Company has an active pipeline and is
working on multiple opportunities. With approximately $20 million
in cash and an $8 million acquisition line of credit, Hamilton
Thorne is well positioned to execute on additional acquisition
opportunities.
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.
OUTLOOK
Mr. Wolf added, “Our outlook for the balance of the year
continues to be impacted by the Covid-19 pandemic. During the first
half of the year, we were clearly seeing normalized sales activity
in the US and in many of our other major markets. However, the
resurgence of Covid-19 cases in certain parts of the world based on
new variants has added substantial uncertainty to the short- and
mid-term outlook. We continue to experience shortages and longer
lead-times and, in some cases, higher prices, for some finished
goods that we resell, as well as some components incorporated into
the products that we manufacture. We have been managing through
these disruptions but are concerned that we may see an impact on
sales and profitability in the second half, which could continue
for a period of time that is difficult to predict and which may
possibly affect our ability to meet our growth plans and
acquisition objectives.”
Conference Call
The Company will hold a conference call on Wednesday, August 18,
2021, at 11:00 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 5099691. 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, IVFtech, Embryotech
Laboratories, and Tek-Event 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 & CEOHamilton Thorne Ltd.
978-921-2050ir@hamiltonthorne.ltd |
Michael Bruns, CFO Hamilton Thorne
Ltd.978-921-2050ir@hamiltonthorne.ltd |
Glen AkselrodBristol Investor
Relations905-326-1888glen@bristolir.com |
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