Revenues up 14% for the quarter and 18% for the six months despite supply chain issues and significant foreign currency swings
BEVERLY, Mass. and TORONTO, Aug. 23, 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 six months ended June 30, 2022.
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- Sales increased 14% year over year to $14.2 million for the quarter; sales for the six-month period increased 18% to $28.3 million; sales increased 22% for the quarter and 23% for the six-month period on a constant currency basis
- Gross profit increased 11% to $7.1 million for the quarter; increase of 14% to $13.9 million for the six-month period
- Net income was $275 thousand for the quarter and $831 thousand for the six-month period, versus net income of $482 thousand and $1.348 million in the prior year periods
- Adjusted EBITDA decreased 1% to $2.43 million for the quarter and increased 4% to $4.95 million for the six-month period
- Organic growth was 8% for the quarter and for the six-month period
- Cash used in operations was $438 thousand for the six-month period; total cash on hand at June 30, 2022 was $15.3 million
“The second quarter of 2022 was a continuation of what we experienced in Q1. While we reported a solid quarter, with over $14.2 million in sales, we continued to see supply chain issues leading to the delay in production of certain products. More significantly, continuing negative impacts from exchange rate fluctuations at our European and UK operations reduced reported revenues for the quarter by over $1 million and reduced reported EBITDA by over $200 thousand, which is somewhat over 8% versus steady exchange rates,” stated David Wolf, President and Chief Executive Officer. “Gross profit margins were up versus Q1 at 49.8% despite our production delays which involved some of our highest margin products, as the price increases that we instituted at the beginning of the year began to layer in during the second quarter. EBITDA margins were somewhat down this quarter at 17.1% 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, which grew significantly faster than our overall growth in Q2, continued to be our largest target market coming in at just over 90% of our revenues. Sales into the animal ART market were also up for the three- and six-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 significantly 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 had the largest growth in both periods, largely due to the addition of the IVFtech product lines, as well as significant growth in equipment sales in the EMEA region.”
|Key Financial Data and Comparative Results|
|Three- and Six-Month Periods Ending June 30|
|Three Months||Six Months|
|Statements of Operations:||2022||2021||2022||2021|
|Net income (loss)||274,537||482,419||830,826||1,348,294|
|Basic earnings per share||$0.00||$0.00||$0.01||$0.01|
|Diluted earnings per share||$0.00||$0.00||$0.01||$0.01|
|Statements of Financial Position as at:||Jun. 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 attendance returning to historical levels, and increased costs associated with maintaining investments in R&D and sales and support personnel.
Cash balances were down at $15.3 million at the end of the quarter versus $17.9 million at prior year-end. Typical working capital fluctuations, including continued investments in growing inventories (over $500 thousand) to address supply chain issues accounted for most of the reduction; approximately $750 thousand of the reduction was attributable to exchange rate impacts on significant cash balances in non-US dollar currencies 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. Q3 bookings are starting off very strong and barring new supply chain issues, we expect to achieve solid double digit organic growth. 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, 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 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, August 23, 2022 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 1-866-652-5200 in North America, or 412-317-6060 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.