Hamilton Thorne Announces Record Revenue for The Quarter and Year Ended December 31, 2016
HAMILTON THORNE ANNOUNCES RECORD REVENUE FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2016
Preliminary Results Highlight 37% Revenue and 45% EBITDA Growth for the Quarter
BEVERLY, MA and TORONTO, Ontario – February 22, 2017 - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART) and developmental biology research markets, today reported preliminary selected unaudited financial results for the fourth quarter and year-ended December 31, 2016.
Preliminary unaudited results show that 2016 revenues increased 16% to over $10.5 million, led by the contribution from its newly acquired Embryotech Laboratories business, as well as strong growth in sales of LYKOS® clinical laser systems and increased revenues from after sale services. Fourth quarter sales increased 37% to over $3.6 million, with net income and EBITDA expected to be over $500,000 and $750,000 respectively, a record quarter for the Company. For the year, including the effect of approximately $275,000 of one-time expenses relating to the Embryotech acquisition, the Company is expecting to report net income of approximately $650,000, and EBITDA of approximately $1.2 million.
David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. commented “2016 was a transformational year for us as we completed a significant expansion of both our financial profile and business capabilities when we acquired Embryotech Laboratories in September. I am pleased to report that the integration of the businesses is progressing smoothly and we are actively working on several growth initiatives brought about by marketing synergies between the Hamilton Thorne and Embryotech businesses. Building on our internal growth initiatives and the acquisitions of the Oosight product line in 2015 and Embryotech in 2016, we remain committed to our strategy of growth through new product innovation, organic growth and acquisition.”
Mr. Wolf added, “Based on continued foreign exchange headwinds as well as changes in distributor relationships in certain of our markets, we saw some challenges in our instrument business, particularly in the fourth quarter. Gross profit margins for the year improved to over 65% as, despite some significant pricing actions to reflect currency issues, we increased sales of high-margin software, consumables and services with recurring revenues. In order to accelerate our sales growth and get closer to our customers, we have begun to put more investment into direct sales resources in both our instrument and services businesses.”
The financial information contained in this news release is based on management's estimates and is subject to adjustment. The Company expects to release its completed audited financial statements for the year ended December 31, 2016 on or about April 26, 2017
Expansion of Board of Directors
The Company also announced that David Sable, portfolio manager for New York-based Special Situations Life Sciences Fund has joined the Company’s board of directors. Dr. Sable is a reproductive endocrinologist by training and an expert in the field of human assisted reproduction, Dr. Sable also serves on the board of directors of RESOLVE: The National Infertility Society and on the advisory board of OvaScience.
All amounts are in US dollars, unless specified otherwise, and results, with the exception of EBITDA, are expressed in accordance with the International Financial Reporting Standards ("IFRS").
About Hamilton Thorne Ltd. (www.hamiltonthorne.com)
Hamilton Thorne is a leading world-wide provider of precision instruments, consumables, software and services that reduce cost, increase productivity, improve results and enable breakthroughs in Assisted Reproductive Technologies (ART) and developmental biology research markets. Hamilton Thorne's laser products attach to standard inverted microscopes and operate as micro-surgical devices, enabling a wide array of scientific applications and In Vitro Fertilization (IVF) procedures. Its image analysis systems are designed to bring quality, efficiency and reliability to studies of reproductive cells in the human fertility, animal sciences and reproductive toxicology fields. Hamilton Thorne’s standardized toxicology assays and quality control testing services help to improve outcomes in human IVF clinics. Hamilton Thorne’s growing worldwide customer base consists of pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, animal breeding companies, and other commercial and academic research establishments, including Harvard, MIT, Yale, McGill, Oxford, Cambridge, the Smithsonian Institution, Charles River Labs, Covance, ABS Global, Sexing Technologies, Merck, Cook Medical, Novartis, Pfizer, and Dow Chemical.
Neither the Toronto 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 earnings before interest, income taxes, depreciation and amortization, (“EBITDA”) as a non-IFRS measure, which is used by management as a measure of financial performance. See section entitled “Use of Non-IFRS Measures” in the Company’s Management Discussion and Analysis for the periods covered for further information.
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
Hamilton Thorne Ltd.
ir [AT] hamiltonthorne [DOT] com
|Michael Bruns, CFO
Hamilton Thorne Ltd.
ir [AT] hamiltonthorne [DOT] com