Hamilton Thorne Ltd. (TSX-V:HTL), a leading global provider of
precision instruments, consumables, software and services to the
Assisted Reproductive Technologies (ART), research, and cell
biology markets, today reported preliminary selected unaudited
financial results for the fourth quarter and year ended December
31, 2022.
Based on preliminary unaudited results:
- 2022 revenues increased 11% to a record $58.2 million; annual
sales increased approximately 19% on a constant currency basis
- 4th quarter sales increased 5% to $16.4 million; sales for the
quarter increased approximately 14% on a constant currency
basis
- 2022 adjusted EBITDA increased 3% to a record $10.1 million;
annual EBITDA increased approximately 12% on a constant currency
basis
- 4th quarter adjusted EBITDA increased 2% to $3.0 million; 4th
quarter EBITDA increased approximately 11% on a constant currency
basis
- Organic growth was approximately11% for the quarter and for the
twelve-month period
- Gross profit margin was approximately 52% for the quarter and
50% for the year
David Wolf, President and Chief Executive Officer, of Hamilton
Thorne Ltd. commented, “2022 was another successful year for
Hamilton Thorne. With well-above market organic growth of 11% for
the year and the quarter, we continue to gain market share.
Reported sales of $58.2 million for the year and $16.4 million for
the quarter 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 by approximately 8% for the
quarter and 7% for the year.”
“Sales were up across all of our product categories on a
constant currency basis with equipment sales, leading the way with
strong organic growth, augmented by the addition of IVFtech sales
for a full year,” Mr. Wolf added. “We also completed a significant
expansion of our product line, geographic coverage, and scale when
we acquired Microptic at the end of November, expanding our product
lines and establishing a direct sales footprint in Spain. I was
particularly pleased to see our gross profit margins improving,
primarily due to economies of scale, product mix and increased
direct sales of our own products, augmented by the addition of
higher-margin Microptic sales for one month. We also grew adjusted
EBITDA to record levels, even as we navigated supply chain and
inflation issues and continued to invest in sales and support
resources, R&D, and enhancing our operations.”
The Company generated approximately $2.2 million of cash from
operations for the year despite significant investments in
inventory to address supply chain issues, ending the year with cash
on hand of $16.7 million, $3 million available under existing lines
of credit and $8 million line of credit under renewal to further
support its acquisition program.
OUTLOOK
Mr. Wolf continued, “Looking forward into 2023, we continue to
feel that our company is in a strong position. We expect solid
sales performance, based on the positive industry 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. Q1
bookings continued to be strong and supply chain issues appear to
have lessened in recent months. We believe 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.”
Francesco Fragasso, the Company’s Chief Financial Officer added,
“Based on year to date trends in exchange rates, we see foreign
currency headwinds easing in Q1, and if this trend continue it will
provide 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 and our
unused line of credit, and further debt capacity, we are well
positioned to continue to execute on our acquisition program.”
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, 2022 in early April
2023.
All amounts are in US dollars, unless specified
otherwise, and results, with the exception of adjusted EBITDA and
organic sales growth measures, are expressed in accordance with the
International Financial Reporting Standards ("IFRS").
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 earnings before
interest, income taxes, depreciation, amortization, share-based
compensation expense, changes in fair value of derivatives and
identified acquisition costs related to completed transactions
(“Adjusted EBITDA”) and organic sales growth 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 Hamilton Thorne
Ltd. 978-921-2050ir@hamiltonthorne.ltd |
Francesco Fragasso, CFO Hamilton Thorne Ltd.
978-921-2050ir@hamiltonthorne.ltd |
Glen AkselrodBristol Investor
Relations905-326-1888glen@bristolir.com |
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