BEVERLY, Mass. and TORONTO, April 27, 2017 (GLOBE NEWSWIRE) -- 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 audited financial results for the fourth quarter and year-ended December 31, 2016.
Sales increased 16.4% to $10.51 million, led by the contribution from its newly acquired Embryotech business, as well as strong growth in sales of LYKOS® clinical laser systems and increased revenues from after sale services. Fourth quarter sales increased 39% to over $3.65 million, with net income and EBITDA of $508,000 and $760,000 respectively, a record quarter for the Company. For the year, including the effect of $271,000 of one-time expenses relating to the Embryotech acquisition, the Company reported a net income of $679,000, EBITDA of $1.26 million and EPS of $0.01 per share. Cash flow from operations was $990,000, and total cash at December 31, 2016 amounted to $1.8 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 in September. I am pleased to report that the integration of the businesses continues to progress 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 development 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, “We are pleased to have achieved year over year sales growth in our base instruments consumables and services business, despite continued foreign exchange headwinds as well as changes in distributor relationships in certain markets, which created challenges to growth, 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. 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.”
2016 Business Highlights
- In June 2016, the Company joined founding members Illumina, Merck KGaA, Darmstadt, Germany, and Genea as a new member of the Global Fertility Alliance, a collaboration to advance excellence in fertility technologies and processes within the human ART laboratory.
- In September, the Company purchased Embryotech, a leader in providing quality control services and testing assays to the human ART community. The acquisition was accretive to earnings in 2016.
- The Company introduced several new software modules for its CASA systems, including its new, easy-to-use, Remote Capture System for the animal ART market, an Internal Quality Control module and other improvements for the human market.
- Hamilton Thorne continues to strengthen its IP position. In 2016, the Company received a US patent (Continuation in Part) covering its multi-wavelength Laser Assembly for Use with a Microscope.
- In 2016, Hamilton Thorne’s products were referenced by customers at world-leading clinics, research labs and academic institutions in over 200 papers from prestigious journals such as Fertility and Sterility, Cryobiology, Human Reproduction, Journal of Assisted Reproduction and Genetics, Theriogenology, Cell Stem Cell, and Reproductive Toxicology.
|Financial Results||Fourth Quarter and Year-Ended December 31|
|Statements of Operations:||2016||2015||2016||2015|
|Basic earnings per share||$||0.01||$||0.01||$||0.01||$||0.01|
|Diluted earnings per share||$||0.01||$||0.01||$||0.01||$||0.01|
|Statements of Financial Position as at:||Dec. 31 16||Dec. 31 15|
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").
Results of Operations for Year-Ended December 31, 2016
Hamilton Thorne sales increased 16.4% to $10,514,803 for the year-ended December 31, 2016, an increase of $1,480,945 from $9,033,858 during the previous year. These increases were attributable to strong increases in clinical laser and instrument services sales plus the addition of three and one-half months of revenues from our new subsidiary, Embryotech, offset by somewhat lower imaging systems sales and declines in research systems sales.
Gross profit for the year increased 19.1% to $6,862,592 in the year-ended December 31, 2016, compared to $5,760,410 in the previous year. Gross profit as a percentage of sales increased to 65.3% for 2016 versus 63.8% for the year-ended December 31, 2015 due to product mix and the impact of higher Embryotech margins.
Operating expenses increased 31.3% or $1,400,930 to $5,885,122 for the year-ended December 31, 2016, up from $4,484,192 for the previous year, primarily resulting from the addition of Embryotech operating expenses post-closing, the significant expenses incurred to complete this acquisition, continued strategic investments in research and development and sales and marketing resources, all partially offset by reductions in other categories due to continued expense controls.
Net income decreased 33.9% to $678,947 for the year-ended December 31, 2016, versus net income of $1,027,534 for the prior year, a decrease of $348,587, attributable to increased operating and acquisition expenses together with increased amortization of intangibles, and increased interest expense, partially offset by one quarter of revenue and gross profit growth primarily attributable to the acquired assets of Embryotech.
EBITDA for the year-ended December 31, 2016 decreased 9.5% to $1,261,088 versus $1,392,764 in the prior year, due to the decline in net income, partially offset by increased amortization and interest expenses.
Fourth Quarter 2016 Results
For the three months ended December 31, 2016, sales were up 38.9% from $2,626,748 to $3,648,854. Gross profit increased 48.6% to $2,477,931 versus $1,667,025 for the prior year. Operating expenses were up 55.5% to $1,870,097 versus $1,203,491 for the prior year primarily due to the addition of Embryotech operating expenses post-closing, the significant expenses incurred to complete this acquisition, continued strategic investments in research and development and sales and marketing resources, and increased amortization on intangibles, all partially offset by reductions in other categories resulting from continued expense controls.
In the fourth quarter of 2016, the Company net income increased 33.0% to $507,680 and EBITDA increased 49% to $760,493, versus net income of $380,740 and EBITDA of $510,508, for the prior year’s fourth quarter. These increases were primarily due to increased sales and gross profits resulting from the Embryotech acquisition, partially offset by increased acquisition and operating expense.
The Company also announced that it has granted a total of 2,135,000 stock options to purchase common shares pursuant to the Company’s incentive stock option plan. The options are exercisable at Cdn $0.59 per share, and expire ten years from the date of grant. A total of 1,100,000 of these options were granted to the Company’s Directors, CEO, CTO and CFO. Grants to directors and employees vest over four years.
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.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, certain non-recurring expenses and certain other non-cash amounts (“EBITDA”) as a non-IFRS measure, which is used by management as a measure of financial performance. See section entitled “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.
Source:Hamilton Thorne Ltd.