BEVERLY, Mass. and TORONTO, May 14, 2024 (GLOBE NEWSWIRE) -- Hamilton Thorne Ltd. (TSX: HTL), a leading provider of precision instruments, laboratory equipment, consumables, software, and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported audited financial results for the quarter ended March 31, 2024.

Financial Highlights

• 1st quarter sales increased 16% to $19.4 million; sales for the quarter increased 15% on a constant currency basis, on the high-end of guidance.
• Adjusted EBITDA increased 24% to $3.5 million or 18% of sales, in line with guidance.
• Organic sales growth was 9%.
• Gross profit margin was 52.4% for the quarter, up 182 bps versus the prior year.
• Net loss was $936 thousand.
• Confirming guidance for the full 2024 with sales range between $78 and $82 million, representing 10- 15% organic growth.

Dr. Kate Torchilin, Chief Executive Officer of Hamilton Thorne Ltd. commented, “The first quarter of 2024 was another record for Hamilton Thorne. We delivered results in line with the guidance given for sales and EBITDA. Sales were up 16% for the quarter, gross profit margin improved by over 180 basis points, and EBITDA grew 24%, outpacing our sales growth, despite continued investment in our business. Our equipment sales grew 13%. Consumables, software, and services grew 19%, reflecting continued strong demand for these largely high-margin, recurring revenue categories.”

“Gross profit as a percentage of sales increased to 52.4% for the three months ended March 31, 2024, versus 50.6% for the same period of 2023 primarily due to increased sales of higher margin proprietary equipment and software, services, and branded consumables. Constant currency sales as reported were up 15%, and organic growth was 9%, reflecting continued strong demand for our products in IVF/ART clinics and laboratories globally.”

Francesco Fragasso, the Company’s CFO commented, “In Q1 2024, the company generated approximately $648 thousand of cash from operations, which was a substantial increase versus $527 thousand cash used in operations in the same period of 2023.” The Company ended the year with cash on hand of $7.5 million, and $4.5 million available under committed lines of credit.

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").

Results of Operations for the Three months ended March 31, 2024

For the three months ended March 31, 2024, sales were up 16% from $16,690,104 to $19,392,565, or up 15% on constant currency basis. Organic sales were up 9%. Gross profit was up 20% to $10,164,903 versus $8,444,702 for the prior year quarter. Gross profit percentage increased to 52.4% from 50.6% for the quarter versus last year period, primarily due to higher growth of consumables, branded products and the sales of other high margin products. Operating expenses, excluding expenses related to acquisition and M&A activities, increased 27% to $9,519,789 for the quarter, up from $7,499,708 from the previous year quarter, primarily due to the addition of Gynetics expenses, increased depreciation and amortization due to investment in capacity expansion, and increased headcount costs due to additions to customer- facing employees to support our growth, and cost of living adjustments.

In the first three months of 2024 the Company’s net loss was $936,051 while Adjusted EBITDA increased 24% to $3,530,951 (or 18% of sales) versus net income of $77,404 and Adjusted EBITDA of $2,837,358 (or 17% of sales) for the prior year quarter. These changes were due primarily to increased sales and gross profits offset by increased operating expenses, interest, depreciation and amortization and non-recurring non-operating expenses.

See the Company’s Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.

Outlook

Dr. Torchilin stated, “In my first quarter as CEO of Hamilton Thorne Ltd, I have focused on further strengthening our performance and execution. We will continue to leverage our strengths as a premier innovator, manufacturer, and marketer of important products for our core markets, while accelerating operational efficiency to drive profitable growth and enhance shareholder value. I am confident in our team's ability to create a robust future for our company and to drive improvements in the field of infertility treatments helping millions of families to fulfill their dreams of having a baby. We are on track to achieve double digit organic growth in 2024, continuing through the longer term. We are confirming our guidance for the full twelve months of 2024, and we anticipate delivering between $78 and $82M revenue, equivalent to 10-15% organic growth for the full year.”

Francesco Fragasso, the Company’s Chief Financial Officer, added, “Management is committed to delivering continued EBITDA margin expansion through growing revenues and margins while controlling recurring operating expenses. We anticipate Q2 of 2024 to be in line with the plan to achieve the full year guidance. Cash flow is expected to improve through 2024 as the investment in expanding capacity has been completed and working capital is stabilizing.”

Commenting on the Company’s M&A activities, Dr. Torchilin stated, “We continue to focus on building Hamilton Thorne Ltd. into the premier company serving IVF/ART laboratories globally. We continue to build a strong pipeline and continue actively working on pursuing multiple acquisition opportunities. With cash on hand and our unused line of credit, and further debt capacity, and our strong track record of successful acquisitions, we are well positioned to continue to execute on our M&A program.”

See the Company’s Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.

Conference Call

The Company has scheduled a conference call on Tuesday, May 14, 2024, 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- 833-366-1126 in North America, or 1-412-317-0703 from other locations, and requesting the “Hamilton Thorne 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.

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.

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, Microptic, Gynetics, 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 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.

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