Hamilton Thorne Announces Record Revenue for the Quarter and Year Ended December 31, 2017

Preliminary Results Highlight 109% Revenue and 168% Adjusted EBITDA Growth for the Year

BEVERLY, Mass. and TORONTO, Feb. 13, 2018 (GLOBE NEWSWIRE) -- Hamilton Thorne Ltd. (TSX-V:HTL), a leading global 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, 2017.

Based on preliminary unaudited results, 2017 revenues increased 109% to over $22 million with adjusted EBITDA for the year of approximately $4.9 million (168% year over year growth). Fourth quarter sales increased 95% to over $7.1 million, with adjusted EBITDA expected to increase 33% to approximately $1.3 million. With the Embryotech Laboratories business under its ownership for over a year, the Company has increased its focus on organic growth measures. Organic growth for the year was approximately 7% and approximately 14% in the fourth quarter, largely driven by increases in its US equipment business. 

David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. commented, “2017 was another transformational year for us as we completed a significant expansion of product line, geographic coverage and scale when we acquired Gynemed in April. Now that the work of integrating our acquired businesses is largely behind us, we are focusing on growth, including the significant expansion of our US-based sales team, as well as additional cross-selling and marketing synergies between the North American and European-based businesses. The addition of significant operations in Europe has also diversified our currency mix and reduced our exposure to currency fluctuations, and along with the strengthening of the Euro versus the US Dollar, has helped mitigate much of the foreign exchange headwinds we saw in 2015 and 2016.”

Commenting on the quarter, Mr. Wolf added, “Sales were positively impacted by significant sales growth in the Company’s equipment business in the US as its expanded sales force gained traction and also by two large laboratory equipment installations in Europe. As expected, gross profit and EBITDA margins were somewhat lower due to these two unusually large sales of third-party equipment in one quarter, the strategic broadening of our product lines, as well as the substantial investments the Company has made in additional sales and marketing resources.”

The Company ended the year with cash on hand of $5.7 million versus $1.8 million at December 31, 2016.

OUTLOOK

Mr. Wolf added, “Looking forward into 2018, we expect to see accelerating growth in our worldwide business, driven by continued strong performance of our services and consumables brands, augmented by substantial growth in the US as our new, direct sales team hits its stride. We expect gross profit margins to normalize as we manage product mix between our own higher margin products and services and third-party products. We will also continue to make investments in sales and marketing and R&D personnel and programs, which may marginally impact EBITDA margins in the short term but should set us up for long term success. Finally, our acquisition program continues to be an important element in our growth plans.”

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, 2017 on or about April 19, 2018.