BEVERLY, MA and TORONTO, ON--(Marketwired - Aug 24, 2016) - Hamilton Thorne Ltd. (TSX VENTURE:HTL), a leading provider of precision laser devices and advanced image analysis systems for the assisted reproductive technologies (ART) and developmental biology research markets, today reported operational and financial results for the quarter and six months ended June 30, 2016.
Hamilton Thorne reported total sales of $2.4 million for the quarter ended June 30, 2016, a 7% increase versus the prior year. Sales increased 2% to $4.4 million for the first six months of 2016. Net income and EBITDA for the quarter and six-months declined versus the prior year periods due to planned investments in research and development and sales and marketing resources, as well as increases in general and administrative expenses in the second quarter relating to the Company's acquisition program.
David Wolf, President and Chief Executive Officer stated, "We were gratified to see that our significant investments in sales and support resources and market development funding led to a return to solid sales growth in the second quarter. While margins were down slightly at 63.4% for the quarter and 63.5% for the six-months ended June 30, 2016, we consider that a small price to pay in exchange for strong sales growth in what continues to be a difficult foreign exchange environment. The third quarter started with an extremely strong July. We remain optimistic that we will see solid revenues, operating margins, and net income in the second half of the year."
Mr. Wolf continued, "Sales into our core in vitro fertilization (IVF) clinic market continued to grow, driven by a substantial increase in sales of our clinical laser systems. We also saw a substantial increase in service sales, contributing to our objective to increase our recurring revenues. Operating expenses were generally in line with expectations, reflecting our increased investment in R&D and sales and marketing, acquisition program related costs and a significant increase in non-cash expense resulting from stock option grants."
| | | |
| | | Three and Six Month Periods Ending June 30 |
| | | Three Months | | Six Months |
| Statements of Operations | | 2016 | | 2015 | | 2016 | | 2015 |
| Sales | | $2,387,972 | | $2,234,699 | | $4,417,797 | | $4,332,596 |
| Gross profit | | 1,513,325 | | 1,453,087 | | 2,806,335 | | 2,768,945 |
| Operating expenses | | 1,323,877 | | 1,090,840 | | 2,540,972 | | 2,217,506 |
| Net income | | 122,025 | | 303,288 | | 145,172 | | 438,800 |
| EBITDA | | 233,435 | | 378,449 | | 349,857 | | 592,697 |
| Basic earnings per share | | $0.002 | | $0.005 | | $0.002 | | $0.007 |
| Diluted earnings per share | | $0.002 | | $0.004 | | $0.002 | | $0.006 |
| | | | | | | | | |
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").
Cash generated by operations increased 28% to $470,625 for the six-months ended June 30, 2016, compared to $367,243 in the comparable period of the prior year, an improvement of $103,202. The Company ended the quarter with $4.5 million in cash on hand, an increase of $175,102 from December 31, 2015.
The Company also reported that its strategy to broaden its offerings of products and services through strategic acquisitions of both operating companies and established product lines continues to be a major focus. The Company is actively working on completing additional acquisitions and expects to complete one or more acquisitions in the coming months.
The Financial Statements and accompanying Management Discussion and Analysis for the periods are available on www.sedar.com and the Hamilton Thorne website.