Another Strong Performance - Q3 Solid Organic Growth
MONTREAL, Nov. 11, 2013 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB) ("Atrium" or "the Company"), a globally recognized leader in
the development, manufacturing and commercialization of innovative,
science-based natural health products, today released its results for
the third quarter ended September 30, 2013.
Third Quarter 2013 Highlights: (All amounts are in US dollars.)
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Revenue of $121 million, representing 12% organic growth (10.6% currency
neutral)
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EBITDA of $23 million or 19.4% of revenue, an increase of 7% over last
year
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Adjusted diluted EPS of $0.41 for the quarter
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Operating cash flows before changes in non-cash working capital of $20
million
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Recently acquired 70% of Mucos Pharma CZ
"Our momentum was maintained in the third quarter with organic growth of
12% and an EBITDA margin of 19.4% in-line with our guidance range. We
are pleased by the performance of all our business units in North
America as we continue to further leverage our solidly established
Healthcare Practitioner and Retail platforms. Our European operations
are basically flat while market conditions there remain challenging,"
said Pierre Fitzgibbon, President and CEO.
"The recent acquisition of a controlling stake in Mucos Pharma CZ will
reinforce our position in Central and Eastern Europe with Wobenzym and
will eventually be leveraged with cross-selling opportunities. As
indicated before, this transaction will be accretive to net income
immediately following the depletion of the inventory purchased by Mucos
Pharma CZ prior to the transaction which we expect for the end of the
year. Consequently, our fourth quarter 2013 consolidated gross and
EBITDA margins will be temporarily negatively impacted.
"As we complete fiscal 2013, we remain focused on executing our plan for
operational improvements targeting the integration of certain key
functions and the optimization of our supply chain. As we stride
towards operational excellence and build on the strength of our leading
brands, these further enhance our competitive position," concluded Mr.
Fitzgibbon.
For the quarter ended September 30, 2013, Atrium recorded revenues of
$120.5 million, representing an increase of 11.9%, compared to revenues
of $107.6 million in 2012. The increase was mainly driven by the
continuing solid performance of the North American Retail and
Healthcare Practitioner as well as Private Label channels, with growth
of 16.2%, 8.7% and 15.2%, respectively. Without the currency impact,
revenue growth would have been 10.6%.
EBITDA for the quarter was $23.3 million or 19.4% of revenues compared
to adjusted EBITDA of $21.8 million or 20.3% of revenues for the same
period in 2012. The EBITDA increase of $1.5 million over last year is
largely due to higher revenues.
Net income attributable to shareholders was $10.7 million in 2013
compared to $13.4 million in 2012, while adjusted earnings per share on
a diluted basis was $0.41, unchanged from the same period in 2012.
Without the after-tax impact of the convertible debentures, the net
income would have increased by $3.9 million to reach $14.6 million
during the quarter versus $14.4 million last year. See table below for
full details of reconciliation to the 2012 adjusted financial data.
Cash flows from operating activities before changes in non-cash working
capital items and interests were $19.9 million compared to adjusted
cash flows from operating activities before changes in non-cash working
capital items and interests of $18.6 million in 2012.
During the quarter, under the NCIB (Normal Course Issuer Bid) program,
the Company repurchased and cancelled 55,784 common shares for a total
consideration of $0.9 million.
About Atrium Innovations
Atrium Innovations Inc. (TSX: ATB) is a globally recognized leader in
the development, manufacturing, and commercialization of innovative,
science-based natural health products which are distributed in more
than 35 countries. The Company owns healthcare practitioner and
specialized retail product brands that are at the forefront of science,
innovation and education. Atrium has over 1,300 employees and operates
seven manufacturing facilities complying with current Good
Manufacturing Practices. Additional information is available at www.atrium-innovations.com.
Conference Call and Webcast
Atrium will hold its quarterly conference call and webcast to discuss
its 2013 third quarter results on November 12, 2013 at 8:00 a.m.,
Eastern Time. Participants may access the call by using the following
numbers: 514-807-9895 (Montreal area), 888-231-8191 (Toll Free) or
647-427-7450 (Toronto area and overseas). They may also access the live
webcast via the Company's website at www.atrium-innovations.com in the Presentation & Events section of the News Center menu. The replay of the webcast will also remain available for a period
of 30 days. A copy of Atrium's financial statements will also be
available on the Company's website.
Caution Regarding Non-GAAP Financial Measures
The Company provides non-GAAP financial measures (Gross profit*, EBIT*,
EBITDA*, Adjusted EBITDA*, Adjusted net income*, Adjusted cash flows
from operating activities* and Adjusted earnings per share ("EPS") *)
as supplemental information regarding its operational performance.
These non-GAAP financial measures are directly derived from the
Company's financial statements and are presented in a consistent
manner. The Company uses these measures for the purposes of evaluating
its historical and prospective financial performance, as well as its
performance relative to competitors. These measures also help the
Company to plan and forecast for future periods as well as to make
operational and strategic decisions. The Company believes that
providing this information to investors, in addition to IFRS measures,
allows them to see the Company's results through the eyes of
management, and to better understand its historical and future
financial performance.
The presentation of this additional information is not prepared in
accordance with IFRS. Therefore, the information may not necessarily
be comparable to that of other companies and should be considered as a
supplement to, not a substitute for, or superior to, the comparable
measures calculated in accordance with IFRS.
* Gross profit means revenues less cost of sales. EBIT means net income
excluding other revenues (expenses) and the income tax expense. EBITDA
means the addition of EBIT and depreciation/amortization. Adjusted
EBITDA means the addition of EBIT, depreciation and amortization,
restructuring costs, goodwill impairment, regulatory legal
contingencies and related legal costs, one-time ERP-related inventory
adjustment and acquisition-related costs. Adjusted net income means the
addition of net income attributable to shareholders and the after-tax
amount of restructuring costs, acquisition-related costs, interest
expenses for acquisition-related contingent liabilities, goodwill
impairment, legal contingencies and related legal costs and one-time
ERP-related inventory adjustment. Adjusted cash flows from operating
activities is calculated using cash flows from operating activities
before changes in non-cash working capital items less the impact of
restructuring costs, legal contingencies and related legal costs and
one-time inventory adjustment net of taxes. Adjusted EPS are calculated
using the adjusted net income. The adjusted diluted EPS also take into
account the impact of the convertible debentures even if it is
anti-dilutive under IFRS.
Cautionary Note and Forward-Looking Statements
This press release contains certain forward-looking statements with
respect to the Company. These forward-looking statements, by their
nature, require the Company to make certain assumptions and necessarily
involve known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in
these forward-looking statements. Forward-looking statements are not
guarantees of performance. These forward-looking statements, including
financial outlooks, may involve, but are not limited to, comments with
respect to the Company's business or financial objectives, its
strategies or future actions, its targets, expectations for financial
condition or outlook for operations and future contingent payments.
Words such as "may", "will", "would", "could", "expect", believe",
"plan", "anticipate", "intend", "estimate", "continue", or the negative
or comparable terminology, as well as terms usually used in the future
and the conditional, are intended to identify forward-looking
statements. Information contained in forward-looking statements is
based upon certain material assumptions that were applied in drawing a
conclusion or making a forecast or projection, including management's
perceptions of historical trends, current conditions and expected
future developments, as well as other considerations that are believed
to be appropriate in the circumstances. The Company considers theses
assumptions to be reasonable based on information currently available
to it, but cautions the reader that these assumptions regarding future
events, many of which are beyond its control, may ultimately prove to
be incorrect since they are subject to risks and uncertainties that
affect the Company and its business.
For additional information with respect to these and other factors and
assumptions underlying the forward-looking statements made in this
press release, see the Company's quarterly and annual Management
Discussion and Analysis filed with the Canadian securities
commissions. The forward-looking information set forth herein reflects
the Company's expectations as at the date of this press release and is
subject to change after such date. The Company disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
other than as required by law.
Attachments: Financial Summary
Atrium Innovations Inc.
Financial Summary (unaudited)
(in millions of US dollars except per share amounts)
Consolidated results for the quarters ended September 30,
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2013
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2012
|
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Change
|
|
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$
|
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$
|
|
|
|
|
|
|
|
|
|
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Revenues
|
120.5
|
|
107.6
|
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+11.9%
|
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Gross profit (1) |
59.2
|
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54.5
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49.2%
|
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50.7%
|
|
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|
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EBITDA
|
23.3
|
|
21.8 (2) |
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+6.9%
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19.4%
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20.3%
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|
|
|
|
|
|
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Net income attributable to shareholders
|
10.7
|
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13.4
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Diluted EPS
|
0.34
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0.40
|
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|
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Reconciliation to non-GAAP Financial Data
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Net income attributable to shareholders
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10.7
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13.4
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Convertible debentures impact, after-tax
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3.9
|
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1.0
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Regulatory legal contingency and related costs, after-tax
|
-
|
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0.3
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Adjusted diluted net income
|
14.6
|
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14.7
|
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Adjusted Diluted EPS
|
0.41(3) |
|
0.41
|
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-
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(1)
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Gross profit means revenues less cost of sales.
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(2)
|
2012 adjusted EBITDA means income before interest, tax, depreciation,
amortization and regulatory legal contingency and related costs.
|
(3)
|
Take into account the dilutive impact of the convertible debentures that
are having an anti-dilutive effect under IFRS.
|
Atrium Innovations Inc.
Financial Summary (unaudited)
(in millions of US dollars except per share amounts)
Consolidated results for the nine-month period ended September 30,
|
2013
|
|
2012
|
|
Change
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
361.4
|
|
327.0
|
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+10.5%
|
|
|
|
|
|
|
|
|
Gross profit (1) |
178.9
|
|
169.0
|
|
|
|
|
49.5%
|
|
51.7%
|
|
|
|
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EBITDA
|
70.5
|
|
66.3 (2) |
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+6.4%
|
|
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19.5%
|
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20.3%
|
|
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Net income attributable to shareholders
|
38.0
|
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37.3
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Diluted EPS
|
1.21
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|
1.09
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Reconciliation to non-GAAP Financial Data
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Net income attributable to shareholders
|
38.0
|
|
37.3
|
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Convertible debentures impact, after-tax
|
7.6
|
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1.7
|
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Restructuring costs and regulatory costs, after-tax
|
-
|
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3.5
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Adjusted diluted net income
|
45.6
|
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42.5
|
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Adjusted Diluted EPS
|
1.28 (3) |
|
1.18
|
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+8.5%
|
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|
(1)
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Gross profit means revenues less cost of sales.
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(2)
|
2012 adjusted EBITDA means income before interest, tax, depreciation,
amortization, regulatory legal contingency and related costs and
restructuring costs.
|
(3)
|
Take into account the dilutive impact of the convertible debentures that
are having an anti-dilutive effect under IFRS.
|
SOURCE Atrium Innovations Inc.