Hamilton Thorne Reports Revenue For The Quarter And Six Months Ended June 30, 2023

Revenue of $16.4 million and Adjusted EBITDA of $2.8 million for the quarter

BEVERLY, Mass. and TORONTO, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported audited financial results for the quarter and six months ended June 30, 2023.

Financial Highlights

• Sales increased 15% year over year to $16.4 million for the quarter; sales for the six-month period increased 17% to $33.1 million; sales increased 14% for the quarter and 19% for the six-month period on a constant currency basis
• Gross profit increased 21% to $8.5 million for the quarter; increase of 22% to $17.0 million for the six-month period
• Net loss was $439 thousand for the quarter and $362 thousand for the six-month period, versus net income of $275 thousand and $831 million in the prior year periods
• Adjusted EBITDA increased 16% to $2.8 million for the quarter and increased 15% to $5.7 million for the six-month period
• Organic sales growth was 5% for the quarter and 10% for the six-month period
• Cash generated from operations was $1.8 in the quarter; total cash on hand at June 30, 2023 was $16.4 million

David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd. commented, “Our strong start to 2023 continued in the second quarter with revenue growth of 15% for the quarter and 17% for the year. Equipment sales growth was in the single digits for the quarter, reflecting some delays on orders until Q3, while consumables, software, and services grew over 20%. Our strategy to increase sales of higher margin proprietary equipment and software, services, and branded consumables combined with increased direct sales of products, yielded gross profit margins increases to 52.0% for the quarter and 51.3% for the six months ended June 30, 2023, versus 49.8% and 49.3% in the prior year. Our organic growth, which eliminates the effects of both acquisitions and exchange rates, was up 5% for the quarter and 10% for the six-month period.”

Key Financial Data and Comparative Results

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").

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

Mr. Wolf continued, “We continue to feel that our company is in a great position as demand for our products and services remains strong based on the positive trends in our field and we expect to continue to have organic sales growth in the 10% range in the second half of the year. Also, while we faced 4-5% currency headwinds in Q1, these impacts largely disappeared in Q2 and, if the current trends continue, we should see some tailwinds in the second half of the year.”

Commenting on the Company’s M&A activities, Francesco Fragasso, the Company’s CFO stated, “We have an extensive pipeline and are actively working on multiple acquisition opportunities. With liquidity of approximately $26.4 million from our significant cash on hand and unused lines of credit, along with further debt capacity, we are well positioned to continue to execute on our acquisition program.”

Conference Call

The Company has scheduled a conference call on Thursday August 17, 2023 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 1-833-630-1956 in North America, or 1-412-317-1837 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.

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, 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 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 Adjusted EBITDA, Organic Growth, and Constant Currency as non-IFRS measures, which are used by management as measures of financial performance. See sections 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.