Hamilton Thorne Announces 62% Revenue Growth

Hamilton Thorne Ltd. (TSX-V:HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART) and developmental biology research markets, today reported operational and financial results for the quarter ended March 31, 2017.

Sales increased 62% to $3.28 million for the quarter ended March 31, 2017 led by the contribution from its recently acquired Embryotech business, as well as strong growth in sales of clinical laser systems and increased revenues from after sale services. Net income and EBITDA for the quarter improved significantly to $405,237 and $635,275 versus $23,147 and $116,423, respectively in the prior year quarter. Cash flow from operations was $1.29 million, and total cash at quarter end was $2.22 million.

David Wolf, President and Chief Executive Officer stated, “We achieved solid growth in our instrument business as a result of the significant investments in sales and support resources and market development funding made over the past 6-12 months. Sales into our core in vitro fertilization (IVF) clinic market enhanced our growth, driven by the contribution of a full quarter of Embryotech sales plus a substantial increase in sales of our clinical laser systems. Margins were up at 68.0% versus 63.7% for the prior year quarter due to product mix and the impact of higher Embryotech margins.”

Mr. Wolf added, “We continue to make progress on our active acquisition program. Following the quarter end, we completed the acquisition of Gynemed GmbH & Co. KG, a leading manufacturer and distributor of consumables and equipment for the IVF clinic and laboratory markets in the well-established European ART market. This transaction adds a portfolio of premium products that are highly complementary to our existing product and service offerings and provides us with a profitable base of operations in Germany. We expect this transaction to be materially accretive to revenue and EBITDA and look forward to the opportunity to expand Gynemed product offerings into additional international markets and to increase European sales of existing Hamilton Thorne products.”

  Three Month Periods Ending March 31,
Statements of Operations:       2017 2016
 Sales $ 3,285,161 $ 2,029,825
 Gross profit 2,234,049 1,293,010
 Operating expenses 1,744,144 1,217,094
 Net income 405,237 23,147
 EBITDA 635,275 116,423
 Basic earnings per share $ 0.01 $ 0.00
 Diluted earnings per share $ 0.00 $ 0.00

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”).

The Company reported that operating expenses were generally in line with expectations, reflecting added expenses from the Embryotech business and continued investment in R&D, staffing, sales and marketing, and $55,000 of expenses related to its acquisition program.

Financial statements and accompanying Management Discussion and Analysis for the periods are available on www.sedar.com and the Hamilton Thorne website.