Hamilton Thorne Reports Revenue for the Quarter and Nine Months Ended September 30, 2024

Rhea-AI Summary

Hamilton Thorne reported strong Q3 2024 financial results with revenue growing 24% to $19.4 million and Adjusted EBITDA increasing 72% to $3.7 million. The company achieved 14% organic growth for the quarter, with equipment sales up 20% and consumables, software, and services growing over 27%. Despite posting a net loss of $1.18 million for the quarter, gross profit increased 27% to $9.7 million. The company generated $3.5 million in operating cash flow for the nine months and maintains $6.9 million cash on hand. Management confirmed 2024 guidance with expected sales between $78-82 million, representing 10-15% organic growth. The company expects to complete its going private transaction on November 29, 2024.

Positive

• Revenue increased 24% YoY to $19.4 million in Q3
• Adjusted EBITDA grew 72% to $3.7 million
• Gross profit increased 27% to $9.7 million
• Strong organic growth of 14% in Q3
• Operating cash flow improved to $3.5 million from $1.4 million YoY

Negative

• Net loss widened to $1.18 million in Q3 from $785,000 in prior year
• Working capital decreased to $15.77 million from $17.64 million at year-end 2023
• Cash position declined to $6.85 million from $9.73 million at year-end 2023

News Market Reaction – HTLZF

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-0.38% News Effect

On the day this news was published, HTLZF declined 0.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Revenue of $19.4 million and Adjusted EBITDA of $3.7 million for the quarter

Beverly, Massachusetts and Toronto, Ontario--(Newsfile Corp. - November 14, 2024) - Hamilton Thorne Ltd. (TSX: HTL), a leading provider of precision instruments, laboratory equipment, consumables, software, and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported unaudited condensed interim financial results for the quarter and nine months ended September 30, 2024.

Financial Highlights

• Sales increased 24% year over year to $19.4 million for the quarter; sales for the nine-month period increased 19% to $57.9 million; sales increased 22% for the quarter and 18% for the nine-month period on a constant currency basis

• Gross profit increased 27% to $9.7 million for the quarter; and increased of 20% to $29.7 million for the nine-month period

• Net loss was $1,181 thousand for the quarter and $2,631 thousand for the nine-month period, versus net loss of $785 thousand and $1,147 thousand in the prior year periods

• Adjusted EBITDA increased 72% to $3.7 million for the quarter and increased 34% to $10.4 million for the nine-month period

• Organic sales growth was 14% for the quarter and 12% for the nine-month period

• Cash generated from operations was $3.5 million in the nine-month; total cash on hand at September 30, 2024 was $6.9 million

• Confirming guidance for the full 2024 with sales range between $78 and $82 million, representing 10-15% organic growth.

Dr. Kate Torchilin, Chief Executive Officer of Hamilton Thorne Ltd. commented, "We are pleased to report a strong third quarter with revenue growth of 24% and gross profit margin growth of 27%. Equipment sales growth was 20% for the quarter, while consumables, software, and services grew over 27%. Our organic growth, which eliminates the effects of both the acquisitions and exchange rates, was up 14% for the quarter."

Adjusted EBITDA increased 72% to $3.7 million for the quarter and increased 34% to $10.4 million for the nine-month period. These changes were due primarily to increased sales and gross profits offset by increased operating expenses.

Cash generated by operations was $3.5 million for the nine-months ended September 30, 2024, compared to $1.4 million of cash generated by operations in the same period of the prior year. The increase is primarily due to the increase in sales and gross margin partially offset by investment in working capital to support the sales growth.

Key Financial Data and Comparative Results

			Three- and Nine-Month Periods Ending September 30
			Three Months										Nine Months
Statements of Operations:			2024					2023					2024				2023
Sales		$	19,380,534				$	15,655,622				$	57,855,782			$	48,781,825
Gross profit			9,749,396					7,675,207					29,661,250				24,658,643
Operating expenses			10,129,492					8,428,819					30,294,772				25,317,299
Net income (loss)			(1,180,938			)		(785,247			)		(2,756,503		)		(1,147,259			)
Adjusted EBITDA			3,706,785					2,155,120					10,446,208				7,821,073
Basic earnings per share			($0.01			)		($0.01			)		($0.02		)	$	0.00
Diluted earnings per share			($0.01			)		($0.01			)		($0.02		)	$	0.00

 

Statements of Financial Position as at:				September. 30, 2024					Dec. 31, 2023
Cash			$	6,853,565				$	9,734,607
Working capital				15,769,535					17,643,555
Total assets				108,718,108					109,277,073
Non-current liabilities				24,757562					27,595,111
Shareholders' equity				65,321,575					64,651,380

 

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 and Transaction Update

Dr. Torchilin stated, "We continue to be on track to achieve double digit organic growth in 2024. We are confirming our guidance for the full twelve months of 2024, as we anticipate delivering between $78 and $82M revenue, equivalent to 10-15% organic growth for the full year."

Dr. Torchilin continued, "As previously reported, we have satisfied the major conditions to the completion of our going private transaction and now expect to close on November 29, 2024. I would like to thank our shareholders, many of whom have been with us for many years, for the trust and confidence that you have place in management and the support you have provided our Company."

See the Company's Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.

The press release, with accompanying financial information, will be posted on the Company's website at www.hamiltonthorne.ltd and on www.sedarplus.ca..

About Hamilton Thorne Ltd. (www.hamiltonthorne.ltd)

Hamilton Thorne is a leading global provider of precision instruments, laboratory equipment, 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, Gynetics, and Embryotech Laboratories brands, through its growing sales force and distributors worldwide. Hamilton Thorne Ltd.'s customer base consists of fertility clinics, university research centers, animal breeding facilities, pharmaceutical companies, biotechnology companies, and other commercial and academic research establishments.

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 section 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.

For more information, please contact:

Kate Torchilin, President & CEO
Hamilton Thorne Ltd.
978-921-2050
ir@hamiltonthorne.ltd

Francesco Fragasso, CFO
Hamilton Thorne Ltd.
978-921-2050
ir@hamiltonthorne.ltd

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229915

FAQ

What was Hamilton Thorne's (HTLZF) revenue growth in Q3 2024?

Hamilton Thorne reported a 24% year-over-year revenue growth to $19.4 million in Q3 2024.

What was Hamilton Thorne's (HTLZF) organic growth rate in Q3 2024?

The company achieved 14% organic growth in Q3 2024.

What is Hamilton Thorne's (HTLZF) revenue guidance for full-year 2024?

The company expects full-year 2024 revenue between $78-82 million, representing 10-15% organic growth.

When is Hamilton Thorne (HTLZF) expected to complete its going private transaction?

The going private transaction is expected to close on November 29, 2024.