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Atrium Innovations Announces Financial Results for the Second Quarter of 2009
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>>Company Delivers Continued Organic Growth in EBITDA and Net Earnings
All amounts are in US dollars.
Quebec City (Quebec), August 11, 2009 – Atrium Innovations Inc. (TSX: ATB), a leading developer, manufacturer and marketer of science-based and professionally supported products for the Health and Nutrition industry, today announced its financial results for the second quarter of 2009.
Second quarter highlights:
• Sales were US$72.6 million;
• EBITDA was US$18.5 million and net earnings of US$11.2 million, or US$0.34
per diluted share;
• Cash flows from operations of $17.4 million supporting a solid balance
sheet and acquisition strategy;
• The Company completed the integration of EAB manufacturing facility into
Mucos in Germany;
• Excluding the negative impact from the Euro conversion of our European
businesses into US dollars, our diluted earnings per share increased by
14% while our branded organic growth was 7% in the quarter.
During the second quarter ended June 30, 2009, Atrium recorded revenues of $72.6 million, a 4% increase compared to adjusted revenues of $70.0 million in the second quarter of 2008. This increase is mainly attributable to the acquisition of Nutri-Health at the end of 2008 and AOV during 2008 and to the branded business organic growth. Excluding the negative currency impact on converting the euro of our European business into US dollars, revenues would have increased by 10%. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2009 were $18.5 million compared to $18.2 million for the same period in 2008. Net earnings from continuing operations for the second quarter of 2009 were $11.2 million or $0.34 per diluted share, up 5% compared to $10.7 million or $0.32 per diluted share in the second quarter of 2008. Excluding the negative currency conversion fluctuations, net earnings from continuing operations would have increased by 14%.
In the quarter, as expected the CMO (contract manufacturing) business was softer than the record quarter last year. This was compensated by the branded business organic growth of slightly above 7%.
“We continue to deliver top and bottom line growth, despite a challenging operating environment,” said Pierre Fitzgibbon, President and Chief Executive Officer of Atrium Innovations. “Our business strategy of acquiring science-based products in distribution channels that support these offerings is driving profitable, organic growth throughout our businesses demonstrating resilience in economic downturn. Our Company is on strong footing to capitalize on additional opportunities and is well positioned for continued growth both organically and through acquisition.”
For the six-month period ended June 30, 2009, revenues were $143.2 million, up 9% from $131.1 million for the adjusted corresponding period in 2008. Excluding the negative currency fluctuations, revenues would have increased by 16%. EBITDA for the first half of 2009 was $36.2 million compared to $36.6 million for the same period last year. For the first half of 2009, net earnings from continuing operations were $21.8 million or $0.66 per diluted share compared to $21.2 million or $0.64 per diluted share for the same period in 2008. Excluding the negative currency fluctuations, net earnings from continuing operations would have increased by 11%.
For the second quarter of 2009, cash flows from continuing operating activities, before changes in non-cash working capital items, were stable at $12.0 million compared to $12.2 million for the corresponding period in 2008. For the six-month period ended June 30, 2009, cash flows from continuing operating activities, before changes in non-cash working capital items, were $23.6 million compared to $23.9 million for the same period in 2008. As at June 30, 2009, the Company had a total debt amounting to $157.9 million and a cash balance of $16.2 million. The Company has a credit facility that provides $300 million of borrowing capacity. The credit facility matures only in 2012 and the Company is in compliance with all its financial covenants.
About Atrium
Atrium Innovations Inc. is a recognized leading developer, manufacturer and marketer of science-based and professionally supported products for the Health & Nutrition industry. The Company focuses primarily on growing segments of the health and nutrition markets which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of finished products through its highly specialized sales and marketing network in more than 35 countries, primarily in North America and Europe. Atrium has over 800 employees and operates seven manufacturing facilities. Additional information about Atrium is available on its website at www.atrium-innovations.com.
Conference Call and Webcast
Atrium will hold its quarterly conference call and webcast to discuss its 2009 second quarter results on Wednesday, August 12, 2009 at 10:30 a.m. Eastern time. Participants may access the call by using the following numbers: 416-644-3415, 514-807-8791 or 800-733-7560. A live webcast is also available via the Company’s website at www.atrium-innovations.com in the Investors section. A replay of the webcast will also be available on our website for a period of 30 days. A copy of Atrium’s interim unaudited financial statements will also be available on the Company’s website.
Caution Regarding Non-GAAP Measures
This press release is based on reported earnings in accordance with Canadian generally accepted accounting principles (GAAP). It is also based on earnings before interest, income taxes, depreciation and amortization (EBITDA) and gross margin. These measures do not have a standardized meaning prescribed by GAAP; therefore, other issuers using these terms may calculate them differently. Management believes that a significant portion of the users of its Consolidated Financial Statements and MD&A analyze the Company's results based on these performance measures.
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, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable, 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. For additional information with respect to these and other factors, see the Company’s quarterly and annual filings with the Canadian securities commissions. 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.
Investor Relations:
Mario Paradis
Vice President and Chief Financial Officer
Tel.: 418 652-1116
email Mario Paradis
Media Relations:
Frédéric Tremblay
Edelman
Tel.: 514 844-6665, ext. 231
email Frederic Tremblay
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