QUEBEC CITY, QC, May 13, 2013 /PRNewswire/ - 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 endorsed by healthcare practitioners, today released its results for the quarter ended March 31, 2013.
First Quarter 2013 Highlights:
(All amounts are in US dollars.)
- Revenue organic growth of 8.7% over last year, to reach $119.5 million
- EBITDA of $23.4 million or 19.6% of revenues
- Diluted EPS of $0.42 for the quarter
- Operating cash flows before changes in non-cash working capital is $18.7 million
- In February 2013, creation of a joint venture in China to leverage core brands - FOSIUM Innovations
"We start 2013 on a strong note. Revenues and EBITDA are reaching record levels, reflecting our continued focus on expanding our brands' organic growth as well as reaping some benefits from ongoing efforts on operational improvements and facilities optimization," said Pierre Fitzgibbon, President and CEO. "Organic revenue growth was solid again in the Retail and HCP North America channels with increases of 18.8% and 8.0% over last year. Europe was up 1.7%, a satisfactory performance considering economic conditions.
"During 2013, we will continue to build on the strength of our brands in the marketplace and focus on improving our manufacturing process and efficiencies. In the context of today's regulatory environment, we increasingly value the importance of our vertical integration, and that comparative advantage will benefit us greatly in the future," concluded Mr. Fitzgibbon.
For the quarter ended March 31, 2013, Atrium recorded revenues of $119.5 million, representing an increase of 8.7%, compared to revenues of $110.0 million in 2012. The increase is mainly driven by the solid performance of the Retail and Healthcare Practitioners channels in North America with growth of 18.8% and 8.0%, respectively. The euro/USD exchange rate had no significant impact this quarter.
EBITDA for the quarter was $23.4 million or 19.6% of revenues compared to adjusted EBITDA of $23.0 million or 20.9% of revenues for the same period in 2012. The EBITDA's increase of $0.4 million over last year is largely due to the increase in revenues and was partially offset by the larger overall contribution of the lower margin Retail channel.
Net income attributable to shareholders was $14.1 million in 2013 compared to $11.7 million in 2012, while net earnings per share on a diluted basis was $0.42, as compared to adjusted net earnings per share of $0.40 for the same period in 2012. See table below for full details of reconciliation to adjusted financial data.
Cash flows from operating activities before changes in non-cash working capital items and interest expenses were $18.7 million compared to adjusted cash flows from operating activities before changes in non-cash working capital items and interest expenses of $20.0 million in 2012.
During the quarter, under the NCIB (Normal Course Issuer Bid) program, the Company repurchased and cancelled 10,200 common shares for a total consideration of $0.1 million.
About Atrium Innovations
Atrium 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 1,100 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 first quarter results on May 14, 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 ERP-related inventory adjustment net of taxes. Adjusted EPS and diluted EPS are calculated using the adjusted net income.
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 March 31,|
|Gross profit (1)||60.0||58.7|
|Net income attributable to shareholders||14.1||11.7|
|Diluted net earnings per share||0.42||0.32|
|Reconciliation to non-GAAP Financial Data|
|Net income attributable to shareholders||14.1||11.7|
|Restructuring costs, after-tax||-||3.0|
|Regulatory legal contingency and related costs, after-tax||-||0.1|
|Adjusted net income||14.1||14.8|
|Adjusted Diluted EPS||0.42||0.40||+5%|
| (1) Gross profit means revenues less cost of sales.
(2) 2012 adjusted EBITDA means income before interest, tax, depreciation, amortization, regulatory legal contingency and related costs and restructuring costs.
SOURCE ATRIUM INNOVATIONS INC.