QUEBEC CITY, Nov. 7 /PRNewswire-FirstCall/ - Atrium Innovations Inc. today announced that it had revenues of US$100.9 million for the third quarter ended September 30, 2007, up 37.7% from US$73.3 million for the corresponding quarter in 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2007 were US$19.2 million, up 74.8% from US$11.0 million for the same period in 2006. Net earnings increased 52.2% to US$9.8 million for the quarter ended September 30, 2007, compared to US$6.4 million for the same period last year. Fully diluted earnings per share for the third quarter of 2007 were up 50.0% to US$0.30 per share compared to US$0.20 per share for the same period in 2006.
For the nine-month period ended September 30, 2007, revenues were US$272.0 million up 21.7% from US$223.6 million for the corresponding period in 2006. EBITDA for the first nine months of 2007, was US$46.9 million, an increase of 37.7% compared to the US$34.0 million for the same period last year. Net earnings increased 27.4% to US$25.0 million generating a fully diluted earnings per share of US$0.76, compared to US$19.6 million and US$0.60 earnings per share for the first nine months of 2006.
“Our results for the last quarter include an increase of almost 75% in EBITDA. This demonstrates the soundness of our development strategy. Our organic growth as well as our targeted acquisition plan in highly fragmented markets are the corner stone of our success. In keeping with this strategy, we completed on July 12, 2007, the acquisition of Mucos Emulsions GmbH (“Mucos”), our largest acquisition to date. Mucos provides us with a high-performance European platform that will be used as a strategic lever and will allow us to pursue our growth in our Health & Nutrition Division in the markets that we serve”, stated Pierre Fitzgibbon, Atrium’s President and Chief Executive Officer.
Cash flows from operations (before changes in non-cash working capital items) for the third quarter of 2007 were US$11.2 million and were US$7.8 million for the same period last year. In July 2007, Atrium modified its existing revolving credit facility by increasing the authorized amount to US$350 million with the possibility to increase it up to US$425 million under certain conditions. This increases the financing flexibility of the Company and will permit it to continue its acquisition strategy in each of his Divisions.
A Solid Management Team
In addition, during the last quarter, the Company announced the appointment of Dr. Serge Yelle as Executive Vice-President, Health & Nutrition Division. In addition to supervising the operations of certain business units, Dr. Yelle has played a key role over the past few years in the integration of companies acquired by Atrium, including Douglas Laboratories and Mucos.
“Atrium today has reached the stage of a mature corporation and can also count on a highly-skilled and experienced management team demonstrating longstanding expertise and vast know-how. This is in addition to the talent and commitment of our 600 or so employees based in various regions of the world. All these assets have enabled Atrium to become a true world leader in its field in just a few years and they provide us with a solid foundation to pursue our growth and development strategy aggressively”, Mr. Fitzgibbon said.
Health & Nutrition Division
Revenues from the Health & Nutrition Division were US$50.9 million for the third quarter ended September 30, 2007, representing an increase of 80.0% over revenues of US$28.3 million for the same period last year. This increase can primarily be explained by the acquisition of Mucos in July 2007. EBITDA was US$15.3 million for the third quarter of 2007 representing an increase of 109.5% over the same period in 2006 where the EBITDA was US$7.3 million. Most of this increase came from the acquisitions of Mucos in July 2007 and AquaCap in January 2007 as well as from organic growth.
“Our third quarter results reflect our determination to pursue Atrium’s business plan, which is focused on maintaining strong organic growth, facilitating the smooth and rapid integration of acquired companies and pursuing our proactive prospecting aimed at identifying new targets for acquisition that are both financially and commercially promising. These ingredients, which have ensured our success to date and represent Atrium’s key principles, will continue to guide us in our present and future development plans”, added Dr. Serge Yelle, Executive Vice-President, Health & Nutrition Division.
Active Ingredients & Specialty Chemicals Division
Revenues from the Active Ingredients & Specialty Chemicals Division were US$50.0 million for the third quarter ended September 30, 2007, representing an increase of 11.1% over revenues of US$45.0 million for the same period in 2006. EBITDA was US$4.0 million for the third quarter of 2007, representing an increase of 6.7% over 2006 EBITDA of US$3.7 million. This increase is attributable to organic growth and to the development of new markets.
“Our growth performance for the last quarter is very satisfactory. Our growth rate in 2007, which is superior to that of our main competitors, allows us to pursue our initiatives in order to follow through with our strategy to offer our targeted customers a global solution in all our markets”, said Charles Boulanger, President of the Active Ingredients & Specialty Chemicals Division.
About Atrium
Atrium Innovations Inc. is a recognized leading developer, manufacturer and marketer of science-based products for the cosmetics, pharmaceutical, chemical and nutrition industries. The Company focuses primarily on growing segments of the health and personal care markets which are benefiting from the trends towards healthy living and the ageing of the population. Atrium markets a broad portfolio of active ingredients, specialty chemicals and health and nutrition finished products through its highly specialized sales and marketing network in more than 50 countries, primarily in North America, Europe and Asia. Atrium has over 600 employees and operates four manufacturing facilities. Additional information about Atrium is available on its Web site at www.atrium-innov.com.
Conference Call and Webcast
Atrium will hold its quarterly conference call and webcast to discuss its Third Quarter of 2007 on Thursday November 8, 2007 at 10:00 a.m. Eastern time. Participants may access the call by using the following numbers: 416-644-3418, 514-807-8791 or 1-800-591-7539. A live webcast is also available via the Company’s website at www.atrium-innov.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 is 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.
CONTACT: Investor Relations: John Dempsey, Vice President, Finance and
Chief Financial Officer, (418) 652-1116 ext. 287,
jdempsey@atrium-innov.com; Media Relations: Frederic Tremblay, HKDP, (514)
395-0375 ext. 234, ftremblay@hkdp.qc.ca
