QUEBEC CITY, Aug. 8 /PRNewswire-FirstCall/ - Atrium Innovations Inc. today announced that it had revenues of US$76.4 million for the second quarter ended June 30, 2007, up 2.9% from US$74.3 million for the corresponding quarter in 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2007 were US$12.7 million, up 8.6% from US$11.7 million for the same period in 2006. Net earnings increased 4.9% to US$6.6 million for the quarter ended June 30, 2007, compared to US$6.3 million for the same period last year. Fully diluted earnings per share for the second quarter of 2007 were up 5.3% to US$0.20 per share compared to US$0.19 per share for the same period of 2006.
For the six-month period ended June 30, 2007, revenues were US$171.1 million up 13.8% from US$150.3 million for the corresponding period in 2006. EBITDA for the first half of 2007 was US$27.6 million, an increase of 20.0% compared to the US$23.0 million for the same period last year. Net earnings increased 15.4% to US$15.2 million generating a fully diluted earnings per share of US$0.47, compared to US$13.2 million and US$0.41 earnings per share for the first half of 2006.
“Our financial results for the first six months of 2007 again demonstrate the success of our growth strategy that combines strong organic growth and strategic acquisitions in high-growth fragmented markets. Our EBITDA organic growth year to date of 9% shows that Atrium Innovations is growing faster than the markets that we are in. In addition, during the last quarter we were actively involved with the closing of the Mucos acquisition on July 12, 2007, our largest acquisition to-date. We have everything we need to pursue our organic and acquisition development plan with innovative products in market niches with aggressive growth and an experienced management team”, said Pierre Fitzgibbon, President and Chief Executive Officer of Atrium.
Cash flows from operations (before changes in non-cash working capital items) for the second quarter of 2007 were US$7.5 million and were US$7.6 million for the same period last year. On July 4, 2007, the Company modified its existing US$117 million revolving credit facility increasing the authorized amount to US$350 million with the flexibility to increase it up to US$425 million under certain conditions. As of July 12, 2007, US$264.3 million was drawn under the facility.
“Our cash flow generating capacity of over US$7 million for the second quarter along with our amended credit facility, will allow the Company to continue its acquisition strategy in each of our Divisions,” added John Dempsey, Vice President, Finance and Chief Financial Officer.
Health & Nutrition Division
Revenues from the Health & Nutrition Division were US$28.2 million for the second quarter ended June 30, 2007, representing a decrease of 5.1% over revenues of US$29.7 million for the same period last year. This reduction can be explained by the exceptional performance in the first quarter. For the third quarter of 2007, we expect growth over the same period in 2006. EBITDA was US$8.4 million for the second quarter of 2007 representing an increase of 9.1% over the same period in 2006 where the EBITDA was US$7.7 million. Most of this increase came from the acquisition of AquaCap in January 2007 and synergies related to the acquisition.
“Our performance over the six-month period is very satisfactory, with revenues and EBIDTA increases of 11.3% and 23.4% respectively. Based on our six-month period results, we are confident to fulfill our annual organic growth objectives taking into account all the projects in process. During the last half of 2007, the team efforts will be concentrated on delivering these projects and integrating Mucos in order to materialize the commercial synergies that we have identified”, said Richard Bordeleau, President of the Health & Nutrition Division.
Active Ingredients & Specialty Chemicals Division
Revenues from the Active Ingredients & Specialty Chemicals Division were US$48.3 million for the second quarter ended June 30, 2007, representing an increase of 8.2% over revenues of US$44.6 million for the same period in 2006. EBITDA was US$4.3 million for the second quarter of 2007, representing an increase of 7.6% over 2006 EBITDA of US$4.0 million. This increase is attributable to organic growth, to the development of new markets and to the acquisition of Amisol in May 2006.
“The excellent results of the first half of 2007 demonstrate that we are pursuing a constant growth in all of our designated markets. Our growth rate, superior to our competitors, allows us to increase our market share and helps us to improve our global competitive position” added 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-bio.com.
Conference Call and Webcast
Atrium will hold its quarterly conference call and webcast to discuss its Second Quarter of 2007 on Thursday August 9, 2007 at 10:00 a.m. Eastern time. Participants may access the call by using the following numbers: 416-644-3432, 514-807-8791 or 1-800-814-4861. 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.
Attachment: Financial summary Atrium Innovations Inc. Summary of Consolidated Financial Statements (in millions of US dollars except per share amounts) Consolidated Results for the 3-month ended June 30 (unaudited) 2007 2006 Change Revenues 76.4 74.3 2.9% Gross Margin(1) 26.1 23.1 13.1% 34.1% 31.0% EBITDA(2) 12.7 11.7 8.6% 16.6% 15.7% Net Earnings 6.6 6.3 4.9% Net earnings per share Basic 0.22 0.21 Diluted 0.20 0.19 Cash flow from operating activities before changes in non-cash operating working capital items 7.5 7.6 -1.2% Consolidated Results for the 6-month periods ended June 30 (unaudited) 2007 2006 Change Revenues 171.1 150.3 13.8% Gross Margin(1) 54.5 44.5 22.4% 31.8% 29.6% EBITDA(2) 27.6 23.0 20.0% 16.2% 15.3% Net Earnings 15.2 13.2 15.4% Net earnings per share Basic 0.50 0.44 Diluted 0.47 0.41 Cash flow from operating activities before changes in non-cash operating working capital items 17.2 15.6 10.1% Consolidated Results for the 3-month periods ended June 30 (unaudited) 2007 2006 Change Health & Nutrition ------------------ Revenues 28.2 29.7 -5.1% EBITDA(2) 8.4 7.7 9.1% 29.8% 25.9% Active Ingredients & Speciality Chemicals ----------------------------------------- Revenues 48.3 44.6 8.2% EBITDA(2) 4.3 4.0 7.6% 8.9% 8.9% Consolidated Results for the 6-month periods ended June 30 (unaudited) 2007 2006 Change Health & Nutrition ------------------ Revenues 64.1 57.6 11.3% EBITDA(2) 18.4 14.9 23.4% 28.8% 26.0% Active Ingredients & Speciality Chemicals ----------------------------------------- Revenues 107.0 92.7 15.4% EBITDA(2) 9.2 8.1 13.8% 8.6% 8.7% Consolidated Balance Sheet (unaudited) As at As at June 30, Dec. 31, 2006 2006 Cash and Cash Equivalents and Short-term Investments 29.0 22.3 Current assets 117.4 120.5 Goodwill 134.2 116.2 Intangible assets 75.7 73.7 Total assets 343.7 323.3 Total debt 101.3 92.2 Shareholders’ equity 180.4 159.0 (1) Gross margin means sales less cost of goods sold; cost of goods sold does not include depreciation of production equipment. (2) EBITDA means earnings before interest, income taxes, depreciation and amortization.
ATRIUM INNOVATIONS INC.
CONTACT: Investor Relations: John Dempsey, Vice President, Finance andChief 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
