BEVERLY, MA and TORONTO--(Marketwire - April 21, 2011) -
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"2010 was a pivotal year for the Company. We reported double digit growth for the last three quarters of the year, expanded into new and lucrative research markets with the introduction of new products, and strengthened our infrastructure and management team," said Meg Spencer, Chief Executive Officer of Hamilton Thorne Ltd. "Our sales for the year were very strong in our traditional markets and, with the introduction of the new Staccato™ and Stiletto™ laser systems, we are well positioned to expand our presence in larger research markets such as cancer research and advanced cell biology, as well as capitalize on the ground-breaking clinical advances that were achieved in 2010 in the fields of stem cell research and regenerative medicine."
2010 Highlights
-- In November, Hamilton Thorne installed its ground-breaking
Stiletto™ laser system into leading beta site labs.
Stiletto™ has broad application for research with a variety
of cells, enabling the Company to enter new and exciting research
markets, including developmental and advanced cell biology. This
novel technology automates the manual and tedious process of
separating and removing unwanted cells and reduces time spent
from hours of work down to minutes, dramatically saving both time
and money, and revolutionizing how researchers approach cell selection
and therapeutic research applications.
-- The Company also launched the new Staccato™ laser at the 8th
Annual Meeting of the International Society of Stem Cell Research
(ISSCR) in June. The Staccato™ adds to the functionality of the
XYClone® laser system, providing the ability of near-continuous
application of the laser to the sample through rapid pulsing of the
beam. The rapid-firing laser accelerates the preparation required during
stem cell development and allows fast and precise excision of the inner
cell mass from blastocyst stage embryos, eliminating the need for
immunosurgery using animal-based products. This ability to automate the
destruction of unwanted cells without damage to the desirable cells is a
key function in advanced cell research, developmental biology and cancer
research.
-- Hamilton Thorne announced a vendor partnership agreement with Leica
Microsystems, a leading global designer and producer of innovative
high-tech precision optics systems for the analysis of microstructures.
The vendor partnership enables Hamilton Thorne to draw on Leica
Microsystems' specialized technical sales group and provides for both
companies the opportunity to work collaboratively to develop sales
strategy and exchange leads to increase market penetration.
-- In 2010, Hamilton Thorne's products were referenced in over 80 new
peer-reviewed scientific articles by customers at world-leading
research labs and academic institutions. Hamilton Thorne's traditional
fertility products and advanced laser systems were published in
several prestigious scientific journals such as Nature Protocols,
Journal of Assisted Reproduction and Genetics, and BMC Evolutionary
Biology.
-- The company expanded its management team with the addition of Michael
Bruns as Chief Financial Officer and Lisa Rivero as Director of
Corporate Communications.
-- Hamilton Thorne closed on a convertible subordinated debenture offering
of $1.25 million to provide the Company with additional capital to
accelerate the development of research and development, potential
product line acquisitions and in-licensing, and for general working
capital purposes.
-- The Company extended the maturity of its $5 million line of credit with
Commerce Bank and Trust Company through October 1, 2012. The line of
credit extension strengthens the Company's balance sheet and working
capital by continuing to categorize the debt as long-term, and provides
additional time for the Company to execute its growth strategy and
refinance the debt on advantageous terms.
Financial Results
All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (GAAP).
Full Year 2010
The Company's total sales increased 29.3% to $6,200,000 for the year ended December 31, 2010, an increase of $1,405,000 from $4,795,000 during the previous year. This increase of $1,405,000 was attributable to increased demand for our existing products and improved budget availability for capital equipment purchases across all customer types and geographic regions.
Gross profit for the year increased 27.3% to $3,851,000 in 2010, compared to $3,025,000 in the previous year. The gross profit as a percentage of sales declined slightly to 62.1% from 63.1% for 2009 due primarily to increased material costs and aggressive pricing pressures.
Operating expenses were $5,353,000 for the year ended December 31, 2010 up from $4,334,000 during the previous year, an increase of $1,019,000 or 23.5%. This increase in expenses represents continued strategic investment in the growth of the Company. Research and development expenses increased 16.8% to $985,000 due to continued development of new products. Sales and marketing expenses increased 22.4% to $2,372,000 due to the expansion of our sales force, commission expense on higher sales volume, and increased variable costs of selling. General and administrative (G&A) expenses increased 28.6% to $1,995,000 due primarily to increases in public company expenses such as investor relations, professional fees and director fees. G&A also increased due to increased investments in staffing, and the favorable settlement of an employment labor claim.
Net interest expense decreased to $341,000 for 2010 from $367,000 for 2009. The decrease was due to the elimination of interest accreted on the preferred stock redeemed in the 2009 merger, offset by the initial interest expense, both coupon and accreted on the convertible debentures issued in August 2010.
The net loss for the year was $1,843,000, an increase of 10.0% over the net loss of $1,675,000 for the same period of the previous year. The increased loss was due primarily to the additional investments by the Company in research, product development, sales and marketing, plus additional general and administrative expenses, partially offset by increased gross profit resulting from increased sales.
Fourth Quarter 2010
The Company's total sales increased 41.8% to $1,698,000 during the quarter ended December 31, 2010, which was up $501,000 from $1,197,000 during the previous quarter. This was a result of the Company continuing to grow its sales in all regional markets.
Gross profit increased 46.4% to $1,089,000, and gross profit as a percentage of sales improved to 64.1% from 62.1% over the previous year.
The net loss for the fourth quarter was $630,000, an increase of 9.0% over the net loss of $578,000 for the same period of the previous year. The increased loss was due primarily to the additional investments by the Company in research, product development, sales and marketing, as well as additional general and administrative expenses, partially offset by increased gross profit resulting from increased sales.
As of December 31, 2010, the Company had outstanding 24,415,157 common shares, 6,045,006 warrants, 4,272,022 options, and 440,001 agent compensation options outstanding.
The financial statements are available on www.sedar.com.
Other News
The Company has made changes to its executive management team and board with the departure of Michelle Lyles, VP of Sales, effective April 22, 2011, and the previously announced departure of Scott Pearson and the addition of Dr. David Sable to its Board of Directors.
About Hamilton Thorne Ltd. (www.hamiltonthorne.com)
Hamilton Thorne is a leading provider of advanced laser systems for the regenerative medicine, stem cell research and fertility markets. Hamilton Thorne's lead products, the ZILOS-tk™ and XYClone® laser systems, attach to standard inverted microscopes and operate as robotic micro-surgeons, significantly reducing time and increasing efficiency in key in-vitro fertilization, stem cell, and regenerative medical research applications. The new Staccato™ and Stiletto™ laser systems are designed to broaden the Company's markets and offer significant advantages to developmental biology, cancer research and advanced cell biology researchers.
Hamilton Thorne's growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard University, MIT, Yale, McGill University, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, and Cambridge.
Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.
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.
Financials results included below:
Hamilton Thorne Ltd.
Consolidated Balance Sheets
As at December 31, 2010 and 2009
(Expressed in U.S. Dollars)
2010 2009
----------- -----------
Assets
Current
Cash and cash equivalents 714,498 1,356,371
Accounts receivable 971,406 499,875
Inventories 544,170 512,300
Prepaid expenses and other current assets 58,241 72,689
Note receivable, officer - 23,813
----------- -----------
2,288,315 2,465,048
Property and equipment 134,662 90,481
Deposits 111,968 72,454
----------- -----------
Total assets 2,534,945 2,627,983
----------- -----------
Liabilities
Current
Accounts payable and accrued liabilities 1,412,831 1,171,562
Notes payable 104,460 83,037
Capital lease obligations, current 20,250 5,753
Deferred revenue 91,086 35,881
----------- -----------
Total current liabilities 1,628,627 1,296,233
Capital lease obligations, non-current 37,295 7,904
Deferred revenue, long-term 79,486 -
Long-term debt 6,121,015 5,050,000
----------- -----------
Total liabilities 7,866,423 6,354,137
----------- -----------
Shareholders' Equity (Deficiency)
Common shares 24,345,752 24,341,938
Warrants 349,019 344,949
Contributed surplus 429,822 199,767
Accumulated deficit (30,456,071) (28,612,808)
----------- -----------
Total Shareholders' equity (deficiency) (5,331,478) (3,726,154)
----------- -----------
Total Liabilities and shareholders' equity
(deficiency) 2,534,945 2,627,983
----------- -----------
Hamilton Thorne Ltd.
Consolidated Statements of Operations and Comprehensive Loss
For the years ended December 31, 2010 and 2009
(Expressed in U.S. Dollars)
2010 2009
----------- -----------
Sales 6,200,430 4,794,693
Cost of sales 2,349,707 1,769,658
----------- -----------
Gross profit 3,850,723 3,025,035
----------- -----------
Expenses
Research and development 985,438 843,948
Sales and marketing 2,372,326 1,938,541
General and administrative 1,995,010 1,551,157
----------- -----------
Total expenses 5,352,774 4,333,646
----------- -----------
Loss from operations (1,502,051) (1,308,611)
Other income (expense)
Interest expense including accretion (341,422) (367,191)
Interest income 210 867
----------- -----------
Net loss and comprehensive loss for the year (1,843,263) (1,674,935)
----------- -----------
Loss per share:
Basic $ (0.08) $ (0.10)
Diluted $ (0.08) $ (0.10)
Weighted average number of common shares
outstanding:
Basic 24,415,157 17,504,453
Diluted 24,415,157 17,504,453
Hamilton Thorne Ltd.
Consolidated Statements of Cash Flows
For the years ended December 31, 2010 and 2009
(Expressed in U.S. Dollars)
2010 2009
----------- -----------
Cash flows from operating activities:
Net loss for the year (1,843,263) (1,674,935)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 61,702 113,136
Non-cash interest expense/accretion 107,686 124,936
Share-based compensation expense 167,500 160,811
Changes in non-cash operating assets and
liabilities:
Accounts receivable (471,531) 458,364
Inventories (31,870) 120,912
Prepaid expenses and other current assets 38,261 (28,378)
Deposits (39,514) (2,878)
Accounts payable and accrued liabilities 191,380 68,356
Deferred revenue 134,691 13,499
----------- -----------
Net cash flows used in operating activities (1,684,958) (646,177)
----------- -----------
Cash flows from investing activities:
Purchase of capital assets (55,004) (59,305)
----------- -----------
Cash flows from financing activities:
Proceeds from debt 2,153,944 1,167,195
Payments on debt (2,189,511) (617,183)
Proceeds from issuance of subordinated
convertible notes payable 1,129,842 -
Costs of private placement refunded 3,814
Deferred financing costs - 34,913
Proceeds from exercise of warrants - 87
Issuance of common share units - net of
expenses - 1,174,810
Net cash acquired in RTO - 794,832
Reverse takeover costs incurred - (497,830)
----------- -----------
Net cash flows provided by financing activities 1,098,089 2,056,824
----------- -----------
Net Increase (decrease) in cash and cash
equivalents (641,873) 1,351,342
Cash and cash equivalents, beginning of year 1,356,371 5,029
----------- -----------
Cash and cash equivalents, end of year 714,498 1,356,371
----------- -----------
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest 213,804 192,714
Supplemental disclosure of non-cash financing
activities:
Equipment acquired under capital lease 50,879 0
Conversion of debt to equity 0 475,000
----------- -----------
For more information, please contact:
David Wolf
President
Hamilton Thorne Ltd.
978-921-2050
Email Contact
Lisa Rivero
Director of Corporate Communications
Hamilton Thorne Ltd.
978-921-2050
Email Contact
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