Increase of 98% in net earnings from continuing operations during the first
quarter of 2008 to reach 10.5 million US dollars
All amounts in US dollars
QUEBEC CITY, May 6 /PRNewswire-FirstCall/ - Atrium Innovations Inc. (TSX: ATB), a recognized leading developer, manufacturer and marketer of added value products for health and nutrition industries, announced today his financial results for the first quarter of 2008.
During the quarter ended March 31, 2008, Atrium recorded revenues from continuing operations of $65.8 million, which represents an increase of 83.2% compared to revenues of $35.9 million for the corresponding quarter in 2007. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from continuing operations for the first quarter of 2008 increased by 90.8% to $18.4 million when compared to US$9.6 million for the same period in 2007. For the quarter ended March 31, 2008, net earnings from continuing operations rose by 97.8% to US$10.5 million when compared to $5.3 million for the same period in 2007. The Company's total net earnings were US$14.7 million, an increase of 70.8% when compared to net earnings of $8.6 million for the corresponding period in 2007. Net earnings per share on a diluted basis for the first quarter of 2008 rose by 69.2% to $0.44 per share, compared to $0.26 per share for the same period in 2007.
"We are very satisfied with the strong financial results for the first quarter as the Mucos integration is going according to plan and as we experienced solid organic growth in the quarter. We have begun the integration of Multicare B.V., which was acquired on February 15. This acquisition respects perfectly our strategic acquisition program. Furthermore we remain confident that we will finalize the sale of the Active Ingredients and Specialty Chemicals Division ("AI&SC") in the upcoming weeks as announced on April 4, allowing us to focus on our Health and Nutrition Division, and generating value for our shareholders" said Mr. Pierre Fitzgibbon, Atrium's President and Chief Executive Officer.
"The sale of the division at an attractive price will give us the means to execute our strategy to become the leader in the high end nutritional supplements"said Mr. Pierre Laurin, Chairman of Atrium.
Cash flows from continuing operations (before changes in non-cash working capital items) for the first quarter of 2008 were $11.7 million, an increase of 87.3% compared to $6.2 million for the same period of the preceding year. As at March 31, 2008, the Company had a total debt amounting to $325 million while the Company had a revolving credit facility that provides $350 million of borrowing capacity with the possibility to increase it up to $425 million. In addition, the Company has additional capacity, through an unsecured loan, of $35.6 million which can be used in whole or in part from now until May 21, 2008.
Discontinued Operations - Active Ingredients and Specialty Chemicals (AI
& SC) Division
For the quarter ended March 31, 2008, the Active Ingredients & Specialty Chemicals Division, presented as discontinued operations, generated revenues of $68.0 million, which is an increase of 15.6% compared to revenues of $58.8 million recorded for the same period in 2007. For the first quarter of 2008, the EBITDA was $6.5 million compared to an EBITDA of $5.3 million for the corresponding period in 2007, an increase of 21.2 %.
Atrium Innovations Inc. is a recognized leading developer, manufacturer and marketer of added value products for health 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 35 countries, primarily in North America and Europe. Atrium has over 600 employees and operates five manufacturing facilities. Additional information about Atrium is available on its Web site at http://www.atrium-innov.com.
Conference Call and Webcast
Atrium will hold its quarterly conference call and webcast to discuss its first quarter 2008 on Tuesday May 6, 2008 at 2:00 p.m. Eastern time. Participants may access the call by using the following numbers: 416-644-3416, 514-807-8791 or 1-800-731-5319. A live webcast is also available via the Company's website at http://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 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.
Attachment: Financial summary
Atrium Innovations Inc.
Summary of Interim Consolidated Financial Statements
(in millions of US dollars except per share amounts)
Consolidated Results for the quarters ended March 31
2008 2007 Change
Revenues 65.8 35.9 83.2%
Gross Margin (1) 35.6 17.1 107.5%
EBITDA (2) 18.4 9.6 90.8%
Net Earnings from continuing operations 10.5 5.3 97.8%
Net Earnings form discontinued operations 4.2 3.3 27.3%
Net earnings 14.7 8.6 70.8%
Net earnings per share
Basic 0.46 0.28
Diluted 0.44 0.26
Cash flow from continuing operating
activities before changes in non-cash
operating working capital items 11.7 6.2 87.3%
Consolidated Balance Sheet
(unaudited) As at As at
March 31, Dec. 31,
Cash and Cash Equivalents 34.7 27.4
Other current assets 187.4 162.2
Goodwill 198.5 168.8
Intangible assets and deferred charges 195.9 177.9
Other long term assets 94.3 88.9
Total assets 710.8 625.2
Short-term liabilities 84.1 79.7
Long-term debt 325.4 279.0
Other long-term liabilities 62.9 55.6
Shareholders' equity 238.4 210.9
Total liabilities and shareholder's equity 710.8 625.2
(1) Gross margin means sales less cost of goods sold.
(2) EBITDA means earnings before interest, income taxes, depreciation and
amortization. Continuing operations, H&N division, supports now 100%
of the Head Office fees which is comparable to 2007.
|SOURCE Atrium Innovations Inc.|
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