BEVERLY, Mass. and TORONTO, April 22, 2020 (GLOBE NEWSWIRE) -- Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported audited financial results for the fourth quarter and year-ended December 31, 2019.

Financial Highlights

  • Sales increased 21% to $35.4 million for the year-ended December 31, 2019; up 34% to $10.8 million for the fourth quarter; Sales in constant currency increased 24% for the year; 36% for the quarter.
  • Gross profit increased 15% to $19.0 million for the year; up 34% to $6.1 million for the quarter.
  • Net income of $793 thousand for the year and $931 thousand for the quarter.
  • Adjusted EBITDA increased 15% year over year to $7.1 million for the year; up 28% to $2.2 million for the quarter.
  • Organic growth was 12% for the year; 15% in constant currency. Organic growth was 17% for the quarter, 18% in constant currency.
  • Cash flow from operations was $6.4 million for the year, up 48%, and total cash at December 31, 2019 was $12.8 million.

David Wolf, President and Chief Executive Officer of Hamilton Thorne Ltd., commented, “2019 was another significant year for Hamilton Thorne with record sales of $35.4 million and adjusted EBITDA of $7.1 million. We continued to invest in sales and support resources in the US and Germany and continued to enhance our operations in order to take better advantage of the cross-selling and marketing synergies between the North American and European-based businesses. We also completed a significant expansion of our product line, geographic coverage and scale when we acquired UK-based Planer Limited in August. As we move past the COVID-19 pandemic, we see a significant opportunity to grow revenues from the Planer product line by leveraging our established direct sales channels and expanding the business of other Hamilton Thorne brands through additional direct sales capabilities in the UK.”

Commenting on the quarter, Mr. Wolf added, “With sales of $10.8 million and adjusted EBITDA of approximately $2.2 million, this was a record quarter for Hamilton Thorne. We increased our EBITDA margin versus the rest of the year, while continuing to invest in R&D and sales and marketing resources. Sales were positively impacted by the addition of approximately $1.6 million of revenues from the newly acquired Planer business, significant growth in the Company’s laser and image analysis systems business, increased consumables sales, and continued growth of the sale of third-party equipment in the US. Gross profit for the quarter was up versus the balance of the year at approximately 56.5% due to product mix, and relatively flat compared to the prior year’s fourth quarter.”

 Financial Results

 Fourth Quarter and Year-Ended December 31
  Three MonthsYear
Statements of Operations:  2019 2018 2019 2018
 Sales  $10,841,099 $8,072,739 $35,358,409 $29,213,814
 Gross profit  6,121,965 4,574,834 19,030,022 16,503,720
 Operating expenses  5,160,706 3,842,854 15,805,307 12,908,134
 Net income  930,581 2,745,020 793,275 2,960,355
 EBITDA  2,233,064 1,750,245 7,096,012 6,187,254
 Basic earnings per share $0.01 $0.02 $0.01 $0.03
 Diluted earnings per share $0.01 $0.02 $0.01 $0.03
Statements of Financial Position as at:     Dec. 31, 2019 Dec. 31, 2018
 Cash     $12,795,983 $13,669,851
 Working capital     11,228,774 14,216,160
 Total assets     57,967,930 47,550,513
 Non-current liabilities     7,073,999 8,178,629
Shareholders' equity     38,743,381 33,156,090

All amounts are in US dollars, unless specified otherwise, and results, with the exception of Adjusted EBITDA, are expressed in accordance with the International Financial Reporting Standards ("IFRS").

Results of Operations for the year-ended December 31, 2019    

Hamilton Thorne sales increased 21% to $35,358,409 for the year-ended December 31, 2019, an increase of $6,144,595 from $29,213,814 during the previous year. Sales were up due to organic growth in operations owned by the Company for more than one year augmented by the added revenues from the Planer acquisition. Sales into the human clinical market grew substantially, primarily driven by strong increases in the sales of third-party equipment, our own clinical instruments, particularly in the second half of the year, our newly introduced LYKOS DTSTM laser system, and Gynemed-branded consumables, augmented by the contribution from the Planer acquisition. Sales into the animal breeding markets were up slightly for the year while sales into the research and cell biology markets were up substantially, largely driven by the contribution from the Planer acquisition as well as strong toxicology systems sales in the fourth quarter. 

Gross profit for the year increased 15% or $2,526,302 to $19,030,022 in the year-ended December 31, 2019, compared to $16,503,720 in the previous year, primarily as a function of sales growth. Gross profit as a percentage of sales was down at 53.8% for the year-ended December 31, 2019 versus 56.5% for 2018 primarily due to product mix, particularly the impact of additional direct sales of third-party products in the US, and the addition of somewhat lower margin sales of Planer products, partially offset by increases in direct sales of higher margin proprietary equipment, branded consumables, and quality control testing services sales.

Operating expenses increased 22% or $2,897,173 to $15,805,307 for the year-ended December 31, 2019, up from $12,908,134 for the previous year, primarily due to the addition of Planer expenses post-closing, increased acquisition expenses, and increased depreciation and amortization. Excluding acquisition-related expenses for both periods, operating expenses would have been up $2,272,174, or 18%. Operating expenses were also affected by continued strategic investments in research and development and sales and marketing resources. 

Net interest expense decreased $47,233 from $1,151,455 to $ 1,104,222 for the year-ended December 31, 2019 versus the prior year primarily due to reductions in the Company’s revolving line of credit, convertible debentures due to conversion, and other term loan borrowings, plus interest earned on the Company’s cash balances, partially offset by increased term debt in August to partially finance the Planer acquisition.

The change in fair value of derivative decreased $846,199 for the year-ended December 31, 2019, from a gain of $572,621 in 2018 to a non-cash loss of $273,578, primarily due to the weakening of the euro, partially offset by the increase of the Company’s share price between the measurement dates.

Net income decreased  to $793,275 for the year-ended December 31, 2019, versus $2,960,355  for the prior year, primarily attributable to increased revenues and profitability for the relevant periods offset by increased operating expenses, the $846,199  change in fair value of derivative, increased income taxes, increased acquisition expense, and continued strategic investments in research and development and sales and marketing resources.  

Adjusted EBITDA for the year-ended December 31, 2019 increased 15% to $7,096,012 versus $6,187,254 in the prior year, due to revenue and gross profit growth, partially offset by increased operating expenses in the periods. 

Results of Operations for the Fourth Quarter ended December 31, 2019

For the three months ended December 31, 2019, sales were up 34% from $8,072,739 to $10,841,097.  Gross profit was up 34% to $6,121,965 versus $4,574,835 for the prior year. Sales and gross profit were up due to organic growth in operations owned by the Company for more than one year augmented by the added revenues and gross profit from the Planer acquisition. Gross profit percentage decreased from 56.7% to 56.5% for the quarter, primarily due to product mix. Operating expenses were up 34% to $5,160,706 versus $3,842,854 for the prior year, primarily due to the addition of Planer operating expenses for the quarter.

In the fourth quarter of 2019, the Company’s net income decreased to $930,581 while Adjusted EBITDA increased 28% to $2,233,064 versus net income of $2,745,020 and Adjusted EBITDA of $1,750,245 for the prior year fourth quarter. These changes were due primarily, in the case of net income, to the $939,562 change in the fair value of derivative and increased income taxes, and in the case of Adjusted EBITDA to increased sales and gross profits partially offset by increased operating expenses. 

See the Company’s published Management Discussion and Analysis for a reconciliation of Adjusted EBITDA to Net Income for the year and the quarter. 


The recent outbreak of the coronavirus, or COVID-19, has added substantial uncertainty to the short- and mid-term outlook as the countries where the Company has significant operations have required entities to limit or suspend business operations and have implemented travel restrictions and quarantine measures. The Company’s operations are deemed to be part of the essential medical infrastructure in most places where it has personnel and it has implemented business continuity plans, including work from home programs, to maintain operations.

While it is not possible at this time to estimate the impact that COVID-19 could have on the Company, the continued spread of COVID-19 and the measures taken by the governments of countries affected has and is expected to continue to affect the demand for certain of the Company’s products and services and could disrupt the supply chain and the manufacture or shipment of product inventories and adversely impact the Company’s business, financial condition or results of operations. The COVID-19 outbreak and mitigation measures may also have an adverse impact on global economic conditions which could have an adverse effect on the Company’s business and financial condition. The extent to which the COVID-19 outbreak impacts the Company’s results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the virus and the actions to contain its impact.

Mr. Wolf commented, “The first quarter of 2020 started off very strong. Our preliminary estimated results for Q1 are approximately $10.2 million in sales, which represents over 30% year over year growth and approximately 10% organic growth (approximately 12% constant currency). We did, however, see reduced demand for some of our products and services in certain territories as the quarter developed, as many IVF clinics reduced their activities. This reduction has continued in the second quarter, but we have  also seen demand for our products return in some territories, notably China, which had been severely impacted in Q1. These fluctuations in demand for many of our products and services will last for a period of time that is difficult to determine, and will have an adverse effect on financial results in the second quarter, which could extend for one or more subsequent quarters. To improve our financial results, we have taken actions to reduce many non-essential expenses, reduce some personnel costs, and defer certain capital expenditures and new hiring.”

Mr. Wolf continued, “The Company has generated cash from operations since 2013 and, in normal circumstances, expected to generate cash from operations in 2020. Given the uncertainties surrounding the COVID-19 outbreak, it is impossible to predict whether the Company will generate cash from operations in 2020. Regardless, the Company currently maintains a strong balance sheet, with cash on hand of approximately $15.1 million, and net bank debt of approximately $10.1 million following the Company’s Q1 drawdown under its line of credit, and believes that its current cash position should be sufficient to support operations for the next twelve months. We continue to work on our acquisition program with a goal of completing one or more meaningful acquisitions every twelve to eighteen months; however, the effects of the COVID-19 outbreak could affect this goal.”

Mr. Wolf added, “The COVID-19 virus will eventually run its course, and, we remain optimistic that once this happens, the strong macroeconomic and demographic tailwinds that have driven the growth of our business over the past few years will continue for the foreseeable future.”

Conference Call

The Company will hold a conference call on Wednesday, April 22, 2020 at 11:00 a.m. EDT to review highlights of results. All interested parties are welcome to join the conference call by dialing toll free 1-855-223-7309 in North America, or 647-788-4929 from other locations, and requesting Conference ID 7281879. The Company’s updated investor presentation and a recording of the call will be available on Hamilton Thorne’s website shortly after the call.

Financial Statements and accompanying Management Discussion and Analysis for the periods are available on and the Hamilton Thorne website.

About Hamilton Thorne Ltd. (

Hamilton Thorne is a leading global provider of precision instruments, consumables, software and services that reduce cost, increase productivity, improve results and enable breakthroughs in Assisted Reproductive Technologies (ART), research, and cell biology markets. Hamilton Thorne markets its products and services under the Hamilton Thorne, Gynemed, Planer, and Embryotech Laboratories brands, through its growing sales force and distributors worldwide. Hamilton Thorne’s customer base consists of fertility clinics, university research centers, animal breeding facilities, pharmaceutical companies, biotechnology companies, and other commercial and academic research establishments.

Neither the TSX 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.

The Company has included earnings before interest, income taxes, depreciation, amortization, share-based compensation expense, changes in fair value of derivatives and identified acquisition costs related to completed transactions (“Adjusted EBITDA”) as a non-IFRS measure, which is used by management as a measure of financial performance. See section entitled “Use of Non-IFRS Measures” and “Results of Operations” in the Company’s Management Discussion and Analysis for the periods covered for further information and a reconciliation of Adjusted EBITDA to Net Income.

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

For more information, please contact:

David Wolf, President & CEO                                   
Hamilton Thorne Ltd.                                               

Glen Akselrod
Bristol Investor Relations

Michael Bruns, CFO
Hamilton Thorne Ltd.