All amounts are in U.S. dollars
QUEBEC CITY, Feb. 27 /CNW Telbec/ - Atrium Biotechnologies Inc. (TSX: ATB) today announced that it had revenues of US$306.1 million for the year ended December 31, 2006, up 52% from US$200.9 million for the corresponding previous fiscal year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal 2006 were US$44.7 million, up 77% from US$25.2 million for the same period in 2005. Net earnings increased 86% to US$26.7 million for the year ended December 31, 2006, compared to US$14.3 million for the same preceding period. Fully diluted earnings per share for fiscal 2006 were up 71% to US$0.82 per share compared to US$0.48 per share for fiscal 2005.
"Our 2006 financial results clearly demonstrate the success of our growth strategy combining strong organic growth and strategic acquisitions in high-growth fragmented markets. The double digit organic growth delivered in both divisions shows that our business is growing faster than the markets that we are in and in addition we went through the integration process of newly acquired companies. In addition to the integration of Douglas Laboratories acquired in December 2005, we successfully integrated in 2006 two new acquisitions. First, Amisol allowed us to reinforce the Active Ingredients & Speciality Chemical Division in North America and second, Douglas Laboratories Canada increased our leadership position in the nutritional supplements market for healthcare professionals in North America", said Luc Dupont, President and Chief Executive Officer of Atrium.
Cash flows from operations (before changes in non-cash working capital items) for the year 2006 were US$30.7 million, up 62% from US$18.9 million for the same period in 2005. The Company has a revolving credit facility with an authorized amount of US$107 million and has the flexibility to increase it up to US$172 million. As of December 31, 2006, US$81 million was drawn down under the existing facility.
"Our cash flow generating capacity of over US$30 million along with our existing 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$114.7 million for the year ended December 31, 2006, representing an increase of 249.1% over revenues of US$32.9 million for the same preceding period. EBITDA was US$29.2 million for the year ended December 31, 2006 representing an increase of 144.0% over the same period in 2005 where the EBITDA was US$11.9 million. Most of this increase came from the acquisition of Douglas Laboratories in December 2005 and strong organic growth of our major brands.
"A team effort led to the successful integration of Douglas Laboratories, the acquisition of Douglas Laboratories Canada and the introduction of new products to generate the outstanding 2006 financial results observed for the Health & Nutrition Division. The acquisition of AquaCap this past January permitted us to further increase our leadership position in the United States and North America. It also enhances our capacity to develop innovative products in the future. These acquisitions not only allowed Atrium to grow its portfolio of products to over 1,300 high quality products and to achieve leadership position in the healthcare professional market but also allowed to build a strong team with seasoned management. We are definitely well positioned to grow our market share and penetrate new markets through organic growth and acquisitions," said Richard Bordeleau, President - Health & Nutrition Division.
Active Ingredients & Specialty Chemicals Division
Revenues from the Active Ingredients & Specialty Chemicals Division were US$191.4 million for the year ended December 31, 2006, representing an increase of 13.9% over revenues of US$168.0 million for the same period in 2005. EBITDA was US$15.6 million for the year ended December 31, 2006, representing an increase of 17.5% over 2005 EBITDA of US$13.3 million. This increase is attributable to strong organic growth and to the acquisition of Amisol in May 2006.
"The excellent results obtained clearly demonstrate the soundness of our strategy and of our execution plan. In 2006, Unipex implemented with great success the strategic plan developed with the team in Europe and the integration of Amisol with MultiChem was successfully completed in Canada. We are now ready to proceed with more acquisitions and are now in a great position both in Europe and North America to continue unrolling our strategy to focus on high value businesses to generate growth and to become a global player in our industry segment," added Charles Boulanger, President - Active Ingredients & Specialty Chemicals.
2006 Fourth Quarter Financial Results
For the three-month period ended December 31, 2006, revenues were US$82.5 million compared to US$58.4 million in 2005, representing a 41.4% increase. EBITDA increased 83.8% to US$10.7 million, compared to US$5.8 million for the same period in 2005. Net earnings for the fourth quarter 2006 increased 75.9% to US$7.0 million or US$0.23 per share, compared to US$4.0 million or US$0.14 per share for the same period in 2005. The weighted average number of shares outstanding was 30.6 million during the fourth quarter of 2006 compared to 29.4 million during the same preceding quarter.
Atrium Biotechnologies 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 560 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 Fourth Quarter and Full Year 2006 on Tuesday February 27, 2007 at 10:00 a.m. Eastern time. Participants may access the call by using the following numbers: 416-644-3414, 514-807-8791 or 1-800-732-9307. A live webcast is also available via the Company's website at www.atrium-bio.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 Biotechnologies Inc. Summary of Consolidated Financial Statements (in millions of US dollars except per share amounts) Consolidated Results for the year ended December 31 (unaudited) 2006 2005 Change Revenues 306.1 200.9 52.4% Gross Margin (1) 89.6 52.9 69.3% 29.3% 26.3% EBITDA (2) 44.7 25.2 77.4% 14.6% 12.6% Net Earnings 26.7 14.3 86.3% Net earnings per share Basic 0.88 0.51 Diluted 0.82 0.48 Cash flow from operating activities 30.7 18.9 62.2% before changes in non-cash operating working capital items Consolidated Results for the 3-month periods ended December 31 (unaudited) 2006 2005 Change Revenues 82.5 58.4 41.4% Gross Margin (1) 23.5 14.2 65.4% 28.4% 24.3% EBITDA (2) 10.7 5.8 83.8% 13.0% 10.0% Net Earnings 7.0 4.0 75.9% Net earnings per share Basic 0.23 0.14 Diluted 0.22 0.13 Cash flow from operating activities before 7.3 4.8 51.0% changes in non-cash operating working capital items Atrium Biotechnologies Inc. Summary of Consolidated Financial Statements (in millions of US dollars except per share amounts) Consolidated Results for the year ended December 31 (unaudited) 2006 2005 Change Health & Nutrition ------------------ Revenues 114.7 32.9 249.1% EBITDA (2) 29.2 11.9 144.0% 25.4% 36.4% Active Ingredients & Speciality Chemicals ----------------------------------------- Revenues 191.4 168.0 13.9% EBITDA (2) 15.6 13.3 17.5% 8.1% 7.9% Consolidated Results for the 3-month periods ended December 31 (unaudited) 2006 2005 Change Health & Nutrition ------------------ Revenues 28.9 11.0 163.0% EBITDA (2) 6.9 3.2 116.9% 24.0% 29.0% Active Ingredients & Speciality Chemicals ----------------------------------------- Revenues 53.7 47.4 13.3% EBITDA (2) 3.8 2.6 44.0% 7.1% 5.6% Consolidated Balance Sheet (unaudited) As at Dec. 31, As at Dec. 31, 2006 2005 Cash and Cash Equivalents and Short-term Investments 22.3 17.8 Current assets 120.5 109.3 Goodwill 116.2 109.0 Intangible assets and deferred charges 74.7 69.7 Total assets 323.3 298.2 Total debt 92.2 105.9 Shareholders' equity 159.0 124.4 (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.