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Atrium Innovations Announces First Quarter Financial Results of 2010

^{Published on 2010-05-10 16:50:11 - Market Wire}
 

 First Quarter Highlights: (All amounts are in US dollars) - Revenue and EBITDA growth of 27.5% and 19.5% - Double digit growth of the U.S. branded business - EBITDA of $21.2 million or 23.5% of revenues - Net earnings of $13.0 million up 22.8% - EPS of $0.39, up from $0.32 last year - Acquisition of Trophic Canada, a leading manufacturer and distributor of nutritional supplements in the Canadian health food store market 

 Attachments: Financial summary Balance sheet, results and cash flow statement Atrium Innovations Inc. Financial Summary (in millions of US dollars except per share amounts) Consolidated results for the quarters ended March 31, (unaudited) 2010 2009 Change --------- --------- --------- Revenues 90.1 70.6 27.5% --------- --------- Gross profit(1) 51.6 38.5 34.0% 57.3% 54.5% EBITDA(2) 21.2 17.7 19.5% 23.5% 25.1% Net earnings 13.0 10.6 22.8% Net earnings per share Basic 0.40 0.33 Diluted 0.39 0.32 (1) Gross profit means sales less cost of goods sold. (2) EBITDA means earnings before interest, income taxes, depreciation and amortization. Atrium Innovations Inc. Consolidated Balance Sheets (expressed in thousands of US dollars) (unaudited) As at As at March 31, December 31, --------------------------- 2010 2009 $ $ Assets Current assets Cash and cash equivalents 10,522 17,167 Accounts receivable 44,299 45,100 Income taxes recoverable 5,767 4,904 Inventory 62,980 58,738 Prepaid expenses 3,663 2,045 Future income tax assets 659 741 ------------- ------------- 127,890 128,695 Property, plant and equipment 20,867 17,268 Deferred charges and others 2,998 3,050 Intangible assets 211,105 214,304 Goodwill 253,220 262,832 Future income tax assets 6,687 7,505 ------------- ------------- 622,767 633,654 ------------- ------------- ------------- ------------- Liabilities Current liabilities Accounts payable and accrued liabilities 34,582 43,160 Purchase price adjustment - 22,725 Income taxes 109 272 Deferred revenues 1,589 1,457 ------------- ------------- 36,280 67,614 Long-term debt 185,212 169,891 Future income tax liabilities 56,286 57,536 Deferred revenues 657 1,000 Derivative financial instruments 3,315 2,466 ------------- ------------- 281,750 298,507 ------------- ------------- Shareholders' Equity Share capital 92,356 92,300 Contributed surplus 2,355 2,292 Retained earnings 244,072 231,081 Accumulated other comprehensive income 2,234 9,474 ------------- ------------- 341,017 335,147 ------------- ------------- 622,767 633,654 ------------- ------------- ------------- ------------- Atrium Innovations Inc. Consolidated Statements of Earnings (tabular amounts in thousands of US dollars, except share and per share data) (unaudited) Quarters Ended March 31, --------------------------- 2010 2009 $ $ Revenues 90,053 70,603 ------------- ------------- Operating expenses Cost of sales (including depreciation of $509,000; $523,000 in 2009) 38,456 32,097 Selling and administrative expenses 30,358 20,766 Research and development costs 558 534 Depreciation and amortization Property, plant and equipment 309 233 Intangible assets 610 715 ------------- ------------- 70,291 54,345 ------------- ------------- Earnings from operations 19,762 16,258 ------------- ------------- Other revenues (expenses) Financial income 221 154 Financial expenses (1,674) (1,943) Foreign exchange loss (45) (170) ------------- ------------- (1,498) (1,959) ------------- ------------- Earnings before the following items 18,264 14,299 Income tax expense 5,273 3,717 ------------- ------------- Net earnings of the period 12,991 10,582 ------------- ------------- ------------- ------------- Net earnings per share Basic 0.40 0.33 ------------- ------------- ------------- ------------- Diluted 0.39 0.32 ------------- ------------- ------------- ------------- Weighted average number of shares outstanding (000's) Basic 32,667 32,436 ------------- ------------- ------------- ------------- Diluted 33,209 32,974 ------------- ------------- ------------- ------------- Atrium Innovations Inc. Consolidated Statements of Cash Flows (expressed in thousands of US dollars) (unaudited) Quarters Ended March 31, --------------------------- 2010 2009 $ $ Cash flows from operating activities Net earnings of the period 12,991 10,582 Items not affecting cash and cash equivalents Depreciation and amortization 1,428 1,471 Deferred charges 177 142 Deferred revenues (273) (282) Stock-based compensation costs 71 98 Future income taxes 78 (363) Change in non-cash operating working capital items (14,863) (8,001) ------------- ------------- Cash flows from operating activities (391) 3,647 ------------- ------------- Cash flows from financing activities Increase in long-term debt 24,513 52,826 Payments on long-term debt (1,370) (53,317) Issuance of shares 48 - Deferred financing costs (33) (10) ------------- ------------- Cash flows from financing activities 23,158 (501) ------------- ------------- Cash flows from investing activities Business acquisitions, net of cash and cash equivalents acquired (27,927) (18,098) Purchase of property, plant and equipment (796) (759) Acquisition of intangible assets (157) (219) ------------- ------------- Cash flows from investing activities (28,880) (19,076) ------------- ------------- Net change of cash and cash equivalents (6,113) (15,930) Effect of exchange rate changes on cash and cash equivalents (532) (654) ------------- ------------- Decrease in cash and cash equivalents (6,645) (16,584) Cash and cash equivalents - Beginning of the period 17,167 38,004 ------------- ------------- Cash and cash equivalents - End of the period 10,522 21,420 ------------- ------------- ------------- -------------