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Atrium Innovations Announces Second Quarter Financial Results of 2010

^{Published on 2010-08-12 13:15:39 - Market Wire}
 

 Second Quarter Highlights: (All amounts are in US dollars.) - Revenue and EBITDA growth of 17.3% and 9.6% - EBITDA of $20.3 million or 23.8% of revenues - Net earnings of $12.5 million up 11.4% - EPS diluted of $0.38, up from $0.34 last year 

 Attachments: Financial summary Balance sheet, results and cash flow statement Atrium Innovations Inc. Financial Summary (unaudited) (in millions of US dollars except per share amounts) Consolidated results for the quarters ended June 30, 2010 2009 Change -------- -------- -------- Revenues 85.2 72.6 17.3% -------- -------- Gross profit(1) 48.9 39.6 23.4% 57.3% 54.5% EBITDA(2) 20.3 18.5 9.6% 23.8% 25.5% Net earnings 12.5 11.2 11.4% Net earnings per share Basic 0.38 0.35 Diluted 0.38 0.34 11.8% Consolidated results for the six-month period ended June 30, 2010 2009 Change -------- -------- -------- Revenues 175.2 143.2 22.3% -------- -------- Gross profit(1) 100.4 78.1 28.6% 57.3% 54.5% EBITDA(2) 41.5 36.2 14.4% 23.7% 25.3% Net earnings 25.5 21.8 16.9% Net earnings per share Basic 0.78 0.67 Diluted 0.77 0.66 16.7% (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 June 30, December 31, ------------ ------------ 2010 2009 $ $ Assets Current assets Cash and cash equivalents 10,996 17,167 Accounts receivable 43,703 45,100 Income taxes recoverable 3,244 4,904 Inventory 63,789 58,738 Prepaid expenses 3,312 2,045 Future income tax assets 669 741 ------------ ------------ 125,713 128,695 Property, plant and equipment 19,710 17,268 Deferred charges and others 3,136 3,050 Intangible assets 200,183 214,304 Goodwill 241,053 262,832 Future income tax assets 5,667 7,505 ------------ ------------ 595,462 633,654 ------------ ------------ ------------ ------------ Liabilities Current liabilities Accounts payable and accrued liabilities 32,639 43,160 Purchase price adjustment - 22,725 Income taxes 133 272 Deferred revenues 1,550 1,457 ------------ ------------ 34,322 67,614 Long-term debt 161,670 169,891 Future income tax liabilities 56,890 57,536 Deferred revenues 266 1,000 Derivative financial instruments 2,964 2,466 ------------ ------------ 256,112 298,507 ------------ ------------ Shareholders' Equity Share capital 92,356 92,300 Contributed surplus 2,429 2,292 Retained earnings 256,549 231,081 Accumulated other comprehensive income (11,984) 9,474 ------------ ------------ 339,350 335,147 ------------ ------------ 595,462 633,654 ------------ ------------ ------------ ------------ Atrium Innovations Inc. Consolidated Statements of Earnings (tabular amounts in thousands of US dollars, except share and per share data) (unaudited) Quarters Ended Six months ended June 30, June 30, ------------------ ------------------ 2010 2009 2010 2009 $ $ $ $ Revenues 85,183 72,630 175,236 143,233 Operating expenses Cost of sales 36,332 33,053 74,788 65,150 Selling and administrative expenses 28,669 21,195 59,027 41,961 Research and development costs 505 472 1,063 1,006 Depreciation and amortization Property, plant and equipment 488 217 797 450 Intangible assets 668 733 1,278 1,448 -------- -------- -------- -------- 66,662 55,670 136,953 110,015 -------- -------- -------- -------- Earnings from operations 18,521 16,960 38,283 33,218 -------- -------- -------- -------- Other revenues (expenses) Financial income 40 41 261 195 Financial expenses (1,683) (1,814) (3,357) (3,757) Foreign exchange gain (loss) 704 (255) 659 (425) -------- -------- -------- -------- (939) (2,028) (2,437) (3,987) -------- -------- -------- -------- Earnings before the following items 17,582 14,932 35,846 29,231 Income tax expense 5,105 3,734 10,378 7,451 -------- -------- -------- -------- Net earnings of the period 12,477 11,198 25,468 21,780 -------- -------- -------- -------- -------- -------- -------- -------- Net earnings per share Basic 0.38 0.35 0.78 0.67 -------- -------- -------- -------- -------- -------- -------- -------- Diluted 0.38 0.34 0.77 0.66 -------- -------- -------- -------- -------- -------- -------- -------- Weighted average number of shares outstanding (000's) Basic 32,667 32,436 32,667 32,436 -------- -------- -------- -------- -------- -------- -------- -------- Diluted 33,197 32,960 33,203 32,967 -------- -------- -------- -------- -------- -------- -------- -------- Atrium Innovations Inc. Consolidated Statements of Cash Flows (expressed in thousands of US dollars) (unaudited) Quarters Ended Six months ended June 30, June 30, -------- -------- -------- -------- 2010 2009 2010 2009 $ $ $ $ Cash flows from operating activities Net earnings of the period 12,477 11,198 25,468 21,780 Items not affecting cash and cash equivalents Depreciation and amortization 1,761 1,552 3,189 3,023 Deferred charges (247) 142 (70) 284 Deferred revenues (346) (300) (619) (582) Stock-based compensation costs 74 108 145 206 Future income taxes 123 (725) 201 (1,088) Change in non-cash operating working capital items (4,617) 5,461 (19,480) (2,540) -------- -------- -------- -------- Cash flows from operating activities 9,225 17,436 8,834 21,083 -------- -------- -------- -------- Cash flows from financing activities Increase in long-term debt 1,434 755 25,947 53,581 Payments on long-term debt (8,188) (24,410) (9,558) (77,727) Deferred financing costs (36) (153) (69) (163) Issuance of shares - - 48 - -------- -------- -------- -------- Cash flows from financing activities (6,790) (23,808) 16,368 (24,309) -------- -------- -------- -------- Cash flows from investing activities Business acquisitions, net of cash and cash equivalents acquired (341) 1,191 (28,268) (16,907) Purchase of property, plant and equipment (885) (1,036) (1,681) (1,795) Acquisition of intangible assets (94) (74) (251) (293) -------- -------- -------- -------- Cash flows from investing activities (1,320) 81 (30,200) (18,995) -------- -------- -------- -------- Net change of cash and cash equivalents 1,115 (6,291) (4,998) (22,221) Effect of exchange rate changes on cash and cash equivalents (641) 1,052 (1,173) 398 -------- -------- -------- -------- Decrease (increase) in cash and cash equivalents 474 (5,239) (6,171) (21,823) Cash and cash equivalents - Beginning of the period 10,522 21,420 17,167 38,004 -------- -------- -------- -------- Cash and cash equivalents - End of the period 10,996 16,181 10,996 16,181 -------- -------- -------- -------- -------- -------- -------- --------