Atrium Innovations reports 23.5% revenue growth in Q2

Atrium Innovations reports 23.5% revenue growth in Q2

Atrium Innovations Inc. released its 2011 second quarter results for the period ended June 30, 2011. For the quarter ended June 30, 2011, Atrium recorded revenues of $105.2 million representing an increase of 23.5% compared to revenues of $85.2 million in 2010.


Atrium Innovations Inc. (TSX: ATB), a globally recognized leader in the development, manufacturing, and commercialization of innovative, science-based dietary supplements endorsed by health professionals, released its 2011 second quarter results for the period ended June 30, 2011.

Second Quarter Highlights: 
(All amounts are in US dollars.)

Revenue growth of 23.5% over previous year to reach $105.2 million

Strong contribution of Seroyal acquisition with integration substantially completed

Branded organic growth reached 6.0%

EBITDA of $23.8 million or 22.6% of revenues, an increase of 17.2% compared to last year

Diluted EPS of $0.44 for the quarter

Cash flow before working capital was up 24.3% to $18.9 million.

Subsequent to quarter-end, closing a CAN$100 million of convertible debentures

"We are pleased with our second quarter results. We substantially completed the integration of Seroyal, and the new North American management structure implemented a few months ago is beginning to provide tangible benefits to support our next growth phase," said Pierre Fitzgibbon, President and Chief Executive Officer.

"We experienced strong revenue growth from acquisitions, as well as solid global organic growth for a second consecutive quarter from our branded products. Moreover, we increased our EBITDA margin compared to the first quarter of 2011, and we should expect further improvements going forward with the various initiatives underway in our global supply chain management program".

"We are confident in our ability to out-perform the industry since we have started several new organic growth initiatives," concluded Mr. Fitzgibbon.

For the quarter ended June 30, 2011, Atrium recorded revenues of $105.2 million representing an increase of 23.5% compared to revenues of $85.2 million in 2010. This increase is mainly attributable to the acquisitions of Seroyal and Minami as well as to organic growth of the Company's branded business.

EBITDA increased by 17.2% to $23.8 million or 22.6% of revenues compared to $20.3 million or 23.8% of revenues for the same period in 2010. The acquisitions of Seroyal and Minami and organic growth contributed to the increase in EBITDA.

Net earnings attributable to shareholders were $14.4 million in 2011 compared to $12.4 million in 2010, representing an increase of 16.1%. Net earnings per share ("EPS") on a diluted basis rose to $0.44 per share, as compared to $0.37 per share for the same period in 2010.

Cash flows from operating activities before changes in non-cash working capital items were $18.9 million compared to $15.2 million in 2010. As at June 30, 2011, the Company had a total debt of $306.7 million and a cash position of $15.0 million.

Subsequent to quarter-end, the Company announced yesterday the closing of a convertible debenture public offering of CAN$75 million and a concurrent private placement of CAN$25 million. The net proceeds will be used to reduce the Company's outstanding indebtedness.

"Cash flow before working capital of $18.9 million during the quarter increased 24.3% over the same period last year confirming our ability to generate strong cash flows," said Mario Paradis, Chief Financial Officer of the Company. "Since the beginning of 2011, we acquired over 200,000 shares under our normal course issuer bid program and we will continue to act on our program depending on the circumstances. We also are pleased with our recently completed $100 million convertible debenture deal. It represents an important milestone to manage our capital structure and further support our growth strategy," concluded Mr. Paradis.

About Atrium

Atrium Innovations Inc. is a globally recognized leader in the development, manufacturing, and commercialization of innovative, science-based natural health products endorsed by health professionals. The Company distributes its extensive portfolio of products mainly in the healthcare practitioner and health food and specialized store channels, with a primary focus in North America and Europe. Atrium is at the forefront of science, innovation and education in the dietary supplement industry. The Company has over 1,000 employees and operates seven manufacturing facilities. Additional information is available at http://newhope360.com/research/atrium-innovations.

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