QUEBEC CITY, May 9, 2007 /PRNewswire-FirstCall via COMTEX/ -- Atrium Biotechnologies Inc. (CA:ATB: news, chart, profile) today announced that it had revenues of US$94.7 million for the first quarter ended March 31, 2007, up 25% from US$76.0 million for the corresponding quarter in 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2007 were US$15.0 million, up 32% from US$11.4 million for the same period in 2006. Net earnings increased 25% to US$8.6 million for the quarter ended March 31, 2007, compared to US$6.9 million for the same period last year. Fully diluted earnings per share for the first quarter of 2007 were up 24% to US$0.26 per share compared to US$0.21 per share for the same period of 2006.
"Our first quarter 2007 financial results clearly demonstrate the success of our growth strategy that combines strong organic growth and strategic acquisitions in high-growth fragmented markets. Our growth shows that Atrium Biotechnologies is growing faster than the markets that we are in and in addition we went through the integration process of newly acquired companies. Our experienced management team, that continues to expand with our acquisitions, has permitted this growth", said Luc Dupont, President and Chief Executive Officer of Atrium.
Cash flows from operations (before changes in non-cash working capital items) for the first quarter of 2007 were US$9.7 million, up 21% from US$8.1 million for the same period in 2006. The Company has a revolving credit facility with an authorized amount of US$108 million and has the flexibility to increase it up to US$173 million. As of March 31, 2007, US$95 million was drawn down under the existing facility.
"Our cash flow generating capacity of over US$9 million for the first quarter 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$35.9 million for the first quarter ended March 31, 2007, representing an increase of 28.8% over revenues of US$27.9 million for the same period last year. EBITDA was US$10.1 million for the first quarter of 2007 representing an increase of 38.5% over the same period in 2006 where the EBITDA was US$7.3 million. Most of this increase came from strong organic growth of our major brands and the acquisitions of AquaCap in January 2007 and Douglas Laboratories Canada in September 2006.
"A team effort led to an important growth during the quarter. The acquisition of AquaCap this past January not only permitted us to further increase our leadership position in the United States and North America but also enhances our capacity to develop innovative products in the future. The first quarter organic growth was fed by several successful commercial initiatives started during the fourth quarter of 2006", said Richard Bordeleau, President of the Health & Nutrition Division.
Active Ingredients & Specialty Chemicals Division
Revenues from the Active Ingredients & Specialty Chemicals Division were US$58.8 million for the first quarter ended March 31, 2007, representing an increase of 22.1% over revenues of US$48.1 million for the same period in 2006. EBITDA was US$4.9 million for the first quarter of 2007, representing an increase of 19.8% over 2006 EBITDA of US$4.1 million. This increase is attributable to organic growth, to the development of new markets 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. We are now ready to proceed with more acquisitions and are now in a great position both in Europe and North America to continue to unroll 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 of the Active Ingredients & Specialty Chemicals Division.
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.
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.