QUEBEC CITY, Feb 28, 2006 /PRNewswire-FirstCall via COMTEX/ -- Atrium Biotechnologies Inc. (CA:ATBSV) today announced that it had revenues of US$201 million for the year ended December 31, 2005, up 47% from US$136 million for the corresponding previous fiscal year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal 2005 were US$25.2 million, up 21% from US$20.8 million for the same period last year. Net earnings increased 42% to US$14.3 million for the year ended December 31, 2005, compared to US$10.1 million for the same period last year.
"Fiscal 2005 was a very eventful year for Atrium with the acquisitions of MultiChem and Douglas Laboratories as well as the initial public offering in April 2005. Not only do we have excellent financial results, but we also have delivered our 2005 business plan which was to establish the Active Ingredients & Speciality Chemical Division in North America, to achieve the leadership position in the nutritional supplements market for healthcare professionals in North America and to access new sources of capital. We now have the financial capacity and strategic assets to grow Atrium to the next level in our high growth niche markets," said Luc Dupont, President and Chief Executive Officer of Atrium.
Earnings per share were US$0.51 per share for 2005 compared to US$0.44 per share for the same period last year. The significant increase in net earnings allowed the Company to increase earnings per share even though the weighted average number of shares outstanding increased to 27.8 million during fiscal 2005 compared to 22.8 million during fiscal 2004. The increase in shares outstanding is mainly due to the issuance of shares for the initial public offering completed on April 6, 2005, the issuance of shares related to the Douglas Laboratories acquisition and the acquisition of the minority interest in its subsidiary Unipex.
Cash flows from operations (before changes in non-cash working capital items) for the year 2005 were US$18.9 million, up 35% from US$14.0 million for the same period last year. On November 8, 2005, the Company modified its existing US$65 million revolving credit facility to increase the authorized amount to US$108 million with the flexibility to increase it up to US$172 million. As of December 31, 2005, US$94 million was drawn under the existing facility.
"Our increased cash flow generating capacity resulting from the recent acquisition of Douglas Laboratories along with our new 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.
Active Ingredients & Specialty Chemicals Division
Revenues from the Active Ingredients & Specialty Chemicals Division were US$168.0 million for the year ended December 31, 2005, representing an increase of 50.8% over revenues of US$111.4 million for the same period in 2004. EBITDA was US$13.3 million (or 7.9% of revenues) for the year ended December 31, 2005, representing an increase of 18.2% over 2004 EBITDA of US$11.2 million (or 10.1% of revenues). This increase is attributable essentially to newly-acquired MultiChem.
"The integration of MultiChem is proceeding according to our plan. We are now ready to implement our consolidation plan and proceed with acquisitions in order to be among the leaders in Canada just as we did in France with Unipex. We are now in a great position both in Europe and North America to continue unrolling our strategy to generate growth and become a global player in our segments," added Charles Boulanger, President - Active Ingredients & Specialty Chemicals.
Health & Nutrition Division
Revenues from the Health & Nutrition Division were US$32.9 million for the year ended December 31, 2005, representing an increase of 32.3% over revenues of US$24.8 million for the same period last year. EBITDA was US$11.9 million (or 36.4% of revenues) for the year ended December 31, 2005 representing an increase of 24.5% over the same period last year where the EBITDA was US$9.6 million (or 38.6% of revenues). Most of this increase came from the acquisitions of Pure Encapsulations in March 2004 and Douglas Laboratories in December 2005.
"The acquisition of Douglas Laboratories permits us to achieve a leadership position in the United States and North America. Together with Pure Encapsulations, we now have two strong brands recognized for their outstanding quality and efficacy. Douglas celebrated its 50th anniversary in 2005 while Pure enjoys close to 15 years of continuous growth. Today, with over 1,300 high quality products in our portfolio, access to more than 40,000 healthcare professionals and a strong team with seasoned management, we are well positioned to grow our market share and penetrate new markets through organic growth and acquisitions," said Richard Bordeleau, President - Health & Nutrition Division.
2005 Fourth Quarter Financial Results
For the three-month period ended December 31, 2005, revenues were US$58.4 million compared to US$35.5 million in 2004, representing a 65% increase. EBITDA increased 12% to US$5.8 million, compared to US$5.2 million for the same period in 2004. Net earnings for the fourth quarter 2005 increased 78% to US$4.0 million or US$0.14 per share, compared to US$2.3 million or US$0.10 per share for the same period in 2004. The weighted average number of shares outstanding was 29.4 million during the period compared to 23.4 million during the same period last year.
Financial Results Reported in U.S. Dollars
Effective with the fourth quarter 2005, the Company changed its reporting currency from Canadian dollars to U.S. dollars. The financial statements will more accurately reflect the Company's true operating results and financial position since a majority of Atrium's business is conducted in U.S. dollars.
Atrium Biotechnologies Inc. is a leading developer, manufacturer and marketer of science-based products for the cosmetics, pharmaceutical, chemical and nutrition industries. Atrium 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 40 countries, primarily in North America, Europe and Asia. Atrium has close to 500 employees and operates three 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). This measure is directly derived from the Consolidated Financial Statements for the year ended December 31, 2005 but does 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 for the year ended December 31, 2005 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 Prospectus for our Initial Public Offering (Management Discussion and Analysis) filed with 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.