QUEBEC CITY, Aug 10, 2006 /PRNewswire-FirstCall via COMTEX/ -- Atrium Biotechnologies Inc. (CA:ATB) today announced that it had revenues of US$74.3 million for the quarter ended June 30, 2006, up 48% from US$50.3 million for the corresponding quarter in 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter 2006 were US$11.7 million, up 64% from US$7.1 million for the same period last year. Net earnings increased 59% to US$6.3 million for the quarter ended June 30, 2006, compared to US$4.0 million for the same quarter last year.
"Again, we are very pleased with these results as they reflect organic growth combined with the disciplined execution of our strategic plan. The contribution of all of our acquired entities is reflected in the EBITDA margin of 15.7% compared to the EBITDA margin of 14.9% in the first quarter," said Luc Dupont, President and Chief Executive Officer of Atrium.
Earnings per share were US$0.21 per share for the second quarter 2006 compared to US$0.14 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 30.1 million during the second quarter 2006 compared to 28.9 million during the second quarter 2005. 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 second quarter 2006 were US$7.6 million, up 60% from US$4.8 million for the same period last year. On November 8, 2005, the Company modified its existing US$67 million revolving credit facility to increase the authorized amount to US$112 million with the flexibility to increase it up to US$179 million. As of June 30, 2006, US$88 million was drawn under the existing facility.
"The increase in the EBITDA margin from 14.9% in the first quarter 2006 to 15.7% this quarter clearly demonstrates that our operations are focused on increasing profitability throughout the Company and that we are achieving the synergies identified with our acquisitions," 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$44.6 million for the second quarter 2006, representing an increase of 4.0% over revenues of US$42.9 million for the same period in 2005. EBITDA was US$4.0 million for the quarter ended June 30, 2006, representing an increase of 2.5% over 2005 EBITDA of US$3.9 million. This increase in revenues is mainly attributable to the acquisition of Amisol in May 2006.
Health & Nutrition Division
Revenues from the Health & Nutrition Division were US$29.7 million for the quarter ended June 30, 2006, representing an increase of 297.1% over revenues of US$7.5 million for the same period last year. EBITDA was US$7.7 million for the quarter ended June 30, 2006 representing an increase of 137.4% over the same period last year where the EBITDA was US$3.2 million. Most of this increase came from the acquisition of Douglas Laboratories in December 2005, as well as from organic growth.
Six-Month Financial Results
For the six-month period ended June 30, 2006, revenues were US$150.3 million compared to US$98.5 million in 2005, representing a 53% increase. EBITDA increased 67% to US$23.0 million, compared to US$13.8 million for the same period in 2005. Net earnings increased 83% to US$13.2 million or US$0.44 per share, compared to US$7.2 million or US$0.27 per share for the same period in 2005. The weighted average number of shares outstanding was 30.1 million during the period compared to 26.4 million during the same period last year.
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 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) 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 for the quarter ended June 30, 2006 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.