Hamilton Thorne Reports Financial and Operational Results for the Quarter-Ended June 30, 2020

BEVERLY, Mass. and TORONTO, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Hamilton Thorne Ltd. (TSX-V:HTL), a leading provider of precision instruments, consumables, software and services to the Assisted Reproductive Technologies (ART), research, and cell biology markets, today reported unaudited financial and operational results for the quarter and six months ended June 30, 2020.

Highlights

• Sales decreased 8% year over year to $7.3 million for the quarter; sales for the six-month period increased 13% to $17.7 million; (constant currency decline of 8% for the quarter; increase of 14% for the six-month period)
• Gross profit decreased 9% year over year to $3.8 million for the quarter; increased 10% to $9.0 million for the six-month period
• Net loss of $594 thousand for the quarter; net loss of $449 thousand for the six-month period, largely due to sales and gross profit reduction due to the COVID-19 pandemic, and non-cash loss due to change in fair value of derivative
• Adjusted EBITDA decreased 63% to $573 thousand for the quarter; decreased 21% to $2.4 million for the six-month period
• Sales declined 20% in USD on an organic basis and was down 19% in constant currency; sales declined 5% on an organic basis for the six-month period in USD; 4% decline in constant currency
• Cash used in operations was $791 thousand for the six-month period, primarily to fund increased inventories; total cash on hand at June 30, 2020 was $18.5 million

“The first quarter of 2020 started off very strong,” stated David Wolf, President and Chief Executive Officer, “with sales results tapering off towards the end of Q1 and continuing into Q2 as the effects of the COVID-19 pandemic impacted our core markets. Sales into the human clinical market were down for the three-month period and somewhat up for the six-month period due to reduced demand for most of our products and services in certain territories, as many IVF clinics reduced their activities. Sales into the human market in the second quarter were also negatively affected by production delays in our incubator product line that were exacerbated by COVID-19 related supply chain problems. Sales into the cell biology/research markets grew substantially during the three- and six-month periods, primarily due to the contribution from the Planer acquisition, augmented by strong toxicology testing equipment sales. Sales into the animal breeding market were also up for both periods.”