Atrium Innovations Announces Fourth Quarter and Annual Financial Results of 2009
For the fiscal year ended December 31, 2009, Atrium recorded revenues of $319.7 million representing an increase of 17.1% compared to adjusted revenues of $272.9 million for the corresponding fiscal year in 2008.
26 Feb 2010 --- Atrium Innovations Inc., a recognized leading developer, manufacturer and marketer of professionally endorsed, science-based products for the health and nutrition industry, released fourth quarter and annual results for the period ended December 31, 2009.
2009 Highlights:
(All amounts are in US dollars)
* Revenue and EBITDA growth of 33.1% and 25.7% for the fourth quarter
* Revenues for 2009 of $319.7 million, up 17.1%
* EBITDA of $80.8 million and earnings per diluted share of $1.47 for the year
* Successful implementation of our new multi-channel strategy expanding future growth opportunities
* Completion of three strategic acquisitions: Nutri-Health, EAB and Garden of Life, representing an investment of over $83 million
* Continued corporate-wide process to optimize and leverage cross-selling, marketing expertise, manufacturing efficiencies, purchasing power and scientific collaboration
* Strong financial position to pursue acquisition program
“Atrium’s excellent performance during a year of lingering recession demonstrates the momentum and resilience of our business model,” said Pierre Fitzgibbon, President and Chief Executive Officer. “We have maintained our consistent record of solid results and strong cash flows of the past few quarters, which points to the durability of the markets we serve. More and more people are making dietary supplements their choice for a healthy future. This growing demand clearly validates the further expansion Atrium undertook in its multi-channel distribution strategy, as our acquisitions allowed us to enter the direct-to-consumer channel and health food stores. As a prominent global player in the nutritional supplement industry, we have every reason to believe that our continuing progress will result in both immediate and sustained benefits for our shareholders.”
For the fiscal year ended December 31, 2009, Atrium recorded revenues of $319.7 million representing an increase of 17.1% compared to adjusted revenues of $272.9 million for the corresponding fiscal year in 2008. This increase is mainly attributable to the acquisitions of Nutri-Health Supplements and Garden of Life as well as to organic growth of branded products business. Excluding the impact on European operations of unfavourable exchange rates between the euro and the US dollar, revenue would have been higher by $6.6 million or 19.6% when compared to 2008.
EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 9.3% to $80.8million or 25.3% of revenues compared to $73.9million or 27.1% of adjusted revenues for the same period in 2008. Without the negative impact of euro/US dollar exchange rate, EBITDA would have increased by 12.6% to $83.2 million
Net earnings were $48.7million in 2009 compared to $44.5 million in 2008, representing an increase of 9.4%. Net earnings per share (“EPS”) on a diluted basis rose to $1.47 per share, as compared to $1.35per share for the same period in 2008.
Cash flows from operating activities before changes in non-cash working capital items were $53.9 million, an increase of 10.1% compared to $48.9 million in 2008. As at December 31, 2009, the Company had a total debt of $169.9 million and a cash position of $17.2 million. The Company has a revolving credit facility that provides $300 million of borrowing capacity with no debt refinancing before July 2012.
Financial Results for the Fourth Quarter of 2009
For the fourth quarter ended December 31, 2009, Atrium recorded revenues of $95.0million representing an increase of 33.1% compared to adjusted revenues of $71.4 million for the corresponding period in 2008. This increase is mainly attributable to the acquisitions of Garden of Life and Nutri-Health Supplements, and to organic growth of branded products business. Excluding the positive impact of the variation in the euro/US dollar exchange rate, revenues would have increased by 27.5%.
EBITDA for the fourth quarter of 2009 increased by 25.2% to $23.0million or 24.2% of revenue compared to $18.3million or 25.7% of adjusted revenues for the same period in 2008. Excluding the impact of positive changes in euro/US dollar exchange rate, EBITDA would have increased by 20.0%.
Net earnings were $13.8million in 2009 compared to $11.2 million in 2008, representing an increase of 23.3%. EPS for the quarter were $0.42 per diluted share compared $0.34 per diluted share in 2008.
Cash flows from operating activities before changes in non-cash working capital items, were $16.2 million in 2009, an increase of 35.2% compared to $12.0 million in 2008.
“We ended 2009 with a very solid quarter in terms of revenues and cash flow generation. Atrium therefore entered 2010 with strong momentum, and both the confidence and means to sustain its growth,” said Mario Paradis, Chief Financial Officer of the Company. “With a net debt to EBITDA ratio of 1.8x on a pro forma basis and significant unused borrowing capacity, we have the financial flexibility to pursue our acquisition program. This program has established Atrium’s industry leadership on two continents, and further acquisitions promise to strengthen and extend the position of our brands in the marketplace.”
