Atrium Announces a Significant Increase in Revenues and Earnings for the Third Quarter of 2007



    The Company's EBITDA and net earnings increase by almost 75% and by 52%
    respectively during the period

    All amounts are in U.S. dollars

    QUEBEC CITY, Nov. 7 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB)
today announced that it had revenues of US$100.9 million for the third quarter
ended September 30, 2007, up 37.7% from US$73.3 million for the corresponding
quarter in 2006. Earnings before interest, taxes, depreciation and
amortization (EBITDA) for the third quarter of 2007 were US$19.2 million, up
74.8% from US$11.0 million for the same period in 2006. Net earnings increased
52.2% to US$9.8 million for the quarter ended September 30, 2007, compared to
US$6.4 million for the same period last year. Fully diluted earnings per share
for the third quarter of 2007 were up 50.0% to US$0.30 per share compared to
US$0.20 per share for the same period in 2006.
    For the nine-month period ended September 30, 2007, revenues were
US$272.0 million up 21.7% from US$223.6 million for the corresponding period
in 2006. EBITDA for the first nine months of 2007, was US$46.9 million, an
increase of 37.7% compared to the US$34.0 million for the same period last
year. Net earnings increased 27.4% to US$25.0 million generating a fully
diluted earnings per share of US$0.76, compared to US$19.6 million and
US$0.60 earnings per share for the first nine months of 2006.
    "Our results for the last quarter include an increase of almost 75% in
EBITDA. This demonstrates the soundness of our development strategy. Our
organic growth as well as our targeted acquisition plan in highly fragmented
markets are the corner stone of our success. In keeping with this strategy, we
completed on July 12, 2007, the acquisition of Mucos Emulsions GmbH ("Mucos"),
our largest acquisition to date. Mucos provides us with a high-performance
European platform that will be used as a strategic lever and will allow us to
pursue our growth in our Health & Nutrition Division in the markets that we
serve", stated Pierre Fitzgibbon, Atrium's President and Chief Executive
Officer.
    Cash flows from operations (before changes in non-cash working capital
items) for the third quarter of 2007 were US$11.2 million and were
US$7.8 million for the same period last year. In July 2007, Atrium modified
its existing revolving credit facility by increasing the authorized amount to
US$350 million with the possibility to increase it up to US$425 million under
certain conditions. This increases the financing flexibility of the Company
and will permit it to continue its acquisition strategy in each of his
Divisions.

    A Solid Management Team

    In addition, during the last quarter, the Company announced the
appointment of Dr. Serge Yelle as Executive Vice-President, Health & Nutrition
Division. In addition to supervising the operations of certain business units,
Dr. Yelle has played a key role over the past few years in the integration of
companies acquired by Atrium, including Douglas Laboratories and Mucos.
    "Atrium today has reached the stage of a mature corporation and can also
count on a highly-skilled and experienced management team demonstrating
longstanding expertise and vast know-how. This is in addition to the talent
and commitment of our 600 or so employees based in various regions of the
world. All these assets have enabled Atrium to become a true world leader in
its field in just a few years and they provide us with a solid foundation to
pursue our growth and development strategy aggressively", Mr. Fitzgibbon said.

    Health & Nutrition Division

    Revenues from the Health & Nutrition Division were US$50.9 million for
the third quarter ended September 30, 2007, representing an increase of 80.0%
over revenues of US$28.3 million for the same period last year. This increase
can primarily be explained by the acquisition of Mucos in July 2007. EBITDA
was US$15.3 million for the third quarter of 2007 representing an increase of
109.5% over the same period in 2006 where the EBITDA was US$7.3 million. Most
of this increase came from the acquisitions of Mucos in July 2007 and AquaCap
in January 2007 as well as from organic growth.
    "Our third quarter results reflect our determination to pursue Atrium's
business plan, which is focused on maintaining strong organic growth,
facilitating the smooth and rapid integration of acquired companies and
pursuing our proactive prospecting aimed at identifying new targets for
acquisition that are both financially and commercially promising. These
ingredients, which have ensured our success to date and represent Atrium's key
principles, will continue to guide us in our present and future development
plans", added Dr. Serge Yelle, Executive Vice-President, Health & Nutrition
Division.

    Active Ingredients & Specialty Chemicals Division

    Revenues from the Active Ingredients & Specialty Chemicals Division were
US$50.0 million for the third quarter ended September 30, 2007, representing
an increase of 11.1% over revenues of US$45.0 million for the same period in
2006. EBITDA was US$4.0 million for the third quarter of 2007, representing an
increase of 6.7% over 2006 EBITDA of US$3.7 million. This increase is
attributable to organic growth and to the development of new markets.
    "Our growth performance for the last quarter is very satisfactory. Our
growth rate in 2007, which is superior to that of our main competitors, allows
us to pursue our initiatives in order to follow through with our strategy to
offer our targeted customers a global solution in all our markets", said
Charles Boulanger, President of the Active Ingredients & Specialty Chemicals
Division.

    About Atrium

    Atrium Innovations 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 600 employees and operates four manufacturing
facilities. Additional information about Atrium is available on its Web site
at www.atrium-innov.com.

    Conference Call and Webcast

    Atrium will hold its quarterly conference call and webcast to discuss its
Third Quarter of 2007 on Thursday November 8, 2007 at 10:00 a.m. Eastern time.
Participants may access the call by using the following numbers: 416-644-3418,
514-807-8791 or 1-800-591-7539. A live webcast is also available via the
Company's website at www.atrium-innov.com in the "Investors" section. A replay
of the webcast will also be available on our website for a period of 30 days.
A copy of Atrium's interim unaudited financial statements is available on the
Company's website.

    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.

    Attachment: Financial summary


    
                           Atrium Innovations Inc.
                 Summary of Consolidated Financial Statements
             (in millions of US dollars except per share amounts)

    Consolidated Results for the 3-month periods ended September 30
    (unaudited)

                                                    2007      2006    Change

    Revenues                                       100.9      73.3      37.7%

    Gross Margin (1)                                37.3      21.6      72.8%
                                                    37.0%     29.5%

    EBITDA (2)                                      19.2      11.0      74.8%
                                                    19.0%     15.0%

    Net Earnings                                     9.8       6.4      52.2%

    Net earnings per share
    Basic                                           0.32      0.21
    Diluted                                         0.30      0.20

    Cash flow from operating activities before
     changes in non-cash operating working
     capital items                                  11.2       7.8      44.3%


    Consolidated Results for the 9-month periods ended September 30
    (unaudited)

                                                    2007      2006    Change

    Revenues                                       272.0     223.6      21.7%

    Gross Margin (1)                                91.8      66.1      38.9%
                                                    33.7%     29.6%

    EBITDA (2)                                      46.9      34.0      37.7%
                                                    17.2%     15.2%

    Net Earnings                                    25.0      19.6      27.4%

    Net earnings per share
    Basic                                           0.81      0.65
    Diluted                                         0.76      0.60

    Cash flow from operating activities before
     changes in non-cash operating working
     capital items                                  28.5      23.4      21.5%


    Consolidated Results for the 3-month periods ended September 30
    (unaudited)

                                                    2007      2006    Change

    Health & Nutrition
    ------------------
    Revenues                                        50.9      28.3      80.0%

    EBITDA (2)                                      15.3       7.3     109.5%
                                                    30.0%     25.8%

    Active Ingredients & Speciality Chemicals
    -----------------------------------------
    Revenues                                        50.0      45.0      11.1%

    EBITDA (2)                                       4.0       3.7       6.7%
                                                     7.9%      8.2%


    Consolidated Results for the 9-month periods ended September 30
    (unaudited)

                                                    2007      2006    Change
    Health & Nutrition
    ------------------
    Revenues                                       115.0      85.9      33.9%

    EBITDA (2)                                      33.7      22.2      51.6%
                                                    29.3%     25.9%

    Active Ingredients & Speciality Chemicals
    -----------------------------------------
    Revenues                                       157.1     137.7      14.0%

    EBITDA (2)                                      13.1      11.8      11.6%
                                                     8.4%      8.6%


    Consolidated Balance Sheet
    (unaudited)
                                                             As at     As at
                                                      September 30,  Dec. 31,
                                                              2007      2006
    Cash and Cash Equivalents and
     Short-term Investments                                   48.0      22.3
    Current assets                                           167.4     120.5
    Goodwill                                                 242.7     116.2
    Intangible assets                                        153.5      73.7
    Total assets                                             589.6     323.3
    Total debt                                               279.0      92.2
    Shareholders' equity                                     196.8     159.0

    (1) Gross margin means sales less cost of goods sold; cost of goods sold
        does not include depreciation of production equipment.

    (2) EBITDA means earnings before interest, income taxes, depreciation and
        amortization.
    




For further information:

For further information: Investor Relations: John Dempsey, Vice
President, Finance and Chief Financial Officer, (418) 652-1116 ext. 287,
jdempsey@atrium-innov.com; Media Relations: Frédéric Tremblay, HKDP, (514)
395-0375 ext. 234, ftremblay@hkdp.qc.ca

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