Atrium Innovations Reports First Quarter 2009 Results



    
                 Company drives 16% growth in revenues and
             net earnings from continuing operations were stable
            notwithstanding negative foreign exchange environment
    

    All amounts are in US dollars.

    QUEBEC CITY, May 12 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB), a
recognized leading developer, manufacturer and marketer of science-based and
professionally endorsed products for the Health and Nutrition industry, today
announced its financial results for the first quarter of 2009.

    First quarter highlights:

    
    - Sales of US$70.6 million in the first quarter with organic growth
      despite economic environment;
    - EBITDA of US$17.7 million and US$0.32 per diluted share;
    - 9% increase in diluted earnings per share, excluding impact from
      foreign exchange;
    - The integration of two acquisitions made at the end of 2008, EAB and
      Nutri-Health, are proceeding according to plan;
    - Strong balance sheet to pursue business acquisitions.

    During the quarter ended March 31, 2009, Atrium recorded revenues from
continuing operations of $70.6 million, which represents an increase of 16%
compared to adjusted revenues of $61.1 million for the corresponding quarter
in 2008. This increase is mainly attributable to the acquisition of
Nutri-Health at the end of 2008, MCO and AOV during 2008 and to organic
growth. Earnings before interest, taxes, depreciation and amortization
(EBITDA) from continuing operations for the first quarter of 2009 was $17.7
million compared to $18.4 million for the same period in 2008. Net earnings
from continuing operations were $10.6 million or $0.32 per diluted share
compared to $10.5 million or $0.32 per diluted share for the same period in
2008.
    "Our results this quarter evidence that Atrium Innovations is a company
that can deliver a solid operating performance despite a difficult economic
environment", said Pierre Fitzgibbon, President and Chief Executive Officer of
Atrium Innovations. "As one of the world leaders in the nutritional supplement
industry, our goal is to maintain organic growth, while carefully managing the
increased credit risk that occurs during market downturns. We are pleased that
our business continues to grow although we have seen operating margins
pressure in some segment of our business. Additionally, the integration of EAB
and Nutri-Health are proceeding and we continue to evaluate other acquisition
opportunities to further consolidate Atrium's leadership position in our
fragmented industry."
    "Our EBITDA this quarter also reflects the impact of a stronger US dollar
as compared to the euro. The euro declined 13% compared to last year for the
same period. Without this negative exchange rate impact, the 2009 EBITDA and
diluted earnings per share would have been $19.2 million (increase of 5%) and
$0.35 (increase of 9%) respectively", added Mr. Fitzgibbon.
    The Company's total net earnings, incluging discontinued operations, were
$10.6 million for the first quarter of 2009 compared to $14.7 million for the
corresponding period in 2008. For the first quarter of 2009, net earnings per
share on a diluted basis were $0.32 per share, compared to $0.44 per share for
the same period in 2008. It should be noted that amounts of 2008 include
discontinued operations.
    For the first quarter of 2009 and 2008, cash flows from continuing
operating activities, before changes in non-cash working capital items, were
$11.7 million for both periods. As at March 31, 2009, the Company had a total
debt amounting to $171.8 million as the Company has a credit facility that
provides $300 million of borrowing capacity. The credit facility matures only
in 2012 and the Company is in compliance with all its financial covenants.

    About Atrium

    Atrium Innovations Inc. is a recognized leading developer, manufacturer
and marketer of science-based and professionally endorsed products for the
Health & Nutrition industry. The Company focuses primarily on growing segments
of the health and nutrition markets which are benefiting from the trends
towards healthy living and the ageing of the population. Atrium markets a
broad portfolio of finished products through its highly specialized sales and
marketing network in more than 35 countries, primarily in North America and
Europe. Atrium has over 800 employees and operates seven manufacturing
facilities. Additional information about Atrium is available on its website at
www.atrium-innov.com.

    Conference Call and Webcast

    Atrium will hold its quarterly conference call and webcast to discuss its
2009 first quarter results on Tuesday, May 12, 2009 at 2:00 p.m. Eastern time.
Participants may access the call by using the following numbers: 416-644-3415,
514-807-8791 or 800-733-7560. 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 will also be
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 Interim Consolidated Financial Statements
             (in millions of US dollars except per share amounts)

    Consolidated Results for the 3-month periods ended March 31,
    (unaudited)
                                                    2009      2008    Change
                                                --------- --------- ---------
    Revenues                                        70.6      65.8
      Inter-co revenues following EAB
       acquisition                                     -       4.7
                                                --------- ---------
    Revenues (adjusted in 2008)                     70.6      61.1      15.6%
                                                --------- ---------

    Gross Margin (1)                                38.5      35.6       8.3%
                                                    54.5%     58.3%

    EBITDA (2)                                      17.7      18.4      -3.6%
                                                    25.1%     30.1%

    Net earnings from continuing operations         10.6      10.5       0.5%

    Net earnings from discontinued operations          -       4.2
                                                --------- ---------

    Net earnings                                    10.6      14.7
                                                --------- ---------

    Net earnings per share from continuing
     operations
      Basic                                         0.33      0.33
      Diluted                                       0.32      0.32

    Net earnings per share
      Basic                                         0.33      0.46
      Diluted                                       0.32      0.44

    Cash flow from continuing operating
     activities before changes in non-cash
     operating working capital items                11.7      11.7
      Per diluted share                             0.35      0.35

    (1) Gross margin means sales less cost of goods sold.
    (2) EBITDA means earnings before interest, income taxes, depreciation and
        amortization.


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

    Consolidated Balance Sheet
    (unaudited)

                                                         As at         As at
                                                      March 31,  December 31,
                                                          2009          2008
                                                 -------------- -------------

    Cash and cash equivalents                             21.4          38.0
    Other current assets                                  99.9         102.5
    Goodwill                                             223.7         209.4
    Other long-term assets                               203.3         208.7
                                                 -------------- -------------
    Total assets                                         548.3         558.6
                                                 -------------- -------------

    Short-term liabilities                                33.5          38.0
    Long-term debt                                       171.8         180.0
    Other long-term liabilities                           59.3          58.6
    Shareholders' equity                                 283.7         282.0
                                                 -------------- -------------
    Total liabilities and shareholders' equity           548.3         558.6
                                                 -------------- -------------
    




For further information:

For further information: Investor Relations: Mario Paradis, Vice
President and Chief Financial Officer, (418) 652-1116,
mparadis@atrium-innov.com; Media Relations: Frédéric Tremblay, Tremblay
Communications Stratégiques, (514) 658-8033, tremblayfr@videotron.ca

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Atrium Innovations Inc.

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