Atrium posts solid results in 2008 and strengthens its market leading position



    
           Significant increases in both revenues and net earnings
     from continuing operations of 68% and 80% respectively for the year
                  with another strong quarterly performance

    All amounts are in US dollars.
    

    QUEBEC CITY, Feb. 26 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB), a
globally recognized leader in the innovation, formulation, production and
commercialization of science-based and professionally-endorsed products for
the Health & Nutrition Industry, today disclosed its annual financial results
for 2008.

    
    Annual highlights:

    - Continued strong organic growth in both sales and earnings;
    - Strengthened its market-leading position within the HCP (Health Care
      Practitioners) channel;
    - US$73.9 million of EBITDA and US$1.35 of earnings per diluted share
      from continuing operations;
    - Excellent execution of the Specialty Chemical & Active Ingredients
      business divestiture;
    - Completion of four strategic acquisitions: Multicare B.V. (MCO Health)
      and Orthos, two Netherland-based companies; EAB, a German-based
      company; and Nutri-Health Supplements (transaction announced in
      January 5, 2009) a U.S.-based company;
    - Integration of acquisitions and implementation of synergies are well
      underway;
    - Strong financial position and well positioned to pursue its development
      and acquisition program.

    During the fiscal year ended December 31, 2008, Atrium recorded revenues
from its continuing operations of $290.1 million, which represented an
increase of 68% compared to revenues of $172.8 million for the corresponding
fiscal year in 2007. This increase is mainly attributable to the acquisitions
of Mucos and MCO Health as well as to organic growth. Earnings before
interest, taxes, depreciation and amortization (EBITDA) from its continuing
operations for the fiscal year of 2008 increased by 61% to $73.9 million
compared to $46.0 million for the same period in 2007. For the year ended
December 31, 2008, net earnings from continuing operations were $44.5 million
compared to $24.8 million for the same period in 2007, representing an
increase of 80%. The net earnings per share on a diluted basis from the
continuing operations rose to $1.35 per share, as compared to $0.76 per share
for the same period in 2007.
    The Company's total net earnings were $81.3 million for the fiscal year of
2008 compared to $35.7 million for the corresponding period in 2007. Net
earnings per share on a diluted basis rose to $2.46 per share for the fiscal
year of 2008, compared to $1.09 per share for the same period in 2007. It
should be noted that these amounts include the discontinued operations and,
for 2008, the gain on this divestiture.
    "I am pleased that in 2008 we delivered on all of our strategic objectives
by achieving solid and profitable growth in our operations, as well as
significantly strengthening our leadership position within our markets.
Additionally, we are proud to have been able to replace all of the earnings
divested in May of 2008 with those generated from our strategically acquired
business units and the Company's overall strong organic growth. We achieved
this while at the same time deleveraging our balance sheet. 2009 may prove to
be a challenging year as our industry may not experience the same growth rate
as it has in recent years, but we feel confident that we will deliver good
results given the synergies available within the Group," said Mr. Pierre
Fitzgibbon, President and Chief Executive Officer of Atrium.
    For year end of 2008, cash flows from continuing operating activities,
before changes in non-cash working capital items, were $48.9 million, an
increase of 72% compared to $28.5 million for the same period in 2007. As at
December 31, 2008, the Company had a total debt amounting to $180.0 million as
the Company has a revolving credit facility that provides $300 million of
borrowing capacity with no debt refinancing until July 2012.
    "As we enter 2009, Atrium is backed by a solid balance sheet and healthy
financial situation. Our operations continue to generate significant cash
flow. In addition, we continue to enjoy a high degree of flexibility with
regard to the use of our credit facility. These factors will enable us to
pursue our dynamic development plan this year. Our objective will be to
continue to grow organically and to carry out targeted acquisitions selected
to consolidate our leadership position within the high-quality,
professionally-endorsed channel of the Health and Nutrition Industry," added
Mr. Mario Paradis, Vice President and Chief Financial Officer of Atrium.

    Financial Results for the Fourth Quarter of 2008

    During the fourth quarter ended December 31, 2008, Atrium recorded
revenues from its continuing operations of $74.4 million, which represented an
increase of 29% compared to revenues of $57.9 million for the corresponding
period in 2007. This increase is mainly attributable to the acquisition of MCO
Health and to organic growth. Earnings before interest, taxes, depreciation
and amortization (EBITDA) from continuing operations for the fourth quarter of
2008 increased by 34% to $18.3 million compared to $13.7 million for the same
period in 2007. For the three-month period ended December 31, 2008, net
earnings from continuing operations were $11.2 million compared to $8.1
million for the same period in 2007, representing an increase of 39%.
    The Company's total net earnings were $10.6 million for the fourth quarter
of 2008 compared to $10.7 million for the corresponding period in 2007. For
the fourth quarter of 2008, net earnings per share on a diluted basis were
stable at $0.32 per share, compared to $0.33 per share for the same period in
2007. It should be noted that these amounts include discontinued operations.
    For the three-month period ended December 31, 2008, cash flows from
continuing operating activities, before changes in non-cash working capital
items, were $12.0 million, an increase of 33% compared to $9.0 million for the
same period in 2007.

    About Atrium

    Atrium Innovations Inc. is a globally recognized leader in the innovation,
formulation, production and commercialization 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
approximately 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
2008 fourth quarter and full-year results on Thursday, February 26, 2008 at
10:00 a.m. Eastern time. Participants may access the call by using the
following numbers: 416-644-3424, 514-807-8791 or 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 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 year ended December 31,
    (unaudited)
                                                      2008     2007   Change
                                                   -------- -------- --------
    Revenues                                         290.1    172.8     67.8%
    Gross Margin(1)                                  147.5     90.2     63.6%
                                                      50.8%    52.2%

    EBITDA(2)                                         73.9     46.0     60.7%
                                                      25.5%    26.6%

    Net earnings from continuing operations           44.5     24.8     79.5%

    Net earnings from discontinued operations         36.8     10.9
                                                   -------- --------

    Net earnings                                      81.3     35.7
                                                   -------- --------

    Net earnings per share from continuing
     operations
      Basic                                           1.37     0.80
      Diluted                                         1.35     0.76

    Net earnings per share
      Basic                                           2.51     1.16
      Diluted                                         2.46     1.09

    Cash flow from continuing operating activities
     before changes in non-cash operating working
     capital items                                    48.9     28.5     71.5%

    (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 results for the 3-month periods ended December 31,
    (unaudited)
                                                      2008     2007   Change
                                                   -------- -------- --------

    Revenues                                          74.4     57.9     28.5%
    Gross Margin(1)                                   37.7     30.9     21.8%
                                                      50.6%    53.4%

    EBITDA(2)                                         18.3     13.7     34.0%
                                                      24.7%    23.7%

    Net earnings from continuing operations           11.2      8.1     39.1%

    Net earnings from discontinued operations         -0.6      2.6
                                                   -------- --------

    Net earnings                                      10.6     10.7
                                                   -------- --------

    Net earnings per share from continuing
     operations
      Basic                                           0.35     0.26
      Diluted                                         0.34     0.25

    Net earnings per share
      Basic                                           0.33     0.34
      Diluted                                         0.32     0.33

    Cash flow from continuing operating activities
     before changes in non-cash operating working
     capital items                                    12.0      9.0     33.2%


    Consolidated Balance Sheet
    (unaudited)
                                                         As at         As at
                                                   December 31,  December 31,
                                                          2008          2007
                                                  ------------- -------------

    Assets
    Cash and cash equivalents                             38.0          27.4
    Other current assets                                 102.5         162.2
    Goodwill                                             209.4         168.8
    Other long-term assets                               208.7         266.8
                                                  ------------- -------------
                                                         558.6         625.2
                                                  ------------- -------------

    Liabilities and Shareholders' equity
    Short-term liabilities                                38.0          79.7
    Long-term debt                                       180.0         279.0
    Other long-term liabilities                           58.6          55.6
    Shareholders' equity                                 282.0         210.9
                                                  ------------- -------------
                                                         558.6         625.2
                                                  ------------- -------------

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




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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