Atrium Continues its Growth with a 5% Increase in Net Earnings for the Second Quarter of 2007



    All amounts are in U.S. dollars

    QUEBEC CITY, Aug. 8 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB)
today announced that it had revenues of US$76.4 million for the second quarter
ended June 30, 2007, up 2.9% from US$74.3 million for the corresponding
quarter in 2006. Earnings before interest, taxes, depreciation and
amortization (EBITDA) for the second quarter of 2007 were US$12.7 million, up
8.6% from US$11.7 million for the same period in 2006. Net earnings increased
4.9% to US$6.6 million for the quarter ended June 30, 2007, compared to     
US$6.3 million for the same period last year. Fully diluted earnings per share
for the second quarter of 2007 were up 5.3% to US$0.20 per share compared to
US$0.19 per share for the same period of 2006.
    For the six-month period ended June 30, 2007, revenues were            
US$171.1 million up 13.8% from US$150.3 million for the corresponding period
in 2006. EBITDA for the first half of 2007 was US$27.6 million, an increase of
20.0% compared to the US$23.0 million for the same period last year. Net
earnings increased 15.4% to US$15.2 million generating a fully diluted
earnings per share of US$0.47, compared to US$13.2 million and US$0.41
earnings per share for the first half of 2006.
    "Our financial results for the first six months of 2007 again demonstrate
the success of our growth strategy that combines strong organic growth and
strategic acquisitions in high-growth fragmented markets. Our EBITDA organic
growth year to date of 9% shows that Atrium Innovations is growing faster than
the markets that we are in. In addition, during the last quarter we were
actively involved with the closing of the Mucos acquisition on July 12, 2007,
our largest acquisition to-date. We have everything we need to pursue our
organic and acquisition development plan with innovative products in market
niches with aggressive growth and an experienced management team", said Pierre
Fitzgibbon, President and Chief Executive Officer of Atrium.
    Cash flows from operations (before changes in non-cash working capital
items) for the second quarter of 2007 were US$7.5 million and were          
US$7.6 million for the same period last year. On July 4, 2007, the Company
modified its existing US$117 million revolving credit facility increasing the
authorized amount to US$350 million with the flexibility to increase it up to
US$425 million under certain conditions. As of July 12, 2007, US$264.3 million
was drawn under the facility.
    "Our cash flow generating capacity of over US$7 million for the second
quarter along with our amended credit facility, will allow the Company to
continue its acquisition strategy in each of our Divisions," added John
Dempsey, Vice President, Finance and Chief Financial Officer.

    Health & Nutrition Division

    Revenues from the Health & Nutrition Division were US$28.2 million for
the second quarter ended June 30, 2007, representing a decrease of 5.1% over
revenues of US$29.7 million for the same period last year. This reduction can
be explained by the exceptional performance in the first quarter. For the
third quarter of 2007, we expect growth over the same period in 2006. EBITDA
was US$8.4 million for the second quarter of 2007 representing an increase of
9.1% over the same period in 2006 where the EBITDA was US$7.7 million. Most of
this increase came from the acquisition of AquaCap in January 2007 and
synergies related to the acquisition.
    "Our performance over the six-month period is very satisfactory, with
revenues and EBIDTA increases of 11.3% and 23.4% respectively. Based on our
six-month period results, we are confident to fulfill our annual organic
growth objectives taking into account all the projects in process. During the
last half of 2007, the team efforts will be concentrated on delivering these
projects and integrating Mucos in order to materialize the commercial
synergies that we have identified", said Richard Bordeleau, President of the
Health & Nutrition Division.

    Active Ingredients & Specialty Chemicals Division

    Revenues from the Active Ingredients & Specialty Chemicals Division were
US$48.3 million for the second quarter ended June 30, 2007, representing an
increase of 8.2% over revenues of US$44.6 million for the same period in 2006.
EBITDA was US$4.3 million for the second quarter of 2007, representing an
increase of 7.6% over 2006 EBITDA of US$4.0 million. This increase is
attributable to organic growth, to the development of new markets and to the
acquisition of Amisol in May 2006.
    "The excellent results of the first half of 2007 demonstrate that we are
pursuing a constant growth in all of our designated markets. Our growth rate,
superior to our competitors, allows us to increase our market share and helps
us to improve our global competitive position" added 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-bio.com.

    Conference Call and Webcast

    Atrium will hold its quarterly conference call and webcast to discuss its
Second Quarter of 2007 on Thursday August 9, 2007 at 10:00 a.m. Eastern time.
Participants may access the call by using the following numbers: 416-644-3432,
514-807-8791 or 1-800-814-4861. 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 ended June 30
    (unaudited)

                                                2007        2006      Change

    Revenues                                    76.4        74.3         2.9%

    Gross Margin(1)                             26.1        23.1        13.1%
                                                34.1%       31.0%

    EBITDA(2)                                   12.7        11.7         8.6%
                                                16.6%       15.7%

    Net Earnings                                 6.6         6.3         4.9%

    Net earnings per share
    Basic                                       0.22        0.21
    Diluted                                     0.20        0.19

    Cash flow from operating activities
     before changes in non-cash operating
     working capital items                       7.5         7.6        -1.2%


    Consolidated Results for the 6-month periods ended June 30
    (unaudited)

                                                2007        2006      Change

    Revenues                                   171.1       150.3        13.8%

    Gross Margin(1)                             54.5        44.5        22.4%
                                                31.8%       29.6%

    EBITDA(2)                                   27.6        23.0        20.0%
                                                16.2%       15.3%

    Net Earnings                                15.2        13.2        15.4%

    Net earnings per share
    Basic                                       0.50        0.44
    Diluted                                     0.47        0.41

    Cash flow from operating activities
     before changes in non-cash operating
     working capital items                      17.2        15.6        10.1%


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

                                                2007        2006      Change

    Health & Nutrition
    ------------------
    Revenues                                    28.2        29.7        -5.1%

    EBITDA(2)                                    8.4         7.7         9.1%
                                                29.8%       25.9%

    Active Ingredients & Speciality Chemicals
    -----------------------------------------
    Revenues                                    48.3        44.6         8.2%

    EBITDA(2)                                    4.3         4.0         7.6%
                                                 8.9%        8.9%


    Consolidated Results for the 6-month periods ended June 30
    (unaudited)

                                                2007        2006      Change

    Health & Nutrition
    ------------------
    Revenues                                    64.1        57.6        11.3%

    EBITDA(2)                                   18.4        14.9        23.4%
                                                28.8%       26.0%

    Active Ingredients & Speciality Chemicals
    -----------------------------------------
    Revenues                                   107.0        92.7        15.4%

    EBITDA(2)                                    9.2         8.1        13.8%
                                                 8.6%        8.7%


    Consolidated Balance Sheet
    (unaudited)                                            As at       As at
                                                         June 30,    Dec. 31,
                                                            2007        2006

    Cash and Cash Equivalents and Short-term
     Investments                                            29.0        22.3
    Current assets                                         117.4       120.5
    Goodwill                                               134.2       116.2
    Intangible assets                                       75.7        73.7
    Total assets                                           343.7       323.3
    Total debt                                             101.3        92.2
    Shareholders' equity                                   180.4       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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