Mr. David Wolf reports

HAMILTON THORNE REPORTS REVENUE FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2023

Hamilton Thorne Ltd. has released its audited financial results for the quarter and six months ended June 30, 2023.

Financial highlights:

• Sales increased 15 per cent year over year to $16.4-million for the quarter; sales for the six-month period increased 17 per cent to $33.1-million; sales increased 14 per cent for the quarter and 19 per cent for the six-month period on a constant-currency basis.
• Gross profit increased 21 per cent to $8.5-million for the quarter and increased 22 per cent to $17.0-million for the six-month period.
• Net loss was $439,000 for the quarter and $362,000 for the six-month period, versus a net income of $275,000 and $831-million in the prior-year periods.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 16 per cent to $2.8-million for the quarter and increased 15 per cent to $5.7-million for the six-month period.
• Organic sales growth was 5 per cent for the quarter and 10 per cent for the six-month period.
• Cash generated from operations was $1.8 in the quarter. Total cash on hand at June 30, 2023, was $16.4-million.

David Wolf, president and chief executive officer of Hamilton Thorne, commented: "Our strong start to 2023 continued in the second quarter, with revenue growth of 15 per cent for the quarter and 17 per cent for the year. Equipment sales growth was in the single digits for the quarter, reflecting some delays on orders until Q3, while consumables, software and services grew over 20 per cent. Our strategy to increase sales of higher-margin proprietary equipment and software, services and branded consumables, combined with increased direct sales of products, yielded gross profit margins increases to 52.0 per cent for the quarter and 51.3 per cent for the six months ended June 30, 2023, versus 49.8 per cent and 49.3 per cent in the prior year. Our organic growth, which eliminates the effects of both acquisitions and exchange rates, was up 5 per cent for the quarter and 10 per cent for the six-month period."

See the company's management's discussion and analysis for the periods covered for further information and a reconciliation of adjusted EBITDA to net income.

Outlook

Mr. Wolf continued: "We continue to feel that our company is in a great position as demand for our products and services remains strong based on the positive trends in our field and we expect to continue to have organic sales growth in the 10-per-cent range in the second half of the year. Also, while we faced 4-to-5-per-cent currency headwinds in Q1, these impacts largely disappeared in Q2 and, if the current trends continue, we should see some tailwinds in the second half of the year."

Commenting on the company's M&A (merger and acquisition) activities, Francesco Fragasso, the company's chief financial officer, stated: "We have an extensive pipeline and are actively working on multiple acquisition opportunities. With liquidity of approximately $26.4-million from our significant cash on hand and unused lines of credit, along with further debt capacity, we are well positioned to continue to execute on our acquisition program."

Conference call

The company has scheduled a conference call on Thursday, Aug. 17, 2023, at 9 a.m. EDT, to review highlights of the results. All interested parties are welcome to join the conference call by dialling toll-free 1-833-630-1956 in North America or 1-412-317-1837 from other locations, and requesting the Hamilton Thorne call. The company's updated investor presentation and a recording of the call will be available on Hamilton Thorne's website shortly after the call.

Financial statements and the accompanying MD&A for the periods are available on SEDAR and the Hamilton Thorne website.

About Hamilton Thorne Ltd.

Hamilton Thorne is a leading global provider of precision instruments, consumables, software and services that reduce cost, increase productivity, improve results and enable breakthroughs in assisted reproductive technologies (ART), research and cell biology markets. Hamilton Thorne markets its products and services under the Hamilton Thorne, Gynemed, Planer, Tek-Event, IVFtech, Microptic and Embryotech Laboratories brands, through its growing sales force and distributors worldwide. Hamilton Thorne's customer base consists of fertility clinics, university research centres, animal breeding facilities, pharmaceutical companies, biotechnology companies, and other commercial and academic research establishments.

The company has included adjusted EBITDA, organic growth, and constant currency as non-IFRS (international financial reporting standards) measures, which are used by management as measures of financial performance. See sections in the MD&A for further information and a reconciliation of adjusted EBITDA to net income.

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