BUSINESS NEWS: Atrium Innovations Announces First Quarter Financial Results of 2010

Atrium Innovations Announces First Quarter Financial Results of 2010

Solid Performance with Particular Strength in the U.S.

QUEBEC CITY, May 10 /CNW Telbec/ - Atrium Innovations Inc. (TSX: ATB), a recognized leading developer, manufacturer and marketer of professionally endorsed, science-based products for the health and nutrition industry, today released its financial results for the first quarter of 2010.

First Quarter Highlights:
(All amounts are in US dollars)

- Revenue and EBITDA growth of 27.5% and 19.5%
- Double digit growth of the U.S. branded business
- EBITDA of $21.2 million or 23.5% of revenues
- Net earnings of $13.0 million up 22.8%
- EPS of $0.39, up from $0.32 last year
- Acquisition of Trophic Canada, a leading manufacturer and distributor
of nutritional supplements in the Canadian health food store market




"Our solid first quarter was driven by the effect of the acquisition of Garden of Life and the strong momentum of our branded businesses, particularly in the U.S. market. European market conditions remained generally stable," said Pierre Fitzgibbon, President and Chief Executive Officer. "The acquisition of Trophic Canada during the quarter added a leading brand to our portfolio and the missing component to spearhead a broader and more aggressive growth strategy to enhance our share of the Canadian market. The integration process is well underway and is progressing on schedule.

"Our worldwide deployment strategy for Wobenzym is progressing very well as evidenced by the revenue growth we experienced with our Wobenzym products in the U.S., the Central Eastern European countries, and recently Italy. However, total sales of Wobenzym decreased slightly due to the transition period in Germany where the shift to Wobenzym P has presented some challenges. We are confident that our multi-product strategy will maintain and widen the consumer appeal of Wobenzym."

"We expect continued growth in our U.S. branded business, supported by strong industry fundamentals. We have reached a point in the evolution of our business model where our revenues and operations are now well diversified," concluded Mr. Fitzgibbon.

For the first quarter ended March 31, 2010, Atrium recorded revenues of $90.1 million representing an increase of 27.5% compared to revenues of $70.6 million for the corresponding period in 2009. The increase is mainly attributable to the acquisition of Garden of Life, and to organic growth of branded product businesses. Excluding the positive impact of the euro/US dollar exchange rate when we compared to the corresponding period last year, revenues would have increased by 25.1%.

Gross profit for the first quarter was $51.6 million compared to $38.5 million for 2009, an increase of $13.1 million or 34.0%. The increase in gross profit is primarily attributable to the acquisition of Garden of Life and to organic growth. For the first quarter, gross margin increased from 54.5% in 2009 to 57.3% in 2010. The gross margin increased due to the more favorable business mix of revenues and the integration of our Berlin manufacturing plant.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2010 increased by 19.5% to $21.2 million or 23.5% of revenue compared to $17.7 million or 25.1% of revenues for the same period in 2009. Excluding the impact of the euro/US dollar exchange rate, EBITDA would have increased by 16.6%.

Net earnings for the quarter were $13.0 million compared to $10.6 million in 2009, representing an increase of 22.8%. EPS for the quarter were $0.39 per diluted share compared to $0.32 per diluted share in 2009.

Cash flows from operating activities before changes in non-cash working capital items were $14.5 million in 2010, an increase of 24.2% compared to $11.6 million in 2009. As at March 31, 2010, the Company had a total debt of $185.2 million and a cash position of $10.5 million. The Company has a revolving credit facility that provides $300 million of borrowing capacity with no debt refinancing before July 2012.

SOURCE: CNW Newswire