Atrium Announces a Significant Increase in Revenues and Earnings for the Third Quarter of 2007
For the nine-month period ended September 30, 2007, revenues were US$272.0million up 21.7% from US$223.6 million for the corresponding period in 2006.EBITDA for the first nine months of 2007, was US$46.9 million, an increase of37.7% compared to the US$34.0 million for the same period last year. Netearnings increased 27.4% to US$25.0 million generating a fully dilutedearnings per share of US$0.76, compared to US$19.6 million and US$0.60earnings per share for the first nine months of 2006.
"Our results for the last quarter include an increase of almost 75% inEBITDA. This demonstrates the soundness of our development strategy. Ourorganic growth as well as our targeted acquisition plan in highly fragmentedmarkets are the corner stone of our success. In keeping with this strategy, wecompleted on July 12, 2007, the acquisition of Mucos Emulsions GmbH ("Mucos"),our largest acquisition to date. Mucos provides us with a high-performanceEuropean platform that will be used as a strategic lever and will allow us topursue our growth in our Health & Nutrition Division in the markets that weserve", stated Pierre Fitzgibbon, Atrium's President and Chief ExecutiveOfficer.
Cash flows from operations (before changes in non-cash working capitalitems) for the third quarter of 2007 were US$11.2 million and were US$7.8million for the same period last year. In July 2007, Atrium modified itsexisting revolving credit facility by increasing the authorized amount toUS$350 million with the possibility to increase it up to US$425 million undercertain conditions. This increases the financing flexibility of the Companyand will permit it to continue its acquisition strategy in each of hisDivisions.
A Solid Management Team
In addition, during the last quarter, the Company announced theappointment of Dr. Serge Yelle as Executive Vice-President, Health & NutritionDivision. In addition to supervising the operations of certain business units,Dr. Yelle has played a key role over the past few years in the integration ofcompanies acquired by Atrium, including Douglas Laboratories and Mucos.
"Atrium today has reached the stage of a mature corporation and can alsocount on a highly-skilled and experienced management team demonstratinglongstanding expertise and vast know-how. This is in addition to the talentand commitment of our 600 or so employees based in various regions of theworld. All these assets have enabled Atrium to become a true world leader inits field in just a few years and they provide us with a solid foundation topursue our growth and development strategy aggressively", Mr. Fitzgibbon said.
Health & Nutrition Division
Revenues from the Health & Nutrition Division were US$50.9 million for thethird quarter ended September 30, 2007, representing an increase of 80.0% overrevenues of US$28.3 million for the same period last year. This increase canprimarily be explained by the acquisition of Mucos in July 2007. EBITDA wasUS$15.3 million for the third quarter of 2007 representing an increase of109.5% over the same period in 2006 where the EBITDA was US$7.3 million. Mostof this increase came from the acquisitions of Muco
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