MDS posts flat Q4 2007 results before reactor shutdown
MDS reported an increase in net revenues for the fiscal 2007 fourth quarter, but a decrease in profits due in part to flat sales and earnings from local subsidiary MDS Nordion.
For the quarter, MDS reported net revenues of $318 million compared to $260 million in the same quarter last year, while net earnings dropped 68.1 percent to $15 million from last year’s quarter.
MDS Nordion's reported revenues for the fourth quarter were $76 million, which MDS said is level with the prior year. Adjusted EBITDA was $21 million, which is the same as last year.
The Ottawa, Ontario-based MDS Nordion said its revenues were up 3 percent year-over-year when excluding $2 million in deferred revenue associated with a supply agreement in 2006, driven by the strength of the Canadian dollar and increased revenue from expanding its TheraSphere liver cancer treatment markets.
However, the company reported its gains were offset by declines in cobalt shipments and the sale of a production irradiator system last year that was not repeated in the fourth quarter of 2007.
MDS the Atomic Energy of Canada Limited (AECL) shut down MDS Nordion on Nov. 18, interrupting its production of medical isotopes. The company said the financial impact of this extended interruption is currently expected to reduce MDS Nordion's adjusted EBITDA by approximately $8 million to $9 million in total for the first quarter of 2008. Legislation was passed Wednesday to reopen the reactor.
For the quarter, MDS reported net revenues of $318 million compared to $260 million in the same quarter last year, while net earnings dropped 68.1 percent to $15 million from last year’s quarter.
MDS Nordion's reported revenues for the fourth quarter were $76 million, which MDS said is level with the prior year. Adjusted EBITDA was $21 million, which is the same as last year.
The Ottawa, Ontario-based MDS Nordion said its revenues were up 3 percent year-over-year when excluding $2 million in deferred revenue associated with a supply agreement in 2006, driven by the strength of the Canadian dollar and increased revenue from expanding its TheraSphere liver cancer treatment markets.
However, the company reported its gains were offset by declines in cobalt shipments and the sale of a production irradiator system last year that was not repeated in the fourth quarter of 2007.
MDS the Atomic Energy of Canada Limited (AECL) shut down MDS Nordion on Nov. 18, interrupting its production of medical isotopes. The company said the financial impact of this extended interruption is currently expected to reduce MDS Nordion's adjusted EBITDA by approximately $8 million to $9 million in total for the first quarter of 2008. Legislation was passed Wednesday to reopen the reactor.