LAKE SUCCESS, N.Y., Nov. 5, 2010 (GLOBE NEWSWIRE) -- Aceto Corporation (Nasdaq:ACET), a global leader in the sourcing, quality assurance, regulatory support, marketing and distribution of pharmaceuticals, nutraceuticals, specialty chemicals and crop protection products, today announced results of operations for its fiscal 2011 first quarter ended September 30, 2010.
Net sales for the fiscal 2011 first quarter were $87.7 million, an increase of 24.1% from $70.6 million reported in the year ago quarter. Gross profit increased 12.4% to $13.3 million in the 2011 fiscal quarter compared to $11.8 million in the 2010 fiscal quarter. SG&A expenses decreased 5.4% to $9.6 million in the 2011 quarter compared to $10.1 million in the year ago comparable quarter. Net income increased 178.9% to $2.8 million, or $0.11 per diluted share, compared to $1.0 million or $0.04 per diluted share in the 2010 quarter.
Commenting on the results, Albert Eilender, Chairman and CEO of Aceto stated, "We are pleased with the results that we have reported today. All three of our business segments showed nice sales growth during the quarter. During the quarter, sales in our Health Sciences segment increased 12.6% from the 2010 comparable quarter, largely the result of increased sales in both our domestic and international operations. The increase domestically can be attributed to increases in both our domestic generics and domestic pharmaceutical intermediates product groups. Sales in our Specialty Chemicals segment increased 32.4% compared to the 2010 comparable quarter, largely the result of increased sales of chemicals used in surface coatings as well as increased sales of agricultural, dye, pigment and miscellaneous intermediates. Sales in our Crop Protection segment increased 89.8% from the 2010 comparable quarter, largely the result of our introduction of glyphosate which we began selling in the fiscal 2010 third quarter. Regarding our effort to sell finished dosage form generic drugs, we continue to introduce additional products from our external pipeline as the business remains a focus of ours."
CONFERENCE CALL
Albert Eilender, Vincent Miata and Douglas Roth will conduct a conference call at 10:00 a.m. ET on Friday, November 5, 2010. Interested parties may participate in the call by dialing 800-447-0521 (847-413-3238 for international callers) – please call in 10 minutes before the call is scheduled to begin, and ask for the Aceto call (conference ID # 28217561). The conference call will also be webcast live via the Investor Relations section of the Company's website, www.aceto.com. To listen to the live call please go to the website at least 15 minutes early to register, download and install any necessary audio software. The conference call will be archived on the Company's website, and a recorded phone replay will also be available from 1:00 p.m. ET on Friday, November 5, 2010 until 5:00 p.m. ET on Monday, November 8, 2010. Dial 888-843-7419 (630-652-3042 for international callers) and enter the code 28217561 for the phone replay.
ABOUT ACETO
Aceto Corporation, incorporated in 1947, is a global leader in the sourcing, quality assurance, regulatory support, marketing and distribution of pharmaceuticals, nutraceuticals, specialty chemicals and crop protection products. With business operations in ten countries, Aceto distributes over 1000 chemical compounds used either as principal raw materials or as finished products in the pharmaceutical, agricultural, surface coating/ink and general chemical consuming industries. Aceto's global operations, including a staff of 26 in Shanghai and 12 in India are distinctive in the industry and enable its worldwide sourcing and regulatory capabilities. (ACET-F)
This news release contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this news release may not occur. Generally, these statements relate to our business plans or strategies, projected or anticipated benefits or other consequences of Aceto's plans or strategies, financing plans, projected or anticipated benefits from acquisitions that Aceto may make, or projections involving anticipated revenues, earnings or other aspects of Aceto's operating results or financial position, and the outcome of any contingencies. Any such forward-looking statements are based on current expectations, estimates and projections of management. Aceto intends for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," and "continue," and their opposites and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company's strategic initiatives including selling finished dosage form generic drugs, and statements regarding the prospects for long-term growth. Aceto cautions you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond Aceto's control, that may influence the accuracy of the statements and the projections upon which the statements are based. Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, risks and uncertainties discussed in Aceto's reports filed with the Securities and Exchange Commission, including, but not limited to, Aceto's Annual Report or Form 10-K for the fiscal year ended June 30, 2010 and other filings. Copies of these filings are available at http://www.sec.gov/ blocked::http://www.sec.gov/">www.sec.gov.
Any one or more of these uncertainties, risks and other influences could materially affect Aceto's results of operations and whether forward-looking statements made by Aceto ultimately prove to be accurate. Aceto's actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. Aceto undertakes no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
| Aceto Corporation | ||
| Consolidated Statements of Income | ||
| (in thousands, except per share amounts) | ||
| (unaudited) | ||
| Three Months Ended | ||
| September 30, | ||
| 2010 | 2009 | |
| Net sales | $ 87,660 | $ 70,609 |
| Cost of sales | 74,373 | 58,793 |
| Gross profit | 13,287 | 11,816 |
| Gross profit % | 15.16% | 16.73% |
|
Selling, general and administrative expenses |
9,597 | 10,140 |
| Operating income | 3,690 | 1,676 |
| Other income (expense), net of interest expense | 560 | (43) |
| Income before income taxes | 4,250 | 1,633 |
| Income tax provision | 1,453 | 630 |
| Net income | $ 2,797 | $ 1,003 |
| Net income per common share | $ 0.11 | $ 0.04 |
| Diluted net income per common share | $ 0.11 | $ 0.04 |
| Weighted average shares outstanding: | ||
| Basic | 25,329 | 24,592 |
| Diluted | 25,506 | 25,022 |
| Aceto Corporation | ||
| Consolidated Balance Sheets | ||
| (in thousands, except per-share amounts) | ||
| September 30, 2010 | June 30, 2010 | |
| (unaudited) | ||
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 40,113 | $ 30,850 |
| Investments | 402 | 335 |
|
Trade receivables: less allowances for doubtful accounts: Sept. 30, 2010 $665; and June 30, 2010 $1,098 |
58,354 | 74,674 |
| Other receivables | 13,087 | 11,004 |
| Inventory | 77,050 | 74,857 |
| Prepaid expenses and other current assets | 2,155 | 1,969 |
| Deferred income tax asset, net | 1,750 | 1,864 |
| Total current assets | 192,911 | 195,553 |
| Property and equipment, net | 7,183 | 6,913 |
| Property held for sale | 3,752 | 3,752 |
| Goodwill | 1,830 | 1,730 |
| Intangible assets, net | 11,834 | 12,360 |
| Deferred income tax asset, net | 2,337 | 2,419 |
| Other assets | 9,814 | 9,124 |
| Total Assets | $ 229,661 | $ 231,851 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 30,135 | $ 39,970 |
| Short-term bank loans | 5,000 | -- |
| Accrued expenses | 28,306 | 33,589 |
| Deferred income tax liability | 897 | 1,070 |
| Total current liabilities | 64,338 | 74,629 |
| Long-term bank loans | 550 | 550 |
| Long-term liabilities | 9,310 | 9,421 |
| Environmental remediation liability | 7,539 | 7,607 |
| Deferred income tax liability | 44 | -- |
| Total liabilities | 81,781 | 92,207 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
| Common stock, $.01 par value: | ||
|
(40,000 shares authorized; 25,644 shares issued; 25,445 and 25,415 shares outstanding at Sept. 30, 2010 and June 30, 2010, respectively) |
256 | 256 |
| Capital in excess of par value | 53,776 | 53,686 |
| Retained earnings | 89,755 | 86,958 |
| Treasury stock, at cost: | ||
|
(199 and 229 shares at Sept. 30, 2010 and June 30, 2010, respectively) |
(1,926) | (2,209) |
| Accumulated other comprehensive income | 6,019 | 953 |
| Total shareholders' equity | 147,880 | 139,644 |
| Total liabilities and shareholders' equity | $ 229,661 | $ 231,851 |