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8-K
ACETO CORP filed this Form 8-K on 11/03/2017
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Exhibit 99.1

 

 

ACETO Corporation

4 Tri Harbor Court

Port Washington, New York 11050

  

“Sourcing and Supplying Quality Products Worldwide” NEWS RELEASE

 

FOR IMMEDIATE RELEASE

 

ACETO Reports Fiscal 2018 First Quarter Results

 

PORT WASHINGTON, N.Y., November 2, 2017 — ACETO Corporation (Nasdaq: ACET), focused on the global marketing, sale and distribution of Human Health products, Pharmaceutical Ingredients and Performance Chemicals, announced today financial results for the first quarter of fiscal 2018 ended September 30, 2017.

 

First Quarter Fiscal 2018 versus First Quarter Fiscal 2017

 

·Net sales of $185.3 million versus $128.0 million, a 44.7% increase
·Gross profit of $40.0 million versus $30.8 million, a 29.7% increase
·Net income of $0.5 million versus $4.4 million, a 89.6% decrease
·Diluted EPS of $0.01 versus $0.15, an 93.3% decrease
·Non-GAAP Adjusted Net Income of $10.7 million versus $8.3 million, a 29.1% increase
·Non-GAAP Adjusted EPS of $0.30 versus $0.28, a 7.1% increase

 

Management Commentary

 

“Our legacy Rising Pharmaceuticals business posted its first year-over-year increase in quarterly sales in over a year, supported by new product launches in the second half of fiscal 2017. In addition, Human Health segment sales benefited from the addition of the Citron and Lucid products. However, pricing pressure on the more mature products in the legacy Rising portfolio and the inclusion of the Citron and Lucid products, which carry a lower gross margin, contributed to a contraction in segment profitability,” said William C. Kennally, III, Chief Executive Officer of ACETO. “On the strength of the cash flow generated by our stable Pharmaceutical Ingredients and Performance Chemicals segments and a significant improvement in our Human Health accounts receivable collections, we generated $44 million in operating cash flow, which gave us ample funds to pay down $24 million of long-term debt for a leverage ratio of 3.71x at quarter end.

 

“While our first quarter results were largely in-line with our expectations and we still plan to launch 15 to 20 products in fiscal 2018, the timing of some of our product launches will be delayed due to API constraints and technical challenges, issues which we expect to fully resolve as the year progresses. Additionally, our current view of industry conditions is now indicating greater than previously expected headwinds in terms of both competitive intensity and the impact from ongoing customer consolidations. As a result, we are lowering our net sales and profit guidance. Nevertheless, we believe we remain well positioned to weather what has become a prolonged generics industry downturn and grow net sales, based on the steady supply of new products to launch, our strong balance sheet and our steady cash generating businesses. With our large and diversified portfolio of 140 generic drug products and robust pipeline of 115 product candidates, consisting of 60 ANDAs approved or on file at the FDA and 55 products under development, our strategic transition toward human health will continue to move forward,” concluded Mr. Kennally.

 

Please see fiscal 2018 guidance provided within this press release after the financial review.

 

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