> Investors > News Release

News Release

Printer Friendly Version View printer-friendly version
Download PDF Download PDF
<< Back
Aceto Announces Fiscal 2010 Third Quarter Results

Third Quarter Sales Increase Approximately 25% Compared to Fiscal 2009

LAKE SUCCESS, N.Y., May 7, 2010 (GlobeNewswire via COMTEX News Network) -- 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 2010 third quarter and nine months ended March 31, 2010.

Net sales for the fiscal 2010 third quarter were $99.3 million, an increase of 24.5% from $79.8 million in the year ago quarter. Gross profit increased 19.6% to $15.9 million in the 2010 fiscal quarter compared to $13.3 million in the 2009 quarter. SG&A expenses decreased 3.8% to $10.1 million in the 2010 fiscal quarter compared to $10.5 million in the year ago comparable quarter. Net income increased 98.5% to $3.8 million, or $0.15 per diluted share, compared to $1.9 million or $0.08 per diluted share in the 2009 quarter.

Net sales for the nine months ended March 31, 2010 were $240.9 million, a 2.8% decrease from $247.9 million for the fiscal 2009 comparable period. Gross profit for the first nine months of fiscal 2010 was $38.4 million, a decrease of 12.5% from $43.9 million in the fiscal 2009 comparable period. Net income was $2.3 million, or $0.09 per diluted share for the first three quarters of fiscal 2010. The fiscal 2010 nine month period has been negatively impacted by three one-time, pre-tax, charges which were reflected in the fiscal 2010 second quarter results and were discussed in that quarter's results release. Had it not been for these charges, we would have reported net income of $0.22 for the nine month period ending March 31, 2010, as compared to $7.6 million, or $0.30 per diluted share in the fiscal 2009 comparable period.

Commenting on the Company's third quarter performance, Vincent Miata, CEO & President of Aceto stated, "We are pleased with the results that we have reported this morning. During our second quarter conference call, we had indicated that we had been seeing some encouraging signs that demand in some of our business segments was beginning to show signs of recovery. The results that we have reported today, with increased sales across all of our business segments, gives us encouragement that an upturn in our business is at hand. During the quarter, sales in our Health Sciences segment increased 16.4% from the comparable quarter as a result of increased sales across all business components of this segment. In our Specialty Chemicals segment, sales increased 22.6% on the same quarter comparison, the result of increased sales in both domestic and international markets. Sales of products used in surface coatings and in the food, beverage and cosmetics industries all showed marked improvement. Sales in our Crop Protection segment increased 95.9% from the same quarter last year, primarily due to sales of glyphosate which commenced during the third quarter. With regard to the previously filed glyphosate anti-dumping petition, the Company had been reviewing its options and strategy going forward, however, the United States International Trade Commission announced on April 29th that the petitioner had withdrawn the application. Aceto continues to believe that this product offers us opportunities now and in the future and is pleased with this outcome."

"Updating the current status of Aceto's animal vaccine project, we are still awaiting the USDA's decision regarding our permit application to import our supplier's canine vaccine with authorization for its distribution and sale in the United States. We continue to reiterate that this is a regulatory review and there is no prescribed timetable for the USDA to make their final decision. With regard to our effort to sell finished dosage form generic drugs, we continue to introduce new products from our pipeline and the initiative continues to be a focus."

Mr. Miata continued, "As we have previously discussed, over the past several months we have restructured the way Aceto manages its operations into more of a vertically integrated, global team matrix built around each of our business segments. This realigned management structure is beginning to take hold and we believe that Aceto is well positioned for future growth."

DIVIDEND

Aceto also announced that its Board of Directors declared a regular, semi-annual dividend of $0.10 per common share which will be distributed on June 25, 2010 to shareholders of record as of June 14, 2010.

CONFERENCE CALL

Albert Eilender, Vincent Miata and Douglas Roth will conduct a conference call at 10:00 a.m. ET on Friday, May 7, 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 # 26857580). 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, May 7, 2010 until 5:00 p.m. ET on Monday, May 10, 2010. Dial 888-843-8996 (630-652-3044 for international callers) and enter the code 26857580 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 in the pharmaceutical, agricultural, surface coating/ink and general chemical consuming industries, or as finished products. 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 providing vaccines for companion animals, 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, unforeseen environmental liabilities, international military conflicts, the mix of products sold and the profit margins thereon, order cancellation or a reduction in orders from customers, disruption of supply chain due to trade matters, competitive product offerings and pricing actions, the availability and pricing of key raw materials, dependence on key members of management, continued successful integration of acquisitions, receipt of regulatory approvals, risks of entering into new European markets, economic and political conditions in the United States and abroad, Aceto's ability to continue strong cost controls as well as other 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, 2009 and other filings. Copies of these filings are available at 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)             (unaudited)
                               Three Months Ended       Nine Months Ended
                                    March 31,               March 31,
                                2010         2009       2010         2009
                             -----------  ---------  -----------  ---------
  Net sales                     $ 99,347   $ 79,800     $240,866   $247,854
  Cost of sales                   83,495     66,545      202,418    203,917
                             -----------  ---------  -----------  ---------
  Gross profit                    15,852     13,255       38,448     43,937
  Gross profit %                  15.96%     16.61%       15.96%     17.73%
  Selling, general and
   administrative expenses        10,063     10,458       34,443     33,074
                             -----------  ---------  -----------  ---------
  Operating income                 5,789      2,797        4,005     10,863
  Other income (expense),
   net of interest expense           578      (268)          366        398
                             -----------  ---------  -----------  ---------
  Income before income
   taxes                           6,367      2,529        4,371     11,261
  Income tax provision             2,526        594        2,028      3,683
                             -----------  ---------  -----------  ---------
  Net income                     $ 3,841    $ 1,935      $ 2,343    $ 7,578
                             ===========  =========  ===========  =========
  Net income per common
   share                          $ 0.15     $ 0.08       $ 0.09     $ 0.31
  Diluted net income per
   common share                   $ 0.15     $ 0.08       $ 0.09     $ 0.30
  Weighted average shares
   outstanding:
     Basic                        25,181     24,569       24,874     24,457
     Diluted                      25,301     25,052       25,145     24,976
                     Aceto Corporation
                 Consolidated Balance Sheet
          (in thousands, except per-share amounts)
                                    March 31,    June 30,
                                      2010         2009
                                   (unaudited)
                                   -----------  ----------
  Assets
  Current Assets:
   Cash and cash equivalents          $ 38,298    $ 57,761
   Investments                             608         541
   Trade receivables: less
    allowances for doubtful
    accounts: March 31, 2010
    $1,090; and June 30, 2009
    $976                                61,628      46,996
   Other receivables                    13,229       9,361
   Inventory                            69,408      54,402
   Prepaid expenses and other
    current assets                       2,036       1,006
   Deferred income tax asset, net        1,536       1,579
                                   -----------  ----------
     Total current assets              186,743     171,646

  Long-term notes receivable               250       1,000
  Property and equipment, net            7,055       4,249
  Property held for sale                 3,752       3,752
  Goodwill                               1,819       1,861
  Intangible assets, net                13,179      11,518
  Deferred income tax asset, net         2,627       2,366
  Other assets                          10,969       9,072
                                   -----------  ----------

  Total Assets                       $ 226,394   $ 205,464
                                   ===========  ==========
  Liabilities and Shareholders'
   Equity
  Current liabilities:
  Accounts payable                    $ 36,091    $ 25,126
  Accrued expenses                      29,711      20,739
  Deferred income tax liability          1,072       1,072
                                   -----------  ----------
     Total current liabilities          66,874      46,937
  Long-term liabilities                  9,825       9,017
  Environmental remediation
   liability                             7,451       7,451
  Deferred income tax liability            253         491
                                   -----------  ----------
     Total liabilities                  84,403      63,896
  Commitments and contingencies
  Shareholders' equity:
  Common stock, $.01 par value:
  (40,000 shares authorized;
   25,644 shares issued; 25,341
   and 24,771 shares outstanding
   at March 31, 2010 and June 30,
   2009, respectively)                     256         256
  Capital in excess of par value        53,902      56,767
  Retained earnings                     85,264      85,450
  Treasury stock, at cost:
  (303 and 873 shares at March
   31, 2010 and June 30 2009,
   respectively)                       (2,929)     (8,430)
  Accumulated other comprehensive
   income                                5,498       7,525
                                   -----------  ----------
     Total shareholders' equity        141,991     141,568
                                   -----------  ----------
  Total liabilities and
   shareholders' equity              $ 226,394   $ 205,464
                                   ===========  ==========
             Aceto Corporation
  Diluted Net Income Per Common Share Excluding Charges
         (in thousands, except per share amounts)

                                            (unaudited)
                                            Nine Months
                                            Ended March
                                            31, 2010
                                            -----------
  Income before income taxes, as reported       $ 4,371
  Adjustments:
     Inventory Rationalization                      859
     Separation of Former CEO                     2,587
     SG&A Rationalization                         1,215
                                            -----------
  Income before incomes taxes excluding
   charges                                        9,032
  Provision for income taxes                      3,543
                                            -----------

  Net income, excluding charges                 $ 5,489
                                            ===========
  Diluted net income per common share              0.22

  Diluted weighted average shares
   outstanding                                   25,145
  NOTE: Items identified in the above
   table are not in accordance with, or an
   alternative method for, generally
   accepted accounting principles (GAAP)
   in the United States. These items
   should not be reviewed in isolation or
   considered substitutes of the Company's
   financial results as reported in
   accordance with GAAP. Due to the nature
   of these items, it is important to
   identify these items and to review them
   in conjunction with the Company's
   financial results reported in
   accordance with GAAP. The exclusion of
   these items also allows investors to
   compare results of operations in the
   current period to prior period's
   results based on the Company's
   fundamental business performance.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Aceto Corporation

CONTACT:  Aceto Corporation
Theodore Ayvas
Director of Corporate Communications & Investor Relations
(516) 627-6000
www.aceto.com

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX


top