Cambrex Reports Fourth Quarter And Full Year 2012 Financial Results

     Cambrex Reports Fourth Quarter And Full Year 2012 Financial Results

- Company reports strong fourth quarter and full year sales and profit growth;
continued growth expected in 2013 -

- Company to host conference call at 8:30 a.m. ET on February 7, 2013 -

PR Newswire

EAST RUTHERFORD, N.J., Feb. 6, 2013

EAST RUTHERFORD, N.J., Feb. 6, 2013 /PRNewswire/ --Cambrex Corporation (NYSE:
CBM) reports results for the fourth quarter and full year ended December 31,
2012.

Highlights

-Fourth quarter sales increased by 4.8% and excluding the impact of foreign
currency, sales increased 5.7% compared to the fourth quarter of 2011. Full
year sales increased by 9.2% and increased 12.6% excluding the impact of
foreign currency.

-Fourth quarter EBITDA increased 12.4% to $13.1 million compared to $11.6
million in the fourth quarter of 2011. Full year EBITDA increased 22.4% to
$57.5 million compared to $46.9 million in 2011.

-Debt, net of cash was $40.4 million at the end of the fourth quarter, an
increase of $6.0 million during the quarter. Debt, net of cash, improved
$25.6 million for the full year 2012.

-2013 sales are expected to increase 8% to 12% compared to 2012, excluding
the impact of foreign currency, and EBITDA is expected to increase 8% to 18%
to between $62 and $68 million.

"We are pleased with our strong financial results for both the fourth quarter
and full year 2012, and look forward to an even stronger 2013," commented
Steven M. Klosk, President and Chief Executive Officer of Cambrex. "Sales
increased across all key product categories and EBITDA and cash generation
improved significantly year over year.

"We expect 2013 to be our third consecutive year of increased sales and EBITDA
and we will be making important capital investments to support continued
growth, including a large Phase 3 supply agreement signed during 2012 as well
as initiatives in other important product categories. We continue to be
positive about the overall market trends and momentum we see for the business
in the current year."

Fourth Quarter 2012 Operating Results – Continuing Operations

Sales of $70.4 million were 4.8% higher compared to the same period last year,
including the unfavorable impact of foreign exchange of 0.9%. This increase
was primarily due to increased demand for certain custom manufacturing
products partially offset by lower pricing of certain products.

Gross margins increased to 30.0% from 29.4%, including an unfavorable impact
of foreign exchange of 0.2% compared to the same period last year. This
increase is due to higher volumes and favorable product mix partially offset
by lower pricing.

Selling, general and administrative expenses were $11.4 million compared to
$11.1 million in the same period last year.

Research and development ("R&D") expenses were $2.2 million compared to $2.8
million in the same period last year. The decrease was primarily due to
increased absorption of R&D expenses into inventory and cost of goods sold due
to higher custom development activity.

Operating profit was $7.4 million compared to $5.8 million in the same period
last year. The increase was primarily the result of higher gross profit.
EBITDA was $13.1 million, compared to $11.6 million in the same period last
year.

Net interest expense was $0.5 compared to $0.6 million in the same period last
year. Higher interest rates were offset by lower average debt. The average
interest rate on debt was 2.4% compared to 1.8% in the same period last year.

Equity in losses of partially-owned affiliates was flat at $0.5 million
compared to the same period last year for the Company's 51% share in Zenara
Pharma ("Zenara"), a pharmaceutical company focused on the formulation of
finished dosage form products. The Company's share of Zenara's losses
includes $0.2 million and $0.3 million of non-cash amortization expense in the
fourth quarters of 2012 and 2011, respectively.

The provision for income taxes for the quarter was a benefit of $37.9
million. Fourth quarter tax expense includes a benefit of $36.3 million
related to a reversal of valuation allowances previously recorded against
domestic deferred tax assets. This reversal is a result of the Company's
expectation of future profitability in the U.S., among other factors. Tax
expense for the quarter was also positively impacted by $1.3 million related
to the impact on deferred taxes of a statutory rate change at one of our
sites, $0.6 million related to the reversal of certain tax reserves and $1.2
million resulting primarily from changes in the geographic mix of income
versus earlier estimates.

Income from continuing operations for the fourth quarter of 2012 was $44.2
million or $1.44 per share compared to $3.0 million or $0.10 per share in the
same period last year. Fourth quarter 2012 results include a tax benefit of
$36.3 million, or $1.18 per share, resulting from the release of a valuation
allowance on deferred tax assets discussed above.

Capital expenditures and depreciation for the fourth quarter of 2012 were
$17.2 million and $5.6 million, respectively, compared to $5.6 million and
$5.7 million in the same period last year, respectively. The increase in
capital expenditures in the quarter was primarily driven by a previously
announced expansion of the Company's large scale manufacturing capacity to
support an agreement signed during 2012 to provide Phase 3 and commercial
launch materials for a customer and expected growth in the business.

Financial Expectations – Continuing Operations

The Company currently expects that full year 2013 sales, excluding the impact
of foreign currency, will increase between 8% and 12% over 2012, and that full
year 2013 EBITDA will be between $62 and $68 million, an increase of 8% to 18%
over 2012. While the Company does not expect to pay cash taxes in the U.S.
for the next few years, the Company will record tax expense on U.S. income for
the first time in several years beginning in 2013. The Company estimates that
its 2013 consolidated effective tax rate will be between 32% and 38%. The tax
rate will be sensitive to the geographic mix of income and quarterly effective
tax rates may be volatile.

Capital expenditures are expected to be approximately $36 to $40 million and
depreciation is expected to be $22 to $24 million in 2013.

These financial expectations are for continuing operations and exclude the
impact of any potential M&A, restructuring activities and outcomes of tax
disputes, and do not reflect the Company's stake in Zenara, which is accounted
for using the equity method, and as such is not consolidated into the
Company's results.

The financial information contained in this press release is unaudited,
subject to revision and should not be considered final until the Company's
2012 Form 10-K is filed with the SEC.

Conference Call and Webcast

A conference call to discuss the Company's fourth quarter and full year 2012
results will begin at 8:30 a.m. Eastern Time on Thursday, February 7, 2013 and
last approximately 45 minutes. Those wishing to participate should call
1-800-723-6604 for domestic and +785-830-7977 for international. Please use
the pass code 6398974 and call approximately 10 minutes prior to start time.
A webcast will be available on the Investors section on the Cambrex website
located at www.cambrex.com. A telephone replay of the conference call will be
available through Thursday, February 14, 2013 by calling 1-888-203-1112 for
domestic and +1-719-457-0820 for international. Please use the pass code
6398974 to access the replay.

Forward Looking Statements

This document contains "forward-looking statements," including statements
regarding expected performance, especially those set forth under the heading
"Financial Expectations – Continuing Operations," including the Company's
expectation that full year 2013 sales, excluding the impact of foreign
currency, will increase between 8% and 12% versus 2012, that full year 2013
EBITDA will be between $62 and $68 million, that capital expenditures will be
approximately $36 to $40 million and that depreciation will be $22 to $24
million in 2013. These and other forward looking statements may be identified
by the fact that they use words such as "expects," "anticipates," "intends,"
"estimates," "believes" or similar expressions. Any forward-looking
statements contained herein are based on current plans and expectations and
involve risks and uncertainties that could cause actual outcomes and results
to differ materially from current expectations. The factors described in Item
1A of Part I of the Company's Annual Report on Form 10-K for the period ended
December 31, 2011, captioned "Risk Factors," or otherwise described in the
Company's filings with the SEC, as well as any cautionary language in the
Company's Annual Report on Form 10-K for the period ended December 31, 2011,
provide examples of such risks and uncertainties that may cause the Company's
actual results to differ materially from the expectations the Company
describes in its forward-looking statements, including, but not limited to,
pharmaceutical outsourcing trends, competitive pricing or product
developments, governmental legislation and regulations (particularly
environmental issues), tax rate, interest rate, technology, manufacturing and
legal issues, including the outcome of outstanding litigation disclosed in the
Company's public filings, changes in foreign exchange rates, uncollectible
receivables, loss on disposition of assets, cancellations or delays in renewal
of contracts, lack of suitable raw materials or packaging materials, and the
Company's ability to receive regulatory approvals for its products, as well as
risks relating to a Phase 3 supply agreement signed during the third quarter
of 2012 including that the Company will expend significant resources to expand
its manufacturing facilities without any assurance that the new agreement will
generate any revenue beyond revenue that would be earned under termination
provisions within the agreement, that the customer's product candidate will be
successful in Phase 3 trials or obtain the necessary regulatory approvals to
commercialize the product candidate, that the customer's Phase 3 program will
not be terminated early, that anticipated quantities will not be meaningfully
reduced, that the planned Phase 3 and pre-launch activities will proceed on
the timeline anticipated, if at all, that the Company's expansion will proceed
on the anticipated timeline without disruption to existing customers or our
new customer and without disruption to the Company's and its customers'
ability to meet key product delivery milestones.

For further details and a discussion of these and other risks and
uncertainties, investors are encouraged to review the Cambrex Annual Report on
Form 10-K for the fiscal year ended December 31, 2011 and when it becomes
available, for the fiscal year ended December 31, 2012, including the
Forward-Looking Statement sections therein, and other filings with the SEC.
We caution investors and potential investors not to place significant reliance
on the forward-looking statements contained in this press release and to give
careful consideration to the risks and uncertainties listed above and
contained in our SEC filings. The forward-looking statements in this press
release speak only as of the date of this document, and we undertake no
obligation to update or revise any of these statements.

Use of Non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure, which the Company defines as operating
profit plus depreciation and amortization expense. Other companies may have a
different definition of EBITDA and, therefore, EBITDA may not be comparable
with non-GAAP financial measures provided by other companies. EBITDA should
not be considered an alternative to measurements required by U.S. GAAP, such
as net income or operating profit, and should not be considered a measure of
Cambrex's liquidity. Cambrex uses EBITDA as one of several metrics to assess
and analyze its operational results and trends. Cambrex also believes it is
useful to investors because it is a common operating performance metric as
well as a metric routinely used to assess potential enterprise value. Cambrex
has provided a reconciliation from U.S. GAAP amounts to non-GAAP amounts at
the end of this press release.

About Cambrex

Cambrex Corporation is an innovative life sciences company that provides
products, services and technologies to accelerate the development and
commercialization of small molecule therapeutics. The Company offers Active
Pharmaceutical Ingredients ("APIs"), advanced intermediates and enhanced drug
delivery products for branded and generic pharmaceuticals. Development and
manufacturing capabilities include enzymatic biotransformations, high potency
APIs, high energy chemical synthesis, controlled substances and formulation of
finished dosage form products. For more information, please visit
www.cambrex.com. 

CAMBREX CORPORATION
Statements of Profit and Loss
For the Quarters Ended December 31, 2012 and 2011
(in thousands, except per-share data)
                                         2012                 2011
                                                     % of                % of
                                         Amount      Sales    Amount     Sales
Gross Sales                            $ 70,389             $ 67,134
 Commissions, Allowances and         731                  550
Rebates
Net Sales                                69,658               66,584
 Other                               272                  947
Net Revenues                             69,930               67,531
 Cost of Goods Sold                  48,847      69.4%    47,788     71.2%
Gross Profit                             21,083      30.0%    19,743     29.4%
Operating Expenses
 Selling, General and                11,419      16.2%    11,130     16.6%
Administrative Expenses
 Research and Development Expenses   2,247       3.2%     2,790      4.2%
Total Operating Expenses                 13,666      19.4%    13,920     20.7%
Operating Profit                         7,417       10.5%    5,823      8.7%
Other Expenses:
 Interest Expense, net               534                  631
 Other Expenses, net                 26                   160
 Equity in Losses of                 545                  457
Partially-Owned Affiliates
Income Before Income Taxes               6,312       9.0%     4,575      6.8%
 (Benefit)/Provision for Income      (37,930)             1,546
Taxes
Income from Continuing Operations      $ 44,242      62.9%  $ 3,029      4.5%
Loss from Discontinued Operations, Net   (594)                (2,288)
of Tax
Net Income                             $ 43,648      62.0%  $ 741        1.1%
Basic Earnings/(Loss) per Share of
Common Stock:
 Income from Continuing Operations     $   1.48           $  0.10
 Loss from Discontinued Operations,    $  (0.02)           $ (0.07)
Net of Tax
 Net Income                            $   1.46           $  0.03
Diluted Earnings/(Loss) per Share of
Common Stock:
 Income from Continuing Operations     $   1.44           $  0.10
 Loss from Discontinued Operations,    $  (0.02)           $ (0.08)
Net of Tax
 Net Income                            $   1.42           $  0.02
Weighted Average Shares Outstanding
 Basic                               29,874               29,520
 Diluted                             30,717               29,711

CAMBREX CORPORATION
Statements of Profit and Loss
For the Twelve Months Ended December 31, 2012 and 2011
(in thousands, except per-share data)
                                      2012                  2011
                                                   % of                  % of
                                      Amount       Sales    Amount       Sales
Gross Sales                         $ 277,931             $ 254,475
 Commissions, Allowances and      2,503                 1,776
Rebates
Net Sales                             275,428               252,699
 Other                            1,073                 2,954
Net Revenues                          276,501               255,653
 Cost of Goods Sold               186,014      66.9%    181,569      71.4%
Gross Profit                          90,487       32.6%    74,084       29.1%
Operating Expenses
 Selling, General and             45,248       16.3%    39,227       15.4%
Administrative Expenses
 Research and Development         9,544        3.4%     11,037       4.3%
Expenses
Total Operating Expenses              54,792       19.7%    50,264       19.8%
Operating Profit                      35,695       12.8%    23,820       9.4%
Other Expenses/(Income):
 Interest Expense, net            2,439                 2,373
 Other Expenses/(Income), net     122                   (111)
 Equity in Losses of              1,766                 1,621
Partially-Owned Affiliates
Income Before Income Taxes            31,368       11.3%    19,937       7.8%
 (Benefit)/Provision for Income   (31,861)              6,202
Taxes
Income from Continuing Operations   $ 63,229       22.7%  $ 13,735       5.4%
Loss from Discontinued Operations,    (926)                 (2,767)
Net of Tax
Net Income                          $ 62,303       22.4%  $ 10,968       4.3%
Basic Earnings/(Loss) per Share of
Common Stock:
 Income from Continuing             $   2.13           $   0.46
Operations
 Loss from Discontinued             $  (0.03)           $  (0.09)
Operations, Net of Tax
 Net Income                         $   2.10           $   0.37
Diluted Earnings/(Loss) per Share
of Common Stock:
 Income from Continuing             $   2.09           $   0.46
Operations
 Loss from Discontinued             $  (0.03)           $  (0.09)
Operations, Net of Tax
 Net Income                         $   2.06           $   0.37
Weighted Average Shares Outstanding
 Basic                            29,703                29,468
 Diluted                          30,314                29,564

CAMBREX CORPORATION
Consolidated Balance Sheets
As of December 31, 2012 and 2011
(in thousands)
                                                  December 31,    December 31,
Assets                                            2012            2011
Cash and Cash Equivalents                       $ 23,551        $ 31,921
Trade Receivables, net                            43,094          36,510
Inventories, net                                  71,221          62,095
Prepaid Expenses and Other Current Assets         6,104           6,083
 Total Current Assets                            143,970         136,609
Property, Plant and Equipment, net                151,815         139,628
Goodwill                                          37,312          36,731
Intangible Assets, net                            4,091           4,261
Investments in and Advances to Partially-Owned    15,094          15,090
Affiliates
Deferred Income Taxes                             39,262          7,087
Other Non-Current Assets                          2,924           3,425
 Total Assets                                  $ 394,468       $ 342,831
Liabilities and Stockholders' Equity
Accounts Payable                                $ 27,612        $ 21,200
Deferred Revenue                                  11,570          1,060
Accrued Expenses and Other Current Liabilities    43,844          36,873
 Total Current Liabilities                       83,026          59,133
Long-Term Debt                                    64,000          98,000
Deferred Income Taxes                             18,577          23,330
Accrued Pension Benefits                          55,373          52,089
Other Non-Current Liabilities                     10,195          9,938
 Total Liabilities                             $ 231,171       $ 242,490
 Stockholders' Equity                          $ 163,297       $ 100,341
 Total Liabilities and Stockholders' Equity    $ 394,468       $ 342,831

CAMBREX CORPORATION
Reconciliation of EBITDA
For the Quarters and Twelve Months Ended December 31, 2012 and 2011
(in thousands)
                              Fourth Quarter 2012   Fourth Quarter 2011
Operating Profit              $       7,417         $       5,823
Depreciation and Amortization         5,641                 5,799
EBITDA                        $       13,058        $       11,622
                              Twelve Months 2012    Twelve Months 2011
Operating Profit              $       35,695        $       23,820
Depreciation and Amortization         21,775                23,120
EBITDA                        $       57,470        $       46,940

SOURCE Cambrex Corporation

Website: http://www.cambrex.com
Contact: Gregory P. Sargen, Executive Vice President & CFO, +1-201-804-3055,
gregory.sargen@cambrex.com