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ACETO Reports Fiscal 2013 Second Quarter Results

ACETO Reports Fiscal 2013 Second Quarter Results

FISCAL 2013 SECOND QUARTER HIGHLIGHTS (Comparisons to FY 2012 Q2):

  *Net sales increased 2.9% to $114.0 million, from $110.7 million
  *Gross profit of $20.7 million, in line with a year ago
  *Net income of $4.5 million, in line with a year ago
  *EPS of $0.17, in line with a year ago

PORT WASHINGTON, N.Y., Feb. 7, 2013 (GLOBE NEWSWIRE) -- ACETO Corporation
(Nasdaq:ACET), a global leader in the marketing, sale and distribution of
products for Human Health, Pharmaceutical Ingredients and Performance
Chemicals, announced today results of operations for its fiscal 2013 second
quarter and six months ended December 31, 2012.

Sal Guccione, Chief Executive Officer of ACETO, stated, "We are pleased with
our results for the first six months of fiscal 2013, with sales up 6.5% and
earnings per share up 9.7% on an adjusted basis. These results reflect the
continued execution of our strategies across our three business segments. Our
fiscal second quarter results, with sales up 2.9% and relatively flat net
income, reflect the variability of our order stream, which had some
acceleration in our fiscal first quarter, particularly in the Performance
Chemicals segment."

"In the fiscal second quarter, sales within the Human Health segment increased
9.3%, driven by continued strength in Rising Pharmaceuticals. We have already
launched six new generic drug products in this fiscal year, with four in this
quarter, including the launch of our first authorized generic drug. With a
robust product pipeline, we anticipate that new product launches will continue
to be a key growth driver in this segment and expect to launch three new
products during the second half of fiscal 2013. Sales in Pharmaceutical
Ingredients increased 2.9% in the current quarter, while the Performance
Chemicals segment experienced a 1.0% decline in sales, reflecting the
favorable order pattern experienced in the first quarter of fiscal 2013.

"Looking at the balance of the year, we remain well positioned for continued
growth in sales and profitability. As we have discussed previously, our
business is difficult to forecast on a quarterly basis due to the timing, size
and nature of our orders. In particular, looking at our upcoming fiscal third
quarter, we expect, based upon business to date within the Pharmaceutical
Ingredients segment, to report fiscal third quarter earnings per share
significantly beyond those reported in either of our fiscal first or second
quarters of this year," concluded Mr. Guccione.

FINANCIAL REVIEW

Net sales for the fiscal 2013 second quarter ended December 31, 2012 were
$114.0 million, a 2.9% increase from $110.7 million for the fiscal 2012 second
quarter. Gross profit for the fiscal 2013 second quarter was $20.7 million, in
line with gross profit of $20.6 million in the prior year period. For the
fiscal 2013 second quarter, ACETO reported net income of $4.5 million, or
$0.17 per diluted share, compared to $4.6 million, or $0.17 per diluted share,
in the prior year period.

Net sales for the six month period ended December 31, 2012 were $225.7
million, a 6.5% increase from $212.0 million for the six month period ended
December 31, 2011. Gross profit for the fiscal 2013 six months was $42.2
million, an increase of 7.8% compared to gross profit of $39.2 million in the
prior year period. For the six month period ended December 31, 2012, ACETO
reported net income of $9.3 million, or $0.34 per diluted share, compared to
$7.6 million, or $0.29 per diluted share, in the prior year period. Net income
in the six month period ended December 31, 2012 increased by 22.5% and
earnings per share increased by 17.2% compared to the comparable fiscal 2012
period. The fiscal 2012 six month period was negatively impacted by a one-time
charge relating to the separation of certain executive management employees.
After adjusting for the one-time charges, ACETO's net income for the six
months ended December 31, 2011 was $8.2 million, or $0.31 per diluted share.

CONFERENCE CALL

Salvatore Guccione, Ronald Gold, and Douglas Roth will conduct a conference
call at 9:00 a.m. ET on February 8, 2013 to discuss the operating results for
the fiscal 2013 second quarter. Interested parties may participate in the call
by dialing 888-895-5271 (847-619-6547 for international callers) – please call
in 10 minutes before the call is scheduled to begin, and ask for the ACETO
call (conference ID # 34143032). The conference call will also be webcast live
via the Investor Relations section of our 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, February 8, 2013 until 5:00 p.m. ET on
Monday, February 11, 2013. Dial 888-843-7419 (630-652-3042 for international
callers) and enter the code 34143032 for the phone replay.

ABOUT ACETO

ACETO Corporation, incorporated in 1947, is a global leader in the marketing,
sale and distribution of products for Human Health (finished dosage form
generics and nutraceutical products), Pharmaceutical Ingredients
(pharmaceutical intermediates and active pharmaceutical ingredients) and
Performance Chemicals (specialty chemicals and agricultural protection
products). With business operations in nine countries, ACETO distributes over
1,100 chemical compounds used principally as finished products or raw
materials in the pharmaceutical, nutraceutical, agricultural, coatings and
industrial chemical industries. ACETO's global operations, including a staff
of 26 in China and 12 in India, are distinctive in the industry and enable its
worldwide sourcing and regulatory capabilities.

The ACETO Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13058

FORWARD LOOKING STATEMENTS

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 a projection 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, which 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, 2012 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 and Subsidiaries                                 
Consolidated Statements of Income                                  
(in thousands, except per share amounts)                           
                                                                
                                                                
                                  (unaudited)           (unaudited)
                                  Three Months Ended    Six Months Ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
Net sales                          $ 113,956 $110,707 $225,704 $212,024
Cost of sales                      93,248    90,063    183,491   172,861
Gross profit                       20,708    20,644    42,213    39,163
Gross profit %                     18.17%     18.65%     18.70%     18.47%
                                                                
Selling, general and               14,096    13,528    27,988    27,097
administrative expenses
Operating income                   6,612     7,116     14,225    12,066
                                                                
Other income (expense), net of     486       48        495       (163)
interest expense
                                                                
Income before income taxes         7,098     7,164     14,720    11,903
Income tax provision               2,585     2,576     5,387     4,282
Net income                         $4,513   $4,588   $9,333   $7,621
                                                                
Net income per common share        $0.17    $0.17    $0.35    $0.29
                                                                
Diluted net income per common      $0.17    $0.17    $0.34    $0.29
share
                                                                
Weighted average shares                                          
outstanding:
Basic                              26,959    26,565    26,882    26,520
Diluted                            27,316    26,737    27,272    26,686
                                                                

                                                               
ACETO Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per-share amounts)
                                                               
                                              December 31, 2012 June 30, 2012
                                              (unaudited)       
                                                               
Assets                                                          
Current Assets:                                                 
Cash and cash equivalents                      $25,326         $24,862
Investments                                    1,549            1,518
Trade receivables: less allowances for
doubtful accounts: Dec. 31, 2012 $880; and     77,918           74,744
June 30, 2012 $887
Other receivables                              3,982            2,979
Inventory                                      97,373           84,687
Prepaid expenses and other current assets      2,314            2,231
Deferred income tax asset, net                 1,027            948
                                                               
Total current assets                           209,489          191,969
                                                               
                                                               
Property and equipment, net                    11,848           11,705
Property held for sale                         3,752            3,752
Goodwill                                       33,541           33,495
Intangible assets, net                         42,475           45,251
Deferred income tax asset, net                 4,695            4,719
Other assets                                   9,647            8,389
                                                               
Total Assets                                   $315,447        $299,280
                                                               
Liabilities and Shareholders' Equity                            
                                                               
Current liabilities:                                            
Current portion of long-term debt              $7,197          $6,713
Accounts payable                               43,982           42,007
Accrued expenses                               26,973           24,921
Total current liabilities                      78,152           73,641
                                                               
Long-term debt                                 40,454           39,052
Long-term liabilities                          12,475           12,943
Environmental remediation liability            5,096            5,633
Deferred income tax liability                  9                8
Total liabilities                              136,186          131,277
                                                               
Commitments and contingencies                                   
                                                               
Shareholders' equity:                                           
Common stock, $.01 par value:                                   
(40,000 shares authorized; 27,297 and 26,937
shares issued and outstanding at Dec. 31, 2012 273              269
andJune 30, 2012, respectively)
Capital in excess of par value                 66,625           64,071
Retained earnings                              108,680          102,344
Accumulated other comprehensive income         3,683            1,319
Total shareholders' equity                     179,261          168,003
                                                               
Total liabilities and shareholders' equity     $315,447        $299,280
                                                               

                                                             
ACETO Corporation
Diluted Net Income Per Common Share Excluding Charges (Non-GAAP
Reconciliation)
(in thousands, except per share amounts)
                                                             
                                      (unaudited)                (unaudited)
                         (unaudited)  Diluted Net   (unaudited)  Diluted Net
                         Six Months   Income Per    Six Months   Income Per
                        Ended        Common Share  Ended        Common Share
                         December 31, Six Months    December 31, Six Months
                         2012         Ended         2011         Ended
                                      December 31,               December 31,
                                      2012                       2011
                                                             
Net income, as reported  $9,333       $0.34       $7,621       $0.29
                                                             
Adjustments:                                                  
Separation charges       --         --          884         0.03
                                                             
Adjusted income          9,333       0.34          8,505       0.32
excluding charges
Adjustments to provision --         --          345         0.01
for income taxes
                                                             
Adjusted net income      $9,333     $0.34       $8,160     $0.31
(Non-GAAP)
                                                             
Diluted weighted average 27,272       27,272        26,686       26,686
shares outstanding
                                                             
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 and analyze
the operating trends of
the business. The
exclusion of these items
also allows management
to evaluate performance
of its business units.

CONTACT: Investor Relations Contact:
         Amy Glynn
         The Ruth Group
         (646) 536-7023
         aglynn@theruthgroup.com

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