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American Pacific Reports Fiscal 2013 Second Quarter Results; Increases Full Year Guidance

 American Pacific Reports Fiscal 2013 Second Quarter Results; Increases Full
                                Year Guidance

PR Newswire

LAS VEGAS, May 9, 2013

LAS VEGAS, May 9, 2013 /PRNewswire/ -- American Pacific Corporation (NASDAQ:
APFC) today reported financial results for its second quarter ended March 31,
2013.

FINANCIAL SUMMARY

Quarter Ended March 31, 2013 Compared to Quarter Ended March 31, 2012

  oRevenues increased 25% to $50.0 million compared to $39.9 million.
  oOperating income was consistent at $4.8 million.
  oAdjusted EBITDA was $8.1 million compared to $8.3 million.
  oIncome from continuing operations improved to $2.8 million compared to
    $1.2 million.
  oDiluted earnings per share from continuing operations increased to $0.34
    compared to $0.16.

Six Months Ended March 31, 2013 Compared to Six Months Ended March 31, 2012

  oRevenues increased 10% to $86.4 million compared to $78.4 million.
  oOperating income increased 30% to $9.8 million compared to $7.6 million.
  oAdjusted EBITDA was $16.6 million compared to $14.7 million.
  oIncome from continuing operations improved to $3.9 million compared to
    $1.3 million.
  oDiluted earnings per share from continuing operations increased to $0.49
    compared to $0.17.

CONSOLIDATED RESULTS OF OPERATIONS

Revenues – For our Fiscal 2013 second quarter, revenues increased 25% to $50.0
million compared to $39.9 million for the Fiscal 2012 second quarter. For the
six months ended March 31, 2013, revenues increased 10% to $86.4 million
compared to $78.4 million for the prior year six-month period. The increases
are supported by growth from our Fine Chemicals segment, offset partially by
the inter-quarter timing of Specialty Chemicals segment revenues. See further
discussion below under Segment Highlights.

Cost of Revenues and Gross Profit – Fiscal 2013 second quarter cost of
revenues was $34.2 million compared to $26.3 million for the Fiscal 2012
second quarter. The Fiscal 2013 second quarter consolidated gross margin
decreased to 32% compared to 34% for the Fiscal 2012 second quarter. The
Fiscal 2013 six-month period cost of revenues was $55.1 million compared to
$52.6 million for the Fiscal 2012 six-month period. The Fiscal 2013 six-month
period consolidated gross margin was 36% compared to 33% for the Fiscal 2012
six-month period. Fine Chemicals segment gross margin improved significantly
in each of the Fiscal 2013 periods. However, for the Fiscal 2013 second
quarter, Fine Chemicals comprised a larger percentage of our consolidated
business which resulted in the consolidated gross margin decline. On a
consolidated level, one of the most significant factors that affects, and
should continue to affect, the comparison of our consolidated gross profit and
gross margin from period to period is the change in revenue mix among our
segments. The revenue contribution by each of our segments is indicated in the
following table.



                    Quarter Ended March 31, Six Months Ended March 31,
                    2013         2012         2013           2012
Fine Chemicals      74%          51%          68%            54%
Specialty Chemicals 24%          48%          30%            42%
Other Businesses    2%           1%           2%             4%
Total Revenues      100%         100%         100%           100%



See further discussion of gross profit and gross margin at the segment levels
under the heading Segment Highlights.

Operating Expenses – For our Fiscal 2013 second quarter, operating expenses
were $11.0 million compared to $8.8 million for the Fiscal 2012 second
quarter. For our Fiscal 2013 six-month period, operating expenses were $21.5
million compared to $18.3 million for the Fiscal 2012 six-month period. The
most significant components of the six-month period increase were
approximately $2.2 million for accrued incentive compensation, approximately
$0.6 million for increased costs from our defined benefit retirement plans,
and approximately $0.3 million for corporate shareholder matters. The increase
in incentive compensation occurred primarily due to the timing of incentive
compensation accruals. Strong operating performance in the first half of
Fiscal 2013 has resulted in incentive-based compensation costs of
approximately $1.6 million being recorded earlier in this fiscal year than in
the prior fiscal year.

SEGMENT HIGHLIGHTS

Fine Chemicals Segment

Our Fine Chemicals segment reflects the operating results of our wholly-owned
subsidiaries Ampac Fine Chemicals LLC and AMPAC Fine Chemicals Texas, LLC
(collectively, "AFC").

Quarter Ended March 31, 2013 Compared to Quarter Ended March 31, 2012

  oRevenues increased to $37.3 million compared to $20.6 million.
  oOperating income was $3.8 million compared to an operating loss of $1.0
    million.
  oSegment EBITDA was $6.6 million compared to $2.0 million.

Six Months Ended March 31, 2013 Compared to Six Months Ended March 31, 2012

  oRevenues increased to $58.6 million compared to $42.1 million.
  oOperating income was $5.0 million compared to an operating loss of $2.2
    million.
  oSegment EBITDA was $10.9 million compared to $3.8 million.

Fine Chemicals segment revenues increased 81% and 39% for the Fiscal 2013
second quarter and six-month period, respectively, each compared to the
corresponding Fiscal 2012 periods. Oncology product revenues increased in both
the Fiscal 2013 second quarter and the six-month period, supported by revenues
from new oncology products for drugs that were commercialized in the later
part of Fiscal 2012. The Fiscal 2013 second quarter also includes increases
from the anti-viral, central nervous systems and development product groups.
These increases are substantially due to inter-quarter timing when compared to
the prior fiscal year. 

The Fine Chemicals segment reported operating income of $3.8 million for the
Fiscal 2013 second quarter compared to an operating loss of $1.0 million for
the Fiscal 2012 second quarter. The improvement includes a ten percentage
point increase in gross margin, offset partially by increased operating
expenses. Fine Chemicals segment operating income for the Fiscal 2013
six-month period was $5.0 million compared to a loss of $2.2 million for the
six-month period in the prior fiscal year. For the Fiscal 2013 six-month
period, the gross margin percentage increased twelve percentage points. Gross
margin improvements reflect significant improvements in manufacturing
operations, as well as better contractual pricing on certain core products.
Our Fine Chemicals segment has dedicated significant efforts over the last two
fiscal years to improving the efficiency of its manufacturing activities.
Redesigned key processes continued to yield targeted throughput ranges during
the Fiscal 2013 periods. In contrast, during the Fiscal 2012 periods, the
Fine Chemicals segment had not yet achieved the benefits of these
improvements.

Fine Chemicals operating expenses increased in the Fiscal 2013 periods
primarily due to the timing of incentive compensation accruals. Strong
operating performance in the first half of Fiscal 2013 has resulted in
incentive-based compensation costs being recorded earlier in this fiscal year
than in the prior fiscal year.

Specialty Chemicals Segment

Our Specialty Chemicals segment revenues include the operating results from
our perchlorate, sodium azide and Halotron product lines, with our perchlorate
product lines comprising 83% and 87% of Specialty Chemicals segment revenues
in the Fiscal 2013 and 2012 six-month periods, respectively.

Quarter Ended March 31, 2013 Compared to Quarter Ended March 31, 2012

  oRevenues were $11.9 million compared to $19.0 million.
  oOperating income was $5.2 million compared to $9.3 million.
  oSegment EBITDA was $5.3 million compared to $9.7 million.

Six Months Ended March 31, 2013 Compared to Six Months Ended March 31, 2012

  oRevenues were $26.3 million compared to $33.2 million.
  oOperating income was $13.1 million compared to $16.9 million.
  oSegment EBITDA was $13.5 million compared to $17.6 million.

Specialty Chemicals segment revenues of $11.9 million for the Fiscal 2013
second quarter and $26.3 million for the Fiscal 2013 six-month period, reflect
decreases of 37% and 21%, respectively, as compared to the prior fiscal year
periods. The revenue variances reflect changes in inter-quarter timing of
perchlorate volume. We anticipate that Specialty Chemicals segment revenues
variances will reverse in the second half of Fiscal 2013.

The variance in Specialty Chemicals segment revenues reflects the following
factors:

  oA 30% decrease in perchlorate volume and a 20% decrease in the related
    average price per pound for the Fiscal 2013 second quarter compared to the
    Fiscal 2012 second quarter.
  oA 27% decrease in perchlorate volume and a 5% increase in the related
    average price per pound for the Fiscal 2013 six-month period compared to
    the Fiscal 2012 six-month period.
  oSodium azide revenues increased by approximately $0.3 million for the
    Fiscal 2013 second quarter and increased by $0.2 million for the Fiscal
    2013 six-month period, in each case compared to the comparable Fiscal 2012
    periods.
  oHalotron revenues were consistent for the Fiscal 2013 second quarter and
    decreased by $0.1 million for the Fiscal 2013 six-month period, in each
    case compared to the comparable Fiscal 2012 periods.

The average price per pound of perchlorates decreased in the Fiscal 2013
second quarter because lower-priced, non rocket-grade perchlorate accounted
for a larger percentage of the total perchlorate volume. Fiscal 2013 volume
was predominately strategic and tactical missile programs. Both space
programs and tactical missile programs had strong volume during the Fiscal
2012 periods.

The decreases in Specialty Chemicals segment operating income for the Fiscal
2013 periods are consistent with the associated revenue decreases. As a
percentage of revenues, operating margins declined to 44% in the Fiscal 2013
second quarter and declined to 50% in the Fiscal 2013 six-month period,
compared to 49% and 51%, respectively, for the corresponding prior fiscal year
periods. The decreases occurred because the lower volume provided less gross
profit to offset the consistent general and administrative expenses.
Specialty Chemicals segment gross margins were consistent for the periods
presented.

CAPITAL AND LIQUIDITY HIGHLIGHTS

Liquidity – As of March 31, 2013, we had cash balances of $26.7 million and no
borrowings against our revolving credit facility.

Operating Cash Flows – Operating activities provided cash of $8.6 million for
the Fiscal 2013 six-month period compared to a use of cash of $6.8 million for
the prior fiscal year six-month period, an improvement of $15.4 million.

Significant components of the change in cash flow from operating activities
include:

  oAn increase in cash due to the improvement in cash profits provided by our
    operations of approximately $1.9 million.
  oAn improvement in cash provided by working capital accounts of
    approximately $14.4 million, excluding the effects of interest and income
    taxes.
  oAn increase in cash paid for income taxes of approximately $5.3 million.
  oA decrease in cash paid for interest expense of approximately $2.2
    million.
  oAn increase in cash paid for costs associated with the retirement of
    long-term debt of approximately $1.6 million.
  oA decrease in cash used to fund pension obligations of approximately $4.3
    million.
  oOther increases in cash used by operating activities of approximately $0.5
    million.

The improvement in working capital cash flow reflects additional customer
deposits received by our Specialty Chemicals segment in the Fiscal 2013 second
quarter.

Cash paid for income taxes increased because our federal operating loss
carryforwards were fully utilized in Fiscal 2012. Accordingly, we expect to
pay cash taxes in Fiscal 2013.

Cash paid for interest in the Fiscal 2013 six-month period decreased as
compared to the Fiscal 2012 six-month period reflecting both lower outstanding
debt balances and lower interest rates that resulted from our refinancing in
October 2012. Also in connection with the October 2012 refinancing, we
incurred cash redemption costs of approximately $1.6 million comprised
primarily of the call premium to redeem the senior notes.

We make payments to fund defined benefit pension obligations at a level of at
least 80% of the obligation. Our contributions were reduced in the Fiscal
2013 six-month period, as compared to the Fiscal 2012 six-month period,
primarily due to improved plan asset returns in Fiscal 2012. In Fiscal 2012,
we made additional contributions to our pension plans because the return on
pension plan assets in the preceding year was not sufficient to maintain our
target funding requirements.

Investing Cash Flows – Capital expenditures in the Fiscal 2013 six-month
period were $5.9 million compared to $2.4 million for the Fiscal 2012
six-month period. The increase primarily relates to Fiscal 2013 projects that
will provide additional mid-scale capacity for our Fine Chemicals segment.

Financing Cash Flows – For our Fiscal 2013 six-month period financing
activities used cash of $7.2 million compared to a use of cash of $0.04
million for the Fiscal 2012 six-month period. The Fiscal 2013 six-month
period amount includes a reduction in our long-term debt of $5.0 million and
debt issuance costs of approximately $1.4 million, each incurred in connection
with our October 2012 refinancing activities. Subsequent to our October 2012
refinancing, we also made scheduled principal payments for our new term loan
in the amount of $2.3 million.

OUTLOOK

Based on our performance this fiscal year to date, which includes existing
backlog, anticipated orders and manufacturing efficiencies that are improved
from our prior expectations, we are increasing our guidance for Fiscal 2013.
We expect consolidated revenues of at least $205.0 million and Adjusted EBITDA
of at least $47.0 million. We are anticipating our capital expenditures, which
do not include environmental remediation spending, for Fiscal 2013 to be
approximately $14.0 million.

Our Fiscal 2013 guidance for Adjusted EBITDA is computed by adding estimated
amounts for depreciation and amortization of $13.5 million, interest expense
and refinancing costs of $5.8 million, share-based compensation expense and
other items of $1.0 million and income taxes of $9.5 million to estimated net
income of $17.2 million.

NON-GAAP FINANCIAL INFORMATION AND BASIS OF PRESENTATION

We have provided non-GAAP measures as a supplement to financial results based
on GAAP. A reconciliation of the non-GAAP measures to the most directly
comparable GAAP measures is included in the accompanying supplemental data.
Segment EBITDA is defined as segment operating income (loss) plus depreciation
and amortization. Adjusted EBITDA is defined as income (loss) from continuing
operations before income tax expense (benefit), interest expense, loss on debt
extinguishment, depreciation and amortization, share-based compensation and
environmental remediation charges (if any).

Segment EBITDA and Adjusted EBITDA are not financial measures calculated in
accordance with GAAP and should not be considered as an alternative to income
(loss) from continuing operations as performance measures. Each EBITDA
measure is presented solely as a supplemental disclosure because management
believes that each is a useful performance measure that is widely used within
the industries in which we operate. In addition, EBITDA measures are
significant measurements for covenant compliance under our credit facility.
Each EBITDA measure is not calculated in the same manner by all companies and,
accordingly, may not be an appropriate measure for comparison.

Revenues and expenses associated with our former Aerospace Equipment segment
operations, which were divested effective August 1, 2012, are presented as
discontinued operations for all periods presented.

We report our results based on a fiscal year which ends on September 30.
References to Fiscal years refer to the twelve months ended or ending
September 30 of the Fiscal year referenced.

INVESTOR TELECONFERENCE

We invite you to participate in a teleconference with our executive management
covering our Fiscal 2013 second quarter financial results. The investor
teleconference will be held Thursday, May 9, 2013, at 1:30 p.m., Pacific
Standard Time. The teleconference will include a presentation by management
followed by a question and answer session. The teleconference can be accessed
by dialing 877-261-8990 between 1:15 and 1:30 p.m., Pacific Standard Time.
Please reference passcode #34802475. As is our customary practice, a live
webcast of the teleconference is being provided by Thomson Reuters. Links to
the webcast and the earnings release are available in the Investors section of
our website at www.apfc.com, and will be available for replay until a few days
before our next quarterly investor teleconference.

RISK FACTORS/FORWARD-LOOKING STATEMENTS

The unaudited financial results included in this release are preliminary.
Statements contained in this earnings release that are not purely historical
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including without
limitation the statement regarding the impact that change in revenue mix among
our segments will have on comparisons of our consolidated gross profit and
gross margin in the future, statements regarding our expectations for product
revenues, sales volumes, working capital, interest expense, tax obligations,
and capital expenditures, statements regarding the impact of process
improvements and other efficiency and cost savings initiatives, statements
regarding the expected impact of the timing of orders, sales and production
activities on quarterly revenues, statements regarding the expected benefit of
our credit swap agreement, statements regarding the impact that principal
payments under our Credit Facility will have on our liquidity, statements
regarding our ability to focus on the growth and performance of our
pharmaceutical-related product lines following the sale of our Aerospace
Equipment segment and the statements in the "Outlook" section of this earnings
release. Words such as "expect", "anticipate", "should", "future" and similar
expressions are intended to identify forward-looking statements. The
inclusion of forward-looking statements should not be regarded as a
representation by us that any of our expectations will be achieved. Actual
results may differ materially from future results or outcomes expressed or
implied by forward-looking statements set forth in the release due to risks,
uncertainties and other important factors inherent in our business. Factors
that might cause actual results to differ include, but are not limited to, the
actual placement, timing and delivery of orders for new and/or existing
products as well as the following:

  oWe depend on a limited number of customers for most of our sales and the
    loss of one or more of these customers could have a material adverse
    effect on our financial position, results of operations and cash flows.
  oThe inherent limitations of our fixed-price or similar contracts on our
    profitability.
  oThe numerous and often complex laws and regulations and regulatory
    oversight to which our operations and properties are subject, the cost of
    compliance, and the effect of any failure to comply on our profitability
    and liquidity.
  oA significant portion of our business is based on contracts with
    contractors or subcontractors to the U.S. government and these contracts
    are impacted by governmental priorities and are subject to potential
    fluctuations in funding or early termination, including for convenience,
    any of which could have a material adverse effect on our operating
    results, financial condition or cash flows.
  oWe may be subject to potentially material costs and liabilities in
    connection with environmental or health matters.
  oAlthough we have established an environmental reserve for remediation
    activities in Henderson, Nevada, given the many uncertainties involved in
    assessing environmental liabilities, our environmental-related risks may
    from time to time exceed any related reserves.
  oFor each of our Specialty Chemicals and Fine Chemicals segments,
    production is conducted in a single facility and any significant
    disruption or delay at a particular facility could have a material adverse
    effect on our business, financial position and results of operations.
  oThe release or explosion of dangerous materials used in our business could
    disrupt our operations and cause us to incur additional costs and
    liabilities.
  oDisruptions in the supply of key raw materials and difficulties in the
    supplier qualification process, as well as increases in prices of raw
    materials, could adversely impact our operations.
  oEach of our Specialty Chemicals and Fine Chemicals segments may be unable
    to comply with customer specifications and manufacturing instructions or
    may experience delays or other problems with existing or new products,
    which could result in increased costs, losses of sales and potential
    breach of customer contracts.
  oSuccessful commercialization of pharmaceutical products and product line
    extensions is very difficult and subject to many uncertainties. If a
    customer is not able to successfully commercialize its products for which
    AFC produces compounds or if a product is subsequently recalled, then the
    operating results of AFC may be negatively impacted.
  oA strike or other work stoppage, or the inability to renew collective
    bargaining agreements on favorable terms, could have a material adverse
    effect on the cost structure and operational capabilities of AFC.
  oThe pharmaceutical fine chemicals industry is a capital-intensive industry
    and if AFC does not have sufficient financial resources to finance the
    necessary capital expenditures, its business and results of operations may
    be harmed.
  oWe may be subject to potential liability claims for our products or
    services that could affect our earnings and financial condition and harm
    our reputation.
  oTechnology innovations in the markets that we serve may create
    alternatives to our products and result in reduced sales.
  oWe are subject to strong competition in certain industries in which we
    participate and therefore may not be able to compete successfully.
  oDue to the nature of our business, our sales levels may fluctuate causing
    our quarterly operating results to fluctuate.
  oThe inherent volatility of the chemical industry affects our capacity
    utilization and causes fluctuations in our results of operations.
  oA loss of key personnel or highly skilled employees, or the inability to
    attract and retain such personnel, could disrupt our operations or impede
    our growth.
  oWe may continue to expand our operations through acquisitions, but the
    acquisitions could divert management's attention and expose us to
    unanticipated liabilities and costs. We may experience difficulties
    integrating the acquired operations, and we may incur costs relating to
    acquisitions that are never consummated.
  oWe have a substantial amount of debt, and the cost of servicing that debt
    could adversely affect our ability to take actions, our liquidity or our
    financial condition.
  oWe are obligated to comply with various ongoing covenants in our debt,
    which could restrict our operations, and if we should fail to satisfy any
    of these covenants, the payment under our debt could be accelerated, which
    would negatively impact our liquidity.
  oSignificant changes in discount rates, rates of return on pension assets
    and other factors could affect our estimates of pension obligations, which
    in turn could affect future funding requirements, related costs and our
    future financial condition, results of operations and cash flows.
  oOur suspended stockholder rights plan, Restated Certificate of
    Incorporation, as amended, and Amended and Restated By-laws discourage
    unsolicited takeover proposals and could prevent stockholders from
    realizing a premium on their common stock.
  oOur proprietary and intellectual property rights may be violated,
    compromised, circumvented or invalidated, which could damage our
    operations.
  oOur business and operations would be adversely impacted in the event of a
    failure of our information technology infrastructure.
  oWe are exposed to counterparty risk through our interest rate swap and a
    counterparty default could adversely affect our financial condition.
  oOur common stock price may fluctuate substantially, and a stockholder's
    investment could decline in value.

Readers of this earnings release are referred to our Annual Report on Form
10-K for Fiscal 2012 and our other filings with the Securities and Exchange
Commission for further discussion of these and other factors that could affect
our future results. The forward-looking statements contained in this earnings
release are made as of the date hereof, and we assume no obligation to update
for actual results or to update the reasons why actual results could differ
materially from those projected in the forward-looking statements, except as
required by law. In addition, the operating results for the quarter and six
months ended March 31, 2013 and cash flows for the six months ended March 31,
2013 are not necessarily indicative of the results that will be achieved for
future periods.

ABOUT AMERICAN PACIFIC CORPORATION

American Pacific Corporation (AMPAC) is a leading custom manufacturer of fine
chemicals and specialty chemicals within its focused markets. We supply
active pharmaceutical ingredients and advanced intermediates to the
pharmaceutical industry. For the aerospace and defense industry we provide
specialty chemicals used in solid rocket motors for space launch and military
missiles. We produce clean agent chemicals for the fire protection industry,
as well as electro-chemical equipment for the water treatment industry. Our
products are designed to meet customer specifications and often must meet
certain governmental and regulatory approvals. Additional information about us
can be obtained by visiting our web site at www.apfc.com.







AMERICAN PACIFIC CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited, Dollars in Thousands, Except per Share Amounts)
                         Three Months Ended        Six Months Ended
                         March 31                  March 31,
                         2013          2012          2013         2012
Revenues                 $   50,044  $   39,918  $   86,362 $   78,403
Cost of Revenues         34,150        26,300        55,056       52,555
  Gross Profit           15,894        13,618        31,306       25,848
Operating Expenses       11,049        8,823         21,513       18,308
Other Operating Gains    -             -             -            14
  Operating Income       4,845         4,795         9,793        7,554
Interest and Other       4             7             12           14
Income (Expense), Net
Interest Expense         554           2,591         1,836        5,230
Loss on Debt             -             -             2,835        -
Extinguishment
  Income from Continuing
   Operations before    4,295         2,211         5,134        2,338
  Income Tax
Income Tax Expense       1,534         974           1,222        1,066
  Income from Continuing 2,761         1,237         3,912        1,272
  Operations
Loss from Discontinued
 Operations, Net of Tax (29)          (182)         (25)         (66)
Net Income              $    2,732 $    1,055 $         $   
                                                     3,887        1,206
Basic Earnings Per
Share:
  Income from Continuing $         $         $        $    
  Operations             0.36          0.16          0.51         0.17
  Loss from Discontinued
   Operations, Net of   $          $          $         $   
  Tax                    (0.00)       (0.02)       (0.00)      (0.01)
  Net Income             $         $         $        $    
                         0.35          0.14          0.50         0.16
Diluted Earnings Per
Share:
  Income from Continuing $         $         $        $    
  Operations             0.34          0.16          0.49         0.17
  Loss from Discontinued
   Operations, Net of   $          $          $         $   
  Tax                    (0.00)       (0.02)       (0.00)      (0.01)
  Net Income             $         $         $        $    
                         0.34          0.14          0.49         0.16
Weighted Average Shares
Outstanding:
  Basic                  7,732,000     7,548,000     7,700,000    7,544,000
  Diluted                8,039,000     7,634,000     7,961,000    7,626,000







AMERICAN PACIFIC CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands, Except per Share Amounts)
                                              March 31,    September 30,
                                              2013           2012
ASSETS
Current Assets:
 Cash and Cash Equivalents                    $    26,694 $        
                                                             31,182
 Accounts Receivable, Net                     30,124         24,211
 Inventories                                  57,635         44,157
 Prepaid Expenses and Other Assets            1,389          1,477
 Income Taxes Receivable                      1,954          2
 Deferred Income Taxes                        13,150         13,028
      Total Current Assets                    130,946        114,057
Property, Plant and Equipment, Net            103,143        103,316
Deferred Income Taxes                         19,001         20,796
Other Assets                                  8,531          8,295
      TOTAL ASSETS                            $   261,621  $       
                                                             246,464
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
 Accounts Payable                             $    10,343 $        
                                                             12,006
 Accrued Liabilities                          6,688          6,359
 Accrued Interest                             21             988
 Employee Related Liabilities                 9,083          10,568
 Income Taxes Payable                         -              2,098
 Deferred Revenues and Customer Deposits      34,667         7,293
 Current Portion of Environmental Remediation 3,191          5,114
 Reserves
 Current Portion of Long-Term Debt            5,261          16
      Total Current Liabilities               69,254         44,442
Long-Term Debt                                52,500         65,004
Environmental Remediation Reserves            10,656         11,640
Pension Obligations                         53,531         55,300
Other Long-Term Liabilities                   506            1,745
      Total Liabilities                       186,447        178,131
Commitments and Contingencies
Stockholders' Equity
 Preferred Stock - $1.00 par value; 3,000,000 -              -
 authorized; none outstanding
 Common Stock - $0.10 par value; 20,000,000
 shares authorized,
      7,861,573 and 7,710,783 issued and      786            771
      outstanding
 Capital in Excess of Par Value               76,577         74,796
 Retained Earnings                            28,690         24,803
 Accumulated Other Comprehensive Loss         (30,879)       (32,037)
      Total Stockholders' Equity              75,174         68,333
      TOTAL LIABILITIES AND STOCKHOLDERS'     $   261,621  $       
      EQUITY                                                 246,464







AMERICAN PACIFIC CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited, Dollars in Thousands)
                                                       Six Months Ended
                                                       March 31,
                                                       2013       2012
Cash Flows from Operating Activities:
 Net Income                                            $  3,887 $  1,206
 Adjustments to Reconcile Net Income
  to Net Cash Provided (Used) by Operating Activities:
    Depreciation and amortization                      6,414      7,404
    Non-cash interest expense                          150        380
    Non-cash component of loss on debt extinguishment  1,252      -
    Share-based compensation                          369        320
    Excess tax benefit from stock-based compensation   (432)      -
    Deferred income taxes                              1,333      1,172
    Loss (gain) on sale of assets                      1          23
    Changes in operating assets and liabilities:
    Accounts receivable, net                           (6,045)    (12,379)
    Inventories                                        (13,137)   (9,637)
    Prepaid expenses and other current assets          88         (580)
    Accounts payable                                   (2,321)    (3,251)
    Income taxes                                       (4,050)    (55)
    Accrued liabilities                                25         (2,308)
    Accrued interest                                   (967)      1
    Employee related liabilities                       (1,156)    (819)
    Deferred revenues and customer deposits            27,374     19,426
    Environmental remediation reserves                 (2,907)    (2,864)
    Pension obligations, net                           445        (3,881)
    Other                                             (1,770)    (170)
    Discontinued operations, net                       28         (769)
    Net Cash Provided (Used) by Operating Activities   8,581      (6,781)
Cash Flows from Investing Activities:
 Capital expenditures                                  (5,851)    (2,381)
 Other investing activities                            -          120
 Discontinued operations, net                          -          (423)
    Net Cash Used by Investing Activities              (5,851)    (2,684)
Cash Flows from Financing Activities:
 Issuances of long-term debt                           60,000     -
 Payments of long-term debt                            (67,259)   (9)
 Debt issuance costs                                   (1,386)    -
 Issuances of common stock                             995        -
 Excess tax benefit from stock-based compensation      432        -
 Discontinued operations, net                          -          (28)
    Net Cash Used by Financing Activities              (7,218)    (37)
Effect of Changes in Currency Exchange Rates on Cash   -          15
Net Change in Cash and Cash Equivalents                (4,488)    (9,487)
Cash and Cash Equivalents, Beginning of Period         31,182     30,703
Cash and Cash Equivalents, End of Period               $ 26,694   $ 21,216







AMERICAN PACIFIC CORPORATION
Supplemental Data
(Unaudited, Dollars in Thousands)
                                    Three Months Ended  Six Months Ended
                                    March 31,             March 31,
                                    2013      2012        2013      2012
Operating Segment Data:
Revenues:
  Fine Chemicals                    $ 37,267  $ 20,594    $ 58,614  $ 42,069
  Specialty Chemicals               11,934    18,961      26,284    33,181
  Other Businesses                  843       363         1,464     3,153
        Total Revenues              $ 50,044  $ 39,918    $ 86,362  $ 78,403
Segment Operating Income (Loss):
  Fine Chemicals                    $  3,750 $   (978) $  5,027 $ (2,165)
  Specialty Chemicals               5,218     9,297       13,135    16,941
  Other Businesses                  (233)     (357)       (393)     (429)
        Total Segment Operating     8,735     7,962       17,769    14,347
        Income
Corporate Expenses                  (3,890)   (3,167)     (7,976)   (6,793)
Operating Income                    $  4,845 $  4,795   $  9,793 $  7,554
Depreciation and Amortization:
  Fine Chemicals                    $  2,894 $  2,928   $  5,909 $  5,968
  Specialty Chemicals               123       377         330       612
  Other Businesses                  5         5           10        9
  Corporate                         82        94          165       188
        Total Depreciation and      $  3,104 $  3,404   $  6,414 $  6,777
        Amortization
Segment EBITDA:
  Fine Chemicals                    $  6,644 $  1,950   $ 10,936  $  3,803
  Specialty Chemicals               5,341     9,674       13,465    17,553
  Other Businesses                  (228)     (352)       (383)     (420)
        Total Segment EBITDA        11,757    11,272      24,018    20,936
Less: Corporate Expenses, Excluding (3,808)   (3,073)     (7,811)   (6,605)
Depreciation
Plus: Share-based Compensation      116       103         369       320
Plus: Interest and Other Income     4         7           12        14
(Expense), Net
Adjusted EBITDA                    $  8,069 $  8,309   $ 16,588  $ 14,665
Reconciliation of Income from Continuing Operations to
Adjusted EBITDA:
Income from Continuing Operations   $  2,761 $  1,237   $  3,912 $  1,272
Add Back:
  Income Tax Expense                1,534     974         1,222     1,066
  Interest Expense and Loss on Debt 554       2,591       4,671     5,230
  Extinguishment
  Depreciation and Amortization     3,104     3,404       6,414     6,777
  Share-based Compensation          116       103         369       320
Adjusted EBITDA                     $  8,069 $  8,309   $ 16,588  $ 14,665



Contact: Dana M. Kelley – (702) 735-2200
E-mail: InvestorRelations@apfc.com
Website: www.apfc.com

SOURCE American Pacific Corporation

Website: http://www.apfc.com
 
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