Aceto Corporation Announces Its Fourth Quarter and Year-End Results.Business Editors LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Sept. 20, 2001 Aceto Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACET ACET AIDS Care Education and Training ACET Advisory Council for the Elimination of Tuberculosis (CDC) ACET Association for Compensatory Educators of Texas ACET Advisory Committee on Electronics and Telecommunications ), a global distributor of Pharmaceutical and Specialty Chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. , announced today its fourth quarter and year-end results for the period ending June 30, 2001. The Company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $56,036,000 for the quarter ended June 30, 2001, a 29% increase from $43,405,000 for the quarter ended June 30, 2000. For the year ending June 30,2001 the Company reported net sales of $178,154,000 a 4 % decrease from $185,308,000 for the year ended June 30, 2000. The Company reported gross profit of $8,989,000 for the quarter ended June 30, 2001, a 20 % increase from $7,488,000 for the quarter ended June 30, 2000 and gross profit of $28,617,000 for the year ended June 30, 2001, a 5 % increase from $27,204,000 for the year ended June 30, 2000. For the quarter ending June 30, 2001, the Company reported net income of $222,000, or $0.03 per basic and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share which includes a non-recurring employee separation pre-tax charge of $994,000, or $.10 per share. This represents an 87% decrease from $1,731,000 or $0.28 per basic and fully diluted common share for the quarter ended June 30, 2000. For the year ending June 30,2001 the Company reported net income of $4,245,000, or $0.69 per basic and fully diluted common share which includes a non-recurring employee separation pre-tax charge of $994,000, or $.10 per share. This represents a 33% decrease from $6,344,000, or $1.02 per basic and $1.01 fully diluted common share, for the year ended June 30, 2000. "Fiscal year 2001 was the year that Aceto evolved into a truly global company" stated Leonard S Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. . Schwartz, Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President. "This really became apparent to me when I walked into our offices on Wednesday September 5, 2001 and was greeted by Aceto people who are visiting our headquarters from Shanghai, Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi and Hamburg Hamburg, city, Germany Hamburg (häm`b  rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , all of whom are nationals of those countries. Although not the
most successful in financial terms, this year was certainly the most
active and fulfilling in Aceto's corporate history.""We accomplished two significant achievements: We successfully acquired (on March 26, 2001) and integrated the Schweizerhall Pharma division acquired from Schweizerhall Holding AG. This acquisition has individual business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets in Hamburg, Paris, Amsterdam, Singapore and Mumbai. It increased the Company's sales revenue by over 41% and transformed Aceto into the only distribution company with the ability to effectively service customers in the Pharmaceutical and Chemical Industries anywhere in the world," continued Schwartz. "A reorganization was planned and executed to provide a solid platform for future growth by the establishment of a more definitive and capable corporate structure. Some highlights of this include the creation of two new administrative departments- "Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and Facilities" and "Materials Management Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, and Logistics". Unfortunately the 4th Quarter financial results were not as good as we had hoped as a result of the downturn in the economy, a charge for employee terminations and additional non-recurring expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the strategic forward integration of our global Health Science businesses." continued Schwartz. "Our Health Science portfolio currently represents 50% of the Company's gross revenue and is comprised of three markets: -Active Pharmaceutical Ingredients (API's) -principally Generic Drugs -Pharmaceutical Intermediates-chemical used to make API's -Nutraceuticals-active ingredients in nutritional supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. We believe that the future of the Company is exceedingly ex·ceed·ing·ly adv. To an advanced or unusual degree; extremely. exceedingly Adverb very; extremely Adv. 1. bright as we continue to work hard to grow our domestic and international businesses organically, actively look for accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. , expand our business activities in China aided by the July 11,2001 establishment of Aceto (Shanghai) Ltd., a trading and distribution company located in the Weigaoqiao Free Trade Zone in Shanghai, China and operate as cost efficiently as possible with a strong emphasis on the synergies achieved as a result of the Schweizerhall acquisition" concluded Schwartz.
Consolidated Statements of Income
(In Thousands Except per Share Amounts)
Fourth Quarter Ended Fiscal Year Ended
June 30, June 30,
2001 2000 2001 2000
(in thousands)
Net Sales $ 56,036 $ 43,405 $178,154 $185,308
Cost of Sales 47,047 35,917 149,537 158,104
Gross Profit 8,989 7,488 28,617 27,204
Selling, General and
Administrative
Expenses (a)8,625 5,147 (a)22,761 18,031
Operating Profit 364 2,341 5,856 9,173
Other Income Net of
Interest Expense 49 291 930 1,058
Income Before Income
Taxes 413 2,632 6,786 10,231
Provision for Income
Taxes 191 901 2,541 3,887
Net Income 222 1,731 4,245 6,344
Net Income Per Common Share
Basic $ 0.03 $ 0.28 $ 0.69 $ 1.02
Diluted $ 0.03 $ 0.28 $ 0.69 $ 1.01
Weighted Average Shares
Outstanding
Basic 6,516 6,115 6,122 6,188
Diluted 6,531 6,157 6,148 6,308
(a) Includes employee separation pre-tax charge of $994,000 or $0.10 per diluted share for the fourth quarter and fiscal year. This release contains forward-looking information and therefore it necessarily involves risks and uncertainties. Factors that could cause actual events to differ materially from these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include, but are not limited to, the following: anticipated cost savings and operational synergies, economic and political conditions in U.S. and abroad, as well as other risks detailed from time to time in Aceto Corporation's SEC reports. ABOUT ACETO Aceto Corporation, which was incorporated in 1947, is a global leader in the distribution and marketing Pharmaceutical and Specialty Chemicals used principally in the agricultural, color, pharmaceutical, surface coating/ink and general chemical industries. With offices in over nine countries, Aceto Corporation distributes over 1,000 chemicals in these and other fields. On March 26,2001, Aceto Corporation acquired the Schweizerhall Pharma division from Schweizerhall Holding AG, including its individual business operations in Hamburg, Paris, Singapore, Amsterdam and Mumbai. For more information on Aceto, please visit our website at www.aceto.com, or call Leonard S. Schwartz directly at 516-627-6000. |
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