ChemFirst Inc. Announces Fourth Quarter and Year-end Earnings.Business Editors JACKSON Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. , Miss.--(BUSINESS WIRE)--Feb. 10, 2000 ChemFirst Inc. (NYSE NYSE See: New York Stock Exchange :CEM CEM contagious equine metritis. CEM selective medium chocolate agar made with Eugon agar and 5% horse blood; used to cultivate Taylorella equigenitalis. ) earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended December December: see month. 31, 1999, were $6.4 million or 35 cents per 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, up 14% from $5.6 million, or 30 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. same quarter last year excluding 3 cents from special items. Sales for the quarter were $82 million, up 8% from last year. Earnings were up on higher sales in Electronic and Other 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. . Earnings from continuing operations for the year were $22.5 million or $ $1.22 per diluted share, up 18% from $19 million, or $.98 per share last year excluding 29 cents from special items. Sales for the year were $312 million, up 5% from last year. The improvement in both sales and earnings was mainly due to additional sales in Polyurethane polyurethane Any of a class of very versatile polymers that are made into flexible and rigid foams, fibres, elastomers (elastic polymers), surface coatings, and adhesives. Chemicals. Electronic and Other Specialty Chemicals operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter were $6 million, up 32% from $4.5 million prior year on a 5% improvement in sales to $47 million. Operating profits for the year were $18 million versus $17.8 million last year on sales of $174 million. Quarterly results improved on record sales in electronic remover chemicals driven by a strong recovery in the semiconductor industry. Operating results for the year improved only slightly as better specialty results were offset by expenses for product development and R& and engineering facilities added last year. Polyurethane Chemicals pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating profits for the quarter were up 15% to $7 million on a 13% increase in sales versus earnings of $6.1 million same quarter last year before $1.5 million business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. proceeds due to Hurricane Georges This article is about Atlantic hurricane of 1998. For other storms of the same name, see Hurricane Georges (disambiguation). Hurricane Georges (IPA: [ʒɔʒ] . Operating profits for the year increased 47% to $31 million, and sales increased 15% to $138 million, reflecting the first full year of operation at the Baytown Baytown, city (1990 pop. 63,850), Harris co., S Tex., at the head of Galveston Bay, on the Houston ship channel; inc. 1948 after the consolidation of Goose Creek, Pelly, and Baytown. , TX aniline aniline (ăn`əlĭn), C6H5NH2, colorless, oily, basic liquid organic compound; chemically, a primary aromatic amine whose molecule is formed by replacing one hydrogen atom of a benzene molecule with an amino facility. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. include Steel and Engineered Products and Services. The company sold Callidus Technologies Inc. and Plasma Energy Corporation to Howe-Baker International Inc. in December, and recently announced an agreement to sell FirstMiss Steel to Hoganas, AB, a Swedish producer of customized, high quality iron powders. The steel sale is scheduled to be completed in the first quarter of this year. Earnings from discontinued operations were $2.3 million, reflecting the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of estimated taxes Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. related to the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of the company's gold operations in 1995. Earnings were partially offset by a $1.7 million loss on the sale of the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses. Dividend -- A quarterly cash dividend of 10 cents per share was declared payable December 27, 1999, to stockholders of record at the close of business December 9, 1999. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. -- 322,200 shares of ChemFirst stock were acquired during fourth quarter at a cost of $6.8 million, bringing repurchases for the year to 758,100 shares. The company has repurchased 3.4 million shares at a cost of $78.6 million since beginning the program and has approximately $31.4 million remaining under the current authorization The right or permission to use a system resource; the process of granting access. See access control. . Outlook -- &uot;1999 was a good year. Earnings from continuing operations were up 18%. We sold our Steel and Engineered Products businesses to focus exclusively on chemicals. We combined Custom Manufacturing and Fine Chemicals to simplify the organization and sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp our customer focus. We added new strategic products and began development of new technologies in Electronic Chemicals to maintain market leadership,&uot; said J. Kelley Kelley may refer to any of the following: People
&uot;We expect 2000 to be better, led by strong demand for electronic chemicals. However, first quarter results may reflect seasonally lower electronic chemical sales, and lower aniline sales due to scheduled maintenance at Bayer's Baytown plant,&uot; added Williams. Unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial information is attached. A conference call for the investment community is scheduled for February February: see month. 10, 2000, at 9 a.m., Eastern Standard Time. J. Kelley Williams will host the call. Participants may access the call by dialing 888/625-1617 (USA/Canada) or 712/257-2274 (International) and giving the pass code &uot;Williams&uot;. A taped replay of the call will be available through February 14 and may be accessed by dialing 800/756-6142 (USA/Canada) or 402/998-0809 (International). This release includes 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. based on management assumptions and expectations. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For additional information on risk factors that could affect actual results, please refer to the company's 1998 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . ChemFirst produces chemicals for semiconductor, life science and polyurethane applications. Additional information about the company is available on ChemFirst's web site located at http://www.chemfirst.com.
ChemFirst Inc. and Subsidiaries
Operating Results
(Unaudited. In Thousands, Except Per Share Amounts)
3 Months ended 12 Months ended
Dec. 31 Dec. 31
1999 1998 1999 1998
---- ---- ---- ----
Sales:
Electronic and Other
Specialty Chemicals $ 47,017 44,941 173,663 176,688
Polyurethane Chemicals 35,309 31,196 138,123 119,821
--------- ------ ------- -------
$ 82,326 76,137 311,786 296,509
========= ====== ======= =======
Operating profit:
Electronic and Other
Specialty Chemicals $ 5,958 4,501 18,048 17,796
Polyurethane Chemicals 6,974 7,631 31,034 22,648
--------- ------ ------- -------
12,932 12,132 49,082 40,444
Unallocated corporate
expenses (2,695) (2,723) (11,811) (9,780)
Interest income
(expense), net 193 (294) (782) 213
Other income
(expense), net (199) 1,060 (536) 9,224
--------- ------ ------- -------
10,231 10,175 35,953 40,101
Income tax expense 3,834 3,920 13,480 15,440
--------- ------ ------- -------
Earnings from continuing
operations/a 6,397 6,255 22,473 24,661
Earnings (loss) from
discontinued operations,
net of tax benefit 2,388 (2,183) 2,388 (2,619)
Loss from disposal of
businesses, net of tax
benefit (1,742) - (1,742) (11,950)
--------- ------ ------- -------
Net earnings $ 7,043 4,072 23,119 10,092
========= ====== ======= =======
Earnings per common share:
Earnings from continuing
operations/a $ 0.35 0.33 1.23 1.28
Earnings (loss) from
discontinued operations,
net of tax benefit .13 (0.11) .13 (0.14)
Loss from disposal of
businesses, net of tax
benefit (.10) - (.10) (0.62)
--------- ------ ------- -------
Net earnings $ 0.38 .22 1.26 0.52
========= ====== ======= =======
Average shares
outstanding 18,170 18,715 18,242 19,255
Earnings (loss) per
common share, assuming
dilution:
Earnings from continuing
operations/a $ 0.35 0.33 1.22 1.27
Earnings (loss) from
discontinued operations,
net of tax benefit .13 (0.11) .13 (0.14)
Loss from disposal of
businesses, net of tax
benefit (.10) - (.10) (0.61)
--------- ------ ------- -------
Net earnings $ 0.38 0.22 1.25 0.52
========= ====== ======= =======
Average shares
outstanding 18,433 18,831 18,470 19,479
Cash dividend declared
per share $ 0.10 0.10 0.40 0.40
/a Prior year results include the after tax effect of special items
of $640 ($.03 per share), and $5,684 ($.29 per share) for the
quarter and year to date, primarily related to the sale of Power
Sources Inc. in January 1998.
Condensed Consolidated Balance Sheets
(Unaudited. In Thousands)
Dec. 31 Dec. 31
1999 1998
------- -------
Cash and cash equivalents $ 14,551 11,226
Other current assets 152,998 149,676
Other assets 244,935 282,532
-------- -------
Total assets $412,484 443,434
======== =======
Current liabilities $ 44,484 43,966
Long-term debt 24,224 64,956
Other liabilities 55,053 49,030
Stockholders' equity 288,723 285,482
-------- -------
Total liabilities &stockholders' equity $412,484 443,434
======== =======
Condensed Consolidated Statements of Cash Flows
(Unaudited. In Thousands)
12 Months ended
Dec. 31
1999 1998
---- ----
Cash flows from operations:
Net earnings $ 23,119 10,092
Depreciation and amortization 26,988 23,688
Other (11,258) 6,341
--------- -------
Net cash provided by continuing operations 38,849 40,121
Net cash provided by (used in) discontinued
operations 5,245 (5,970)
--------- -------
Net cash provided by operating activities 44,094 34,151
--------- -------
Cash flows from investing activities:
Capital expenditures (24,645) (43,786)
Other investing activities 44,425 19,722
--------- -------
Net cash provided by (used in) investing
activities, continuing operations 19,780 (24,064)
Net cash used in investing activities,
discontinued operations - (3,204)
Net cash provided by (used in) investing
activities --------- -------
19,780 (27,268)
--------- -------
Cash flows from financing activities:
Net borrowings (repayments) of notes payable (38,714) 46,354
Purchase of common stock (16,676) (42,617)
Other financing activities (5,741) (6,712)
--------- -------
Net cash used in financing activities,
continuing operations (61,131) (2,975)
Net cash used in financing activities,
discontinued operations - (441)
--------- -------
Net cash used in financing activities (61,131) (3,416)
--------- -------
Effect of exchange rate changes on cash 581 (7)
--------- -------
Net increase in cash and cash equivalents $ 3,324 3,460
--------- -------
Cash and cash equivalents at end of period $ 14,551 11,226
--------- -------
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