ChemFirst Inc. Announces Second Quarter and Six Months Earnings.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)--July 22, 1999-- 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 June June: see month. 30, 1999, were $5.5 million or 30 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. Earnings for the same quarter last year were $3.9 million or 19 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. . Sales for the quarter were up 6 percent to $80 million. Earnings from continuing operations for the six months were $10.1 million or 55 cents per diluted share. Earnings for the same period last year were $8.3 million or 42 cents per share, excluding 25 cents per share from asset sales. Sales increased slightly to $150 million. Earnings for the quarter and six months improved on higher sales of 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 from 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 and higher production and lower costs at the Pascagoula Pascagoula (păskəg  `lə), city (1990 pop. 25,899), seat of Jackson co., extreme SE Miss. , MS aniline plant.Polyurethane Chemicals pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern 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 $8 million versus $4.7 million same quarter last year. Operating profits for the six months were $15.2 million, up from $7.9 million last year. Higher aniline production from the Baytown and Pascagoula facilities accounted for the improvement in operating profits for the quarter and year to date. Second quarter operating profits were up 12 percent from prior quarter on higher sales from Pascagoula. 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. operating profits were $4.3 million for the quarter, about the same as last year, and up 22 percent from prior quarter on better results in other specialties. Operating profits for the six months were $7.8 million versus $10 million last year on a 5 percent sales decline to $87 million. Second quarter electronic chemical volumes were up solidly compared to prior quarter and last year, reflecting an improving semiconductor industry. However, results for the six months were hurt by lower average prices and additional costs for product development and new R & D and engineering facilities in the U.S. and Japan. 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. Melt operations at FirstMiss Steel ceased on June 30, as planned. Limited operations continue in order to honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. remaining contracts, sell inventories and collect receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . The company has terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: negotiations to sell Engineered Products and Services to the managers of that business, and is now actively seeking another buyer. Dividend -- A quarterly cash dividend of 10 cents per share was declared payable June 25, 1999, to stockholders of record at the close of business June 10, 1999. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. -- During the quarter 242,900 shares of ChemFirst stock were acquired at a cost of approximately $5.8 million. Approximately $39 million remains authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: for repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. expenditures. Outlook - "Second quarter earnings were better due to strong aniline demand and higher sales from the Pascagoula, MS facility," said J. Kelley Kelley may refer to any of the following: People
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 July July: see month. 22, 1999, at 9 a.m., Eastern Daylight Time. J. Kelley Williams will host the call. Participants may access the call by dialing 888-810-4788 and giving the pass code "Kelley". A taped replay of the call will be available through July 26 and may be accessed by dialing 800-871-1325 (USA/Canada) or 402-280-9908 (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 website located at http://www.chemfirst.com. -0-
ChemFirst Inc. and Subsidiaries
Operating Results
(Unaudited. In Thousands, Except Per Share Amounts)
3 Months ended 6 Months ended
June 30 June 30
1999 1998 1999 1998
--------------------------------------------- ------ ------- -------
Sales:
Electronic and Other Specialty
Chemicals $47,498 43,444 87,415 91,781
Polyurethane Chemicals 32,843 32,244 62,770 55,831
------- ------ ------- -------
$80,341 75,688 150,185 147,612
======= ====== ======= =======
Operating profit:
Electronic and Other Specialty
Chemicals $4,302 4,367 7,841 9,997
Polyurethane Chemicals 8,040 4,724 15,245 7,879
------- ------ ------- -------
12,342 9,091 23,086 17,876
Unallocated corporate expenses (3,057) (2,929) (5,881) (5,102)
Interest income (expense), net (197) 146 (663) 654
Other income (expense), net (260) (42) (228) 8,196
------- ------ ------- -------
8,828 6,266 16,314 21,624
Income tax expense 3,355 2,413 6,200 8,325
------- ------ ------- -------
Earnings from continuing
operations(a) 5,473 3,853 10,114 13,299
Earnings from discontinued
operations, net of taxes -- 101 -- 408
------- ------ ------- -------
Net earnings $5,473 3,954 10,114 13,707
======= ====== ======= =======
Earnings per common share:
Earnings from continuing
operations(a) $0.30 0.19 0.55 0.67
Earnings from discontinued
operations, net of taxes -- 0.01 -- 0.02
------- ------ ------- -------
Net earnings $0.30 0.20 0.55 0.69
======= ====== ======= =======
Average shares outstanding 18,255 19,494 18,323 19,690
Earnings per common share, assuming
dilution:
Earnings from continuing
operations(a) $0.30 0.19 0.55 0.67
Earnings from discontinued
operations, net of taxes -- 0.01 -- 0.02
------- ------ ------- -------
Net earnings $0.30 0.20 0.55 0.69
======= ====== ======= =======
Average shares outstanding 18,500 19,789 18,518 19,998
Cash dividend declared per share $0.10 0.10 0.20 0.20
(a) Includes the after tax effect
of the gain on the January,
1998 sale of Power Sources Inc.
($.25 per common share, assuming
dilution) $ -- -- -- 5,044
======= ====== ======= =======
Condensed Consolidated Balance Sheets
(Unaudited. In Thousands)
June 30 Dec. 31 June 30
1999 1998 1998
-------- ------- -------
Cash and cash equivalents $4,979 11,226 8,027
Other current assets 154,299 149,676 151,815
Other assets 249,931 282,532 290,520
-------- ------- -------
Total assets $409,209 443,434 450,362
======== ======= =======
Current liabilities $38,454 43,966 36,868
Long-term debt 32,551 64,956 59,063
Other liabilities 54,326 49,030 49,060
Stockholders' equity 283,878 285,482 305,371
-------- ------- -------
Total liabilities & stockholders' equity $409,209 443,434 450,362
======== ======= =======
Condensed Consolidated Statements of Cash Flows
(Unaudited. In Thousands)
6 Months ended
June 30
1999 1998
------- ------
Cash flows from operations:
Net earnings $10,114 13,707
Depreciation and amortization 13,097 11,760
Other (14,231) (12,009)
------- ------
Net cash provided by continuing operations 8,980 13,458
Net cash provided by (used in) discontinued
operations 9,061 (11,498)
------- ------
Net cash provided by operating activities 18,041 1,960
------- ------
Cash flows from investing activities:
Capital expenditures (11,442) (22,761)
Other investing activities 29,537 19,592
------- ------
Net cash provided by (used in) investing activities,
continuing operations 18,095 (3,169)
Net cash used in investing activities, discontinued
operations -- (1,354)
------- ------
Net cash provided by (used in) investing
activities 18,095 (4,523)
------- ------
Cash flows from financing activities:
Net borrowings (repayments) of notes payable to
banks (30,182) 35,000
Purchase of common stock (8,866) (28,086)
Other financing activities (3,326) (3,797)
------- ------
Net cash provided by (used in) financing activities,
continuing operations (42,374) 3,117
Net cash used in financing activities, discontinued
operations -- (293)
------- ------
Net cash provided by (used in) financing
activities (42,374) 2,824
------- ------
Effect of exchange rate changes on cash (9) --
------- ------
Net increase (decrease) in cash and cash
equivalents $(6,247) 261
======= ======
Cash and cash equivalents at end of period $4,979 8,027
======= ======
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