ChemFirst Inc. Announces Third Quarter Results.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)--Oct. 24, 2001 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. ) announces third quarter earnings in line with its pre-emptive pre·emp·tive or pre-emp·tive adj. 1. Of, relating to, or characteristic of preemption. 2. Having or granted by the right of preemption. 3. a. estimate of just over a half million dollars, or 4 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. excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items. Earnings on a comparable basis last year were $5.8 million or 37 cents per share. Earnings were down mainly on lower volumes for electronic chemicals due to the semiconductor industry recession. Lower unit margins 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 were also a factor. Results for the quarter including nonrecurring expenses related to the custom and fine chemicals disposition, workforce reductions, and DUV DUV Deep Ultraviolet DUV Data-Under-Voice DUV Design Under Verification resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing inventory valuations were a loss of 7 cents per share, compared to earnings of 33 cents per share last year. Sales were $61 million, down from $78 million last year excluding sales from the fine chemicals business sold in Q2. Earnings for the nine months excluding results of the custom and fine chemicals business and nonrecurring items were $7.4 million, or 52 cents per share, down from comparable earnings of $18.6 million, or $1.16 per share last year. Year to date results including operating results and loss from the sale of the company's custom and fine chemicals business and nonrecurring items were a loss of $12.2 million or 86 cents per share, compared to 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 of $17 million or $1.06 per share last year. Sales for the nine months adjusted for fine chemicals were $211 million, off from $238 million last year. 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. results for the quarter, excluding nonrecurring items, were a loss of $3.0 million, down from earnings of $4.3 million a year ago. Lower electronic chemicals and materials volumes and the absence of a business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril payment caused the decline. Adjusted year to date profits of $3.7 million were down from comparable results of $13.7 million last year on lower volumes and higher CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information product and market development costs. Sales excluding custom and fine chemicals were $23 million for the quarter and $86 million year to date, versus $29 million and $97 million last year. No business interruption insurance payments have been received since the first quarter. The company continues to pursue insurance recoveries for lost profits as a result of the June 2000 explosion at Nissin Chemical, a critical supplier of hydroxylamine hy·drox·yl·a·mine n. A colorless crystalline compound, NH2OH, explosive when heated, that is used as a reducing agent and in organic synthesis. used in the company's patented HDA (Head Disk Assembly) The mechanical components of a disk drive (minus the electronics), which include the actuators, access arms, read/write heads and platters. HDA - Head Disk Assembly (R) remover products. During the quarter the company reached agreement to acquire the 12.5% of TriQuest LP owned by TriQuest management. 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 $7.1 million, down from $8.1 million last year on lower unit margins. Sales were $38 million versus $49 million last year. Profits for the nine months were $19.1 million, down from $26 million last year on lower unit margins and volumes. Margins were hurt by raw material price volatility. Sales for the nine months were $125 million, down from $140 million. Dividend -- A quarterly cash dividend of 10 cents per share was declared payable September 21, 2001, to stockholders of record at the close of business September 6, 2001. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. -- The company repurchased 186,400 shares in the third quarter at a cost of $3.8 million. The company has repurchased 7.5 million shares of stock at a cost of $165 million since beginning the 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. program in 1997. There is approximately $65 million remaining under the current repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. . Outlook -- "Inventory levels and order patterns suggest we may have hit the bottom in electronic chemicals, but it is still too early to call," said J. Kelley Williams, ChemFirst chairman and 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. . "We have tightened up and improved operating efficiencies and believe we are in good shape to take advantage of the industry recovery when it comes. Polyurethanes polyurethanes (pŏl'ēy  r`əthānz), group of plastics that may be either thermosetting or thermoplastic. Polyurethane can be made into both flexible and rigid foams. may be off in Q4 due to anticipated
seasonal inventory adjustments."
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. Actual results will be released following the market's close on October 24, 2001 and a conference call for the investment community is scheduled for October 25, 2001, at 8:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . J. Kelley Williams will host the call. Participants may access the call by dialing 888/577-8991 (USA/Canada) or 712/271-0563 (International) and giving the pass code "Earnings". A taped replay of the call will be available through October 29 and may be accessed by dialing 800/933-9609 (USA/Canada) or 402/530-8098 (International). The call will also be webcast in the Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. format through the company's website www.chemfirst.com and several popular financial websites. 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 2000 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. and most recent 10-Q's. ChemFirst produces chemicals for semiconductors and polyurethanes and intermediate chemicals for a variety of applications. Additional information about the company is available on the ChemFirst website located at http://www.chemfirst.com.
ChemFirst Inc. and Subsidiaries
Operating Results
(Unaudited. In Thousands, Except Per Share Amounts)
3 Months ended 9 Months ended
Sept. 30 Sept. 30
2001 2000 2001 2000
-------- -------- -------- --------
Sales:
Electronic and Other
Specialty Chemicals $ 23,191 43,568 117,553 152,428
Polyurethane Chemicals 38,338 49,383 124,658 140,248
-------- -------- -------- --------
$ 61,529 92,951 242,211 292,676
======== ======== ======== ========
Operating profit (loss):
Electronic and Other
Specialty Chemicals $ (5,818) 3,363 (28,512) 11,091
Polyurethane Chemicals 7,125 8,135 19,149 26,034
-------- -------- -------- --------
1,307 11,498 (9,363) 37,125
Unallocated corporate
expenses (2,993) (2,539) (9,707) (7,898)
Interest income (expense),
net 84 (664) (1,431) (1,877)
Other income (expense),
net (22) (51) 1,045 (111)
-------- -------- -------- --------
(1,624) 8,244 (19,456) 27,239
Income tax expense
(benefit) (609) 3,092 (7,296) 10,215
-------- -------- -------- --------
Earnings (loss) from
continuing operations (1,015) 5,152 (12,160) 17,024
Gain on disposal of
businesses, net of
taxes -- -- -- 9,656
======== ======== ======== ========
Net earnings (loss) $ (1,015) 5,152 (12,160) 26,680
Earnings (loss) per common
share:
Earnings from
continuing operations $ (0.07) 0.34 (0.86) 1.06
Gain on disposal of
businesses, net of
taxes -- -- -- 0.60
-------- -------- -------- --------
Net earnings (loss) $ (0.07) 0.34 (0.86) 1.66
======== ======== ======== ========
Average shares outstanding 14,168 15,253 14,165 15,990
Earnings (loss) per common
share, assuming dilution:
Earnings from
continuing operations $ (0.07) 0.33 (0.86) 1.06
Gain on disposal of
businesses, net of
taxes -- -- -- 0.59
-------- -------- -------- --------
Net earnings (loss) $ (0.07) 0.33 (0.86) 1.65
======== ======== ======== ========
Average shares outstanding 14,168 15,470 14,165 16,135
Cash dividend declared per
share $ 0.10 0.10 0.30 0.30
Condensed Consolidated Balance Sheets
(Unaudited. In Thousands)
Sept. 30 Dec. 31 Sept. 30
2001 2000 2000
-------- -------- --------
Cash and cash equivalents $ 37,111 5,594 8,228
Other current assets 102,179 143,708 134,876
Other assets 164,734 234,441 235,250
-------- -------- --------
Total assets $304,024 383,743 378,354
======== ======== ========
Current liabilities $ 42,237 54,520 44,874
Long-term debt 4,689 41,640 37,423
Other liabilities 41,494 52,769 50,153
Stockholders' equity 215,604 234,814 245,904
-------- -------- --------
Total liabilities &
stockholders' equity $304,024 383,743 378,354
======== ======== ========
Condensed Consolidated Statements of Cash Flows
(Unaudited. In Thousands)
9 Months ended
Sept. 30
2001 2000
-------- --------
Cash flows from operations:
Net earnings (loss) $(12,160) 26,680
Depreciation and amortization 19,895 21,829
Other 2,410 (513)
-------- --------
Net cash provided by operating
activities 10,145 47,996
-------- --------
Cash flows from investing activities:
Capital expenditures (14,130) (11,215)
Other investing activities 80,488 13,121
-------- --------
Net cash provided by investing
activities 66,358 1,906
-------- --------
Cash flows from financing activities:
Net borrowings (repayments) of
notes payable (36,936) 13,696
Purchase of common stock (3,808) (66,732)
Other financing activities (3,835) (3,072)
-------- --------
Net cash used in
financing activities (44,579) (56,108)
-------- --------
Effect of exchange rate changes on cash (407) (118)
-------- --------
Net increase (decrease) in cash
and cash equivalents $ 31,517 (6,324)
-------- --------
Cash and cash equivalents at end of period $ 37,111 8,228
======== ========
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