ChiRex posts third quarter earnings of nine cents per share.WELLESLEY Wellesley, town (1990 pop. 26,615), Norfolk co., E Mass., a residential suburb SW of Boston; settled 1660, inc. 1881. Its many educational institutions include several private preparatory schools, Babson College, and Wellesley College. , Mass.--(BUSINESS WIRE)--Oct. 17, 1996-- ChiRex announces the resignation of Dr. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. L. Bratzler; ChiRex appoints Alan A`lan´ n. 1. A wolfhound. R. Clark chairman and chief executive officer; Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. Griffith Griffith, town (1990 pop. 17,916), Lake co., extreme NW Ind.; inc. 1904. It is primarily a residential town in the Chicago metropolitan area. Manufactures include metal products, chemicals, and electronic equipment. elected to board of directors ChiRex Inc. (Nasdaq: CHRX) posted third quarter net income of $1.0 million, or nine 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. . This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to a combined net loss of the two pre-merger companies (Sterling Organics and SepraChem) of $1.2 million for the same period last year. Total revenues for the third quarter were $20.6 million, as compared to $21.4 million for the same period last year, reflecting the net effect of the elimination of low-margin revenues from 1995 and the addition of higher-margin revenues in 1996. As a result, gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved in the third quarter to 18.0% from 14.2% and the operating profit margin Operating profit margin The ratio of operating profit to net sales. improved in the third quarter to 10.5% from 0.7%. ChiRex's fine chemical manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. , like many other similar businesses operating in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , traditionally experience a
decrease in revenues and associated net income in the third quarter as a
result of the extended summer holidays.ChiRex also announced that Dr. Robert L. Bratzler has resigned as Chairman and Chief Executive Officer to pursue personal interests. Alan R. Clark, formerly Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , has been named Chairman, Chief Executive Officer and President, effective immediately. "The vision Alan and I share to create a unique process development and manufacturing resource to the pharmaceutical industry with chiral chi·ral adj. Of or relating to the structural characteristic of a molecule that makes it impossible to superimpose it on its mirror image. chi·ral technology and manufacturing know-how know-how n. The knowledge and skill required to do something correctly. See Synonyms at art1. know-how Noun Informal the ability to do something that is difficult or technical has been largely realized with the successful merger of the chiral chemistry business of SepraChem into the experienced hands of the Sterling Organics management team. I have decided that this is a window of opportunity to step down and to transfer all my full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full management responsibilities to Alan's capable hands so that I can refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. my energies on other business interests." Dr. Bratzler will continue to serve on the ChiRex Board of Directors and consult on the further development of the company's chiral chemistry technologies and its relationships with the Scientific Advisory Board. "Alan Clark This article is about the British politician, for other uses see Al(l)an Clark(e) Alan Kenneth Mackenzie Clark (13 April, 1928 – 5 September, 1999) was a British Conservative politician, historian and diarist. has over 20 years experience operating pharmaceutical fine chemical facilities both in England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. and in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . That experience, combined with his excellent relationships with our key customers, provides the critical competencies to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. ChiRex's mission," stated Dr. Bratzler. Mr. Clark commented that "I am personally saddened by Bob's decision but heartened by the fact that Bob will remain involved through his continued association as a member of the Board of Directors and as a consultant. It was Bob's creative inspiration and determination that assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. our world-class portfolio of chiral chemistry technologies. It is those technologies, combined with our excellent customer relationships and process development experience, that give ChiRex its competitive position in the pharmaceutical industry. We must now exploit our advantage by growing our manufacturing base both internally and through acquisitions while aggressively pursuing additional development products." In light of Mr. Clark's appointment, the management team has been realigned to best fulfill the ChiRex mission and to reflect the skills and experience of the officers: Mr. Michael A. Griffith, Chief Financial Officer, will assume overall responsibility for ChiRex's investment in InNova Pharmaceuticals and will spearhead ChiRex's acquisition activities in addition to his existing investor relations Investor relations The process by which the corporation communicates with its investors. and financial management roles. In addition, Mr. Griffith has been elected to the ChiRex Board of Directors. To complement and assist Mr. Griffith in his added capacities, Mr. John E. Weir, currently Finance Director, has taken on additional responsibility as Treasurer. Dr. J Noun 1. Dr. J - United States basketball forward (born in 1950) Erving, Julius Erving, Julius Winfield Erving . Graham Thorpe Graham Paul Thorpe MBE (born August 1 1969 in Farnham, Surrey) is an English cricketer who played for Surrey and England. Naturally right-handed in everything but batting, when he was six years old Thorpe changed his stance to make it harder for his two elder brothers to get has been named Vice President, Commercial Development and will assume responsibility for worldwide product development and product sales. In this capacity, Dr. Thorpe Thorpe , James Francis Known as "Jim." 1888-1953. American athlete. An outstanding collegiate football player, he later played professional football and baseball. will have oversight
Oversight may refer to:
Mr. David F. Raynor has been named Vice President, Operations and will assume full responsibility for the day-to-day management of ChiRex's world-class FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. cGMP cGMP 3'5' cyclic guanosine monophosphate; essential in regulation of sodium channels of the retina. Decrease in cGMP concentration leads to hyperpolarization of the retinal membrane. manufacturing facilities. Mr. Raynor is currently Director, Operations for ChiRex and has over 20 years experience managing pharmaceutical fine chemicals manufacturing facilities. Mr. Clark added that "The new management structure will allow me to concentrate my efforts on the important relationship-building activities of ChiRex. As we grow and adapt to the rapidly-changing pharmaceutical industry, I believe it is those relationships which will differentiate us from our competitors." -0- ChiRex serves the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. needs of the pharmaceutical industry by specializing in the development, manufacture and marketing of pharmaceutical fine chemicals and, through its joint venture, InNova Pharmaceuticals, formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. . ChiRex currently produces 29 pharmaceutical products at commerical scale and manages a development portfolio of 32 pharmaceutical products in its world-class cGMP manufacturing facilities located in Dudley, England. ChiRex employs over 500 people and holds 54 patents and patent applications in the field of chiral chemistry.
ChiRex Inc.
Consolidated Income Statement
(in thousands except EPS)
Three months to Sept Nine months to Sept
1996(a) 1995(b) 1996(a) 1995(b)
Sales $ 20,337 $ 21,137 $ 64,510 $ 66,938
Licence & Royalty 225 225 830 506
Total Revenues 20,562 21,362 65,340 67,444
Cost of Sales (16,869) (18,336) (53,380) (58,690)
Gross Profit 3,693 3,026 11,960 8,754
Gross Margin 18.0% 14.2% 18.3% 13.0%
Selling, Gen & Admin (959) (2,583) (2,855) (4,188)
R & D (584) (289) (1,987) (1,787)
Operating Profit 2,150 154 7,118 2,779
% of Revenue 10.5% 0.7% 10.9% 4.1%
Goodwill (288) 0 (636) 0
EBIT 1,862 154 6,482 2,779
Interest (167) (844) (1,278) (828)
Equity Income/(Loss) (82) 0 (432) 0
Profit before Tax 1,613 (690) 4,772 1,951
Tax (633) (463) (1,878) (1,262)
Profit After Tax 980 (1,153) 2,894 689
Dividends 0 (94) (217) (94)
Net Income $ 980 $ (1,247) $ 2,677 $ 595
(excluding
non-recurring charges)
Shares Outstanding (c) 11,341 11,341 11,341 11,341
E.P.S. $0.086 $ (0.110) $ 0.236 $ 0.052
EBITDA $ 4,237 $ 1,866 $13,049 $ 8,352
% of Revenue 20.6% 8.7% 20.0% 12.4%
Less Non-Recurring
Charges:
Pre Acq ChiRex (Holdings)
Ltd Losses $ 0 $ 149
Stock Options 0 (5,286)
In-Process Development 0 (5,790)
Fair Value of Inventory
Uplift (net) 0 (1,204)
------- --------
$ 0 $(12,131)
Net Income $ 980 $ (9,454)
(Adj for non-recurring
charges)
E.P.S. $ 0.086 $ (0.834)
(a) Unaudited
(b) For purposes of financial comparison, 1995 results are based on
the pre-merger combination of the income statements of Sterling
Organics and SepraChem Inc.
(c) Shares outstanding includes the dilutive effect of stock
options, and are as of Sept. 30, 1996.
-0-
CHIREX INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) September 30 December 31
1996 1995
(unaudited) (audited)
ChiRex Inc. Crossco (157) SepraChem
ASSETS Limited Inc.
Current Assets:
Cash and cash equivalents $3,511 $7,845 $0
Trade and other receivables 10,805 8,335 546
Inventories 20,286 18,547 193
Other current assets 2,003 366 1,646
Total current assets 36,605 35,093 2,385
Property, plant and equipment,
net 57,374 44,868 307
Intangible assets, net 28,268 0 0
Total Assets $ 122,247 $ 79,961 $ 2,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 7,349 $ 5,374 $ 0
Accrued expenses 8,680 7,881 0
Income taxes payable 1,618 996 0
Deferred income taxes 0 0 0
Current portion of long-term debt 0 660 0
Total current liabilities 17,647 14,911 0
Long-term debt 9,672 40,304 0
Deferred income taxes 7,190 3,453 0
Deferred income 3,364 2,962 0
Accrued expenses 0 4,425 0
Total liabilities 37,873 66,055 0
Cumulative redeemable preferred
stock at redemption value 0 13,541 0
Stockholders' equity:
Common stock 108 173 80
Additional paid-in capital 94,625 1,560 5,064
Retained earnings (11,362) (1,201) (2,452)
Cumulative translation adjustment 1,003 (167) 0
Total stockholders' equity 84,374 365 2,692
Total liabilities and
stockholders' equity $ 122,247 $ 79,961 $ 2,692
CHIREX INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1996 AND 1995
(unaudited)
(in thousands)
Nine Months Ended
September 30
1996 1995
ChiRex Inc. Sterling SepraChem
Organics Inc.
Limited
Cash flows from operating (Inc.Crossco)
activities
Net income (loss) to common
stockholders $(9,454) $2,775 $(2,179)
Add back: Depreciation
& amortization 4,339 6,019 114
Goodwill 636 0 0
Amortization of fixed asset
uplift 313 0 0
Inventory uplift release 1,792 0 0
Write-off of in-process
research and development 5,790 0 0
Compensation related to stock
plans 5,286 0 0
Changes in assets and liabilities:
Receivables (848) (3,753) (29)
Inventories (245) 703 (111)
Other current assets (1,985) (298) (196)
Accounts payable and accrued
liabilities (1,364) 9,030 0
Income taxes payable 1,108 257 0
Other non current assets and
liabilities (182) (2,073) 210
Net cash provided from
operations 5,186 12,660 (2,191)
Cash flows from investing
activities:
Capital expenditures (2,472) (9,330) 0
Acquisition of businesses (net
of cash acquired (35,168) (51,773) 0
Net cash (used in) investing
activities (37,640) (61,103) 0
Cash flows from financing
activities:
Increase in short-term debt 0 0 1,100
Long-term debt activity (including
current portion):
Borrowings 14,595 55,314 0
Repayments (58,746) 0 0
Proceeds from the issuance of
common stock 80,024 1,723 1,091
Net cash provided from
financing activities 35,873 57,037 2,191
Effect of exchange rate changes
on cash 91 (50) 0
Net increase in cash 3,510 8,544 0
Cash at beginning of period 1 (622) 0
Cash at end of period $3,511 $7,922 $0
CONTACT: ChiRex Michael A. Griffith, 617/431-2200 |
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