AMERICAN PACIFIC CORP. REPORTS RESULTS
AMERICAN PACIFIC CORP. REPORTS RESULTS LAS VEGAS, Nov. 2 /PRNewswire/ -- American Pacific Corp.
(NASDAQ: APFC) today reported preliminary, unaudited financial results for the fiscal year ended Sept. 30, 1992.
As previously announced, the company reached a compromise settlement in September of virtually all claims arising from the May 4, 1988 incident in which its former ammonium perchlorate manufacturing facility in Henderson, Nev. was destroyed. As a result, the company recognized a non-recurring charge to earnings, after tax, of $5,490,000 in the fourth quarter. Fred D. Gibson, president and chief executive officer, stated: "Reaching the settlement of this complex litigation was a significant accomplishment. Our cash contribution represented approximately 9.6 percent of the total settlements. In concluding this matter, we eliminated a substantial drain on management's time and cleared the way for our team to concentrate, without distraction, on implementing our major strategic growth programs." Net income for the fiscal year (pre-settlement) totaled $10,908,000, an increase of 22 percent from last year's record $8,971,000. After giving effect to the one-time settlement charge, net income for fiscal 1992 amounted to $5,418,000. Revenues for the year increased to a record $63,075,000 from $61,645,000 a year ago. Net income per common share (pre-settlement) was $1.43, compared with $1.59 in the prior year, reflecting the 35 percent increase in weighted shares outstanding in the year just concluded as a result of the company's 1,812,500 common stock offering in April of 1992 as well as the issuance of warrants in its $40 million private placement of subordinated notes last February. Weighted average shares outstanding were 7,619,000 in fiscal 1992 and 5,640,000 in fiscal 1991. After the non-recurring charge for the litigation settlement, net income per share for fiscal 1992 was 71 cents. Gibson continued: "We are pleased by the results of the past year. On a pre-settlement basis, net income in dollars reached a new all-time high, and revenues also were at a record level. These gains represented another year of solid performance by our perchlorate operation. In addition, we benefited from significant revenues under our now completed $5.8 million installation of a state-of-the-art odor control system at an Akron, Ohio composting facility. "Of greater significance, the company is devoting a considerable portion of its resources and energy to launching its two major strategic programs, Halotron and sodium azide. These new products broaden the company's base as a specialty chemical company and possess substantial future revenue potential. "Sodium azide is the principal chemical used as a generant to inflate automotive airbag safety systems. Work is proceeding as scheduled toward the completion of our 6,000,000-pound capacity sodium azide facility in Iron County, Utah, with full production expected in January. Product sales for the latter part of the 1993 model year should begin shortly thereafter. Consumers have shown a strong preference for automotive airbag safety systems, and sodium azide demand is expected to outstrip capacity over the next several years. "Our Halotron fire suppressant agent and application technology addresses a substantial worldwide market opportunity for the replacement of ozone depleting halon in fire fighting systems. Recently, we announced that the U.S. Navy has completed two days of extensive tests of Halotron I. In our view, these tests were successful in all respects, conforming to the results of prior testing by the company and research institutes in the U.S. and Europe. However, we cannot provide detailed information until the military authorities issue their formal report, which is not expected until at least late November. "Also, in October, we announced our first agreement for the commercialization of Halotron in Europe through a planned joint venture with Svenska Skum AB of Sweden, a highly experienced and well regarded producer of fire suppression systems for the maritime and petrochemical industries. "We look forward to the coming year with enthusiasm, particularly as our major new ventures come on stream and begin to generate revenues." American Pacific's principal business activities consist of the production of chlorate and perchlorate chemicals, including chiefly ammonium perchlorate, the oxidizer utilized in composite solid rocket propellants employed in a large number of space and military systems, the design and manufacture of pollution control systems and industrial and commercial real estate development. The company is also actively involved in the development of two new manufacturing facilities: one to manufacture sodium azide for use in automotive airbag safety systems, and the other to produce Halotron as a replacement for ozone depleting halon in fire extinguishment systems worldwide. AMERICAN PACIFIC CORP. Condensed Financial Information (Unaudited) (In 000's, except per share data) Year ended Sept. 30, Quarter ended Sept. 30, 1992 1991 1992 1991 Revenues $63,075 $61,645 $14,259 $15,843 Operating Profit $24,560 $24,203 $5,316 $6,290 Non-recurring Item(a) $8,135 --- $8,135 --- Net Income (loss) $5,418 $8,971 ($3,042) $2,574 Net Income (loss) Per Common Share Before Non-recurring Item $1.43 --- $.27 --- After Non-recurring Item $.71 $1.59 ($.34) $.41 Weighted Average Common and Common Equivalent Shares 7,619 5,640 8,944 6,239 (a) Settlement of litigation, pre-tax Condensed Consolidated Balance Sheets (Unaudited) Sept. 30, 1992 Sept. 30, 1991 Assets $231,089,000 $147,356,000 Shareholders' Equity $102,975,000 $43,818,000 -0- 11/2/92 /CONTACT: C. Keith Rooker, executive VP of American Pacific, 702-735-2200/ (APFC) CO: American Pacific Corp. ST: California IN: CHM SU: ERN
KJ-LS -- LA004 -- 1408 11/02/92 09:18 EST
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|Date:||Nov 2, 1992|
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