LAS VEGAS, Dec. 13, 2012 /PRNewswire/ -- American
Pacific Corporation (NASDAQ: APFC) today reported financial results
for its fiscal year and fourth quarter ended September 30, 2012.
We provide non-GAAP measures as a supplement to financial
results based on GAAP. A reconciliation of the non-GAAP
measures to the most directly comparable GAAP measures is included
in the accompanying supplemental data.
Revenues and expenses associated with the Aerospace Equipment
segment operations are presented as discontinued operations for all
periods presented. See further discussion below.
FINANCIAL SUMMARY
Fiscal Year Ended September 30,
2012 Compared to Fiscal Year Ended September 30, 2011
- Revenues increased $24.9 million,
or 16%, to $185.6 million from
$160.7 million.
- Adjusted operating income increased to $27.1 million compared to $11.0 million.
- Adjusted EBITDA increased to $43.0
million compared to $28.5
million.
- Adjusted income from continuing operations was $10.1 million compared to $0.1 million.
- Adjusted diluted earnings per share from continuing operations
was $1.32 compared to $0.01.
Quarter Ended September 30,
2012 Compared to Quarter Ended September 30, 2011
- Revenues decreased $18.1 million
to $49.6 million from $67.7 million.
- Adjusted operating income decreased to $8.6 million compared to $18.2 million.
- Adjusted EBITDA decreased to $13.7
million compared to $22.1
million.
- Adjusted income from continuing operations was $4.0 million compared to $11.0 million.
- Adjusted diluted earnings per share from continuing operations
was $0.52 compared to $1.44.
Results for the periods presented for the years ended
September 30, 2012 and 2011 ("Fiscal
2012" and "Fiscal 2011", respectively) include other charges, gains
and deferred tax valuation adjustments that have been excluded from
the computations of adjusted operating income, adjusted income
(loss) from continuing operations and adjusted diluted earnings
(loss) per share from continuing operations. The adjusted results
have been provided to facilitate comparisons between Fiscal 2012
and Fiscal 2011. See further discussion of the adjusting
items below.
The following table reconciles each adjusted result to the most
directly comparable GAAP measure (dollars in thousands except per
share amounts).
|
|
Income
|
Diluted Earnings
|
|
|
(Loss) from
|
(Loss) per Share
|
|
Operating
|
Continuing
|
from Continuing
|
|
Income
|
Operations
|
Operations
|
Fiscal 2012
|
|
|
|
|
As
Reported
|
$
28,098
|
$
20,332
|
$
2.65
|
|
Remediation Charge
|
700
|
420
|
0.05
|
|
Other Operating Gains
|
(1,714)
|
(1,028)
|
(0.13)
|
|
Loss
on Debt Extinguishment
|
-
|
838
|
0.11
|
|
Deferred Tax Asset Valuation
Allowance
|
-
|
(10,420)
|
(1.36)
|
|
As
Adjusted
|
$
27,084
|
$
10,142
|
$
1.32
|
|
|
|
|
Fiscal 2011
|
|
|
|
|
As
Reported
|
$
7,885
|
$
(9,379)
|
$
(1.25)
|
|
Remediation Charge
|
6,000
|
3,600
|
0.48
|
|
Other Operating Gains
|
(2,929)
|
(1,757)
|
(0.23)
|
|
Deferred Tax Asset Valuation
Allowance
|
-
|
7,628
|
1.01
|
|
As
Adjusted
|
$
10,956
|
$
92
|
$
0.01
|
|
|
|
|
|
|
|
|
Fiscal 2012 Fourth
Quarter
|
|
|
|
|
As
Reported
|
$
9,561
|
$
14,178
|
$
1.83
|
|
Remediation Charge
|
700
|
420
|
0.05
|
|
Other Operating Gains
|
(1,700)
|
(1,020)
|
(0.13)
|
|
Loss
on Debt Extinguishment
|
-
|
838
|
0.11
|
|
Deferred Tax Asset Valuation
Allowance
|
-
|
(10,420)
|
(1.34)
|
|
As
Adjusted
|
$
8,561
|
$
3,996
|
$
0.52
|
|
|
|
|
Fiscal 2011 Fourth
Quarter
|
|
|
|
|
As
Reported
|
$
18,223
|
$
3,345
|
$
0.44
|
|
Deferred Tax Asset Valuation
Allowance
|
-
|
7,628
|
1.00
|
|
As
Adjusted
|
$
18,223
|
$
10,973
|
$
1.44
|
|
|
|
|
|
CONSOLIDATED RESULTS OF OPERATIONS
Revenues – For Fiscal 2012, revenues increased 16%
to $185.6 million as compared to
$160.7 million for Fiscal 2011,
reflecting revenue increases from each of our operating
segments. For the Fiscal 2012 fourth quarter, revenues
decreased 27% to $49.6 million from
$67.7 million for the Fiscal 2011
fourth quarter. The decrease is associated with a change in
the inter-quarter timing of Specialty Chemicals segment revenues in
Fiscal 2012 as compared to Fiscal 2011. See further discussion
below under Segment Highlights.
Cost of Revenues and Gross Profit – Fiscal 2012 cost of
revenues was $119.5 million compared
to $113.9 million for Fiscal 2011.
The Fiscal 2012 consolidated gross margin was 36% compared to 29%
for Fiscal 2011. Fiscal 2012 fourth quarter cost of
revenues was $30.2 million compared
to $40.4 million for the Fiscal 2011
fourth quarter. The Fiscal 2012 fourth quarter consolidated gross
margin was 39% compared to 40% for the Fiscal 2011 fourth quarter.
On a consolidated level, one of the most significant factors that
affects, and should continue to affect, the comparison of our
consolidated gross profit and gross margin from period to period is
the change in revenue mix among our segments. The revenue
contribution by each of our segments is indicated in the following
table.
|
Quarter Ended September 30,
|
Year
Ended September 30,
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
Fine
Chemicals
|
67%
|
43%
|
60%
|
56%
|
Specialty
Chemicals
|
29%
|
53%
|
37%
|
42%
|
Other
Businesses
|
4%
|
4%
|
3%
|
2%
|
Total
Revenues
|
100%
|
100%
|
100%
|
100%
|
See further discussion of gross profit and gross margin at the
segment levels under the heading Segment Highlights.
Operating Expenses – Fiscal 2012 operating expenses
increased $3.2 million to
$39.1 million compared to
$35.9 million for Fiscal 2011.
For the Fiscal 2012 fourth quarter, operating expenses were
$10.9 million compared to
$9.0 million for the Fiscal 2011
fourth quarter. Both increases relate to the Fine
Chemicals segment, and, in particular to incentive compensation
that was earned based on the segment's improved performance in
Fiscal 2012. See further discussion below under Segment
Highlights.
Environmental Remediation Charges – In September 2012, we commenced initial operation of
the expansion project at our groundwater remediation site in
Henderson, Nevada. Related
system optimization and other start-up activities will continue
into the early months of the year ending September 30, 2013 ("Fiscal 2013").
In September 2012, we recorded an
additional remediation charge in the amount of $0.7 million, which is substantially attributed
to the true-up of estimates to the expected final cost of the
expansion project.
Fiscal 2011 includes an environmental remediation charge of
$6.0 million that resulted
substantially from an increase in our estimated cost of capital
equipment to expand our remediation activities in Henderson, Nevada.
Other Operating Gains – During Fiscal 2012 and Fiscal
2011, our Fine Chemicals segment reported other operating gains of
$1.7 million and $2.9 million, respectively, that resulted from
the resolution of gain contingencies. The reported gains are
comprised of the following two matters.
Our Fine Chemicals segment is undertaking several mandatory
capital projects. Certain of the capital activities are
complete and others are in progress or otherwise expected to be
completed during Fiscal 2013. In connection with these
projects, our Fine Chemicals segment held, and continues to hold,
negotiations with the former owner of its facilities. During
Fiscal 2012 and Fiscal 2011, we received from the former owner cash
consideration in the amount of $1.7
million and $0.2 million,
respectively, for a limited release of liability of the former
owner with respect to completed projects.
We made a series of filings with the County of Sacramento, California, to appeal the assessed
values in prior years of our real and personal property located at
our Fine Chemicals segment's Rancho
Cordova, California facility. During Fiscal 2011, we
received $2.7 million for cash
property tax refunds resulting from our appeals and the related
favorable reassessment of historical property
values.
Discontinued Operations – In May
2012, our board of directors approved and we committed to a
plan to sell our Aerospace Equipment segment, or AMPAC-ISP.
The divestiture is a strategic shift that allows us to place more
focus on the growth and performance of our pharmaceutical-related
product lines.
On June 4, 2012, we entered into
an Asset Purchase Agreement with Moog Inc. ("Moog") (the "Asset
Purchase Agreement"), pursuant to which we sold to Moog
substantially all of the assets of Ampac-ISP Corp., including all
of the equity interests in its foreign subsidiaries (collectively,
the "Purchased Assets"). Additionally, Moog assumed certain
liabilities related to the operations and the Purchased
Assets. The transaction was completed effective August 1, 2012.
Under the terms of the Asset Purchase Agreement, the total
consideration was approximately $46.0
million (the "Purchase Price") in cash. In addition,
$4.0 million of the Purchase Price
(the "Escrow Amount") will be held in an escrow account for 15
months following the closing of the transaction (the "Escrow
Period") and applied towards our indemnification obligations in
favor of Moog, if any. The Asset Purchase Agreement provides
that we, subject to certain limitations, indemnify Moog for damages
and losses incurred or suffered by Moog as a result of, among other
things, breaches of our respective representations, warranties and
covenants contained in the Asset Purchase Agreement as well as any
of the liabilities that we retain. The balance of the Escrow
Amount remaining at the end of the Escrow Period shall be released
to us. We have accounted for the Escrow Amount as a
contingent gain, and accordingly have deferred recognition of the
amount until all contingencies have lapsed or been
resolved.
Revenues and expenses associated with the operations of
AMPAC-ISP are presented as discontinued operations for all periods
presented. Summarized financial information for AMPAC-ISP is
as follows (dollars in thousands):
|
|
|
Quarter
Ended September 30,
|
Year Ended
September 30,
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
Revenues
|
$
3,832
|
$
13,012
|
$
44,039
|
$
48,941
|
Discontinued Operations:
|
|
|
|
|
Operating income before tax
|
$
557
|
$
589
|
$
643
|
$
3,328
|
Income tax provision
|
177
|
174
|
506
|
1,185
|
Net income from discontinued
operations
|
380
|
415
|
137
|
2,143
|
Gain on
Sale fo Discontinued Operations
|
|
|
|
|
Gain on sale of discontinued
operations before tax
|
5,059
|
-
|
5,059
|
-
|
Income tax provision
|
209
|
-
|
209
|
-
|
Net gain on sale of discontinued
operations
|
4,850
|
-
|
4,850
|
-
|
|
$
5,230
|
$
415
|
$
4,987
|
$
2,143
|
SEGMENT HIGHLIGHTS
Fine Chemicals Segment
Our Fine Chemicals segment reflects the operating results of our
wholly-owned subsidiaries Ampac Fine Chemicals LLC and AMPAC Fine
Chemicals Texas, LLC (collectively, "AFC").
As discussed above under the heading "Other Operating Gains",
our Fine Chemicals segment operating income (loss) for certain
Fiscal 2012 and Fiscal 2011 periods includes other gains. To
facilitate comparison of the Fiscal 2012 and Fiscal 2011 operating
results, the following table (dollars in thousands) computes
adjusted segment operating income (loss) and adjusted segment
operating margin which excludes these gains.
|
Quarter Ended September 30,
|
Year
Ended September 30,
|
|
2012
|
2011
|
2012
|
2011
|
Segment Operating Income (Loss), as
reported
|
5,639
|
(1,360)
|
8,678
|
(6,283)
|
Exclude Other Operating Gains
|
(1,700)
|
-
|
(1,714)
|
(2,929)
|
Segment Operating Income (Loss), as
adjusted
|
3,939
|
(1,360)
|
6,964
|
(9,212)
|
Operating Margin, as adjusted
|
12%
|
(5%)
|
6%
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
Year Ended September 30,
2012 Compared to Year Ended September
30, 2011
- Revenues increased 25% to $111.5
million compared to $89.5
million.
- Adjusted operating income was $7.0
million compared to an adjusted operating loss of
$9.2 million.
- Segment EBITDA was $20.6 million
compared to $6.2 million.
Quarter Ended September 30,
2012 Compared to Quarter Ended September 30, 2011
- Revenues increased 15% to $33.1
million compared to $28.7
million.
- Adjusted operating income was $3.9
million compared to an operating loss of $1.4 million.
- Segment EBITDA was $8.7 million
compared to $1.7 million.
Fine Chemicals segment revenues increased 25% in Fiscal 2012 as
compared to Fiscal 2011, led by strong anti-viral product revenues.
Compared to Fiscal 2011, anti-viral products revenues increased 94%
for Fiscal 2012. Anti-viral products revenues in the Fiscal
2011 periods were at reduced levels due to a gap between production
campaigns for a particular product. Production of this
product resumed in early calendar 2011 under a renewed three-year
agreement resulting in a significant increase in anti-viral
products revenues in Fiscal 2012.
Revenues from our Central Nervous System ("CNS") products
increased 54% compared to Fiscal 2011 reflecting improved pricing
and favorable volumes. During Fiscal 2012 we renewed the
production contract for the primary group of products within this
therapeutic indication. The new contract has a five-year
term, favorable pricing as compared to the prior contract, and
contains minimum purchase requirements for our
customer.
The increases in anti-viral and CNS products revenues were
offset somewhat by lower oncology products revenues. During
the later part of Fiscal 2012, we began to recognize revenue from
the commercial production of three new products with oncology
indications. The introduction of new commercial products is
an important achievement for this segment. Nonetheless, the
Fiscal 2012 initial revenues for these new products did not fully
replace revenue declines from our legacy oncology product.
Our legacy oncology product is an active pharmaceutical ingredient
for a drug facing generic competition and, as a result, is
experiencing volume and related revenue declines. We anticipate
volume for these new products, and products currently considered
development products, to grow and replace or exceed revenues from
mature oncology products in the coming years. The
introduction of these new products into our commercial product
lines is an example of how our emphasis on our pipeline of
development products can result in a successful replacement cycle
for maturing products.
Development products are products which are not yet
commercialized, and products which are commercial but for which we
are not a current commercial producer. Development product
revenues were approximately $19.8
million in Fiscal 2012 compared to approximately
$21.1 million in Fiscal 2011.
The small variance in revenues reflects project timing.
Typically, development product activities are the source of
developing new long-term customer relationships and often lead to
future core products. The products categorized as development
products are used by our customers primarily for drugs with
indications in anti-viral, CNS, oncology and pain management.
The Fine Chemicals segment returned to profitability during
Fiscal 2012, reporting adjusted operating income of $7.0 million compared to an adjusted operating
loss of $9.2 million in Fiscal
2011. Fine Chemicals segment gross margin improved by 16
points in Fiscal 2012 as compared to Fiscal 2011. Our Fine
Chemicals segment has dedicated significant efforts over the last
two years to improving the efficiency of its manufacturing
activities. Redesigned key processes are now yielding
targeted throughput rates. Other efficiencies and cost
savings initiatives, such as solvent recycling, have been
implemented. These actions, along with improved overhead absorption
due to the higher production volumes, have resulted in increased
gross margin for all major product categories in our Fine Chemicals
segment.
Improvements in gross profit for Fiscal 2012 periods were offset
by increases in general and administrative expenses of
approximately $3.2 million. The
higher general and administrative expenses include approximately
$2.2 million of incentive
compensation which is based on the segment's improved
performance. Incentive compensation was zero in Fiscal
2011. Fiscal 2012 also includes higher insurance and
retirement benefits related expenses.
For the Fiscal 2012 fourth quarter, Fine Chemicals segment
revenues increased 15% to $33.1
million compared to $28.7
million. The factors that resulted in variances in
Fiscal 2012 fourth quarter revenues, when compared to the prior
year fourth quarter, are consistent with factors that affected the
full year performance. Anti-viral products revenues increased
22% and CNS product revenues increased 78%. These increases
were offset, in part, by declines in oncology product revenues and
the timing of development product revenues. Similarly, the
Fine Chemicals segment reported adjusted operating income of
$3.9 million for the Fiscal 2012
fourth quarter compared to an adjusted operating loss of
$1.4 million for the Fiscal 2011
fourth quarter. Gross margin for the Fiscal 2012 fourth
quarter period improved by 21 points, offset by increases in
incentive compensation, which was zero in the Fiscal 2011 fourth
quarter.
Specialty Chemicals Segment
Our Specialty Chemicals segment revenues include the operating
results from our perchlorate, sodium azide and Halotron product
lines, with our perchlorate product lines comprising 88% and 89% of
Specialty Chemicals segment revenues in Fiscal 2012 and Fiscal
2011, respectively.
Year Ended September 30,
2012 Compared to Year Ended September
30, 2011
- Revenues increased to $68.5
million from $66.9
million.
- Operating income was $34.9
million compared to $35.6
million.
- Segment EBITDA was $36.3 million
compared to $36.7 million.
Quarter Ended September 30,
2012 Compared to Quarter Ended September 30, 2011
- Revenues decreased to $14.3
million from $36.1
million.
- Operating income was $8.3 million
compared to $23.7 million.
- Segment EBITDA was $8.6 million
compared to $24.3 million.
The variance in Specialty Chemicals segment revenues reflects
the following factors:
- A 10% decrease in perchlorate volume offset by a 13% increase
in the related average price per pound for Fiscal 2012.
- Sodium azide revenues increased 8% in Fiscal 2012 as compared
to Fiscal 2011.
- Halotron revenues decreased 1% in Fiscal 2012 as compared to
Fiscal 2011.
The decrease in total perchlorate volume for Fiscal 2012 is
primarily due to a 39% decline in volume for our lower-priced, non
rocket-grade perchlorates. Rocket-grade AP volume increased
in Fiscal 2012, supported by the return in Fiscal 2012 of
quantities for development motors for the National Aeronautics and
Space Administration ("NASA") Heavy Lift Vehicle which is part of
the new Space Launch System. Tactical and strategic missile
related demand remained stable. The increase in the average
price per pound for Fiscal 2012 is a result of a change in product
mix. The Fiscal 2012 periods include a smaller volume of our
lower-priced perchlorate products. The average price per
pound of rocket-grade perchlorate was consistent between the Fiscal
2012 and Fiscal 2011 periods.
For the Fiscal 2012 fourth quarter, Specialty Chemicals segment
revenues declined when compared to the Fiscal 2011 fourth quarter
due to the timing of inter-quarter revenues. Rocket-grade AP
revenues are typically derived from relatively few large
orders. As a result, quarterly revenue amounts can vary
significantly depending on the timing of individual orders
throughout the year. The quarterly timing is typically
determined by our customers' delivery requirements. In Fiscal
2012, Specialty Chemicals segment revenues occurred more evenly
across the four quarterly periods than it did in Fiscal 2011.
Revenues for the Fiscal 2012 fourth quarter represented 21% of
Fiscal 2012 annual revenue compared to Fiscal 2011 when the fourth
quarter accounted for 54% of annual revenue.
The increase in sodium azide revenues in Fiscal 2012 is due
primarily to fluctuation in demand for sodium azide used in
pharmaceutical applications. We do not anticipate a significant
increase in demand for sodium azide in Fiscal 2013. The minor
variances in Halotron revenues are driven by volume changes which
have been and are expected to be relatively consistent year over
year.
Our Specialty Chemicals segment reported operating income of
$34.9 million and operating margin of
51% for Fiscal 2012 compared to operating income of $35.6 million and operating margin of 53% for
Fiscal 2011. The operating margin declined in Fiscal 2012
when compared to the atypically high operating margin generated in
Fiscal 2011. Fiscal 2012 product mix reflects a more typical
mix of re-determinable and firm fixed-price orders. As a
result, gross margin declined three percentage points from Fiscal
2011. Specialty Chemicals segment operating expenses were
consistent between Fiscal 2012 and Fiscal 2011.
CAPITAL AND LIQUIDITY HIGHLIGHTS
Liquidity – As of September 30,
2012, we had cash balances of $31.2
million and no borrowings against our asset based lending
credit facility.
Operating Cash Flows – Operating activities
provided cash of $11.6 million for
Fiscal 2012 compared to providing cash of $20.7 million for Fiscal 2011.
Significant components of the change in cash flow from operating
activities include:
- An increase in cash provided by Adjusted EBITDA of $14.6 million.
- A decrease in cash provided by working capital accounts of
$19.6 million, excluding the effects
of interest and income taxes.
- A decrease in cash income taxes refunded of $3.1 million.
- An increase in cash used to fund pension obligations of
$2.5 million.
- An increase in cash used for environmental remediation of
$6.4 million.
- An increase in cash paid for interest and debt extinguishment
costs of approximately $1.3
million.
- Other increases in cash provided by operating activities,
primarily discontinued operations, of approximately $9.2 million.
The decrease in cash provided by working capital accounts
relates primarily to changes in customer deposits. In
March 2011, the Specialty Chemicals
segment received an atypically high customer deposit that resulted
from favorable contract terms. This did not recur in Fiscal
2012. Remaining variances in working capital are within our
customary ranges, including an increase in Fine Chemicals segment
inventory at September 30,
2012.
During Fiscal 2011, we received income tax refunds from federal
income tax carryback claims. This did not recur in Fiscal
2012, resulting in a decrease in income tax refunds when comparing
the periods.
During Fiscal 2012 we spent $10.1
million for remediation activities compared to $3.7 million in Fiscal 2011. The increase
reflects cash used for the capital elements of the Henderson, Nevada expansion project.
During Fiscal 2012 and Fiscal 2011, we made payments to fund
defined benefit pension obligations at 80% of the obligation.
In Fiscal 2012, the company contribution needed to meet this
funding level increased because the return on pension plan assets
in the preceding year was not sufficient to maintain our target
funding requirements.
Cash used by discontinued operations working capital accounts
decreased because these operations did not experience the same
working capital requirements in Fiscal 2012 (prior to their
divestiture) as they experienced in Fiscal 2011.
We consider the working capital changes to be routine and within
the normal production cycle of our products. The production
of most fine chemical products requires a length of time that
exceeds one quarter. In any given quarter, accounts receivable,
work-in-progress inventory or deferred revenues and customer
deposits can increase or decrease significantly. We expect
that our working capital may vary normally by as much as
$10.0 million from quarter to
quarter.
Investing Cash Flows – Capital expenditures of
$8.8 million for Fiscal 2012 reflect
a decrease from Fiscal 2011 of $3.1
million. During Fiscal 2012, our Fine Chemicals
segment required less investment in capital equipment associated
with new products and contracts. Maintenance capital spending
was consistent between Fiscal 2012 and Fiscal 2011.
As discussed above under the heading "Discontinued Operations",
effective on August 1, 2012, we sold
our Aerospace Equipment segment. Total consideration was
$46 million, of which $4.0 million will be held in an escrow account
for 15 months following the close of the transaction. After
reducing the total consideration by the amount placed in escrow,
cash sold with the foreign entities, and transaction expenses, the
net proceeds to us during Fiscal 2012 were $37.4 million.
Financing Cash Flows – On August
9, 2012, we called $40.0
million of the outstanding principal amount of the Senior
Notes. On September 10, 2012 we
completed the redemption, using net cash proceeds from the sale of
AMPAC-ISP and available cash balances. The redemption price
for the Notes was 102.25% of the principal amount of the Notes
being redeemed, plus accrued and unpaid interest to the redemption
date. The transaction resulted in a net loss on debt
retirement of $1.4 million, which
includes the call premium of $0.9
million, unamortized debt issuances costs and other expenses
of $0.5 million.
October 2012 Refinancing –
In October 2012, we called and
terminated our remaining senior notes with an aggregate principal
amount of $65.0 million and replaced
the notes with a credit facility that includes a $60.0 million term loan and a committed
$25.0 million revolving credit
line. Funds used to call the notes of $68.3 million were provided by the net proceeds
from the term loan and available cash balances. The term loan
requires quarterly principal and interest payments, which differs
from the senior notes which had no principal amortization
requirements. We do not anticipate that the principal payment
requirements of the new facility will have a significant impact on
our liquidity because we expect that the cash requirements for
principal payments will be substantially offset by lower interest
expense.
OUTLOOK
For Fiscal 2013, we expect consolidated revenues of at least
$200.0 million, which is an expected
increase of approximately 8% from Fiscal 2012. The expected
increase in Fiscal 2013 revenues reflects the following:
- Fine Chemicals segment revenues are anticipated to increase in
Fiscal 2013 by a range of approximately 5% to 10% compared to
Fiscal 2012, supported by expected growth in revenues from
development products and new core products that were introduced in
Fiscal 2012.
- Specialty Chemicals segment revenues are expected to increase
in Fiscal 2013 by approximately 10%. This segment is
currently performing under several non-recurring development
projects that should contribute to the expected revenue increase in
Fiscal 2013. The core products for this segment are expected
to continue to perform within their historical stable range.
Our guidance for Fiscal 2013 Adjusted EBITDA is at least
$43.0 million, which is an expected
increase of approximately 4% from Fiscal 2012 Adjusted EBITDA,
excluding other operating gains of $1.7
million. Product gross margins and operating expenses
are expected to be relatively consistent and/or improve slightly in
Fiscal 2013 as compared to Fiscal 2012. One meaningful
exception is our expected pension expense. We forecast the
actuarial value of pension expense in Fiscal 2013 to be
approximately $9.7 compared to
$7.0 million in Fiscal 2012.
Due to the prevailing interest rate market conditions and the
application of pension accounting principles, we substantially
lowered the discount rate used to determine the actuarial value of
our pension obligation as of September
30, 2012. Lowering our discount rate as of the end of
our fiscal year has the corresponding effect in the subsequent year
of increasing our actuarial value of pension expense and decreasing
Adjusted EBITDA.
Our Fiscal 2013 Adjusted EBITDA guidance is exclusive of any
incremental costs that we may incur in the events that may arise
from the matters disclosed in the Schedule 13D and amendments
thereto filed by our stockholder Cornwall Master LP.
A substantial portion of our anticipated revenues for Fiscal
2013 is currently in our backlog. However, the timing of our
customer product requirements is anticipated to result in a Fiscal
2013 quarterly trend that is heavily weighted toward the latter
half of Fiscal 2013. Our current expectation of product mix
and shipment schedules should result in approximately 60% of our
Fiscal 2013 revenues occurring in the second half of Fiscal 2013
and approximately 70% of our Fiscal 2013 Adjusted EBITDA occurring
in our Fiscal 2013 fourth quarter. Several of our customer
contracts, that are expected to contribute to our Fiscal 2013
fourth quarter Adjusted EBITDA, include advance payments and
customer deposits which will generate cash flow for us well in
advance of the revenue and profit recognition. As such, our
Fiscal 2013 liquidity is not expected to be impacted by the
year-end weighting of our revenues and profits. In addition, in
connection with the redemption of our senior notes in October 2012, we incurred additional cost of
approximately $2.7 million, which is
comprised of the call premium and the write-off of unamortized debt
issuance costs. As a result, for our Fiscal 2013 first
quarter we expect to report a small net loss.
We are anticipating our capital expenditures, which do not
include environmental remediation spending, for Fiscal 2013 to
range from approximately $12.0
million to approximately $14.0
million. During Fiscal 2013 we plan to make
investments to expand our mid-range production capacity for our
Fine Chemicals segment.
Our Fiscal 2013 guidance for Adjusted EBITDA is computed by
adding estimated amounts for depreciation and amortization of
$14.0 million, interest expense of
$5.5 million, share-based
compensation expense and other items of $1.0
million and income taxes of $9.0
million to estimated net income of $13.5 million.
INVESTOR TELECONFERENCE
We invite you to participate in a teleconference with our
executive management covering our Fiscal 2012 financial results.
The investor teleconference will be held Thursday, December 13, 2012, at 1:30 p.m., Pacific Standard Time. The
teleconference will include a presentation by management followed
by a question and answer session. The teleconference can be
accessed by dialing 800-264-7882 between
1:15 and 1:30 p.m., Pacific Standard Time. Please
reference passcode #33898945. As is our customary practice, a
live webcast of the teleconference is being provided by Thomson
Reuters. Links to the webcast and the earnings release are
available in the Investors section of our website at www.apfc.com,
and will be available for replay until a few days before our next
quarterly investor teleconference.
RISK FACTORS/FORWARD-LOOKING STATEMENTS
The unaudited financial results included in this release are
preliminary. Statements contained in this earnings release that are
not purely historical are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including without limitation the
statement regarding the impact that change in revenue mix among our
segments will have on comparisons of our consolidated gross profit
and gross margin in the future, statements regarding our
expectations for product revenues, sales volumes, working capital
and capital expenditures, statements regarding the impact of
process improvements and other efficiency and cost savings
initiatives, statements regarding the timing of system optimization
and other start-up activities related to our environmental
remediation efforts, statements regarding the impact of the timing
of individual orders on quarterly revenues with respect our
Specialty Chemicals segment, statements regarding development
product activities being the source for long-term customer
relationships and future core products, statements regarding our
ability to develop products to replace maturing products,
statements regarding our ability to focus on the growth and
performance of our pharmaceutical-related product lines following
the sale of our Aerospace Equipment segment and the statements in
the "Outlook" section of this earnings release. Words such as
"expect", "anticipate", "should", "future" and similar expressions
are intended to identify forward-looking statements. The
inclusion of forward-looking statements should not be regarded as a
representation by us that any of our expectations will be
achieved. Actual results may differ materially from future
results or outcomes expressed or implied by forward-looking
statements set forth in the release due to risks, uncertainties and
other important factors inherent in our business. Factors
that might cause actual results to differ include, but are not
limited to, the actual placement, timing and delivery of orders for
new and/or existing products as well as the following:
- We depend on a limited number of customers for most of our
sales and the loss of one or more of these customers could have a
material adverse effect on our financial position, results of
operations and cash flows.
- The inherent limitations of our fixed-price or similar
contracts on our profitability.
- The numerous and often complex laws and regulations and
regulatory oversight to which our operations and properties are
subject, the cost of compliance, and the effect of any failure to
comply on our profitability and liquidity.
- A significant portion of our business is based on contracts
with contractors or subcontractors to the U.S. government and these
contracts are impacted by governmental priorities and are subject
to potential fluctuations in funding or early termination,
including for convenience, any of which could have a material
adverse effect on our operating results, financial condition or
cash flows.
- We may be subject to potentially material costs and
liabilities in connection with environmental or health
matters.
- Although we have established an environmental reserve for
remediation activities in Henderson,
Nevada, given the many uncertainties involved in assessing
environmental liabilities, our environmental-related risks may from
time to time exceed any related reserves.
- For each of our Specialty Chemicals and Fine Chemicals
segments, most production is conducted in a single facility and any
significant disruption or delay at a particular facility could have
a material adverse effect on our business, financial position and
results of operations.
- The release or explosion of dangerous materials used in our
business could disrupt our operations and cause us to incur
additional costs and liabilities.
- Disruptions in the supply of key raw materials and
difficulties in the supplier qualification process, as well as
increases in prices of raw materials, could adversely impact our
operations.
- Each of our Specialty Chemicals and Fine Chemicals segments
may be unable to comply with customer specifications and
manufacturing instructions or may experience delays or other
problems with existing or new products, which could result in
increased costs, losses of sales and potential breach of customer
contracts.
- Successful commercialization of pharmaceutical products and
product line extensions is very difficult and subject to many
uncertainties. If a customer is not able to successfully
commercialize its products for which AFC produces compounds or if a
product is subsequently recalled, then the operating results of AFC
may be negatively impacted.
- A strike or other work stoppage, or the inability to renew
collective bargaining agreements on favorable terms, could have a
material adverse effect on the cost structure and operational
capabilities of AFC.
- The pharmaceutical fine chemicals industry is a
capital-intensive industry and if AFC does not have sufficient
financial resources to finance the necessary capital expenditures,
its business and results of operations may be harmed.
- We may be subject to potential liability claims for our
products or services that could affect our earnings and financial
condition and harm our reputation.
- Technology innovations in the markets that we serve may
create alternatives to our products and result in reduced
sales.
- We are subject to strong competition in certain industries
in which we participate and therefore may not be able to compete
successfully.
- Due to the nature of our business, our sales levels may
fluctuate causing our quarterly operating results to
fluctuate.
- The inherent volatility of the chemical industry affects our
capacity utilization and causes fluctuations in our results of
operations.
- A loss of key personnel or highly skilled employees, or the
inability to attract and retain such personnel, could disrupt our
operations or impede our growth.
- We may continue to expand our operations through
acquisitions, but the acquisitions could divert management's
attention and expose us to unanticipated liabilities and costs. We
may experience difficulties integrating the acquired operations,
and we may incur costs relating to acquisitions that are never
consummated.
- We have a substantial amount of debt, and the cost of
servicing that debt could adversely affect our ability to take
actions, our liquidity or our financial condition.
- We are obligated to comply with various ongoing covenants in
our debt, which could restrict our operations, and if we should
fail to satisfy any of these covenants, the payment under our debt
could be accelerated, which would negatively impact our
liquidity.
- Significant changes in discount rates, rates of
return on pension assets and other factors could affect our
estimates of pension obligations, which in turn could affect future
funding requirements, related costs and our future financial
condition, results of operations and cash flows.
- Our suspended stockholder rights plan, Restated Certificate
of Incorporation, as amended, and Amended and Restated By-laws
discourage unsolicited takeover proposals and could prevent
stockholders from realizing a premium on their common
stock.
- Our proprietary and intellectual property rights may be
violated, compromised, circumvented or invalidated, which could
damage our operations.
- Our business and operations would be adversely impacted in
the event of a failure of our information technology
infrastructure.
- Our common stock price may fluctuate substantially, and a
stockholder's investment could decline in value.
Readers of this earnings release are referred to our Annual
Report on Form 10-K for Fiscal 2011, our Quarterly Reports on Form
10-Q, including for the quarter ended June
30, 2012 and our other filings with the Securities and
Exchange Commission for further discussion of these and other
factors that could affect our future results. The forward-looking
statements contained in this earnings release are made as of the
date hereof, and we assume no obligation to update for actual
results or to update the reasons why actual results could differ
materially from those projected in the forward-looking statements,
except as required by law. In addition, the operating results
for the quarter and year ended September 30,
2012 and cash flows for the year ended September 30, 2012 are not necessarily indicative
of the results that will be achieved for future periods.
ABOUT AMERICAN PACIFIC CORPORATION
American Pacific Corporation (AMPAC) is a leading custom
manufacturer of fine chemicals and specialty chemicals within its
focused markets. We supply active pharmaceutical ingredients
and advanced intermediates to the pharmaceutical industry.
For the aerospace and defense industry we provide specialty
chemicals used in solid rocket motors for space launch and military
missiles. We produce clean agent chemicals for the fire
protection industry, as well as electro-chemical equipment for the
water treatment industry. Our products are designed to meet
customer specifications and often must meet certain governmental
and regulatory approvals. Additional information about us can be
obtained by visiting our web site at www.apfc.com.
AMERICAN PACIFIC CORPORATION
|
Condensed Consolidated Statements of
Operations
|
(Unaudited, Dollars in Thousands, Except per Share
Amounts)
|
|
|
|
|
|
|
|
Three
Months Ended
September 30,
|
Year
Ended
September 30,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
Revenues
|
|
$
49,601
|
$
67,688
|
$
185,627
|
$
160,714
|
Cost of
Revenues
|
|
30,186
|
40,441
|
119,477
|
113,863
|
|
Gross
Profit
|
|
19,415
|
27,247
|
66,150
|
46,851
|
Operating
Expenses
|
|
10,854
|
9,024
|
39,066
|
35,895
|
Environmental Remediation Charge
|
|
700
|
-
|
700
|
6,000
|
Other
Operating Gains
|
|
1,700
|
-
|
1,714
|
2,929
|
|
Operating
Income
|
|
9,561
|
18,223
|
28,098
|
7,885
|
Interest
and Other Income (Expense), Net
|
|
14
|
7
|
38
|
235
|
Interest
Expense
|
|
2,349
|
2,593
|
10,173
|
10,514
|
Loss on
Debt Extinguishment
|
|
1,397
|
-
|
1,397
|
-
|
|
Income
(Loss) from Continuing
|
|
|
|
|
|
|
Operations before Income Tax
|
|
5,829
|
15,637
|
16,566
|
(2,394)
|
Income Tax
Expense (Benefit)
|
|
(8,349)
|
12,292
|
(3,766)
|
6,985
|
|
Income
(Loss) from Continuing Operations
|
|
14,178
|
3,345
|
20,332
|
(9,379)
|
Income
from Discontinued
|
|
|
|
|
|
Operations, Net of Tax
|
|
5,230
|
415
|
4,987
|
2,143
|
Net Income
(Loss)
|
|
$
19,408
|
$
3,760
|
$
25,319
|
$
(7,236)
|
|
|
|
|
|
|
|
Basic
Earnings (Loss) Per Share:
|
|
|
|
|
|
|
Income
(Loss) from Continuing Operations
|
|
$
1.87
|
$
0.44
|
$
2.69
|
$
(1.25)
|
|
Income
from Discontinued
|
|
|
|
|
|
|
Operations, Net of Tax
|
|
$
0.69
|
$
0.06
|
$
0.66
|
$
0.29
|
|
Net Income
(Loss)
|
|
$
2.56
|
$
0.50
|
$
3.35
|
$
(0.96)
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share:
|
|
|
|
|
|
|
Income
(Loss) from Continuing Operations
|
|
$
1.83
|
$
0.44
|
$
2.65
|
$
(1.25)
|
|
Income
from Discontinued
|
|
|
|
|
|
|
Operations, Net of Tax
|
|
$
0.67
|
$
0.05
|
$
0.65
|
$
0.29
|
|
Net Income
(Loss)
|
|
$
2.50
|
$
0.49
|
$
3.30
|
$
(0.96)
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
7,574,000
|
7,528,000
|
7,554,000
|
7,517,000
|
|
Diluted
|
|
7,759,000
|
7,610,000
|
7,663,000
|
7,517,000
|
AMERICAN PACIFIC CORPORATION
|
Condensed Consolidated Balance
Sheets
|
(Unaudited, Dollars in Thousands, Except per Share
Amounts)
|
|
|
|
September 30,
|
|
2012
|
2011
|
ASSETS
|
|
|
Current
Assets:
|
|
|
|
Cash and
Cash Equivalents
|
$
31,182
|
$
30,703
|
|
Accounts
Receivable, Net
|
24,211
|
46,356
|
|
Inventories
|
44,157
|
39,154
|
|
Prepaid
Expenses and Other Assets
|
1,477
|
4,141
|
|
Income
Taxes Receivable
|
2
|
161
|
|
Deferred
Income Taxes
|
13,028
|
7,532
|
|
|
Total
Current Assets
|
114,057
|
128,047
|
Property,
Plant and Equipment, Net
|
103,316
|
112,232
|
Intangible
Assets, Net
|
-
|
585
|
Goodwill
|
-
|
2,930
|
Deferred
Income Taxes
|
20,796
|
14,788
|
Other
Assets
|
8,295
|
10,068
|
|
|
TOTAL
ASSETS
|
$
246,464
|
$
268,650
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
Current
Liabilities:
|
|
|
|
Accounts
Payable
|
$
12,006
|
$
13,528
|
|
Accrued
Liabilities
|
6,359
|
5,839
|
|
Accrued
Interest
|
988
|
1,589
|
|
Employee
Related Liabilities
|
10,568
|
8,410
|
|
Income
Taxes Payable
|
2,098
|
59
|
|
Deferred
Revenues and Customer Deposits
|
7,293
|
12,730
|
|
Current
Portion of Environmental Remediation Reserves
|
5,114
|
11,999
|
|
Current
Portion of Long-Term Debt
|
16
|
69
|
|
|
Total
Current Liabilities
|
44,442
|
54,223
|
Long-Term
Debt
|
65,004
|
105,034
|
Environmental Remediation Reserves
|
11,640
|
14,174
|
Pension
Obligations
|
55,300
|
43,863
|
Other
Long-Term Liabilities
|
1,745
|
1,649
|
|
|
Total
Liabilities
|
178,131
|
218,943
|
Commitments and Contingencies
|
|
|
Stockholders' Equity
|
|
|
|
Preferred
Stock - $1.00 par value; 3,000,000 authorized; none
outstanding
|
-
|
-
|
|
Common
Stock - $0.10 par value; 20,000,000 shares authorized,
|
|
|
|
|
7,710,783
and 7,559,591 issued and outstanding
|
771
|
756
|
|
Capital in
Excess of Par Value
|
74,796
|
73,412
|
|
Retained
Earnings (Accumulated Deficit)
|
24,803
|
(516)
|
|
Accumulated Other Comprehensive Loss
|
(32,037)
|
(23,945)
|
|
|
Total
Stockholders' Equity
|
68,333
|
49,707
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
246,464
|
$
268,650
|
|
|
|
|
|
AMERICAN PACIFIC CORPORATION
|
Condensed Consolidated Statements of Cash
Flows
|
(Unaudited, Dollars in Thousands)
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
2012
|
2011
|
Cash Flows
from Operating Activities:
|
|
|
|
|
Net Income
(Loss)
|
|
$
25,319
|
$
(7,236)
|
|
Adjustments to Reconcile Net Income (Loss)
|
|
|
|
|
|
to Net
Cash Provided by Operating Activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
14,491
|
15,216
|
|
|
|
Non-cash
interest expense
|
|
747
|
845
|
|
|
|
Non-cash
component of loss on debt extinguishment
|
|
482
|
-
|
|
|
|
Share-based compensation
|
|
508
|
304
|
|
|
|
Excess tax
benefit on stock-based compensation
|
|
(138)
|
|
|
|
|
Deferred
income taxes
|
|
(6,648)
|
8,787
|
|
|
|
Loss on
sale of assets
|
|
77
|
3
|
|
|
|
Gain on
sale of business
|
|
(5,059)
|
-
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable, net
|
|
129
|
10,824
|
|
|
|
Inventories
|
|
(9,996)
|
(1,126)
|
|
|
|
Prepaid
expenses and other current assets
|
|
(299)
|
44
|
|
|
|
Accounts
payable
|
|
1,109
|
3,975
|
|
|
|
Income
taxes
|
|
2,252
|
2,636
|
|
|
|
Accrued
liabilities
|
|
1,456
|
(2,309)
|
|
|
|
Accrued
interest
|
|
(601)
|
14
|
|
|
|
Employee
related liabilities
|
|
2,402
|
1,935
|
|
|
|
Deferred
revenues and customer deposits
|
|
(3,413)
|
(2,362)
|
|
|
|
Environmental remediation reserves
|
|
(9,419)
|
2,303
|
|
|
|
Pension
obligations, net
|
|
(2,841)
|
(350)
|
|
|
|
Other
|
|
35
|
(428)
|
|
|
|
Discontinued operations, net
|
|
1,054
|
(12,332)
|
|
|
|
Net Cash
Provided by Operating Activities
|
|
11,647
|
20,743
|
|
|
|
|
|
|
|
Cash Flows
from Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(8,788)
|
(11,931)
|
|
Proceeds
from sale of business, net of cash sold and expenses
|
|
37,418
|
-
|
|
Other
investing activities
|
|
131
|
-
|
|
Discontinued operations, net
|
|
(751)
|
(1,220)
|
|
|
|
Net Cash
Provided (Used) by Investing Activities
|
|
28,010
|
(13,151)
|
|
|
|
|
|
|
|
Cash Flows
from Financing Activities:
|
|
|
|
|
Payments
of long-term debt
|
|
(40,017)
|
(14)
|
|
Issuances
of common stock
|
|
753
|
48
|
|
Excess tax
benefit on stock-based compensation
|
|
138
|
-
|
|
Debt
issuance costs
|
|
-
|
(878)
|
|
Discontinued operations, net
|
|
(45)
|
(56)
|
|
|
|
Net Cash
Used by Financing Activities
|
|
(39,171)
|
(900)
|
|
|
|
|
|
|
|
Effect of
Changes in Currency Exchange Rates on Cash
|
|
(7)
|
26
|
|
|
|
|
|
|
|
Net Change
in Cash and Cash Equivalents
|
|
479
|
6,718
|
Cash and
Cash Equivalents, Beginning of Period
|
|
30,703
|
23,985
|
Cash and
Cash Equivalents, End of Period
|
|
$
31,182
|
$
30,703
|
|
|
|
|
|
|
|
AMERICAN PACIFIC CORPORATION
|
Supplemental Data
|
(Unaudited, Dollars in Thousands)
|
|
|
|
|
|
Three
Months Ended
|
Year
Ended
|
|
|
|
September
30,
|
September
30,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
Operating
Segment Data:
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Fine
Chemicals
|
$
33,108
|
$
28,705
|
$
111,536
|
$
89,497
|
|
Specialty
Chemicals
|
14,331
|
36,105
|
68,513
|
66,905
|
|
Other
Businesses
|
2,162
|
2,878
|
5,578
|
4,312
|
|
|
Total
Revenues
|
$
49,601
|
$
67,688
|
$
185,627
|
$
160,714
|
|
|
|
|
|
|
|
Segment
Operating Income (Loss):
|
|
|
|
|
|
Fine
Chemicals
|
$
5,639
|
$
(1,360)
|
$
8,678
|
$
(6,283)
|
|
Specialty
Chemicals
|
8,284
|
23,652
|
34,919
|
35,600
|
|
Other
Businesses
|
296
|
(267)
|
(473)
|
(1,308)
|
|
|
Total
Segment Operating Income
|
14,219
|
22,025
|
43,124
|
28,009
|
Corporate
Expenses
|
(3,958)
|
(3,802)
|
(14,326)
|
(14,124)
|
Environmental Remediaiton Charge
|
(700)
|
-
|
(700)
|
(6,000)
|
Operating
Income
|
$
9,561
|
$
18,223
|
$
28,098
|
$
7,885
|
|
|
|
|
|
|
|
Depreciation and Amortization:
|
|
|
|
|
|
Fine
Chemicals
|
$
3,017
|
$
3,082
|
$
11,914
|
$
12,473
|
|
Specialty
Chemicals
|
269
|
641
|
1,401
|
1,136
|
|
Other
Businesses
|
5
|
4
|
18
|
17
|
|
Corporate
|
86
|
96
|
367
|
432
|
|
|
Total
Depreciation and Amortization
|
$
3,377
|
$
3,823
|
$
13,700
|
$
14,058
|
|
|
|
|
|
|
|
Segment
EBITDA (a):
|
|
|
|
|
|
Fine
Chemicals
|
$
8,656
|
$
1,722
|
$
20,592
|
$
6,190
|
|
Specialty
Chemicals
|
8,553
|
24,293
|
36,320
|
36,736
|
|
Other
Businesses
|
301
|
(263)
|
(455)
|
(1,291)
|
|
|
Total
Segment EBITDA
|
17,510
|
25,752
|
56,457
|
41,635
|
Less:
Corporate Expenses, Excluding Depreciation
|
(3,872)
|
(3,706)
|
(13,959)
|
(13,692)
|
Plus:
Share-based Compensation
|
87
|
54
|
508
|
304
|
Plus:
Interest and Other Income (Expense), Net
|
14
|
7
|
38
|
235
|
Adjusted
EBITDA (b)
|
$
13,739
|
$
22,107
|
$
43,044
|
$
28,482
|
|
|
|
|
|
|
|
Reconciliation of Income (Loss) from Continuing
Operations to Adjusted EBITDA (b):
|
|
|
|
|
|
|
|
Income
(Loss) from Continuing Operations
|
$
14,178
|
$
3,345
|
$
20,332
|
$
(9,379)
|
Add
Back:
|
|
|
|
|
|
Income Tax
Expense (Benefit)
|
(8,349)
|
12,292
|
(3,766)
|
6,985
|
|
Interest
Expense and Loss on Debt Extinguishment
|
3,746
|
2,593
|
11,570
|
10,514
|
|
Depreciation and Amortization
|
3,377
|
3,823
|
13,700
|
14,058
|
|
Share-based Compensation
|
87
|
54
|
508
|
304
|
|
Environmental Remediation Charge
|
700
|
-
|
700
|
6,000
|
Adjusted
EBITDA
|
$
13,739
|
$
22,107
|
$
43,044
|
$
28,482
|
|
|
(a)
|
Segment
EBITDA is defined as segment operating income (loss) plus
depreciation and amortization.
|
(b)
|
Adjusted
EBITDA is defined as income (loss) from continuing operations
before income tax expense (benefit), interest expense, loss on debt
extinguishment, depreciation and amortization, share-based
compensation and environmental remediation charges (if
any).
|
|
|
Segment
EBITDA and Adjusted EBITDA are not financial measures calculated in
accordance with GAAP and should not be considered as an alternative
to income (loss) from operations as performance measures. Each
EBITDA measure is presented solely as a supplemental disclosure
because management believes that each is a useful performance
measure that is widely used within the industries in which we
operate. In addition, EBITDA measures are significant measurements
for covenant compliance under our revolving credit facility. Each
EBITDA measure is not calculated in the same manner by all
companies and, accordingly, may not be an appropriate measure for
comparison.
|
Contact: Dana M. Kelley –
(702) 735-2200
E-mail: InvestorRelations@apfc.com
Website: www.apfc.com
SOURCE American Pacific Corporation