Exhibit 99.1
[LOGO] ACETO
FOR IMMEDIATE RELEASE
---------------------
ACETO CORPORATION ANNOUNCES BEST-EVER QUARTERLY SALES
FOR FIRST QUARTER OF 2005
LAKE SUCCESS, NY - November 9, 2004 - Aceto Corporation (Nasdaq:ACET), a global
distributor of chemically-derived pharmaceuticals, biopharmaceuticals, specialty
chemicals and agrochemicals, today announced quarterly results of operations for
its first quarter ended September 30, 2004.
FIRST QUARTER FINANCIAL HIGHLIGHTS - versus fiscal 2004 first quarter
o Net sales increased 12% to $80.8 million, the highest quarterly sales
level in the Company's history. $2.4 million of this growth in net
sales is attributable to the Company's acquisition of Pharma Waldhof.
o Net income grew 8% to a first quarter record of $3.4 million or $0.21
per diluted share. Net income was adversely affected by $0.3 million
of investments in strategic growth initiatives which, to date, have
generated little or no corresponding sales.
Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, "We are
pleased to start the year with sales growth across all three of our core
business segments, which produced our best-ever quarterly sales of $80.8
million. Additionally, each of these segments posted strong improvements in
gross profit dollars in the first quarter."
Mr. Schwartz further stated, "During the quarter, we continued to invest in
various strategic growth initiatives, including:
o developing products for generic biopharmaceuticals;
o expanding commercial sales of our organic color pigments;
o broadening our agrochemicals segment;
o developing our business in Poland; and
o commercializing our patent-pending product that abates odors emitted
from landfills.
These initiatives generated SG&A expenses during the quarter, but produced
minimal, if any, corresponding revenues.
Mr. Schwartz continued, "We are aggressively implementing our plans for these
endeavors and believe each of the initiatives represent excellent growth
potential for the Company. Last week, we announced successful on-site trials of
our landfill odor abatement product. We are enthusiastic about this development
and the prospects for the product, which we believe could generate approximately
$10 million in net sales for Aceto in the first year of commercialization, with
a 50% gross margin."
Mr. Schwartz concluded, "With regard to financial guidance, we anticipate
achieving earnings of $0.18 - $0.22 per diluted share in the second quarter of
fiscal 2005. We remain focused on continued organic growth in our main business
segments, including the Health Sciences, Chemicals & Colorants and Agrochemicals
groups. This, coupled with the strategic initiatives we are currently executing,
should produce another strong year for Aceto. We look forward to reporting on
our progress."
-more-
Aceto Corporation News Release Page 2
November 9, 2004
CONFERENCE CALL
Leonard S. Schwartz, Chairman, CEO, and President, and Douglas Roth, CFO, will
conduct a conference call at 10:00 a.m. ET on Tuesday, November 9, 2004.
Interested parties may participate in the call by dialing 888-787-0577
(706-679-3204 for international callers) - please call in 10 minutes before the
call is scheduled to begin. The conference call will also be broadcast live over
the Internet via the Investor Relations section (Conference Calls) of the
Company's website. To listen to the live call please go to the website at least
15 minutes early to register, download and install any necessary audio software.
The conference call will be archived on the Company's website, and a recorded
phone replay of the call will be available from 12:00 noon ET on Tuesday,
November 9, 2004 until 5:00 p.m. ET on Wednesday, November 10, 2004. Dial
800-642-1687 (706-645-9291 for international callers) and enter the code 1893574
for the phone replay.
ABOUT ACETO
Aceto Corporation, which was incorporated in 1947, is a global leader in the
distribution and marketing of biopharmaceuticals, chemically-derived
pharmaceuticals, specialty chemicals and agrochemicals used principally as raw
materials in the agricultural, color, pharmaceutical, surface coating/ink and
general chemical consuming industries. With offices in ten countries, Aceto
Corporation distributes over 1,000 chemicals in these and other fields.
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking statements are
based on current expectations, estimates and projections made by management. The
Company intends for the forward-looking statements to be covered by the
safe-harbor provisions for forward-looking statements. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates,"
or variations of such words are intended to identify such forward-looking
statements. The forward looking statements contained in this press release
include, but are not limited to, developing products for the generic
biopharmaceuticals segment, expanding sales of our organic color pigments,
broadening our agrochemicals segment, developing our business in Poland, and
developing a landfill odor product that will generate $10 million in net sales
with a 50% gross margin in the first year of commercialization, and the earnings
guidance for the Company's second quarter of fiscal 2005. All forward-looking
statements in this press release are made as of the date hereof, and the Company
assumes no obligation to update these forward-looking statements whether as a
result of new information, future events or otherwise, other than as required by
law. The forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth or implied
by any forward-looking statements. These uncertainties include, but are not
limited to, the mix of products sold and the profit margins thereon, order
cancellation or a reduction in orders from customers, competitive product
offerings and pricing actions, the availability and pricing of key raw
materials, dependence on key members of management, risk of entering into new
European markets, continued successful integration of acquisitions, economic and
political conditions in the United States and abroad, as well as other risks
detailed in the Company's SEC reports, including the Company's Form 10-K and
other filings. Copies of these filings are available at WWW.SEC.GOV.
CONTACT: -OR- INVESTOR RELATIONS COUNSEL:
Aceto Corporation The Equity Group Inc.
Leonard S. Schwartz, Chairman/CEO/President Loren G. Mortman
Douglas Roth, CFO (212) 836-9604, LMORTMAN@EQUITYNY.COM
(516) 627-6000 Lauren Barbera
WWW.ACETO.COM (212) 836-9610, LBARBERA@EQUITYNY.COM
WWW.THEEQUITYGROUP.COM
Aceto Corporation News Release Page 3
November 9, 2004
ACETO CORP.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
SEPTEMBER 30,
2004 2003
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Net sales $ 80,820 $ 72,337
Cost of sales 67,222 60,167
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Gross profit 13,598 12,170
Gross profit % 16.83% 16.82%
Selling, general and
administrative expenses 9,502 7,973
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Operating income 4,096 4,197
Other income, net of
interest expense 528 357
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Income before income taxes 4,624 4,554
Provision for income taxes 1,249 1,435
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Net income $ 3,375 $ 3,119
========== ==========
Net income per common share (a):
Basic $ 0.21 $ 0.20
Diluted $ 0.21 $ 0.20
Weighted average shares outstanding (a):
Basic 16,053 15,494
Diluted 16,407 15,969
(a) The number of shares outstanding and the per share information for
September 30, 2003 have been adjusted for a 3-for-2 stock dividend, paid
January 2, 2004.
Aceto Corporation News Release Page 4
November 9, 2004
ACETO CORP.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Sept. 30, 2004 June 30, 2004
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(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 30,926 $ 32,330
Short-term investments 867 888
Receivables:
Trade, less allowance for doubtful
accounts: September, $1,030; June $ 1,033 52,803 53,084
Other 1,101 1,504
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53,904 54,588
Inventory 41,531 41,784
Prepaid expenses and other current assets 1,721 1,165
Income taxes receivable 521 606
Deferred income tax benefit, net 1,566 1,613
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Total current assets 131,036 132,974
Long-term notes receivable 722 747
Property and equipment 7,716 7,044
Less accumulated depreciation and amortization 4,849 4,390
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2,867 2,654
Goodwill 3,197 3,179
Intangible assets,net 3,634 3,701
Deferred income tax benefit 3,915 4,579
Other assets 2,062 1,863
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Total Assets $ 147,433 $ 149,697
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Drafts and acceptances payable $ 5,139 $ 4,610
Short-term bank loans 271 -
Accounts payable 24,206 31,292
Note payable - related party 1,000 1,000
Accrued compensation 2,294 2,836
Accrued environmental remediation 1,274 1,326
Other accrued expenses 6,109 6,070
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Total current liabilities 40,293 47,134
Long-term liabilites 2,748 2,140
Minority interest 153 157
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Total liabilities 43,194 49,431
Shareholders' equity:
Common stock, $.01 par value:
(40,000 shares authorized; 17,571 shares issued;
16,066 and 16,045 shares outstanding at
September 30, 2004 and June 30, 2004, respectively) 176 176
Capital stock in excess of par 57,170 57,191
Retained earnings 59,865 56,490
Treasury stock, at cost:
(1,505 and 1,526 shares at September
30, 2004 and June 30, 2004, respectively) (14,927) (15,135)
Accumulated other comprehensive income 1,955 1,544
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Total shareholders' equity 104,239 100,266
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Total liabilities and shareholders' equity $ 147,433 $ 149,697
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