Cambrex Corp. Reports Operating Results (10-Q)
Cambrex Corp. has a market cap of $105.6 million; its shares were traded at around $3.6 with a P/E ratio of 13.9 and P/S ratio of 0.4. CBM is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Income from continuing operations in the second quarter 2010 was $3,666, or $0.12 per diluted share, versus $5,459, or $0.19, per diluted share in the same period a year ago.
Gross sales in the first six months 2010 of $113,558 were $6,208 or 5.2% below the first six months 2009. Excluding a 1.1% favorable impact of foreign exchange, reflecting a weaker U.S. dollar compared to first six months 2009, sales decreased 6.3%. The decrease is primarily due to lower volumes of a product utilizing the Company s drug delivery technology for which the Company renegotiated a three year agreement at lower price levels in late 2009, a customer supply chain disruption for an API manufactured under a long-term supply agreement and a feed additive for which a contract expired. This feed additive contributed $1,933 in sales in the first six months of 2009. Increased demand for controlled substances and generic APIs exceeded price declines and positively impacted the first six months of 2010 as compared to the first six months of 2009.
Income from continuing operations in the first six months 2010 was $5,349, or $0.18 per diluted share, versus $10,197, or $0.35, per diluted share in the same period a year ago.
Cash and cash equivalents decreased $29,279 in the first six months of 2010 primarily due to the pay down of debt and the purchase of a business for $6,897 in the first quarter of 2010. During the first six months of 2010, cash provided by operations was $8,973 versus $14,063 in the same period a year ago. Cash flows provided by operations in the first six months of 2010 compared to the first six months of 2009 was unfavorably impacted by lower net income and cash collections of accounts receivable, partially offset by cash payments required in the first six months 2009 related to change-in-control and restructuring payments.
Cash flows in the first six months of 2010 related to capital expenditures were $5,097 compared to $6,359 in 2009. The majority of the funds in 2010 and 2009 were used for capital improvements to existing facilities.
Cash flows used in financing activities in the first six months of 2010 was $20,846 compared to $538 in the same period a year ago. Cash outflows in 2010 and 2009 related to the net pay down of debt.
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