Aceto Corp. (ACET, Financial) filed Quarterly Report for the period ended 2008-12-31.
ACETO CORP. is engaged in the distribution and marketing of fine and industrial chemicals used principally in the agricultural color producingpharmaceutical and surface coating industries. Aceto Corp. has a market cap of $219.05 million; its shares were traded at around $8.97 with a P/E ratio of 13.4 and P/S ratio of 0.61. The dividend yield of Aceto Corp. stocks is 2.24%. Aceto Corp. had an annual average earning growth of 4.5% over the past 10 years.
Net sales for the Health Sciences segment increased by $8,991 for the six months ended December 31, 2008, to $99,314, which represents a 10.0% increase from net sales of $90,323 for the prior period. This increase is due to various factors including increased sales from our foreign operations of $4,407, specifically our Shanghai operations and a $2,648 rise in sales of our domestic nutraceutical products, which represent raw materials used in the production of nutritional supplements. In addition, our domestic generics product group experienced an increase in sales of $3,249 due to the higher volume of re-orders for existing products. The overall increase in sales for the Health Sciences segment is offset, in part, by a decline in sales of $1,338 of pharmaceutical intermediates, which represent key components used in the manufacture of certain drug products.
Net sales for the Chemicals & Colorants segment increased by $3,661 for the six months ended December 31, 2008, to $61,826, which represents a 6.3% increase from net sales of $58,165 for the prior period. Our chemical business is diverse in terms of products, customers and consuming markets. The increase in sales from this segment is attributable to an increase of $2,238 of sales of chemicals used to produce surface coatings, $1,049 increase in sales of chemicals utilized in the food, beverage and cosmetic industries and a $1,280 increase in sales of polymer additives. These increases are partially offset by a decline in sales of color pigments of $642 and decreased sales of $971 in chemicals used in aroma products, both of which have decreased as a direct result of the economic recession.
Gross profit for the Crop Protection segment decreased to $1,439 for the six months ended December 31, 2008, versus $1,598 for the prior period, a decrease of $159 or 10.0%. Despite a decrease in sales, gross margin increased slightly for the six months to 20.8% compared to the prior period gross margin of 19.6%.
Selling, general and administrative expenses (SG&A) increased $1,099, or 5.1%, to $22,463 for the six months ended December 31, 2008 compared to $21,364 for the prior period. As a percentage of sales, SG&A decreased to 13.4% for the six months ended December 31, 2008 versus 13.6% for the prior period. The increase in SG&A relates primarily to a $1,715 rise in personnel related costs, of which $651 relates to our foreign operations and $1,064 relates to various factors including annual salary increases and stock-based compensation and increased accrued bonus expense as a result of increased profitability. SG&A also increased due to a $145 increase in sales and marketing expenses, which is directly related to the increase in sales, as well as higher bad debt expense of $507 as a result of additional reserves. The increase in SG&A is partially offset by a decline of $1,383 in legal costs from the prior period for which there is no comparable amount in the current period. These legal costs in the prior period related to an antitrust case that we previously commenced against the owner of certain licensed technology used with one of our crop protection products, which was settled in May 2008.
For the six months ended December 31, 2008, operating income was $8,066 compared to $5,325 in the prior period, an increase of $2,741 or 51.5%. This increase was due to the overall increase in gross profit of $3,640 and to a lesser extent, a $200 decline in R&D expenses, offset by the $1,099 increase in SG&A.
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ACETO CORP. is engaged in the distribution and marketing of fine and industrial chemicals used principally in the agricultural color producingpharmaceutical and surface coating industries. Aceto Corp. has a market cap of $219.05 million; its shares were traded at around $8.97 with a P/E ratio of 13.4 and P/S ratio of 0.61. The dividend yield of Aceto Corp. stocks is 2.24%. Aceto Corp. had an annual average earning growth of 4.5% over the past 10 years.
Highlight of Business Operations:
We are reporting net sales of $168,054 for the six months ended December 31, 2008, which represents a 7.3% increase from the $156,633 reported in the comparable prior period. Gross profit for the six months ended December 31, 2008 was $30,682 and our gross margin was 18.3% as compared to gross profit of $27,042 and gross margin of 17.3% in the comparable prior period. Our selling, general and administrative costs for the six months ended December 31, 2008 increased to $22,463, an increase of 5.1% over the $21,364 we reported in the prior period. Our net income increased to $5,643, or $0.23 per diluted share, compared to $2,202, or $0.09 per diluted share in the prior period.Net sales for the Health Sciences segment increased by $8,991 for the six months ended December 31, 2008, to $99,314, which represents a 10.0% increase from net sales of $90,323 for the prior period. This increase is due to various factors including increased sales from our foreign operations of $4,407, specifically our Shanghai operations and a $2,648 rise in sales of our domestic nutraceutical products, which represent raw materials used in the production of nutritional supplements. In addition, our domestic generics product group experienced an increase in sales of $3,249 due to the higher volume of re-orders for existing products. The overall increase in sales for the Health Sciences segment is offset, in part, by a decline in sales of $1,338 of pharmaceutical intermediates, which represent key components used in the manufacture of certain drug products.
Net sales for the Chemicals & Colorants segment increased by $3,661 for the six months ended December 31, 2008, to $61,826, which represents a 6.3% increase from net sales of $58,165 for the prior period. Our chemical business is diverse in terms of products, customers and consuming markets. The increase in sales from this segment is attributable to an increase of $2,238 of sales of chemicals used to produce surface coatings, $1,049 increase in sales of chemicals utilized in the food, beverage and cosmetic industries and a $1,280 increase in sales of polymer additives. These increases are partially offset by a decline in sales of color pigments of $642 and decreased sales of $971 in chemicals used in aroma products, both of which have decreased as a direct result of the economic recession.
Gross profit for the Crop Protection segment decreased to $1,439 for the six months ended December 31, 2008, versus $1,598 for the prior period, a decrease of $159 or 10.0%. Despite a decrease in sales, gross margin increased slightly for the six months to 20.8% compared to the prior period gross margin of 19.6%.
Selling, general and administrative expenses (SG&A) increased $1,099, or 5.1%, to $22,463 for the six months ended December 31, 2008 compared to $21,364 for the prior period. As a percentage of sales, SG&A decreased to 13.4% for the six months ended December 31, 2008 versus 13.6% for the prior period. The increase in SG&A relates primarily to a $1,715 rise in personnel related costs, of which $651 relates to our foreign operations and $1,064 relates to various factors including annual salary increases and stock-based compensation and increased accrued bonus expense as a result of increased profitability. SG&A also increased due to a $145 increase in sales and marketing expenses, which is directly related to the increase in sales, as well as higher bad debt expense of $507 as a result of additional reserves. The increase in SG&A is partially offset by a decline of $1,383 in legal costs from the prior period for which there is no comparable amount in the current period. These legal costs in the prior period related to an antitrust case that we previously commenced against the owner of certain licensed technology used with one of our crop protection products, which was settled in May 2008.
For the six months ended December 31, 2008, operating income was $8,066 compared to $5,325 in the prior period, an increase of $2,741 or 51.5%. This increase was due to the overall increase in gross profit of $3,640 and to a lesser extent, a $200 decline in R&D expenses, offset by the $1,099 increase in SG&A.
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