Aceto Corp. (ACET, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $152.8 million; its shares were traded at around $6.17 with a P/E ratio of 9.2 and P/S ratio of 0.5. The dividend yield of Aceto Corp. stocks is 3.2%. Aceto Corp. had an annual average earning growth of 4.5% over the past 10 years.
Net sales for the Health Sciences segment decreased by $4,659 for the nine months ended March 31, 2009, to $143,863, which represents a 3.1% decrease from net sales of $148,522 for the prior period. This decrease is due to various factors including decreased sales from our foreign operations of $3,811, specifically our European and Singapore operations and a $3,676 decline in sales of domestic pharmaceutical intermediates, which represent key components used in the manufacture of certain drug products. The overall decrease in sales for the Health Sciences segment is offset, in part, by an increase in sales of $3,113 of our domestic nutraceutical products, which represent raw materials used in the production of nutritional supplements.
Net sales for the Chemicals & Colorants segment decreased by $2,800 for the nine months ended March 31, 2009, to $91,236, which represents a 3.0% decline from net sales of $94,036 for the prior period. Our chemical business is diverse in terms of products, customers and consuming markets and is directly impacted by the current economic recession. The decrease in sales from this segment is attributable to decreased sales of $3,006 in chemicals used in aroma products, a decline of $1,228 in sales of color pigments, and a $1,428 drop in chemicals used to produce surface coatings. These decreases are partially offset by an increase of $1,208 in sales of polymer additives and a $1,180 increase in sales of chemicals utilized in the food, beverage and cosmetic industries.
Health Sciences gross profit of $27,614 for the nine months ended March 31, 2009 was relatively consistent to the $27,420 of gross profit in the prior period. Gross profit for the domestic pharmaceutical intermediates declined by $337, offset in part, by an increase of $118 in gross profit in our foreign operations, particular in our Shanghai operations.
Selling, general and administrative expenses (SG&A) remained relatively flat at $32,921 for the nine months ended March 31, 2009 compared to $32,924 for the prior period. As a percentage of sales, SG&A increased to 13.3% for the nine months ended March 31, 2009 versus 12.9% for the prior period. SG&A experienced an increase of $1,101 in personnel related costs, of which $363 relates to our foreign operations and $738 relates to various factors including annual salary increases and stock-based compensation. We also incurred higher bad debt expense of $501 as a result of additional reserves. These increases in SG&A are offset by a decline of $1,488 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 nine months ended March 31, 2009, operating income was $10,863 compared to $9,529 in the prior period, an increase of $1,334 or 14.0%. This increase was due to the overall increase in gross profit of $852 and to a $482 decline in R&D expenses and 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 $152.8 million; its shares were traded at around $6.17 with a P/E ratio of 9.2 and P/S ratio of 0.5. The dividend yield of Aceto Corp. stocks is 3.2%. 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 $247,854 for the nine months ended March 31, 2009, which represents a 2.8% decrease from the $254,888 reported in the comparable prior period. Gross profit for the nine months ended March 31, 2009 was $43,937 and our gross margin was 17.7% as compared to gross profit of $43,085 and gross margin of 16.9% in the comparable prior period. Our selling, general and administrative costs for the nine months ended March 31, 2009 was relatively flat at $32,921, when compared to $32,924 we reported in the prior period. Our net income increased to $7,578, or $0.30 per diluted share, compared to $5,496, or $0.22 per diluted share in the prior period.Net sales for the Health Sciences segment decreased by $4,659 for the nine months ended March 31, 2009, to $143,863, which represents a 3.1% decrease from net sales of $148,522 for the prior period. This decrease is due to various factors including decreased sales from our foreign operations of $3,811, specifically our European and Singapore operations and a $3,676 decline in sales of domestic pharmaceutical intermediates, which represent key components used in the manufacture of certain drug products. The overall decrease in sales for the Health Sciences segment is offset, in part, by an increase in sales of $3,113 of our domestic nutraceutical products, which represent raw materials used in the production of nutritional supplements.
Net sales for the Chemicals & Colorants segment decreased by $2,800 for the nine months ended March 31, 2009, to $91,236, which represents a 3.0% decline from net sales of $94,036 for the prior period. Our chemical business is diverse in terms of products, customers and consuming markets and is directly impacted by the current economic recession. The decrease in sales from this segment is attributable to decreased sales of $3,006 in chemicals used in aroma products, a decline of $1,228 in sales of color pigments, and a $1,428 drop in chemicals used to produce surface coatings. These decreases are partially offset by an increase of $1,208 in sales of polymer additives and a $1,180 increase in sales of chemicals utilized in the food, beverage and cosmetic industries.
Health Sciences gross profit of $27,614 for the nine months ended March 31, 2009 was relatively consistent to the $27,420 of gross profit in the prior period. Gross profit for the domestic pharmaceutical intermediates declined by $337, offset in part, by an increase of $118 in gross profit in our foreign operations, particular in our Shanghai operations.
Selling, general and administrative expenses (SG&A) remained relatively flat at $32,921 for the nine months ended March 31, 2009 compared to $32,924 for the prior period. As a percentage of sales, SG&A increased to 13.3% for the nine months ended March 31, 2009 versus 12.9% for the prior period. SG&A experienced an increase of $1,101 in personnel related costs, of which $363 relates to our foreign operations and $738 relates to various factors including annual salary increases and stock-based compensation. We also incurred higher bad debt expense of $501 as a result of additional reserves. These increases in SG&A are offset by a decline of $1,488 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 nine months ended March 31, 2009, operating income was $10,863 compared to $9,529 in the prior period, an increase of $1,334 or 14.0%. This increase was due to the overall increase in gross profit of $852 and to a $482 decline in R&D expenses and SG&A
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