Cambrex Corporation manufactures and markets a broad line of specialty chemicals and commodity chemical intermediates and also manufactures chemicals to customer specifications. There are five product categories: pharmaceutical bulk actives; pharmaceutical intermediates; organic intermediates; performance enhancers; and polymer systems. Cambrex Corp. has a market cap of $181.9 million; its shares were traded at around $6.22 with a P/E ratio of 12.5 and P/S ratio of 0.7.
Highlight of Business Operations:Operating profit in the third quarter 2009 was $5,627 compared to $4,542 in the third quarter 2008. Excluding restructuring expenses and strategic alternative costs of $1,154 recorded in 2008, operating profit was flat quarter over quarter. An unfavorable impact of foreign currency and higher administrative spending mostly offset higher gross margins as discussed above.
Net income in the third quarter 2009 was $2,963, or $0.10 per diluted share, versus $2,797, or $0.10, per diluted share in the same period a year ago.
Net income for the first nine months of 2009 was $13,160, or $0.45 per diluted share, versus $8,879, or $0.31 per diluted share, in the same period a year ago.
Cash and cash equivalents increased $12,805 in the first nine months of 2009. During the first nine months of 2009, cash provided by operations was $19,556 versus cash used in operations of $2,902 in the same period a year ago. The increase in cash flows from operations in the first nine months of 2009 versus the first nine months of 2008 is due primarily to the unusually large cash payments required in 2008 related to change-in-control and restructuring payments, and better year to date inventory management during 2009.
Cash flows in the first nine months of 2009 related to capital expenditures were $9,651 compared to $22,908 in 2008. The majority of the funds in 2009 were used for a new mid-scale Pharma manufacturing facility in Karlskoga, Sweden and capital improvements to existing facilities. The majority of the funds in 2008 were used for the new facility in Karlskoga, Sweden, an API purification facility in Milan, Italy and capital improvements to existing facilities.
Cash flows provided by financing activities in the first nine months of 2009 was $156 compared to $19,428 in the same period a year ago. Cash inflows in 2009 and 2008 related to net borrowings used for domestic operations, capital expenditures and payments related to certain accruals.
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