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Chase Corporation Announces Quarter And Fiscal Year Results

Chase Corporation (NYSE Amex: CCF) today reported consolidated net income for the fourth quarter of fiscal 2010 of $4.4 million or $0.48 per diluted share compared to $2.8 million or $0.31 per diluted share in fiscal 2009. Consolidated net income of $12.5 million or $1.38 per diluted share for the year ended August 31, 2010 was nearly double the $6.4 million or $0.72 per diluted share in fiscal 2009.

Revenues were $35.4 million for the quarter ended August 31, 2010. This represents an increase of 45% compared to $24.4 million in the fourth quarter of last year. Income from continuing operations of $3.8 million, net of taxes, increased 52% from $2.5 million in the prior year period. Net income from continuing operations per diluted share of $0.42 in the fourth quarter of fiscal 2010 increased $0.15 compared to $0.27 per diluted share in fiscal 2009.

Revenues for the fiscal year ended August 31, 2010 were $118.7 million or an increase of 30% compared to $91.2 million in the prior year. Income from continuing operations for fiscal year 2010 was $10.7 million, net of taxes, or $1.18 per diluted share compared to $5.3 million or $0.60 per diluted share in the prior year.

Peter R. Chase, Chairman and Chief Executive Officer commented, “2010 has been a rewarding year and our better than expected fourth quarter has carried us to a very substantial increase over 2009 results. Continued recovery in the automotive sector worldwide and protective products used in domestic infrastructure applications led the charge, while housing continued to be weak.

Consolidation plans progressed during the year with the former Paterson, NJ plant’s products now produced successfully in Webster, MA and Taylorsville, NC. Development of the property purchased in Oxford, MA continues and the coatings plant in Pittsburgh, PA is now fully operational.

On the acquisition front newly added CIM ® had its best year ever while ServiWrap ® is continuing its integration in the U.K. We are planning more activity with a core business focus.

We are in the midst of a strategic restructuring which includes new investment in product development and marketing. Our goal is to balance growth between internal resources and acquisition.

At the end of June we sold our EMS business in accordance with our long term strategy to focus on our core protective materials technologies. It has been our intention to exit this area when marketable size and scale were achieved and future growth better supported by ownership focused on contract manufacturing. I believe this was executed well.

I am particularly grateful to our entire team for their efforts throughout the year. As always, our people are the key to our success.

We have entered the new quarter with some momentum and while the economy is still unsettled in many areas we remain optimistic for continued progress.

The following table summarizes the Company’s financial results for the quarter and year ended August 31, 2010 and 2009.

  For the Three Months Ended   For the Year Ended

August 31,

August 31,

All figures in thousands, except per share figures

2010

 

2009

2010

 

2009

 
Revenues $ 35,436   $ 24,400 $ 118,743   $ 91,236
 
Costs and Expenses
Costs of products and services sold 22,368 15,707 74,828 62,261
Selling, general and administrative expenses 7,149 5,228 27,151 20,814
Loss on impairment of assets   -     -   -     499
Operating income 5,919 3,465 16,764 7,662
 
Other income (expense)   (122 )   128   (308 )   441
Income from continuing operations before income taxes 5,797 3,593 16,456 8,103
 
Income taxes   1,948     1,128   5,730     2,788
 
Income from continuing operations, net of taxes 3,849 2,465 10,726 5,315
 
Income from discontinued operations, net of taxes 90 343 1,361 1,070
Gain on sale of discontinued operations, net of taxes   429     -   429     -
 
Net Income $ 4,368   $ 2,808 $ 12,516   $ 6,385
 

Net income available to common shareholders, per common and common equivalent share:

Continuing operations $ 0.42 $ 0.27 $ 1.18 $ 0.60
Discontinued operations $ 0.06   $ 0.04 $ 0.20   $ 0.12
Net income per diluted share $ 0.48   $ 0.31 $ 1.38   $ 0.72
 
Weighted average diluted shares outstanding   8,905     8,854   8,815     8,694

The Company also announced a cash dividend of $0.35 per share, comprised of $0.30 related to earnings from continuing operations and $0.05 related to earnings from discontinued operations. The dividend is to shareholders of record on October 31, 2010 payable on December 3, 2010.

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