This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Pacific CEO Discusses Q1 2011 Results - Earnings Call Transcript

Our major core products are now in full production at our California facility. We continue to expect our sales in this segment to exceed the fiscal 2010 sales by 25%. A good part of the sales increase is due to development products.

Development product sales for this first quarter have reached a record $7.7 million, with the year-end estimate approaching $20 million. Maturing and growing development products are responsible for this increase.

Our first major inspection by the Drug Enforcement Agency of our Controlled Substance facility went very well. We estimate the approval to become a certified manufacturer of these controlled pharmaceutical chemicals will take another six months or so.

Our other new product initiatives, including anti-viral building blocks and chemicals for anti-terrorism and the Department of Defense, are progressing well as represented by our forecasted growth and development product sales. We also made a major breakthrough in property taxes for our California facility. The Fine Chemicals team did a great job to reduce our taxes significantly going forward and negotiating a refund for previous years.

Now, moving on to the Specialty Chemicals segment. Our Specialty Chemicals segment performed well this quarter, despite lower production and sales volumes. The production team continues to adapt to lower demand in rocket-grade ammonium perchlorate. The NASA budget and direction continue to be a subject of debate.

Congress, both the House and Senate, are directing a heavy lift vehicle that will use large, shuttle like solid rockets. However, Congress also plans to cut overall budgets for NASA. It will take quite a while for this to be resolved. We are therefore forecasting no ammonium perchlorate for NASA applications in fiscal 2011.

While NASA is undecided, we continue to have a reliable user of rocket-grade perchlorate, the Department of Defense. DoD quantities have been lower then that used by NASA but they are consistent. Their strategic and tactical missiles must use solid rockets. The forecasted quantity of rocket-grade ammonium perchlorate for fiscal 2011 will be consumed by DoD products.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs