Aceto Corp. (ACET)
F4Q2012 Earnings Call
September 07, 2012, 09:00 pm ET
Amy Glynn - VP, IR Ruth Group
Albert Eilender - Chairman & CEO
Sal Guccione - President & COO
Ronald Gold President & COO, Rising Pharmaceuticals
Douglas Roth - CFO
Bill Jones - Singular Research
Tony Pollock - Maxim Group
William Schaff - Phocas Financial
Lenny Dunn - Freedom Investors
Previous Statements by ACET
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Welcome to the Aceto Corporation fiscal 2012 fourth quarter results conference call. My name is Sandra and I'll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
This conference call may contain forward-looking statements as that term is defined in the federal securities laws. All statements that address expectations or projections about the future are forward-looking statements. Although they reflect our current expectations, these statements are not guarantees of future performance, but involving a number of risks and assumptions.
We're due to review Aceto’s filings with the SEC, including but not limited to Aceto’s annual report on Form 10-K for the fiscal year ended June 30, 2011 for a discussion of some of the factors that could cause actual results to differ materially. Copies of these filings are also available at www.sec.gov. We do not undertake any duty to update any forward-looking statements.
I'll now turn the call over to Amy Glynn, Vice President of Investor Relations at the Ruth Group.
Thank you. Good morning and welcome to Aceto Corporation fiscal 2012 fourth quarter and year end conference call audio webcast. With me today are Albert Eilender, Chairman of the Board and CEO, Sal Guccione President and COO, Ronald Gold, President and COO of Rising Pharmaceuticals and Douglas Roth, CFO of Aceto.
During this call, Al will provide a strategic overview, Sal will discuss the performance of our business segments and Doug will provide an overview of the company's financial results for the fiscal fourth quarter ended June 30, 2012. Following that we will open the call for questions.
With that I'd now like to turn the call over to Al Eilender. Al?
Thanks, Amy and good morning everyone. We are very pleased with our results for fiscal year 2012 as we generated record sales, gross profit and net income. Our sales increased by 7.7% to a record level of 444 million, despite the fact that we withdrew for 2012 from the low margin glyphosate business that we were involved with in fiscal year 2011. If we excluded the 24 million in glyphosate sales generated in fiscal 2011, in order to provided apples to apple comparison sales increased by even more impressive 14%.
We experienced significant margin expansion largely due to the full-year inclusion of the higher margin rising pharmaceuticals generics business contracted to the six months in fiscal 2011 and also improved product mix. For fiscal 2012 we reported earnings per share of $0.63 a share compared to $0.34 of share in fiscal 2011, an 85% increase. After adjusting for one-time charges in both periods which were explained in the press we generated pro forma earnings per share of $0.65 in fiscal 2012 compared to $0.47 pro forma in fiscal 2011, an increase of 38%.
These results I feel clearly demonstrate that we continue to execute on our plan. With our renamed and reconfigured business segments, human health, pharmaceutical ingredients and performance chemicals, our core strategy continues to focus on expanding our product offerings by partnering with manufacturing sources to develop and ultimately distribute products, both domestically and internationally.
In fiscal 2012 we launched seven new finished dosage generic products in our Human Health segment through our rising pharmaceutical subsidiary which included three launches in fiscal fourth quarter. We expect to launch an additional nine products in fiscal 2013 and our pipeline remains very strong with visibility through fiscal 2015. Ron Gold of course will discuss this in more details later on in our discussion.
We remain optimistic about our growth prospects in all three of our business segments and are looking forward to reporting on our future successes in fiscal 2013 and beyond. We however would like to remind you that our business is difficult to project on a quarter-to-quarter basis due to the nature of the products we sell and the markets we serve and therefore quarterly earnings may fluctuate.
You may have noted we also announced that our Board of Directors has declared a regular quarterly dividend of $0.055 per common share which represents an increase of 10%, another indication of our optimistic view of the future. As we also announced this morning, it gives me great pleasure to turn the reins of the company over to Sal Guccione to serve as our new Chief Executive Officer effective January 1, 2013.
As you may recall Sal joined Aceto’s Board of Directors in May 2011 and then took on the role of President and COO in December of that year, all part of our succession planning. Having worked with Sal for these past 18 months or so, the board and I are confident that he is very well suited from an operational and visionary skill set to take the company to yet another level of growth and profitability.
I will remain as Chairman of the Board and together with Sal intend to continue to enhance the Aceto business through internal initiatives and with prudent acquisitions all the while focusing on both top and bottom line growth. With that, I'm going to hand the call over to Sal for a review of our segments and its performance.