The following table summarizes the Company’s financial results for the quarter and six months ended February 28, 2010 and 2009.
|For the Three Months Ended||For the Six Months Ended|
|February 28,||February 28,|
|All figures in thousands, except per share figures||2010||2009||2010||2009|
|Costs and Expenses|
|Costs of products and services sold||21,650||17,640||40,404||39,199|
|Selling, general and administrative expenses||7,015||4,847||13,671||10,881|
|Other income (expense)||(143||)||204||(94||)||315|
|Income before income taxes||2,581||721||5,951||4,308|
|Net income per diluted share||$||0.18||$||0.05||$||0.42||$||0.31|
|Weighted average diluted shares outstanding||8,778||8,678||8,779||8,669|
The Company continues to have a healthy balance sheet with positive operating cash flows and a current ratio of 2.3. It’s $10.0 million unsecured line of credit remains intact, $7.0 million was available as of February 28, 2010, and at favorable rates, currently less than 2.0%.Chase Specialized Manufacturing Revenues from this segment were $25.8 million in the current quarter compared to $19.0 million in the prior year period. Increased revenues in the current quarter relate primarily to the CIM and ServiWrap acquisitions coupled with continued increased sales of Electronic Coatings. This was partially offset by less demand for Wire & Cable and Transportation products. Chase Electronic Manufacturing Services (EMS) This operating segment had record revenues of $5.6 million in the current quarter compared to $4.0 million in the prior year quarter. Increased demand and order activity from existing customers drove the improved results in the current quarter. This market continues to see improvements compared to 2009. Customer backlog for this segment increased to $10.1 million as of March 31, 2010 compared to $6.5 million as of August 31, 2009. Chase Corporation, founded in 1946, is a global manufacturer of tapes, laminates, sealants and coatings for high reliability applications, and provides contract assembly services for the electronics industry. Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as “believe”; “expect”; “anticipate”; “should”; “planned”; “estimated” and “potential” among others. These forward-looking statements are based on Chase Corporation’s current expectations. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the "safe harbor," the Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance and that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties which may affect the operations, performance, development and results of the Company's business include, but are not limited to, the following: uncertainties relating to economic conditions; uncertainties relating to customer plans and commitments; the pricing and availability of equipment, materials and inventories; technological developments; performance issues with suppliers and subcontractors; economic growth; delays in testing of new products; the Company’s ability to successfully integrate acquired operations; rapid technology changes and the highly competitive environment in which the Company operates. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.