Chase Corporation (NYSE Amex: CCF) today reported revenues of $123.0 million for the fiscal year ended August 31, 2011. This represents an increase of 3.6% compared to $118.7 million in fiscal 2010. Income from continuing operations, net of tax, increased 1.9% to $10.93 million or $1.22 per share in fiscal 2011 compared to $10.73 million or $1.21 per share in the prior year.

Revenues for the fourth quarter ended August 31, 2011 were $32.9 million. This represents a decrease of 7.1% compared to $35.4 million in the prior year period. Income from continuing operations, net of tax, decreased 6.0% to $3.62 million or $0.40 per share in the current quarter compared to $3.85 million or $0.43 per share in fiscal 2010.

Peter R. Chase, Chairman and Chief Executive Officer commented: “Our fourth quarter performed as expected which we had forecast to lag the previous year's robust finish. Having said that, we have seen improved results from our industrial materials, especially wire and cable products, while construction materials have fallen short in a very poor market, particularly our private label products.

“We’ve had some challenges in meeting heavy Middle East demand for pipeline products from our UK facility. The issues have been rectified but they resulted in higher costs and decreased production from that facility in our fourth quarter. Process improvements have been implemented in the last six months and are continuing. We are now confident in our ability to produce high quality products to meet market needs.

“Volatile raw material costs have impacted us throughout the year, narrowing margins. Price increases have helped but the uncertainty remains.

“The plant move from Webster to Oxford was completed ahead of schedule and the next phase of consolidation, moving from Randolph, was announced recently and is planned over the next twelve to fifteen months.

“Overall I appreciate the efforts of all our associates to finish the year successfully in a very unpredictable business environment.”

As of August 31, 2011, the Company’s working capital was $37.1 million, including cash on hand of $15.0 million. The Company’s $10 million line of credit is fully available, while the balance of its unsecured term debt is $12.7 million.

The table summarizes the Company’s financial results for the quarters and years ended August 31, 2011 and 2010.
       
For the Three Months Ended For the Years Ended

August 31,

August 31,
All figures in thousands, except per share figures

2011

2010

2011

2010
 
Revenues $ 32,886 $ 35,436   $ 123,040 $ 118,743  
 
Costs and Expenses
Costs of products and services sold 21,586 22,368 80,317 74,828
Selling, general and administrative expenses   6,318   7,149     26,780   27,151  
 
Operating income 4,982 5,919 15,943 16,764
 
Other income (expense)   212   (122 )   230   (308 )
 
Income from continuing operations before income taxes 5,194 5,797 16,173 16,456
 
Income taxes   1,574   1,948     5,242   5,730  
 
Income from continuing operations, net of taxes 3,620 3,849 10,931 10,726
 
Income from discontinued operations, net of taxes   -   519     -   1,790  
 
Net income $ 3,620 $ 4,368   $ 10,931 $ 12,516  
 
Net income available to common shareholders, per common
and common equivalent share:
Continuing operations $ 0.40 $ 0.43 $ 1.22 $ 1.21
Discontinued operations   - $ 0.06     - $ 0.20  
Net income per diluted share $ 0.40 $ 0.49   $ 1.22 $ 1.41  
 
Weighted average diluted shares outstanding   8,764   8,642     8,764   8,624  
 

The Company also announced a cash dividend of $0.35 per share. The dividend is to shareholders of record on October 31, 2011 and payable on December 5, 2011.

Chase Corporation, founded in 1946, is a global manufacturer of tapes, laminates, sealants and coatings for high reliability applications.

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.

Copyright Business Wire 2010