The Company’s ability to leverage manufacturing and administrative overhead and overall profitability was negatively impacted by transaction expenses related to its acquisition of NEPTCO of $0.6 million and $0.7 million in the quarter and year to date periods, respectively. In addition, the Company also incurred ongoing transition costs related to the Randolph plant move, moving costs related to the Company’s Winnersh and Oxford plants and settlement costs on the defined benefit pension plan due to the timing of lump sum distributions. These costs, including the aforementioned acquisition costs, totaled approximately $1.3 million and $1.8 million in the quarter and year to date periods, respectively.As of May 31, 2012, the Company’s working capital was $37.0 million, including cash on hand of $13.2 million. In June 2012, as part of its acquisition of NEPTCO, the Company borrowed $70 million under a five year term debt financing arrangement. As part of the financing for this acquisition, the Company retired all of its pre-existing debt with Bank of America and RBS Citizens. Additionally, the Company obtained a new revolving line of credit totaling $15 million which replaces the existing $10 million line. The following table summarizes the Company’s financial results for the three and nine months ended May 31, 2012 and 2011.
|For the Three Months Ended May 31,||For the Nine Months Ended May 31,|
|All figures in thousands, except per share figures||2012||2011||2012||2011|
|Costs and Expenses|
|Costs of products and services sold||22,210||21,230||65,231||58,732|
|Selling, general and administrative expenses||7,603||7,209||21,108||20,461|
|Other income (expense)||(297||)||3||100||18|
|Income before income taxes||5,029||4,190||10,450||10,979|
|Net income available to common shareholders,|
|per common and common equivalent share||$||0.37||$||0.33||$||0.76||$||0.81|
|Weighted average diluted shares outstanding||8,798||8,779||8,783||8,764|
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.