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| American Pacific Reports Fiscal 2009 Results |
| LAS VEGAS, Dec 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- American Pacific Corporation (Nasdaq: APFC) today reported financial results for its fiscal 2009 year and fourth quarter ended September 30, 2009.
We provide non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying supplemental data. FINANCIAL SUMMARY Quarter Ended September 30, 2009 Compared to Quarter Ended September 30, 2008
Year Ended September 30, 2009 ("Fiscal 2009") Compared to Year Ended September 30, 2008 ("Fiscal 2008")
The condensed consolidated financial statements herein include the results of our Fiscal 2009 acquisition of Marotta Holdings Limited (subsequently renamed Ampac ISP Holdings Limited), effective on October 1, 2008. CONSOLIDATED RESULTS OF OPERATIONS Revenues - For our Fiscal 2009 fourth quarter, revenues decreased 11% to $63.6 million, reflecting increases of 26% and 126% for Specialty Chemicals segment and Aerospace Equipment segment revenues, respectively, offset by a decrease of 41% in Fine Chemicals segment revenues. For Fiscal 2009, revenues decreased 3% to $197.1 million, reflecting 9% and 104% increases in Specialty Chemicals segment and Aerospace Equipment segment revenues, respectively, offset by a 23% decline in Fine Chemicals segment revenues. See further discussion under Segment Highlights. Cost of Revenuesand Gross Margins - For our Fiscal 2009 fourth quarter, cost of revenues was $42.0 million compared to $50.2 million for the prior fiscal year fourth quarter. The consolidated gross margin percentage was 34% and 29% for our Fiscal 2009 and Fiscal 2008 fourth quarters, respectively. For Fiscal 2009, cost of revenues was $136.3 million compared to $135.4 million for the prior fiscal year. The consolidated gross margin percentage was 31% and 33% for Fiscal 2009 and Fiscal 2008, respectively. One of the most significant factors that affects, and should continue to affect, the comparison of our consolidated gross margins from period to period is the change in revenue mix between our segments. The revenue contribution by each of our segments is indicated in the following table.
Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Fine Chemicals 44% 66% 48% 61%
Specialty Chemicals 33% 24% 32% 28%
Aerospace Equipment 18% 7% 17% 8%
Other Businesses 5% 3% 3% 3%
--- --- --- ---
Total Revenues 100% 100% 100% 100%
=== === === ===
In addition, consolidated gross margins for our Fiscal 2009 periods reflect:
See further discussion under Segment Highlights. Operating Expenses - For our Fiscal 2009 fourth quarter, operating expenses increased $1.0 million to $12.0 million from $11.0 million for the fourth quarter of the prior fiscal year primarily as a result of:
For Fiscal 2009, operating expenses increased $2.4 million to $45.3 million from $42.9 million for Fiscal 2008 as a result of:
Environmental Remediation Charge - Late in Fiscal 2009, we received an initial groundwater model that indicated that groundwater emanating from our environmental remediation site in Henderson, Nevada appears to be moving toward our existing perchlorate remediation facility at a much slower pace than previously estimated. As a result, utilization of our existing facility alone, at this lower groundwater pace, could, according to this groundwater model, extend the life of our existing remediation project to in excess of fifty years. We believe that we should be able to reduce the total program time significantly, and ultimately the total cost of the program, by installing additional groundwater extraction wells in the deeper, more concentrated areas, thereby providing a more aggressive treatment. This change in our approach resulted in a charge to our earnings in Fiscal 2009 in the amount of $13.7 million, comprised of an estimate of approximately $9.6 million to design, engineer, construct and install the additional equipment and approximately $4.1 million to operate and maintain the additional equipment post-installation. With the additional equipment, we estimate that the more likely total remaining remediation project life would be 13 to 23 years, with our accrual based on a project life of 13 years. We believe that the benefits of the potentially reduced program time and the potential overall cost reductions support our investment into additional equipment. Due to uncertainties inherent in early stage estimates, our estimate may later require significant revision as new facts become available and circumstances change. SEGMENT HIGHLIGHTS Fine Chemicals Segment Our Fine Chemicals segment reflects the operating results of our wholly-owned subsidiary Ampac Fine Chemicals LLC ("AFC"). Quarter Ended September 30, 2009 Compared to Quarter Ended September 30, 2008
Year Ended September 30, 2009 Compared to Year Ended September 30, 2008
The decrease in Fine Chemicals segment revenues for the Fiscal 2009 fourth quarter compared to the prior fiscal year fourth quarter is primarily due to a decrease in revenues from core anti-viral products, offset partially by increases in core oncology and core central nervous system products. The decrease in anti-viral products revenue is a continuation of the decline that our Fine Chemicals segment has experienced during Fiscal 2009. The increases in oncology and central nervous system product revenues in the Fiscal 2009 fourth quarter represent the timing of revenues for these products between the Fiscal 2009 quarters. For Fiscal 2009, the decrease in Fine Chemicals segment revenues, compared to the prior fiscal year, primarily reflects declines in core product revenues from anti-viral products of 30%, central nervous system products of 14%, and oncology products of 13%. Historically, revenues from development products are approximately 5% of Fine Chemicals segment revenues. In Fiscal 2009, development product revenues were approximately 5% of Fine Chemicals segment revenues. Development product revenues include revenues from research products, products which are not yet commercialized, and products which are commercial but for which we are not the current commercial producer. While, in Fiscal 2009, development product revenues as a percentage of Fine Chemicals segment revenues remained at historical levels, we expect that this percentage will increase going forward. Typically, development product activities are the source for future core products. Anti-viral product revenues declined in Fiscal 2009, as compared to Fiscal 2008, as a result of an approximately 82% reduction in volume for the anti-viral product that was our largest core product in Fiscal 2008. Volume decline for this product is due to our customer's supply chain strategy and their desire to reduce their current levels of inventory. Revenue declines for this product were partially offset by increases in revenues from one of our other core anti-viral products. The decrease in central nervous system product revenues resulted from a customer reducing its orders for the product until calendar year 2010. Our Fine Chemicals segment reported operating income of $2.7 million for the Fiscal 2009 fourth quarter and $2.3 million for Fiscal 2009, each representing a significant decline over the prior year periods. The decline in Fine Chemicals segment operating income for the Fiscal 2009 fourth quarter corresponds with the revenue decline for the quarter. The gross margin percentage was consistent between the Fiscal 2009 and 2008 fourth quarters. The Fiscal 2009 decrease in operating income reflects:
Specialty Chemicals Segment Our Specialty Chemicals segment revenues include the operating results from our perchlorate, sodium azide and Halotron product lines, with perchlorates comprising 88% and 91% of Specialty Chemicals segment revenues in Fiscal 2009 and Fiscal 2008, respectively. Quarter Ended September 30, 2009 Compared to Quarter Ended September 30, 2008
Year Ended September 30, 2009 Compared to Year Ended September 30, 2008
The variances in Specialty Chemicals segment revenues reflect the following factors:
The increase in perchlorate volume for the Fiscal 2009 fourth quarter reflects the timing of Grade I ammonium perchlorate orders among the Fiscal 2009 quarterly periods. The decrease in perchlorate volume for Fiscal 2009 is primarily due to the completion of the Minuteman III propulsion replacement program in Fiscal 2008 offset partially by increases in demand for space and tactical missile programs. For Fiscal 2009, the greatest contribution to segment revenue was product for the Space Shuttle Reusable Solid Rocket Motor ("RSRM") program. The average price per pound increased for the Fiscal 2009 fourth quarter and full year primarily due to the effect of our contractual price-volume matrix, under which price and volume move inversely. In addition, we sold more specialized blend product than in the comparable prior fiscal year periods. Specialty Chemicals segment operating income was 46% and 42% of segment revenues, for the Fiscal 2009 fourth quarter and year, respectively, compared to 38% and 41% for the prior fiscal periods, reflecting the following factors. Specialty Chemicals segment gross margin percentage improved five points for the Fiscal 2009 fourth quarter and two points for Fiscal 2009, each compared to the prior year periods. The improvement in the fourth quarter is primarily due to the higher average price per pound. For Fiscal 2009, the improvement is primarily due to a reduction in amortization expense from $1.5 million for Fiscal 2008 to zero for Fiscal 2009. In mid-Fiscal 2008 second quarter, the Specialty Chemicals segment completed the amortization of the value assigned to the perchlorate customer list acquired in the fiscal year ended September 30, 1998. Operating expenses increased for Fiscal 2009 primarily due to an increase of $0.3 million in employee benefit costs and an increase of $0.3 million in lab and research and development costs. Aerospace Equipment Segment Our Aerospace Equipment segment reflects the operating results of our wholly-owned subsidiary Ampac-ISP Corp. and its wholly-owned subsidiaries. Effective October 1, 2008, we completed the acquisition of Marotta Holdings Limited (subsequently renamed Ampac ISP Holdings Limited) and its wholly-owned subsidiaries (collectively "AMPAC ISP Holdings"). Combined with our existing Aerospace Equipment segment operations in Westcott, U.K., these operations constitute AMPAC ISP Europe. Quarter Ended September 30, 2009 Compared to Quarter Ended September 30, 2008
Year Ended September 30, 2009 Compared to Year Ended September 30, 2008
For Fiscal 2009, Aerospace Equipment segment revenues increased $17.1 million due to both organic growth and the AMPAC ISP Holdings acquisition. AMPAC ISP Holdings contributed $6.0 million in revenues. The remainder of the revenue increase is primarily attributed to this segment's U.S. operations which experienced success with new contract awards, beginning in the latter part of Fiscal 2008. This improvement in backlog resulted in significant revenue increases for propulsion systems in the Fiscal 2009 periods. Aerospace Equipment segment operating income was 13% and 9% of segment revenues, for the Fiscal 2009 fourth quarter and year, respectively, compared to 10% and 4% for the prior fiscal periods. The improvement includes increases in gross margin as a percentage of revenues and operating expense increases at a lower rate than revenue increases. Aerospace Equipment segment gross margin percentage improved two points for each of the Fiscal 2009 fourth quarter and year, each compared to the prior year periods. The improvement is primarily driven by the AMPAC ISP Europe operations which experienced gross margin increases due to greater volumes. This improvement was offset somewhat by lower aggregate margins due to a change in product mix to a greater portion of propulsion systems in Fiscal 2009 as compared to engines in Fiscal 2008. Aerospace Equipment segment operating expenses increased primarily as a result of additional operating expenses in the amount of $2.5 million from the acquisition of AMPAC ISP Holdings. AMPAC ISP Holdings contributed segment EBITDA of approximately $0.6 million for Fiscal 2009. CAPITAL AND LIQUIDITY HIGHLIGHTS Liquidity - As of September 30, 2009, we had cash balances of $21.7 million and no cash borrowings against our $20.0 million revolving credit line. In addition, we were in compliance with the various covenants contained in our credit agreements. Operating Cash Flows - Operating activities provided cash of $11.1 million for Fiscal 2009 compared to $20.3 million for the prior fiscal year, resulting in a decrease of $9.2 million. Significant components of the change in cash flow from operating activities include:
The increase in cash used for working capital accounts is primarily due to an increase in working capital requirements to support the revenue growth of our Aerospace Equipment segment. In addition, accounts receivable balances for our Specialty Chemicals segment were higher as of September 30, 2009 due to higher revenues in September 2009. These higher accounts receivable balances were substantially collected in October 2009. We consider these working capital changes to be routine and within the normal production cycle of our products. The production of most fine chemical products requires a length of time that exceeds one quarter. In addition, the timing of Aerospace Equipment segment revenues recognized under the percentage-of-completion method differs from the timing of the related billings to customers. Therefore, in any given quarter, accounts receivable, work-in-progress inventory or deferred revenues can increase or decrease significantly. We expect that our working capital may vary normally by as much as $10.0 million from quarter to quarter. For Fiscal 2009, we do not anticipate paying federal income taxes based on the anticipated reduction in income and the effects of timing differences in expense deductions. As a result, cash tax requirements are significantly reduced in Fiscal 2009 compared to Fiscal 2008. Other increases in cash provided by operating activities primarily reflect the timing of contributions to our defined benefit pension plans. Investing Cash Flows -
OUTLOOK We believe our long-term growth opportunities remain strong. We remain committed to our strategy to provide long-term value through the growth of our Fine Chemicals and Aerospace Equipment segments. For the fiscal year ending September 30, 2010 ("Fiscal 2010"), we expect consolidated revenues of at least $190.0 million, reflecting the following:
Our guidance for Fiscal 2010 Adjusted EBITDA is at least $30.0 million and net income of at least $1.0 million. Our Fiscal 2010 guidance for Adjusted EBITDA is computed by adding estimated amounts for depreciation and amortization of $16.0 million, interest expense of $11.0 million, share-based compensation expense of $1.0 million and income taxes of $1.0 million to estimated net income of $1.0 million. We are anticipating our capital expenditures, which do not include environmental remediation spending, for Fiscal 2010 to range from approximately $10.0 million to approximately $14.0 million. We expect that we will continue to report significant variances in our quarter to quarter trends. For Fiscal 2010, we anticipate a weak first quarter and a strong fourth quarter. Change in Accounting Standard. Effective October 1, 2009, we adopted a revised accounting standard that requires us to expense acquisition related costs, such as legal fees, when incurred. Under the previous accounting standard, these costs were included in the total cost of an acquisition and capitalized. Our Fiscal 2010 guidance for Adjusted EBITDA includes no amounts for acquisition related costs. Accordingly, should we pursue an acquisition, direct costs associated with that action would be incremental to our guidance. INVESTOR TELECONFERENCE We invite you to participate in a teleconference with our executive management covering our Fiscal 2009 financial results. The investor teleconference will be held Tuesday December 22, 2009 at 1:30 p.m., Pacific Standard Time. The teleconference will include a presentation by management followed by a question and answer session. The teleconference can be accessed by dialing (973) 582-2852 between 1:15 and 1:30 p.m., Pacific Standard Time. Please reference conference ID# 48163088. As is our customary practice, a live webcast of the teleconference is being provided by Thomson Financial's First Call Events. A link to the webcast and the earnings release is available at our website at www.apfc.com, and will be available for replay until a few days before our next quarterly investor teleconference. RISK FACTORS/FORWARD-LOOKING STATEMENTS The unaudited financial results included in this release are preliminary. Statements contained in this earnings release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation the statement regarding one of the significant factors that will affect our consolidated gross margins in the future, statements in connection with our anticipated remediation efforts in Henderson, Nevada, including statements regarding estimates of times and costs and associated benefits by taking certain actions in connection with our remediation program, the statement regarding the expected increase in the percentage of development product revenues as a percentage of Fine Chemicals segment revenues, statements regarding our working capital changes and future variations, the statement regarding our anticipated federal income tax payments for Fiscal 2009, and statements in the "Outlook" section of this earnings release. Words such as "anticipate", "believe", "estimate", "expect", "should", "could", "may", "can" and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our expectations will be achieved. Actual results may differ materially from future results or outcomes expressed or implied by forward-looking statements set forth in the release due to risks, uncertainties and other important factors inherent in our business. Factors that might cause actual results to differ include, but are not limited to, the following:
Readers of this earnings release are referred to our Annual Report on Form 10-K for the year ended September 30, 2008, our Quarterly Reports on Form 10-Q for the quarters ended December 31, 2008, March 31, 2009, and June 30, 2009 and our other filings with the Securities and Exchange Commission for further discussion of these and other factors that could affect our future results. The forward-looking statements contained in this earnings release are made as of the date hereof and we assume no obligation to update for actual results or to update the reasons why actual results could differ materially from those projected in the forward-looking statements, except as required by law. In addition, the operating results for the quarter and year ended September 30, 2009 and cash flows for the year ended September 30, 2009 are not necessarily indicative of the results that will be achieved for future periods. ABOUT AMERICAN PACIFIC CORPORATION American Pacific Corporation (AMPAC) is a leading custom manufacturer of fine chemicals, specialty chemicals and propulsion products within its focused markets. We supply active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry. For the aerospace and defense industry we provide specialty chemicals used in solid rocket motors for space launch and military missiles. AMPAC also designs and manufactures liquid propulsion systems, valves and structures for space and missile defense applications. We produce clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry. Our products are designed to meet customer specifications and often must meet certain governmental and regulatory approvals. Additional information about us can be obtained by visiting our web site at http://www.apfc.com/.
AMERICAN PACIFIC CORPORATION
Consolidated Statements of Operations
(Unaudited, Dollars in Thousands, Except per Share Amounts)
------------------------------------------------------------------------
Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenues $63,594 $71,152 $197,148 $203,129
Cost of Revenues 42,035 50,200 136,295 135,388
------ ------ ------- -------
Gross Profit 21,559 20,952 60,853 67,741
Operating Expenses 12,030 11,041 45,325 42,865
Environmental
Remediation Charges 13,700 - 13,700 -
------ --- ------ ---
Operating Income (Loss) (4,171) 9,911 1,828 24,876
Interest and Other
Income, Net 76 145 146 1,366
Interest Expense 2,674 2,730 10,735 10,803
----- ----- ------ ------
Income (Loss) before
Income Tax (6,769) 7,326 (8,761) 15,439
Income Tax Expense
(Benefit) (2,175) 2,999 (2,802) 6,488
------ ----- ------ -----
Net Income (Loss) $(4,594) $4,327 $(5,959) $8,951
======= ====== ======= ======
Earnings (Loss) per
Share:
Basic $(0.61) $0.58 $(0.80) $1.20
Diluted $(0.61) $0.57 $(0.80) $1.18
Weighted Average Shares
Outstanding:
Basic 7,483,000 7,478,000 7,482,000 7,451,000
Diluted 7,483,000 7,612,000 7,482,000 7,599,000
AMERICAN PACIFIC CORPORATION
Consolidated Balance Sheets
(Unaudited, Dollars in Thousands, Except per Share Amounts)
-----------------------------------------------------------------------
September 30,
2009 2008
---- ----
ASSETS
Current Assets:
Cash and Cash Equivalents $21,681 $26,893
Accounts Receivable, Net 44,028 27,445
Inventories 36,356 40,357
Prepaid Expenses and Other Assets 1,811 3,392
Income Taxes Receivable 2,148 1,804
Deferred Income Taxes 6,317 6,859
----- -----
Total Current Assets 112,341 106,750
Property, Plant and Equipment, Net 114,645 118,608
Intangible Assets, Net 3,553 3,013
Goodwill 3,144 -
Deferred Income Taxes 21,121 13,849
Other Assets 10,037 9,193
------ -----
TOTAL ASSETS $264,841 $251,413
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $7,444 $10,554
Accrued Liabilities 5,295 5,526
Accrued Interest 1,650 1,650
Employee Related Liabilities 6,930 6,917
Income Taxes Payable 189 111
Deferred Revenues and Customer Deposits 6,911 3,091
Current Portion of Environmental
Remediation Reserves 2,522 996
Current Portion of Long-Term Debt 151 254
--- ---
Total Current Liabilities 31,092 29,099
Long-Term Debt 110,097 110,120
Environmental Remediation Reserves 24,168 13,282
Pension Obligations 27,720 15,692
Other Long-Term Liabilities 667 258
--- ---
Total Liabilities 193,744 168,451
------- -------
Commitments and Contingencies
Shareholders' Equity
Preferred Stock -$1.00 par value;
3,000,000 authorized; none outstanding - -
Common Stock -$0.10 par value; 20,000,000 shares
authorized,
7,504,591 and 9,523,541 issued 750 952
Capital in Excess of Par Value 72,322 88,496
Retained Earnings 9,997 15,956
Treasury Stock -none and 2,045,950 shares - (17,175)
Accumulated Other Comprehensive Loss (11,972) (5,267)
------- ------
Total Shareholders' Equity 71,097 82,962
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $264,841 $251,413
======== ========
AMERICAN PACIFIC CORPORATION
Consolidated Statements of Cash Flow
(Unaudited, Dollars in Thousands)
------------------------------------------------------------------------
Year Ended
September 30,
2009 2008
---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $(5,959) $8,951
Adjustments to Reconcile Net Income
(Loss)
to Net Cash Provided by Operating
Activities:
Depreciation and amortization 16,166 16,454
Non-cash interest expense 632 637
Share-based compensation 767 127
Excess tax benefit from stock option
exercises - (481)
Deferred income taxes (2,405) 3,355
Loss (Gain) on sale of assets 76 (416)
Changes in operating assets and
liabilities:
Accounts receivable, net (14,437) (2,317)
Inventories 2,974 6,666
Prepaid expenses and other current
assets 1,620 (1,510)
Accounts payable (3,474) (349)
Income taxes (266) (919)
Accrued liabilities (359) (1,765)
Accrued interest - (36)
Employee related liabilities (461) (431)
Deferred revenues and customer
deposits 2,195 (4,664)
Environmental remediation reserves 12,412 (1,145)
Pension obligations, net 1,346 277
Other 315 (2,101)
--- ------
Net Cash Provided by Operating
Activities 11,142 20,333
------ ------
Cash Flows from Investing Activities:
Capital expenditures (9,458) (15,284)
Acquisition of business, net of cash
acquired (6,725) -
------ ---
Net Cash Used by Investing Activities (16,183) (15,284)
------- -------
Cash Flows from Financing Activities:
Payments of long-term debt (348) (251)
Issuances of common stock, net 32 381
Excess tax benefit from stock option
exercises - 481
Purchases of treasury stock - (193)
--- ----
Net Cash Provided (Used) by Financing
Activities (316) 418
---- ---
Effect of Changes in Currency
Exchange Rates on Cash 145 -
--- ---
Net Change in Cash and Cash
Equivalents (5,212) 5,467
Cash and Cash Equivalents, Beginning
of Period 26,893 21,426
------ ------
Cash and Cash Equivalents, End of
Period $21,681 $26,893
======= =======
AMERICAN PACIFIC CORPORATION
Supplemental Data
(Unaudited, Dollars in Thousands)
------------------------------------------------------------------------
Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Operating Segment Data:
Revenues:
Fine Chemicals $27,718 $47,267 $95,484 $124,187
Specialty Chemicals 21,270 16,819 62,210 57,097
Aerospace Equipment 11,511 5,085 33,488 16,435
Other Businesses 3,095 1,981 5,966 5,410
----- ----- ----- -----
Total Revenues $63,594 $71,152 $197,148 $203,129
======= ======= ======== ========
Segment Operating Income:
Fine Chemicals $2,669 $6,820 $2,299 $16,246
Specialty Chemicals 9,708 6,360 26,189 23,128
Aerospace Equipment 1,441 488 3,012 736
Other Businesses 31 682 195 1,022
--- --- --- -----
Total Segment Operating
Income 13,849 14,350 31,695 41,132
Corporate Expenses (4,320) (4,439) (16,167) (16,256)
Environmental
Remediation Charge (13,700) - (13,700) -
------- --- ------- ---
Operating Income (Loss) $(4,171) $9,911 $1,828 $24,876
======= ====== ====== =======
Depreciation and Amortization:
Fine Chemicals $3,318 3,371 $12,943 12,876
Specialty Chemicals 323 433 1,274 2,825
Aerospace Equipment 429 66 1,461 222
Other Businesses 3 3 12 12
Corporate 122 109 476 519
--- --- --- ---
Total Depreciation and
Amortization $4,195 $3,982 $16,166 $16,454
====== ====== ======= =======
Segment EBITDA (a):
Fine Chemicals $5,987 $10,191 $15,242 $29,122
Specialty Chemicals 10,031 6,793 27,463 25,953
Aerospace Equipment 1,870 554 4,473 958
Other Businesses 34 685 207 1,034
--- --- --- -----
Total Segment EBITDA 17,922 18,223 47,385 57,067
Less: Corporate
Expenses, Excluding
Depreciation (4,198) (4,330) (15,691) (15,737)
Plus: Share-based
Compensation 293 37 767 127
Plus: Interest and
Other Income, Net 76 145 146 1,366
--- --- --- -----
Adjusted EBITDA (b) $14,093 $14,075 $32,607 $42,823
======= ======= ======= =======
Reconciliation of Net Income (Loss) to Adjusted EBITDA (b):
Net Income (Loss) $(4,594) $4,327 $(5,959) $8,951
Add Back:
Income Tax Expense
(Benefit) (2,175) 2,999 (2,802) 6,488
Interest Expense 2,674 2,730 10,735 10,803
Depreciation and
Amortization 4,195 3,982 16,166 16,454
Share-based
Compensation 293 37 767 127
Environmental
Remediation Charge 13,700 - 13,700 -
------ --- ------ ---
Adjusted EBITDA $14,093 $14,075 $32,607 $42,823
======= ======= ======= =======
(a) Segment EBITDA is defined as segment operating income (loss) plus depreciation and amortization. (b) Adjusted EBITDA is defined as net income (loss) before income tax expense (benefit), interest expense, depreciation and amortization, share-based compensation and environmental remediation charges (if any). Segment EBITDA and Adjusted EBITDA are not financial measures calculated in accordance with GAAP and should not be considered as an alternative to income (loss) from operations as performance measures. Each EBITDA measure is presented solely as a supplemental disclosure because management believes that each is a useful performance measure that is widely used within the industries in which we operate. In addition, EBITDA measures are significant measurements for covenant compliance under our revolving credit facility. Each EBITDA measure is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison. SOURCE American Pacific Corporation http://www.apfc.com |