MIRA
INFORM REPORT
|
Report Date : |
09.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ACETO
CORPORATION |
|
|
|
|
Registered Office : |
One
Hallow Lane, Lake Success, New York 11042 |
|
|
|
|
Country : |
United
States |
|
|
|
|
Date of Incorporation : |
1947 |
|
|
|
|
Legal Form : |
Corporation
- Public |
|
|
|
|
Line of Business : |
Marketing,
sale, and distribution of pharmaceutical, biopharmaceutical, specialty, and
industrial chemicals. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
$100,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
IDENTIFICATION &
EXECUTIVE SUMMARY
|
Company Name |
ACETO
CORPORATION |
|
Address |
One
Hallow Lane |
|
City |
Lake
Success |
|
State/Province |
NEW
YORK |
|
Zip Code |
11042 |
|
Country |
UNITED
STATES |
|
Telephone |
516
627-6000 |
|
Facsimile |
516
627-6093 |
|
Legal Form |
Corporation
- Public |
|
Founded (D/M/Y) |
/ /1947 |
|
In KUSD As of |
30/06/2006 |
|
Sales / Revenue |
297,130 |
|
Net Income |
9,237 |
|
Total Equity |
115,053 |
|
Number of Employees |
240 |
|
Website |
www.aceto.com |
|
Maj. Shareholder |
T.
Rowe Price Associates, Inc. |
|
Business Activity |
Aceto
Corporation engages in the marketing, sale, and distribution of
pharmaceutical, biopharmaceutical, specialty, and industrial chemicals. |
NOTE TO CLIENT
NOTE:
THE FIRM FILES PUBLICLY WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION.
----------------------------------------------------------------------
Credit
can be reasonably accepted up to $100,000.
LEGAL
Legal
Form :
Corporation - Public
Since
(D/M/Y) : 13/06/1947
State/Province
of Incorporation : NY
Status : ACTIVE
Previous
Legal Form :
Company
is required to publish an annual financial report.
The
Company is incorporated in the State of New York:
Current
Entity Name : ACETO CORPORATION
Initial
DOS Filing Date : JUNE 13, 1947
County : NASSAU
Jurisdiction : NEW YORK
Entity
Type : DOMESTIC
BUSINESS CORPORATION
Current
Entity Status : ACTIVE
Selected
Entity Address Information DOS Process
ACETO
CORPORATION
ONE
HOLLOW LANE
LAKE
SUCCESS, NEW YORK, 11042-1215
Principal Executive Office:
ACETO
CORPORATION
1 HOLLOW
LANE
LAKE
SUCCESS, NEW YORK, 11042-1215
Registered
Agent: NONE
----------------------------------------------------------------------
The
Company is publicly listed on the Nasdaq stock exchange under the symbol: ACET.
As of
Jul. 18, 2006:
Closing
Price: US$ 8.94
52 Weeks
High/Low: US$ 9.25/US$ 6.33
Shares
Outstanding: 24,287,000
Market
Value: US$ 217,125,780
Managers/Key
Personnel
Mr.
Leonard S. Schwartz Chairman
& Chief Executive Officer
Mr.
Douglas Roth Chief Financial Officer
Mr.
Frank DeBenedittis Senior Vice President
Mr.
Vincent Miata Senior Vice President
OWNERS
T. Rowe
Price Associates, Inc. 9.30% Majority
Royce
& Associates, LLC 9.10 Shareholder
Mr. Hans
Noetzli 6.50 Shareholder
Schweizerhall,
Inc. 6.40 Shareholder
AFFILIATED ENTITIES
There
are no other affiliated companies.
The
Company has the following subsidiaries:
Acci
Realty Corp. New York
Aceto
Agricultural Chemicals Corp. New
York
Aceto
Industrial Chemical Corp. New
York
Arsynco,
Inc.
New Jersey
Larlabs,
Inc.
New York
Roehr
Chemicals, Inc. New
York
CDC
Products Corp. New York
Magnum
Research Corp.
New York
Aceto
Holding GmbH Germany
Aceto
Pharna GmbH Germany
Aceto
Finechem GmbH Germany
Pharma
Waldhof GmbH
Germany
Aceto
Luxembourg S.a.r.L. Luxembourg
Aceto
(Holding) B.V. The
Netherlands
Aceto
B.V. The Netherlands
Aceto
France S.A.S France
Aceto
Ltd. Bermuda
Aceto
Pharma GmbH - India
India
Aceto
Pte Ltd. Singapore
Aceto
(Hong Kong) Ltd. Hong
Kong
Aceto
(Shanghai) Ltd. China
Aceto
Pharmaceutical (Shanghai) Ltd.
China
Aceto
Agricultural Chemical Corp. (UK) Ltd.
United Kingdom
BANKS
NY
Telephone:
Facsimile:
Account
Number:
Account
Manager:
The
Company has a revolving credit agreement with a financial institution that
expires June 30, 2007, and provides for
available credit of $10,000.
PAYMENT HISTORY
BUSINESS
DATE LAST PAYMENT CREDIT BALANCE CUR 1- 31- 61-
CATEGORY
REPTD SALE TERMS $
$ % 30
60 90 91+ COMMENTS
---------- ----- ----- ------- --------
-------- --- --- --- --- --- --------
BUS SERVCS 06-10 06-10 NET 30 0
0 0 0
0 0 0
BUS SERVCS 06-12 00-00 NET 7 3500
1400 69 0
31 0 0
FACTOR
07-01 05-11 NET 32300 0
0 0 0 0 0
CUST 7 YR
FINCL SVCS 06-12 06-10 NET 30 47300
0 0 0
0 0 0 ACCTCLOSED
FINCL SVCS 06-12 00-00 0000000 0 0 0 0 0
0 0 SATSFTRY
FREIGHT
06-09 06-09 VARIED 24900 24900
88 0 0 0 12
FRGHT FWRD 06-12 06-08 NET 30 3800
0 0 0
0 0 0
NEWSPAPERS 06-12 00-00 NET 30 0
0 0 0
0 0 0
OFFC SUPPL 06-12 02-05 CREDIT 2300
0 0 0
0 0 0
PETROLEUM
06-12 01-08 VARIED 1900 0
0 0 0 0 0
ACCTCLOSED
TRUCK DLR
06-12 00-00 CONTRCT 52000
47900 53 35
12 0 0
AIR TRANS
05-12 00-00 NET 30 2600 100
0 100 0 0
0 CUST 16 YR
AUTO LEASE 06-08 00-00 VARIED 32200
21600 100 0 0
0 0 CUST 6 YR
CHEMICALS
06-01 05-11 NET 30 50000 0
0 0 0 0 0
COMPUTERS
05-05 00-00 VARIED 0 0 0 0 0
0 0 CUST 37 YR
COMPUTERS
04-02 00-00 NET 30 0 0 0 0 0
0 0
CRED CARD
07-01 06-02 REVOLVE 300
0 0 0
0 0 0 CUST 44 YR
FINCL SVCS 06-03 05-11 CONTRCT 0 0 0 0 0
0 0 SATSFTRY
FREIGHT
04-02 00-00 NET 30 7800 7800
77 0 0 23 0
FREIGHT
05-04 04-01 VARIED 600 400
0 100 0 0
0
FREIGHT
05-12 03-08 VARIED 0 0 0 0 0
0 0
GENERAL
04-05 97-04 NET 30 0 0 0 0 0
0 0 CUST 8 YR
LEASING
06-12 00-00 NET 30 500 200
100 0 0 0
0 CUST 3 YR
MISC MANUF 04-01 00-00 VARIED 400
0 0 0
0 0 0
PETROLEUM
04-10 00-00 VARIED 3500 900
100 0 0 0
0 PROMPT
SAFTY PROD 06-03 00-00 NET 30 500
100 0 0
0 0 100 CUST 1 YR
CURRENT QUARTER 168000
74200 65 23
8 0 4
Payment Trends
INDUSTRY BUSINESS
BALANCE CUR 1- 31- 61-
DATE
CUR DBT DBT $ % 30
60 90 91+
--------
--- --- --- -------- --- --- --- --- ---
20061200
0 9 12 70800 55
34 7 0 4
20061100
0 8 12 65400 65 22
8 0 5
20061000
0 7 12 65600 66 22
7 0 5
20060900
0 6 11 34800 64 19
17 0 0
20060800
0 8 25
73100 11
62 16 11 0
20060700
0 8 20 78800 43 34
15 0 8
Payment History - Quarterly Averages
BALANCE CUR 1- 31- 61-
QUARTER
YEAR DBT $ % 30
60 90 91+
-------- ------ ---
-------- --- --- --- --- ---
Fourth
2006 12 69800 62 26 8
0 4
Third
2006 17 57800 42 38 13
5 2
Second
2006 21
49300 50 29 9 0
12
First
2006 22 37200 57 19 9
3 12
Fourth
2005 6 68900 73 21 5
1 0
FINANCIAL INFORMATION
FINANCIAL
FIGURES
Year-End
(D/M/Y): 30/09/2006 30/06/2006 30/06/2005
Quarterly Consolidated Consolidated
Sales / Revenues 74,725
297,130 313,381
Interest Income - 1,412
1,321
Gross Margin 12,891 50,759
53,101
Operating Income (Loss) 3,487 11,973
11,540
Interest on Loans 13 127
73
Other Expenses 3,329 2,840
1,137
Extraordinary Item - -27
-610
RESULTS
Income before Taxes 3,675
13,258 12,788
Income Tax 1,213 3,994
2,163
Net Income 2,462 9,237
10,015
ASSETS
Cash and Equivalents 36,261 33,732 19,950
Inventory 45,537 47,259
51,964
Accounts Receivables 58,885 55,795 53,837
Other Current Assets 1,328 1,011 821
Total Current Assets 147,358 141,106 131,640
Property Plant & Equip 9,249
9,339 5,543
Other Fixed Assets 9,542
10,046 6,348
Total Fixed Assets 24,827 25,486 17,388
Intangibles 5,496 5,544
4,873
Total Assets 172,185 166,592
149,028
LIABILITIES
Trade Creditors 39,061
36,399 37,219
Other Current Liab - -
46
Total Current Liab 39,061
36,399 37,391
Other Long Term Liab 14,963 15,140
3,982
Total Long Term Liab 14,963 15,140 3,982
Total Liabilities 54,024
51,539 41,373
EQUITY
Retained Earnings 70,926
68,464 62,864
Total Equity 118,161 115,053
107,655
FINANCIAL
ANALYSIS
Actual Previous Percentage of total assets
30/09/2006 30/06/2006
30/09/2006 30/06/2006
Cash and Equivalents 36,261 33,732
21.06 20.25
Inventory 45,537
47,259 26.45 28.37
Other Current Assets 1,328 1,011
0.77 0.61
Total Current Assets 147,358 141,106
85.58 84.70
Intangibles 5,496
5,544 3.19 3.33
Total Assets 172,185
166,592 100.00 100.00
Total Current Liab 39,061
36,399 22.69
21.85
Other Long Term Liab 14,963 15,140
8.69 9.09
Total Liabilities 54,024
51,539 31.38 30.94
Total Equity 118,161
115,053 68.62 69.06
CURRENT OPERATIONS
NAICS
Code: 42269 Other Chemical and Allied Products Wholesalers
SIC
Code: 5169
Number
of Employees: 240
Business
Activity:
Aceto
Corporation engages in the marketing, sale, and distribution of pharmaceutical,
biopharmaceutical, specialty, and industrial chemicals.
The
chemicals are used in the agricultural, color producing, pharmaceutical,
nutraceutical, and surface coating industries.
The
Company operates in three segments: Health Sciences, Chemicals and Colorants,
and Agrochemicals. The Health Sciences segment includes the active ingredients
for generic pharmaceuticals, vitamins, and nutritional supplements, as well as
products used in preparing pharmaceuticals primarily by drug companies and
biopharmaceuticals. The Chemicals and Colorants segment includes various
specialty chemicals used in plastics, resins, adhesives, coatings, food, flavor
additives, fragrances, cosmetics, metal finishing, electronics, airconditioning
systems, and other areas; dye and pigment intermediates used in the
color-producing industries, such as textiles, inks, paper, and coatings; and
intermediates used in the production of agrochemicals. The Agrochemicals
segment offers herbicides, fungicides, and insecticides, as well as a sprout
inhibitor for potatoes.
The
general headquarters and main sales office occupy approximately 26,000 square
feet of leased space in an office building in Lake Success, New York. The lease
expires in April 2011.
The two
subsidiaries in the Institutional Sanitary Supplies segment occupy 44,000
square feet of leased space in an industrial park in New Hyde Park, New York.
The lease expires in November 2009.
The
former manufacturing facility is located on an 11-acre parcel in Carlstadt, New
Jersey, that is owned. This parcel contains one building with approximate 5,000
square feet of office space.
In
November 2004, the Company purchased approximately 1,300 gross square meters of
office space located in Shanghai, China for sales offices and investment
purposes.
The Company
also leases office space in Waldshut, Germany; Hamburg, Germany; Dusseldorf,
Germany; Heemskerk, the Netherlands; Paris, France; Lyon, France; Singapore;
Warsaw, Poland and Mumbai, India. These offices are used for sales and
administrative purposes.
The
Company believes that the properties are generally well maintained, in good
condition and adequate for their1 present needs.
PUBLIC RECORD
The
Company is subject to various claims that have arisen in the normal course of
business. They do not know what impact the final resolution of these matters
will have on their results of operations in a particular reporting period. They
believe, however, that the ultimate outcome of such matters will not have a
material adverse effect on the financial condition or liquidity.
One of
the subsidiaries is a defendant in a legal action alleging patent infringement.
The patents in question cover a particular method of applying one of the
products in our Agrochemicals segment. The plaintiff in this action is seeking
damages for lost profits and/or royalties, plus treble damages, prejudgment
interest and attorney's fees. The Company has denied liability and asserted
various defenses, including non-infringement, patent invalidity, and patent
unenforceability due to inequitable conduct. A trial is expected to begin later
this calendar year. The Company believes there is no merit to this claim and
intend to vigorously contest it. As the ultimate outcome of this action is
unknown, the Company has no provision recorded for it in the accompanying
consolidated financial statements as of June 30, 2005.
No
petitions for bankruptcy protection were found.
GENERAL COMMENTS
Aceto
Corporation engages in the marketing, sale, and distribution of pharmaceutical,
biopharmaceutical, specialty, and industrial chemicals. The payment record is
satisfactory and the operating history is clear. This company is considered
responsible for normal business transactions.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong) capability
for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|