MIRA
INFORM REPORT
|
Report Date : |
22.10.2008 |
IDENTIFICATION DETAILS
|
Name : |
ACETO CORPORATION |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Date of
Incorporation : |
13.06.1947 |
|
|
|
|
Legal Form : |
Public Company quoted NASDAQ: ACET |
|
|
|
|
Line of Business
: |
Wholesales Pharmaceutical and Industrial Chemicals. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 3,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
GEOPOLITICS
|
POLITICAL DATA |
ECONOMIC DATA |
||
|
FORM OF GOVERNMENT ECONOMIC RISK |
Federal
|
CURRENCY BRANCH SITUATION |
USD Satisfying |
IDENTIFICATION
|
Company Name: |
Aceto Corporation |
||
|
Address: |
|
||
|
Phone: Facsimile: ID: State: Managers: |
+ 1 (516)
627-6000 + 1 (516) 627-6093 80014 Leonard S. Schwartz, President |
Date founded: |
June 13, 1947
This is public company quoted NASDAQ: ACET 24,445,572 Shares 0.01 USD 227 employees |
|
Legal form: |
|||
|
Stock: Value: |
|||
|
Staff: |
|||
|
Business: |
Wholesales pharmaceutical and industrial chemicals. |
||
BANKS
JP Morgan Chase Bank
BUSINESS
Business & Operations:
Aceto Corporation, together with its
subsidiaries, engages in sourcing, quality assurance, regulatory support,
marketing, and distributing chemically derived pharmaceuticals,
biopharmaceuticals, specialty chemicals, and crop protection products.
It operates in three segments: Health Sciences, Chemicals and Colorants,
and Crop Protection. The Health Sciences segment offers 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 offers specialty
chemicals used in plastics, resins, adhesives, coatings, food, flavor
additives, fragrances, cosmetics, metal finishing, electronics, and
air-conditioning systems. This segments products
include dye and pigment intermediates, which are used in the color-producing
industries, such as textiles, inks, paper, and coatings; and organic
intermediates used in the production of agrochemicals.
The Crop Protection segment provides herbicides, fungicides, and
insecticides that control weed growth, as well as control the spread of insects
and other micro organisms that damage plant growth. This segment also offers a
sprout inhibitor for potatoes and an herbicide for sugar cane. Aceto Corporation serves a range of companies in the
pharmaceutical, agricultural, color, surface coating/ink, general chemical
consuming, and health science industries in the
SHAREHOLDERS – SUBSIDIARIES
– MANAGERS
The directors of the
company are:
Leonard S. Schwartz, Presisent,
Douglas Roth, Chief
Financial Officer,
Michael Feinman,
President of Aceto Agricultural Chemicals.
The major holders are:
SCHWARTZ LEONARD S,
DEBENEDITTIS FRANK,
MIATA VINCENT G,
FEINMAN MICHAEL W,
ROTH
FINANCIALS – COMMERCIAL TRENDS
AND FORECAST
The revenue on June 2008 was in the range of
359,591,000 USD compared to 313,473,000 USD at the same period for the previous
year.
The net income was in the range of 13,473,000 USD
compared to 10,212,000 USD at the same period for the previous year.
All numbers are in thousand
Annual Income
Statement:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual Balance
Sheet
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEGALS
0 Suits
0 Judgments
0 Liens
0 Collection Claims
Reported
0 NSF Cheques Reported
0 UCC Filings
RATING
Local credit bureau gave a good credit rate.
The Company is in “good standing”.
This means that all local and federal taxes were paid on due date.
-
The cash flow is good.
-
Payments are made on a regular basis.
Our final opinion
This is a medium Company working on the global market.
The company presents pretty good financial figures.
A credit line may be considered.
SUMMARY
|
FINANCIAL SUMMARY |
DEBT COLLECTIONS
AND PAYMENTS |
||
|
PROFITABILITY INDEBTNESS CASH |
Medium Controlled Good |
PUBLIC PAYMENTS |
No Regular |
ADVISED
CREDIT
3,000,000 USD
ACETO CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2008 AND 2007
(in thousands, except per-share
amounts)
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $
46,515 $
32,320
Investments 548
3,036
Trade receivables: less allowance for doubtful accounts
(2008, $477;
2007, $491) 68,220
58,206
Other receivables 4,819
3,123
Inventory 71,109
60,679
Prepaid expenses and other current assets 817 1,128
Deferred income tax asset, net 1,756
2,541
Total current assets 193,784 161,033
Long-term notes receivable 347 449
Property and equipment, net
4,307
4,406
Property held for sale 6,978
5,268
Goodwill 1,987
1,820
Intangible assets, net 5,421
5,817
Deferred income tax asset, net
4,098
5,958
Other assets 5,321
3,727
TOTAL ASSETS $
222,243 $
188,478
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $
43,480 $ 32,539
Short term bank loans -
25
Note payable – related party
500 500
Accrued expenses 19,948 14,154
Deferred income tax liability 1,070
885
Total current liabilities
64,998
48,103
Long-term liabilities 7,034 6,684
Environmental remediation liability 7,578 5,816
Deferred income tax liability 1,751 2,746
Minority interest 473 302
Total liabilities 81,834
63,651
Commitments and contingencies (Note 16)
Shareholders’ equity:
Common stock, $.01 par value, 40,000 shares authorized;
25,644 shares issued;
24,446 and 24,330 shares
outstanding at June 30,
2008 and 2007, respectively 256
256
Capital in excess of par value 56,832
56,854
Retained earnings 81,778 74,419
Treasury stock, at cost, 1,198 and 1,314 shares at June 30,
2008
and 2007, respectively
(11,571 )
(12,693 )
Accumulated other comprehensive income 13,114
5,991
Total shareholders’ equity 140,409
124,827
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 222,243 $
188,478
ACETO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED JUNE 30, 2008, 2007 AND 2006
(in thousands, except per-share
amounts)
2008 2007 2006
Net sales $
359,591 $ 313,473 $ 297,328
Cost of sales 292,286
258,980 246,370
Gross profit 67,305 54,493 50,958
Selling, general and administrative expenses 45,422
39,418 38,509
Research and development expenses 506 11 20
Operating income 21,377
15,064 12,429
Other income (expense):
Interest expense
(145 ) (173
) (127 )
Interest and other income, net 957
532 956
812 359 829
Income from continuing operations before income taxes 22,189
15,423 13,258
Provision for income taxes 8,716 5,211 3,994
Income from continuing operations 13,473 10,212 9,264
Loss from discontinued operations, net of income taxes (Note
3) - - (27 )
Net income
$ 13,473 $ 10,212 $ 9,237
Basic income per common share:
Income from continuing operations $
0.55 $ 0.42 $ 0.38
Loss from discontinued operations - - -
Net income
$ 0.55 $ 0.42 $ 0.38
Diluted income per common share:
Income from continuing operations $
0.54 $ 0.41 $ 0.38
Loss from discontinued operations - - -
Net income $
0.54 $ 0.41 $ 0.38
Weighted average shares outstanding:
Basic 24,346 24,305 24,267
Diluted
24,800
24,711 24,590
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.79 |
|
|
1 |
Rs.81.27 |
|
Euro |
1 |
Rs.63.91 |
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. |
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 |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)