ACETO Reports Fiscal 2013 Second Quarter Results

Thu Feb 7, 2013 5:09pm EST

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FISCAL 2013 SECOND QUARTER HIGHLIGHTS (Comparisons to FY 2012 Q2):

* Net sales increased 2.9% to $114.0 million, from $110.7 million
* Gross profit of $20.7 million, in line with a year ago 
* Net income of $4.5 million, in line with a year ago
* EPS of $0.17, in line with a year ago

PORT WASHINGTON, N.Y., Feb. 7, 2013 (GLOBE NEWSWIRE) -- ACETO Corporation (Nasdaq:ACET), a global
leader in the marketing, sale and distribution of products for Human Health, Pharmaceutical
Ingredients and Performance Chemicals, announced today results of operations for its fiscal 2013
second quarter and six months ended December 31, 2012.

Sal Guccione, Chief Executive Officer of ACETO, stated, "We are pleased with our results for the
first six months of fiscal 2013, with sales up 6.5% and earnings per share up 9.7% on an adjusted
basis. These results reflect the continued execution of our strategies across our three business
segments. Our fiscal second quarter results, with sales up 2.9% and relatively flat net income,
reflect the variability of our order stream, which had some acceleration in our fiscal first
quarter, particularly in the Performance Chemicals segment."

"In the fiscal second quarter, sales within the Human Health segment increased 9.3%, driven by
continued strength in Rising Pharmaceuticals. We have already launched six new generic drug
products in this fiscal year, with four in this quarter, including the launch of our first
authorized generic drug. With a robust product pipeline, we anticipate that new product launches
will continue to be a key growth driver in this segment and expect to launch three new products
during the second half of fiscal 2013. Sales in Pharmaceutical Ingredients increased 2.9% in the
current quarter, while the Performance Chemicals segment experienced a 1.0% decline in sales,
reflecting the favorable order pattern experienced in the first quarter of fiscal 2013.

"Looking at the balance of the year, we remain well positioned for continued growth in sales and
profitability. As we have discussed previously, our business is difficult to forecast on a
quarterly basis due to the timing, size and nature of our orders. In particular, looking at our
upcoming fiscal third quarter, we expect, based upon business to date within the Pharmaceutical
Ingredients segment, to report fiscal third quarter earnings per share significantly beyond those
reported in either of our fiscal first or second quarters of this year," concluded Mr. Guccione.

FINANCIAL REVIEW

Net sales for the fiscal 2013 second quarter ended December 31, 2012 were $114.0 million, a 2.9%
increase from $110.7 million for the fiscal 2012 second quarter. Gross profit for the fiscal 2013
second quarter was $20.7 million, in line with gross profit of $20.6 million in the prior year
period. For the fiscal 2013 second quarter, ACETO reported net income of $4.5 million, or $0.17
per diluted share, compared to $4.6 million, or $0.17 per diluted share, in the prior year period.

Net sales for the six month period ended December 31, 2012 were $225.7 million, a 6.5% increase
from $212.0 million for the six month period ended December 31, 2011. Gross profit for the fiscal
2013 six months was $42.2 million, an increase of 7.8% compared to gross profit of $39.2 million
in the prior year period. For the six month period ended December 31, 2012, ACETO reported net
income of $9.3 million, or $0.34 per diluted share, compared to $7.6 million, or $0.29 per diluted
share, in the prior year period. Net income in the six month period ended December 31, 2012
increased by 22.5% and earnings per share increased by 17.2% compared to the comparable fiscal
2012 period. The fiscal 2012 six month period was negatively impacted by a one-time charge
relating to the separation of certain executive management employees. After adjusting for the
one-time charges, ACETO's net income for the six months ended December 31, 2011 was $8.2 million,
or $0.31 per diluted share.

CONFERENCE CALL

Salvatore Guccione, Ronald Gold, and Douglas Roth will conduct a conference call at 9:00 a.m. ET
on February 8, 2013 to discuss the operating results for the fiscal 2013 second quarter.
Interested parties may participate in the call by dialing 888-895-5271 (847-619-6547 for
international callers) - please call in 10 minutes before the call is scheduled to begin, and ask
for the ACETO call (conference ID # 34143032). The conference call will also be webcast live via
the Investor Relations section of our website, www.aceto.com
http://www.globenewswire.com/newsroom/ctr?d=10021138&l=10&a=www.aceto.com&u=http%3A%2F%2Fwww.aceto.com%2F
. To listen to the live call please go to the website at least 15 minutes early to register,
download and install any necessary audio software. The conference call will be archived on the
Company's website, and a recorded phone replay will also be available from 1:00 p.m. ET on Friday,
February 8, 2013 until 5:00 p.m. ET on Monday, February 11, 2013. Dial 888-843-7419 (630-652-3042
for international callers) and enter the code 34143032 for the phone replay.

ABOUT ACETO

ACETO Corporation, incorporated in 1947, is a global leader in the marketing, sale and
distribution of products for Human Health (finished dosage form generics and nutraceutical
products), Pharmaceutical Ingredients (pharmaceutical intermediates and active pharmaceutical
ingredients) and Performance Chemicals (specialty chemicals and agricultural protection products).
With business operations in nine countries, ACETO distributes over 1,100 chemical compounds used
principally as finished products or raw materials in the pharmaceutical, nutraceutical,
agricultural, coatings and industrial chemical industries. ACETO's global operations, including a
staff of 26 in China and 12 in India, are distinctive in the industry and enable its worldwide
sourcing and regulatory capabilities.

The ACETO Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13058
http://www.globenewswire.com/newsroom/ctr?d=10021138&l=13&u=http%3A%2F%2Fwww.globenewswire.com%2Fnewsroom%2Fprs%2F%3Fpkgid%3D13058

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements as that term is defined in the federal
securities laws. The events described in forward-looking statements contained in this news release
may not occur. Generally, these statements relate to our business plans or strategies, projected
or anticipated benefits or other consequences of ACETO's plans or strategies, financing plans,
projected or anticipated benefits from acquisitions that ACETO may make, or a projection involving
anticipated revenues, earnings or other aspects of ACETO's operating results or financial
position, and the outcome of any contingencies. Any such forward-looking statements are based on
current expectations, estimates and projections of management. ACETO intends for these
forward-looking statements to be covered by the safe-harbor provisions for forward-looking
statements. Words such as "may," "will," "expect," "believe," "anticipate," "project," "plan,"
"intend," "estimate," and "continue," and their opposites and similar expressions are intended to
identify forward-looking statements. The forward-looking statements contained in this press
release include, but are not limited to, statements regarding the Company's strategic initiatives
including selling finished dosage form generic drugs, and statements regarding the prospects for
long-term growth. ACETO cautions you that these statements are not guarantees of future
performance or events and are subject to a number of uncertainties, risks and other influences,
many of which are beyond ACETO's control, which may influence the accuracy of the statements and
the projections upon which the statements are based. Factors that could cause actual results to
differ materially from those set forth or implied by any forward-looking statement include, but
are not limited to, risks and uncertainties discussed in ACETO's reports filed with the Securities
and Exchange Commission, including, but not limited to, ACETO's Annual Report or Form 10-K for the
fiscal year ended June 30, 2012 and other filings. Copies of these filings are available at
www.sec.gov
http://www.globenewswire.com/newsroom/ctr?d=10021138&l=15&a=www.sec.gov&u=http%3A%2F%2Fwww.sec.gov%2F
.

Any one or more of these uncertainties, risks and other influences could materially affect ACETO's
results of operations and whether forward-looking statements made by ACETO ultimately prove to be
accurate. ACETO's actual results, performance and achievements could differ materially from those
expressed or implied in these forward-looking statements. ACETO undertakes no obligation to
publicly update or revise any forward-looking statements, whether from new information, future
events or otherwise.

                                                                                                        
 ACETO Corporation and Subsidiaries                                                                       
 Consolidated Statements of Income                                                                        
 (in thousands, except per share amounts)                                                                 
                                                                                                        
                                                                                                        
                                                  (unaudited)                      (unaudited)            
                                                  Three Months Ended               Six Months Ended       
                                                  December 31,                     December 31,           
                                                  2012            2011            2012       2011       
 Net sales                                        $ 113,956       $ 110,707       $ 225,704  $ 212,024  
 Cost of sales                                    93,248          90,063          183,491    172,861    
 Gross profit                                     20,708          20,644          42,213     39,163     
 Gross profit %                                   18.17%          18.65%          18.70%     18.47%     
                                                                                                        
 Selling, general and administrative expenses     14,096          13,528          27,988     27,097     
 Operating income                                 6,612           7,116           14,225     12,066     
                                                                                                        
 Other income (expense), net of interest expense  486             48              495        (163)      
                                                                                                        
 Income before income taxes                       7,098           7,164           14,720     11,903     
 Income tax provision                             2,585           2,576           5,387      4,282      
 Net income                                       $ 4,513         $ 4,588         $ 9,333    $ 7,621    
                                                                                                        
 Net income per common share                      $ 0.17          $ 0.17          $ 0.35     $ 0.29     
                                                                                                        
 Diluted net income per common share              $ 0.17          $ 0.17          $ 0.34     $ 0.29     
                                                                                                        
 Weighted average shares outstanding:                                                                   
 Basic                                            26,959          26,565          26,882     26,520     
 Diluted                                          27,316          26,737          27,272     26,686     
                                                                                                        


                                                                                                                                                                 
 ACETO Corporation and Subsidiaries                                                                                                                                
 Consolidated Balance Sheets                                                                                                                                       
 (in thousands, except per-share amounts)                                                                                                                          
                                                                                                                                                                 
                                                                                                                               December 31, 2012  June 30, 2012  
                                                                                                                               (unaudited)                       
                                                                                                                                                                 
 Assets                                                                                                                                                          
 Current Assets:                                                                                                                                                 
 Cash and cash equivalents                                                                                                     $ 25,326           $ 24,862       
 Investments                                                                                                                   1,549              1,518          
 Trade receivables: less allowances for doubtful accounts: Dec. 31, 2012 $880; and June 30, 2012 $887                          77,918             74,744         
 Other receivables                                                                                                             3,982              2,979          
 Inventory                                                                                                                     97,373             84,687         
 Prepaid expenses and other current assets                                                                                     2,314              2,231          
 Deferred income tax asset, net                                                                                                1,027              948            
                                                                                                                                                                 
 Total current assets                                                                                                          209,489            191,969        
                                                                                                                                                                 
                                                                                                                                                                 
 Property and equipment, net                                                                                                   11,848             11,705         
 Property held for sale                                                                                                        3,752              3,752          
 Goodwill                                                                                                                      33,541             33,495         
 Intangible assets, net                                                                                                        42,475             45,251         
 Deferred income tax asset, net                                                                                                4,695              4,719          
 Other assets                                                                                                                  9,647              8,389          
                                                                                                                                                                 
 Total Assets                                                                                                                  $ 315,447          $ 299,280      
                                                                                                                                                                 
 Liabilities and Shareholders' Equity                                                                                                                            
                                                                                                                                                                 
 Current liabilities:                                                                                                                                            
 Current portion of long-term debt                                                                                             $ 7,197            $ 6,713        
 Accounts payable                                                                                                              43,982             42,007         
 Accrued expenses                                                                                                              26,973             24,921         
 Total current liabilities                                                                                                     78,152             73,641         
                                                                                                                                                                 
 Long-term debt                                                                                                                40,454             39,052         
 Long-term liabilities                                                                                                         12,475             12,943         
 Environmental remediation liability                                                                                           5,096              5,633          
 Deferred income tax liability                                                                                                 9                  8              
 Total liabilities                                                                                                             136,186            131,277        
                                                                                                                                                                 
 Commitments and contingencies                                                                                                                                   
                                                                                                                                                                 
 Shareholders' equity:                                                                                                                                           
 Common stock, $.01 par value:                                                                                                                                   
 (40,000 shares authorized; 27,297 and 26,937 shares issued and outstanding at Dec. 31, 2012 and June 30, 2012, respectively)  273                269            
 Capital in excess of par value                                                                                                66,625             64,071         
 Retained earnings                                                                                                             108,680            102,344        
 Accumulated other comprehensive income                                                                                        3,683              1,319          
 Total shareholders' equity                                                                                                    179,261            168,003        
                                                                                                                                                                 
 Total liabilities and shareholders' equity                                                                                    $ 315,447          $ 299,280      
                                                                                                                                                                 


                                                                                                                                                                           
 ACETO Corporation                                                                                                                                                             
 Diluted Net Income Per Common Share Excluding Charges (Non-GAAP Reconciliation)                                                                                               
 (in thousands, except per share amounts)                                                                                                                                      
                                                                                                                                                                           
                                                                                                       (unaudited)    (unaudited)        (unaudited)    (unaudited)        
                                                                                                       Six Months     Diluted Net        Six Months     Diluted Net        
                                                                                                       Ended          Income Per         Ended          Income Per         
                                                                                                       December 31,   Common Share       December 31,   Common Share       
                                                                                                       2012           Six Months Ended   2011           Six Months Ended   
                                                                                                                      December 31,                      December 31,       
                                                                                                                      2012                              2011               
                                                                                                                                                                           
 Net income, as reported                                                                               $9,333         $ 0.34             $7,621         $ 0.29             
                                                                                                                                                                           
 Adjustments:                                                                                                                                                              
 Separation charges                                                                                    --             --                 884            0.03               
                                                                                                                                                                           
 Adjusted income excluding charges                                                                     9,333          0.34               8,505          0.32               
 Adjustments to provision for income taxes                                                             --             --                 345            0.01               
                                                                                                                                                                           
 Adjusted net income (Non-GAAP)                                                                        $ 9,333        $ 0.34             $ 8,160        $ 0.31             
                                                                                                                                                                           
 Diluted weighted average shares outstanding                                                           27,272         27,272             26,686         26,686             
                                                                                                                                                                           
 NOTE: Items identified in the above table are not in accordance with, or an alternative method for,   
 generally accepted accounting principles (GAAP) in the United States. These items should not be       
 reviewed in isolation or considered substitutes of the Company's financial results as reported in     
 accordance with GAAP. Due to the nature of these items, it is important to identify these items and to 
 review them in conjunction with the Company's financial results reported in accordance with GAAP. The 
 exclusion of these items also allows investors to compare results of operations in the current period 
 to prior period's results based on the Company's fundamental business performance and analyze the     
 operating trends of the business. The exclusion of these items also allows management to evaluate     
 performance of its business units.                                                                    


CONTACT: Investor Relations Contact:
         Amy Glynn
         The Ruth Group
         (646) 536-7023
         aglynn@theruthgroup.com

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