Cambrex Corporation Reports Record First Quarter 2001 Sales and Income

Apr 24, 2001, 01:00 ET from Cambrex Corporation

    EAST RUTHERFORD, N.J., April 24 /PRNewswire Interactive News Release/ --
 Cambrex Corporation (NYSE:   CBM), today reported record first quarter earnings
 of $14.4 million compared to $12.3 million in the first quarter of 2000.
 Earnings per share increased to $0.55 from $0.48 in the first quarter of 2000.
 Gross sales in the quarter increased to a record $131.2 million from $129.0
 million in the first quarter of 2000.  Net income improved 16.9% primarily on
 higher sales and gross profit in the life sciences businesses coupled with
 lower interest and tax expense.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO )
     Comparing the first quarter of 2001 to the first quarter of 2000, Human
 Health sales were up 5.8% due to increased sales of pharmaceuticals used in
 cardiovascular and central nervous system preparations, increased shipments of
 a pharmaceutical intermediate used in Genzyme's Renagel(R) product and the
 impact of sales from acquisitions.  Human Health sales growth would have been
 8.5% except for negative currency impact.
     Biosciences sales increased 8.4% from strong shipments of media, serum and
 human cell products.  The growth rate would have been 10.0% except for
 negative currency impact.  Animal Health/Agriculture business improved 32.0%
 primarily due to the timing of orders.  Specialty and Fine Chemicals business
 sales decreased 24.2% due to lower sales of encapsulants, performance
 enhancing products to the pigment and additives markets and weak photographic
 demand.
     Gross profit in the first quarter of 2001 was $50.3 million compared to
 $46.1 million in 2000.  Gross margin improved to 38.4% versus 35.8% in the
 first quarter of 2000 primarily driven by strong product mix in Human Health
 and improvement in Animal Health/Agriculture despite significant raw material
 and energy cost increases.  Gross margin for the Animal Health/Agriculture
 segment included an insurance recovery of costs incurred as a result of a
 damaged reactor which is in the process of being replaced.
     First quarter operating expenses increased to 21.4% of sales from the
 prior year's 19.2%, reflecting higher research and development spending and
 increased administrative costs due to acquisitions and differences in timing
 of certain annual expenses.  Administrative expenses in first quarter 2000
 were reduced by a $900,000 insurance recovery related to previously incurred
 environmental expenses.  Operating income for the first quarter of 2001 was
 $22.3 million compared to $21.4 million in 2000 due to the increased sales and
 improved gross margin.
     James A. Mack, Chairman and CEO, commented, "Our core life science
 products had continued growth during the first quarter which resulted in
 improved gross margins and total profitability.  The economy is showing signs
 of lower demand in some market segments which, when combined with continued
 high energy and raw material costs, clearly impacted some of our businesses.
 However, we see more opportunities than ever to grow our life sciences
 businesses through acquisitions and internal development.  For example, we
 have just received our DEA manufacturer's registration for Class II controlled
 substances.  This full scale capability will differentiate us as a key
 supplier to Attention Deficit Disorder (ADD) and other controlled substance
 markets."
 
     Various statements made within this press release may constitute
 "forward-looking statements" for purposes of the Securities and Exchange
 Commission's "safe harbor" provisions under the Private Securities Litigation
 Reform Act of 1995 and Rule 3B-6 under The Exchange Act.  The forward-looking
 statements contained herein involve risks and uncertainties that could cause
 results to differ materially from the Company's expectations.
 
     Cambrex Corporation provides products and services to the life sciences
 industries.
 
                              CAMBREX CORPORATION
                               Financial Summary
                     Quarters Ended March 31, 2001 and 2000
                   (in thousands, except earnings per share)
 
                                                         2001           2000
 
     Gross Sales                                     $131,185       $128,986
     Operating Profit                                 $22,264        $21,441
     Net Income                                       $14,392        $12,312
 
     Earnings per share data (basic):
     Net Income                                          $.57           $.50
     Average Shares Outstanding                        25,411         24,706
 
     Earnings per share data (diluted):
     Net Income                                          $.55           $.48
     Average Shares Outstanding                        26,291         25,852
 
                              CAMBREX CORPORATION
                     Gross Sales & Gross Profit by Segment
                     Quarters Ended March 31, 2001 and 2000
                                 (in thousands)
 
                            First Quarter 2001         First Quarter 2000
 
                        Gross      Gross     GP%    Gross     Gross      GP%
                        Sales     Profit            Sales    Profit
 
     Human Health     $64,949    $26,720   41.1%  $61,412   $24,547    40.0%
 
     Biosciences       27,326     14,919   54.6%   25,204    13,800    54.8%
 
     Animal Health
     /Agriculture      16,019      3,645   22.8%   12,159     1,618    13.3%
 
     Specialty and
      Fine Chemicals   22,891      5,032   22.0%   30,211     6,184    20.5%
 
     Total           $131,185    $50,316   38.4% $128,986   $46,149    35.8%
 
                             GROSS SALES COMPARISON
 
                               2001          2000       Change        Change
                              Gross         Gross            $             %
                              Sales         Sales
 
     Human Health           $64,949       $61,412       $3,537          5.8%
 
     Biosciences             27,326        25,204        2,122          8.4%
 
     Animal Health
     /Agriculture            16,019        12,159        3,860         31.7%
 
     Specialty and
      Fine Chemicals         22,891        30,211      (7,320)       (24.2%)
 
     Total                 $131,185      $128,986       $2,199          1.7%
 
 
                              CAMBREX CORPORATION
                          Statement of Profit and Loss
                 For the Quarters Ended March 31, 2001 and 2000
                                 (in thousands)
 
 
                                    2001                        2000
 
                             Amount          % of       Amount          % of
                                            Sales                      Sales
 
     Gross Sales           $131,185        100.0%     $128,986        100.0%
     Commissions
      and Allowances          1,256          1.0%          990          0.8%
     Net Sales              129,929         99.0%      127,996         99.2%
 
     Other Revenue            1,348          1.0%        1,542          1.2%
 
     Net Revenue            131,277        100.0%      129,538        100.4%
 
     Cost of Sales           80,961         61.6%       83,389         64.6%
 
     Gross Profit            50,316         38.4%       46,149         35.8%
 
     Operating Expenses
      Marketing/Sales         6,239          4.8%        6,143          4.8%
      Research & Development  4,596          3.5%        3,731          2.9%
      Administrative
       Expenses              14,968         11.4%       12,659          9.8%
      Amortization            2,249          1.7%        2,175          1.7%
     Total Operating
      Expenses               28,052         21.4%       24,708         19.2%
 
     Operating Profit        22,264         17.0%       21,441         16.6%
 
     Other Expenses
      Interest - Other        2,138          1.6%        3,089          2.4%
      Other (Income)/Expenses (144)        (0.1)%        (161)        (0.1)%
      Total Other Expenses    1,994          1.5%        2,928          2.3%
 
     Profit Before Tax       20,270         15.5%       18,513         14.3%
 
     Provision for
      Income Taxes            5,878          4.5%        6,201          4.8%
 
     Net Income             $14,392         11.0%      $12,312          9.5%
 
 
                              CAMBREX CORPORATION
                           Consolidated Balance Sheet
                         As of March 31, 2001 and 2000
                                 (in thousands)
 
                                                         2001           2000
     Current Assets
     Cash and Cash Equivalents                        $38,005        $44,799
     Trade Receivables, net                            73,835         79,401
     Inventories                                      108,882         95,860
     Other Current Assets                              16,221         16,317
     Deferred Tax Asset                                14,743         16,422
        Total Current Assets                          251,686        252,799
 
     Property, Plant and Equipment, Net               276,911        290,416
     Other Assets                                      12,320          9,458
     Intangibles, net                                 144,721        145,852
 
        Total Assets                                 $685,638       $698,525
 
     Current Liabilities
     Trade Accounts Payable                           $49,844        $44,959
     Accrued Liabilities                               27,975         25,600
     Income Taxes                                       8,143          9,304
     Short-term Debt and Current Portion
      of Long-term Debt                                 1,132          3,273
        Total Current Liabilities                      87,094         83,136
 
     Long-term Debt                                   178,622        223,220
     Deferred Tax Liabilities                          61,531         59,457
     Other Liabilities                                 23,784         28,136
 
        Total Liabilities                            $351,031       $393,949
 
        Shareholders' Equity                         $334,607       $304,576
 
        Total Liabilities and Shareholders' Equity   $685,638       $698,525
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X47917627
 
 

SOURCE Cambrex Corporation
    EAST RUTHERFORD, N.J., April 24 /PRNewswire Interactive News Release/ --
 Cambrex Corporation (NYSE:   CBM), today reported record first quarter earnings
 of $14.4 million compared to $12.3 million in the first quarter of 2000.
 Earnings per share increased to $0.55 from $0.48 in the first quarter of 2000.
 Gross sales in the quarter increased to a record $131.2 million from $129.0
 million in the first quarter of 2000.  Net income improved 16.9% primarily on
 higher sales and gross profit in the life sciences businesses coupled with
 lower interest and tax expense.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO )
     Comparing the first quarter of 2001 to the first quarter of 2000, Human
 Health sales were up 5.8% due to increased sales of pharmaceuticals used in
 cardiovascular and central nervous system preparations, increased shipments of
 a pharmaceutical intermediate used in Genzyme's Renagel(R) product and the
 impact of sales from acquisitions.  Human Health sales growth would have been
 8.5% except for negative currency impact.
     Biosciences sales increased 8.4% from strong shipments of media, serum and
 human cell products.  The growth rate would have been 10.0% except for
 negative currency impact.  Animal Health/Agriculture business improved 32.0%
 primarily due to the timing of orders.  Specialty and Fine Chemicals business
 sales decreased 24.2% due to lower sales of encapsulants, performance
 enhancing products to the pigment and additives markets and weak photographic
 demand.
     Gross profit in the first quarter of 2001 was $50.3 million compared to
 $46.1 million in 2000.  Gross margin improved to 38.4% versus 35.8% in the
 first quarter of 2000 primarily driven by strong product mix in Human Health
 and improvement in Animal Health/Agriculture despite significant raw material
 and energy cost increases.  Gross margin for the Animal Health/Agriculture
 segment included an insurance recovery of costs incurred as a result of a
 damaged reactor which is in the process of being replaced.
     First quarter operating expenses increased to 21.4% of sales from the
 prior year's 19.2%, reflecting higher research and development spending and
 increased administrative costs due to acquisitions and differences in timing
 of certain annual expenses.  Administrative expenses in first quarter 2000
 were reduced by a $900,000 insurance recovery related to previously incurred
 environmental expenses.  Operating income for the first quarter of 2001 was
 $22.3 million compared to $21.4 million in 2000 due to the increased sales and
 improved gross margin.
     James A. Mack, Chairman and CEO, commented, "Our core life science
 products had continued growth during the first quarter which resulted in
 improved gross margins and total profitability.  The economy is showing signs
 of lower demand in some market segments which, when combined with continued
 high energy and raw material costs, clearly impacted some of our businesses.
 However, we see more opportunities than ever to grow our life sciences
 businesses through acquisitions and internal development.  For example, we
 have just received our DEA manufacturer's registration for Class II controlled
 substances.  This full scale capability will differentiate us as a key
 supplier to Attention Deficit Disorder (ADD) and other controlled substance
 markets."
 
     Various statements made within this press release may constitute
 "forward-looking statements" for purposes of the Securities and Exchange
 Commission's "safe harbor" provisions under the Private Securities Litigation
 Reform Act of 1995 and Rule 3B-6 under The Exchange Act.  The forward-looking
 statements contained herein involve risks and uncertainties that could cause
 results to differ materially from the Company's expectations.
 
     Cambrex Corporation provides products and services to the life sciences
 industries.
 
                              CAMBREX CORPORATION
                               Financial Summary
                     Quarters Ended March 31, 2001 and 2000
                   (in thousands, except earnings per share)
 
                                                         2001           2000
 
     Gross Sales                                     $131,185       $128,986
     Operating Profit                                 $22,264        $21,441
     Net Income                                       $14,392        $12,312
 
     Earnings per share data (basic):
     Net Income                                          $.57           $.50
     Average Shares Outstanding                        25,411         24,706
 
     Earnings per share data (diluted):
     Net Income                                          $.55           $.48
     Average Shares Outstanding                        26,291         25,852
 
                              CAMBREX CORPORATION
                     Gross Sales & Gross Profit by Segment
                     Quarters Ended March 31, 2001 and 2000
                                 (in thousands)
 
                            First Quarter 2001         First Quarter 2000
 
                        Gross      Gross     GP%    Gross     Gross      GP%
                        Sales     Profit            Sales    Profit
 
     Human Health     $64,949    $26,720   41.1%  $61,412   $24,547    40.0%
 
     Biosciences       27,326     14,919   54.6%   25,204    13,800    54.8%
 
     Animal Health
     /Agriculture      16,019      3,645   22.8%   12,159     1,618    13.3%
 
     Specialty and
      Fine Chemicals   22,891      5,032   22.0%   30,211     6,184    20.5%
 
     Total           $131,185    $50,316   38.4% $128,986   $46,149    35.8%
 
                             GROSS SALES COMPARISON
 
                               2001          2000       Change        Change
                              Gross         Gross            $             %
                              Sales         Sales
 
     Human Health           $64,949       $61,412       $3,537          5.8%
 
     Biosciences             27,326        25,204        2,122          8.4%
 
     Animal Health
     /Agriculture            16,019        12,159        3,860         31.7%
 
     Specialty and
      Fine Chemicals         22,891        30,211      (7,320)       (24.2%)
 
     Total                 $131,185      $128,986       $2,199          1.7%
 
 
                              CAMBREX CORPORATION
                          Statement of Profit and Loss
                 For the Quarters Ended March 31, 2001 and 2000
                                 (in thousands)
 
 
                                    2001                        2000
 
                             Amount          % of       Amount          % of
                                            Sales                      Sales
 
     Gross Sales           $131,185        100.0%     $128,986        100.0%
     Commissions
      and Allowances          1,256          1.0%          990          0.8%
     Net Sales              129,929         99.0%      127,996         99.2%
 
     Other Revenue            1,348          1.0%        1,542          1.2%
 
     Net Revenue            131,277        100.0%      129,538        100.4%
 
     Cost of Sales           80,961         61.6%       83,389         64.6%
 
     Gross Profit            50,316         38.4%       46,149         35.8%
 
     Operating Expenses
      Marketing/Sales         6,239          4.8%        6,143          4.8%
      Research & Development  4,596          3.5%        3,731          2.9%
      Administrative
       Expenses              14,968         11.4%       12,659          9.8%
      Amortization            2,249          1.7%        2,175          1.7%
     Total Operating
      Expenses               28,052         21.4%       24,708         19.2%
 
     Operating Profit        22,264         17.0%       21,441         16.6%
 
     Other Expenses
      Interest - Other        2,138          1.6%        3,089          2.4%
      Other (Income)/Expenses (144)        (0.1)%        (161)        (0.1)%
      Total Other Expenses    1,994          1.5%        2,928          2.3%
 
     Profit Before Tax       20,270         15.5%       18,513         14.3%
 
     Provision for
      Income Taxes            5,878          4.5%        6,201          4.8%
 
     Net Income             $14,392         11.0%      $12,312          9.5%
 
 
                              CAMBREX CORPORATION
                           Consolidated Balance Sheet
                         As of March 31, 2001 and 2000
                                 (in thousands)
 
                                                         2001           2000
     Current Assets
     Cash and Cash Equivalents                        $38,005        $44,799
     Trade Receivables, net                            73,835         79,401
     Inventories                                      108,882         95,860
     Other Current Assets                              16,221         16,317
     Deferred Tax Asset                                14,743         16,422
        Total Current Assets                          251,686        252,799
 
     Property, Plant and Equipment, Net               276,911        290,416
     Other Assets                                      12,320          9,458
     Intangibles, net                                 144,721        145,852
 
        Total Assets                                 $685,638       $698,525
 
     Current Liabilities
     Trade Accounts Payable                           $49,844        $44,959
     Accrued Liabilities                               27,975         25,600
     Income Taxes                                       8,143          9,304
     Short-term Debt and Current Portion
      of Long-term Debt                                 1,132          3,273
        Total Current Liabilities                      87,094         83,136
 
     Long-term Debt                                   178,622        223,220
     Deferred Tax Liabilities                          61,531         59,457
     Other Liabilities                                 23,784         28,136
 
        Total Liabilities                            $351,031       $393,949
 
        Shareholders' Equity                         $334,607       $304,576
 
        Total Liabilities and Shareholders' Equity   $685,638       $698,525
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X47917627
 
 SOURCE  Cambrex Corporation

RELATED LINKS

http://www.cambrex.com