<PAGE> 1
CONFORMED
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended September 30, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from to
----------- -----------
Commission file number 1-10638
CAMBREX CORPORATION
-------------------
(Exact name of registrant as specified in its charter)
DELAWARE 22-2476135
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ONE MEADOWLANDS PLAZA, EAST RUTHERFORD, NEW JERSEY 07073
(Address of principal executive offices)
(201) 804-3000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
As of November 1, 1995, there were 7,442,816 shares outstanding of the
registrant's Common Stock, $.10 par value.
<PAGE> 2
CAMBREX CORPORATION AND SUBSIDIARIES
Form 10-Q
For The Quarter Ended September 30, 1995
Table of Contents
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I Financial information
Condensed consolidated balance sheets as of
September 30, 1995 and December 31, 1994 3
Condensed consolidated income statements
for the three months and nine months ended
September 30, 1995 and 1994 4
Condensed consolidated statements of
cash flows for the nine months ended
September 30, 1995 and 1994 5
Notes to condensed consolidated financial
statements 6 - 8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9 - 11
Part II Other information
Item 4. Matters Submitted to a Vote of Securities
Holders 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
Exhibit 11 - Computation of Earnings Per Share 14
Exhibit 27 - Financial Data Schedule 15
</TABLE>
<PAGE> 3
Part 1 - FINANCIAL INFORMATION
CAMBREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . $ 7,154 $ 9,087
Trade and other receivables, less allowances
for doubtful accounts of $1,700 and $1,288
at respective dates . . . . . . . . . . . . . 57,929 52,854
Inventories . . . . . . . . . . . . . . . . . . . . . 73,908 61,979
Deferred tax asset . . . . . . . . . . . . . . . . 1,183 1,089
Other current assets . . . . . . . . . . . . . . . 5,232 5,689
-------- --------
Total current assets . . . . . . . . . . . . . 145,406 130,698
Property, plant and equipment, net . . . . . . . . . . 190,283 172,282
Intangible assets, net . . . . . . . . . . . . . . . . 55,969 56,991
Other noncurrent assets . . . . . . . . . . . . . . . . 986 506
-------- --------
Total assets . . . . . . . . . . . . . . . . . $392,644 $360,477
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities . . . . . $ 51,924 $ 48,402
Income taxes payable . . . . . . . . . . . . . . . 5,417 5,982
Short-term debt . . . . . . . . . . . . . . . . . . 3,479 52,368
Current portion of long-term debt . . . . . . . . . 4,110 4,021
-------- --------
Total current liabilities . . . . . . . . . . 64,930 110,773
Long-term debt . . . . . . . . . . . . . . . . . . . . 111,517 115,975
Deferred taxes . . . . . . . . . . . . . . . . . . . . 13,893 14,258
Other noncurrent liabilities . . . . . . . . . . . . . 18,996 17,505
-------- --------
Total liabilities . . . . . . . . . . . . . . 209,336 258,511
-------- --------
Stockholders' equity:
Common stock . . . . . . . . . . . . . . . . . . . 815 607
Additional paid-in capital . . . . . . . . . . . . 140,209 73,673
Retained earnings . . . . . . . . . . . . . . . . . 49,525 35,935
Treasury stock, at cost; 724,764 and 756,806
shares at respective dates . . . . . . . . . . . (9,280) (9,690)
Cumulative translation adjustment . . . . . . . . . 2,039 1,441
-------- --------
Total stockholders' equity . . . . . . . . . . 183,308 101,966
-------- --------
Total liabilities and stockholders' equity . .
$392,644 $360,477
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
- 3 -
<PAGE> 4
CAMBREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in thousands, except per-share amounts)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
-------------------- ---------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net revenues . . . . . . . . . . . . . . . . . . $87,385 $57,608 $268,989 $166,879
Operating expenses:
Cost of goods sold . . . . . . . . . . . . . 62,337 44,343 194,375 127,618
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . 11,757 7,559 35,177 21,773
Research and development . . . . . . . . . . 1,765 1,211 5,511 3,612
------- ------- -------- --------
Total operating expenses . . . . . . . . . 75,859 53,113 235,063 153,003
------- ------- -------- --------
Operating profit . . . . . . . . . . . . . . . . 11,526 4,495 33,926 13,876
Other (income) expenses:
Interest expense - net . . . . . . . . . . . 2,531 496 9,262 1,529
Other - net . . . . . . . . . . . . . . . . . 1,185 121 1,583 74
------- ------- -------- --------
Income before income taxes . . . . . . . . . . . 7,810 3,878 23,081 12,273
Provision for income taxes . . . . . . . . . . .
2,804 1,438 8,574 4,325
------- ------- -------- --------
Net income . . . . . . . . . . . . . . . . . . $ 5,006 $ 2,440 $ 14,507 $ 7,948
======= ======= ======== ========
Weighted average shares outstanding:
Primary . . . . . . . . . . . . . . . . 7,344 5,679 6,333 5,655
Fully diluted . . . . . . . . . . . . . 7,345 5,711 6,365 5,693
Net income per share:
Primary . . . . . . . . . . . . . . . . $ 0.68 $ 0.43 $ 2.29 $ 1.41
======= ======= ======== ========
Fully diluted . . . . . . . . . . . . . $ 0.68 $ 0.43 $ 2.28 $ 1.40
======= ======= ======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
- 4 -
<PAGE> 5
CAMBREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Nine months ended
September 30,
---------------------
1995 1994
--------- --------
<S> <C> <C>
Cash flows from operations . . . . . . . . . . . . . . . . . $ 34,347 $ 17,849
Changes in assets and liabilities:
Receivables . . . . . . . . . . . . . . . . . . . . . . . (4,458) (6,043)
Inventories . . . . . . . . . . . . . . . . . . . . . . . (10,570) 1,155
Other current assets . . . . . . . . . . . . . . . . . . 55 238
Accounts payable and accrued liabilities . . . . . . . . 3,665 4,091
Income taxes payable . . . . . . . . . . . . . . . . . . (697) 71
Other noncurrent assets and liabilities . . . . . . . . . (290) 3,175
--------- --------
Net cash provided from operations . . . . . . . . . 22,052 20,536
--------- --------
Cash flows from investing activities:
Capital expenditures . . . . . . . . . . . . . . . . . . (31,438) (11,842)
Acquisition of businesses . . . . . . . . . . . . . . . . - (11,840)
Other investing activities . . . . . . . . . . . . . . . (2,018) -
--------- --------
Net cash (used in) investing activities . . . . . . (33,456) (23,682)
--------- --------
Cash flows from financing activities:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . (918) (783)
Increase in short-term debt . . . . . . . . . . . . . . . 1,111
Long-term debt activity (including current portion):
Borrowings . . . . . . . . . . . . . . . . . . . . . 60,209 44,714
Repayments . . . . . . . . . . . . . . . . . . . . . (114,601) (42,679)
Proceeds from the issuance of common stock . . . . . . . 66,082 285
Proceeds from the sale of treasury stock . . . . . . . . 1,072 1,085
--------- --------
Net cash provided from financing activities . . . . 12,955 2,622
--------- --------
Effect of exchange rate changes on cash . . . . . . . . . . . (3,484) 411
--------- --------
Net increase in cash . . . . . . . . . . . . . . . . . . . . (1,933) (113)
Cash at beginning of period . . . . . . . . . . . . . . . . . 9,087 161
--------- --------
Cash at end of period . . . . . . . . . . . . . . . . . . . . $ 7,154 $ 48
========= ========
Supplemental disclosure:
Interest paid . . . . . . . . . . . . . . . . . . . . . . $ 10,026 $ 2,757
Income taxes paid . . . . . . . . . . . . . . . . . . . . $ 5,205 $ 3,038
Depreciation expense . . . . . . . . . . . . . . . . . . $ 15,973 $ 9,300
</TABLE>
See accompanying notes to condensed consolidated financial statements.
- 5 -
<PAGE> 6
CAMBREX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(in thousands, except per-share amounts)
(1) Basis of Presentation
Unless otherwise indicated by the context, "Cambrex" or the "Company"
means Cambrex Corporation and subsidiaries.
The accompanying unaudited Condensed Consolidated Financial Statements
have been prepared from the records of the Company. In the opinion of
management, the financial statements include all adjustments, consisting of
only normal recurring accruals, necessary for a fair presentation of financial
position and results of operations in conformity with generally accepted
accounting principles. These interim financial statements should be read in
conjunction with the financial statements for the year ended December 31, 1994.
The results of operations for the nine months ended September 30, 1995
are not necessarily indicative of the results to be expected for the full year.
(2) Inventories
Inventories are stated at the lower of cost, determined on a first-in,
first-out basis, or market and include material, labor, and overhead.
Inventories at September 30, 1995 and December 31, 1994 consist of the
following:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
------- -------
<S> <C> <C>
Finished goods . . . . . . . . . . . . . $29,972 $31,473
Raw materials . . . . . . . . . . . . . 38,374 27,603
Fuel oil and supplies . . . . . . . . . 5,562 2,903
------- -------
$73,908 $61,979
======= =======
</TABLE>
(3) Earnings Per Common Share
The calculation of primary and fully diluted earnings per common share
is based on the weighted average number of common shares and common share
equivalents outstanding during the applicable period.
- 6 -
<PAGE> 7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
4) Acquisitions
On October 12, 1994, the Company completed the acquisition of the
stock of Nobel's Pharma Chemistry Business ("Nobel/Profarmaco") from Akzo Nobel
for approximately $126,000. The business consists of Nobel Chemicals AB in
Karlskoga, Sweden, Profarmaco Nobel S.r.l. in Milan, Italy, and sales companies
in Germany, England and the United States. Nobel/Profarmaco manufactures fine
chemical intermediates and bulk active ingredients for pharmaceutical products.
The transaction was accounted for as a purchase and was financed with the
Company's new credit agreement, and resulted in goodwill of $45,756 which is
being amortized on a straight line basis over 17.5 years.
On January 31, 1994, the Company completed the acquisition of the
assets of Hexcel Corporation's fine chemicals business located in
Middlesbrough, England, for approximately $7,400 and the assumption of certain
current liabilities in the amount of $2,100. The business, now known as Seal
Sands Chemicals Ltd. ("Seal Sands"), manufactures chemical intermediates used
in the pharmaceutical, photographic, water treatment, health care, and plastics
industries. On May 27, 1994, the Company purchased the Topanol product line
from Zeneca Limited to complement the Seal Sands operations for $4,600. These
transactions were accounted for as purchases and were financed with the
Company's credit agreement, and resulted in goodwill of $1,881 for Seal Sands
and $504 for Topanol which are being amortized on a straight line basis over
17.5 years and 5 years, respectively.
Unaudited pro forma results as if the Nobel/Profarmaco and Seal Sands
acquisitions and the Topanol product line purchase had occurred at January 1 of
1994 are presented below. The pro forma financial information is not
necessarily indicative of results of operations that would have occurred had
the combinations been in effect at the beginning of the periods nor of future
results of operations of the combined companies.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, 1994 September 30, 1994
------------------ ------------------
<S> <C> <C>
Net revenues . . . . . . . . . . . $ 85,356 $250,124
Net income . . . . . . . . . . . . 3,354 10,691
Earnings per share:
Primary . . . . . . . . . . . 0.59 1.89
Fully diluted . . . . . . . . 0.59 1.88
</TABLE>
- 7 -
<PAGE> 8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
5) Short-term Debt
Short-term debt at September 30, 1995 and December 31, 1994 consists
of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
---- ----
<S> <C> <C>
One year term loan . . . . . . . . . . . . . . . $ - $50,000
Export financing facility, Italy . . . . . . . . 3,479 2,368
------ -------
Total $3,479 $52,368
====== =======
</TABLE>
6) Long-term Debt
Long-term debt at September 30, 1995 and December 31, 1994 consists of
the following:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
---- ----
<S> <C> <C>
Bank credit facilities . . . . . . . . . . . . . $114,385 $118,648
Capital lease . . . . . . . . . . . . . . . . . 31 57
Notes payable . . . . . . . . . . . . . . . . . 1,211 1,291
-------- -------
Subtotal . . . . . . . . . . . . . . . 115,627 119,996
Less: current portion . . . . . . . . . . . . . 4,110 4,021
-------- -------
Total . . . . . . . . . . . . . . . . $111,517 $115,975
======== =======
</TABLE>
The Company met all the bank covenants for the first nine months of 1995.
7) Stockholders' Equity
On July 24, 1995, the Company completed a public offering of 1,725,000
shares of newly issued common stock at a price of $38.75 per share. The total
proceeds to the Company, net of underwriting discounts and commissions,
amounted to $63,497. Proceeds were used to reduce outstanding debt existing
under the Company's bank credit agreement.
8) Postemployment Benefits
Statement of Financial Accounting Standard No. 112 "Employers'
Accounting for Postemployment Benefits" (SFAS 112) requires the recognition on
an accrual basis of all types of postemployment benefits provided to former or
inactive employees subsequent to employment but before retirement. The Company
currently provides limited benefits in this regard. The Company adopted SFAS
112 effective January 1, 1994. The net effect upon 1994 and first nine months
of 1995 pretax operating results was immaterial.
9) Contingencies
Refer to Form 10-K for the fiscal year ended December 31, 1994, for
disclosure of existing contingencies related to environmental issues.
- 8 -
<PAGE> 9
CAMBREX CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER-SHARE AMOUNTS)
RESULTS OF OPERATIONS
Results in the third quarter of 1995 were better than the third quarter of 1994
due to the Nobel/Profarmaco acquisition completed in October 1994, and to
improvements in the base business. The impact of these is shown in the table
below:
Third Quarter 1995 Results
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended September 30,
----------------------------------------
Nobel/ Base
Total Profarmaco Business
1995 1995 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net revenues . . . . . . . . . . . . . . $87,385 $29,774 $57,611 $57,608
------- ------- ------- -------
Operating expenses
Cost of goods sold . . . . . . . . . . 62,337 19,364 42,973 44,343
Selling, general and
administrative . . . . . . . . . . 11,757 3,417 8,340 7,559
Research and development . . . . . . . 1,765 603 1,162 1,211
Total operating expenses . . . . . . . . 75,859 23,384 52,475 53,113
------- ------- ------- -------
Operating profit . . . . . . . . . . . . 11,526 6,390 5,136 4,495
Other (income) expenses:
Interest income . . . . . . . . . . . (252) (231) (21) (21)
Interest expense . . . . . . . . . . . 2,783 1,921 862 517
Other - net . . . . . . . . . . . . . 1,185 1,123 62 121
------- ------- ------- -------
Income before income taxes . . . . . . . 7,810 3,577 4,233 3,878
Provision for income taxes . . . . . . . 2,804 1,287 1,517 1,438
------- ------- ------- -------
Net income . . . . . . . . . . . . . . . $ 5,006 $ 2,290 $ 2,716 $ 2,440
======= ======= ======= =======
</TABLE>
Net revenues for the third quarter 1995 increased 52% to $87,385 from $57,608
reported in the third quarter 1994. The $29,777 increase was due to the
acquisitions of Nobel Chemicals AB in Sweden and Profarmaco S.r.l. in Italy.
The table below shows the contribution of the Nobel/Profarmaco acquisition to
the product categories and changes in the base business. Increased base
business sales in health and pharmaceuticals offset the decrease in performance
chemicals of the base business.
- 9 -
<PAGE> 10
<TABLE>
<CAPTION>
Three Months Ended September 30,
----------------------------------------
Nobel/ Base
Total Profarmaco Business
1995 1995 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Health & pharmaceuticals . . . . . . $37,891 $21,328 $16,563 $15,167
Specialty & fine chemicals . . . . . 26,377 8,873 17,504 17,607
Agricultural intermediates &
additives . . . . . . . . . . . . 13,819 288 13,531 13,593
Performance chemicals . . . . . . . 7,770 - 7,770 8,523
Coatings . . . . . . . . . . . . . . 4,281 - 4,281 4,450
------- ------- ------- -------
Total gross revenues . . . . . $90,138 $30,489 $59,649 $59,340
======= ======= ======= =======
Total net revenues . . . . . . $87,385 $29,774 $57,611 $57,608
======= ======= ======= =======
</TABLE>
Health and Pharmaceuticals' revenues increased $22,724 with Nobel and
Profarmaco contributing sales of $21,328. Revenues from the base business
increased $1,396 (9%); allowing for the $1,200 in lost sales from the
divestures of the hydrogels and Wickhen cosmetic lines which occurred late in
1994, revenues would have increased by 17%. The improvement was due to sales
increases in: two intermediates used for dextromethorphan, an over-the-counter
cough suppressant; pyridine derivatives, used in the cosmetic and toiletry
industries; and bulk Vitamin B3 and its intermediates.
Specialty and Fine Chemicals' revenues increased $8,770 (50%) over 1994. The
acquisition of Nobel Chemicals accounted for all of this increase. In the base
business, lower sales of photographic products, catalysts and a product used as
an antioxidant for polymers were offset by increases in sales of another
product used as an antioxidant for polymers, a monomer for engineering plastics
and x-ray contrast drug intermediates.
Agricultural Intermediates and Additives' revenues increased $226 (2%) from
1994's third quarter. The increase was mainly due to increased shipments of
pyridine derivatives used in herbicides. Sales of animal feed additives
remained at 1994 levels.
Performance Chemicals' revenues decreased $753 (9%) from 1994. The key
decreases were in encapsulants for the telephone industry and in fiber optic
gels.
Coatings' revenues decreased $169 (4%) from 1994. Decreases occurred in our
castor based products.
Export Sales from the U.S. were $14,487 in the third quarter 1995 versus
$12,333 in the third quarter 1994. Increases occurred at most of our U.S.
operating locations. International sales from all European operations totaled
$35,756 versus $4,314 in the third quarter 1994 due to the acquisition of
Nobel/Profarmaco in October 1994.
- 10 -
<PAGE> 11
Gross profit in the third quarter 1995 of $25,048 (28.7%) compared to $13,265
(23%) in the third quarter 1994, with the acquisition of Nobel/Profarmaco
contributing $10,410 to the increase, and the base business increasing by
$1,373. The gross profit percentage of the base business increased to 25.4%
versus 23.0% in 1994. The improved gross margin was due to pricing increases,
continued efforts to reduce costs, and an improved sales mix caused by
divesting low margin products.
Selling, general and administrative expenses as a percentage of net revenues
was 15.5% versus 15.2% in the third quarter 1994. The marketing,
administrative, and research expenses as a percentage of net revenues decreased
but were offset by increased amortization costs associated with the acquisition
of Nobel/Profarmaco.
Net interest expense of $2,531 in the third quarter 1995 increased $2,035 over
1994. This increase was due to the additional borrowings for acquisitions and
an increase in the interest rate of approximately 2-1/2%.
The provision for income taxes for the third quarter 1995 resulted in an
effective tax rate of 36% vs. 37% in 1994. This decreased tax rate more
accurately reflects the updated estimate of the 1995 tax rate of 37%.
The Company's third quarter net income increased 105% to $5,006 compared with a
net income of $2,440 in the third quarter 1994.
LIQUIDITY AND CAPITAL RESOURCES
Net cash flow from operations was $22,052 for the first nine months of 1995
compared with $20,536 in 1994. The significant increases in net income,
depreciation and amortization were partially offset by increases in
inventories.
Capital expenditures were $31,400 in the first nine months 1995 as compared to
$11,800 in the first nine months 1994. The largest expenditures were for (1)
continued construction of a new facility at the Salsbury site in Charles City,
Iowa to increase production levels for several products; and (2) construction
of a facility at Nobel Chemicals in Karlskoga, Sweden to increase capacity for
pharmaceutical intermediates.
On July 24, 1995, the Company completed a public offering of 1,725,000 shares
of newly issued common stock at a price of $38.75 per share. The total
proceeds to the Company, net of underwriting discounts and commissions,
amounted to $63,497. Proceeds were used to reduce outstanding debt existing
under the Company's bank credit agreement.
The Company has undrawn borrowing capacity of approximately $71,000 under the
Credit Agreement as of September 30, 1995, which can be used for general
corporate purposes. Management is of the opinion that these amounts, together
with other available sources of capital, are adequate for meeting the Company's
anticipated financing and capital requirements.
During the third quarter 1995, the Company paid cash dividends of $0.05 per
share.
- 11 -
<PAGE> 12
PART II - OTHER INFORMATION
CAMBREX CORPORATION AND SUBSIDIARIES
Item 4. Matters Submitted to a Vote of Securities Holders.
Refer to Form 10-Q for the quarterly period ended March 31, 1995.
Item 6. Exhibits and Reports on Form 8-K
a) The exhibits filed as part of this report are listed below.
<TABLE>
<CAPTION>
Exhibit No. Description
----------- ------------
<S> <C>
11 Statement of computation of per share
earnings.
27 Financial Data Schedule.
</TABLE>
b) The registrant filed the following reports on Form 8-K during
the third quarter of 1995.
<TABLE>
<CAPTION>
Date of Report Description
-------------- -----------
<S> <C>
July 17, 1995 Amendment No. 2 to Form 8-K dated October
26, 1994.
July 17, 1995 Press release discussing the Company's
financial results for the second quarter
of 1995.
</TABLE>
- 12 -
<PAGE> 13
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAMBREX CORPORATION
By /s/ Peter Tracey
------------------------------------
Peter Tracey
Vice President
(On behalf of the Registrant and
as the Registrant's Principal
Financial Officer)
Date: November 13,1995
----------------
- 13 -
<PAGE> 14
EXHIBIT INDEX
Exhibit No. Description
----------- ------------
11 Statement of computation of per share
earnings.
27 Financial Data Schedule.
<PAGE> 1
EXHIBIT 11
CAMBREX CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(in thousands)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income applicable to common shares:
Primary earnings . . . . . . . . . . . $5,006 $2,440 $14,507 $ 7,948
====== ====== ======= =======
Fully diluted earnings . . . . . . . . $5,006 $2,440 $14,507 $ 7,948
====== ====== ======= =======
Weighted average number of common
shares and common share equivalents
outstanding during the period:
Common Stock . . . . . . . . . . . 6,994 5,255 5,988 5,231
Stock Options . . . . . . . . . . 350 424 345 424
------ ------ ------- -------
Shares outstanding - primary . . . . . 7,344 5,679 6,333 5,655
Additional stock options . . . . . 1 32 32 38
------ ------ ------- -------
Shares outstanding - fully diluted . . 7,345 5,711 6,365 5,693
====== ====== ======= =======
</TABLE>
- 14 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 7,154
<SECURITIES> 0
<RECEIVABLES> 53,888
<ALLOWANCES> 1,700
<INVENTORY> 73,908
<CURRENT-ASSETS> 145,406
<PP&E> 275,268
<DEPRECIATION> 84,985
<TOTAL-ASSETS> 392,644
<CURRENT-LIABILITIES> 64,930
<BONDS> 111,517
<COMMON> 815
0
0
<OTHER-SE> 182,493
<TOTAL-LIABILITY-AND-EQUITY> 392,644
<SALES> 268,989
<TOTAL-REVENUES> 268,989
<CGS> 194,375
<TOTAL-COSTS> 194,375
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,783
<INCOME-PRETAX> 23,081
<INCOME-TAX> 8,574
<INCOME-CONTINUING> 14,507
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,507
<EPS-PRIMARY> 2.29
<EPS-DILUTED> 2.28
</TABLE>
