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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
JULY 17, 1995
(Date of earliest event reported)
CAMBREX CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State of other jurisdiction as specified in its charter)
1-10638 22-2476135
(Commission File Number) (IRS Employer Identification No.)
ONE MEADOWLANDS PLAZA
EAST RUTHERFORD, NEW JERSEY 07073
(Address of principal executive offices) (Zip Code)
(201) 804-3000
(Registrant's telephone number, including area code)
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Item 5. Other Matters
Attached hereto as Exhibit A is a press release issued by Cambrex
Corporation on July 17, 1995, discussing the Company's financial results for the
second quarter of 1995.
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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 hereunto duly authorized.
CAMBREX CORPORATION
(Registrant)
Dated: July 17, 1995 By:/s/ Peter E. Thauer
--------------------------
Peter E. Thauer
Vice President-Law and
Environment,
General Counsel and Secretary
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EXHIBIT INDEX
Exhibit A - Press Release
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Exhibit A
---------
July 17, 1995
Peter Tracey, V.P., CFO
201-804-3010
CAMBREX CORPORATION REPORTS
RECORD SECOND QUARTER NET INCOME
--------------------------------
East Rutherford, NJ, July 17, 1995 - Cambrex Corporation (AMEX:CBM)
today reported net income for the quarter ended June 30, 1995.
Net income for the second quarter was $5.11 million, or 87 cents per
share, as compared with $3.38 million, or 60 cents per share in the comparable
period a year ago. Average fully diluted shares outstanding in each period were
5.865 million and 5.648 million, respectively.
Net income for the six months ended June 30, 1995 was $9.50 million, or
$1.62 per share, as compared with $5.51 million, or 98 cents per share in 1994.
Average fully diluted shares outstanding in each period were 5.848 million and
5.643 million, respectively.
Net revenues for the second quarter amounted to $88.2 million, as
compared to $58.2 million in the comparable year-earlier period, an increase of
51.5%. The increase in sales from Cambrex's original core business was in the
Specialty and Fine Chemicals category.
Net revenues for the first half 1995 were $181.6 million, as compared
to $109.3 million in the first half of 1994, an increase of 66.1%. Of this
increase, $63.7 million was from the Nobel/Profarmaco acquisition.
The Company's record second quarter performance is attributable
primarily to the Nobel/Profarmaco business, acquired in October of last year.
Of the $1.7 million increase in second quarter net income, Nobel/Profarmaco
contributed $1.3 million.
Gross Profit for the second quarter increased by $10.5 million. The
gross margin for the core business increased to 26.8% from 25.1% in the second
quarter 1994. The
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Nobel/Profarmaco business, with a gross margin of 32.0%, increased the total
gross margin for Cambrex to 28.4% in the same period.
Cambrex's operating profit in the second quarter rose to $11.9 million,
as compared with $5.5 million in the year-earlier period. Of that amount, the
Nobel/Profarmaco business accounted for $5.2 million.
Cambrex Corporation manufactures specialty and fine chemicals. The
Company's five major product categories are: Health and Pharmaceutical,
Specialty and Fine Chemicals, Agricultural Intermediates and Additives,
Performance Chemicals, and Coatings.
# # #
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CAMBREX CORPORATION
Financial Summary
Quarter Ended June 30,
(in thousands, except earnings per share)
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net Revenues ................................ $ 88,215 $ 58,224
Operating Profit ............................ $ 11,924 $ 5,467
Net Income .................................. $ 5,107 $ 3,380
Earnings Per Share Data (Primary):
Net Income ................................ $ 0.87 $ 0.60
Average Shares Outstanding ................ 5,863 5,648
Earnings Per Share Data (Fully Diluted):
Net Income ................................ $ 0.87 $ 0.60
Average Shares Outstanding ................ 5,865 5,648
</TABLE>
Six Months Ended June 30,
(in thousands, except earnings per share)
<TABLE>
<S> <C> <C>
Net Revenues ................................ $181,604 $109,271
Operating Profit ............................ $ 22,400 $ 9,381
Net Income .................................. $ 9,501 $ 5,508
Earnings Per Share Data (Primary):
Net Income ................................ $ 1.63 $ 0.98
Average Shares Outstanding ................ 5,831 5,643
Earnings Per Share Data (Fully Diluted):
Net Income ................................ $ 1.62 $ 0.98
Average Shares Outstanding ................ 5,848 5,643
</TABLE>
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CAMBREX CORPORATION
2ND QUARTER 1995 REVIEW
(IN MILLIONS)
TABLE 1
<TABLE>
<CAPTION> NOBEL/ BASE
ACTUAL PROFARMACO BUSINESS
2ND QTR 2ND QTR 2ND QTR
1995 1995 1995
----- ----- -----
<S> <C> <C> <C>
Net Revenue $88.2 $27.8 $60.4
Total Cost of Sales 63.1 18.9 44.2
----- ----- -----
Gross Profit 25.1 8.9 16.2
----- ----- -----
Gross Profit % 28.4% 32.0% 26.8%
----- ----- -----
Total Operating Expenses 13.2 3.7 9.5
----- ----- -----
Operating Profit 11.9 5.2 6.7
Total Interest & Other 3.8 3.1 0.7
----- ----- -----
Pre Tax Income 8.1 2.1 6.0
Tax 3.0 0.8 2.2
----- ----- -----
Net Income 5.1 1.3 3.8
===== ===== =====
</TABLE>
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CAMBREX CORPORATION
STATEMENT OF PROFIT AND LOSS
FOR THE QUARTERS ENDED JUNE 30, 1995 AND 1994
($000'S)
<TABLE>
<CAPTION>
------------------------------------------------------
ACTUAL PRIOR
--------------------------- ----------------------
% OF % OF
AMOUNT SALES AMOUNT SALES
<S> <C> <C> <C> <C>
Gross Sales 90,998 103.2% 60,842 104.5%
Commissions, Freight, etc. 2,277 2.6% 1,263 2.2%
Sales Returns & Allowances 655 0.7% 1,399 2.4%
------ ------
Net Sales 88,066 99.8% 58,180 99.9%
Other Revenue 149 0.2% 44 0.1%
------ ------
Net Revenue 88,215 100.0% 58,224 100.0%
Cost of Sales 63,134 71.6% 43,631 74.9%
------ ------
Gross Profit 25,081 28.4% 14,593 25.1%
Operating Expenses
Marketing/Sales 1,778 2.0% 1.351 2.3%
Research & Development 1,904 2.2% 1,188 2.0%
Administrative Expense 8,112 9.2% 6,200 10.6%
Amortization 1,363 1.5% 387 0.7%
------ ------
Total Operating Expenses 13,157 14.9% 9,126 15.7%
------ ------
Operating Profit 11,924 13.5% 5,467 9.4%
Other Expenses
Interest-Other 3,288 3.7% 670 1.2%
Other Expense/(Income) 568 0.6% (219) -0.4%
------ ------
Total Other Expenses 3,856 4.4% 451 0.8%
------ ------
Profit Before Tax 8,068 9.1% 5,016 8.6%
Provision for Income Taxes 2,961 3.4% 1,636 2.8%
------ ------
Net Income 5,107 5.8% 3,380 5.8%
====== ======
</TABLE>
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CAMBREX CORPORATION
STATEMENT OF PROFIT AND LOSS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 1995 AND 1994
($000'S)
<TABLE>
<CAPTION>
---------------------------------------------------
ACTUAL PRIOR
----------------------- -------------------------
% OF % OF
AMOUNT SALES AMOUNT SALES
<S> <C> <C> <C> <C>
Gross Sales 187,076 103.0% 113,629 104.0%
Commissions, Freight, Etc. 4,327 2.4% 2,434 2.2%
Sales Returns & Allowances 1,380 0.8% 1,992 1.8%
------- -------
Net Sales 181,369 99.9% 109,203 99.9%
Other Revenue 235 0.1% 68 0.1%
------- -------
Net Revenue 181,604 100.0% 109,271 100.0%
Cost of Sales 132,038 72.7% 83,275 76.2%
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Gross Profit 49,566 27.3% 25,996 23.8%
Operating Expenses
Marketing/Sales 3,531 1.9% 2,741 2.5%
Research & Development 3,746 2.1% 2,401 2.2%
Administrative Expense 17,244 9.5% 10,698 9.8%
Amortization 2,645 1.5% 775 0.7%
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Total Operating Expenses 27,166 15.0% 16,615 15.2%
------- -------
Operating Profit 22,400 12.3% 9,381 8.6%
Other Expenses
Interest -- Other 6,731 3.7% 1,033 0.9%
Other Expense/(Income) 398 0.2% (47) 0.0%
------- -------
Total Other Expenses 7,129 3.9% 986 0.9%
------- -------
Profit Before Tax 15,271 8.4% 8,395 7.7%
Provision for Income Taxes 5,770 3.2% 2,887 2.6%
------- -------
Net Income 9,501 5.2% 5,508 5.0%
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</TABLE>
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CAMBREX CORPORATION
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1995 AND 1994
($000'S)
<TABLE>
<CAPTION>
-------------------------
ACTUAL PRIOR
------ -----
<S> <C> <C>
Assets
Current Assets
Cash 7,078 48
Short Term Investments 0 0
Trade Receivables, Net 54,973 31,494
Other Receivables 5,466 1,321
Inventories 70,942 39,040
Prepaid Expenses 8,404 3,456
Deferred Tax Asset 1,183 1,243
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Total Current Assets 148,046 76,602
P, P & E at Cost 261,578 159,591
Less: Accum. Depreciation 79,619 62,492
------- -------
Net P, P & E at Cost 181,959 97,099
Investments 504 525
Other Assets 177 16
Intangibles 70,807 24,559
Less: Accum. Amortization 14,485 12,779
------- -------
Intangibles - net 56,322 11,780
------- -------
Total Assets 387,008 186,022
======= =======
Current Liabilities
Trade Accounts Payable 31,038 14,403
Accrued Liabilities 16,984 9,358
St. & Fed. Income Taxes 6,215 3,305
Short-Term Debt 50,000 0
Long-Term Debt-Curr. Portion 6,334 4,008
------- -------
Total Current Liabilities 110,571 31,074
Long-Term Debt
Bank Loans 126,943 41,575
Notes Payable 1,216 4,162
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Total Long-Term Debt 128,159 45,737
Deferred Tax Provision 13,964 6,793
Other Liabilities 18,242 8,748
------- -------
Total Liabilities 270,936 92,352
Shareholders' Equity
Common Stock, $0.10 P.V. 641 603
Paid-In-Surplus 66,956 62,913
Retained Earnings 44,890 30,154
Cumulative Translation Adj 3,585 0
------- -------
Total Shareholders' Equity 116,072 93,670
------- -------
Total Liabilities & Equity 387,008 186,022
======= =======
</TABLE>
