Guarantor Subsidiaries

9 Months Ended

Jun. 30, 2011

12.

GUARANTOR SUBSIDIARIES


		As discussed in Note 6, in February 2007, American Pacific Corporation, a Delaware corporation (“Parent”) issued and sold $110,000 aggregate principal amount of Senior Notes. In connection with the issuance of the Senior Notes, the Parent’s material U.S. subsidiaries (“Guarantor Subsidiaries”) jointly, fully, severally, and unconditionally guaranteed the Senior Notes. The Parent’s foreign subsidiaries (“Non-Guarantor Subsidiaries”) are not guarantors of the Senior Notes. Each of the Parent’s subsidiaries is 100% owned. The Parent has no independent assets or operations. The following presents condensed consolidating financial information separately for the Parent, Guarantor Subsidiaries and Non-Guarantor Subsidiaries.

		Condensed Consolidating Statement of Operations — Three Months Ended June 30, 2011


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Revenues	$	—		$	49,143		$	2,870		$	(96	)	$	51,917
Cost of Revenues		—			38,358			2,114			(96	)		40,376

Gross Profit		—			10,785			756			—			11,541
Operating Expenses, Net		—			9,348			463			—			9,811
Environmental Remediation Charges		—			6,000			—			—			6,000

Operating Income (Loss)		—			(4,563	)		293			—			(4,270	)
Interest and Other Income		2,633			58			5			(2,633	)		63
Interest Expense		2,633			2,641			1			(2,633	)		2,642

Income (Loss) Loss before Income Tax and Equity Account for Subsidiaries		—			(7,146	)		297			—			(6,849	)
Income Tax Benefit		—			(653	)		(32	)		—			(685	)

Income (Loss) before Equity Account for Subsidiaries		—			(6,493	)		329			—			(6,164	)
Equity Account for Subsidiaries		(6,164	)		329			—			5,835			—

Net Income (Loss)	$	(6,164	)	$	(6,164	)	$	329		$	5,835		$	(6,164	)

Condensed Consolidating Statement of Operations — Nine Months Ended June 30, 2011


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries		Eliminations			Consolidated

Revenues	$	—		$	121,194		$	8,099	$	(338	)	$	128,955
Cost of Revenues		—			95,394			5,575		(338	)		100,631

Gross Profit		—			25,800			2,524		—			28,324
Operating Expenses, Net		—			30,705			2,349		—			33,054
Environmental Remediation Charges		—			6,000			—		—			6,000
Other Operating Gains		—			2,929			—		—			2,929

Operating Income (Loss)		—			(7,976	)		175		—			(7,801	)
Interest and Other Income		7,872			407			28		(7,872	)		435
Interest Expense		7,872			7,923			4		(7,872	)		7,927

Income (Loss) Loss before Income Tax and Equity Account for Subsidiaries		—			(15,492	)		199		—			(15,293	)
Income Tax Benefit		—			(4,329	)		32		—			(4,297	)

Income (Loss) before Equity Account for Subsidiaries		—			(11,163	)		167		—			(10,996	)
Equity Account for Subsidiaries		(10,996	)		167			—		10,829			—

Net Income (Loss)	$	(10,996	)	$	(10,996	)	$	167	$	10,829		$	(10,996	)



		Condensed Consolidating Statement of Operations — Three Months Ended June 30, 2010


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Revenues	$	—		$	35,076		$	2,171		$	—		$	37,247
Cost of Revenues		—			27,571			1,349			—			28,920

Gross Profit		—			7,505			822			—			8,327
Operating Expenses		—			10,963			983			—			11,946

Operating Loss		—			(3,458	)		(161	)		—			(3,619	)
Interest and Other Income		2,649			10			(301	)		(2,649	)		(291	)
Interest Expense		2,649			2,669			2			(2,649	)		2,671

Loss before Income Tax and Equity Account for Subsidiaries		—			(6,117	)		(464	)		—			(6,581	)
Income Tax Benefit		—			(1,877	)		(131	)		—			(2,008	)

Loss before Income Tax and Equity Account for Subsidiaries		—			(4,240	)		(333	)		—			(4,573	)
Equity Account for Subsidiaries		(4,573	)		(333	)		—			4,906			—

Net Loss	$	(4,573	)	$	(4,573	)	$	(333	)	$	4,906		$	(4,573	)

Condensed Consolidating Statement of Operations — Nine Months Ended June 30, 2010


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated

Revenues	$	—		$	123,452		$	7,271		$	(17	)	$	130,706
Cost of Revenues		—			87,942			5,129			(17	)		93,054

Gross Profit		—			35,510			2,142			—			37,652
Operating Expenses		—			32,659			3,038			—			35,697

Operating Income (Loss)		—			2,851			(896	)		—			1,955
Interest and Other Income		7,982			86			(582	)		(8,045	)		(559	)
Interest Expense		7,982			8,097			68			(8,045	)		8,102

Loss before Income Tax and Equity Account for Subsidiaries		—			(5,160	)		(1,546	)		—			(6,706	)
Income Tax Benefit		—			(1,699	)		(110	)		—			(1,809	)

Loss before Equity Account for Subsidiaries		—			(3,461	)		(1,436	)		—			(4,897	)
Equity Account for Subsidiaries		(4,897	)		(1,436	)		—			6,333			—

Net Loss	$	(4,897	)	$	(4,897	)	$	(1,436	)	$	6,333		$	(4,897	)



		Condensed Consolidating Balance Sheet — June 30, 2011


			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Assets:
Cash and Cash Equivalents	$	—	$	23,334	$	439	$	—		$	23,773
Accounts Receivable, Net		—		37,921		5,953		(818	)		43,056
Inventories		—		42,569		1,158		—			43,727
Prepaid Expenses and Other Assets		—		5,031		241		—			5,272
Income Taxes Receivable and Deferred Income Taxes		—		15,640		—		—			15,640

Total Current Assets		—		124,495		7,791		(818	)		131,468
Property, Plant and Equipment, Net		—		111,669		2,236		—			113,905
Intangible Assets, Net		—		—		684		—			684
Goodwill		—		—		3,101		—			3,101
Deferred Income Taxes		—		20,207		44		—			20,251
Other Assets		—		9,618		672		—			10,290
Intercompany Advances		73,973		5,179		—		(79,152	)		—
Investment in Subsidiaries, Net		84,242		5,221		—		(89,463	)		—

Total Assets	$	158,215	$	276,389	$	14,528	$	(169,433	)	$	279,699

Liabilities and Stockholders’ Equity:
Accounts Payable and Other Current Liabilities	$	—	$	26,986	$	2,482	$	(818	)	$	28,650
Environmental Remediation Reserves		—		13,137		—		—			13,137
Deferred Revenues and Customer Deposits		—		26,619		1,585		—			28,204
Current Portion of Long-Term Debt		—		23		52		—			75
Intercompany Advances		—		73,973		5,179		(79,152	)		—

Total Current Liabilities		—		140,738		9,298		(79,970	)		70,066
Long-Term Debt		105,000		40		9		—			105,049
Environmental Remediation Reserves		—		13,522		—		—			13,522
Pension Obligations and Other Long-Term Liabilities		—		37,847		—		—			37,847

Total Liabilities		105,000		192,147		9,307		(79,970	)		226,484
Total Shareholders’ Equity		53,215		84,242		5,221		(89,463	)		53,215

Total Liabilities and Shareholders’ Equity	$	158,215	$	276,389	$	14,528	$	(169,433	)	$	279,699

Condensed Consolidating Statement of Cash Flows — Nine Months Ended June 30, 2011


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

Net Cash Provided (Used) by Operating Activities	$	—		$	11,154		$	(383	)	$	—	$	10,771

Cash Flows from Investing Activities:
Capital expenditures		—			(9,717	)		(478	)		—		(10,195	)

Net Cash Used in Investing Activities		—			(9,717	)		(478	)		—		(10,195	)

Cash Flows from Financing Activities:
Payments of long-term debt		—			(15	)		(37	)		—		(52	)
Debt Issuance costs		(878	)										(878	)
Issuances of common stock		81
Intercompany advances, net		797			(1,079	)		282			—		—

Net Cash Provided (Used) by Financing Activities		—			(1,094	)		245			—		(849	)

Effect of Changes in Currency Exchange Rates		—			—			61					61

Net Change in Cash and Cash Equivalents		—			343			(555	)		—		(212	)
Cash and Cash Equivalents, Beginning of Period		—			22,991			994			—		23,985

Cash and Cash Equivalents, End of Period	$	—		$	23,334		$	439		$	—	$	23,773



		Condensed Consolidating Balance Sheet — September 30, 2010


			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated

Assets:
Cash and Cash Equivalents	$	—	$	22,991	$	994	$	—		$	23,985
Accounts Receivable, Net		—		48,194		6,054		(2,348	)		51,900
Inventories		—		34,968		1,158		—			36,126
Prepaid Expenses and Other Assets		—		1,249		293		—			1,542
Income Taxes Receivable and Deferred Income Taxes		—		13,474		—		—			13,474

Total Current Assets		—		120,876		8,499		(2,348	)		127,027
Property, Plant and Equipment, Net		—		111,946		1,927		—			113,873
Intangible Assets, Net		—		537		883		—			1,420
Goodwill		—		—		2,933		—			2,933
Deferred Income Taxes		—		20,222		32		—			20,254
Other Assets		—		9,945		291		—			10,236
Intercompany Advances		91,545		4,896		—		(96,441	)		—
Investment in Subsidiaries, Net		77,112		4,817		—		(81,929	)		—

Total Assets	$	168,657	$	273,239	$	14,565	$	(180,718	)	$	275,743

Liabilitites and Stockholders’ Equity:
Accounts Payable and Other Current Liabilities	$	—	$	23,931	$	3,916	$	(2,348	)	$	25,499
Environmental Remediation Reserves		—		8,694		—		—			8,694
Deferred Revenues and Customer Deposits		—		17,927		842		—			18,769
Current Portion of Long-Term Debt		—		21		49		—			70
Intercompany Advances		—		91,545		4,896		(96,441	)		—

Total Current Liabilities		—		142,118		9,703		(98,789	)		53,032
Long-Term Debt		105,000		57		45		—			105,102
Environmental Remediation Reserves		—		15,176		—		—			15,176
Pension Obligations and Other Long-Term Liabilities		—		38,776		—		—			38,776

Total Liabilities		105,000		196,127		9,748		(98,789	)		212,086
Total Shareholders’ Equity		63,657		77,112		4,817		(81,929	)		63,657

Total Liabilities and Shareholders’ Equity	$	168,657	$	273,239	$	14,565	$	(180,718	)	$	275,743

Condensed Consolidating Statement of Cash Flows — Nine Months Ended June 30, 2010


				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

Net Cash Provided (Used) by Operating Activities	$	—		$	24,775		$	(1,764	)	$	—	$	23,011

Cash Flows from Investing Activities:
Capital expenditures		—			(6,762	)		(630	)		—		(7,392	)
Other investing activities		—			10			—			—		10

Net Cash Used in Investing Activities		—			(6,752	)		(630	)		—		(7,382	)

Cash Flows from Financing Activities:
Payments of long-term debt		—			(5,014	)		(34	)		—		(5,048	)
Issuances of common stock		11			—			—			—		11
Intercompany advances, net		(11	)		(1,412	)		1,423			—		—

Net Cash Provided (Used) by Financing Activities		—			(6,426	)		1,389			—		(5,037	)

Effect of Changes in Currency Exchange Rates		—			—			(112	)		—		(112	)

Net Change in Cash and Cash Equivalents		—			11,597			(1,117	)		—		10,480
Cash and Cash Equivalents, Beginning of Period		—			20,046			1,635			—		21,681

Cash and Cash Equivalents, End of Period	$	—		$	31,643		$	518		$	—	$	32,161