Date of Report (Date of earliest event reported)
|
February 11, 2014
|
|
CAMBREX CORPORATION
|
(Exact name of Registrant as specified in its charter)
|
DELAWARE
|
1-10638
|
22-2476135
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
ONE MEADOWLANDS PLAZA, EAST RUTHERFORD, NEW JERSEY
|
07073
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Registrant's telephone number, including area code:
|
(201) 804-3000
|
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(d) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01 -
|
Financial Statements and Exhibits
|
(d)
|
Exhibits
|
(99.1)
|
Press release issued by Cambrex Corporation dated February 11, 2014.
|
|
|
|
|
CAMBREX CORPORATION
|
|
|
|
|
|
|
|
Date:
|
February 11, 2014
|
|
By:
|
/s/William M. Haskel
|
|
|
|
|
Name:
|
William M. Haskel
|
|
|
|
|
Title:
|
Senior Vice President and
|
|
|
|
|
|
General Counsel
|
|
Cambrex Corporation Press Release dated February 11, 2014
|
|
|
Date:
|
February 11, 2014
|
Contact:
|
Gregory P. Sargen
|
Executive Vice President & CFO
|
|
Phone:
|
201-804-3055
|
Email:
|
gregory.sargen@cambrex.com
|
Release:
|
Immediate
|
- | Fourth quarter sales increased 46.3% to $103.0 million from $70.4 million in the same period last year. Full year sales increased 14.1% and 12.8% excluding the impact of foreign currency. |
- | Fourth quarter EBITDA increased to $22.2 million compared to $13.1 million in the same period last year. Full year adjusted EBITDA increased 17.3% to $67.4 million compared to $57.5 million in 2012. (See table at the end of this release). |
- | Debt, net of cash, was $56.5 million at the end of the fourth quarter, an improvement of $19.5 million during the quarter. Debt, net of cash, increased $16.1 million for the full year 2013. |
- | 2014 sales are expected to increase between 8% and 12% compared to 2013, excluding the impact of foreign currency. EBITDA is expected to be between $70 and $76 million and adjusted income from continuing operations is expected to be between $0.99 and $1.10 per share (see Financial Expectations section below). |
|
2013
|
2012
|
||||||||||||||
|
% of
|
% of
|
||||||||||||||
|
Amount
|
Sales
|
Amount
|
Sales
|
||||||||||||
|
||||||||||||||||
Gross Sales
|
$
|
103,011
|
$
|
70,389
|
||||||||||||
Commissions, Allowances and Rebates
|
576
|
731
|
||||||||||||||
Net Sales
|
102,435
|
69,658
|
||||||||||||||
|
||||||||||||||||
Other
|
601
|
272
|
||||||||||||||
|
||||||||||||||||
Net Revenues
|
103,036
|
69,930
|
||||||||||||||
|
||||||||||||||||
Cost of Goods Sold
|
69,098
|
67.1
|
%
|
48,847
|
69.4
|
%
|
||||||||||
|
||||||||||||||||
Gross Profit
|
33,938
|
32.9
|
%
|
21,083
|
30.0
|
%
|
||||||||||
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||
Selling, General and Administrative Expenses
|
14,714
|
14.3
|
%
|
11,419
|
16.2
|
%
|
||||||||||
Research and Development Expenses
|
2,840
|
2.8
|
%
|
2,247
|
3.2
|
%
|
||||||||||
Total Operating Expenses
|
17,554
|
17.0
|
%
|
13,666
|
19.4
|
%
|
||||||||||
|
||||||||||||||||
Operating Profit
|
16,384
|
15.9
|
%
|
7,417
|
10.5
|
%
|
||||||||||
|
||||||||||||||||
Other Expenses:
|
||||||||||||||||
Interest Expense, net
|
595
|
534
|
||||||||||||||
Other Expenses, net
|
107
|
26
|
||||||||||||||
Equity in Losses of Partially-Owned Affiliates
|
605
|
545
|
||||||||||||||
|
||||||||||||||||
Income Before Income Taxes
|
15,077
|
14.6
|
%
|
6,312
|
9.0
|
%
|
||||||||||
|
||||||||||||||||
Provision/(Benefit) for Income Taxes
|
5,637
|
(37,930
|
)
|
|||||||||||||
|
||||||||||||||||
Income from Continuing Operations
|
$
|
9,440
|
9.2
|
%
|
$
|
44,242
|
62.9
|
%
|
||||||||
|
||||||||||||||||
Loss from Discontinued Operations, Net of Tax
|
(541
|
)
|
(594
|
)
|
||||||||||||
|
||||||||||||||||
Net Income
|
$
|
8,899
|
8.6
|
%
|
$
|
43,648
|
62.0
|
%
|
||||||||
|
||||||||||||||||
Basic Earnings/(Loss) per Share of Common Stock:
|
||||||||||||||||
Income from Continuing Operations
|
$
|
0.31
|
$
|
1.48
|
||||||||||||
Loss from Discontinued Operations, Net of Tax
|
$
|
(0.02
|
)
|
$
|
(0.02
|
)
|
||||||||||
Net Income
|
$
|
0.29
|
$
|
1.46
|
||||||||||||
|
||||||||||||||||
Diluted Earnings/(Loss) per Share of Common Stock:
|
||||||||||||||||
Income from Continuing Operations
|
$
|
0.30
|
$
|
1.44
|
||||||||||||
Loss from Discontinued Operations, Net of Tax
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
||||||||||
Net Income
|
$
|
0.29
|
$
|
1.42
|
||||||||||||
|
||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||
Basic
|
30,353
|
29,874
|
||||||||||||||
Diluted
|
31,166
|
30,717
|
|
2013
|
2012
|
||||||||||||||
|
% of
|
% of
|
||||||||||||||
|
Amount
|
Sales
|
Amount
|
Sales
|
||||||||||||
|
||||||||||||||||
Gross Sales
|
$
|
317,212
|
$
|
277,931
|
||||||||||||
Commissions, Allowances and Rebates
|
1,351
|
2,503
|
||||||||||||||
Net Sales
|
315,861
|
275,428
|
||||||||||||||
|
||||||||||||||||
Other
|
2,315
|
1,073
|
||||||||||||||
|
||||||||||||||||
Net Revenues
|
318,176
|
276,501
|
||||||||||||||
|
||||||||||||||||
Cost of Goods Sold
|
215,272
|
67.9
|
%
|
186,014
|
66.9
|
%
|
||||||||||
|
||||||||||||||||
Gross Profit
|
102,904
|
32.4
|
%
|
90,487
|
32.6
|
%
|
||||||||||
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||
Selling, General and Administrative Expenses
|
47,568
|
15.0
|
%
|
45,248
|
16.3
|
%
|
||||||||||
Research and Development Expenses
|
10,387
|
3.3
|
%
|
9,544
|
3.4
|
%
|
||||||||||
Total Operating Expenses
|
57,955
|
18.3
|
%
|
54,792
|
19.7
|
%
|
||||||||||
|
||||||||||||||||
Gain on Sale of Asset
|
4,680
|
1.5
|
%
|
-
|
-
|
|||||||||||
|
||||||||||||||||
Operating Profit
|
49,629
|
15.6
|
%
|
35,695
|
12.8
|
%
|
||||||||||
|
||||||||||||||||
Other Expenses:
|
||||||||||||||||
Interest Expense, net
|
2,242
|
2,439
|
||||||||||||||
Other Expenses, net
|
118
|
122
|
||||||||||||||
Equity in Losses of Partially-Owned Affiliates
|
2,262
|
1,766
|
||||||||||||||
|
||||||||||||||||
Income Before Income Taxes
|
45,007
|
14.2
|
%
|
31,368
|
11.3
|
%
|
||||||||||
|
||||||||||||||||
Provision/(Benefit) for Income Taxes
|
14,732
|
(31,861
|
)
|
|||||||||||||
|
||||||||||||||||
Income from Continuing Operations
|
$
|
30,275
|
9.5
|
%
|
$
|
63,229
|
22.7
|
%
|
||||||||
|
||||||||||||||||
Loss from Discontinued Operations, Net of Tax
|
(4,360
|
)
|
(926
|
)
|
||||||||||||
|
||||||||||||||||
Net Income
|
$
|
25,915
|
8.2
|
%
|
$
|
62,303
|
22.4
|
%
|
||||||||
|
||||||||||||||||
Basic Earnings/(Loss) per Share of Common Stock:
|
||||||||||||||||
Income from Continuing Operations
|
$
|
1.00
|
$
|
2.13
|
||||||||||||
Loss from Discontinued Operations, Net of Tax
|
$
|
(0.14
|
)
|
$
|
(0.03
|
)
|
||||||||||
Net Income
|
$
|
0.86
|
$
|
2.10
|
||||||||||||
|
||||||||||||||||
Diluted Earnings/(Loss) per Share of Common Stock:
|
||||||||||||||||
Income from Continuing Operations
|
$
|
0.98
|
$
|
2.09
|
||||||||||||
Loss from Discontinued Operations, Net of Tax
|
$
|
(0.14
|
)
|
$
|
(0.03
|
)
|
||||||||||
Net Income
|
$
|
0.84
|
$
|
2.06
|
||||||||||||
|
||||||||||||||||
Weighted Average Shares Outstanding
|
||||||||||||||||
Basic
|
30,150
|
29,703
|
||||||||||||||
Diluted
|
30,901
|
30,314
|
|
December 31,
|
December 31,
|
||||||
Assets
|
2013
|
2012
|
||||||
|
||||||||
Cash and Cash Equivalents
|
$
|
22,745
|
$
|
23,551
|
||||
Trade Receivables, net
|
71,276
|
43,094
|
||||||
Other Receivables
|
12,943
|
2,015
|
||||||
Inventories, net
|
89,965
|
71,221
|
||||||
Prepaid Expenses and Other Current Assets
|
5,631
|
4,089
|
||||||
Total Current Assets
|
202,560
|
143,970
|
||||||
|
||||||||
Property, Plant and Equipment, net
|
171,966
|
151,815
|
||||||
Goodwill
|
38,670
|
37,312
|
||||||
Intangible Assets, net
|
4,011
|
4,091
|
||||||
Investments in and Advances to Partially-Owned Affiliates
|
13,364
|
15,094
|
||||||
Deferred Income Taxes
|
19,799
|
30,786
|
||||||
Other Non-Current Assets
|
7,667
|
2,663
|
||||||
|
||||||||
Total Assets
|
$
|
458,037
|
$
|
385,731
|
||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
|
||||||||
Accounts Payable
|
$
|
29,052
|
$
|
27,612
|
||||
Deferred Revenue
|
20,121
|
11,570
|
||||||
Accrued Expenses and Other Current Liabilities
|
48,098
|
43,301
|
||||||
Total Current Liabilities
|
97,271
|
82,483
|
||||||
|
||||||||
Long-Term Debt
|
79,250
|
64,000
|
||||||
Deferred Income Taxes
|
12,835
|
10,383
|
||||||
Accrued Pension Benefits
|
40,123
|
55,373
|
||||||
Other Non-Current Liabilities
|
18,338
|
10,195
|
||||||
|
||||||||
Total Liabilities
|
$
|
247,817
|
$
|
222,434
|
||||
|
||||||||
Stockholders’ Equity
|
$
|
210,220
|
$
|
163,297
|
||||
|
||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
458,037
|
$
|
385,731
|
|
Fourth Quarter 2013
|
Fourth Quarter 2012
|
||||||
|
||||||||
Operating Profit
|
$
|
16,384
|
$
|
7,417
|
||||
|
||||||||
Depreciation and Amortization
|
5,842
|
5,641
|
||||||
|
||||||||
EBITDA
|
$
|
22,226
|
$
|
13,058
|
||||
|
||||||||
|
Twelve Months 2013
|
Twelve Months 2012
|
||||||
|
||||||||
Operating Profit
|
$
|
49,629
|
$
|
35,695
|
||||
|
||||||||
Gain on Sale of Asset
|
(4,680
|
)
|
-
|
|||||
|
||||||||
Adjusted Operating Profit
|
44,949
|
35,695
|
||||||
|
||||||||
Depreciation and Amortization
|
22,473
|
21,775
|
||||||
|
||||||||
Adjusted EBITDA
|
$
|
67,422
|
$
|
57,470
|
|
Twelve Months 2013
|
Twelve Months 2012
|
||||||||||||||
|
Diluted EPS
|
Diluted EPS
|
||||||||||||||
Income from Continuing Operations
|
$
|
30,275
|
$
|
0.98
|
$
|
63,229
|
$
|
2.09
|
||||||||
|
||||||||||||||||
Stock-Based Compensation, Net of Tax 1
|
3,540
|
0.11
|
2,165
|
0.07
|
||||||||||||
Gain on Sale of Asset, Net of Tax
|
(3,210
|
)
|
(0.10
|
)
|
-
|
-
|
||||||||||
Amortization of Purchased Intangibles
|
1,137
|
0.04
|
1,212
|
0.04
|
||||||||||||
Reversal of Tax Valuation Allowance
|
-
|
-
|
(36,287
|
)
|
(1.20
|
)
|
||||||||||
Changes in Tax Laws
|
(1,155
|
)
|
(0.04
|
)
|
(1,328
|
)
|
(0.04
|
)
|
||||||||
Normalization of U.S. Tax Expense 2
|
-
|
-
|
(4,575
|
)
|
(0.15
|
)
|
||||||||||
|
||||||||||||||||
Adjusted Income from Continuing Operations
|
$
|
30,587
|
$
|
0.99
|
$
|
24,416
|
$
|
0.81
|
1
|
Tax rate estimated at 35% for stock-based compensation.
|
2
|
Cambrex began recording tax expense in the U.S. in 2013. 2012 includes an adjustment to reflect U.S. tax expense at 35%.
|