ACETO CORP

CIK:0000002034|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 163,649	$ 171,229	$ 328,054	$ 356,484
Cost of sales	139,603	137,259	278,528	282,531
Gross profit	24,046	33,970	49,526	73,953
Selling, general and administrative expenses	37,000	28,063	73,897	59,212
Research and development expenses	2,114	2,122	3,995	3,737
Operating (loss) income	(15,068)	3,785	(28,366)	11,004
Other (expense) income:
Interest expense	(7,569)	(5,048)	(13,707)	(10,403)
Interest and other income, net	827	764	1,168	1,038
Other (expense) income, Total	(6,742)	(4,284)	(12,539)	(9,365)
(Loss) income before income taxes	(21,810)	(499)	(40,905)	1,639
Income tax provision	540	13,365	2,537	15,049
Net loss	$ (22,350)	$ (13,864)	$ (43,442)	$ (13,410)
Basic loss per common share (in dollars per share)	$ (0.63)	$ (0.39)	$ (1.22)	$ (0.38)
Diluted loss per common share (in dollars per share)	$ (0.63)	$ (0.39)	$ (1.22)	$ (0.38)
Weighted average shares outstanding:
Basic (in shares)	35,592	35,210	35,540	35,093
Diluted (in shares)	35,592	35,210	35,540	35,093

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating activities:
Net loss	$ (43,442)	$ (13,410)
Adjustments to reconcile net (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	16,160	16,547
Amortization of debt issuance costs and debt discount	3,223	3,048
Amortization of deferred financing costs	564	552
Provision for doubtful accounts	(11)	166
Non-cash stock compensation	454	4,514
Deferred income taxes	139	4,827
Environmental charge		902
Earnings on equity investment in joint venture	(1,476)	(1,086)
Changes in assets and liabilities:
Trade accounts receivable	(15,676)	19,938
Other receivables	1,177	(3,145)
Inventory	(47,833)	(9,956)
Prepaid expenses and other current assets	(2,752)	(472)
Other assets	2,701	(953)
Accounts payable	25,899	16,221
Accrued expenses and other liabilities	6,374	9,212
Net cash (used in) provided by operating activities	(54,499)	46,905
Investing activities:
Purchases of investments	(660)	(2,683)
Sales of investments	2,664	1,694
Payments for intangible assets	(1,326)	(692)
Purchases of property and equipment, net	(498)	(3,041)
Net cash provided by (used in) investing activities	180	(4,722)
Financing activities:
Payment of cash dividends	(306)	(3,929)
Proceeds from exercise of stock options		595
Repayment of bank loans	(3,865)	(30,582)
Net cash used in financing activities	(4,171)	(33,916)
Effect of exchange rate changes on cash	(602)	983
Net (decrease) increase in cash	(59,092)	9,250
Cash and cash equivalents at beginning of period	100,874	55,680
Cash and cash equivalents at end of period	$ 41,782	$ 64,930

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 41,782	$ 100,874
Investments	1,013	3,030
Trade receivables, less allowance for doubtful accounts (December 31, 2018, $965; June 30, 2018, $987)	262,325	247,246
Other receivables	7,785	9,664
Inventory	184,307	137,076
Prepaid expenses and other current assets	7,475	4,737
Total current assets	504,687	502,627
Property and equipment, net	13,267	14,180
Property held for sale	6,113	6,113
Goodwill	1,862	1,883
Intangible assets, net	221,039	234,602
Other assets	6,191	7,619
TOTAL ASSETS	753,159	767,024
Current liabilities:
Current portion of long-term debt	183,772	14,482
Accounts payable	132,375	106,790
Accrued expenses	187,587	181,246
Total current liabilities	503,734	302,518
Long-term debt, net	133,349	302,916
Long-term liabilities	64,033	64,558
Environmental remediation liability	3	211
Deferred income tax liability	1,729	1,536
Total liabilities	702,848	671,739
Commitments and contingencies (Note 7)
Shareholders' equity:
Preferred stock, 2,000 shares authorized; no shares issued and outstanding
Common stock, $.01 par value, 75,000 shares authorized; 30,839 and 30,787 shares issued and outstanding at December 31, 2018 and June 30, 2018, respectively	308	308
Capital in excess of par value	223,040	222,599
Accumulated deficit	(170,398)	(126,737)
Accumulated other comprehensive loss	(2,639)	(885)
Total shareholders' equity	50,311	95,285
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 753,159	$ 767,024