Welcome!

News Feed Item

Chase Corporation Announces First Quarter Results

Chase Corporation (NYSE MKT: CCF) today reported revenues of

$54.2 million for the quarter ended November 30, 2013. This represents an increase of $0.8 million compared to $53.4 million in the same quarter of last fiscal year. Net income attributable to Chase Corporation of $8.78 million in the current quarter increased $5.24 million from $3.54 million in the prior year period. Earnings per diluted share of $0.95 in the first quarter of fiscal 2014 represented an increase of $0.56 compared to $0.39 per share in fiscal 2013. Included in the fiscal 2014 quarter results was a gain, net of tax, totaling $3.71 million or $0.40 per share, relating to the sale of the Company’s Insulfab product line in October 2013. Included in the prior year quarter results are charges totaling $0.92 million relating to the step up in fair value of inventory related to the NEPTCO acquisition and defined benefit plan settlement costs.

Peter R. Chase, Chairman and Chief Executive Officer, commented, “We had a good start to the 2014 fiscal year with the first quarter activity. Revenues were up slightly from the same period last year but the sales mix favored higher margin product lines. Much of this is the result of our sustained strategic efforts to develop new products, employ creative channel development tactics to increase market share, continue to consolidate our facilities and functions and closely monitor expenses throughout the organization.

“Industrial materials revenues were up nearly $2 million with electronic coatings, power cable products, electronic materials and pulling and detection showing good growth. Specialty materials, fiber optic products and communications cable tapes were down.

“Construction materials continued to demonstrate the project-related fluctuations that are common in many of its product areas. Overall, this segment was down by $1 million. As expected, C.I.M. products were down in comparison to fiscal 2013, mainly because of large export shipments in the prior year that were not repeated. Pipeline products were up.

“This first quarter also contains full participation from NEPTCO in both years. The integration is on schedule to produce more savings this fiscal year as we take further advantage of the product and organizational synergies. The ERP system implementation is on track in various stages at all of our U.S. operations. This is a significant effort which we are accomplishing with our internal staff. I appreciate the dedication of those putting in so much time to make this successful.

“The most significant event during the quarter was the sale of the Insulfab product line. This was the culmination of discussions with a strategic industry player and resulted in a win-win deal recognizing the successful Chase next generation product approvals. As we announced earlier we will continue to give technical and operational support to this business for some time in the future.

“As we mentioned in our annual report letter, we are committed to doing a better job in the merger and acquisition area. The M&A market environment is currently very competitive which makes this a more difficult objective; however, we plan to commit more internal assets to the program.

“I am optimistic looking ahead. We are doing so many things to improve our performance in terms of cost, quality, safety and health, and new product development. With a solid management team and a consistent strategy the results will come.”

The following table summarizes the Company’s financial results for the three months ended November 30, 2013 and 2012.

               
For the Three Months Ended
November 30,
All figures in thousands, except per share figures   2013     2012  
 
Revenues $ 54,183   $ 53,400  
 
Costs and Expenses
Costs of products and services sold 35,478 37,271
Selling, general and administrative expenses   10,439     10,539  
 
Operating income 8,266 5,590
 
Gain on sale of product line 5,706 -
Other expense, net   (408 )   (293 )
 
Income before income taxes 13,564 5,297
 
Income taxes   4,747     1,820  
 
Net income $ 8,817 $ 3,477
 
Net (income) loss attributable to non-controlling interest   (42 )   63  
 
Net income attributable to Chase Corporation $ 8,775   $ 3,540  
 
Net income per diluted share $ 0.95   $ 0.39  
 
Weighted average diluted shares outstanding   9,123     8,928  
 
Reconciliation of net income to EBITDA and adjusted EBITDA

Net income attributable to Chase Corporation

$ 8,775 $ 3,540
Interest expense 303 362
Income taxes 4,747 1,820
Depreciation expense 1,426 1,508
Amortization expense   1,194     1,217  
EBITDA $ 16,445 $ 8,447
 
Gain on sale of product line (5,706 ) -

Cost of sale of inventory step up

- 564
Defined benefit plan settlement costs   -     352  
 
Adjusted EBITDA $ 10,739   $ 9,363  
 

As of November 30, 2013, the Company’s working capital was $73.3 million, including cash on hand of $36.9 million and a current ratio of 2.9. The outstanding balance of the Company’s term debt is $63.0 million. The Company’s $15.0 million line of credit is fully available.

Chase Corporation, founded in 1946, is a leading manufacturer of protective materials for high reliability applications throughout the world.

The Company has used non-GAAP financial measures in this press release. EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Company believes that EBITDA and Adjusted EBITDA are useful performance measures as they are used by its executive management team and board of directors to measure operating performance, to allocate resources to enhance the financial performance of its business, to evaluate the effectiveness of its business strategies and to communicate with its board of directors and investors concerning its financial performance. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as “believe”; “expect”; “anticipate”; “should”; “planned”; “estimated” and “potential” among others. These forward-looking statements are based on Chase Corporation’s current expectations. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance and that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties which may affect the operations, performance, development and results of the Company's business include, but are not limited to, the following: uncertainties relating to economic conditions; uncertainties relating to customer plans and commitments; the pricing and availability of equipment, materials and inventories; technological developments; performance issues with suppliers and subcontractors; economic growth; delays in testing of new products; the Company’s ability to successfully integrate acquired operations; the effectiveness of cost-reduction plans; rapid technology changes and the highly competitive environment in which the Company operates. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...