American Pacific Corporation Reports Q4 Loss Of ($0.44) (APFC)

American Pacific Corporation APFC today reported financial results for its fiscal 2010 year and fourth quarter ended September 30, 2010. We provide non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying supplemental data. FINANCIAL SUMMARY Year Ended September 30, 2010 Compared to Year Ended September 30, 2009 * Revenues decreased $20.9 million, or 11%, to $176.2 million from $197.1 million. * Operating income was $6.7 million compared to $1.8 million. * Adjusted EBITDA was $23.9 million compared to $32.6 million. * Net loss was $3.3 million compared to $6.0 million. * Diluted loss per share was $0.44 compared to $0.80. Quarter Ended September 30, 2010 Compared to Quarter Ended September 30, 2009 * Revenues declined $18.1 million to $45.5 million from $63.6 million. * Operating income increased to $4.7 million compared to an operating loss of $4.2 million. * Adjusted EBITDA was $9.9 million compared to $14.1 million. * Net income was $1.6 million compared to a net loss of $4.6 million. * Diluted earnings per share was $0.22 compared to diluted loss per share of $0.61. The quarter and year ended September 30, 2009 include an after-tax environmental remediation charge of $8.2 million or $1.09 per diluted share. CONSOLIDATED RESULTS OF OPERATIONS Revenues – For the year ended September 30, 2010 ("Fiscal 2010"), revenues decreased 11% to $176.2 million as compared to the year ended September 30, 2009 ("Fiscal 2009"), reflecting a decrease in Fine Chemicals segment revenues of 27%, offset partially by an increase of 12% in Aerospace Equipment segment revenues. For our Fiscal 2010 fourth quarter, revenues decreased to $45.5 million as compared to the prior fiscal year fourth quarter, reflecting a 77% decline in Fine Chemicals segment revenues, partially offset by a 30% increase in Specialty Chemicals segment revenues. Cost of Revenues and Gross Margins – Fiscal 2010 cost of revenues was $121.5 million compared to $136.3 million for the prior fiscal year. The consolidated gross margin percentage was 31% for both Fiscal 2010 and Fiscal 2009. For our Fiscal 2010 fourth quarter, cost of revenues was $28.4 million compared to $42.0 million for the prior fiscal year fourth quarter. The consolidated gross margin percentage was 38% and 34% for our Fiscal 2010 and Fiscal 2009 fourth quarters, respectively. One of the most significant factors that affects, and should continue to affect, the comparison of our consolidated gross margins from period to period is the change in revenue mix among our segments. The revenue contribution by each of our segments is indicated in the following table.