Chase Corporation (NYSE:CCF)

Fourth Quarter 2012 Results

• Revenues for the fourth quarter ended August 31, 2012 were $52.2 million. This represents an increase of 58.7% compared to $32.9 million in the prior year period.
• Adjusting for acquisition costs, expense related to inventory step up in fair value and defined benefit plan settlement costs, net income was $4.69 million or $0.52 per share in the fourth quarter of fiscal 2012 compared to $0.40.

• The Company also announced a cash dividend of $0.40 per share.

Peter R. Chase, Chairman and Chief Executive Officer commented: “Of course the highlight of the fiscal year is the acquisition of NEPTCO, Inc. in late June. NEPTCO’s addition solidifies Chase as the premier supplier of tape products to wire and cable manufacturers in the Americas and broadens the Company’s offerings to the electronics industry world-wide. Our integration plan is providing the road map to deliver results from the synergies identified.

It is important to note that without the acquisition, revenues were up from the prior year by 13.7% for the quarter and 9.0% for the year. As forecast in our last report, the entire Chase team delivered a strong finish to the year. Thanks go to Operations, Sales, R&D, Finance and all those in Support.

Efforts are being made, both in this report and going forward, to present earnings with explanations to enable the reader to clearly compare key items that impact the results. You can see this in the tabular presentation. In this vein we have based our dividend decision on adjusted net income.

In 2013 fiscal year’s earnings releases, we plan to add a non-GAAP financial measurement – earnings before interest, taxes, depreciation and amortization (EBITDA). We believe it will be of value to shareholders and the investing public and will be in addition to the customary GAAP financial details. EBITDA is commonly used both internally and throughout industry for valuation.

As the new fiscal year begins, Marketing and R&D efforts continue to be prime areas of focus. The consolidation program is nearing completion of the production moves from Randolph to Oxford and Pittsburgh and a new phase is beginning as part of the NEPTCO integration plan. In addition, M&A activity continues in earnest. We look forward to an exciting year.”

Fourth quarter of fiscal 2010

• Revenues were $35.4 million for the quarter ended August 31, 2010. This represents an increase of 45% compared to $24.4 million in the fourth quarter of last year.

• Income from continuing operations of $3.8 million, net of taxes, increased 52% from $2.5 million in the prior year period.

• Net income from continuing operations per diluted share of $0.42 in the fourth quarter of fiscal 2010 increased $0.15 compared to $0.27 per diluted share in fiscal 2009.

 Peter R. Chase, Chairman and Chief Executive Officer commented, “2010 has been a rewarding year and our better than expected fourth quarter has carried us to a very substantial increase over 2009 results. Continued recovery in the automotive sector worldwide and protective products used in domestic infrastructure applications led the charge, while housing continued to be weak.

“We have entered the new quarter with some momentum and while the economy is still unsettled in many areas we remain optimistic for continued progress.”