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| 8-K - FORM 8-K - AMERICAN PACIFIC CORP | d314764d8k.htm |
 Presentation to Stockholders
13 March 2012
AMERICAN PACIFIC CORPORATION
2012: Value-Creating Growth
& Improved Profitability
Exhibit 99.1 |
 2012 Annual
Meeting of Stockholders 1
Safe Harbor Statements and
Reconciliations of Non-GAAP Measures
Safe Harbor Statements
Some of the statements in this presentation constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. All statements other than those of historical facts
included herein, including those related to the financial outlook, goals, business
strategy, projected plans and objectives of management of American Pacific
Corporation (the “Company”) for future operations and liquidity,
are forward-looking statements. Such forward-looking statements involve known and
unknown risks and uncertainties that may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements, expressed or implied by such
forward-looking statements. Factors that could cause actual results to differ materially
from such forward-looking statements include risks and uncertainties detailed
in the Company’s Annual Report
on
Form
10-K
for
the
fiscal
year
ended
September
30,
2011
and
the
Quarterly
Report
on
Form
10-Q for the quarter ended December 31, 2011.
Reconciliation of Non-GAAP Measures
Throughout this presentation we provide both GAAP and Non-GAAP financial
measures. For additional information and the reconciliation of these
measures to the appropriate GAAP measure, as required by Securities
and
Exchange
Commission
Regulation
G,
please
refer
to
our
Form
8-Ks
dated
March
13,
2012 and December 14, 2011, which provide definitions of these Non-GAAP
measures and a reconciliation
of
these
Non-GAAP
measures
to
the
most
comparable
GAAP
measures.
This
presentation
and
the
Form
8-Ks
referred
to
herein
are
available
in
the
“Investors”
section
of
the
Company’s website at www.apfc.com. |
 2012 Annual
Meeting of Stockholders AMPAC Services Four Industries
Industry / Market
Products
Business Unit
Size
(% of FY11 Sales)
Pharmaceuticals
•
Active Ingredients
•
Registered Intermediates
•
Sodium Azide
•
Fine Chemicals
•
Specialty Chemicals
(Sodium Azide)
45%
Aerospace &
Defense
•
Perchlorates
•
Satellite Thrusters
•
Propulsion Systems
•
Aerospace Valves & Structures
•
Launch Vehicle Structures
•
Specialty Chemicals
(Wecco)
•
In-Space Propulsion
51%
Fire Suppression
•
Halotron I
•
Halotron II
•
Specialty Chemicals
(Halotron)
2%
Water Treatment
•
On-site Hypochlorite generation
systems
•
PEPCON Systems
2%
2
We manufacture mission critical products |
 2012 Annual
Meeting of Stockholders 3
Strategic Objectives:
Drive for Value-Creating Growth
Protect the Core
Diversify the Customer Base
Expand Our Product Lines
Improve Profitability and Return on
Invested Capital
Mitigate Environmental Remediation
Liability |
 2012 Annual
Meeting of Stockholders 4
Focus on Objectives in FY11 Enabled Growth:
Revenues Increase 19%
Fine Chemicals led turnaround: 29%
revenue increase
Renewal of key three-year anti-viral product
agreement
Strong oncology and CNS product revenues
Development products exceeded 20% of
segment revenues
Tactical and Strategic missile programs provided sound
foundation for Specialty Chemicals segment revenues from
AP
30% Aerospace Equipment segment revenue growth
supported by key product lines
Key contract awards for in-space propulsion engines
Strong customer support |
 2012 Annual
Meeting of Stockholders 5
Focus on Objectives in FY11
Benefited Profitability
Corporate-wide initiatives drive
profit improvement
Focus on process improvements and
production efficiencies
Substantial reductions in general and
administrative expenses
Results:
Adjusted EBITDA increased 38% to
$33.0MM
Adjusted Diluted EPS of $0.30
compares to ($0.44) for the prior year |
 2012 Annual
Meeting of Stockholders 6
AMPAC Fine Chemicals:
Expect 15% growth in 2012
Core business strengthens
Anti-viral product orders increase
CNS product: 5-year add-on negotiated
Oncology remains stable –
albeit “lumpy”
New products provide growth path
Controlled
substance:
registration
approved –
new product to market
New
cancer
product:
customer
received
FDA approval –
new product to market
Chimerix:
validating
smallpox
medication
18
different
customers:
provide
development orders –
anticipate 20% of
2012 sales |
 AFC
Growth: Requires Maturing Growth Areas and Product Pipeline
PIPELINE/
DEVELOPMENT
THERAPEUTIC
AREAS
Energetic/
Special
Chemistry
High
Potency
SMB
Controlled
Substances
Biocatalysis
Homeland
Security
Generics
Continuous
Processing
3
7
2
9
2
11
4
4
2
3
1
•
Anti-Viral
•
Cancer
•
Nerve Gas
Antidote
•
CNS
•
Cancer
•
Anti-Viral
•
Pain
•
Anti-Viral
•
Cancer
•
Polymers
•
Bio-
Terrorism
•
Cancer
•
Anti-Viral
•
Various
2012 Annual Meeting of Stockholders
7
GROWTH
CORE
CORE
BUSINESS LINES |
 2012 Annual
Meeting of Stockholders 8
Specialty Chemicals: Business Remains Stable
Rocket-Grade Ammonium Perchlorate (AP)
Defense applications: stability of annual demand
•
fluctuations quarter-to-quarter
NASA requirements
•
Space Launch System well funded
•
Uses Shuttle-type solid booster rockets for initial test
flights
•
Solid rockets using AP will have an advantage for
production units post 2016
Fire Suppression Chemicals
Promising new applications
Sodium Products
New opportunity in alternative energy |
 2012 Annual
Meeting of Stockholders 9
In-Space Propulsion Business
Continues to Penetrate Market
Sales Growth from $16MM in FY08
to $49MM in FY11
FY12 will be a stabilization year
Propulsion systems business opportunities
Platinum alloy thruster sales expected to
increase
Building a world-class technical team
European Market Penetration
Continues
OHB wins Galileo follow-on units
Development projects from European
Space Agency |
 2012 Annual
Meeting of Stockholders 10
Fiscal
2012:
Improved
Outlook
as
Fine Chemicals Growth Continues
AMPAC revenue guidance of at least $220MM
Fine Chemicals revenue increase of at least 15%
Specialty Chemicals revenue decrease of up to 10%
–
within stable range for this segment
Modest revenue growth in Aerospace Equipment
AMPAC adjusted EBITDA guidance of at least
$35MM
Fine Chemicals improvement in profitability –
driven by
process improvements and increased base
Slight decline in Specialty Chemicals –
more typical
product mix |
 2012 Annual
Meeting of Stockholders 11
2012 and Beyond:
Value-Creating Growth and Improved Returns
Maintain strong customer relationships –
reliably
provide value-added products and services
Protect the Core
Grow in alignment with our strategy
Diversify our Customer base
Expand our product lines
Control spending and improve operational
performance
Improve profitability and return on invested capital
Explore strategic alternatives to create value |
 2012 Annual
Meeting of Stockholders 12
Questions |