Delaware
|
22-2476135
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
One Meadowlands Plaza,
|
||
East Rutherford, New Jersey
|
07073
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Name of each exchange
on which registered
|
|
Common Stock, $.10 par value
|
New York Stock Exchange
|
Large accelerated filer
o
|
Accelerated filer
x
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Item
No.
|
PART I
|
Page
No.
|
1
|
3
|
|
1A
|
9
|
|
1B
|
19
|
|
2
|
19
|
|
3
|
19
|
|
4
|
19
|
|
PART II
|
||
5 |
20
|
|
6
|
22
|
|
7
|
24
|
|
7A
|
37
|
|
8
|
37
|
|
9
|
74
|
|
9A
|
74
|
|
9B
|
75
|
|
PART III
|
||
10
|
76
|
|
11
|
77
|
|
12
|
77
|
|
13
|
77
|
|
14
|
77
|
|
PART IV
|
||
15
|
78
|
Item 1
|
Bu
sine
ss.
|
|
·
|
Niche Market Focus: The Company participates in niche markets where significant technical expertise provides a competitive advantage and market differentiation.
|
|
·
|
Market Leadership: The Company secures leading market positions through excellent customer service, proprietary technologies, specialized capabilities and an outstanding regulatory record and leverages these capabilities across the market segments in which it participates.
|
|
·
|
New Products and Services: The Company continues to invest in research and product development (“R&D”) in order to introduce innovative products and services to accelerate revenue growth, provide a competitive advantage and maintain its leading market positions.
|
|
·
|
Operational Excellence: The Company maintains its commitment to continually improve productivity and customer service levels and maintains excellent quality and regulatory compliance systems.
|
|
·
|
Acquisition and Licensing: The Company may drive growth in strategic business segments through the prudent acquisition of businesses, products, product lines, technologies and capabilities to enhance the Company's position in its niche markets.
|
2012
|
2011
|
2010
|
||||||||||
Europe
|
$ | 150,678 | $ | 156,814 | $ | 127,009 | ||||||
North America
|
105,439 | 75,979 | 78,497 | |||||||||
Asia
|
12,827 | 10,448 | 12,554 | |||||||||
Other
|
8,987 | 11,234 | 8,376 | |||||||||
Total
|
$ | 277,931 | $ | 254,475 | $ | 226,436 |
Item 1A
|
Risk F
act
ors.
|
|
·
|
The Company may fail to successfully integrate its acquisitions in accordance with its business strategy.
|
|
·
|
The initial rationale for the acquisition may not remain viable due to a variety of factors, including unforeseen regulatory changes and market dynamics after the acquisition, and this may result in a significant delay or reduction in the profitability of the acquisition.
|
|
·
|
Integration of acquisitions may divert management’s attention away from the Company’s primary product offerings, resulting in the loss of key customers or personnel, and may expose the Company to unanticipated liabilities.
|
|
·
|
The Company may not be able to retain the skilled employees and experienced management that may be necessary to operate the businesses it acquires. If the Company cannot retain such personnel, it may not be able to locate or hire new skilled employees and experienced management to replace them.
|
|
·
|
The Company may purchase a business that has contingent liabilities that include, among others, known or unknown patent or product liability claims.
|
|
·
|
The Company’s acquisition strategy may require it to obtain additional debt or equity financing, resulting in additional leverage, or increased debt obligations as compared to equity, and dilution of ownership.
|
|
·
|
The Company may purchase businesses located in jurisdictions where it does not have operations and as a result it may not be able to anticipate local regulations and the impact such regulations have on its business.
|
|
·
|
the possibility that nations or groups could boycott its products;
|
|
·
|
general economic decline or political unrest in the markets in which it operates;
|
|
·
|
less protection for intellectual property rights in some countries;
|
|
·
|
unexpected changes in regulatory requirements;
|
|
·
|
the difficulties and expenses of compliance with a wide variety of foreign laws and regulations;
|
|
·
|
longer accounts receivable cycles in certain foreign countries;
|
|
·
|
import and export licensing requirements; and
|
|
·
|
government sanctions may reduce or eliminate the Company’s ability to sell its products in certain countries.
|
Item 1B
|
Unresolved Staff Co
mm
ents.
|
Item 2
|
Location
|
Acreage
|
Operating
Subsidiary
|
Primary Product Lines Manufactured
|
Charles City, Iowa
|
57 acres
|
Cambrex
|
APIs and Pharmaceutical Intermediates
|
Charles City, Inc.
|
|||
Karlskoga, Sweden
|
42 acres
|
Cambrex
|
APIs, Pharmaceutical Intermediates
|
Karlskoga AB
|
and Other Fine Chemicals
|
||
Paullo (Milan), Italy
|
13 acres
|
Cambrex
|
APIs and Pharmaceutical Intermediates
|
Profarmaco Milano S.r.l.
|
Item 3
|
Legal
Pro
ceedings.
|
Item
4
|
Mine Safety
Disclosures
.
|
Item 5
|
Market for the Registrant's C
ommo
n Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
2012
|
High
|
Low
|
||||||
First Quarter
|
$ | 8.32 | $ | 6.53 | ||||
Second Quarter
|
9.41 | 5.98 | ||||||
Third Quarter
|
13.01 | 9.01 | ||||||
Fourth Quarter
|
13.96 | 9.34 | ||||||
2011
|
High
|
Low
|
||||||
First Quarter
|
$ | 5.95 | $ | 4.42 | ||||
Second Quarter
|
5.50 | 4.03 | ||||||
Third Quarter
|
5.49 | 4.19 | ||||||
Fourth Quarter
|
7.61 | 4.57 |
Column (a)
|
Column (b)
|
Column (c)
|
||||||||||
Plan category
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
|
Weighted average
exercise price of
outstanding
options, warrants
and rights
|
Number of securities
remaining for future
issuance under equity
compensation plans
(excluding securities
reflected in column (a))
|
|||||||||
Equity compensation plans approved by security holders
|
2,091,789 | $ | 7.01 | 439,608 | ||||||||
Equity compensation plans not approved by security holders
|
172,610 | $ | 7.24 | - | ||||||||
Total
|
2,264,399 | $ | 7.02 | 439,608 |
Item 6
|
Selected Fina
ncial
Data.
|
Years Ended December 31,
|
||||||||||||||||||||
2012
(1)
|
2011
(2)
|
2010
(3)
|
2009
(4)
|
2008
(5)
|
||||||||||||||||
INCOME DATA:
|
||||||||||||||||||||
Gross sales
|
$ | 277,931 | $ | 254,475 | $ | 226,436 | $ | 236,277 | $ | 249,618 | ||||||||||
Net revenues
|
276,501 | 255,653 | 226,992 | 234,550 | 249,228 | |||||||||||||||
Gross profit
|
90,487 | 74,084 | 66,866 | 70,278 | 73,743 | |||||||||||||||
Selling, general and administrative expenses
|
45,248 | 39,227 | 34,024 | 35,711 | 40,521 | |||||||||||||||
Research and development expenses
|
9,544 | 11,037 | 10,305 | 7,929 | 7,590 | |||||||||||||||
Restructuring expenses
|
- | - | 1,293 | - | 4,695 | |||||||||||||||
Strategic alternative costs
|
- | - | - | - | 1,515 | |||||||||||||||
Merger and acquisition expenses
|
- | - | 997 | - | - | |||||||||||||||
Operating profit
|
35,695 | 23,820 | 20,247 | 26,638 | 19,422 | |||||||||||||||
Interest expense, net
|
2,439 | 2,373 | 4,391 | 4,634 | 3,668 | |||||||||||||||
Other expenses/(income), net
|
122 | (111 | ) | 596 | (641 | ) | 754 | |||||||||||||
Equity in losses of partially-owned affiliates
|
1,766 | 1,621 | 286 | - | - | |||||||||||||||
Income before income taxes
|
31,368 | 19,937 | 14,974 | 22,645 | 15,000 | |||||||||||||||
(Benefit)/provision for income taxes
|
(31,861 | ) | 6,202 | 5,665 | 12,253 | 7,071 | ||||||||||||||
Income from continuing operations
|
63,229 | 13,735 | 9,309 | 10,392 | 7,929 | |||||||||||||||
(Loss)/income from discontinued operations, net of tax
|
(926 | ) | (2,767 | ) | 338 | - | - | |||||||||||||
Net income
|
62,303 | 10,968 | 9,647 | 10,392 | 7,929 | |||||||||||||||
EARNINGS PER SHARE DATA:
|
||||||||||||||||||||
Earnings/(loss) per common share (basic):
|
||||||||||||||||||||
Income from continuing operations
|
$ | 2.13 | $ | 0.46 | $ | 0.32 | $ | 0.36 | $ | 0.27 | ||||||||||
(Loss)/income from discontinued operations, net of tax
|
$ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | $ | - | $ | - | ||||||||
Net income
|
$ | 2.10 | $ | 0.37 | $ | 0.33 | $ | 0.36 | $ | 0.27 | ||||||||||
Earnings/(loss) per common share (diluted):
|
||||||||||||||||||||
Income from continuing operations
|
$ | 2.09 | $ | 0.46 | $ | 0.32 | $ | 0.36 | $ | 0.27 | ||||||||||
(Loss)/income from discontinued operations, net of tax
|
$ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | $ | - | $ | - | ||||||||
Net income
|
$ | 2.06 | $ | 0.37 | $ | 0.33 | $ | 0.36 | $ | 0.27 | ||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||
Basic
|
29,703 | 29,468 | 29,361 | 29,241 | 29,116 | |||||||||||||||
Diluted
|
30,314 | 29,564 | 29,468 | 29,267 | 29,161 | |||||||||||||||
BALANCE SHEET DATA: (at end of period)
|
||||||||||||||||||||
Working capital
|
$ | 60,944 | $ | 77,476 | $ | 82,146 | $ | 94,362 | $ | 74,376 | ||||||||||
Total assets
|
394,468 | 342,831 | 351,751 | 351,515 | 341,072 | |||||||||||||||
Long-term debt
|
64,000 | 98,000 | 115,900 | 120,800 | 123,800 | |||||||||||||||
Total stockholders' equity
|
163,297 | 100,341 | 107,635 | 103,270 | 74,786 |
(1)
|
Income from continuing operations includes the release of a valuation allowance on domestic deferred tax assets of $36,287 and the impact on deferred taxes of a statutory rate change of $1,328. Loss from discontinued operations includes pre-tax charges of $1,425, reduced for a tax benefit of $499, for environmental remediation related to sites of divested businesses.
|
(2)
|
Loss from discontinued operations includes pre-tax charges of $2,851 for environmental remediation, net of insurance proceeds, related to sites of divested businesses.
|
(3)
|
Income from continuing operations includes pre-tax charges of $1,293 within operating expenses for certain one-time employee benefits relating to the plan to optimize operations at a manufacturing site to meet industry requirements, $997 within operating expenses for merger and acquisition expenses and $509 within other expenses for currency losses pursuant to the purchase of Zenara. Income from discontinued operations includes a benefit of $1,652 as a result of the expiration of a contingent liability, charges of $1,144 for environmental remediation, net of insurance proceeds, and $170 for a worker's compensation claim, all related to sites of divested businesses.
|
(4)
|
Net income includes tax expense of approximately $5,300 for an estimate of an international tax liability related to a 2003 transaction.
|
(5)
|
Net income includes pre-tax charges, within operating expenses, of $1,515 for costs related to strategic alternatives, $4,695 for restructuring costs and $1,040 related to a former CEO's retirement.
|
Item 7
|
Management's
Discussion and
Analysis of Financial Condition and Results of Operations.
|
·
|
Gross sales in 2012 increased 9.2% to $277,931 from $254,475 in 2011. Foreign currency exchange unfavorably impacted sales 3.4%.
|
·
|
Operating profit increased 49.9% to $35,695 from 2011.
|
·
|
Debt, net of cash, decreased $25,630 during 2012.
|
·
|
Release of a valuation allowance on domestic deferred tax assets of $36,287.
|
·
|
Nature, frequency, and severity of current and cumulative financial reporting losses.
A pattern of objectively-measured recent financial reporting losses is heavily weighted as a source of negative evidence. The Company generally considers cumulative pre-tax losses in the current three-year period to be significant negative evidence regarding future profitability. The Company also considers the strength and trend of earnings, as well as other relevant factors. In certain circumstances, historical information may not be as relevant due to changes in the Company’s business operations;
|
·
|
Sources of future taxable income.
Future reversals of existing temporary differences are heavily-weighted sources of objectively verifiable evidence. Projections of future taxable income exclusive of reversing temporary differences are a source of positive evidence only when the projections are combined with a history of recent profits and can be reasonably estimated; and
|
·
|
Tax planning strategies.
Prudent and feasible tax planning strategies that would be implemented to maximize utilization of expiring tax credit carryforwards are evaluated as a source of additional positive evidence.
|
Total
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018+ | ||||||||||||||||||||||
Long term debt
|
$ | 64,000 | $ | - | $ | - | $ | - | $ | 64,000 | $ | - | $ | - | ||||||||||||||
Interest on debt
|
7,596 | 2,137 | 2,137 | 2,000 | 1,322 | - | - | |||||||||||||||||||||
Operating leases
|
4,052 | 995 | 846 | 671 | 502 | 499 | 539 | |||||||||||||||||||||
Purchase obligations
|
4,265 | 2,557 | 1,708 | - | - | - | - | |||||||||||||||||||||
Contractual cash obligations
|
$ | 79,913 | $ | 5,689 | $ | 4,691 | $ | 2,671 | $ | 65,824 | $ | 499 | $ | 539 |
Item 7A
|
Quantitative
and
Qualitative Disclosures about Market Risk.
|
Item 8
|
Financial Statements and
Supplementary
Data.
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 23,551 | $ | 31,921 | ||||
Trade receivables, less allowances of $652 and $450 at respective dates
|
43,094 | 36,510 | ||||||
Inventories, net
|
71,221 | 62,095 | ||||||
Prepaid expenses and other current assets
|
6,104 | 6,083 | ||||||
Total current assets
|
143,970 | 136,609 | ||||||
Property, plant and equipment, net
|
151,815 | 139,628 | ||||||
Goodwill
|
37,312 | 36,731 | ||||||
Intangible assets, net
|
4,091 | 4,261 | ||||||
Investments in and advances to partially-owned affiliates
|
15,094 | 15,090 | ||||||
Deferred income taxes
|
39,262 | 7,087 | ||||||
Other non-current assets
|
2,924 | 3,425 | ||||||
Total assets
|
$ | 394,468 | $ | 342,831 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 27,612 | $ | 21,200 | ||||
Deferred revenue
|
11,570 | 1,060 | ||||||
Accrued expenses and other current liabilities
|
43,844 | 36,873 | ||||||
Total current liabilities
|
83,026 | 59,133 | ||||||
Long-term debt
|
64,000 | 98,000 | ||||||
Deferred income taxes
|
18,577 | 23,330 | ||||||
Accrued pension benefits
|
55,373 | 52,089 | ||||||
Other non-current liabilities
|
10,195 | 9,938 | ||||||
Total liabilities
|
231,171 | 242,490 | ||||||
Commitments and contingencies (see Notes 18 and 19)
|
||||||||
Stockholders' equity:
|
||||||||
Common Stock, $.10 par value; authorized 100,000,000 issued 31,704,230 and 31,441,138 shares at respective dates
|
3,169 | 3,143 | ||||||
Additional paid-in capital
|
104,173 | 101,646 | ||||||
Retained earnings
|
105,263 | 42,960 | ||||||
Treasury stock, at cost, 1,795,082 and 1,866,258 shares at respective dates
|
(15,217 | ) | (15,821 | ) | ||||
Accumulated other comprehensive loss
|
(34,091 | ) | (31,587 | ) | ||||
Total stockholders' equity
|
163,297 | 100,341 | ||||||
Total liabilities and stockholders' equity
|
$ | 394,468 | $ | 342,831 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Gross Sales
|
$ | 277,931 | $ | 254,475 | $ | 226,436 | ||||||
Commissions, allowances and rebates
|
2,503 | 1,776 | 1,545 | |||||||||
Net sales
|
275,428 | 252,699 | 224,891 | |||||||||
Other
|
1,073 | 2,954 | 2,101 | |||||||||
Net revenues
|
276,501 | 255,653 | 226,992 | |||||||||
Cost of goods sold
|
186,014 | 181,569 | 160,126 | |||||||||
Gross profit
|
90,487 | 74,084 | 66,866 | |||||||||
Selling, general and administrative expenses
|
45,248 | 39,227 | 34,024 | |||||||||
Research and development expenses
|
9,544 | 11,037 | 10,305 | |||||||||
Restructuring expenses
|
- | - | 1,293 | |||||||||
Merger and acquisition expenses
|
- | - | 997 | |||||||||
Operating profit
|
35,695 | 23,820 | 20,247 | |||||||||
Other expenses/(income)
|
||||||||||||
Interest expense, net
|
2,439 | 2,373 | 4,391 | |||||||||
Other expenses/(income), net
|
122 | (111 | ) | 596 | ||||||||
Equity in losses of partially-owned affiliates
|
1,766 | 1,621 | 286 | |||||||||
Income before income taxes
|
31,368 | 19,937 | 14,974 | |||||||||
(Benefit)/provision for income taxes
|
(31,861 | ) | 6,202 | 5,665 | ||||||||
Income from continuing operations
|
63,229 | 13,735 | 9,309 | |||||||||
(Loss)/income from discontinued operations, net of tax
|
(926 | ) | (2,767 | ) | 338 | |||||||
Net income
|
$ | 62,303 | $ | 10,968 | $ | 9,647 | ||||||
Basic earnings per share
|
||||||||||||
Income from continuing operations
|
$ | 2.13 | $ | 0.46 | $ | 0.32 | ||||||
(Loss)/income from discontinued operations, net of tax
|
$ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | ||||
Net income
|
$ | 2.10 | $ | 0.37 | $ | 0.33 | ||||||
Diluted earnings per share
|
||||||||||||
Income from continuing operations
|
$ | 2.09 | $ | 0.46 | $ | 0.32 | ||||||
(Loss)/income from discontinued operations, net of tax
|
$ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | ||||
Net income
|
$ | 2.06 | $ | 0.37 | $ | 0.33 | ||||||
Weighted average shares outstanding:
|
||||||||||||
Basic weighted average shares outstanding
|
29,703 | 29,468 | 29,361 | |||||||||
Effect of dilutive stock options and restricted stock
|
611 | 96 | 107 | |||||||||
Diluted weighted average shares outstanding
|
30,314 | 29,564 | 29,468 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net income
|
$ | 62,303 | $ | 10,968 | $ | 9,647 | ||||||
Foreign currency translation adjustments:
|
||||||||||||
Unrealized net change arising during the period
|
4,066 | (7,501 | ) | (7,417 | ) | |||||||
Foreign currency forward contracts:
|
||||||||||||
Unrealized net (loss)/gain on forward contracts
|
(51 | ) | 624 | 1,643 | ||||||||
Reclassification adjustments for gains included in net income
|
(329 | ) | (143 | ) | (2,054 | ) | ||||||
Income taxes on forward contracts
|
110 | (142 | ) | 114 | ||||||||
Interest rate swap agreement:
|
||||||||||||
Unrealized net losses on swap agreement
|
(1,253 | ) | - | (42 | ) | |||||||
Reclassification adjustments for losses included in net income
|
323 | - | 2,080 | |||||||||
Income taxes on swap agreement
|
326 | - | - | |||||||||
Pension plans:
|
||||||||||||
Actuarial loss
|
||||||||||||
Actuarial loss arising during the period
|
(4,413 | ) | (14,126 | ) | (2,665 | ) | ||||||
Amortization to net income of net actuarial loss
|
1,140 | 618 | 564 | |||||||||
Prior service cost
|
||||||||||||
Amortization to net income of net prior service cost
|
110 | 486 | 487 | |||||||||
Income taxes on pension plans
|
(2,533 | ) | 489 | 1 | ||||||||
Comprehensive income/(loss)
|
$ | 59,799 | $ | (8,727 | ) | $ | 2,358 |
Common Stock
|
||||||||||||||||||||||||||||
Shares
Issued
|
Par
Value
($.10)
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Loss
|
Total
Stockholders'
Equity
|
||||||||||||||||||||||
Balance at December 31, 2009
|
31,408,778 | $ | 3,140 | $ | 100,497 | $ | 22,345 | $ | (18,109 | ) | $ | (4,603 | ) | $ | 103,270 | |||||||||||||
Net income
|
9,647 | 9,647 | ||||||||||||||||||||||||||
Other comprehensive loss
|
(7,289 | ) | (7,289 | ) | ||||||||||||||||||||||||
Purchase of treasury stock
|
(33 | ) | (33 | ) | ||||||||||||||||||||||||
Deferred compensation
|
(96 | ) | 262 | 166 | ||||||||||||||||||||||||
Vested restricted stock
|
860 | (1,004 | ) | 1,004 | - | |||||||||||||||||||||||
Stock option modification
|
52 | 52 | ||||||||||||||||||||||||||
Stock option expense
|
1,020 | 1,020 | ||||||||||||||||||||||||||
Restricted stock expense
|
645 | 645 | ||||||||||||||||||||||||||
Performance stock expense
|
157 | 157 | ||||||||||||||||||||||||||
Balance at December 31, 2010
|
31,409,638 | $ | 3,140 | $ | 101,271 | $ | 31,992 | $ | (16,876 | ) | $ | (11,892 | ) | $ | 107,635 | |||||||||||||
Net income
|
10,968 | 10,968 | ||||||||||||||||||||||||||
Other comprehensive loss
|
(19,695 | ) | (19,695 | ) | ||||||||||||||||||||||||
Purchase of treasury stock
|
(329 | ) | (329 | ) | ||||||||||||||||||||||||
Exercise of stock options
|
31,500 | 3 | 142 | 145 | ||||||||||||||||||||||||
Deferred compensation
|
(28 | ) | 80 | 52 | ||||||||||||||||||||||||
Vested restricted stock
|
(911 | ) | 911 | - | ||||||||||||||||||||||||
Vested performance stock
|
(393 | ) | 393 | - | ||||||||||||||||||||||||
Stock option expense
|
1,028 | 1,028 | ||||||||||||||||||||||||||
Restricted stock expense
|
497 | 497 | ||||||||||||||||||||||||||
Performance stock expense
|
40 | 40 | ||||||||||||||||||||||||||
Balance at December 31, 2011
|
31,441,138 | $ | 3,143 | $ | 101,646 | $ | 42,960 | $ | (15,821 | ) | $ | (31,587 | ) | $ | 100,341 | |||||||||||||
Net income
|
62,303 | 62,303 | ||||||||||||||||||||||||||
Other comprehensive loss
|
(2,504 | ) | (2,504 | ) | ||||||||||||||||||||||||
Exercise of stock options
|
263,092 | 26 | 1,329 | 1,355 | ||||||||||||||||||||||||
Vested restricted stock
|
(604 | ) | 604 | - | ||||||||||||||||||||||||
Stock option expense
|
1,303 | 1,303 | ||||||||||||||||||||||||||
Restricted stock expense
|
446 | 446 | ||||||||||||||||||||||||||
Performance stock expense
|
53 | 53 | ||||||||||||||||||||||||||
Balance at December 31, 2012
|
31,704,230 | $ | 3,169 | $ | 104,173 | $ | 105,263 | $ | (15,217 | ) | $ | (34,091 | ) | $ | 163,297 |
Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 62,303 | $ | 10,968 | $ | 9,647 | ||||||
Adjustments to reconcile net income to cash flows:
|
||||||||||||
Depreciation and amortization
|
21,775 | 23,120 | 21,828 | |||||||||
Increase in inventory reserve
|
2,790 | 1,637 | 1,719 | |||||||||
Allowance for doubtful accounts
|
193 | (103 | ) | 479 | ||||||||
Stock based compensation included in net income
|
1,802 | 1,565 | 1,822 | |||||||||
Deferred income tax provision
|
(40,712 | ) | (721 | ) | (1,165 | ) | ||||||
Restructuring charges
|
- | - | 870 | |||||||||
Equity in losses of partially-owned affiliates
|
1,766 | 1,621 | 286 | |||||||||
Other
|
343 | 390 | 297 | |||||||||
Changes in assets and liabilities:
|
||||||||||||
Trade receivables
|
(6,310 | ) | 2,066 | (7,148 | ) | |||||||
Inventories
|
(10,295 | ) | (3,523 | ) | (4,925 | ) | ||||||
Prepaid expenses and other current assets
|
(188 | ) | 729 | 1,357 | ||||||||
Accounts payable and other current liabilities
|
3,134 | 6,247 | (2,316 | ) | ||||||||
Deferred revenue
|
10,510 | 524 | (104 | ) | ||||||||
Other non-current assets and liabilities
|
182 | (5,597 | ) | 770 | ||||||||
Discontinued operations:
|
||||||||||||
Net cash used in discontinued operations
|
(3,747 | ) | (601 | ) | (133 | ) | ||||||
Net cash provided by operating activities
|
43,546 | 38,322 | 23,284 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Capital expenditures
|
(18,156 | ) | (15,008 | ) | (12,637 | ) | ||||||
Advances to partially-owned affiliates
|
(2,047 | ) | - | - | ||||||||
Acquisition of business and equity investment, net of cash acquired
|
- | (500 | ) | (25,249 | ) | |||||||
Capital invested in partially-owned affiliate
|
- | - | (1,148 | ) | ||||||||
Other investing activities
|
21 | 20 | (18 | ) | ||||||||
Net cash used in investing activities
|
(20,182 | ) | (15,488 | ) | (39,052 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Long-term debt activity (including current portion):
|
||||||||||||
Borrowings
|
5,500 | 105,800 | 33,200 | |||||||||
Repayments
|
(39,500 | ) | (123,700 | ) | (38,100 | ) | ||||||
Debt issuance costs
|
- | (1,541 | ) | - | ||||||||
Proceeds from stock options exercised
|
1,355 | 145 | - | |||||||||
Other financing activities
|
(22 | ) | (340 | ) | (54 | ) | ||||||
Net cash used in financing activities
|
(32,667 | ) | (19,636 | ) | (4,954 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
933 | (891 | ) | (2,029 | ) | |||||||
Net (decrease)/increase in cash and cash equivalents
|
(8,370 | ) | 2,307 | (22,751 | ) | |||||||
Cash and cash equivalents at beginning of year
|
31,921 | 29,614 | 52,365 | |||||||||
Cash and cash equivalents at end of year
|
$ | 23,551 | $ | 31,921 | $ | 29,614 | ||||||
Supplemental disclosure:
|
||||||||||||
Interest paid, net of capitalized interest
|
$ | 2,556 | $ | 2,258 | $ | 4,328 | ||||||
Income taxes paid, net of refunds received
|
$ | 5,068 | $ | 8,520 | $ | 3,579 |
(1)
|
The Company
|
(2)
|
Summary of Significant Accounting Policies
|
(2)
|
Summary of Significant Accounting Policies (continued)
|
Buildings and improvements
|
20 to 30 years, or term of lease if applicable
|
|
Machinery and equipment
|
7 to 15 years
|
|
Furniture and fixtures
|
5 to 7 years
|
|
Computer hardware and software
|
3 to 7 years
|
(2)
|
Summary of Significant Accounting Policies (continued)
|
(2)
|
Summary of Significant Accounting Policies (continued)
|
(2)
|
Summary of Significant Accounting Policies (continued)
|
2012
|
2011
|
|||||||
Foreign currency translation
|
$ | 5,177 | $ | 1,111 | ||||
Unrealized (loss)/gain on hedging contracts, net of tax
|
(600 | ) | 274 | |||||
Pensions, net of tax
|
(38,668 | ) | (32,972 | ) | ||||
Total
|
$ | (34,091 | ) | $ | (31,587 | ) |
(3)
|
Impact of Recently Issued Accounting Pronouncements
|
(4)
|
Net Inventories
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Finished goods
|
$ | 30,262 | $ | 26,885 | ||||
Work in process
|
23,533 | 19,190 | ||||||
Raw materials
|
12,352 | 11,261 | ||||||
Supplies
|
5,074 | 4,759 | ||||||
Total
|
$ | 71,221 | $ | 62,095 |
(5)
|
Property, Plant and Equipment
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Land
|
$ | 4,221 | $ | 4,147 | ||||
Buildings and improvements
|
92,307 | 89,587 | ||||||
Machinery and equipment
|
364,370 | 340,978 | ||||||
Furniture and fixtures
|
1,813 | 1,797 | ||||||
Construction in progress
|
21,382 | 8,190 | ||||||
Total
|
484,093 | 444,699 | ||||||
Accumulated depreciation
|
(332,278 | ) | (305,071 | ) | ||||
Net
|
$ | 151,815 | $ | 139,628 |
(6)
|
Goodwill and Intangible Assets
|
Balance as of January 1, 2011
|
$ | 37,694 | ||
Translation effect
|
(963 | ) | ||
Balance as of December 31, 2011
|
36,731 | |||
Translation effect
|
581 | |||
Balance as of December 31, 2012
|
$ | 37,312 |
(6)
|
Goodwill and Intangible Assets (continued)
|
As of December 31, 2012
|
|||||||||||||
Amortization
Period
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
||||||||||
Technology-based intangibles
|
20 years
|
$ | 4,011 | $ | (552 | ) | $ | 3,459 | |||||
Customer-related intangibles
|
10 - 15 years
|
778 | (146 | ) | 632 | ||||||||
$ | 4,789 | $ | (698 | ) | $ | 4,091 |
As of December 31, 2011
|
|||||||||||||
Amortization
Period
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
||||||||||
Technology-based intangibles
|
20 years
|
$ | 3,933 | $ | (344 | ) | $ | 3,589 | |||||
Customer-related intangibles
|
10 - 15 years
|
763 | (91 | ) | 672 | ||||||||
$ | 4,696 | $ | (435 | ) | $ | 4,261 |
(7)
|
Investments in and Advances to Partially-Owned Affiliates
|
(8)
|
Accrued Expense and Other Current Liabilities
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Salaries and employee benefits payable
|
$ | 22,702 | $ | 17,650 | ||||
Taxes payable and related reserves
|
10,180 | 7,181 | ||||||
Other
|
10,962 | 12,042 | ||||||
Total
|
$ | 43,844 | $ | 36,873 |
(9)
|
Income Taxes
|
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Domestic
|
$ | 13,525 | $ | 3,749 | $ | 1,199 | ||||||
International
|
17,843 | 16,188 | 13,775 | |||||||||
Total
|
$ | 31,368 | $ | 19,937 | $ | 14,974 |
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | (177 | ) | $ | (196 | ) | $ | (3 | ) | |||
State
|
4 | 45 | 55 | |||||||||
International
|
8,525 | 7,074 | 6,778 | |||||||||
8,352 | 6,923 | 6,830 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
$ | (36,287 | ) | $ | 204 | $ | 204 | |||||
International
|
(3,926 | ) | (925 | ) | (1,369 | ) | ||||||
(40,213 | ) | (721 | ) | (1,165 | ) | |||||||
Total
|
$ | (31,861 | ) | $ | 6,202 | $ | 5,665 |
(9)
|
Income Taxes (continued)
|
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Income tax provision at U.S federal statutory rate
|
$ | 10,979 | $ | 6,978 | $ | 5,241 | ||||||
State and local taxes, net of federal income tax benefits
|
(1 | ) | 14 | 17 | ||||||||
Effect of foreign income taxed at rates other than the U.S. federal statutory rate
|
(1,780 | ) | 469 | 610 | ||||||||
Foreign income inclusions
|
4,563 | 8,398 | 13,869 | |||||||||
Tax credits
|
(177 | ) | (196 | ) | - | |||||||
Indefinite-lived intangibles
|
- | 204 | 204 | |||||||||
Net change in valuation allowance
|
(45,105 | ) | (9,546 | ) | (14,246 | ) | ||||||
Other
|
(340 | ) | (119 | ) | (30 | ) | ||||||
Total
|
$ | (31,861 | ) | $ | 6,202 | $ | 5,665 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Current deferred tax assets:
|
||||||||
Inventory
|
$ | 2,263 | $ | 2,281 | ||||
Legal and related reserves
|
100 | 508 | ||||||
Other
|
121 | 120 | ||||||
Current deferred tax assets
|
2,484 | 2,909 | ||||||
Valuation allowances
|
(754 | ) | (1,991 | ) | ||||
Total current deferred tax assets
|
$ | 1,730 | $ | 918 | ||||
Current deferred tax liabilities:
|
||||||||
Unremitted foreign earnings
|
$ | 541 | $ | - | ||||
Other
|
2 | 856 | ||||||
Total current deferred tax liabilities
|
$ | 543 | $ | 856 |
(9)
|
Income Taxes (continued)
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Non-current deferred tax assets:
|
||||||||
Foreign tax credit carryforwards
|
$ | 35,410 | $ | 50,936 | ||||
Environmental
|
850 | 1,549 | ||||||
Net capital loss carryforwards (domestic)
|
31 | 15 | ||||||
Net operating loss carryforwards (foreign)
|
902 | 996 | ||||||
Employee benefits
|
17,977 | 17,138 | ||||||
Restructuring
|
334 | 18 | ||||||
Research & experimentation tax credit carryforwards
|
1,681 | 1,630 | ||||||
Alternative minimum tax credit carryforwards
|
2,604 | 3,070 | ||||||
Property, plant and equipment
|
4,228 | 3,498 | ||||||
Other
|
4,432 | 3,817 | ||||||
Non-current deferred tax assets
|
68,449 | 82,667 | ||||||
Valuation allowances
|
(29,187 | ) | (75,580 | ) | ||||
Total non-current deferred tax assets
|
39,262 | 7,087 | ||||||
Non-current deferred tax liabilities:
|
||||||||
Property, plant and equipment
|
6,523 | 7,960 | ||||||
Intangibles and other
|
9,510 | 11,558 | ||||||
Foreign tax allocation reserve
|
2,544 | 3,812 | ||||||
Total non-current deferred tax liabilities
|
$ | 18,577 | $ | 23,330 | ||||
Total net non-current deferred tax (assets)/liabilities
|
$ | (20,685 | ) | $ | 16,243 |
(9)
|
Income Taxes (continued)
|
(9)
|
Income Taxes (continued)
|
2012
|
2011
|
2010
|
||||||||||
Balance at January 1
|
$ | 4,328 | $ | 4,085 | $ | 4,598 | ||||||
Gross increases related to current period tax positions
|
348 | 317 | 236 | |||||||||
Gross increases/(decreases) related to prior period tax positions
|
(483 | ) | 95 | (303 | ) | |||||||
Expirations of statute of limitations for the assessment of taxes
|
(113 | ) | (38 | ) | (161 | ) | ||||||
Settlements
|
(175 | ) | - | - | ||||||||
Foreign currency translation
|
62 | (131 | ) | (285 | ) | |||||||
Balance at December 31
|
$ | 3,967 | $ | 4,328 | $ | 4,085 |
(9)
|
Income Taxes (continued)
|
(10)
|
Long-term Debt
|
(11)
|
Derivatives and Hedging Activities
|
(11)
|
Derivatives and Hedging Activities (continued)
|
(12)
|
Fair Value Measurements
|
(12)
|
Fair Value Measurements (continued)
|
Fair Value Measurements at December 31, 2012 using:
|
||||||||||||||||
Description
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Interest rate swap, liabilities
|
$ | (930 | ) | $ | - | $ | (930 | ) | $ | - | ||||||
Total
|
$ | (930 | ) | $ | - | $ | (930 | ) | $ | - | ||||||
Fair Value Measurements at December 31, 2011 using:
|
||||||||||||||||
Description
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Foreign currency forwards, assets
|
$ | 380 | $ | - | $ | 380 | $ | - | ||||||||
Total
|
$ | 380 | $ | - | $ | 380 | $ | - |
(13)
|
Stockholders' Equity
|
(13)
|
Stockholders' Equity (continued)
|
(14)
|
Restructuring Expenses
|
(15)
|
Stock Based Compensation
|
2012
|
2011
|
2010
|
||||
Expected volatility
|
71.84%
|
68.91%-71.53%
|
66.48%-68.13%
|
|||
Expected term
|
4.75 years
|
4.75 years
|
4.75 years
|
|||
Risk-free interest rate
|
0.66%
|
1.02%-2.00%
|
1.25%-2.52%
|
(15)
|
Stock Based Compensation (continued)
|
Weighted Average
|
||||||||||||
Number of
Shares
|
Exercise
Price
|
Options
Exercisable
|
||||||||||
Outstanding at December 31, 2010
|
1,853,793 | $ | 7.51 | 863,623 | ||||||||
Granted
|
586,000 | 5.55 | ||||||||||
Exercised
|
(31,500 | ) | 4.61 | |||||||||
Forfeited or expired
|
(118,420 | ) | 14.80 | |||||||||
Outstanding at December 31, 2011
|
2,289,873 | 6.67 | 1,122,122 | |||||||||
Granted
|
392,400 | 12.46 | ||||||||||
Exercised
|
(263,092 | ) | 5.15 | |||||||||
Forfeited or expired
|
(154,782 | ) | 18.72 | |||||||||
Outstanding at December 31, 2012
|
2,264,399 | 7.02 | ||||||||||
Exercisable at December 31, 2012
|
1,234,623 | $ | 6.12 |
(15)
|
Stock Based Compensation (continued)
|
Nonvested Stock Options
|
Nonvested Restricted Stock
|
|||||||||||||||
Number
of Shares
|
Weighted-
Average Grant-
Date Fair
Value
|
Number
of Shares
|
Weighted-
Average Grant-
Date Fair Value
|
|||||||||||||
Nonvested at December 31, 2010
|
990,170 | $ | 2.57 | 105,324 | $ | 6.17 | ||||||||||
Granted
|
586,000 | 3.18 | 61,072 | 5.24 | ||||||||||||
Vested during period
|
(370,919 | ) | 2.51 | (107,497 | ) | 5.99 | ||||||||||
Forfeited
|
(37,500 | ) | 2.89 | - | - | |||||||||||
Nonvested at December 31, 2011
|
1,167,751 | 2.89 | 58,899 | 5.54 | ||||||||||||
Granted
|
392,400 | 7.14 | 43,422 | 6.82 | ||||||||||||
Vested during period
|
(491,875 | ) | 2.62 | (71,176 | ) | 6.23 | ||||||||||
Forfeited
|
(38,500 | ) | 3.25 | - | - | |||||||||||
Nonvested at December 31, 2012
|
1,029,776 | $ | 4.62 | 31,145 | $ | 5.76 |
(16)
|
Retirement Plans
|
(16)
|
Retirement Plans (continued)
|
Pension Plans
|
||||||||||||||||||||||||
Domestic
|
SERP
|
International
|
||||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||
Change in benefit obligation
|
||||||||||||||||||||||||
Benefit obligation, beginning of year
|
$ | 75,430 | $ | 66,268 | $ | 4,153 | $ | 5,139 | $ | 23,020 | $ | 20,877 | ||||||||||||
Service cost
|
- | - | - | - | 660 | 611 | ||||||||||||||||||
Interest cost
|
3,284 | 3,462 | 85 | 150 | 795 | 944 | ||||||||||||||||||
Actuarial loss
|
4,699 | 8,904 | 88 | 90 | 1,852 | 2,034 | ||||||||||||||||||
Benefits paid
|
(3,455 | ) | (3,204 | ) | (636 | ) | (1,226 | ) | (755 | ) | (744 | ) | ||||||||||||
Currency translation affect
|
- | - | - | - | 1,461 | (702 | ) | |||||||||||||||||
Benefit obligation, end of year
|
$ | 79,958 | $ | 75,430 | $ | 3,690 | $ | 4,153 | $ | 27,033 | $ | 23,020 |
2012
|
2011
|
|||||||
Change in plan assets
|
||||||||
Fair value of plan assets, beginning of period
|
$ | 49,104 | $ | 47,323 | ||||
Actual return on plan assets
|
5,945 | 619 | ||||||
Contributions
|
2,306 | 4,366 | ||||||
Benefits paid
|
(3,455 | ) | (3,204 | ) | ||||
Fair value of plan assets, end of period
|
$ | 53,900 | $ | 49,104 | ||||
Unfunded status
|
(26,058 | ) | (26,326 | ) | ||||
Accrued benefit cost, end of period
|
$ | (26,058 | ) | $ | (26,326 | ) |
(16)
|
Retirement Plans (continued)
|
Pension Plans
|
||||||||||||||||||||||||
Domestic
|
SERP
|
International
|
||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||
Actuarial loss
|
$ | 32,646 | $ | 31,083 | $ | 958 | $ | 946 | $ | 7,354 | $ | 5,658 | ||||||||||||
Prior service cost/(benefit)
|
- | 60 | 287 | 344 | (31 | ) | (38 | ) | ||||||||||||||||
$ | 32,646 | $ | 31,143 | $ | 1,245 | $ | 1,290 | $ | 7,323 | $ | 5,620 |
Pension Plans
|
||||||||||||||||||||||||||||||||||||
Domestic
|
SERP
|
International
|
||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||||||||||||||
Components of net periodic benefit cost
|
||||||||||||||||||||||||||||||||||||
Service cost
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 660 | $ | 611 | $ | 577 | ||||||||||||||||||
Interest cost
|
3,284 | 3,462 | 3,519 | 85 | 150 | 200 | 795 | 944 | 857 | |||||||||||||||||||||||||||
Expected return on plan assets
|
(3,674 | ) | (3,787 | ) | (3,177 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Amortization of prior service cost/(benefit)
|
60 | 436 | 436 | 57 | 57 | 57 | (7 | ) | (7 | ) | 176 | |||||||||||||||||||||||||
Recognized actuarial loss
|
864 | 458 | 429 | 76 | 49 | 33 | 200 | 111 | 102 | |||||||||||||||||||||||||||
Net periodic benefit cost
|
$ | 534 | $ | 569 | $ | 1,207 | $ | 218 | $ | 256 | $ | 290 | $ | 1,648 | $ | 1,659 | $ | 1,712 |
Pension Plans
|
||||||||||||
Domestic
|
SERP
|
International
|
||||||||||
Actuarial loss
|
$ | 937 | $ | 99 | $ | 284 | ||||||
Prior service cost/(benefit)
|
- | 57 | (7 | ) | ||||||||
Total
|
$ | 937 | $ | 156 | $ | 277 |
2012
|
2011
|
|||||||
Discount rate:
|
||||||||
Domestic Pension Plan
|
3.90 | % | 4.45 | % | ||||
SERP
|
1.35 | % | 2.40 | % | ||||
International Pension Plan
|
3.40 | % | 4.40 | % | ||||
Rate of compensation increase:
|
||||||||
International Pension Plan
|
2.40 | % | 2.80 | % |
(16)
|
Retirement Plans (continued)
|
2012
|
2011
|
2010
|
||||||||||
Discount rate:
|
||||||||||||
Domestic Pension Plan
|
4.45 | % | 5.35 | % | 5.90 | % | ||||||
SERP
|
2.40 | % | 3.40 | % | 4.15 | % | ||||||
International Pension Plan
|
3.40 | % | 4.40 | % | 4.70 | % | ||||||
Expected return on plan assets:
|
||||||||||||
Domestic Pension Plan
|
7.50 | % | 7.50 | % | 7.50 | % | ||||||
Rate of compensation increase:
|
||||||||||||
International Pension Plan
|
2.40 | % | 2.80 | % | 3.00 | % |
Pension Plans
|
||||||||||||
Domestic
|
SERP
|
International
|
||||||||||
2013
|
$ | 3,201 | $ | 636 | $ | 771 | ||||||
2014
|
$ | 3,434 | $ | 636 | $ | 772 | ||||||
2015
|
$ | 3,435 | $ | 636 | $ | 780 | ||||||
2016
|
$ | 3,408 | $ | 636 | $ | 784 | ||||||
2017
|
$ | 3,560 | $ | 636 | $ | 807 | ||||||
2018-2022
|
$ | 19,994 | $ | 636 | $ | 5,162 |
(16)
|
Retirement Plans (continued)
|
Group
Annuity
Contract
|
||||
Balance at December 31, 2011
|
$ | 2,100 | ||
Actual return on plan assets:
|
||||
Relating to assets still held at the reporting date
|
113 | |||
Purchases, issuances, and settlements
|
(53 | ) | ||
Balance at December 31, 2012
|
$ | 2,160 |
(17)
|
Foreign Operations and Sales
|
Domestic
|
Foreign
|
Total
|
||||||||||
2012
|
||||||||||||
Gross sales
|
$ | 109,729 | $ | 168,202 | $ | 277,931 | ||||||
Long-lived assets
|
44,085 | 149,133 | 193,218 | |||||||||
2011
|
||||||||||||
Gross sales
|
$ | 83,407 | $ | 171,068 | $ | 254,475 | ||||||
Long-lived assets
|
34,885 | 145,735 | 180,620 | |||||||||
2010
|
||||||||||||
Gross sales
|
$ | 71,363 | $ | 155,073 | $ | 226,436 | ||||||
Long-lived assets
|
36,691 | 156,173 | 192,864 |
2012
|
2011
|
2010
|
||||||||||
Europe
|
$ | 150,678 | $ | 156,814 | $ | 127,009 | ||||||
North America
|
105,439 | 75,979 | 78,497 | |||||||||
Asia
|
12,827 | 10,448 | 12,554 | |||||||||
Other
|
8,987 | 11,234 | 8,376 | |||||||||
Total
|
$ | 277,931 | $ | 254,475 | $ | 226,436 |
(18)
|
Commitments
|
Year ended December 31:
|
||||
2013
|
$ | 995 | ||
2014
|
846 | |||
2015
|
671 | |||
2016
|
502 | |||
2017
|
499 | |||
2018 and thereafter
|
539 | |||
Total commitments
|
$ | 4,052 |
(18)
|
Commitments (continued)
|
(19)
|
Contingencies
|
(19)
|
Contingencies (continued)
|
(19)
|
Contingencies (continued)
|
(19)
|
Contingencies (continued)
|
(20)
|
Discontinued Operations
|
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter (1)
|
|||||||||||||
2012
|
||||||||||||||||
Gross sales
|
$ | 70,559 | $ | 77,142 | $ | 59,841 | $ | 70,389 | ||||||||
Net revenues
|
70,228 | 77,133 | 59,210 | 69,930 | ||||||||||||
Gross profit
|
22,428 | 28,445 | 18,531 | 21,083 | ||||||||||||
Income from continuing operations
|
7,038 | 9,928 | 2,021 | 44,242 | ||||||||||||
Loss from discontinued operations (2)
|
- | - | (332 | ) | (594 | ) | ||||||||||
Net income
|
7,038 | 9,928 | 1,689 | 43,648 | ||||||||||||
Earnings per share of common stock:(3)
|
||||||||||||||||
Basic
|
0.24 | 0.34 | 0.06 | 1.46 | ||||||||||||
Diluted
|
0.24 | 0.33 | 0.06 | 1.42 | ||||||||||||
Average shares:
|
||||||||||||||||
Basic
|
29,602 | 29,623 | 29,711 | 29,874 | ||||||||||||
Diluted
|
29,886 | 29,912 | 30,587 | 30,717 | ||||||||||||
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
2011
|
||||||||||||||||
Gross sales
|
$ | 61,654 | $ | 67,484 | $ | 58,203 | $ | 67,134 | ||||||||
Net revenues
|
60,585 | 68,382 | 59,155 | 67,531 | ||||||||||||
Gross profit
|
17,455 | 19,057 | 17,829 | 19,743 | ||||||||||||
Income from continuing operations
|
2,855 | 4,757 | 3,094 | 3,029 | ||||||||||||
Loss from discontinued operations (2)
|
(146 | ) | - | (333 | ) | (2,288 | ) | |||||||||
Net income
|
2,709 | 4,757 | 2,761 | 741 | ||||||||||||
Earnings per share of common stock:(3)
|
||||||||||||||||
Basic
|
0.09 | 0.16 | 0.09 | 0.03 | ||||||||||||
Diluted
|
0.09 | 0.16 | 0.09 | 0.02 | ||||||||||||
Average shares:
|
||||||||||||||||
Basic
|
29,448 | 29,419 | 29,483 | 29,520 | ||||||||||||
Diluted
|
29,518 | 29,493 | 29,528 | 29,711 |
(1)
|
Income from continuing operations includes the reversal of a valuation allowance on deferred tax assets of $36,287 and the impact on deferred taxes of a statutory rate change of $1,328.
|
(2)
|
Discontinued operations includes charges for environmental remediation related to sites of divested businesses.
|
(3)
|
Earnings per share calculations for each of the quarters are based on the weighted average number of shares outstanding for each period. As such, the sum of the quarters may not necessarily equal the earnings per share amount for the year.
|
Item 9
|
Changes in and
Disagreements with
Accountants on Accounting and Financial Disclosure.
|
Item 9A
|
Controls
and Procedures
.
|
|
·
|
Pertain to the maintenance of records, that in reasonable detail, accurately and fairly represent the transactions and dispositions of the assets of the Company,
|
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors of the Company, and
|
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Item 9B
|
Other I
nformat
ion
.
|
Item 10
|
Directors,
Executive Officers
and Corporate Governance.
|
Name
|
Age
|
Office
|
|
Steven M. Klosk (i) (ii)
|
55
|
President, Chief Executive Officer
|
|
Shawn P. Cavanagh (i) (ii)
|
46
|
Executive Vice President and Chief Operating Officer
|
|
James G. Farrell (ii)
|
46
|
Vice President and Corporate Controller
|
|
William M. Haskel (i) (ii)
|
51
|
Senior Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer
|
|
Paolo Russolo (i)
|
68
|
President, Cambrex Profarmaco Milano
|
|
Gregory P. Sargen (i) (ii)
|
47
|
Executive Vice President and Chief Financial Officer
|
Item 11
|
Executive
Com
pensation.
|
Item 12
|
Security
Owne
rship of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Item 13
|
Certain Relationships
and Related
Transactions and Director Independence.
|
Item 14
|
Principal Accountant Fees
and Services
.
|
Item 15
|
Exhibits and Financial
Statement Schedules
.
|
|
(a)
|
1.
|
The following consolidated financial statements of the Company are filed as part of this report:
|
Page Number
|
|
(in this report)
|
|
Financial Statements:
|
|
Reports of Independent Registered Public Accounting Firm
|
38
|
Consolidated Balance Sheets as of December 31, 2012 and 2011
|
40
|
Consolidated Income Statements for the Years Ended December 31, 2012, 2011 and 2010
|
41
|
Consolidated Statements of Comprehensive Income/(Loss) for the Years Ended December 31, 2012, 2011 and 2010
|
42
|
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2012, 2011 and 2010
|
43
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2012, 2011 and 2010
|
44
|
Notes to Consolidated Financial Statements
|
45
|
Selected Quarterly Financial and Supplementary Data (unaudited)
|
73
|
Page Number
|
|
(in this report)
|
|
Schedule II – Valuation and Qualifying Accounts
|
79
|
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
||||||||||||||||
Additions
|
||||||||||||||||||||
Charged/
|
Charged/
|
|||||||||||||||||||
Balance
|
(Credited) to
|
(Credited) to
|
Balance
|
|||||||||||||||||
Beginning
|
Cost and
|
Other
|
End of
|
|||||||||||||||||
of Year
|
Expenses
|
Accounts
|
Deductions
|
Year
|
||||||||||||||||
Description
|
||||||||||||||||||||
Year ended December 31, 2012:
|
||||||||||||||||||||
Doubtful trade receivables and returns and allowances
|
$ | 450 | $ | 193 | $ | 12 | $ | 3 | $ | 652 | ||||||||||
Deferred tax valuation allowance
|
77,571 | (45,105 | ) | (2,525 | ) | - | 29,941 | |||||||||||||
Year ended December 31, 2011:
|
||||||||||||||||||||
Doubtful trade receivables and returns and allowances
|
$ | 1,083 | $ | (103 | ) | $ | (39 | ) | $ | 491 | $ | 450 | ||||||||
Deferred tax valuation allowance
|
77,849 | (9,546 | ) | 9,268 | - | 77,571 | ||||||||||||||
Year ended December 31, 2010:
|
||||||||||||||||||||
Doubtful trade receivables and returns and allowances
|
$ | 627 | $ | 478 | $ | (22 | ) | $ | - | $ | 1,083 | |||||||||
Deferred tax valuation allowance
|
80,368 | (14,246 | ) | 11,727 | - | 77,849 |
CAMBREX CORPORATION
|
|||
By
|
/s/ Gregory P. Sargen
|
||
Gregory P. Sargen
|
|||
Executive Vice President and Chief Financial Officer
|
|||
Date: February 7, 2013
|
Signature
|
Title
|
Date
|
||||
/s/ |
STEVEN M. KLOSK
|
President and Chief Executive Officer,
|
February 7, 2013
|
|||
Steven M. Klosk
|
and Director | |||||
/s/ |
GREGORY P. SARGEN
|
|
Executive Vice President and Chief Financial
|
February 7, 2013
|
||
Gregory P. Sargen
|
Officer (Principal Financial Officer
|
|||||
and Accounting Officer) | ||||||
/s/ |
JOHN R. MILLER
|
Chairman of the Board of Directors
|
February 7, 2013
|
|||
John R. Miller
|
||||||
/s/ |
SHLOMO YANAI
|
Vice Chairman of the Board of Directors
|
|
February 7, 2013
|
||
Shlomo Yanai
|
||||||
/s/ |
ROSINA B.DIXON
|
Director
|
February 7, 2013
|
|||
Rosina B. Dixon, M.D.
|
||||||
/s/ |
KATHRYN RUDIE HARRIGAN
|
Director
|
February 7, 2013
|
|||
Kathryn Rudie Harrigan, PhD
|
||||||
/s/ |
LEON J. HENDRIX, JR.
|
Director
|
February 7, 2013
|
|||
Leon J. Hendrix, Jr.
|
||||||
/s/ |
ILAN KAUFTHAL
|
Director
|
February 7, 2013
|
|||
Ilan Kaufthal
|
||||||
/s/ |
WILLIAM KORB
|
Director
|
February 7, 2013
|
|||
William Korb
|
||||||
/s/ |
PETER G. TOMBROS
|
Director
|
February 7, 2013
|
|||
Peter G. Tombros
|
Exhibit No.
|
Description
|
||
2.1
|
--
|
Agreement for the sale and purchase of the entire issued share capital in each of Zenara Pharma Limited and Zenara Pharma Private Limited dated November 2, 2010, between Camzena Holdings Limited, NuLife (Cyprus) Limited, Ashok Srinivasan Narasimhan, Pradip Khodidas Dhamecna, Cambrex Corporation, Zenara Pharma Limited and Zenara Pharma Private Limited.(W).
|
|
2.2
|
--
|
Asset purchase agreement dated as of August 7, 2003 between Rutherford Acquisition Corporation and Cambrex Corporation and The Sellers listed in the asset Purchase agreement.(U).
|
|
2.3
|
--
|
Stock Purchase Agreement dated October 23, 2006 between Lonza America Inc., Lonza Bioproducts AG, Lonza Sales AG, Lonza Group Limited and Cambrex Corporation and Subsidiaries.(P – Exhibit 10.1).
|
|
3.1
|
--
|
Restated Certificate of Incorporation of Registrant, as amended.(AA).
|
|
3.2
|
--
|
By Laws of registrant, as amended.(AA).
|
|
4.1
|
--
|
Form of Certificate for shares of Common Stock of registrant.(A - Exhibit 4(a)).
|
|
10.1
|
--
|
2009 Long-Term Incentive Plan (as amended and restated as of April 28, 2011).(F).
|
|
10.2
|
--
|
Directors’ Compensation Program.(Q).
|
|
10.4
|
--
|
William H. Haskel Offer of Employment Letter dated June 3, 2011.(Z).
|
|
--
|
Form of Performance Share Agreement.(E).
|
||
10.7
|
--
|
Credit Agreement dated November 2, 2011 between Cambrex Corporation, the subsidiary borrowers party hereto, the subsidiary guarantors party hereto, the lenders party hereto and JP Morgan Chase Bank, N.A., as Administrative Agent.(R).
|
|
10.8
|
--
|
Settlement Agreement and Release and Environmental Escrow Agreement dated July 30, 2007 between Rutherford Chemicals LLC, Vertellus Specialties Holdings UK Ltd. (formerly Rutherford Chemicals UK Ltd.), Vertellus Specialties UK Ltd. (formerly Seal Sands Chemicals Ltd.), and Vertellus Specialties Holdings Corp. (formerly Rutherford Chemicals Holdings Corp.), and Cambrex Corporation, Nepera, Inc., CasChem Inc., Zeeland Chemicals, Inc., Nepcam, Inc., and Cambrex Ltd.(V).
|
|
10.9
|
--
|
Shawn P. Cavanagh Offer of Employment Letter.(X).
|
|
10.10
|
--
|
Supplemental Executive Retirement Plan Change of Control Amendment.(T).
|
|
10.11
|
--
|
Employment Agreement dated January 17, 2011 between the registrant and Shawn P. Cavanagh.(X).
|
|
10.12
|
--
|
1994 Stock Option Plan.(C).
|
|
10.13
|
--
|
1996 Performance Stock Option Plan.(G).
|
|
10.14
|
--
|
1998 Performance Stock Option Plan.(H).
|
|
10.15
|
--
|
2000 Employee Performance Stock Option Plan.(H).
|
|
10.16
|
--
|
Cambrex Corporation Savings Plan.(B).
|
|
10.17
|
--
|
Cambrex Corporation Supplemental Retirement Plan.(D).
|
|
10.18
|
--
|
Employment Agreement dated February 6, 2007 between the registrant and Gregory P. Sargen.(S).
|
|
10.19
|
--
|
Deferred Compensation Plan of Cambrex Corporation (as amended and restated as of March 1, 2001).(M).
|
|
10.20
|
--
|
Employment Agreement dated February 6, 2007 between the registrant and Paolo Russolo.(S).
|
|
10.21
|
--
|
2001 Performance Stock Option Plan.(I).
|
|
10.22
|
--
|
2003 Performance Stock Option Plan.(I).
|
|
10.23
|
--
|
2004 Performance Incentive Plan.(J).
|
|
10.24
|
--
|
Directors’ Common Stock Fee Payment Plan.(J).
|
|
10.25
|
--
|
2004 Incentive Plan.(L).
|
|
10.26
|
--
|
Administrative Consent Order dated September 16, 1985 of the New Jersey Department of Environmental Protection to Cosan Chemical Corporation.(A – Exhibit 10(q)).
|
10.28
|
--
|
Agreement to Lift Sales Restrictions on Certain Vested Options.(N).
|
|
10.29
|
--
|
Agreement to Accelerate Vesting of Certain Options.(O).
|
|
10.30
|
--
|
Form of Stock Option Agreement.(R).
|
|
10.31
|
--
|
Form of Performance Share Unit Agreement.(CC).
|
|
10.32
|
--
|
Employment Agreement with William M. Haskel.(Z).
|
|
10.33
|
--
|
Executive Cash Incentive Plan.(BB).
|
|
10.34
|
--
|
2012 Equity Incentive Plan for Non-Employee Directors.(BB).
|
|
--
|
Subsidiaries of registrant.(E).
|
||
--
|
Consent of BDO USA, LLP to the incorporation by reference of its report herein in Registration Statement Nos. 333-166260,
333-57404, 333-22017, 33-21374, 33-81782, 333-113612, 333-113613, 333-129473,
333-136529, 333-174124 and 333-181053 on Form S-8 of the registrant.(E).
|
||
--
|
CEO Certification pursuant to Rule 13a – 14(a) and Rule 15d – 14(a) of the Securities Exchange Act, as amended.(E).
|
||
--
|
CFO Certification pursuant to Rule 13a – 14(a) and Rule 15d – 14(a) of the Securities Exchange Act, as amended.(E).
|
||
--
|
CEO and CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(K).
|
||
101.INS
|
--
|
XBRL Instance Document.(Y).
|
|
101.SCH
|
--
|
XBRL Taxonomy Extension Schema.(Y).
|
|
101.CAL
|
--
|
XBRL Taxonomy Extension Calculation Linkbase.(Y).
|
|
101.DEF
|
--
|
XBRL Taxonomy Extension Definition Linkbase.(Y).
|
|
101.LAB
|
--
|
XBRL Taxonomy Extension Label Linkbase.(Y).
|
|
101.PRE
|
--
|
XBRL Taxonomy Extension Presentation Linkbase.(Y).
|
(A)
|
Incorporated by reference to the indicated Exhibit to registrant's Registration Statement on Form S-1 (Registration No. 33-16419).
|
(B)
|
Incorporated by reference to registrant's Registration Statement on Form S-8 (Registration No. 33-81780) dated July 20, 1994.
|
(C)
|
Incorporated by reference to registrant's Registration Statement on Form S-8 (Registration No. 33-81782) dated July 20, 1994.
|
(D)
|
Incorporated by reference to the registrant's Annual Report on Form 10-K for 1994.
|
(E)
|
Filed herewith.
|
(F)
|
Incorporated by reference to the registrant’s Quarterly Report on Form 10-Q for the period ending March 31, 2011.
|
(G)
|
Incorporated by reference to registrant’s Registration Statement on Form S-8 (Registration No. 333-22017) dated February 19, 1997.
|
(H)
|
Incorporated by reference to registrant’s Registration Statement on Form S-8 (Registration No. 333-57404) dated March 22, 2001.
|
(I)
|
Incorporated by reference to registrant’s Registration Statement on Form S-8 (Registration No. 333-113612) dated March 15, 2004.
|
(J)
|
Incorporated by reference to registrant’s Registration Statement on Form S-8 (Registration No. 333-113613) dated March 15, 2004.
|
(K)
|
Furnished herewith.
|
(L)
|
Incorporated by reference to registrant’s Registration Statement on Form S-8 (Registration No. 333-129473) dated November 4, 2005.
|
(M)
|
Incorporated by reference to registrant’s Annual Report on Form 10-K for year end 2005 filed May 26, 2006.
|
(N)
|
Incorporated by reference to registrant’s Current Report on Form 8-K dated November 7, 2006.
|
(O)
|
Incorporated by reference to registrant’s Current Report on Form 8-K dated June 7, 2005.
|
(P)
|
Incorporated by reference to registrant’s Current Report on Form 8-K filed October 24, 2006.
|
(Q)
|
Incorporated by reference to registrant’s Annual Report on Form 10-K filed February 11, 2010.
|
(R)
|
Incorporated by reference to registrant’s Quarterly Report on Form 10-Q for the period ending September 30, 2011.
|
(S)
|
Incorporated by reference to registrant’s Annual Report on Form 10-K for year end 2006 filed on March 15, 2007.
|
(T)
|
Incorporated by reference to registrant’s Quarterly Report on Form 10-Q for the period ending June 30, 2008.
|
(U)
|
Incorporated by reference to the registrant’s Current Report on Form 8-K dated November 10, 2003.
|
(V)
|
Incorporated by reference to registrant’s Quarterly Report on Form 10-Q for the period ending September 30, 2007.
|
(W)
|
Incorporated by reference to the registrant’s Current Report on Form 8-K dated November 4, 2010.
|
(X)
|
Incorporated by reference to the registrant’s Current Report on Form 8-K dated January 13, 2011.
|
(Y)
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise not subject to liability.
|
(Z)
|
Incorporated by reference to the registrant’s Current Report on Form 8-K dated June 24, 2011.
|
(AA)
|
Incorporated by reference to the registrant’s Current Report on Form 8-K dated April 30, 2012.
|
(BB)
|
Incorporated by reference to the registrant’s Quarterly Report on Form 10-Q for the period ending March 31, 2012.
|
(CC)
|
Incorporated by reference to the registrant’s Quarterly Report on Form 10-Q for the period ending June 30, 2012.
|
|
1.
|
Award
. The Participant has been granted an Award consisting of ________ Revenue-Related Performance Shares and ________ EBITDA-Related Performance Shares (together, the “Performance Shares”). Each Performance Share represents a conditional right to receive shares of Common Stock as described herein.
|
|
2.
|
Certain Definitions
. For purposes of this Agreement, the following terms will have the meanings set forth below:
|
|
3.
|
Number of Shares Payable; Time of Payment
. The number of shares of Common Stock payable, if any, under the Award shall be equal to the product of (i) the number of Performance Shares earned (as determined under Section 4), and (ii) the Vested Percentage. The number of shares of Common Stock payable under
|
|
4.
|
Performance Shares Earned
.
|
|
5.
|
Vesting
.
|
|
6.
|
Forfeiture
. If, prior to the Vesting Date, the Participant’s employment with the Company and its Affiliates is terminated other than in a Qualifying Termination of Employment, all rights of the Participant in respect of the Award shall terminate immediately in their entirety and the Participant shall not be entitled to any payment hereunder.
|
|
7.
|
Administration
. Any interpretation of the Agreement by the Committee (or its delegate) and any decision made by it (including, without limitation, interpretations and decisions regarding determinations of the Peer Index, Three-Year Revenue Growth and Three-Year EBITDA Growth) during the Performance Period or with respect to the Agreement, is final and binding.
|
|
8.
|
Plan Governs
. This Agreement is subject to the terms and provisions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the provisions of this Agreement and of the Plan, the provisions of the Plan shall govern.
|
|
9.
|
No Liability
. By entering into this Agreement, the Participant agrees that no member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or this Agreement.
|
|
10.
|
Withholding
. All payments, if any, in respect of the Award shall be subject to and reduced by such tax and other withholdings as the Committee determines to be required, which may be satisfied, if the Committee so determines, through the withholding of shares deliverable under this Award.
|
|
11.
|
Nature of Payments
. The Participant acknowledges and agrees that the Award and any payment thereunder are not to be taken into account in determining (i) any pension, retirement, profit-sharing, bonus, life insurance or other benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company, or (ii) any severance or other amounts payable under any other agreement between the Company and the Participant, except as required by law or as may be provided under the terms of such plans or as determined by the Board.
|
|
12.
|
Representations of the Participant
. The Participant hereby represents to the Company that the Participant has read and fully understands the provisions of this Agreement and the Plan and his or her decision to participate in the Plan is completely voluntary. Further, the Participant acknowledges that the Participant is relying solely on his or her own advisors with respect to the tax consequences of this award.
|
|
13.
|
Notices
. All notices or communications under this Agreement shall be in writing, addressed as follows:
|
|
14.
|
Assignment; Binding Agreement
. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of the Participant and the assigns and successors of the Company, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by the Participant;
provided
,
that the Company may assign this Agreement to any successor (including a successor to its business).
|
|
15.
|
Entire Agreement; Amendment; Termination
. This Agreement represents the entire agreement of the parties, and supersedes all prior agreements between the parties, with respect to the subject matter hereof.
|
|
16.
|
Governing Law
. This Agreement and its validity, interpretation, performance and enforcement shall be governed by the laws of the State of Delaware other than the conflict of laws provisions of such laws.
|
|
17.
|
Severability
. Whenever possible, each provision in this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended to accomplish the objectives of the provision as originally written to the fullest extent permitted by law and (b) all other provisions of this Agreement shall remain in full force and effect.
|
|
18.
|
No Right to Continued Employment or Participation; Effect on Other Plans
. This Agreement shall not confer upon the Participant any right with respect to continued employment by the Company or its Affiliates or continued participation
under the Plan, nor shall it interfere in any way with the right of the Company or its Affiliates to terminate the Participant’s employment at any time.
|
|
19.
|
Code Section 409A
. The compensation arrangements set forth in this Agreement are intended to satisfy the requirements of Section 409A of the Code (“Section 409A”) to the extent applicable. Notwithstanding the foregoing, in no event shall the Company, any of its Affiliates, or any director or employee thereof have any liability to the Participant or to any other person claiming rights under this Agreement relating to the failure or alleged failure of any payment or benefit under this Agreement to comply with, or be exempt from, the requirements of Section 409A.
|
|
20.
|
Further Assurances
. The Participant agrees, upon demand of the Company or the Committee, to do all acts and execute, deliver and perform all additional documents, instruments and agreements that may be reasonably required by the Company or the Committee, as the case may be, to implement the provisions and purposes of this Agreement and the Plan.
|
|
21.
|
Claw Back
. This agreement shall be subject to any clawback policy established by the Company and in effect as required by Section 10D of the Exchange Act.
|
CAMBREX CORPORATION
|
|||
PARTICIPANT
|
|||
Revenue-Related
Performance Shares
|
||||||||
Three-Year
Revenue
Growth
Percentile
|
Percent of
Revenue-
Related
Performance
Shares
Earned
|
|||||||
25 | % | 50 | % | |||||
30 | % | 60 | % | |||||
35 | % | 70 | % | |||||
40 | % | 80 | % | |||||
45 | % | 90 | % | |||||
TARGET
|
50 | % | 100 | % | ||||
55 | % | 120 | % | |||||
60 | % | 140 | % | |||||
65 | % | 160 | % | |||||
70 | % | 180 | % | |||||
75 | % | 200 | % |
EBITDA-Related
Performance Shares
|
||||||||
Three-Year
EBITDA Growth
Percentile
|
Percent of
EBITDA-
Related
Performance
Shares
Earned
|
|||||||
25 | % | 50 | % | |||||
30 | % | 60 | % | |||||
35 | % | 70 | % | |||||
40 | % | 80 | % | |||||
45 | % | 90 | % | |||||
TARGET
|
50 | % | 100 | % | ||||
55 | % | 120 | % | |||||
60 | % | 140 | % | |||||
65 | % | 160 | % | |||||
70 | % | 180 | % | |||||
75 | % | 200 | % |
Subsidiary
|
Incorporated in:
|
Cambrex Charles City, Inc.
|
Iowa
|
Cambrex Profarmaco Milano S.r.l.
|
Italy
|
Cambrex Karlskoga AB
|
Sweden
|
AS Cambrex Tallinn
|
Estonia
|
Cambrex IEP GmbH
|
Germany
|
1.
|
I have reviewed this annual report on Form 10-K of Cambrex Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/
Steven M. Klosk
|
|
|
Steven M. Klosk
|
||
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Cambrex Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d-15(f))for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Gregory P. Sargen
|
||
Gregory P. Sargen
|
||
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Steven M. Klosk
|
||
Steven M. Klosk
|
||
President and Chief Executive Officer
|
||
/s/ Gregory P. Sargen
|
||
Gregory P. Sargen
|
||
Executive Vice President and Chief Financial Officer
|