Summary of American Pacific (APFC) Q4/2012 Earnings Conference Call December 13, 2012

American Pacific is divesting its aerospace propulsion business, which focused on liquid propulsion thrusters.  It is instead focusing on its chemical business, and particularly focusing on pharmaceuticals. The divestiture of the propulsion business allowed American Pacific to reduce debt and obtain a lower interest rate on remaining debt. 

American Pacific's chemical business performed well in the second half of the year and beat the company's expectations.  Revenues increased 25 percent in 2012, and 62 percent of the revenues were in the second half of the year.   Margins increased to 18.5 percent.

American Pacific signed a large contract concerning its major central nervous system product and another contract to produce an antiviral product that is in late Phase 3 trials.  The company believes it is likely the FDA will approve the product.  The company also has ongoing therapies for cancer, HIV, and influenza, and is developing additional therapies for hepatitis.

American Pacific is also exploring use of chemicals for high end communication applications and is seeing momentum in that area.

In the specialty chemical business, the Department of Defense is the primary customer for ammonium perchlorate for solid rockets.   The NASA space exploration program has also resulted in orders the chemical for 2013 and 2014 from ATK, one of American Pacific's customers. 

The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063801-american-pacific-s-ceo-discusses-f4q-2012-results-earnings-call-transcript

Copyright 2012 Jaygo's Earnings Conference Call Summaries


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