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Cambrex: Executive Vice President & Cfo Phone:

The following excerpt is from the company's SEC filing.






increased 14% (19% excluding foreign exchange) and


increased 31% vs. prior year quarter

Profit guidance increased for 2015

Conference call at

a.m. ET

on November

, 2015 -

East Rutherford, NJ –

November 3, 2015 – Cambrex Corporation (NYSE: CBM) reports results for the third quarter ended September 30, 2015.


Sales increased 14% compared to the third quarte r of 2014, and increased 19% excluding foreign exchange impact.

EBITDA increased 31% to $23.7 million compared to the third quarter of last year.

GAAP diluted EPS from continuing operations was $0.36 versus $0.28 in the third quarter last year and Adjusted diluted EPS was $0.40 compared to $0.28 in the same quarter last year.

Net cash improved $44.7 million through the first nine months of 2015 to $30.2 million compared to debt, net of cash, of $14.5 million at December 31, 2014.

The Company increased guidance for full year 2015 Adjusted EBITDA to be $122 million - $126 million, a 49% to 54% increase over 2014. Adjusted diluted EPS from continuing operations is now expected to be $2.11 - $2.19 per share, a 59% to 65% increase over 2014. See Financial Expectations section below.

“We are very pleased with our third quarter and year to date results and we also expect a strong fourth quarter to close out 2015. Expectations of continued strong profit margins led us to increase full year expectations for Adjusted EBITDA by $4 million at the midpoint,” commented Steven M. Klosk, President and Chief Executive Officer of Cambrex. “All of our product groups continue to perform well. Consistent with the first half of the year, we saw strong demand for certain larger products within our Innovator and Controlled Substances product categories. We now expect full year sales of Controlled Substances to increase by low double digit percentages compared to last year, versus our previous expectation of a high single digit increase. We are also pleased that we have renewed a five year supply agreement with Gilead for our largest product.

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073

Phone 201.804.3000 | Fax 201.804.9852 |

“The expansion project at our Charles City, Iowa facility remains on schedule and we look forward to bringing this significant additional capacity on line towards the end of the first quarter of 2016. We continue to make additional facility upgrades and capacity expansions at our Swedish and Italian sites to meet anticipated demand for 2016 and beyond.”

Basis of Reporting

The Company has provided a reconciliation of GAAP amounts to adjusted (i.e. Non-GAAP) amounts at the end of this press release. Cambrex management believes that the adjusted amounts provide useful information to investors due to the magnitude and nature of certain expenses recorded in the GAAP amounts.

Quarter 201

Operating Results

Continuing Operations

Sales were $92.4 million, compared to $81.1 million in the same period last year, representing a 14% increase. Foreign exchange unfavorably impacted reported sales growth by 5%. The sales increase primarily reflects higher volumes of certain branded active pharmaceutical ingredients (APIs) sold to innovator customers, higher volumes of controlled substances and to a lesser extent, higher pricing on certain products.

Gross margins increased to 39% from 35% compared to the same period last year. Foreign currency favorably impacted margins four percentage points in the third quarter of 2015. Excluding foreign currency, gross margins were impacted by higher production costs, mostly offset by higher plant utilization.

Selling, general and administrative expenses were $14.0 million compared to $12.5 million in the same period last year. The increase was mainly due to higher sales and marketing expenses, personnel costs, costs related to the implementation of a new enterprise resource planning (ERP) system, recruiting, and pension expense. This increase was partially offset by a favorable impact from foreign exchange.

Operating profit increased to $18.0 million from $12.0 million in the same period last year. The increase in operating profit was primarily the result of higher gross profit, partially offset by higher operating expenses. EBITDA was $23.7 million compared to $18.1 million in the same period last year.

Income tax expense was $5.3 million resulting in an effective tax rate of 31%, compared to $2.5 million in the same period last year. Excluding the impact of the reversal of a deferred tax valuation allowance, the effective tax rate for the same period last year was 29%. The slight increase was mainly due to the geographic mix of income.

Income from continuing operations was $11.9 million or $0.36 per share compared to $8.9 million or $0.28 per share in the same period last year. Adjusted income from continuing operations was $13.1 million or...