Aceto Corp. (NASDAQ:ACET) Q3 2017 Earnings Conference Call - Preliminary Transcript

Nov 03, 2017 • 09:00 am ET


Aceto Corp. (NASDAQ:ACET) Q3 2017 Earnings Conference Call - Preliminary Transcript


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Good morning and welcome to the Aceto First Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jody Burfening. Please go ahead.

Jody Burfening

Thank you, Anita and good morning everyone and welcome to Aceto Corporation's first quarter fiscal 2018 earnings conference call. With me today and providing on this call are Bill Kennally, President and CEO; and Doug Roth, Chief Financial Officer. Walt Kaczmarek, Aceto's Chief Operating Officer is also with us today to participate in the Q&A session.

The company issued its first quarter earnings press release yesterday after the market closed. For those of you who have not yet seen the release, a copy is available in the Investor Relations section of the company's website at Before starting the call, I'd like to remind you that today's call will contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 that can be identified by words such as believe, expect, anticipate, plans, projects, seeks, and similar expressions that involve numerous risks and uncertainties. The company's actual results could differ materially from those anticipated or implied by these forward-looking statements as a result of certain factors that are set forth in the company's filings with the Securities and Exchange Commission.

Also on today's call, management will be referring to certain non-GAAP financial measures. These measures Aceto's adjusted net income and Aceto's adjusted earnings per share are defined as net income excluding amortization of intangibles, debt extinguishment, and amortization of debt discounts and debt issuance cost, cost related to transactions and the impact of accounting standards update 2016-09. These non-GAAP measures allow investors to compare results of operations in the current period to prior period results based on the company's fundamental performance and analyze operating trends of the business.

To start today's call Al Eilender, Aceto's Chairman is going to make a few introductory remarks. Good morning Al.

Albert L. Eilender

Thank you Jody. Good morning everyone and thank you for joining us this morning. My purpose today is to act as a bridge from the old to the new. As the company's starting in 2009 we have embarked upon a transition to one focused on the pharmaceutical industry and more specifically on finished dosage generic drugs. In the last two years a number of external forces have buffeted our generic drug business unit Rising. The consolidation within the distribution channels coupled with intense competitive pricing pressures have been historically unprecedented. If these external events were starting to come into focus we took an important strategic step through the acquisition of Citron and Lucid assets to increase our generic drug commercial offerings, to increase our future pipeline of products, and to partner with a reputable manufacturer of significant scale.

The Board's thinking about the company, its strategic direction, and the importance of scale remains unchanged. Over the course of the past year we've seen shareholder value at many firms