Chase Corporation - CCF STOCK NEWS

Chase Corporation (NYSE American: CCF) reported a 27.5% year-over-year revenue increase for the second fiscal quarter ending February 28, 2023, reaching $94.3 million. Net income stood at $8.5 million ($0.89 per diluted share), down from $9.1 million ($0.96 per diluted share) due to $3.1 million in additional amortization expenses linked to the NuCera business. The gross margin improved slightly to 36.8%. Furthermore, free cash flow surged to $10 million, a significant increase from $1.6 million a year earlier. Despite challenges from customer de-stocking and seasonal factors affecting sales, especially in Asia, the company noted success in its inventory reduction strategy and ongoing ERP upgrade. The financial performance underscores Chase's resilience and focus on growth, particularly through its NuCera acquisition.

Chase Corporation (NYSE: CCF) reported a 37.2% increase in revenue to $103 million for Q1 FY23, driven by the acquisition of NuCera Solutions. Gross margin fell to 34.9% due to a $2.2 million purchase accounting adjustment. Net income decreased to $6.7 million or $0.71 per share, impacted by amortization costs. Free cash flow was $4.7 million. The company aims to optimize inventory and continues to invest in operational upgrades despite macroeconomic challenges.

Chase Corporation (CCF) reported a 12.7% increase in Q4 FY22 revenue, reaching $88 million, driven by strategic price increases amid inflation. Gross margin improved to 37.8% from 36.8% in H1 FY22, despite cost pressures. Net income slightly decreased to $10.3 million ($1.08 per diluted share). The company declared a $1.00 per share dividend for shareholders. Notable increases were observed in the Adhesives and Industrial Tapes segments, while revenue in Corrosion Protection dipped by 5% due to reduced demand in the Middle East and Asia.

Chase Corporation (NYSE: CCF) completed the acquisition of NuCera Solutions for $250 million on September 1, 2022. This strategic move aims to enhance Chase's portfolio of specialty polymers and polymerization technologies, expanding its market reach into high-growth sectors such as personal care and coatings. The acquisition is expected to be accretive to earnings in the first year and align with Chase's growth strategy. The purchase was funded through existing credit facilities, maintaining modest leverage of about 1.2x post-acquisition.

An affiliate of SK Capital Partners announced the sale of NuCera Solutions to Chase Corporation (NYSE American: CCF) for $250 million, excluding acquisition-related costs. The deal signifies a strategic transition for NuCera, which specializes in specialty polymers and polymerization technologies. Under SK Capital's ownership, NuCera established itself as a market leader through a strong leadership team and global commercial strategy, contributing to its growth. The acquisition aligns with Chase Corporation's focus on protective materials for high-reliability applications, enhancing its capabilities in the specialty chemicals sector.