Rich Thomson's questions to Adicet Bio (ACET) leadership • Q1 2019
Question
Rich Thomson of VaRde asked for clarification on the timeframe for the potential gross margin impact from a 25% tariff, the portion of Performance Chemicals growth from a competitor's disruption, the reason for the working capital increase given the drop in Human Health revenue, and an update on the strategic alternatives timeline.
Answer
CFO Becky Roof clarified the potential $850,000 to $3.7 million tariff impact would affect the second half of fiscal 2019 if tariffs rise to 25% on January 1. President and CEO Bill Kennally estimated that a competitor's supply disruption accounted for about 25% of the growth in Performance Chemicals. CFO Becky Roof explained that the working capital usage was driven by an increase in gross sales and related accounts receivable at Rising, even as net sales declined. President and CEO Bill Kennally declined to comment on the timeline for the strategic alternatives process.