HOUSTON, Nov. 26, 2002 (PRIMEZONE) -- KMG Chemicals, Inc. (Nasdaq:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2003 quarter ended October 31, 2002.
For the first fiscal 2003 quarter, net income was $0.48 million or $0.06 per diluted share, up from $0.42 million or $0.06 per diluted share reported for the same quarter in fiscal 2002. Fiscal first quarter net sales were $8.1 million or essentially flat with the year earlier period.
At the end of the first fiscal 2003 quarter, KMG had total assets of $27.3 million and long-term debt of $0.24 million. The company had approximately $3.0 million of cash and cash equivalents at October 31, 2002.
David Hatcher, chairman and president of KMG Chemicals, said: "A key part of the KMG strategy is that we serve stable niche markets. Even in this challenging economic environment, our core markets continue to exhibit relative stability. Cash flow from operations remains strong."
"Agricultural chemical sales are seasonal, which causes our earnings to be skewed toward the second half of the fiscal year. Our current earnings per share estimate for the second quarter of fiscal 2003 is in the range of $.04 to $.05."
"We are continuing to work hard at identifying and closing acquisitions that would be accretive to KMG's profitability," continued Hatcher. "Rest assured that our management team is fully focused on building the company. KMG's strong balance sheet, healthy cash position and experienced employee base are proving to be a competitive advantage in this business environment."
KMG Chemicals, Inc.
Selected Financial Data
(UNAUDITED, and in thousands, except share data)
Three Months Ended
October 31,
2002 2001
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Net sales $ 8,054 $ 8,097
Gross profit 2,716 2,636
Pre-tax income 731 683
Net income 483 423
EBITDA 1,081 985
Earnings per diluted share $ 0.06 $ 0.06
Weighted average diluted shares outstanding 7,551 7,545
Working capital 7,806 6,082
Total assets 27,296 25,781
Long-term debt 245 1,369
Shareholders' equity 21,804 19,461
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KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc., is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's Web site at www.kmgchemicals.com.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.