HOUSTON, May 23, 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 third fiscal quarter ended April 30, 2002.
Net income for the third fiscal 2002 quarter was $0.799 million or $0.11 per diluted share, up from $.211 million or $0.03 per diluted share reported for the same quarter in 2001. Fiscal third quarter net sales were $8.8 million, up from $8.1 million in the year earlier quarter.
At the end of the third fiscal 2002 quarter, KMG had total assets of $28.1 million and long-term debt of $0.937 million. Long-term debt to total assets was 3.3 percent on April 30, 2002. Cash and cash equivalents at that date totaled approximately $2.5 million.
David Hatcher, chairman and president of KMG Chemicals, said, "Our fiscal third quarter results came in significantly ahead of our internal annual plan, and slightly ahead of the earnings guidance we gave last quarter. Although dryer-than-normal weather in the Southern cotton states is adversely impacting our herbicide sales, we believe that fiscal year 2002 results should exceed last year's. This is the result of three primary factors:
-- We are experiencing improved market conditions for certain wood
treating chemical products.
-- We continue to control our costs, as we strive to be the low cost
producer in the markets we serve.
-- The MSMA plant we acquired in fiscal 2001 was successfully
relocated to our Matamoros, Mexico facility in December 2001 and
produces according to expectation, which has favorably impacted
our profitability."
The company anticipates that fiscal 2002 earnings will exceed fiscal 2001 earnings of $0.35 per share. The current earnings per share estimate for fiscal year 2002 is in the range of $0.36 to $0.39. Accordingly, fourth quarter earnings per share are expected to be in the $0.15 to $0.18 range.
The company is entering the peak selling season for MSMA (Bueno(r) 6). This coincides with the growing season for cotton in the Southern United States. Fiscal 2002 earnings will be skewed toward the last quarter of the fiscal year as a result of this seasonality.
Hatcher concluded, "We are currently working on several acquisition opportunities. I am very pleased with the pace of our acquisition program, and with the quality of attractive opportunities we are pursuing."
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.
KMG Chemicals, Inc.
Selected Financial Data
(In thousands, except share data)
(UNAUDITED)
Three Months Ended Nine Months Ended
April 30, April 30,
----------------- ------------------
2002 2001 2002 2001
------ ------ ------- -------
Net sales $8,783 $8,098 $24,452 $24,593
Gross profit 3,326 2,502 8,515 8,587
Pre-tax income 1,289 341 2,594 2,854
Net income 799 211 1,608 1,769
EBITDA 1,751 667 3,678 3,652
Earnings per
diluted share (1) $0.11 $0.03 $0.21 $0.23
Weighted average diluted
shares outstanding (1) 7,550,254 7,543,089 7,547,622 7,593,961
Working capital 7,260 7,501 7,260 7,501
Total assets 28,128 27,770 28,128 27,770
Long-term debt 937 2,671 937 2,671
Shareholders' equity 20,624 18,194 20,624 18,194
(1) Restated for March 2001 stock dividend