KMG Chemicals, Inc. (NASDAQ GS: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced financial results for the fiscal 2012 second quarter and six months ended January 31, 2012.
Net sales in the fiscal 2012 second quarter increased 7.3% to $69.7 million from $64.9 million in the second quarter of fiscal 2011. Operating income rose 6.8% to $5.1 million from $4.8 million in last year’s fiscal second quarter. KMG recorded net income of $2.5 million, or $0.21 per diluted share, for the second quarter of fiscal 2012, compared to net income of $2.4 million, or $0.21 per diluted share, in the same period last year. Net income in the fiscal 2012 second quarter included previously announced non-recurring pre-tax expenses of $1.5 million, or $0.08 per diluted share, which included a loss from discontinued operations at KMG’s Matamoros facility of $0.3 million, or $0.02 per diluted share. Net income in the fiscal 2011 second quarter included some temporarily higher manufacturing and distribution costs in the Electronic Chemicals segment as we consolidated our production from four manufacturing sites to two primary sites.
Neal Butler, President and CEO of KMG, commented, “Sales at our Electronic Chemicals and Wood Treating Chemicals business segments increased during the second quarter compared to the prior year. The benefits of our Electronic Chemicals plant consolidation and integration activities continued to accrue, as evidenced by a decline in distribution expenses and a rise in segment operating profits despite the impact of non-recurring charges. We ended the quarter in a strong financial position, with $1.9 million in cash, net cash provided by operating activities of $14.5 million, and an improved debt profile. As previously announced, our Board of Directors declared a 20% increase in the Company’s quarterly cash dividend to $0.03 per share.”
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