KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in select markets, today announced financial results for the third fiscal quarter ended April 30, 2012.
2012 Fiscal Third Quarter Highlights
- Net sales were $66.6 million, up 7.6% versus $61.9 million in the third quarter of fiscal 2011, primarily reflecting the impact of recently implemented pricing actions in both the Electronic Chemicals and Wood Treating chemicals businesses.
- Operating income increased 65.9% to $6.9 million from $4.1 million in the third fiscal quarter of 2011. Operating margins were 10.3% in the third quarter of 2012, up from 6.7% in the prior year period.
- Diluted earnings per share were $0.34 per share versus $0.23 per share reported in last year’s third fiscal quarter.
- Net cash provided by operating activities was $8.5 million, compared to net cash used of $459,000 in the same period a year ago.
- Total long-term debt was $28 million, down from $41 million at the end of the preceding quarter and $49.3 million at the end of fiscal 2011. The Company used the proceeds received on the sale of its Animal Health business to repay $10.0 million of the balance during the third quarter of fiscal year 2012.
Neal Butler, President and CEO of KMG, commented, “Our third quarter earnings were up substantially from the preceding quarter and from the prior-year period, reflecting the benefits of our Electronic Chemicals plant consolidation and integration efforts. Targeted pricing actions in our Electronic Chemicals and Wood Treating business segments also benefited results, and enabled us to recoup higher raw materials costs. We ended the quarter in a strong financial position with $5.2 million in cash and a balance sheet with substantial borrowing capacity to fund further growth.”