This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

KMG Provides Preliminary Fourth Quarter And Fiscal 2013 Financial Results And Reschedules Fiscal Fourth Quarter Earnings Release And Conference Call

KMG Chemicals, Inc. (NYSE:KMG), a global provider of specialty chemicals in select markets, today announced that it will delay the full release of its fiscal fourth quarter and fiscal year 2013 financial results, and delay the conference call originally scheduled for Monday, October 14, due to a need for additional time to fully and accurately address the complexities and accounting requirements arising from the acquisition of OM Group’s Ultra Pure Chemicals (UPC) business. The earnings announcement and call are now scheduled to take place on Thursday, October 24 at 10:00 a.m. ET.

At this time, however, KMG is providing the investment community with the following preliminary unaudited financial information for the fourth quarter and full year ended July 31, 2013:

  • Fourth quarter net sales are expected to be $81.1 million, up 19.9% from the comparable quarter in fiscal 2012. Fourth quarter sales include two months of contribution from the acquisition of the UPC business.
  • Fourth quarter operating income is expected to be approximately $2.5 million vs. $6.7 million in the same period a year ago. Fourth quarter operating income includes $660,000 of UPC acquisition expenses, $577,000 of integration expenses and $1.5 million of CEO transition expenses. Excluding these expenses, fourth quarter operating income would be approximately $5.3 million.
  • Fourth quarter GAAP diluted earnings per share is expected to be $0.06 vs. $0.33 per share reported in last year’s fiscal fourth quarter.
  • Adjusted (non-GAAP) fourth quarter diluted earnings per share, which excludes UPC acquisition, integration and CEO transition expenses, is expected to be $0.28. In addition to the items previously identified, fourth quarter earnings is also anticipated to be adversely impacted by an increase to tax expense of $682,000 associated with the requirement to capitalize for tax purposes all of the previously incurred transaction expenses associated with the UPC acquisition.
  • Fiscal 2013 net sales are expected to be $263 million, a 3.4% decrease from $273 million in fiscal 2012. Despite an increase in net sales from the UPC acquisition, net sales are down in the aggregate because of weak demand in electronic chemicals in North America beginning in the second quarter of the fiscal year, and because of reduced sales of creosote.
  • Fiscal 2013 operating income is expected to be approximately $17.2 million vs. $25.4 million in fiscal 2012. Fiscal 2013 operating income is impacted by $2.1 million of acquisition expense, $577,000 of integration expense, and $1.5 million of CEO transition expenses. Excluding these expenses, operating income would be $21.3 million.
  • Fiscal 2013 GAAP diluted earnings per share is expected to be $0.81 vs. $1.20 reported in fiscal 2012.
  • Fiscal 2013 adjusted (non-GAAP) diluted earnings per share, which exclude acquisition, integration and CEO transition expenses, is expected to be $1.11.
     
Fourth Quarter Results
Dollars in thousands, except EPS Fiscal 2013 Fiscal 2012
(unaudited) As As
Adjusted Reported Reported
(non-GAAP) (GAAP) (GAAP)
 
Net Sales $81,087 $81,087 $67,607
Operating Income 5,278 2,525 6,695
Net Income 3,247 723 3,863
Diluted EPS $0.28 $0.06 $0.33
 
 
 
Full Year Results
Dollars in thousands, except EPS Fiscal 2013 Fiscal 2012
(unaudited)

As

As

Adjusted

Reported

Reported

(non-GAAP) (GAAP) (GAAP)
 
Net Sales $263,311 $263,311 $272,700
Operating Income 21,333 17,180 25,437
Net Income 12,808 9,348 13,825
Diluted EPS $1.11 $0.81 $1.20
 

Due to the recent close of the company’s UPC acquisition, and the complex accounting requirements arising from the transaction, KMG requires additional time to complete and file its Form 10-K for the fiscal year ended July 31, 2013. Given these circumstances, KMG will file a notice on Form 12b-25 with the Securities and Exchange Commission to report the delayed filing of its Form 10-K for the fiscal year 2013. KMG will file its Form 10-K within the 15-day extension allowed by Form 12b-25. KMG is not aware of any disagreements with its auditors regarding the company’s fiscal 2013 financial statements, and KMG has not discovered any material errors or omissions that would require restatement of prior financial information.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs