This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

KMG Chemicals Reports Fourth Quarter And Full Year 2013 Financial Results

KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals in select markets, today announced financial results for its fourth fiscal quarter and fiscal year ended July 31, 2013.

2013 Fourth Fiscal Quarter Summary

  • Net sales were $81.1 million, up 19.9% from the comparable quarter in fiscal 2012. Fourth quarter sales included two months of contribution from the acquisition of OM Group’s Ultra Pure Chemicals (UPC) business.
  • Operating income was $2.5 million, including the impact of $660,000 of UPC acquisition expenses, $577,000 of UPC integration expenses and $1.5 million of CEO transition expenses. Excluding these expenses, fourth quarter operating income was $5.3 million.
  • GAAP diluted earnings per share was $0.06 vs. $0.33 per share reported in last year’s fourth fiscal quarter.
  • Adjusted (non-GAAP) diluted earnings per share, which excludes acquisition, integration and CEO transition expenses, was $0.28. In addition to the items previously identified, fourth quarter EPS was also 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 expenses associated with the UPC acquisition. The tax impact was included in the adjustment for acquisition-related expenses.

2013 Fiscal Year Summary

  • Net sales were $263.3 million, a 3.4% decrease from $272.7 million in fiscal 2012. Despite an increase in net sales from the UPC acquisition, net sales were 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.
  • Operating income was $17.2 million vs. $25.4 million in fiscal 2012. Fiscal 2013 operating income was impacted by $2.1 million of UPC acquisition expenses, $577,000 of UPC integration expenses and $1.5 million of CEO transition expenses. Excluding these expenses, operating income was $21.3 million.
  • GAAP diluted earnings per share was $0.81 vs. $1.20 reported in fiscal 2012.
  • Adjusted diluted earnings per share, which exclude acquisition, integration and CEO transition expenses, including the aforementioned tax effect, was $1.11.
  • Net cash provided by operating activities was $20.3 million vs. $25.2 million in fiscal 2012.

“Our fiscal 2013 financial results did not meet our expectations, reflecting challenging market conditions in both our Electronic Chemicals and Wood Treating Chemicals businesses. We also incurred significant expenses related to the acquisition of OM Group’s UPC subsidiaries and KMG’s change in leadership,” said Chris Fraser, Chairman, President and CEO of KMG.

1 of 6

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs