KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty
chemicals, today announced financial results for the fiscal 2015 third
quarter ended April 30, 2015.
2015 Third Quarter Financial Highlights
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Consolidated net sales were $74.0 million, a 12% decrease from last
year’s third quarter. Sales declined due to the divestiture of the
creosote business in January.
-
Adjusted EBITDA1 increased to $9.1 million, up 20% from
$7.6 million in last year’s third quarter.
-
Adjusted diluted earnings per share2 was $0.35 vs. $0.20
per share reported in the prior year’s third quarter.
-
GAAP EPS was $0.18 vs. $0.11 per share in the third quarter of fiscal
2014.
-
Long-term debt balance at quarter end was $35 million, down from $39
million in the second quarter of fiscal 2015. During the third
quarter, the company used cash generated from operations to reduce
debt.
Chris Fraser, KMG chairman and chief executive officer, said, “KMG had
another solid quarter, reflecting continued strength in our North
American Electronic Chemicals business and improved efficiency from the
streamlining of our manufacturing operations, along with solid
performance from our penta business. Adjusted EBITDA improved 20% from
the same period last year, representing the fifth consecutive quarter of
double-digit growth on a year-over-year basis.
Mr. Fraser concluded, “We’re excited about our recent acquisition of
Val-Tex, which provides KMG with an attractive new growth platform in
the profitable and established market for industrial valve lubricants
and sealants. As previously indicated, Val-Tex will be accretive to our
fourth fiscal quarter adjusted EBITDA and adjusted diluted earnings per
share. Consequently, we have increased our fiscal 2015 adjusted EBITDA
guidance range to $35-37 million, from $34-36 million previously.”
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Third Quarter Results
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Dollars in thousands, except EPS
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Fiscal 2015
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Fiscal 2014
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(unaudited)
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Adjusted
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As Reported
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Adjusted
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As Reported
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(non-GAAP)
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(GAAP)
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(non-GAAP)
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(GAAP)
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Net Sales
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$
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73,964
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$
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73,964
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$
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84,437
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$
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84,437
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Operating Income
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6,299
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4,761
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4,333
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2,914
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Operating Margin
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8.5
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%
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6.4
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%
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5.1
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%
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3.5
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%
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Net Income
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4,099
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2,135
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2,388
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1,226
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Diluted EPS
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$
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0.35
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$
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0.18
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$
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0.20
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$
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0.11
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Business segment results
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Electronic Chemicals
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Third Quarter Results
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Dollars in thousands
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Fiscal 2015
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Fiscal 2014
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As Reported
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Adjusted
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As Reported
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(GAAP)
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(non-GAAP)
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(GAAP)
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Net Sales
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$ 66,388
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$ 61,542
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$ 61,542
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Operating Income
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6,644
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3,429
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3,175
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Operating Margin
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10.0%
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5.6%
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5.2%
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For the third fiscal quarter, the Electronic Chemicals segment reported:
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Sales of $66.4 million, up 7.9% from $61.5 million in the same period
a year ago. Excluding the impact of foreign currency, third quarter
fiscal 2015 sales were $70.5 million. The increase in reported sales
reflects higher sales volume for high purity process chemicals in
North America, partially offset by weakness in Europe.
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Adjusted EBITDA3 of $9.4 million, compared to $6.6 million
last year. Foreign currency translation negatively impacted third
quarter fiscal 2015 adjusted EBITDA by $400,000.
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GAAP operating income of $6.6 million vs. $3.2 million in the same
period of fiscal 2014. Operating income improved due to increased
sales volume, as well as benefits from the restructuring of our
electronic chemicals operations.
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Wood Treating Chemicals
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Third Quarter Results
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Dollars in thousands
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Fiscal 2015
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Fiscal 2014
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As Reported
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As Reported
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(GAAP)
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(GAAP)
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Net Sales
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$
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7,566
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$
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22,851
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Operating Income
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2,276
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2,092
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Operating Margin
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30.1
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%
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9.2
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%
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For the third fiscal quarter, the Wood Treating Chemicals segment
reported:
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Sales of $7.6 million, versus $22.9 million in the same period a year
ago. The sales decline reflects the divestiture of the creosote
product line in January.
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EBITDA4 of $2.3 million, up from $2.2 million last year.
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Operating income of $2.3 million, or 30.1% of sales, compared to $2.1
million, or 9.2% of sales, last year. The increase in operating income
was due to higher shipment volume and lower input costs in our Penta
business, and the margin improved primarily due to the absence of
creosote sales.
Outlook
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We narrow our fiscal 2015 consolidated net sales forecast to
approximately $320 million versus our prior forecast of $315-325
million. Relative to the prior year, fiscal 2015 sales reflect growth
in the Electronic Chemicals segment and the addition of Val-Tex, with
lower sales in the Wood Treating Chemicals segment due to the
divestiture of the creosote product line.
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We increase our fiscal 2015 adjusted EBITDA forecast to $35-37
million, from $34-36 million previously. The increase in our adjusted
EBITDA forecast includes the addition of Val-Tex.
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Fiscal 2015 depreciation and amortization expense is forecast to be
approximately $14 million, excluding restructuring and realignment
charges.
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Fiscal 2015 capital expenditures are forecast to be approximately $16
million, unchanged from our prior forecast. Capital expenditures
include expenses related to our ERP system implementation, UPC
integration and asset investments to support increased shipment volume
in our Electronic Chemicals business.
Conference call
Date: Tuesday, June 9, 2015
Time: 5:00
p.m. ET
Dial in: 877-440-1760 or 678-509-7570
Conference
ID: 51067980
The conference call will be webcast live via the
“Investors” section of the Company’s website at http://kmgchemicals.com.
If you are unable to listen live, the conference call will be archived
on the KMG website. A telephone replay of the call will also be
available for one week, starting at 8:00 p.m. ET on June 9, 2015. To
access the call, dial 855-859-2056 or 404-537-3406 using Conference ID
51067980.
About KMG
KMG Chemicals, Inc., through its subsidiaries, produces and distributes
specialty chemicals to select markets. The Company grows by acquiring
and optimizing stable chemical product lines and businesses with
established production processes. For more information, visit the
Company's website at http://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.
1 Non-U.S. GAAP measure. See Table 1 for reconciliation.
2
Non-U.S. GAAP measure. See Table 2 for reconciliation.
3
Non-U.S. GAAP measure. See Table 1 for reconciliation.
4
Non-U.S. GAAP measure. See Table 1 for reconciliation.
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KMG CHEMICALS, INC. AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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(UNAUDITED)
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(In thousands, except for per share amounts)
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Three Months Ended
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Nine Months Ended
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April 30,
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April 30,
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2015
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2014
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2015
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2014
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Net sales
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$
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73,964
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$
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84,437
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$
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244,505
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$
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262,250
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Cost of sales
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47,149
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59,672
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161,544
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186,728
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Gross profit
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26,815
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24,765
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82,961
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75,522
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Distribution expenses
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11,700
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11,975
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37,721
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36,979
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Selling, general and administrative expenses
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9,257
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8,815
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28,164
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29,085
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Restructuring charges
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27
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1,061
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900
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5,092
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Realignment charges
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1,070
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-
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5,429
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-
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Operating income
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4,761
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2,914
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10,747
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4,366
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Other income (expense)
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Interest expense, net
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(111
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)
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(926
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)
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(1,098
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)
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(2,250
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)
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Gain (loss) on sale of creosote distribution business, net
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(234
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)
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-
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5,448
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-
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Other non-operating expense
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|
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(1,250
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)
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-
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(1,250
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)
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-
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Other, net
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(339
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)
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(105
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)
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(498
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)
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(540
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)
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Total other income (expense), net
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(1,934
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)
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(1,031
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)
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|
|
2,602
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(2,790
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)
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Income before income taxes
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|
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2,827
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|
|
1,883
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|
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13,349
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|
|
|
1,576
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|
|
Provision for income taxes
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|
|
(692
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)
|
|
|
(657
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)
|
|
|
(4,539
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)
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|
|
(1,742
|
)
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Net income (loss)
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$
|
2,135
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|
|
$
|
1,226
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|
|
$
|
8,810
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|
|
$
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(166
|
)
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Earnings per share:
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Net income (loss) per common share basic
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$
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0.18
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$
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0.11
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$
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0.75
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|
$
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(0.01
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)
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Net income (loss) per common share diluted
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$
|
0.18
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|
|
$
|
0.11
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|
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$
|
0.75
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|
|
$
|
(0.01
|
)
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Weighted average shares outstanding:
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Basic
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11,680
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|
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11,634
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|
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11,669
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|
|
|
11,606
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|
Diluted
|
|
|
11,819
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|
|
11,673
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|
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11,758
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|
|
|
11,606
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|
|
|
|
|
|
|
|
|
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KMG CHEMICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share amounts)
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April 30,
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July 31,
|
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2015
|
|
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2014
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(Unaudited)
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Assets
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Current assets
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Cash and cash equivalents
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$
|
6,840
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$
|
19,252
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Accounts receivable
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Trade, net of allowances of $143 at April 30, 2015 and $272 at
July 31, 2014
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|
38,428
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|
|
|
40,176
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Other
|
|
|
|
3,572
|
|
|
|
1,904
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|
Inventories, net
|
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|
|
38,995
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|
|
|
45,268
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|
Current deferred tax assets
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|
|
1,351
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|
|
|
1,577
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|
Prepaid expenses and other
|
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|
|
3,873
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|
|
|
3,476
|
|
Total current assets
|
|
|
|
93,059
|
|
|
|
111,653
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|
Property, plant and equipment, net
|
|
|
|
80,702
|
|
|
|
92,450
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|
Deferred tax assets
|
|
|
|
442
|
|
|
|
442
|
|
Goodwill
|
|
|
|
11,146
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|
|
|
12,595
|
|
Intangible assets, net
|
|
|
|
20,911
|
|
|
|
28,353
|
|
Restricted cash
|
|
|
|
1,000
|
|
|
|
1,000
|
|
Other assets, net
|
|
|
|
4,860
|
|
|
|
4,365
|
|
Total assets
|
|
|
$
|
212,120
|
|
|
$
|
250,858
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
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Current liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
30,057
|
|
|
$
|
36,690
|
|
Accrued liabilities
|
|
|
|
14,605
|
|
|
|
16,986
|
|
Employee incentive accrual
|
|
|
|
4,238
|
|
|
|
4,575
|
|
Total current liabilities
|
|
|
|
48,900
|
|
|
|
58,251
|
|
Long-term debt, net of current maturities
|
|
|
|
35,000
|
|
|
|
60,000
|
|
Deferred tax liabilities
|
|
|
|
5,146
|
|
|
|
9,881
|
|
Other long-term liabilities
|
|
|
|
1,881
|
|
|
|
2,520
|
|
Total liabilities
|
|
|
|
90,927
|
|
|
|
130,652
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized,
none issued
|
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.01 par value, 40,000,000 shares authorized,
11,680,940 shares issued and outstanding at April 30, 2015 and
11,649,001 shares issued and outstanding at July 31, 2014
|
|
|
|
117
|
|
|
|
116
|
|
Additional paid-in capital
|
|
|
|
30,866
|
|
|
|
28,886
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(8,107
|
)
|
|
|
645
|
|
Retained earnings
|
|
|
|
98,317
|
|
|
|
90,559
|
|
Total stockholders’ equity
|
|
|
|
121,193
|
|
|
|
120,206
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
212,120
|
|
|
$
|
250,858
|
|
|
|
|
|
|
|
KMG CHEMICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
April 30,
|
|
|
|
|
2015
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
8,810
|
|
|
$
|
(166
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
9,951
|
|
|
|
10,422
|
|
|
Non-cash restructuring and realignment charges
|
|
|
|
5,640
|
|
|
|
1,720
|
|
|
Amortization of loan costs
|
|
|
|
111
|
|
|
|
45
|
|
|
Stock-based compensation expense
|
|
|
|
1,970
|
|
|
|
1,777
|
|
|
Bad debt expense
|
|
|
|
-
|
|
|
|
89
|
|
|
Allowance for excess and obsolete inventory
|
|
|
|
760
|
|
|
|
33
|
|
|
Gain on disposal of property
|
|
|
|
-
|
|
|
|
(14
|
)
|
|
Gain on sale of creosote distribution business
|
|
|
|
(5,448
|
)
|
|
|
|
-
|
|
|
Deferred income taxes
|
|
|
|
(4,374
|
)
|
|
|
751
|
|
|
Tax benefit from stock-based awards
|
|
|
|
(10
|
)
|
|
|
|
(328
|
)
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable -- trade
|
|
|
|
95
|
|
|
|
1,906
|
|
|
Accounts receivable -- other
|
|
|
|
(1,756
|
)
|
|
|
|
538
|
|
|
Inventories
|
|
|
|
965
|
|
|
|
7,277
|
|
|
Other current and noncurrent assets
|
|
|
|
(1,386
|
)
|
|
|
|
389
|
|
|
Accounts payable
|
|
|
|
(4,897
|
)
|
|
|
|
(3,916
|
)
|
|
Accrued liabilities and other
|
|
|
|
(2,219
|
)
|
|
|
|
5,383
|
|
|
Net cash provided by operating activities
|
|
|
|
8,212
|
|
|
|
25,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
|
(10,751
|
)
|
|
|
|
(7,133
|
)
|
|
Disposals of property, plant and equipment
|
|
|
|
2,561
|
|
|
|
39
|
|
|
Proceeds from sale of creosote distribution business
|
|
|
|
14,899
|
|
|
|
-
|
|
|
Net cash provided by (used in) investing activities
|
|
|
|
6,709
|
|
|
|
(7,094
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
Net payments under revolving credit agreement
|
|
|
|
(41,100
|
)
|
|
|
|
(13,000
|
)
|
|
Principal payments on term loan
|
|
|
|
(20,000
|
)
|
|
|
|
-
|
|
|
Borrowings under New Credit Facility
|
|
|
|
59,100
|
|
|
|
-
|
|
|
Payments under New Credit Facility
|
|
|
|
(23,000
|
)
|
|
|
|
-
|
|
|
Tax benefit from stock-based awards
|
|
|
|
10
|
|
|
|
328
|
|
|
Payment of dividends
|
|
|
|
(1,050
|
)
|
|
|
|
(1,043
|
)
|
|
Net cash used in financing activities
|
|
|
|
(26,040
|
)
|
|
|
|
(13,715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
(1,293
|
)
|
|
|
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(12,412
|
)
|
|
|
|
5,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
19,252
|
|
|
|
13,949
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
6,840
|
|
|
$
|
19,402
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP financial measures to GAAP financial
measures
KMG provides non-GAAP financial information to complement reported GAAP
results. KMG believes that analysis of our financial performance would
be enhanced by an understanding of the factors underlying that
performance and our judgments about the likelihood that particular
factors will repeat. To provide for more accurate comparisons of the
company’s operating performance, KMG’s non-GAAP financial measures
exclude from current results: the gain on the sale of the creosote
business; expenses related to acquisition and integration; restructuring
and realignment of the Electronic Chemicals business; CEO transition
expenses; and accruals related to environmental site cleanup. KMG
intends to continue to provide certain non-GAAP financial information
and the appropriate reconciliation to GAAP in its financial results. As
required by SEC rules, the tables below present a reconciliation of our
presented non-GAAP measures to the most directly comparable GAAP
measures. These non-GAAP measures should be viewed as a supplement to,
and not a substitute for, U.S. GAAP measures of performance.
|
|
|
|
|
|
|
|
|
|
|
|
Table 1
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING INCOME TO EBITDA AND ADJUSTED EBITDA
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2015
|
|
|
Electronic
|
|
Wood Treating
|
|
|
|
|
|
|
|
|
Chemicals
|
|
Chemicals
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
$
|
6,644
|
|
|
$
|
2,276
|
|
|
($4,159
|
)
|
|
$
|
4,761
|
|
|
Other income (expense)
|
|
|
|
(193
|
)
|
|
|
(37
|
)
|
|
(109
|
)
|
|
|
(339
|
)
|
|
Depreciation and amortization
|
|
|
|
2,983
|
|
|
|
93
|
|
|
818
|
|
|
|
3,894
|
|
|
EBITDA
|
|
|
|
9,434
|
|
|
|
2,332
|
|
|
(3,450
|
)
|
|
|
8,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition & integration expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
441
|
|
|
|
441
|
|
|
Restructuring & realignment charges*
|
|
|
|
-
|
|
|
|
-
|
|
|
388
|
|
|
|
388
|
|
|
Adjusted EBITDA
|
|
|
$
|
9,434
|
|
|
$
|
2,332
|
|
|
($2,621
|
)
|
|
$
|
9,145
|
|
|
* Excludes depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended April 30, 2015
|
|
|
Electronic
|
|
Wood Treating
|
|
|
|
|
|
|
|
|
Chemicals
|
|
Chemicals
|
|
Corporate
|
|
Total
|
|
Operating Income (Loss)
|
|
|
$
|
16,335
|
|
|
$
|
6,456
|
|
|
($12,044
|
)
|
|
$
|
10,747
|
|
|
Other income (expense)
|
|
|
|
(76
|
)
|
|
|
(90
|
)
|
|
(332
|
)
|
|
|
(498
|
)
|
|
Depreciation and amortization
|
|
|
|
9,311
|
|
|
|
286
|
|
|
5,994
|
|
|
|
15,591
|
|
|
EBITDA
|
|
|
|
25,570
|
|
|
|
6,652
|
|
|
(6,382
|
)
|
|
|
25,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition & integration expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
441
|
|
|
|
441
|
|
|
Restructuring & realignment charges*
|
|
|
|
-
|
|
|
|
-
|
|
|
689
|
|
|
|
689
|
|
|
Adjusted EBITDA
|
|
|
$
|
25,570
|
|
|
$
|
6,652
|
|
|
($5,252
|
)
|
|
$
|
26,970
|
|
|
* Excludes depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2014
|
|
|
Electronic
|
|
Wood Treating
|
|
|
|
|
|
|
|
|
Chemicals
|
|
Chemicals
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
$
|
3,175
|
|
|
$
|
2,092
|
|
|
($2,353
|
)
|
|
$
|
2,914
|
|
|
Other income (expense)
|
|
|
|
(81
|
)
|
|
|
24
|
|
|
(48
|
)
|
|
|
(105
|
)
|
|
Depreciation and amortization
|
|
|
|
3,202
|
|
|
|
104
|
|
|
1,053
|
|
|
|
4,359
|
|
|
EBITDA
|
|
|
|
6,296
|
|
|
|
2,220
|
|
|
(1,348
|
)
|
|
|
7,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition & integration expenses
|
|
|
|
254
|
|
|
|
-
|
|
|
104
|
|
|
|
358
|
|
|
Restructuring charges*
|
|
|
|
-
|
|
|
|
-
|
|
|
112
|
|
|
|
112
|
|
|
Adjusted EBITDA
|
|
|
$
|
6,550
|
|
|
$
|
2,220
|
|
|
($1,132
|
)
|
|
$
|
7,638
|
|
|
* Excludes depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended April 30, 2014
|
|
|
Electronic
|
|
Wood Treating
|
|
|
|
|
|
|
|
|
Chemicals
|
|
Chemicals
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
$
|
9,508
|
|
|
$
|
5,708
|
|
|
($10,850
|
)
|
|
$
|
4,366
|
|
|
Other income (expense)
|
|
|
|
(385
|
)
|
|
|
(7
|
)
|
|
(148
|
)
|
|
|
(540
|
)
|
|
Depreciation and amortization
|
|
|
|
9,794
|
|
|
|
300
|
|
|
2,048
|
|
|
|
12,142
|
|
|
EBITDA
|
|
|
|
18,917
|
|
|
|
6,001
|
|
|
(8,950
|
)
|
|
|
15,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition & integration expenses
|
|
|
|
914
|
|
|
|
-
|
|
|
104
|
|
|
|
1,018
|
|
|
CEO transition costs
|
|
|
|
-
|
|
|
|
-
|
|
|
1,280
|
|
|
|
1,280
|
|
|
Restructuring charges*
|
|
|
|
-
|
|
|
|
-
|
|
|
3,372
|
|
|
|
3,372
|
|
|
Adjusted EBITDA
|
|
|
$
|
19,831
|
|
|
$
|
6,001
|
|
|
($4,194
|
)
|
|
$
|
21,638
|
|
|
* Excludes depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2015
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands, except EPS
|
|
|
KMG Chemicals, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Net
|
|
Diluted Earnings
|
|
|
|
|
Income
|
|
Margin
|
|
Income
|
|
Per Share
|
|
Non-GAAP measure
|
|
|
$
|
6,299
|
|
|
8.5
|
%
|
|
$
|
4,099
|
|
|
$
|
0.35
|
|
|
Restructuring & realignment charges
|
|
|
|
(1,097
|
)
|
|
(1.5
|
%)
|
|
|
(713
|
)
|
|
|
($0.06
|
)
|
|
Acquisition & integration expenses
|
|
|
|
(441
|
)
|
|
(0.6
|
%)
|
|
|
(287
|
)
|
|
|
($0.03
|
)
|
|
Gain on sale of creosote business
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(152
|
)
|
|
|
($0.01
|
)
|
|
Environmental site cleanup reserve
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(812
|
)
|
|
|
($0.07
|
)
|
|
GAAP measure
|
|
|
$
|
4,761
|
|
|
6.4
|
%
|
|
$
|
2,135
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended April 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands, except EPS
|
|
|
KMG Chemicals, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Net
|
|
Diluted Earnings
|
|
|
|
|
Income
|
|
Margin
|
|
Income
|
|
Per Share
|
|
Non-GAAP measure
|
|
|
$
|
17,517
|
|
|
7.2
|
%
|
|
$
|
10,482
|
|
|
$
|
0.89
|
|
|
Restructuring & realignment charges
|
|
|
|
(6,329
|
)
|
|
(2.6
|
%)
|
|
|
(4,114
|
)
|
|
|
($0.35
|
)
|
|
Acquisition & integration expenses
|
|
|
|
(441
|
)
|
|
(0.2
|
%)
|
|
|
(287
|
)
|
|
|
($0.02
|
)
|
|
Gain on sale of creosote business
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
3,541
|
|
|
$
|
0.30
|
|
|
Environmental site cleanup reserve
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(812
|
)
|
|
|
($0.07
|
)
|
|
GAAP measure
|
|
|
$
|
10,747
|
|
|
4.4
|
%
|
|
$
|
8,810
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2014
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands, except EPS
|
|
|
KMG Chemicals, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Net
|
|
Diluted Earnings
|
|
|
|
|
Income
|
|
Margin
|
|
Income
|
|
Per Share
|
|
Non-GAAP measure
|
|
|
$
|
4,333
|
|
|
5.1
|
%
|
|
$
|
2,388
|
|
|
$
|
0.20
|
|
|
Restructuring charges
|
|
|
|
(1,061
|
)
|
|
(1.2
|
%)
|
|
|
(691
|
)
|
|
|
($0.06
|
)
|
|
Restructuring income tax expense
|
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(238
|
)
|
|
|
($0.02
|
)
|
|
Acquisition & integration expenses
|
|
|
|
(358
|
)
|
|
(0.4
|
%)
|
|
|
(233
|
)
|
|
|
($0.01
|
)
|
|
GAAP measure
|
|
|
$
|
2,914
|
|
|
3.5
|
%
|
|
$
|
1,226
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Chemicals
|
|
Wood Treating Chemicals
|
|
|
|
|
Operating
|
|
Operating
|
|
|
|
|
Income
|
|
Margin
|
|
Income
|
|
Margin
|
|
Non-GAAP measure
|
|
|
$
|
3,429
|
|
|
5.6
|
%
|
|
$
|
2,092
|
|
|
|
9.2
|
%
|
|
Integration expenses
|
|
|
|
(254
|
)
|
|
(0.4
|
%)
|
|
|
-
|
|
|
|
0.0
|
%
|
|
GAAP measure
|
|
|
$
|
3,175
|
|
|
5.2
|
%
|
|
$
|
2,092
|
|
|
|
9.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended April 30, 2014
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands, except EPS
|
|
|
KMG Chemicals, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Net
|
|
Diluted Earnings
|
|
|
|
|
Income
|
|
Margin
|
|
Income (Loss)
|
|
(Loss) Per Share
|
|
Non-GAAP measure
|
|
|
$
|
11,756
|
|
|
4.5
|
%
|
|
$
|
6,295
|
|
|
$
|
0.54
|
|
|
Restructuring charges
|
|
|
|
(5,092
|
)
|
|
(1.9
|
%)
|
|
|
(4,965
|
)
|
|
|
($0.42
|
)
|
|
Integration expenses
|
|
|
|
(1,018
|
)
|
|
(0.4
|
%)
|
|
|
(663
|
)
|
|
|
($0.06
|
)
|
|
CEO transition costs
|
|
|
|
(1,280
|
)
|
|
(0.5
|
%)
|
|
|
(833
|
)
|
|
|
($0.07
|
)
|
|
GAAP measure
|
|
|
$
|
4,366
|
|
|
1.7
|
%
|
|
$
|
(166
|
)
|
|
|
($0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Chemicals
|
|
Wood Treating Chemicals
|
|
|
|
|
Operating
|
|
Operating
|
|
|
|
|
Income
|
|
Margin
|
|
Income
|
|
Margin
|
|
Non-GAAP measure
|
|
|
$
|
10,422
|
|
|
5.6
|
%
|
|
$
|
5,708
|
|
|
|
7.6
|
%
|
|
Integration expenses
|
|
|
|
(914
|
)
|
|
(0.5
|
%)
|
|
|
-
|
|
|
|
0.0
|
%
|
|
GAAP measure
|
|
|
$
|
9,508
|
|
|
5.1
|
%
|
|
$
|
5,708
|
|
|
|
7.6
|
%
|
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