Exhibit 99.1
| KMG Chemicals, Inc. 9555 W. Sam Houston Parkway South Suite 600 Houston, TX 77099 USA |
KMG Reports Second Quarter 2015 Financial Results
HOUSTON, Texas—(BUSINESS WIRE)—March 12, 2015—KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals to select markets, today announced financial results for the fiscal 2015 second quarter ended January 31, 2015.
2015 Second Quarter Financial Highlights
· | Consolidated net sales were $79.8 million, a 5% decrease from last year’s second quarter. Sales declined due to reduced creosote volume and the divestiture of the creosote business in January. |
· | Adjusted EBITDA1 increased to $9.0 million, up 50% from $6.0 million in last year’s second quarter. |
· | Adjusted diluted earnings per share2 was $0.30 vs. $0.12 per share reported in the prior year’s second quarter. |
· | GAAP EPS was $0.47 vs. ($0.24) per share in the second quarter of fiscal 2014. |
· | Long-term debt balance at quarter end was $39 million, down from $56 million in the first quarter of fiscal 2015. During the second quarter, the company used cash proceeds (net of taxes) from the sale of the creosote distribution business plus cash generated from operations to reduce debt. |
Chris Fraser, KMG chairman and chief executive officer, said, “KMG had a very solid second quarter, and we continued to make significant progress financially, operationally and strategically. We reported strong growth in adjusted EBITDA and adjusted EPS, driven by increased volume in our Electronic Chemicals business and improved margins that reflect benefits from the consolidation of our global manufacturing operations and our efforts to enhance our market positioning. As a result, we have increased our fiscal 2015 adjusted EBITDA guidance.
“In January we divested our creosote assets, realizing significant value for a business that was no longer central to our growth strategy. Our penta business remains an important part of our company and a significant contributor to our overall cash flows.”
Mr. Fraser concluded, “The consolidation and realignment of our global manufacturing operations continues to progress. In January, we ceased operations at the Bay Point, California site and began the transition of our hydrofluoric acid operations to our state-of-the-art facility in Pueblo, Colorado. These strategic initiatives will improve our manufacturing efficiency and raise our overall quality offering to our global semiconductor customers.”
1 | Non-U.S. GAAP measure. See Table 1 for reconciliation. |
2 | Non-U.S. GAAP measure. See Table 2 for reconciliation. |
Phone: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG |
Second quarter results
Dollars in thousands, except EPS | | Fiscal 2015 | | | Fiscal 2014 | |
| | Adjusted (non-GAAP) | | | As Reported (GAAP) | | | Adjusted (non-GAAP) | | | As Reported (GAAP) | |
Net sales | | $ | 79,762 | | | $ | 79,762 | | | $ | 84,253 | | | $ | 84,253 | |
Operating income (loss) | | | 5,826 | | | | 3,167 | | | | 2,588 | | | | (1,603 | ) |
Operating margin | | | 7.3 | % | | | 4.0 | % | | | 3.1 | % | | | (1.9 | )% |
Net income (loss) | | | 3,526 | | | | 5,490 | | | | 1,396 | | | | (2,744 | ) |
Diluted earnings per share | | $ | 0.30 | | | $ | 0.47 | | | $ | 0.12 | | | $ | (0.24 | ) |
Business segment results
Electronic Chemicals
Second quarter results
Dollars in thousands | | Fiscal 2015 | | | Fiscal 2014 | |
| | As Reported (GAAP) | | | Adjusted (non-GAAP) | | | As Reported (GAAP) | |
Net sales | | $ | 66,595 | | | $ | 61,428 | | | $ | 61,428 | |
Operating income | | | 5,570 | | | | 3,155 | | | | 2,995 | |
Operating margin | | | 8.4 | % | | | 5.1 | % | | | 4.9 | % |
For the second fiscal quarter, the Electronic Chemicals segment reported:
· | Sales of $66.6 million, up 8.4% from $61.4 million in the same period a year ago. The increase reflects higher sales volume for high purity process chemicals in North America and Asia, partially offset by weakness in Europe. Electronic Chemicals sales represented approximately 83% of consolidated second quarter sales. |
· | Adjusted EBITDA3 of $8.7 million, compared to $6.4 million last year. |
· | GAAP operating income of $5.6 million vs. $3.0 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 North American electronic chemicals operations. |
3 | Non-U.S. GAAP measure. See Table 1 for reconciliation. |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 2 |
Wood Treating Chemicals
Second quarter results
Dollars in thousands | | Fiscal 2015 As Reported (GAAP) | | | Fiscal 2014 As Reported (GAAP) | |
Net sales | | $ | 13,136 | | | $ | 22,795 | |
Operating income | | | 1,595 | | | | 1,111 | |
Operating margin | | | 12.1 | % | | | 4.9 | % |
For the second fiscal quarter, the Wood Treating Chemicals segment reported:
· | Sales of $13.1 million, versus $22.8 million in the same period a year ago. The sales decline reflects reduced creosote sales and the divestiture of the creosote product line during the quarter. Wood Treating Chemicals sales represented approximately 17% of consolidated second quarter sales. |
· | EBITDA4 of $1.6 million, up from $1.2 million last year. |
· | Operating income of $1.6 million, or 12.1% of sales, compared to $1.1 million, or 4.9% of sales, last year. The increase in operating income and margin was due to lower supply chain costs and a more favorable product mix. |
Outlook
· | Fiscal 2015 consolidated net sales are forecast to be $315-325 million, compared with consolidated net sales of $353 million in fiscal 2014. The projected decline in fiscal 2015 sales reflects decreased sales in the Wood Treating Chemicals segment primarily due to the divestiture of the creosote product line, partially offset by growth in the Electronic Chemicals segment. |
· | We increase our fiscal 2015 adjusted EBITDA forecast to $34-36 million, from $32-35 million previously. The increase in our adjusted EBITDA forecast reflects strong performance within the Electronic Chemicals segment. |
· | Fiscal 2015 depreciation and amortization expense is forecast to be approximately $14 million, excluding restructuring and realignment charges, compared to the prior forecast of approximately $16 million. |
· | Fiscal 2015 capital expenditures are forecast to be approximately $16 million, compared to the prior forecast of $14-16 million. Capital expenditures include expenses related to our ERP system implementation and UPC integration. |
4 | Non-U.S. GAAP measure. See Table 1 for reconciliation. |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 3 |
Conference call
Date: Thursday, March 12, 2015
Time: 5:00 p.m. ET
Dial in: 866-271-5140 or 617-213-8893
Participant passcode: 19183260
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 9:00 p.m. ET on March 12, 2015. To access the call, dial 888-286-8010 or 617-801-6888 using participant passcode 32960606.
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. Its current operations are focused on the electronic and industrial wood treatment chemical markets. 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.
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 4 |
KMG CHEMICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
| | Three Months Ended January 31, | | | Six Months Ended January 31, | |
| | 2015 | | | 2014 | | | 2015 | | | 2014 | |
Net sales | | $ | 79,762 | | | $ | 84,253 | | | $ | 170,541 | | | $ | 177,813 | |
Cost of sales | | | 51,207 | | | | 59,063 | | | | 114,395 | | | | 127,056 | |
Gross profit | | | 28,555 | | | | 25,190 | | | | 56,146 | | | | 50,757 | |
Distribution expenses | | | 13,022 | | | | 12,892 | | | | 26,021 | | | | 25,004 | |
Selling, general and administrative expenses | | | 9,707 | | | | 9,870 | | | | 18,907 | | | | 20,270 | |
Restructuring charges | | | 296 | | | | 4,031 | | | | 873 | | | | 4,031 | |
Realignment charges | | | 2,363 | | | | — | | | | 4,359 | | | | — | |
Operating income (loss) | | | 3,167 | | | | (1,603 | ) | | | 5,986 | | | | 1,452 | |
Other income (expense) | | | | | | | | | | | | | | | | |
Interest expense, net | | | (184 | ) | | | (661 | ) | | | (987 | ) | | | (1,324 | ) |
Gain on sale of creosote distribution business | | | 5,682 | | | | — | | | | 5,682 | | | | — | |
Other, net | | | (131 | ) | | | (120 | ) | | | (159 | ) | | | (435 | ) |
Total other income (expense), net | | | 5,367 | | | | (781 | ) | | | 4,536 | | | | (1,759 | ) |
Income/(loss) before income taxes | | | 8,534 | | | | (2,384 | ) | | | 10,522 | | | | (307 | ) |
Provision for income taxes | | | (3,044 | ) | | | (360 | ) | | | (3,847 | ) | | | (1,085 | ) |
Net income/(loss) | | $ | 5,490 | | | $ | (2,744 | ) | | $ | 6,675 | | | $ | (1,392 | ) |
Earnings (loss) per share: | | | | | | | | | | | | | | | | |
Net income per common share basic | | $ | 0.47 | | | $ | (0.24 | ) | | $ | 0.57 | | | $ | (0.12 | ) |
Net income per common share diluted | | $ | 0.47 | | | $ | (0.24 | ) | | $ | 0.57 | | | $ | (0.12 | ) |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 11,669 | | | | 11,613 | | | | 11,664 | | | | 11,594 | |
Diluted | | | 11,759 | | | | 11,613 | | | | 11,728 | | | | 11,594 | |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 5 |
KMG CHEMICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share amounts)
| | January 31, 2015 | | | July 31, 2014 | |
| | (Unaudited) | | | | | |
Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 10,490 | | | $ | 19,252 | |
Accounts receivable | | | | | | | | |
Trade, net of allowances of $246 at January 31, 2015 and $272 at July 31, 2014 | | 37,202 | | | 40,176 | |
Other | | | 2,446 | | | | 1,904 | |
Inventories, net | | | 40,491 | | | | 45,268 | |
Current deferred tax assets | | | 1,353 | | | | 1,577 | |
Prepaid expenses and other | | | 2,282 | | | | 3,476 | |
Assets held for sale | | | 2,445 | | | ― | |
Total current assets | | | 96,709 | | | | 111,653 | |
| | | | | | | | |
Property, plant and equipment, net | | | 80,936 | | | | 92,450 | |
Deferred tax assets | | | 442 | | | | 442 | |
Goodwill | | | 11,101 | | | | 12,595 | |
Intangible assets, net | | | 21,117 | | | | 28,353 | |
Restricted cash | | | 1,000 | | | | 1,000 | |
Other assets, net | | | 4,815 | | | | 4,365 | |
Total assets | | $ | 216,120 | | | $ | 250,858 | |
| | | | | | | | |
Liabilities & stockholders’ equity | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 28,897 | | | $ | 36,690 | |
Accrued liabilities | | | 17,536 | | | | 16,986 | |
Employee incentive accrual | | | 2,991 | | | | 4,575 | |
Total current liabilities | | | 49,424 | | | | 58,251 | |
| | | | | | | | |
Long-term debt | | | 39,000 | | | | 60,000 | |
Deferred tax liabilities | | | 7,839 | | | | 9,881 | |
Other long-term liabilities | | | 1,949 | | | | 2,520 | |
Total liabilities | | | 98,212 | | | | 130,652 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
| | | | | | | | |
Stockholders’ equity | | | | | | | | |
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued | | ― | | | ― | |
Common stock, $.01 par value, 40,000,000 shares authorized, 11,670,329
shares issued and outstanding at January 31, 2015 and 11,649,001
shares issued and outstanding at July 31, 2014 | | | 116 | | | | 116 | |
Additional paid-in capital | | | 30,015 | | | | 28,886 | |
Accumulated other comprehensive income/(loss) | | | (8,757 | ) | | | 645 | |
Retained earnings | | | 96,534 | | | | 90,559 | |
Total stockholders’ equity | | | 117,908 | | | | 120,206 | |
Total liabilities and stockholders’ equity | | $ | 216,120 | | | $ | 250,858 | |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 6 |
KMG CHEMICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
| | Six Months Ended January 31, | |
| | 2015 | | | 2014 | |
Cash flows from operating activities | | | | | | | | |
Net income | | $ | 6,675 | | | $ | (1,392 | ) |
Adjustments to reconcile net income to net cash provided by operating activities | | | | | | | | |
Depreciation and amortization | | | 6,767 | | | | 7,011 | |
Non-cash restructuring charges | | | 4,930 | | | | 771 | |
Amortization of loan costs included in interest expense | | | 69 | | | | 30 | |
Stock-based compensation expense | | | 1,138 | | | | 1,434 | |
Bad debt expense | | | — | | | | 130 | |
Allowance for excess and obsolete inventory | | | 431 | | | | 38 | |
Loss on disposal of property | | | — | | | | 63 | |
Gain on sale of creosote distribution business | | | (5,682 | ) | | | — | |
Deferred income taxes | | | (2,272 | ) | | | 940 | |
Tax benefit from stock-based awards | | | (9 | ) | | | (328 | ) |
Changes in operating assets and liabilities | | | | | | | | |
Accounts receivable — trade | | | 1,057 | | | | 2,578 | |
Accounts receivable — other | | | (615 | ) | | | 140 | |
Inventories | | | (319 | ) | | | 1,733 | |
Other current and noncurrent assets | | | 276 | | | | 1,812 | |
Accounts payable | | | (6,357 | ) | | | (5,817 | ) |
Accrued liabilities and other | | | 367 | | | | 2,633 | |
Net cash provided by operating activities | | | 6,456 | | | | 11,776 | |
| | | | | | | | |
Cash flows from investing activities | | | | | | | | |
Additions to property, plant and equipment | | | (7,036 | ) | | | (5,307 | ) |
Disposals of property, plant and equipment | | | 91 | | | | 17 | |
Proceeds from sale of creosote product distribution business | | | 15,062 | | | | — | |
Net cash used in investing activities | | | 8,117 | | | | (5,290 | ) |
| | | | | | | | |
Cash flows from financing activities | | | | | | | | |
Net payments under revolving credit agreement | | | (41,100 | ) | | | (6,000 | ) |
Principal payments on term loan | | | (20,000 | ) | | | — | |
Borrowings under new credit facility | | | 59,100 | | | | — | |
Payments under new credit facility | | | (19,000 | ) | | | — | |
Tax benefit from stock-based awards | | | 9 | | | | 328 | |
Payment of dividends | | | (700 | ) | | | (695 | ) |
Net cash used in financing activities | | | (21,691 | ) | | | (6,367 | ) |
| | | | | | | | |
Effect of exchange rate changes on cash | | | (1,644 | ) | | | 892 | |
| | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | (8,762 | ) | | | 1,011 | |
| | | | | | | | |
Cash and cash equivalents at beginning of period | | | 19,252 | | | | 13,949 | |
Cash and cash equivalents at end of period | | $ | 10,490 | | | $ | 14,960 | |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 7 |
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 the integration of the UPC business; restructuring and realignment of the Electronic Chemicals business; and CEO transition expenses. 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)
| | Electronic | | | Wood Treating | | | | | | | | | |
Second Quarter Fiscal 2015 | | Chemicals | | | Chemicals | | | Corporate | | | Total | |
Operating Income (Loss) | | $ | 5,570 | | | $ | 1,595 | | | $ | (3,998 | ) | | $ | 3,167 | |
Other income (expense) | | | (3 | ) | | | (43 | ) | | | (85 | ) | | | (131 | ) |
Depreciation and amortization | | | 3,126 | | | | 97 | | | | 2,455 | | | | 5,678 | |
EBITDA | | | 8,693 | | | | 1,649 | | | | (1,628 | ) | | | 8,714 | |
| | | | | | | | | | | | | | | | |
Restructuring charges* | | | — | | | | — | | | | 69 | | | | 69 | |
Realignment charges* | | | — | | | | — | | | | 248 | | | | 248 | |
Adjusted EBITDA | | $ | 8,693 | | | $ | 1,649 | | | $ | (1,311 | ) | | $ | 9,031 | |
* Excludes depreciation
Six Months Ended January 31, 2015 | | Electronic Chemicals | | | Wood Treating Chemicals | | | Corporate | | | Total | |
Operating Income (Loss) | | $ | 9,691 | | | $ | 4,180 | | | $ | (7,885 | ) | | $ | 5,986 | |
Other income (expense) | | | 117 | | | | (53 | ) | | | (223 | ) | | | (159 | ) |
Depreciation and amortization | | | 6,328 | | | | 193 | | | | 5,176 | | | | 11,697 | |
EBITDA | | | 16,136 | | | | 4,320 | | | | (2,932 | ) | | | 17,524 | |
| | | | | | | | | | | | | | | | |
Restructuring charges* | | | — | | | | — | | | | 15 | | | | 15 | |
Realignment charges* | | | — | | | | — | | | | 286 | | | | 286 | |
Adjusted EBITDA | | $ | 16,136 | | | $ | 4,320 | | | $ | (2,631 | ) | | $ | 17,825 | |
* Excludes depreciation
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 8 |
(Table 1 continued)
Second Quarter Fiscal 2014 | | Electronic Chemicals | | | Wood Treating Chemicals | | | Corporate | | | Total | |
Operating Income (Loss) | | $ | 2,995 | | | $ | 1,111 | | | $ | (5,709 | ) | | $ | (1,603 | ) |
Other income (expense) | | | (55 | ) | | | (10 | ) | | | (55 | ) | | | (120 | ) |
Depreciation and amortization | | | 3,345 | | | | 98 | | | | 875 | | | | 4,318 | |
EBITDA | | | 6,285 | | | | 1,199 | | | | (4,889 | ) | | | 2,595 | |
| | | | | | | | | | | | | | | | |
Integration expenses | | | 160 | | | | — | | | | — | | | | 160 | |
Restructuring charges* | | | — | | | | — | | | | 3,260 | | | | 3,260 | |
Adjusted EBITDA | | $ | 6,445 | | | $ | 1,199 | | | $ | (1,629 | ) | | $ | 6,015 | |
* Excludes depreciation
Six Months Ended January 31, 2014 | | Electronic Chemicals | | | Wood Treating Chemicals | | | Corporate | | | Total | |
Operating Income (Loss) | | $ | 6,333 | | | $ | 3,616 | | | $ | (8,497 | ) | | $ | 1,452 | |
Other income (expense) | | | (304 | ) | | | (31 | ) | | | (100 | ) | | | (435 | ) |
Depreciation and amortization | | | 6,592 | | | | 196 | | | | 994 | | | | 7,782 | |
EBITDA | | | 12,621 | | | | 3,781 | | | | (7,603 | ) | | | 8,799 | |
| | | | | | | | | | | | | | | | |
Integration expenses | | | 660 | | | | — | | | | — | | | | 660 | |
CEO transition costs | | | — | | | | — | | | | 1,280 | | | | 1,280 | |
Restructuring charges* | | | �� | | | | — | | | | 3,260 | | | | 3,260 | |
Adjusted EBITDA | | $ | 13,281 | | | $ | 3,781 | | | $ | (3,063 | ) | | $ | 13,999 | |
* Excludes depreciation
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 9 |
Table 2
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Second Quarter Fiscal 2015
Dollars in thousands, except EPS | | KMG Chemicals, Inc. | |
| | Operating | | | Net | | | Diluted Earnings | |
| | Income | | | Margin | | | Income | | | Per Share | |
Non-GAAP measure | | $ | 5,826 | | | | 7.3 | % | | $ | 3,526 | | | $ | 0.30 | |
Restructuring charges | | | (296 | ) | | | (0.4 | )% | | | (193 | ) | | | (0.01 | ) |
Realignment charges | | | (2,363 | ) | | | (2.9 | )% | | | (1,536 | ) | | | (0.13 | ) |
Gain on sale of creosote business | | | — | | | | 0.0 | % | | | 3,693 | | | | 0.31 | |
GAAP measure | | $ | 3,167 | | | | 4.0 | % | | $ | 5,490 | | | $ | 0.47 | |
Six Months Ended January 31, 2015
Dollars in thousands, except EPS | | KMG Chemicals, Inc. | |
| | Operating | | | Net | | | Diluted Earnings | |
| | Income | | | Margin | | | Income | | | Per Share | |
Non-GAAP measure | | $ | 11,218 | | | | 6.6 | % | | $ | 6,383 | | | $ | 0.54 | |
Restructuring charges | | | (873 | ) | | | (0.5 | )% | | | (568 | ) | | | (0.04 | ) |
Realignment charges | | | (4,359 | ) | | | (2.6 | )% | | | (2,833 | ) | | | (0.24 | ) |
Gain on sale of creosote business | | | — | | | | 0.0 | % | | | 3,693 | | | | 0.31 | |
GAAP measure | | $ | 5,986 | | | | 3.5 | % | | $ | 6,675 | | | $ | 0.57 | |
Second Quarter Fiscal 2014
Dollars in thousands, except EPS | | KMG Chemicals, Inc. | |
| | Operating | | | Net | | | Diluted Earnings | |
| | Income | | | Margin | | | Income | | | (Loss) Per Share | |
Non-GAAP measure | | $ | 2,588 | | | | 3.1 | % | | $ | 1,396 | | | $ | 0.12 | |
Restructuring charges | | | (4,031 | ) | | | (4.8 | )% | | | (2,624 | ) | | $ | (0.23 | ) |
Restructuring income tax expense | | | — | | | | 0.0 | % | | | (1,412 | ) | | $ | (0.12 | ) |
Integration expenses | | | (160 | ) | | | (0.2 | )% | | | (104 | ) | | $ | (0.01 | ) |
GAAP measure | | $ | (1,603 | ) | | | (1.9 | )% | | $ | (2,744 | ) | | $ | (0.24 | ) |
| | Electronic Chemicals | | | Wood Treating Chemicals | |
| | Operating | | | Operating | |
| | Income | | | Margin | | | Income | | | Margin | |
Non-GAAP measure | | $ | 3,155 | | | | 5.1 | % | | $ | 1,111 | | | | 4.9 | % |
Integration expenses | | | (160 | ) | | | (0.2 | )% | | | — | | | | 0.0 | % |
GAAP measure | | $ | 2,995 | | | | 4.9 | % | | $ | 1,111 | | | | 4.9 | % |
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 10 |
(Table 2 continued)
Six Months Ended January 31, 2014
Dollars in thousands, except EPS | | KMG Chemicals, Inc. | |
| | Operating | | | Net | | | Diluted Earnings | |
| | Income | | | Margin | | | Income (Loss) | | | (Loss) Per Share | |
Non-GAAP measure | | $ | 7,423 | | | | 4.2 | % | | $ | 3,907 | | | $ | 0.34 | |
Restructuring charges | | | (4,031 | ) | | | (2.3 | )% | | | (2,624 | ) | | | (0.23 | ) |
Restructuring income tax expense | | | — | | | | — | | | | (1,412 | ) | | | (0.12 | ) |
Integration expenses | | | (660 | ) | | | (0.4 | )% | | | (430 | ) | | | (0.04 | ) |
CEO transition costs | | | (1,280 | ) | | | (0.7 | )% | | | (833 | ) | | | (0.07 | ) |
GAAP measure | | $ | 1,452 | | | | 0.8 | % | | $ | (1,392 | ) | | $ | (0.12 | ) |
| | Electronic Chemicals | | | Wood Treating Chemicals | |
| | Operating | | | Operating | |
| | Income | | | Margin | | | Income | | | Margin | |
Non-GAAP measure | | $ | 6,993 | | | | 5.5 | % | | $ | 3,616 | | | | 7.0 | % |
Integration expenses | | | (660 | ) | | | (0.5 | )% | | | — | | | | 0.0 | % |
GAAP measure | | $ | 6,333 | | | | 5.0 | % | | $ | 3,616 | | | | 7.0 | % |
KMG Chemicals, Inc.
Eric Glover, 713-600-3865
Investor Relations Manager
eglover@kmgchemicals.com
Main: 713-600-3800 ● Fax: 713-600-3850 www.kmgchemicals.com ● NYSE: KMG 11 |
