|
KMG Chemicals Corporate Offices 9555 W. Sam Houston Parkway South Suite 600 Houston, TX 77099 |
| Investor Relations | Company Overview | KMG Electronic Chemicals | KMG-Bernuth | Home |  |
| Corporate Fact Sheet |
| News Releases |
| SEC Filings |
| Conference Calls & Events |
| Annual Report |
| Stock Report |
| Corporate Governance |
|
Request Materials/ E-Mail List |
| Officers |
| Directors |
| Contacts |
|
Fiscal Year 2005 News ReleasesThe Company's fiscal year-end is July 31.
|
|
KMG CHEMICALS ADDED TO THE NEW RUSSELL MICROCAPT INDEXHOUSTON, TX - July 5, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it was added to the new Russell MicrocapT Index. The Russell Microcap Index is comprised of the smallest 1,000 securities in the Russell 2000® Index plus the next 1,000 companies below the Index based on total market capitalization. More than $2.5 trillion in assets are benchmarked to Russell Indexes, including more than $450 billion invested in passive index funds that use them as a model. David Hatcher, KMG's Chairman and CEO, stated, "We are pleased to be added to the Russell Microcap Index. KMG's inclusion in this Index will increase our visibility with investors and institutions that rely on the Russell Indexes as a key part of their investment strategy." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL ASSETS FROM OCCIDENTAL CHEMICAL CORPORATIONHOUSTON, TX - June 7, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has acquired certain assets used in the manufacture and sale of pentachlorophenol ("penta") from a wholly owned subsidiary of Occidental Chemical Corporation. Terms were not disclosed. "Occidental acquired these penta assets when it recently purchased Vulcan Chemicals, but decided against entering the penta business. We believe our acquisition of certain manufacturing equipment and intangible assets associated with the penta business is indicative of the commitment we have to this market," said David Hatcher, KMG's Chairman and CEO. Penta is currently manufactured and sold by KMG to the majority of wood treaters in North America who use the product to treat utility poles that are then sold to electric and telecommunications companies. "We believe our penta revenues are going to increase by over $3 million per year. More importantly, we anticipate achieving greater operating efficiencies as a result of increased throughput at our penta plant," continued Hatcher. "The equipment included in this acquisition will be used to back-up KMG's existing penta plant, thereby assuring security-of-supply for this important wood preservative." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: Investor Relations Counsel: KMG CHEMICALS ANNOUNCES THIRD QUARTER RESULTS WITH NET INCOME UP 61% ON 24% SALES INCREASEHOUSTON, TX - May 19, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the third quarter and nine-month period ended April 30, 2005. Third Quarter Financial Highlights - versus fiscal 2004 third quarter
Nine-month Financial Highlights - versus the first nine months of 2004
Due to the seasonality of sales, particularly the Company's agricultural and animal health products, revenue and earnings are typically skewed to the second half of the fiscal year. As of April 30, 2005, KMG had cash of $6.9 million, total assets of $50.4 million, long-term debt of $10.0 million, and no borrowings outstanding under its $5.0 million credit facility. David Hatcher, KMG's Chairman and CEO, stated, "We are very pleased with the results for the third quarter, which marked the highest quarterly sales level in the Company's history, as well as our fifth consecutive quarter of comparable period earnings growth. We have achieved higher sales across our entire product portfolio thus far this year. Demand by the railroads for crossties treated with creosote has been particularly strong, a trend we see continuing through the fourth quarter of fiscal 2005." Mr. Hatcher continued, "We are proud to note that these financial results were realized despite record high raw material costs. This performance was the result of our successful acquisition program and the efforts of our management team." Mr. Hatcher also stated, "On April 21st, we completed a $6.0 million private equity placement that strengthened our balance sheet and broadened our institutional shareholder base. The capital infusion enables us to continue to execute our growth-through-acquisitions strategy. We continue to work our pipeline of acquisition opportunities and are hopeful we will complete another transaction in the near term. We look forward to updating you on our progress."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: KMG CHEMICALS COMPLETES $6 MILLION PRIVATE EQUITY PLACEMENTHOUSTON, TX - April 21, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the Company completed a $6.0 million private equity placement. Tontine Capital Partners, L.P., an institutional investor based in Greenwich, CT, invested $5.0 million in KMG, while Terrier Partners L.P., a New York City-based fund that has taken significant positions in peer companies, invested $1.0 million. Both Tontine and Terrier were shareholders of KMG prior to this transaction. The transaction consisted of 1.2 million shares of KMG common stock priced at $5.00 per share. This financing enhances KMG's capital base and enables the Company to take advantage of the acquisition opportunities available in the marketplace. Additionally, the transaction represents a key step toward building institutional ownership in the Company's stock. David Hatcher, KMG's Chairman and CEO, stated, "I am delighted that Tontine and Terrier have increased their positions in the Company substantially. We see it as a vote of confidence in KMG, our business model and the management team." Mr. Hatcher continued, "There is no shortage of attractive acquisition opportunities and we fully intend to put this additional capital to work in fairly short order. We have successfully completed four acquisitions over the past 28 months, and remain very enthusiastic about KMG's near and long-term growth prospects." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: KMG CHEMICALS PROMOTES NEAL BUTLER TO PRESIDENTMove positions company for its next stage of growth. HOUSTON, February 28, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced today that J. Neal Butler has been promoted to the position of president. Neal Butler joined KMG Chemicals in March 2004 as chief operating officer. He will retain that title in addition to being named president, and will continue to report to chairman and chief executive officer David Hatcher. "Neal has done an outstanding job managing our operations and directing the integration of our acquisitions," Hatcher said. "The results of his leadership are reflected in the solid earnings growth KMG has delivered for its shareholders this past year. Over the last 14 months, we have completed three acquisitions. Integrating acquisitions while maintaining our cost-conscious focus and lean operations is a core competency necessary to maintaining the 20 percent-plus compound annual growth rate our shareholders have enjoyed since 1988." Hatcher called Butler's appointment the "final step" in building the management team for the company's next stage of growth. With Butler as president, Hatcher will dedicate more time to strategic efforts, including growing the company. "The company has a full acquisition pipeline and consistent deal flow due to the creation of a professional acquisition program by our CFO," he said. "This fiscal year, KMG will exceed $50 million in sales. Our next goal is to pass the $100 million mark, while delivering corresponding increases in profits and shareholder value." In addition to Hatcher and Butler, KMG Chemicals' senior management team includes John Sobchak, chief financial officer, and Roger Jackson, general counsel. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS ANNOUNCES STRONG SECOND QUARTER RESULTS, WITH EARNINGS UP 526% FOR THE FIRST HALF OF FISCAL 2005Successful acquisition program continues to fuel growth HOUSTON, February 17, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2005 quarter ended January 31, 2005. For the second fiscal 2005 quarter, net income was $0.44 million or $0.06 per diluted share, up from a loss of ($0.14 million) or ($0.02) per diluted share reported for the same period last year. Fiscal second quarter net sales were $12.48 million, up from $8.54 million during the year earlier period. For the first six months ended January 31, 2005, net income was $1.12 million or $0.14 per diluted share, up from $0.18 million, or $0.02 per diluted share for the first half of fiscal 2004. Net sales were $26.07 million for the first half of the year versus $16.91 million last year. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year. At the end of the second fiscal quarter for 2005, KMG had total assets of $42.87 million and long-term debt of $10.44 million. The company had $1.96 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $5.0 million revolving credit facility. "The four acquisitions we have closed over the last 26 months have all been successful and are continuing to provide growth to the bottom line," said David Hatcher, KMG's chairman and president. "In addition, the demand for treated wood crossties by the railroads remains strong and is expected to continue at these above average levels through the rest of the fiscal year, significantly impacting our financial results." "This is KMG's fourth quarter of comparable period earnings growth. Over the last two years, we have expanded our management team significantly, bringing on the talent necessary to take this company to the next level," continued Hatcher. "The ongoing improvement in our financial performance has been achieved during a period when the company has experienced record high raw material prices, and is indicative of what our management team can accomplish."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: John V. SobchakBack To Top ChiefFinancial Officer KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDENDHOUSTON, February 16, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on March 15, 2005 to shareholders of record as of February 28, 2005. The company's current annual dividend rate is $0.07 per common share. As of January 31, 2005, there were approximately 7.58 million common shares outstanding. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: FEDERAL AGENCY FOR ENVIRONMENTAL PROTECTION IN MEXICO AWARDS KMG CHEMICALS WITH A "CLEAN INDUSTRY CERTIFICATE"Second consecutive award earned by KMG's Matamoros plant HOUSTON, January 18, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its plant in Matamoros, Mexico has recently been awarded a Clean Industry Certificate by PROFEPA, the Federal Agency for Environmental Protection in Mexico. The Clean Industry Certificate requires that plants meet the highest environmental standards for chemical plants available worldwide. Neal Butler, chief operating officer of KMG, said, "We are delighted to have won this important award for the second consecutive review period. KMG takes its environmental responsibility very seriously. The tone is set at the top and it is a part of our corporate culture." Butler continued, "Our employees in Matamoros, Mexico have done an exemplary job. It is gratifying to see that the investment of time, money and resources the company has made in this area has been so effective and duly recognized." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS SECURES NEW REVOLVING CREDIT FACILITYHOUSTON (Dec. 16, 2004) -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced that it obtained a $5.0 million revolving credit facility with a three-year term from SouthTrust Bank. The new revolver replaces the $3.5 million facility set to mature on January 31, 2005. The company intends to use the new credit facility as needed for general corporate purposes and working capital requirements. "KMG has a long history with SouthTrust Bank and we value that relationship," said Vice President and Chief Financial Officer, John V. Sobchak. "Currently we have no borrowings under our revolving credit facility, and we have a growing cash position. However, this facility provides KMG with greater financial flexibility as we continue to execute our growth strategy." South Trust Bank is a wholly owned subsidiary of the Wachovia Corporation. Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve approximately 14 million client relationships (including households and businesses), primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and Washington, D.C. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through wachovia.com. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS ANNOUNCES FIRST QUARTER NET INCOME UP 111% OVER PREVIOUS YEAR, WITH A 62% INCREASE IN REVENUECompany posts third consecutive quarter of comparable period earnings growth. HOUSTON (November 18, 2004) - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2005 quarter ended October 31, 2004. For the first fiscal 2005 quarter, net income was $0.67 million or $0.09 per diluted share, up from $0.32 million or $0.04 per diluted share reported for the same quarter in fiscal 2004. Fiscal first quarter net sales were $13.59 million, up from $8.37 million during the year earlier period. At the end of the first fiscal quarter for 2005, KMG had total assets of $44.17 million and long-term debt of $10.84 million. The company had $2.57 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $3.5 million revolving credit facility. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year. David Hatcher, chairman and president of KMG Chemicals, said, "Our first quarter's growth was driven by the three successful acquisitions completed last fiscal year, as well as strong demand by the railroads for treated wooden crossties. Additionally, we introduced a new product in the first quarter named Beetle Shield to help poultry growers with their insect infestation problems. The product is filling an important niche in that market, with very encouraging initial results and a promising future." "I have previously stated that we anticipate fiscal 2005 will be a very successful year with regards to sales and earnings growth, despite the continued pressure we are facing from high raw material prices," continued Hatcher. "KMG's first-quarter results are a strong first step in proving that to be true, and represent our third consecutive quarter of comparable period earnings growth. We continue working to increase shareholder value, pursuing acquisitions that are accretive to earnings and cash flow, and striving to maximize the profitability of our existing business."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS ANNOUNCES NEW INSECTICIDE PRODUCT FOR POULTRYRabon 3% Beetle Shieldä is launched to combat litter beetle problem in poultry houses HOUSTON, October 28, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced the introduction of its new insecticide dust, Rabon 3% Beetle Shield, for use in poultry houses to control darkling litter beetles. The introduction of Rabon 3% Beetle Shield is in response to the increasing resistance of darkling litter beetles to pyrethroid insecticides and the rising demand for dust formulations in poultry houses. KMG is committed to working closely with the poultry industry and also offers the liquid spray, Ravap, as well as Rabon 50WP, to poultry growers. KMG's Beetle Shield product can be used as an alternative to the commonly used pyrethroid products, or in rotation with them, to counter the build-up of resistance to pyrethroids. Beetle Shield has proven to be effective on darkling litter beetles in several trials conducted across the United States and is cost competitive with alternative products. KMG's Rabon products now include:
For more information on Rabon 3% Beetle Shield, or any other of KMG's animal health products, please contact: Randy Berry, KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS REPORTS FISCAL 2004 RESULTS AND SECOND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTHRecord sales and three successful acquisitions achieved in 2004. Significant growth projected for fiscal 2005. HOUSTON, October 12, 2004 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the fourth fiscal quarter and year ended July 31, 2004. For the fourth quarter of the 2004 fiscal year, net income was $934 thousand or $.12 per diluted share versus $752 thousand or $.10 per diluted share in the fourth quarter of 2003. Fiscal fourth quarter sales were $14.3 million, up from $12.2 million in the same quarter a year earlier. For fiscal 2004, net income was $1.8 million or $.23 per diluted share compared to $1.9 million or $.25 per diluted share in fiscal 2003. Net sales increased to a record $43.6 million for the year, up 23% from the $35.5 million in net sales for the previous fiscal year. The increase in sales was largely the result of higher sales volumes of industrial wood treating chemicals, resulting from the acquisition of two key distributors during the year, as well as increased demand by railroads for treated crossties. Gross profit margins declined to 29.2% from 31.8% due to higher raw material costs, as well as a shift in the product mix of the company's sales. At the end of fiscal 2004, the company had total assets of $43.2 million, a 34% increase over the $32.3 million in assets a year earlier. Cash and cash equivalents on July 31, 2004 totaled approximately $974 thousand. Long-term debt had increased to $11.2 million from $4.3 million last year. The additional long-term debt was used to partially fund the company's acquisition program in 2004. A distributor of pentachlorophenol, a wood treating chemical, was acquired in December 2003. In June 2004, a distributor of the wood treating chemical, creosote, was acquired. Also in June, an insecticidal spray used on poultry and livestock, Ravap, was acquired to expand the company's animal health product portfolio. David Hatcher, Chairman and President of KMG Chemicals, said, "KMG turned the corner in 2004. The second half of the fiscal year marked an upswing in the company's sales and profitability. At the same time, we have greatly strengthened our management team with the addition of Neal Butler as our new Chief Operating Officer, Randy Berry as our animal health product manager, and David Bullock as our product manager for penta. These three new hires in 2004 increase the depth and capabilities of our management group and position us well for the future growth we see. Both the third and the fourth quarters of 2004 were significantly more profitable than the same quarters in 2003 despite the increased overhead of our expanded management team." " We completed three strategic acquisitions in 2004 that are each accretive to cash flow and earnings. We are now positioned to reap the rewards of the investments we have made over the last two years. Sales in 2005 are projected to exceed $50 million, and we anticipate significant double-digit growth in earnings," continued Hatcher. "However, the variable that is most difficult to predict is raw material pricing." Hatcher concluded, "We have significantly grown the company over the last two years, despite difficult market conditions, while maintaining a conservative balance sheet, as well as positive earnings and cash flow. We continue to pay a dividend, which has steadily increased over the last five years. We returned over 8% to shareholders during 2004 in dividends and increased shareholder equity. While this is below our long-term historical 20% rate, we anticipate this improving significantly in 2005."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDENDHOUSTON, August 18, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on September 15, 2004 to shareholders of record as of September 2, 2004. This increases the company's annual dividend rate to $0.07 per common share. As of January 31, 2004, there were approximately 7.55 million common shares outstanding. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS ADDED TO THE NEW RUSSELL MICROCAPT INDEXHOUSTON, TX - July 5, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it was added to the new Russell MicrocapT Index. The Russell Microcap Index is comprised of the smallest 1,000 securities in the Russell 2000® Index plus the next 1,000 companies below the Index based on total market capitalization. More than $2.5 trillion in assets are benchmarked to Russell Indexes, including more than $450 billion invested in passive index funds that use them as a model. David Hatcher, KMG's Chairman and CEO, stated, "We are pleased to be added to the Russell Microcap Index. KMG's inclusion in this Index will increase our visibility with investors and institutions that rely on the Russell Indexes as a key part of their investment strategy." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: Investor Relations Counsel: KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL ASSETS FROM OCCIDENTAL CHEMICAL CORPORATIONHOUSTON, TX - June 7, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has acquired certain assets used in the manufacture and sale of pentachlorophenol ("penta") from a wholly owned subsidiary of Occidental Chemical Corporation. Terms were not disclosed. "Occidental acquired these penta assets when it recently purchased Vulcan Chemicals, but decided against entering the penta business. We believe our acquisition of certain manufacturing equipment and intangible assets associated with the penta business is indicative of the commitment we have to this market," said David Hatcher, KMG's Chairman and CEO. Penta is currently manufactured and sold by KMG to the majority of wood treaters in North America who use the product to treat utility poles that are then sold to electric and telecommunications companies. "We believe our penta revenues are going to increase by over $3 million per year. More importantly, we anticipate achieving greater operating efficiencies as a result of increased throughput at our penta plant," continued Hatcher. "The equipment included in this acquisition will be used to back-up KMG's existing penta plant, thereby assuring security-of-supply for this important wood preservative." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: Investor Relations Counsel: KMG CHEMICALS ANNOUNCES THIRD QUARTER RESULTS WITH NET INCOME UP 61% ON 24% SALES INCREASEHOUSTON, TX - May 19, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the third quarter and nine-month period ended April 30, 2005. Third Quarter Financial Highlights - versus fiscal 2004 third quarter
Nine-month Financial Highlights - versus the first nine months of 2004
Due to the seasonality of sales, particularly the Company's agricultural and animal health products, revenue and earnings are typically skewed to the second half of the fiscal year. As of April 30, 2005, KMG had cash of $6.9 million, total assets of $50.4 million, long-term debt of $10.0 million, and no borrowings outstanding under its $5.0 million credit facility. David Hatcher, KMG's Chairman and CEO, stated, "We are very pleased with the results for the third quarter, which marked the highest quarterly sales level in the Company's history, as well as our fifth consecutive quarter of comparable period earnings growth. We have achieved higher sales across our entire product portfolio thus far this year. Demand by the railroads for crossties treated with creosote has been particularly strong, a trend we see continuing through the fourth quarter of fiscal 2005." Mr. Hatcher continued, "We are proud to note that these financial results were realized despite record high raw material costs. This performance was the result of our successful acquisition program and the efforts of our management team." Mr. Hatcher also stated, "On April 21st, we completed a $6.0 million private equity placement that strengthened our balance sheet and broadened our institutional shareholder base. The capital infusion enables us to continue to execute our growth-through-acquisitions strategy. We continue to work our pipeline of acquisition opportunities and are hopeful we will complete another transaction in the near term. We look forward to updating you on our progress."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: KMG CHEMICALS COMPLETES $6 MILLION PRIVATE EQUITY PLACEMENTHOUSTON, TX - April 21, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the Company completed a $6.0 million private equity placement. Tontine Capital Partners, L.P., an institutional investor based in Greenwich, CT, invested $5.0 million in KMG, while Terrier Partners L.P., a New York City-based fund that has taken significant positions in peer companies, invested $1.0 million. Both Tontine and Terrier were shareholders of KMG prior to this transaction. The transaction consisted of 1.2 million shares of KMG common stock priced at $5.00 per share. This financing enhances KMG's capital base and enables the Company to take advantage of the acquisition opportunities available in the marketplace. Additionally, the transaction represents a key step toward building institutional ownership in the Company's stock. David Hatcher, KMG's Chairman and CEO, stated, "I am delighted that Tontine and Terrier have increased their positions in the Company substantially. We see it as a vote of confidence in KMG, our business model and the management team." Mr. Hatcher continued, "There is no shortage of attractive acquisition opportunities and we fully intend to put this additional capital to work in fairly short order. We have successfully completed four acquisitions over the past 28 months, and remain very enthusiastic about KMG's near and long-term growth prospects." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.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. Company contact: John V. Sobchak Chief Financial Officer (713) 600-3814 jsobchak@kmgchemicals.com Investor Relations Counsel: The Equity Group Inc. Loren G. Mortman 212-836-9604 Lauren Barbera 212-836-9610 LBarbera@equityny.com www.theequitygroup.com KMG CHEMICALS PROMOTES NEAL BUTLER TO PRESIDENTMove positions company for its next stage of growth. HOUSTON, February 28, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced today that J. Neal Butler has been promoted to the position of president. Neal Butler joined KMG Chemicals in March 2004 as chief operating officer. He will retain that title in addition to being named president, and will continue to report to chairman and chief executive officer David Hatcher. "Neal has done an outstanding job managing our operations and directing the integration of our acquisitions," Hatcher said. "The results of his leadership are reflected in the solid earnings growth KMG has delivered for its shareholders this past year. Over the last 14 months, we have completed three acquisitions. Integrating acquisitions while maintaining our cost-conscious focus and lean operations is a core competency necessary to maintaining the 20 percent-plus compound annual growth rate our shareholders have enjoyed since 1988." Hatcher called Butler's appointment the "final step" in building the management team for the company's next stage of growth. With Butler as president, Hatcher will dedicate more time to strategic efforts, including growing the company. "The company has a full acquisition pipeline and consistent deal flow due to the creation of a professional acquisition program by our CFO," he said. "This fiscal year, KMG will exceed $50 million in sales. Our next goal is to pass the $100 million mark, while delivering corresponding increases in profits and shareholder value." In addition to Hatcher and Butler, KMG Chemicals' senior management team includes John Sobchak, chief financial officer, and Roger Jackson, general counsel. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: John V. SobchakBack To Top Chief Financial Officer (713) 600-3814 jsobchak@kmgchemicals.com KMG CHEMICALS ANNOUNCES STRONG SECOND QUARTER RESULTS, WITH EARNINGS UP 526% FOR THE FIRST HALF OF FISCAL 2005Successful acquisition program continues to fuel growth HOUSTON, February 17, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2005 quarter ended January 31, 2005. For the second fiscal 2005 quarter, net income was $0.44 million or $0.06 per diluted share, up from a loss of ($0.14 million) or ($0.02) per diluted share reported for the same period last year. Fiscal second quarter net sales were $12.48 million, up from $8.54 million during the year earlier period. For the first six months ended January 31, 2005, net income was $1.12 million or $0.14 per diluted share, up from $0.18 million, or $0.02 per diluted share for the first half of fiscal 2004. Net sales were $26.07 million for the first half of the year versus $16.91 million last year. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year. At the end of the second fiscal quarter for 2005, KMG had total assets of $42.87 million and long-term debt of $10.44 million. The company had $1.96 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $5.0 million revolving credit facility. "The four acquisitions we have closed over the last 26 months have all been successful and are continuing to provide growth to the bottom line," said David Hatcher, KMG's chairman and president. "In addition, the demand for treated wood crossties by the railroads remains strong and is expected to continue at these above average levels through the rest of the fiscal year, significantly impacting our financial results." "This is KMG's fourth quarter of comparable period earnings growth. Over the last two years, we have expanded our management team significantly, bringing on the talent necessary to take this company to the next level," continued Hatcher. "The ongoing improvement in our financial performance has been achieved during a period when the company has experienced record high raw material prices, and is indicative of what our management team can accomplish."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDENDHOUSTON, February 16, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on March 15, 2005 to shareholders of record as of February 28, 2005. The company's current annual dividend rate is $0.07 per common share. As of January 31, 2005, there were approximately 7.58 million common shares outstanding. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: FEDERAL AGENCY FOR ENVIRONMENTAL PROTECTION IN MEXICO AWARDS KMG CHEMICALS WITH A "CLEAN INDUSTRY CERTIFICATE"Second consecutive award earned by KMG's Matamoros plant HOUSTON, January 18, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its plant in Matamoros, Mexico has recently been awarded a Clean Industry Certificate by PROFEPA, the Federal Agency for Environmental Protection in Mexico. The Clean Industry Certificate requires that plants meet the highest environmental standards for chemical plants available worldwide. Neal Butler, chief operating officer of KMG, said, "We are delighted to have won this important award for the second consecutive review period. KMG takes its environmental responsibility very seriously. The tone is set at the top and it is a part of our corporate culture." Butler continued, "Our employees in Matamoros, Mexico have done an exemplary job. It is gratifying to see that the investment of time, money and resources the company has made in this area has been so effective and duly recognized." KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS SECURES NEW REVOLVING CREDIT FACILITYHOUSTON (Dec. 16, 2004) -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced that it obtained a $5.0 million revolving credit facility with a three-year term from SouthTrust Bank. The new revolver replaces the $3.5 million facility set to mature on January 31, 2005. The company intends to use the new credit facility as needed for general corporate purposes and working capital requirements. "KMG has a long history with SouthTrust Bank and we value that relationship," said Vice President and Chief Financial Officer, John V. Sobchak. "Currently we have no borrowings under our revolving credit facility, and we have a growing cash position. However, this facility provides KMG with greater financial flexibility as we continue to execute our growth strategy." South Trust Bank is a wholly owned subsidiary of the Wachovia Corporation. Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve approximately 14 million client relationships (including households and businesses), primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and Washington, D.C. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through wachovia.com. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS ANNOUNCES FIRST QUARTER NET INCOME UP 111% OVER PREVIOUS YEAR, WITH A 62% INCREASE IN REVENUECompany posts third consecutive quarter of comparable period earnings growth. HOUSTON (November 18, 2004) - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2005 quarter ended October 31, 2004. For the first fiscal 2005 quarter, net income was $0.67 million or $0.09 per diluted share, up from $0.32 million or $0.04 per diluted share reported for the same quarter in fiscal 2004. Fiscal first quarter net sales were $13.59 million, up from $8.37 million during the year earlier period. At the end of the first fiscal quarter for 2005, KMG had total assets of $44.17 million and long-term debt of $10.84 million. The company had $2.57 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $3.5 million revolving credit facility. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year. David Hatcher, chairman and president of KMG Chemicals, said, "Our first quarter's growth was driven by the three successful acquisitions completed last fiscal year, as well as strong demand by the railroads for treated wooden crossties. Additionally, we introduced a new product in the first quarter named Beetle Shield to help poultry growers with their insect infestation problems. The product is filling an important niche in that market, with very encouraging initial results and a promising future." "I have previously stated that we anticipate fiscal 2005 will be a very successful year with regards to sales and earnings growth, despite the continued pressure we are facing from high raw material prices," continued Hatcher. "KMG's first-quarter results are a strong first step in proving that to be true, and represent our third consecutive quarter of comparable period earnings growth. We continue working to increase shareholder value, pursuing acquisitions that are accretive to earnings and cash flow, and striving to maximize the profitability of our existing business."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: ANNOUNCES NEW INSECTICIDE PRODUCT FOR POULTRYRabon 3% Beetle Shieldä is launched to combat litter beetle problem in poultry houses HOUSTON, October 28, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced the introduction of its new insecticide dust, Rabon 3% Beetle Shield, for use in poultry houses to control darkling litter beetles. The introduction of Rabon 3% Beetle Shield is in response to the increasing resistance of darkling litter beetles to pyrethroid insecticides and the rising demand for dust formulations in poultry houses. KMG is committed to working closely with the poultry industry and also offers the liquid spray, Ravap, as well as Rabon 50WP, to poultry growers. KMG's Beetle Shield product can be used as an alternative to the commonly used pyrethroid products, or in rotation with them, to counter the build-up of resistance to pyrethroids. Beetle Shield has proven to be effective on darkling litter beetles in several trials conducted across the United States and is cost competitive with alternative products. KMG's Rabon products now include:
For more information on Rabon 3% Beetle Shield, or any other of KMG's animal health products, please contact: Randy Berry, KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS REPORTS FISCAL 2004 RESULTS AND SECOND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTHRecord sales and three successful acquisitions achieved in 2004. Significant growth projected for fiscal 2005 .HOUSTON, October 12, 2004 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the fourth fiscal quarter and year ended July 31, 2004. For the fourth quarter of the 2004 fiscal year, net income was $934 thousand or $.12 per diluted share versus $752 thousand or $.10 per diluted share in the fourth quarter of 2003. Fiscal fourth quarter sales were $14.3 million, up from $12.2 million in the same quarter a year earlier. For fiscal 2004, net income was $1.8 million or $.23 per diluted share compared to $1.9 million or $.25 per diluted share in fiscal 2003. Net sales increased to a record $43.6 million for the year, up 23% from the $35.5 million in net sales for the previous fiscal year. The increase in sales was largely the result of higher sales volumes of industrial wood treating chemicals, resulting from the acquisition of two key distributors during the year, as well as increased demand by railroads for treated crossties. Gross profit margins declined to 29.2% from 31.8% due to higher raw material costs, as well as a shift in the product mix of the company's sales. At the end of fiscal 2004, the company had total assets of $43.2 million, a 34% increase over the $32.3 million in assets a year earlier. Cash and cash equivalents on July 31, 2004 totaled approximately $974 thousand. Long-term debt had increased to $11.2 million from $4.3 million last year. The additional long-term debt was used to partially fund the company's acquisition program in 2004. A distributor of pentachlorophenol, a wood treating chemical, was acquired in December 2003. In June 2004, a distributor of the wood treating chemical, creosote, was acquired. Also in June, an insecticidal spray used on poultry and livestock, Ravap, was acquired to expand the company's animal health product portfolio. David Hatcher, Chairman and President of KMG Chemicals, said, "KMG turned the corner in 2004. The second half of the fiscal year marked an upswing in the company's sales and profitability. At the same time, we have greatly strengthened our management team with the addition of Neal Butler as our new Chief Operating Officer, Randy Berry as our animal health product manager, and David Bullock as our product manager for penta. These three new hires in 2004 increase the depth and capabilities of our management group and position us well for the future growth we see. Both the third and the fourth quarters of 2004 were significantly more profitable than the same quarters in 2003 despite the increased overhead of our expanded management team." " We completed three strategic acquisitions in 2004 that are each accretive to cash flow and earnings. We are now positioned to reap the rewards of the investments we have made over the last two years. Sales in 2005 are projected to exceed $50 million, and we anticipate significant double-digit growth in earnings," continued Hatcher. "However, the variable that is most difficult to predict is raw material pricing." Hatcher concluded, "We have significantly grown the company over the last two years, despite difficult market conditions, while maintaining a conservative balance sheet, as well as positive earnings and cash flow. We continue to pay a dividend, which has steadily increased over the last five years. We returned over 8% to shareholders during 2004 in dividends and increased shareholder equity. While this is below our long-term historical 20% rate, we anticipate this improving significantly in 2005."
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDENDHOUSTON, August 18, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on September 15, 2004 to shareholders of record as of September 2, 2004. This increases the company's annual dividend rate to $0.07 per common share. As of January 31, 2004, there were approximately 7.55 million common shares outstanding. KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.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. Company contact: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home | Contact Us | KMG-Bernuth, Inc. Home Hosting & Maintenance by PlainTalk Media |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||