Stock Monitor: RPM Intl. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 09, 2018 / Active-Investors.com has just released a free earnings report on KMG Chemicals, Inc. (NYSE: KMG). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KMG. The Company reported its first quarter fiscal 2018 operating results on December 07, 2017. The global provider of specialty chemicals and performance materials outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for RPM International Inc. (NYSE: RPM), which also belongs to the Basic Materials sector as the Company KMG Chemicals. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, KMG Chemicals most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=KMG
Earnings Highlights and Summary
For the three months ended October 31, 2017, KMG Chemicals' sales surged 45% to a record $110.66 million compared to $76.50 million in Q1 FY17, representing the first quarter in the Company's history in which quarterly sales exceeded $100 million. The Company's revenue numbers exceeded analysts' estimates by $4.1 million.
During Q1 FY18, KMG Chemicals' GAAP earnings were $5.8 million, or $0.46 per diluted share, compared to $5.7 million, or $0.47 per diluted share, in Q1 FY17. The Company's GAAP EPS included $2.9 million in amortization expenses for Flowchem intangible assets, and $4.2 million in debt extinguishment expense that reduced earnings by $0.36 per diluted share. KMG Chemicals' adjusted diluted EPS increased to a record $0.83 compared to $0.48 reported in the year earlier same quarter. KMG Chemicals' EPS topped Wall Street's estimates of $0.63.
For Q1 FY18, KMG Chemicals' adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) more than doubled to a record $27.5 million from $12.6 million in Q1 FY17.
Segment Results
For Q1 FY18, KMG Chemicals' Electronic Chemicals segment reported sales of $73.8 million, up 10% on a y-o-y basis. Product volume growth primarily drove the sales increase. The segment's operating income surged 40% to $11.3 million on a y-o-y basis versus $8.1 million in the year ago comparable period. The segment's operating income increased due to product volume growth and operating efficiencies, while operating margin improved to 15.3% compared to 12.0% in Q1 FY17. The Electronic Chemicals division's adjusted EBITDA was $14.0 million compared to $11.2 million last year.
During Q1 FY18, KMG Chemicals' Performance Materials segment reported sales of $36.9 million compared to $9.6 million in Q1 FY17. The Company's sales growth reflected contributions from Sealweld and Flowchem, as well as product volume growth in both industrial lubricants and wood treating chemicals. For Q1 FY18, the segment's operating income was $11.6 million, or 31.4% of sales, compared to $3.7 million, or 38.4% of sales, in Q1 FY17. The increase in operating income reflected contributions from Sealweld and Flowchem, as well as product volume growth in both industrial lubricants and wood treating chemicals. The segment's operating margins were 31.4% compared to 38.4% in the year earlier corresponding quarter, primarily due to higher depreciation and amortization expenses related to the acquisitions of Sealweld and Flowchem. The segment's adjusted EBITDA was $15.6 million compared to $3.9 million in Q1 FY17.
Cash Matters
During Q1 FY18, KMG Chemicals' cash flow generated by operations was $20.5 million compared to $10.9 million in Q1 FY17, reflecting an 88% improvement on a y-o-y basis. The Company's reported cash flow benefitted from the acquisitions of Sealweld and Flowchem, other non-cash adjustments in the period, and improvements in working capital.
In Q1 FY18, KMG Chemicals significantly reduced its debt using the approximately $176 million in proceeds from the follow-on offering plus an additional $2 million of cash generated from operations. As of October 31, 2017, the Company's long-term debt was $352.9 million compared to $526.3million at the end of FY17.
Stock Performance Snapshot
January 08, 2018 - At Monday's closing bell, KMG Chemicals' stock slightly climbed 0.48%, ending the trading session at $64.51.
Volume traded for the day: 150.69 thousand shares.
Stock performance in the last month – up 21.21%; previous three-month period – up 19.22%; past six-month period – up 28.94%; and last twelve-month period – up 61.88%
After yesterday's close, KMG Chemicals' market cap was at $996.03 million.
Price to Earnings (P/E) ratio was at 33.77.
The stock has a dividend yield of 0.19%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry. This sector was up 0.3% at the end of the session.
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