KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of
specialty chemicals in carefully focused markets, today announced
preliminary earnings expectations for the fiscal second quarter ended
January 31, 2012, declared a 20% increase in the Company's quarterly
cash dividend, and scheduled the release of its second quarter financial
results and conference call.
Neal Butler, President and CEO of KMG, stated, "We are pleased with the
performance of the business for the fiscal 2012 second quarter and,
barring any substantial economic downturn, remain confident in our
ability to generate significantly improved results in fiscal 2012 as
compared to fiscal 2011. Overall demand for our products remains
healthy, we are realizing the anticipated post-consolidation
efficiencies at our Electronic Chemicals business, and our financial
position remains strong. However, during the fiscal 2012 second quarter,
we incurred non-recurring expenses of approximately $1.5 million that
unfavorably impacted our results. Those expenses related to waste
disposal costs at our Tuscaloosa facility, discontinued operations at
our Matamoros facility, and final inventory adjustments following our
exit from a tolling arrangement in our Electronic Chemicals business. We
therefore expect that net income for the second quarter of fiscal 2012
will approximate net income of $2.4 million, or $0.21 per diluted share,
reported in the second quarter of fiscal 2011."
Dividend Increase
KMG also announced that its Board of Directors has declared a 20%
increase in the Company's quarterly cash dividend to $0.03 per share
from $0.025 per share. The $0.03 per share cash dividend is payable on
March 16, 2012 to stockholders of record as of March 9, 2012. As of
February 28, 2012 there were approximately 11.3 million KMGB common
shares outstanding.
Mr. Butler commented, "The increase in our cash dividend reflects the
confidence of our Board and management team in KMG's future performance
and long-term growth prospects."
Second Quarter Results & Conference Call
KMG will further elaborate on its second quarter financial results on
Friday, March 9, 2012, when it issues a news release prior to the open
of the stock market and conducts its quarterly conference call, hosted
by Neal Butler, and John Sobchak, CFO at 10:00 a.m.