HOUSTON, May 21 /PRNewswire/ -- KMG Chemicals, Inc. (Nasdaq: KMGB), a specialty chemical producer for niche markets, today announced its unaudited financial results for the fiscal third quarter and nine months ended April 30, 1999. For the fiscal third quarter, the company reported net income of $1,171,443 or $.17 per basic and diluted share on sales of $9,234,191. This compares with net income of $866,130 or $.12 per basic and diluted share on sales of $5,596,462 for the same period the prior year. This represents a 35 percent increase in net income and a 65 percent increase in net sales. For the nine months, net income was $2,744,735 or $.39 per basic and diluted share on sales of $27,092,993. This compares with net income of $2,285,671 or $.33 per basic and $.32 per diluted share on sales of $15,392,273 for the same period last year. This represents a 20 percent increase in net income and a 76 percent increase in net sales. "KMG is on-track to meet its projected 1999 fiscal year end revenue growth of approximately 60% over 1998," said David Hatcher, president of KMG Chemicals. "We experienced record growth in the fiscal third quarter and we anticipate achieving our projected revenue and earnings by our fiscal year end of July 1999." KMG Chemicals is a Houston-based holding company whose wholly owned subsidiary, KMG-Bernuth, Inc., is a manufacturer and distributor of specialty chemicals into niche markets. The primary production facility of KMG-Bernuth, Inc. is located in Matamoros, Mexico, and operated by another subsidiary company, KMG de Mexico. The company currently serves customers worldwide in the lumber and timber treatment markets with chemicals which preserve and protect wood. Products are distributed from facilities in Tuscaloosa, Alabama; New Orleans, Louisiana; Brownsville, Texas; Houston, Texas; Matamoros, Mexico; Ironton, Ohio; Fairfield, Alabama; and Detroit, Michigan. 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 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. KMG CHEMICALS, INC. SELECTED FINANCIAL DATA (In thousands, except per share data) (UNAUDITED) Three months ended Nine months ended April 30, April 30, 1999 1998 1999 1998 Net sales $9,234 $5,596 $27,093 $15,392 Cost of sales 5,816 3,530 17,850 9,442 Gross profit 3,418 2,066 9,243 5,950 Selling, general and administrative expenses 1,671 900 4,838 2,613 Operating income 1,748 1,166 4,405 3,337 Other income (expense): Interest & dividend income 46 55 145 157 Interest expense (89) -- (306) -- Other 185 176 180 193 Total other income (expense) 142 231 20 350 Income before income tax 1,889 1,397 4,424 3,687 Provision for income tax (718) (531) (1,680) (1,401) Net income $1,171 $866 $2,745 $2,286 Earnings per share: Basic $0.17 $0.12 $0.39 $0.33 Diluted $0.17 $0.12 $0.39 $0.32 Weighted average shares outstanding: Basic 7,000 7,000 7,000 7,000 Diluted 7,067 7,046 7,064 7,045 Please see notes to consolidated financial statements. Note: News releases and other information on KMG Chemicals, Inc. can be accessed at no charge at www.ctaonline.com/kmgb on the Internet.  