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KMG CHEMICALS INC

No Longer Reporting

The company has not filed an annual or quarterly report since its FY2018 10-K, filed Oct 1, 2018. Its latest SEC filing is a EFFECT from Nov 27, 2018.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Makes and distributes high-purity chemicals used by semiconductor, solar-cell and flat-panel-display manufacturers. Also sells pipeline products and services to pipeline and oilfield operators, and wood preservatives to industrial customers.

Who Were Their Customers?

Semiconductor manufacturers buy electronic chemicals through an internal sales force and distributors. Pipeline and wood-treatment products are sold through an internal sales force, distributors and independent agents to pipeline and oilfield operators and industrial customers.

Customers above 10% of revenue, FY2018
of revenue from one customer
FY2016: 26% from one customer

Did Revenues Turn Into Profits?

Yes. It kept 14 cents of every revenue dollar as net income in FY2018 and turned 14 cents into free cash flow.

Operating income, FY2018
19% of revenue
▲ +136% vs FY2017 ($37.3M, 11%)
Net income, FY2018
14% of revenue
▲ +174% vs FY2017 ($23.6M, 7%)
Free cash flow, FY2018
14% of revenue
▲ +102% vs FY2017 ($31.8M, 10%)

How Were They Changing?

Since the FY2018 annual report
  • Nov 16, 2018 Cabot Microelectronics completed its acquisition of KMG KMG became a wholly owned subsidiary, and trading in its shares on the NYSE was suspended.

Expanded pipeline offerings The pipeline business expanded from industrial valve lubricants and sealants to include drag-reducing agents, related equipment, routine and emergency maintenance, and operator training.

Revenue over time
Electronic Chemicals Performance Materials Other Chemicals
$500M$250M$0

Who Did They Compete With?

Competes with Honeywell, Kanto, Avantor, BASF, Technic, LiquidPower Specialty Products, Baker Hughes, Flowserve, and JetLube

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