KMGB » Topics » Selling, General and Administrative Expenses

This excerpt taken from the KMGB 10-Q filed Jun 9, 2009.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses decreased $1.3 million in the third quarter of fiscal year 2009 to $9.9 million, or 21.6% of net sales, from $11.2 million, or 22.3% of net sales, for the same quarter of the prior fiscal year. In the first nine months of fiscal year 2009, selling, general and administrative expenses increased by $10.6 million to $33.1 million, or 23.3% of net sales, from $22.6 million, or 21.9% of net sales. Selling, general and administrative expenses associated with our two electronic chemicals segments were approximately $6.2 million and $20.3 million for the third quarter and first nine months of fiscal year 2009, respectively, and $7.0 million for the third quarter of fiscal year 2008. Although we discontinued transitional services with Air Products and Chemicals, Inc. at the end of September 2008, we incurred substantial costs for transitional services until then, along with fees to consultants assisting in the integration of the business. Those fees were approximately $434,000 for the first quarter of fiscal year 2009. We purchased transitional services from Air Products in the first two months of the first quarter of fiscal year 2009, while at the same time we had built and staffed our post-transition infrastructure so we could complete training and testing. We believe that the redundant infrastructure added approximately $600,000 of additional expense in the first nine months of fiscal year 2009. As part of our effort to reduce costs and inventory, in the third quarter we temporarily curtailed production at our Milan facility. Although that effort had the desired cost-reducing effect, we expensed in the third quarter approximately $655,000 of non-variable manufacturing costs that would normally have been absorbed as part of the cost of inventory.

 

Outside of electronic chemicals, selling, general and administrative expense was flat in the third quarter and in the first nine months of fiscal year 2009 as compared with the prior year periods.  Although we incurred greater expenses over the first nine months of fiscal year 2009 to expand our infrastructure supporting the electronic chemicals business, those expenses have been offset by reductions in other areas such as in warehouse costs and the completion of our amortization of certain wood treating intangible assets.

 

14



 

This excerpt taken from the KMGB 10-Q filed Mar 12, 2009.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses increased $4.1 million in the second quarter of fiscal year 2009 to $11.2 million, or 25.4% of net sales, from $7.1 million, or 22.7% of net sales, for the same quarter of the prior fiscal year. In the first six months of fiscal year 2009, selling, general and administrative expenses increased by $11.9 million to $23.2 million, or 24.1% of net sales, from $11.4 million, or 21.5% of net sales. Selling, general and administrative expenses associated with our two electronic chemicals segments were approximately $6.5 million in the second quarter, and were approximately $14.1 million for the first six months of fiscal year 2009. Although we discontinued transitional services with Air Products at the end of September 2008, we incurred substantial costs for transitional services until then, along with fees to consultants assisting in the integration of the business. Those fees were approximately $434,000 for the first quarter of fiscal year 2009. We purchased transitional services from Air Products in the first two months of the first quarter of fiscal year 2009, while at the same time we had built and staffed our post-transition infrastructure so we could complete training and testing. We believe that the redundant infrastructure added approximately $600,000 in additional expense in the first six month’s period.

 

14



 

Outside of electronic chemicals, selling, general and administrative expense was flat in the second quarter and in the first six months of fiscal year 2009 as compared with the prior year periods.  Although we incurred greater expenses over the first six months of fiscal year 2009 to expand our infrastructure supporting the electronic chemicals business, those expenses have been offset by reductions in other areas such as in warehouse costs and the completion of our amortization of certain wood treating intangible assets.

 

This excerpt taken from the KMGB 10-Q filed Dec 9, 2008.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses increased $7.8 million in the first quarter of fiscal year 2009 to $12.0 million, or 23.0% of net sales, from $4.2 million, or 19.8% of net sales for the same quarter of the prior fiscal year. Selling, general and administrative expenses associated with our electronic chemicals business were approximately $7.6 million in the first quarter. Although we discontinued transitional services with Air Products at the end of September 2008, we incurred substantial costs for transitional services until then, along with approximately $434,000 in fees to consultants assisting in the integration of the business. We purchased transitional services from Air Products in the first two months of the first quarter of fiscal year 2009, while at the same time we had built and staffed our post-transition system so we could complete training and testing. We believe that the redundant systems added approximately $600,000 in additional expense in the first quarter.

 

Outside of electronic chemicals, selling, general and administrative expense was flat in the first quarter as compared with the prior year period.

 

These excerpts taken from the KMGB 10-K filed Oct 14, 2008.
Selling, General and Administrative Expenses —These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers. Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

 

Selling, General and Administrative
Expenses
—These
expenses include selling expenses, product storage and handling costs and the
cost (primarily common carrier freight) of distributing products to the Company’s
customers. Corporate headquarters’ expenses, amortization of intangible assets
and environmental regulatory support expenses are also included.



 



This excerpt taken from the KMGB 10-Q filed Jun 16, 2008.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses increased $7.3 million in the third quarter of fiscal year 2008 to $11.2 million, or 22.3% of net revenue, from $3.9 million, or 14.6% of net revenue for the same quarter of the prior fiscal year.  For the nine month period, those expenses increased $11.3 million to $22.6 million, or 21.9% of net revenue.  Selling, general and administrative expenses associated with our electronic chemicals business were approximately $7.0 million in the third quarter and $9.5 million since December 31, 2007.  Those expenses included charges for transitional services provided by Air Products and approximately $225,000 in the last four months for fees to consultants assisting in the integration of the business.  Although approximately 60% of transitional services are costs from third parties allocated to us by Air Products, about $1.6 million was allocated to us in the third quarter for Air Products’ internal costs, including corporate overhead. We estimate that the transition services provided by Air Products costs us approximately $175,000 per month more than it will cost us to provide those functions internally after the conclusion of transition. We believe that the transitional services will be largely completed by the end of August 2008.  After the transition has been completed, we expect to see savings in selling, general and administrative expenses of approximately $1.0 in fiscal year 2009 over this year on a comparable period basis.  Components of those savings are expected to include reduced costs for accounting and information technology systems, as well as a reduction in supply chain costs.

 

Outside of electronic chemicals, selling, general and administrative expenses increased in the third quarter over the prior year period by about $337,000, and increased $1.5 million for the nine months.  We had increases for the nine months in supply chain costs of approximately $394,000, increased employee, marketing and advertising expenses for animal health of approximately $498,000, and other professional services, including increased accounting and legal services, of approximately $704,000. Supply chain increases consisted of property tax on inventory, rail car maintenance and creosote storage facility costs.  Supply chain expenses included in selling, general and administrative expense were $989,000 in the third quarter of fiscal year 2008, as compared to $882,000 in fiscal year 2007, and $2.7 million in the first nine months of this fiscal year, as compared to $2.3 million in the prior fiscal year.  The increase in both the quarter and the nine months was primarily due to increased sales.  Accounting and legal expenses increased because of higher auditing costs, Sarbanes Oxley compliance costs and higher litigation expense.

 

This excerpt taken from the KMGB 10-Q filed Mar 17, 2008.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses increased $3.1 million in the second quarter of fiscal year 2008 to $7.1 million, or 22.7% of net revenue, from $4.1 million, or 21.4% of net revenue for the same quarter of the prior fiscal year.  For the six month comparison, those expenses increased $4.0 million to $11.4 million, or 21.5% of net revenue.  Selling, general and administrative expenses associated with the electronic chemicals business were approximately $2.5 million, including charges for transitional services provided by Air Products and approximately $185,000 in the first quarter on fees to consultants assisting in the integration of the HPPC business.  After the transition has been completed, we believe that we will save approximately $175,000 per month on items included in the transitional services provided by Air Products.  Selling, general and administrative expenses increased elsewhere in the second quarter over the prior year period in supply chain costs of approximately $280,000, increased employee, marketing and advertising expense for animal health of approximately $430,000, and increased accounting and legal services of approximately $350,000.  Supply chain increases consisted of

 

16



 

property tax on inventory, rail car maintenance and creosote storage facility costs.  Accounting and legal expenses increased because of higher auditing costs, Sarbanes Oxley compliance costs and higher litigation expense.

 

This excerpt taken from the KMGB 10-Q filed Dec 17, 2007.

Selling, General and Administrative Expenses

 

Selling, general, and administrative expenses increased $953,000 in the first quarter of fiscal year 2008 to $4.2 million, or 19.8% of net revenue, from $3.3 million, or 19.4% of net revenue for the same quarter of the prior fiscal year.  Selling, general and administrative expenses saw increases in the first quarter over the prior year period in supply chain costs of approximately $218,000, increased employee costs of approximately $271,000, and increased accounting and legal services of approximately $282,000.  Supply chain increases consisted of property tax on inventory, rail car maintenance and creosote storage facility costs.  We also incurred expense of approximately $59,000 in the first quarter related to our pending acquisition of a high purity process chemicals business.

 

This excerpt taken from the KMGB 10-K filed Oct 16, 2007.
Selling, General and Administrative Expenses —These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers. Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

 

This excerpt taken from the KMGB 10-Q filed Jun 5, 2007.

Selling, General and Administrative Expenses

Selling, general, and administrative expenses increased $536,000 in the third quarter of fiscal year 2007 to $4.2 million, or 14.9% of net revenue, from $3.6 million, or 17.3% of net revenue, for the same quarter of the prior fiscal year.  Selling, general and administrative expenses increased $443,000 in the first nine months of fiscal year 2007 to $12.1 million, or 18.6% of net revenue, from $11.6 million, or 22.8% of net revenue, in fiscal year 2006.  Distribution expense declined $66,000 in the third quarter of fiscal year 2007 and $1.7 million in the first nine months of fiscal year 2007 as compared to the prior year, because we shifted to FOB pricing on certain of our products. However, in the first nine months of fiscal 2007, costs related to the animal health product lines acquired in February 2006 increased selling, general and administrative expenses by $1.6 million.  Product registration expenses related to agricultural chemicals were also up $215,000 in the first nine months compared to the prior year due to increased regulatory activity.

This excerpt taken from the KMGB 10-Q filed Mar 6, 2007.
Selling, General and Administrative Expenses.  These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers. Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

This excerpt taken from the KMGB 10-Q filed Dec 14, 2006.
Selling, General and Administrative Expenses.  These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers. Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

This excerpt taken from the KMGB 10-K filed Oct 23, 2006.
Selling, General and Administrative Expenses —These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers. Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

This excerpt taken from the KMGB 10-Q filed Jun 9, 2006.

Selling, General and Administrative Expenses

        Selling, general, and administrative expenses increased $777,000 in the third quarter of fiscal year 2006 to $3.6 million, or 17.3% of net revenue, from $2.9 million, or 18.6% of net revenue, for the same quarter of the prior fiscal year. Over the first nine months of fiscal year 2006, these expenses increased by $2.4 million to $11.6 million from $9.2 million in the same period of the prior fiscal year, an increase of 26.1%. Selling, general and administrative expenses were 22.8% of net revenues in the first nine months of fiscal year 2006 and 22.2% of net revenue in that period in the prior fiscal year. Although distribution expense declined in the third quarter of fiscal year 2006 as compared to the prior year because we shifted to pricing at our plant from pricing on a delivered basis for certain of our products, distribution expense increased over the first nine months of fiscal year 2006 based upon greater penta volume. We also experienced increased expense for amortization of penta intangibles acquired in fiscal year 2005, and for supply chain disruptions caused by Hurricanes Katrina and Rita. For the first nine months of fiscal year 2006, approximately $160,000 of the increase was due to increased penta distribution expenses and approximately $1.3 million was due to increased amortization expense. We temporarily lost the use of our creosote terminal near New Orleans due to Hurricane Katrina and incurred additional expense for a substitute interim terminal. We also began amortizing previously issued options and deducting for shares issued to directors and employees, incurring additional expense in fiscal year 2006 of approximately $305,000 over the prior fiscal year.

This excerpt taken from the KMGB 10-Q filed Mar 16, 2006.

Selling, General and Administrative Expenses

 

As a percentage of net revenue, selling, general, and administrative expenses increased slightly in the second quarter of fiscal 2006 to 27.0% from 26.7% for the same quarter of the prior fiscal year. Selling, general and administrative expenses for the second quarter of fiscal 2006 were approximately $870 thousand (26.2%) higher than in that quarter in the prior fiscal year. Over the first six months, these expenses increased $1.6 million (25.7%) over the prior year. In both the second quarter and for the full six months of fiscal 2006, the increase in expense was primarily attributable to penta distribution expense increases on greater volume, increased amortization expense for penta intangibles acquired in fiscal 2005, and supply chain disruptions caused by hurricanes Katrina and Rita. For the first six months of fiscal 2006, about $325 thousand of the increase was due to increased penta distribution expenses, and $800 thousand was for increased amortization expense. We temporarily lost the use of our creosote terminal near New Orleans due to hurricane Katrina, and incurred additional expense for a substitute interim terminal. We also began amortizing previously issued options and deducting for shares issued to directors, incurring additional expense in fiscal 2006 of approximately $250 thousand over the prior year.

 

15



 

This excerpt taken from the KMGB 10-Q filed Dec 14, 2005.

Selling, General and Administrative Expenses

 

As a percentage of net revenue, selling, general, and administrative expenses increased in the first quarter of this fiscal year to 26.3% from 22.2% for the same quarter of the prior fiscal year.  Selling, general and administrative expenses for the first quarter of fiscal 2006 were approximately $761 thousand (25.2%) higher than in that quarter in the prior fiscal year.  About $200 thousand of the increase was due to increased penta distribution expenses on greater volume, and about $400 thousand of the increase was for amortization expense for penta intangibles acquired in fiscal 2005.  We temporarily lost the use of our creosote terminal near New Orleans due to Hurricane Katrina, and incurred additional expense for a substitute interim terminal.

 

This excerpt taken from the KMGB 10-K filed Oct 31, 2005.
Selling, General and Administrative Expenses — These expenses include selling expenses, product storage and handling costs and the cost (primarily common carrier freight) of distributing products to the Company’s customers.  Corporate headquarters’ expenses, amortization of intangible assets and environmental regulatory support expenses are also included.

 

This excerpt taken from the KMGB 10-Q filed Jun 14, 2005.

Selling, General and Administrative Expenses

 

As a percentage of net revenue, selling, general, and administrative expenses decreased in the third quarter of this fiscal year to 18.6% from 20.4% for the third quarter of the prior fiscal year.  Those expenses also decreased as a percentage of net revenue for the nine-month comparison, declining to 22.2% this fiscal year from 24.5% for the last fiscal year.

 

Selling, general and administrative expenses for the third quarter of fiscal 2005 were approximately $329 thousand (13.0%) higher than in the same quarter of the prior fiscal year.  For the nine-month period, the increase over the prior year was $2.0 million (28.3%).  About $270 thousand of the increase in the third quarter, and $1.3 million over the first nine months, was from higher selling and distribution expense due to greater creosote and penta sales volume.  Performance based incentive compensation and the addition of a chief operating officer have increased executive expenses relative to the prior year periods, approximately $131 thousand for the third quarter comparison and $411 thousand for the first nine months.  Amortization of intangibles associated with our fiscal 2004 acquisitions also contributed approximately $26 thousand to the increase in the third quarter over the prior year, and $181 thousand of the increase for nine months’ comparison.

 

This excerpt taken from the KMGB 10-Q filed Mar 15, 2005.

Selling, General and Administrative Expenses

 

As a percentage of net revenue, selling, general, and administrative expenses decreased in the second quarter of this fiscal year to 26.7% from 30.1% for the second quarter of the prior fiscal year.  Those expenses also decreased as a percentage of net revenue for the six-month comparison, declining to 24.4% this fiscal year from 27.5% for the last fiscal year.  Selling, general and administrative expenses for the second quarter of fiscal 2005 were approximately $760 thousand (29.6%) higher than in the same quarter of the prior fiscal year.  For the six-month period, the increase over the prior year was $1.7 million (36.7%).  Most of the increase was from higher selling and distribution expense due to greater creosote and penta sales volume, and higher regulatory costs for each of our products.  The addition of a chief operating officer and a new product manager increased executive compensation relative to the prior year.  Amortization of intangibles associated with our fiscal 2004 acquisitions also contributed to the increase over the prior year.

 

9



 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki