Also, the company achieved a milestone in the first quarter of fiscal 2018, with quarterly sales exceeding $100 million for the first time in its history.
Strong organic growth within the company's existing businesses, as well as contributions from its two most recent acquisitions — Sealweld and Flowchem — drove its performance in the first quarter, which included quarterly records in adjusted EBITDA and adjusted earnings per share.
First quarter performance materials segment sales more than tripled from the same period last year to a record $36.9 million.
Benefiting from increased oil production in the U.S., Flowchem performed well and contributed substantially to its results.
The company's industrial lubricants business continued to generate robust year-over-year growth, aided by strengthening demand and the contribution from Sealweld. In addition, sales in its wood treating chemicals business improved from the prior year.
Looking over at its Electronic chemicals segment, sales reached a record $73.8 million in the first quarter, an increase of 10% from the prior year, reflecting broad-based demand for KMG's high-purity process chemicals throughout the global semiconductor manufacturing sector.
Segment operating income grew 40% from last year's first quarter due to strong product volume growth, while segment operating margins increased to a record 15.3% on enhanced operating leverage and greater efficiency.
Meanwhile, cash flow generated by operations almost doubled to $20.5 million compared to $10.9 million in last year's first quarter.
And back in October, the company reducing its interest expense and significantly reduced its debt leverage after raising net proceeds of approximately $176 million from a successful common stock offer.
Looking ahead, the company said, " Our fiscal 2018 year is off to a strong start. We will review and update our annual financial outlook at our customary time when we report our second quarter results."
KMG Chemicals (KMG), through its subsidiaries, produces and distributes specialty chemicals and performance materials for the semiconductor, industrial wood preservation, and pipeline and energy markets.
Pre-market, shares of KMG are trading 7.2% higher.