O I L - D R I C O R P O R A T I O N O F A M E R I C A
Consolidated Statements of Income
(in thousands, except for per share amounts)
(unaudited)
Third Quarter Ended April 30,
----------------------------------
% of % of
2010 Sales 2009 Sales
--------- ----- --------- -----
Net Sales $ 56,259 100.0% $ 58,053 100.0%
Cost of Sales (43,089) 76.6% (44,833) 77.2%
--------- ----- --------- -----
Gross Profit 13,170 23.4% 13,220 22.8%
Operating Expenses (9,369) 16.7% (9,631) 16.6%
--------- ----- --------- -----
Operating Income 3,801 6.8% 3,589 6.2%
Interest Expense (337) 0.6% (470) 0.8%
Other Income 251 0.4% 301 0.5%
--------- ----- --------- -----
Income Before Income Taxes 3,715 6.6% 3,420 5.9%
Income Taxes (1,129) 2.0% (1,004) 1.7%
--------- ----- --------- -----
Net Income $ 2,586 4.6% $ 2,416 4.2%
========= ===== ========= =====
Net Income Per Share:
Basic Common $ 0.39 $ 0.37
Basic Class B Common $ 0.29 $ 0.27
Diluted $ 0.35 $ 0.33
Average Shares Outstanding:
Basic Common 5,245 5,149
Basic Class B Common 1,897 1,880
Diluted 7,309 7,187
Nine Months Ended April 30,
----------------------------------
% of % of
2010 Sales 2009 Sales
--------- ----- --------- -----
Net Sales $ 164,397 100.0% $ 180,311 100.0%
Cost of Sales (126,234) 76.8% (142,802) 79.2%
--------- ----- --------- -----
Gross Profit 38,163 23.2% 37,509 20.8%
Operating Expenses (27,527) 16.7% (26,711) 14.8%
--------- ----- --------- -----
Operating Income 10,636 6.5% 10,798 6.0%
Interest Expense (1,052) 0.6% (1,453) 0.8%
Other Income 407 0.2% 330 0.2%
--------- ----- --------- -----
Income Before Income Taxes 9,991 6.1% 9,675 5.4%
Income Taxes (2,949) 1.8% (2,641) 1.5%
--------- ----- --------- -----
Net Income $ 7,042 4.3% $ 7,034 3.9%
========= ===== ========= =====
Net Income Per Share*:
Basic Common $ 1.06 $ 1.07
Basic Class B Common $ 0.80 $ 0.80
Diluted $ 0.96 $ 0.97
Average Shares Outstanding:
Basic Common 5,215 5,136
Basic Class B Common 1,889 1,872
Diluted 7,285 7,193
O I L - D R I C O R P O R A T I O N O F A M E R I C A
Consolidated Balance Sheets
(in thousands, except for per share amounts)
(unaudited)
As of April 30,
-------------------
2010 2009
--------- ---------
Current Assets
Cash and Cash Equivalents $ 21,639 $ 11,680
Investment in Treasury Securities 3,999 3,996
Accounts Receivable, net 26,721 28,711
Inventories 17,390 20,136
Prepaid Expenses 6,643 6,778
--------- ---------
Total Current Assets 76,392 71,301
--------- ---------
Property, Plant and Equipment 61,865 58,542
Other Assets 15,282 14,261
--------- ---------
Total Assets $ 153,539 $ 144,104
========= =========
Current Liabilities
Current Maturities of Notes Payable $ 3,500 $ 3,200
Accounts Payable 5,974 5,887
Dividends Payable 1,003 922
Accrued Expenses 15,999 14,435
--------- ---------
Total Current Liabilities 26,476 24,444
--------- ---------
Long-Term Liabilities
Notes Payable 14,800 18,300
Other Noncurrent Liabilities 18,521 9,958
--------- ---------
Total Long-Term Liabilities 33,321 28,258
--------- ---------
Stockholders' Equity 93,742 91,402
--------- ---------
Total Liabilities and Stockholders' Equity $ 153,539 $ 144,104
========= =========
Book Value Per Share Outstanding $ 13.20 $ 13.04
Acquisitions of Property, Plant and Equipment
Third Quarter $ 3,127 $ 4,925
Year to Date $ 7,945 $ 12,682
Depreciation and Amortization Charges
Third Quarter $ 1,801 $ 1,743
Year to Date $ 5,512 $ 5,427
O I L - D R I C O R P O R A T I O N O F A M E R I C A
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
For the Nine Months
Ended April 30,
------------------
CASH FLOWS FROM OPERATING ACTIVITIES 2010 2009
-------- --------
Net Income $ 7,042 $ 7,034
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 5,512 5,427
Decrease in Accounts Receivable 2,297 2,623
Decrease (Increase) in Inventories 405 (2,392)
Increase (Decrease) in Accounts Payable 1,114 (1,424)
Increase (Decrease) in Accrued Expenses 1,729 (1,676)
Other 1,997 (1,285)
-------- --------
Total Adjustments 13,054 1,273
-------- --------
Net Cash Provided by Operating Activities 20,096 8,307
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (7,945) (12,682)
Net Dispositions of Investment Securities 4,007 17,035
Other 345 22
-------- --------
Net Cash (Used in) Provided by Investing Activities (3,593) 4,375
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on Long-Term Debt (3,200) (5,580)
Dividends Paid (2,995) (2,760)
Purchase of Treasury Stock (2,028) (656)
Other 1,624 256
-------- --------
Net Cash Used in Financing Activities (6,599) (8,740)
-------- --------
Effect of exchange rate changes on cash and cash
equivalents (104) 890
Net Increase in Cash and Cash Equivalents 9,800 4,832
Cash and Cash Equivalents, Beginning of Year 11,839 6,848
-------- --------
Cash and Cash Equivalents, April 30 $ 21,639 $ 11,680
======== ========
Oil-Dri Reports Third Quarter and Nine-Month Results
| Source: Oil-Dri Corporation of America
CHICAGO, IL--(Marketwire - June 8, 2010) - Oil-Dri Corporation of America (NYSE : ODC )
today reported net sales for the third quarter of $56,259,000, a 3%
decrease compared with net sales of $58,053,000 for the same quarter of the
previous year. Net income for the third quarter was $2,586,000, or $0.35
per diluted share, a 6% increase compared with net income of $2,416,000, or
$0.33 per diluted share, in the same quarter one year ago.
Net sales for the nine-month period were $164,397,000, a 9% decrease
compared with net sales of $180,311,000 for the same period one year ago.
Net income for the nine-month period was $7,042,000, or $0.96 per diluted
share, compared with net income of $7,034,000, or $0.97 per diluted share,
in the same period one year ago.
THIRD QUARTER REVIEW
President and Chief Executive Officer Daniel S. Jaffee said, "During the
quarter, earnings were up compared to the third quarter one year ago. This
growth was achieved despite the continued effects from reduced distribution
of our Cat's Pride branded cat litters at Walmart.
"The Business-to-Business Products Group contributed strongly to earnings
growth in the quarter. A combination of increased unit volume and sales of
high value products in our fluids purification and animal health groups
helped to expand gross profit margins in the quarter to 23.4% from 22.8% in
the same quarter one year ago.
"The diversity of our product portfolio and the markets we serve, have been
a benefit through these difficult economic times. Our business remains
healthy, showing substantial cash generation. In addition, during the
quarter we continued repurchasing Common Stock through our buyback
program."
QUARTERLY BUSINESS REVIEW
Net sales for the Company's Business-to-Business Products Group were
$57,577,000 and group income was $15,329,000 for the nine months. Net
sales for the quarter were $21,444,000 and group income was $5,903,000.
Net sales and unit volume were up substantially for fluids purification
clays, animal health enterosorbents and sports field products. Net sales
and volume were down for agricultural chemical carriers due to the
continued decline in this market. Overall costs and expenses for the Group
were down in the quarter.
Net sales for the Company's Retail and Wholesale Products Group were
$106,820,000 and group income was $9,101,000 for the nine months. Net
sales for the quarter were $34,815,000 and group income was $2,769,000.
Shipments of Cat's Pride branded litters increased as a result of Walmart's
limited reinstatement of those products that began shipping in the third
quarter. Net sales and unit volume were up for industrial and automotive
products.
FINANCIAL REVIEW
Net cash provided by operations was $20,096,000 for the nine-month period
compared to $8,307,000 for the nine-month period one year ago. Cash was up
substantially primarily due to improvements in working capital.
Cash, cash equivalents and short-term investments at April 30, 2010,
totaled $25,638,000. Capital expenditures for the nine-month period
totaled $7,945,000, which was $2,433,000 more than the period's
depreciation and amortization of $5,512,000.
On March 11, 2010, Oil-Dri's Board of Directors declared quarterly cash
dividends of $0.15 per share of outstanding Common Stock and $0.1125 per
share of outstanding Class B Stock. The dividends were payable June 4,
2010 to stockholders of record at the close of business on May 21, 2010.
At the third quarter closing price of $20.50 per share and assuming cash
dividends continue at the same rate, the annual yield on the Company's
Common Stock is 2.9%. The Company has paid cash dividends continuously
since 1974 and has increased dividends annually for the past six years.
During the quarter the Company repurchased 78,129 shares of Common Stock at
an average price of $19.07 per share. The Company's current repurchase
authorization has 410,114 shares of Common Stock remaining.
The effective tax rate for the first nine months of fiscal 2010 was 29.5%
compared with 27.3% for the same period in fiscal 2009. The increase in
the rate is based upon the Company's projected level and composition of
income. The percentage of income attributable to higher margin
Business-to-Business products is greater this fiscal year than last fiscal
year.
LOOKING FORWARD
Jaffee continued, "We are optimistic that current sales trends will
continue as we head into the fourth quarter. Our costs for diesel fuel and
global freight, however, have been on the rise recently and we are now
focused on managing those and other costs that are increasing."
The Company will offer a live webcast of the third quarter earnings
teleconference on June 9, 2010 from 10:00 a.m. to 10:30 a.m., Chicago Time.
To listen to the call via the web, please visit www.streetevents.com or
www.oildri.com. An archived recording of the call and written transcripts
of all teleconferences are posted on the Oil-Dri website.
Cat's Pride is a registered trademark of Oil-Dri Corporation of America.
Oil-Dri Corporation of America is a leading supplier of specialty sorbent
products for agricultural, horticultural, fluids purification, specialty
markets, industrial and automotive, and is the world's largest manufacturer
of cat litter.
Certain statements in this press release may contain forward-looking
statements that are based on our current expectations, estimates, forecasts
and projections about our future performance, our business, our beliefs,
and our management's assumptions. In addition, we, or others on our behalf,
may make forward-looking statements in other press releases or written
statements, or in our communications and discussions with investors and
analysts in the normal course of business through meetings, webcasts, phone
calls, and conference calls. Words such as "expect," "outlook,"
"forecast," "would", "could," "should," "project," "intend," "plan,"
"continue," "believe," "seek," "estimate," "anticipate," "believe", "may,"
"assume," variations of such words and similar expressions are intended to
identify such forward-looking statements, which are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995.
Such statements are subject to certain risks, uncertainties and assumptions
that could cause actual results to differ materially including, but not
limited to, the dependence of our future growth and financial performance
on successful new product introductions, intense competition in our
markets, volatility of our quarterly results, risks associated with
acquisitions, our dependence on a limited number of customers for a large
portion of our net sales and other risks, uncertainties and assumptions
that are described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and other reports we file with the Securities and
Exchange Commission. Should one or more of these or other risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, our actual results may vary materially from those anticipated,
intended, expected, believed, estimated, projected or planned. You are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Except to the
extent required by law, we do not have any intention or obligation to
update publicly any forward-looking statements after the distribution of
this press release, whether as a result of new information, future events,
changes in assumptions, or otherwise.