CHICAGO, IL--(Marketwire - October 12, 2010) - Oil-Dri Corporation of America (
NYSE:
ODC)
today announced net sales of $219,050,000 for the fiscal year ended July
31, 2010, a 7% decrease compared with net sales of $236,245,000 for the
previous fiscal year. Net income for the fiscal year was $9,458,000, or
$1.30 per diluted share, a 2% decrease compared with net income of
$9,586,000, or $1.33 per diluted share, for fiscal 2009.
Net sales for the fourth quarter were $54,653,000, a 2% decrease compared
with net sales of $55,934,000 in the same quarter one year ago. Net income
for the quarter was $2,416,000, or $0.33 per diluted share, a 6% decrease
compared with net income of $2,552,000 or $0.35 per diluted share, in the
same quarter one year ago.
FISCAL YEAR REVIEW
President and Chief Executive Officer Daniel S. Jaffee said, "Our business
has done well this fiscal year and we are pleased with the results
considering the significant distribution loss of our Cat's Pride cat litter
due to the brand reduction program implemented by one of our largest
customers. Despite this loss, we were able to increase Cat's Pride sales
with other retail partners through strategic marketing incentives. This
gave us new distribution points and strengthened customer relationships.
"The Business to Business Products Group had increased sales and a
significant increase in income during the fiscal year driven by a
combination of new customers and product sales mix. These increases helped
to offset the Cat's Pride sales reductions. Fluids purification and animal
health products both made significant contributions.
"During the year, the Board of Directors increased dividends for the
seventh year in a row and authorized an additional 250,000 shares for
repurchase under our Common Stock buy-back program.
"Of particular importance this fiscal year has been our cash balance that
now exceeds our notes payable by over $6,000,000. We are very pleased with
the continued improvements in our key metrics as indicated below."
Key Metrics F'10 F'09 F'08 F'07 F'06
-------------- ----------- ----------- ----------- ----------- -----------
Cash, cash
equivalents
& investments $24,621,000 $19,837,000 $27,764,000 $30,027,000 $25,855,000
-------------- ----------- ----------- ----------- ----------- -----------
Net cash
provided
by operations $26,216,000 $15,814,000 $11,341,000 $16,851,000 $10,635,000
-------------- ----------- ----------- ----------- ----------- -----------
Notes payable
minus cash and
equivalents
(debt net
of cash) ($6,321,000) $ 1,663,000 ($684,000) $ 1,133,000 $ 9,385,000
-------------- ----------- ----------- ---------- ----------- -----------
Return on average
stockholders'
equity 10.5% 10.8% 10.8% 10.0% 7.2%
-------------- ----------- ----------- ----------- ----------- -----------
*Net income per
diluted share $1.30 $1.33 $1.25 $1.09 $0.73
-------------- ----------- ----------- ----------- ----------- -----------
Capital
expenditures $10,413,000 $15,253,000 $7,302,000 $7,757,000 $10,827,000
-------------- ----------- ----------- ----------- ----------- -----------
Dividends paid $3,992,000 $3,684,000 $3,377,000 $3,038,000 $2,403,000
-------------- ----------- ----------- ----------- ----------- -----------
Dividends paid
per Common
Stock share $0.60 $0.56 $0.52 $0.48 $0.38
-------------- ----------- ----------- ----------- ----------- -----------
*Net income per diluted share for fiscal years 2009, 2008, 2007 and 2006
have been restated to reflect a new accounting standard effective August 1,
2009. The new standard requires us to include our unvested restricted
stock awards as participating securities in the calculation of net income
per diluted share.
BUSINESS REVIEW
Net sales for the Company's Business to Business Products Group were
$77,423,000 and group income was $19,797,000 for the fiscal year. Net
sales for the quarter were $19,846,000 and group income was $4,468,000.
Group net sales and income were up for the year and the quarter. Net sales
and unit volume in the fourth quarter were up substantially for fluids
purification products. Net sales in the quarter were also up for animal
health and co-packaged products; however, net sales and unit volume were
down in the quarter for agricultural chemical carriers, sports and
flowability products.
Net sales for the Company's Retail and Wholesale Products Group were
$141,627,000 and group income was $11,797,000 for the fiscal year. Net
sales for the quarter were $34,807,000 and group income was $2,696,000.
Group net sales and income were down for the year and the quarter. Net
sales in the fourth quarter were up slightly for industrial products and
Oil-Dri Canada. Net sales and unit volume in the quarter were down for cat
litter products at both grocery and non-grocery retail partners; however,
net sales and unit volume for Cat's Pride scoopable cat litter were up in
the quarter at grocery and other mass merchandise retail partners.
FINANCIAL REVIEW
Cash, cash equivalents and short-term investments at July 31, 2010, totaled
$24,621,000. Net cash provided by operations was $26,216,000 for the
fiscal year compared to $15,814,000 for the same period one year ago. Cash
was up substantially primarily due to improvements in working capital and
reduced capital expenditures. Capital expenditures for the fiscal year
totaled $10,413,000, which was $3,042,000 more than the year's depreciation
and amortization of $7,371,000.
On June 15, 2010, Oil-Dri's Board of Directors declared quarterly cash
dividends of $0.16 per share of outstanding Common Stock and $0.12 per
share of outstanding Class B Stock, a 7% increase. The dividends were
payable September 3, 2010 to stockholders of record at the close of
business on August 20, 2010.
At the fourth quarter closing price of $21.88 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 seven years.
During the fourth quarter, the Company repurchased 176,114 shares of Common
Stock at an average price of $22.49 per share. The Company repurchased
288,243 shares of Common Stock at an average price of $20.77 per share
during the fiscal year. The Company's current repurchase authorization has
234,000 shares of Common Stock remaining.
The Company utilized previously earned alternative minimum tax credits for
the fiscal year, which reduced the Company's effective tax rate in the
fourth quarter to 14.4% and 26.2% for the fiscal year.
LOOKING FORWARD
Jaffee continued, "Fiscal 2011 offers many opportunities for our company.
We have regained some distribution of our Cat's Pride cat litters with our
largest customer and are continuing to develop strong relationships with
other retail partners. We are also continuing to grow our business to
business products worldwide. Our commitment to diversification has
sustained our business through challenging economic times. It is the
strength of diversity that has brought us successfully through fiscal
2010."
The Company will offer a live webcast of the fourth quarter earnings
teleconference on October 13, 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 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.
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)
Fourth Quarter Ended July 31,
----------------------------------------------
2010 % of Sales 2009 % of Sales
---------- ---------- ---------- ----------
Net Sales $ 54,653 100.0% $ 55,934 100.0%
Cost of Sales (43,128) 78.9% (44,059) 78.8%
---------- ---------- ---------- ----------
Gross Profit 11,525 21.1% 11,875 21.2%
Operating Expenses (8,612) 15.8% (8,090) 14.5%
---------- ---------- ---------- ----------
Operating Income 2,913 5.3% 3,785 6.8%
Interest Expense (293) 0.5% (457) 0.8%
Other Income 203 0.4% 306 0.5%
---------- ---------- ---------- ----------
Income Before Income Taxes 2,823 5.2% 3,634 6.5%
Income Taxes (407) 0.7% (1,082) 1.9%
---------- ---------- ---------- ----------
Net Income $ 2,416 4.4% $ 2,552 4.6%
========== ========== ========== ==========
Net Income Per Share*:
Basic Common $ 0.36 $ 0.39
Basic Class B Common $ 0.28 $ 0.29
Diluted $ 0.33 $ 0.35
Average Shares Outstanding:
Basic Common 5,170 5,177
Basic Class B Common 1,897 1,880
Diluted 7,216 7,219
Twelve Months Ended July 31,
----------------------------------------------
2010 % of Sales 2009 % of Sales
---------- ---------- ---------- ----------
Net Sales $ 219,050 100.0% $ 236,245 100.0%
Cost of Sales (169,362) 77.3% (186,861) 79.1%
---------- ---------- ---------- ----------
Gross Profit 49,688 22.7% 49,384 20.9%
Operating Expenses (36,139) 16.5% (34,801) 14.7%
---------- ---------- ---------- ----------
Operating Income 13,549 6.2% 14,583 6.2%
Interest Expense (1,345) 0.6% (1,910) 0.8%
Other Income 610 0.3% 636 0.3%
---------- ---------- ---------- ----------
Income Before Income Taxes 12,814 5.8% 13,309 5.6%
Income Taxes (3,356) 1.5% (3,723) 1.6%
---------- ---------- ---------- ----------
Net Income $ 9,458 4.3% $ 9,586 4.1%
========== ========== ========== ==========
Net Income Per Share*:
Basic Common $ 1.42 $ 1.46
Basic Class B Common $ 1.07 $ 1.09
Diluted $ 1.30 $ 1.33
Average Shares Outstanding:
Basic Common 5,203 5,146
Basic Class B Common 1,891 1,874
Diluted 7,275 7,200
* Net income per share for the fourth quarter and twelve months ending July
31, 2009 have been restated to reflect a new accounting standard effective
August 1, 2009. The new standard requires us to include our unvested
restricted stock awards as participating securities in the calculation of
net income per share.
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 July 31,
-------------------
2010 2009
--------- ---------
Current Assets
Cash and Cash Equivalents $ 18,762 $ 11,839
Investment in Short-term Securities 5,859 7,998
Accounts Receivable, net 27,178 29,000
Inventories 16,023 17,795
Prepaid Expenses 8,367 7,085
--------- ---------
Total Current Assets 76,189 73,717
--------- ---------
Property, Plant and Equipment 62,502 59,485
Other Assets 15,291 16,059
--------- ---------
Total Assets $ 153,982 $ 149,261
========= =========
Current Liabilities
Current Maturities of Notes Payable $ 3,500 $ 3,200
Accounts Payable 6,482 5,304
Dividends Payable 1,043 994
Accrued Expenses 16,766 14,270
--------- ---------
Total Current Liabilities 27,791 23,768
--------- ---------
Long-Term Liabilities
Notes Payable 14,800 18,300
Other Noncurrent Liabilities 20,802 17,630
--------- ---------
Total Long-Term Liabilities 35,602 35,930
--------- ---------
Stockholders' Equity 90,589 89,563
--------- ---------
Total Liabilities and Stockholders' Equity $ 153,982 $ 149,261
========= =========
Book Value Per Share Outstanding $ 12.77 $ 12.76
Acquisitions of
Property, Plant and Equipment Fourth Quarter $ 2,468 $ 2,571
Year to Date $ 10,413 $ 15,253
Depreciation and Amortization Charges Fourth Quarter $ 1,859 $ 1,979
Year to Date $ 7,371 $ 7,406
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 Twelve Months Ended
July 31,
----------------------------
CASH FLOWS FROM OPERATING ACTIVITIES 2010 2009
------------- -------------
Net Income $ 9,458 $ 9,586
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and Amortization 7,371 7,406
Decrease in Accounts Receivable 1,884 2,354
Decrease (Increase) in Inventories 1,772 (51)
Increase (Decrease) in Accounts Payable 1,702 (1,773)
Increase (Decrease) in Accrued Expenses 2,496 (1,841)
Other 1,533 133
------------- -------------
Total Adjustments 16,758 6,228
------------- -------------
Net Cash Provided by Operating
Activities 26,216 15,814
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (10,413) (15,253)
Net Dispositions of Investment
Securities 2,148 13,037
Other 375 27
------------- -------------
Net Cash Used in Investing Activities (7,890) (2,189)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on Long-Term Debt (3,200) (5,580)
Dividends Paid (3,992) (3,684)
Purchase of Treasury Stock (5,988) (656)
Other 1,866 838
------------- -------------
Net Cash Used in Financing Activities (11,314) (9,082)
------------- -------------
Effect of exchange rate changes on cash and
cash equivalents (89) 448
Net Increase in Cash and Cash Equivalents 6,923 4,991
Cash and Cash Equivalents, Beginning of Year 11,839 6,848
------------- -------------
Cash and Cash Equivalents, July 31 $ 18,762 $ 11,839
============= =============