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)
Three Months Ended October 31,
--------------------------------------
% of % of
2009 Sales 2008 Sales
-------- -------- -------- --------
Net Sales $ 53,404 100.0% $ 63,128 100.0%
Cost of Sales (41,081) 76.9% (50,752) 80.4%
-------- -------- -------- --------
Gross Profit 12,323 23.1% 12,376 19.6%
Operating Expenses (8,971) 16.8% (8,738) 13.8%
-------- -------- -------- --------
Operating Income 3,352 6.3% 3,638 5.8%
Interest Expense (374) 0.7% (505) 0.8%
Other Income 77 0.1% (56) (0.1%)
-------- -------- -------- --------
Income Before Income Taxes 3,055 5.7% 3,077 4.9%
Income Taxes (861) 1.6% (831) 1.3%
-------- -------- -------- --------
Net Income $ 2,194 4.1% $ 2,246 3.6%
======== ======== ======== ========
Net Income Per Share*:
Basic Common $ 0.33 $ 0.34
Basic Class B
Common $ 0.25 $ 0.26
Diluted $ 0.30 $ 0.31
Average Shares Outstanding:
Basic Common 5,193 5,128
Basic Class B
Common 1,880 1,862
Diluted 7,248 7,191
* Net Income Per Share for the three months ended October 31, 2008 has 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 October 31,
-------------------
2009 2008
--------- ---------
Current Assets
Cash and Cash Equivalents $ 16,028 $ 1,308
Investment in Treasury Securities 8,997 15,463
Accounts Receivable, net 25,569 32,763
Inventories 16,398 19,833
Prepaid Expenses 7,304 6,269
--------- ---------
Total Current Assets 74,296 75,636
--------- ---------
Property, Plant and Equipment 58,995 52,777
Other Assets 15,835 14,729
--------- ---------
Total Assets $ 149,126 $ 143,142
========= =========
Current Liabilities
Current Maturities of Notes Payable $ 4,500 $ 1,700
Accounts Payable 4,500 7,365
Dividends Payable 996 917
Accrued Expenses 13,105 13,837
--------- ---------
Total Current Liabilities 23,101 23,819
--------- ---------
Long-Term Liabilities
Notes Payable 16,800 21,300
Other Noncurrent Liabilities 18,261 10,123
--------- ---------
Total Long-Term Liabilities 35,061 31,423
--------- ---------
Stockholders' Equity 90,964 87,900
--------- ---------
Total Liabilities and Stockholders' Equity $ 149,126 $ 143,142
========= =========
Book Value Per Share Outstanding $ 12.86 $ 12.58
Acquisitions of
Property, Plant and Equipment
First Quarter $ 1,327 $ 3,552
Depreciation and Amortization Charges
First Quarter $ 1,889 $ 1,885
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 Three
Months Ended
October 31,
------------------
CASH FLOWS FROM OPERATING ACTIVITIES 2009 2008
-------- --------
Net Income $ 2,194 $ 2,246
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 1,889 1,885
Decrease (Increase) in Accounts Receivable 3,486 (1,417)
Decrease (Increase) in Inventories 1,397 (2,089)
(Decrease) in Accounts Payable (829) (118)
(Decrease) in Accrued Expenses (1,165) (2,274)
Other 667 (815)
-------- --------
Total Adjustments 5,445 (4,828)
-------- --------
Net Cash Provided by (Used in) Operating
Activities 7,639 (2,582)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (1,327) (3,552)
Net (Purchases) Dispositions of Investment
Securities (996) 5,528
Other 0 8
-------- --------
Net Cash (Used in) Provided by Investing
Activities (2,323) 1,984
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on Long-Term Debt (200) (4,080)
Dividends Paid (995) (919)
Purchase of Treasury Stock 0 (581)
Other 55 (187)
-------- --------
Net Cash Used in Financing Activities (1,140) (5,767)
-------- --------
Effect of exchange rate changes on cash and cash
equivalents 13 825
Net Increase (Decrease) in Cash and Cash Equivalents 4,189 (5,540)
Cash and Cash Equivalents, Beginning of Year 11,839 6,848
-------- --------
Cash and Cash Equivalents, October 31 $ 16,028 $ 1,308
======== ========
Oil-Dri Announces First Quarter Results
| Source: Oil-Dri Corporation of America
CHICAGO, IL--(Marketwire - December 8, 2009) - Oil-Dri Corporation of America (NYSE : ODC )
today announced net sales for the first quarter of $53,404,000, a 15%
decrease compared with net sales of $63,128,000 in the same quarter one
year ago. Net income for the first quarter was $2,194,000, or $0.30 per
diluted share, a 3% decrease compared with net income of $2,246,000, or
$0.31 per diluted share, in the same quarter one year ago.
First Quarter Review
President and Chief Executive Officer Daniel S. Jaffee said, "We were
pleased with the first quarter results in light of the very significant
downturn in our unit volume and net sales. As we announced in June 2009,
the brand reduction program implemented by Walmart took effect this quarter
and has resulted in a decreased number of stores carrying our Cat's Pride
branded cat litter products.
"Offsetting these negatives were substantial reductions in various cost
elements as well as contribution from higher margin products in our
Business to Business Products Group, which contributed to an increase in
our gross profit margin to 23% from 20% one year ago."
Business Review
Net sales for the Company's Business to Business Products Group were
$17,570,000 and group income was $4,509,000 for the quarter. Net sales and
unit volume were down for agricultural carriers, sports field products,
bleaching clays and co-packaged cat litters. Calibrin-A and Calibrin-Z
enterosorbents continued to deliver strong sequential quarterly sales
growth.
Net sales for the Company's Retail and Wholesale Products Group were
$35,834,000 and group income was $3,216,000 for the quarter. Decreased
unit shipments to Walmart of Cat's Pride branded cat litter products
negatively impacted the Group's net sales and income for the quarter. This
was partially offset by 44% unit growth in Cat's Pride Scoopable with our
grocery retail partners based on market data provided by Information
Resources, Inc. for the ten-week period ending November 1, 2009. Our
Canadian subsidiary saw increased net sales and income from cat litter
sales.
Financial Review
On October 15, 2009, 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 December 4,
2009 to stockholders of record at the close of business on November 20,
2009. At the October 30, 2009 stock closing price of $15.29 per share and
assuming cash dividends continue at the same rate, the annual yield on the
Company's Common Stock is 3.9%.
The Company has paid cash dividends continuously since 1974 and has
increased dividends annually for the past six years.
Cash, cash equivalents and short-term investments at October 31, 2009,
totaled $25,025,000. Capital expenditures for the quarter totaled
$1,327,000, which was $562,000 less than the quarter's depreciation and
amortization of $1,889,000.
Cash provided by operations was $7,639,000 primarily due to decreases in
accounts receivable and inventories commiserate with net sales declines.
Looking Forward
Jaffee continued, "As we look to the balance of the fiscal year we are
hopeful that continued lower costs and contribution from higher margin
products will mitigate the volume decrease resulting from Walmart's brand
reduction program."
CONFERENCE CALL INFORMATION
The Company will offer a live webcast of the first quarter earnings
teleconference on December 9, 2009 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.
Calibrin and Cat's Pride are both registered trademarks 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.