SOURCE: AMCOL International

AMCOL International

January 28, 2011 07:00 ET

AMCOL International Corporation (NYSE: ACO) Reports Fourth Quarter and 2010 Year End Results

HOFFMAN ESTATES, IL--(Marketwire - January 28, 2011) - For the fourth quarter of 2010, AMCOL International Corporation (NYSE: ACO) reports a loss attributable to AMCOL shareholders of $0.30 per diluted share compared to earnings of $0.36 per diluted share in the 2009 period. However, these losses result largely from unusual items recorded in the fourth quarter of 2010. Excluding these unusual items, we generated net income attributable to AMCOL shareholders of $0.21 per diluted share as compared to the prior year amount of $0.31 per diluted share, which has also been adjusted for unusual items.

Net sales increased 26.4% to $223.4 million for the quarter ended December 31, 2010, compared to $176.7 million for the 2009 period. Operating profit increased by 11.6% over the 2009 period to $11.5 million. Foreign currency translation did not have a material impact on our comparative results for the quarter.

The net loss in the current quarter includes non-cash losses from impairments associated with two of our joint ventures of $0.37 per diluted share, expenses of $0.05 per diluted share associated with the retirement of our previous CEO, expenses of $0.05 per diluted share resulting from operational issues in our domestic personal care products group within our Minerals & Materials segment, and tax expenses of $0.04 per diluted share associated with the recognition of valuation allowances in our foreign jurisdictions. The 2009 results include benefits of $0.05 per diluted share for resolution of certain income tax matters and a gain on the sale of a portion of our investment in Ashapura Minechem Limited.

For the twelve-month periods ended December 31, 2010 and 2009, we generated net income attributable to AMCOL shareholders of $0.96 per diluted share compared to earnings of $1.12 per diluted share in the 2009 period. Net income attributable to AMCOL shareholders, adjusted for the unusual items mentioned above, was $1.57 per diluted share for the twelve months ending December 31, 2010 and $1.11 per diluted share for the comparable period ending December 31, 2009. The 2010 period includes the same adjustments for the same amounts as previously mentioned, except that the expenses associated with our personal care business totaled $0.15 per diluted share instead of the quarterly $0.05 per diluted share mentioned above. The 2009 period includes not only the related adjustments mentioned previously but also $0.04 of per diluted share of expenses associated with writing off certain metalcasting operations.

Net sales for the twelve-month period ended December 31, 2010, increased 21.2% to $852.5 million, compared with $703.2 million for 2009. Operating profit increased 28.1% to $68.5 million compared to $53.5 million in the prior year period. Foreign currency translation did not have a material impact on our comparative results for the twelve-month period.

"Excluding the negative impact from unusual items, our Minerals & Materials and Oilfield Services segments were generally in line with our expectations for the quarter," said Ryan McKendrick, AMCOL President and Chief Executive Officer. "Our Environmental segment had a challenging quarter, and we have an action plan to improve its performance in 2011."

McKendrick continued, "The Minerals segment had another good quarter with increased revenue resulting from steady domestic and European business combined with continued growth in Asia. Gross margin was impacted by operational issues in our domestic personal care products group that continued into the fourth quarter. We do not expect significant additional costs going forward."

"The Environmental segment had a nice increase in revenue; however, margins were down as more of the sales mix was from lower margin contracting services. Building materials revenue and margins improved despite continued overall weakness in US non-residential construction. European sales remained steady but had lower margins due to mix, price pressure, and severe weather impacting construction activity. Expense control in this segment will be an area of increased focus going forward," McKendrick continued.

"Oilfield services continued to perform well with revenue and operating profit up nicely over the prior year's quarter and sequentially. Most business lines improved except for nitrogen services, which is most affected by the downturn in deep water drilling as a result of the Deepwater Horizon accident," McKendrick added.

"Looking forward, we expect market conditions for Minerals & Materials to remain favorable. A key driver for the segment is automobile and light truck production which is expected to increase in both North America and Asia, markets in which we are well positioned. We expect market conditions for basic minerals and specialty materials to continue to improve. The Environmental segment market conditions appear to be gaining some stability, and we expect to see improvements in this business as we implement plans to improve margins. Oilfield Services is well positioned, especially in North America, where producers continue to drill wells into oil and gas bearing shale formations," McKendrick concluded.

STATEMENT OF OPERATIONS HIGHLIGHTS:

The statement of operations highlights are supported by the quarterly segment results schedules included in this press release.

Net sales: The following discusses the reasons for the increased revenue by segment for the 2010 fourth quarter as compared to the prior year's quarter.

Minerals & Materials: The majority of the revenue improvement was due to increased volumes, principally in domestic and Asian metalcasting markets, resulting from increased demand for automobile and heavy equipment castings. The remainder of the increase results mostly from starting up our chrome operations in South Africa.

Environmental: The revenue increase lies principally in our domestic contracting services and building materials and drilling products as the domestic construction market saw increases in demand.

Oilfield Services: The majority of the increase is due to greater demand for services from our domestic well testing and coiled tubing operations due to several large offshore jobs and growth in our onshore services in oil and gas bearing shale formations.

Transportation: Approximately half of the revenue increase was due to increased fuel-surcharges and the remainder was from greater demand for consumer product shipments.

Gross profit: Gross profit increased $9.1 million, or 20.6%, from the 2009 fourth quarter, while gross margin decreased 120 basis points to 23.7%.

Minerals & Materials: Gross profit increased $2.7 million, or 13.2% from the 2009 quarter, due to increased sales partly offset by the increased expenses from operational issues within our personal care business, which was the largest cause of the 230 basis point decrease in gross margins.

Environmental: Gross profit increased $0.2 million, or 1.2%, from the 2009 quarter. Gross margins decreased 300 basis points to 28.3%. The decrease in gross margin is principally due to a greater portion of sales being derived from our lower margin contracting services business in addition to increased competition in lining technologies products.

Oilfield Services: Gross profit almost doubled to $12.2 million over the 2009 quarter. Gross margin increased 500 basis points to 28.0% due to greater operating leverage given the increase in revenues without significant increases in fixed costs.

General, selling and administrative expenses (GS&A): GS&A expenses increased $7.9 million, or 23.3%, from the prior year quarter. Approximately $2.7 million of this relates to expenses for the retirement of our former CEO; the remainder mostly relates to increased employee and employee related costs as well as operating costs for new offices that were not established in the prior year.

Other, net: Other, net expenses increased $2.5 million due mostly to increased losses from foreign currency transactions and foreign currency derivatives.

Income taxes: The fourth quarter results include income tax expense of $5.8 million versus a benefit of $0.9 million in the prior year period. Several factors contributed to this increase. The prior year period reflects a large benefit to tax expense associated with the settlement of domestic audits for the 2005 and 2007 periods as well as an increased benefit from foreign operations, which are typically subject to lower tax rates than our domestic operations. Our current period effective tax rate is negatively affected by changes in geographical earnings distribution estimates and the recognition of valuation allowances against net operating losses in certain foreign jurisdictions.

Income (loss) from affiliates and joint ventures: Our joint-ventures resulted in $11.5 million of losses in the quarter versus income of $1.0 million in the prior year. The losses in 2010 result largely from impairment charges related to our Russian and Belgian joint-ventures; both of these investments have been fully written off. We do not expect to record income from these investments in the near future.

FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:

Long-term debt increased $29.2 million to $236.2 million during our 2010 fiscal year. During that time, we have invested in working capital to support our revenue growth, purchased the remaining 47% of the chrome mine in South Africa, and invested in a related chrome processing plant. Total long-term debt, net represented 37.1% of capitalization at December 31, 2010 as compared to 35.3% at December 31, 2009. Cash and cash equivalents are approximately the same between these two dates.

Net working capital increased $45.4 million during the year to $249.1 million at December 31, 2010. The increase in working capital was due to increased sales volumes.

Cash flow generated from operating activities was $48.1 million for our 2010 fiscal year as compared to $122.4 million in the prior year. Throughout 2009, we decreased our working capital levels significantly as a result of the economic recession and lower sales volumes. Thus, we generated significantly less cash flows from operations in the 2010 period as working capital levels have increased since the prior year end due to the increase in sales volumes.

Capital expenditures for year-to-date December 31, 2010 were $47.3 million, of which $14.9 million relates to our construction of our chrome processing facility in South Africa. Excluding our corporate building, comparative amounts in the 2009 period were $50.8 million, which includes $22.6 million of expenditures to purchase 53% of the chrome mine and start constructing the related processing facility.

Dividends through December 31, 2010 remained roughly the same over the prior year period as our dividend per share has remained constant at $0.18 per quarter per share.

This release should be read in conjunction with the attached unaudited, condensed, consolidated financial statements. In addition, this release reports diluted earnings per share which have been adjusted to exclude certain unusual items. We believe this non-GAAP financial statistic is a better measure of the earnings we generated as well as being more comparable to prior periods.

This release contains certain forward-looking statements regarding AMCOL's expected performance for future periods and actual results for such periods might materially differ. Such forward-looking statements are subject to uncertainties, which include, but are not limited to, actual growth in AMCOL's various markets, utilization of AMCOL's plants, currency exchange rates, currency devaluation, delays in development, production and marketing of new products, integration of acquired businesses, and other factors detailed from time to time in AMCOL's annual report and other reports filed with the Securities and Exchange Commission. AMCOL undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL's expectations.

AMCOL International, headquartered in Hoffman Estates, IL, produces and markets a wide range of specialty mineral products used for industrial, environmental and consumer-related applications. AMCOL is the parent of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, Inc. AMCOL's common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL's web address is www.amcol.com. AMCOL's quarterly quarter conference call will be available live today at 11 a.m. ET on the AMCOL website or by dialing 1.877.795.3646.

Financial tables follow.

                      AMCOL INTERNATIONAL CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)
                  (In thousands, except per share data)

                                 Twelve Months Ended   Three Months Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                   2010       2009       2010      2009
                                ---------  ---------  ---------  ---------

 Net sales                      $ 852,538  $ 703,237  $ 223,423  $ 176,698
 Cost of sales                    635,708    515,049    170,404    132,729
                                ---------  ---------  ---------  ---------
   Gross profit                   216,830    188,188     53,019     43,969
 General, selling and
  administrative expenses         148,298    134,702     41,513     33,655
                                ---------  ---------  ---------  ---------
   Operating profit                68,532     53,486     11,506     10,314
                                ---------  ---------  ---------  ---------
 Other income (expense):
   Interest expense, net           (9,725)   (12,125)    (2,633)    (2,726)
   Other, net                       1,034     (1,095)    (1,032)     1,500
                                ---------  ---------  ---------  ---------
                                   (8,691)   (13,220)    (3,665)    (1,226)
                                ---------  ---------  ---------  ---------
   Income before income taxes
    and income (loss) from
    affiliates and joint
    ventures                       59,841     40,266      7,841      9,088
 Income tax expense (benefit)      18,656      5,510      5,762       (878)
                                ---------  ---------  ---------  ---------
   Income before income (loss)
    from affiliates and joint
    ventures                       41,185     34,756      2,079      9,966
 Income (loss) from affiliates
  and joint ventures              (11,261)       115    (11,527)     1,036

                                ---------  ---------  ---------  ---------
   Net income (loss)               29,924     34,871     (9,448)    11,002
                                ---------  ---------  ---------  ---------
 Net income (loss) attributable
  to the noncontrolling
  interest                           (423)        72       (101)      (224)
                                ---------  ---------  ---------  ---------
 Net income (loss) attributable
  to AMCOL shareholders         $  30,347  $  34,799  $  (9,347) $  11,226
                                =========  =========  =========  =========

 Weighted average common shares
  outstanding                      31,179     30,764     31,304     30,851
 Weighted average common and
  common equivalent shares
  outstanding                      31,548     31,034     31,700     31,266

 Basic earnings (loss) per
  share attributable to AMCOL
  shareholders                  $    0.97  $    1.13  $   (0.30) $    0.36

 Diluted earnings (loss) per
  share attributable to AMCOL
  shareholders                  $    0.96  $    1.12  $   (0.30) $    0.36

 Dividends declared per share   $    0.72  $    0.72  $    0.18  $    0.18




                      AMCOL INTERNATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)

                                                  December 31, December 31,
                                                      2010         2009
ASSETS                                            (unaudited)       *
                                                  ------------ ------------
 Current assets:
   Cash and equivalents                           $     27,262 $     27,669
   Accounts receivable, net                            193,968      148,260
   Inventories                                         107,515       96,173
   Prepaid expenses                                     12,581       12,509
   Deferred income taxes                                 5,553        6,525
   Income tax receivable                                 8,474        2,431
   Other                                                 6,211          463
                                                  ------------ ------------
     Total current assets                              361,564      294,030
                                                  ------------ ------------

 Noncurrent assets:
   Property, plant, equipment, mineral rights and
    reserves:
    Land and mineral rights                             62,465       57,898
    Depreciable assets                                 455,668      414,617
                                                  ------------ ------------
                                                       518,133      472,515
    Less: accumulated depreciation and depletion       257,645      236,269
                                                  ------------ ------------
                                                       260,488      236,246
                                                  ------------ ------------

   Goodwill                                             70,909       71,156
   Intangible assets, net                               42,590       47,185
   Investments in and advances to affiliates and
    joint ventures                                      19,056       32,228
   Available for sale securities                        14,168       25,563
   Deferred income taxes                                 7,570        2,513
   Other assets                                         22,748       25,339
                                                  ------------ ------------
     Total noncurrent assets                           437,529      440,230
                                                  ------------ ------------
                                                  $    799,093 $    734,260
                                                  ============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities:
   Accounts payable                               $     53,167 $     40,335
   Accrued liabilities                                  59,308       49,981
                                                  ------------ ------------
     Total current liabilities                         112,475       90,316
                                                  ------------ ------------

 Noncurrent liabilities:
   Long-term debt                                      236,171      207,017
   Pension liabilities                                  21,338       20,403
   Deferred compensation                                 8,686        7,544
   Other liabilities                                    19,987       29,208
                                                  ------------ ------------
     Total noncurrent liabilities                      286,182      264,172
                                                  ------------ ------------

 Equity:
   Common stock                                            320          320
   Additional paid in capital                           95,074       84,830
   Retained earnings                                   283,189      275,200
   Accumulated other comprehensive income               28,936       32,174
                                                  ------------ ------------
                                                       407,519      392,524
 Less:
   Treasury stock                                        8,945       14,377
                                                  ------------ ------------
 Total AMCOL shareholders' equity                      398,574      378,147
                                                  ------------ ------------

   Noncontrolling interest                               1,862        1,625
                                                  ------------ ------------
     Total equity                                      400,436      379,772
                                                  ------------ ------------
                                                  $    799,093 $    734,260
                                                  ============ ============

* Condensed from audited financial statements.




                      AMCOL INTERNATIONAL CORPORATION
        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                              (In thousands)


                                                       Twelve Months Ended
                                                           December 31,
                                                        ------------------
                                                          2010     2009
                                                        --------  --------
Cash flow from operating activities:
 Net income                                             $ 29,924  $ 34,871
 Adjustments to reconcile net income to net cash
 provided by (used in) operating activities:
  Depreciation, depletion, and amortization               36,306    35,906
  Undistributed earnings from affiliates and joint
   ventures                                               11,754       691
  Other non-cash charges                                   9,698     7,002
  Changes in assets and liabilities, net of effects of
   acquisitions:
   Decrease (increase) in current assets                 (62,467)   65,715
   Decrease (increase) in noncurrent assets               (3,977)   (7,590)
   Increase (decrease) in current liabilities             22,618   (12,519)
   Increase (decrease) in noncurrent liabilities           4,244    (1,709)
                                                        --------  --------
    Net cash provided by (used in) operating activities   48,100   122,367
                                                        --------  --------
Cash flow from investing activities:
 Capital expenditures                                    (47,305)  (50,767)
 Capital expenditures - corporate building                     -    (9,651)
 Proceeds from sale - corporate building                       -     9,651
 Proceeds from sale of land and depreciable assets           841     2,988
 Advances to non - affiliates                                  -     6,000
 Investments in and advances to affiliates and joint
  ventures                                                (2,073)   (1,387)
 Other                                                       447      (866)
                                                        --------  --------
    Net cash used in investing activities                (48,090)  (44,032)
                                                        --------  --------
Cash flow from financing activities:
 Net change in outstanding debt                           27,671   (52,347)
 Purchase of noncontrolling interest                     (11,873)        -
 Proceeds from sales of treasury stock                     5,346     2,666
 Purchases of treasury stock                                   -      (166)
 Dividends                                               (22,358)  (22,052)
 Excess tax benefits from stock-based compensation           436       639
                                                        --------  --------
    Net cash provided by (used in) financing activities     (778)  (71,260)
                                                        --------  --------
Effect of foreign currency rate changes on cash              361     1,153
                                                        --------  --------
Net increase (decrease) in cash and cash equivalents        (407)    8,228
                                                        --------  --------
Cash and cash equivalents at beginning of period          27,669    19,441
                                                        --------  --------
Cash and cash equivalents at end of period              $ 27,262  $ 27,669
                                                        ========  ========




                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                              QUARTER-TO-DATE

                                 Three Months Ended December 31,
                       ---------------------------------------------------
Minerals and Materials        2010              2009        2010 vs. 2009
                       ------------------  --------------  ---------------
                                     (Dollars in Thousands)
                       ---------------------------------------------------
 Net sales             $114,853     100.0% $91,515  100.0% $23,338    25.5%
 Cost of sales           91,379      79.6%  70,771   77.3%  20,608    29.1%
                       --------  --------  -------  -----  -------
  Gross profit           23,474      20.4%  20,744   22.7%   2,730    13.2%
 General, selling and
  administrative
  expenses               11,867      10.3%   9,818   10.7%   2,049    20.9%
                       --------  --------  -------  -----  -------
  Operating profit       11,607      10.1%  10,926   12.0%     681     6.2%


                                 Three Months Ended December 31,
                       ---------------------------------------------------
    Environmental             2010              2009        2010 vs. 2009
                       ------------------  --------------  ---------------
                                     (Dollars in Thousands)
                       ---------------------------------------------------

 Net sales             $ 56,392     100.0% $50,508  100.0% $ 5,884    11.6%
 Cost of sales           40,413      71.7%  34,711   68.7%   5,702    16.4%
                       --------  --------  -------  -----  -------
  Gross profit           15,979      28.3%  15,797   31.3%     182     1.2%
 General, selling and
  administrative
  expenses               14,022      24.9%  11,701   23.2%   2,321    19.8%
                       --------  --------  -------  -----  -------
  Operating profit        1,957       3.4%   4,096    8.1%  (2,139)  -52.2%


                                 Three Months Ended December 31,
                       ---------------------------------------------------
   Oilfield Services          2010              2009        2010 vs. 2009
                       ------------------  --------------  ---------------
                                     (Dollars in Thousands)
                       ---------------------------------------------------

 Net sales             $ 43,569     100.0% $26,681  100.0% $16,888    63.3%
 Cost of sales           31,368      72.0%  20,547   77.0%  10,821    52.7%
                       --------  --------  -------  -----  -------
  Gross profit           12,201      28.0%   6,134   23.0%   6,067    98.9%
 General, selling and
  administrative
  expenses                7,443      17.1%   5,844   21.9%   1,599    27.4%
                       --------  --------  -------  -----  -------
  Operating profit        4,758      10.9%     290    1.1%   4,468  1540.7%


                                 Three Months Ended December 31,
                       ---------------------------------------------------
     Transportation           2010              2009        2010 vs. 2009
                       ------------------  --------------  ---------------
                                     (Dollars in Thousands)
                       ---------------------------------------------------
 Net sales             $ 12,238     100.0% $11,306  100.0% $   932     8.2%
 Cost of sales           10,873      88.8%  10,012   88.6%     861     8.6%
                       --------  --------  -------  -----  -------
  Gross profit            1,365      11.2%   1,294   11.4%      71     5.5%
 General, selling and
  administrative
  expenses                  899       7.3%     814    7.2%      85    10.4%
                       --------  --------  -------  -----  -------
  Operating profit          466       3.9%     480    4.2%     (14)   -2.9%


                         Three Months Ended December 31,
                       ----------------------------------
       Corporate         2010      2009     2010 vs. 2009
                       --------  --------  --------------
                            (Dollars in Thousands)
                       ----------------------------------
 Intersegment shipping
  sales                $ (3,629) $ (3,312) $  (317)
 Intersegment shipping
  costs                  (3,629)   (3,312)    (317)
                       --------  --------
  Gross profit                -         -
 General, selling and
  administrative
  expenses                7,282     5,478    1,804   32.9%
                       --------  --------  -------
 Operating loss          (7,282)   (5,478)  (1,804)  32.9%





                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                               YEAR-TO-DATE

                                 Twelve Months Ended December 31,
                      ----------------------------------------------------
Minerals and Materials       2010               2009         2010 vs. 2009
                      -------------------  ---------------  --------------
                                      (Dollars in Thousands)
                      -------------------  ---------------  --------------
 Net sales            $429,270      100.0% $336,172  100.0% $93,098   27.7%
 Cost of sales         330,297       76.9%  264,545   78.7%  65,752   24.9%
                      --------  ---------  --------  -----  -------
  Gross profit          98,973       23.1%   71,627   21.3%  27,346   38.2%
 General, selling and
  administrative
  expenses              44,393       10.3%   36,838   11.0%   7,555   20.5%
                      --------  ---------  --------  -----  -------
  Operating profit      54,580       12.8%   34,789   10.3%  19,791   56.9%


                                 Twelve Months Ended December 31,
                      ----------------------------------------------------
    Environmental            2010               2009         2010 vs. 2009
                      -------------------  ---------------  --------------
                                      (Dollars in Thousands)
                      -------------------  ---------------  --------------
 Net sales            $232,099      100.0% $214,604  100.0% $17,495    8.2%
 Cost of sales         164,047       70.7%  142,291   66.3%  21,756   15.3%
                      --------  ---------  --------  -----  -------
  Gross profit          68,052       29.3%   72,313   33.7%  (4,261)  -5.9%
 General, selling and
  administrative
  expenses              49,747       21.4%   46,614   21.7%   3,133    6.7%
                      --------  ---------  --------  -----  -------
  Operating profit      18,305        7.9%   25,699   12.0%  (7,394) -28.8%


                                 Twelve Months Ended December 31,
                      ----------------------------------------------------
   Oilfield Services         2010               2009         2010 vs. 2009
                      -------------------  ---------------  --------------
                                      (Dollars in Thousands)
                      -------------------  ---------------  --------------

 Net sales            $154,621      100.0% $119,821  100.0% $34,800   29.0%
 Cost of sales         110,681       71.6%   81,101   67.7%  29,580   36.5%
                      --------  ---------  --------  -----  -------
  Gross profit          43,940       28.4%   38,720   32.3%   5,220   13.5%
 General, selling and
  administrative
  expenses              29,322       19.0%   25,967   21.7%   3,355   12.9%
                      --------  ---------  --------  -----  -------
  Operating profit      14,618        9.4%   12,753   10.6%   1,865   14.6%


                                 Twelve Months Ended December 31,
                      ----------------------------------------------------
     Transportation          2010               2009         2010 vs. 2009
                      -------------------  ---------------  --------------
                                      (Dollars in Thousands)
                      -------------------  ---------------  --------------
 Net sales            $ 52,225      100.0% $ 46,642  100.0% $ 5,583   12.0%
 Cost of sales          46,360       88.8%   41,114   88.1%   5,246   12.8%
                      --------  ---------  --------  -----  -------
  Gross profit           5,865       11.2%    5,528   11.9%     337    6.1%
 General, selling and
  administrative
  expenses               3,435        6.6%    3,365    7.2%      70    2.1%
                      --------  ---------  --------  -----  -------
  Operating profit       2,430        4.6%    2,163    4.7%     267   12.3%

                         Twelve Months Ended December 31,
                      ------------------------------------
       Corporate        2010      2009      2010 vs. 2009
                      --------  ---------  ---------------
                            (Dollars in Thousands)
                      ------------------------------------
 Intersegment
  shipping sales      $(15,677) $ (14,002) $ (1,675)
 Intersegment
  shipping costs       (15,677)   (14,002)   (1,675)
                      --------  ---------
  Gross profit               -          -
 General, selling and
  administrative
  expenses              21,401     21,918      (517)  -2.4%
                      --------  ---------  --------
 Operating loss        (21,401)   (21,918)      517   -2.4%





                      AMCOL INTERNATIONAL CORPORATION
                  SUPPLEMENTARY INFORMATION (unaudited)
                              QUARTER-TO-DATE

                                     Three Months Ended December 31, 2010
                                    --------------------------------------
  Composition of Sales by                                  Asia
   Geographic Region                Americas    EMEA      Pacific   Total
                                    -------  -----------  -------  -------
 Minerals and Materials                30.0%        10.6%    10.8%    51.4%
 Environmental                         11.6%        11.4%     2.2%    25.2%
 Oilfield services                     16.7%         1.2%     1.6%    19.5%
 Transportation                         3.9%         0.0%     0.0%     3.9%
                                    -------  -----------  -------  -------
 Total - current year's period         62.2%        23.2%    14.6%   100.0%
                                    =======  ===========  =======  =======
 Total from prior year's
  comparable period                    59.9%        25.1%    15.0%   100.0%


                                     Three Months Ended December 31, 2010
                                                     vs.
                                     Three Months Ended December 31, 2009
                                    --------------------------------------
      Percentage of Revenue          Base                 Foreign
       Growth by Component         Business Acquisitions  Exchange  Total
                                    -------  -----------  -------  -------
 Minerals and Materials                11.8%         0.0%     1.4%    13.2%
 Environmental                          3.6%         0.2%    -0.5%     3.3%
 Oilfield services                      9.5%         0.0%     0.1%     9.6%
 Transportation                         0.3%         0.0%     0.0%     0.3%
                                    -------  -----------  -------  -------
 Total                                 25.2%         0.2%     1.0%    26.4%
                                    =======  ===========  =======  =======
 % of growth                           95.6%         0.6%     3.8%   100.0%


                                   Three Months Ended December 31,
     Minerals and Materials         -----------------------------
       Product Line Sales             2010       2009    % change
                                    -------  -----------  -------
                                        (Dollars in Thousands)
                                    -----------------------------
 Metalcasting                       $56,748  $    39,257     44.6%
 Specialty materials                 27,213       26,659      2.1%
 Pet products                        15,232       16,712     -8.9%
 Basic minerals                      14,096        7,613     85.2%
 Other product lines                  1,564        1,274        *
                                    -------  -----------
  Total                             114,853       91,515
                                    =======  ===========
   * Not meaningful.

                                   Three Months Ended December 31,
   Environmental Product            -----------------------------
       Line Sales                     2010       2009    % change
                                    -------  -----------  -------
                                        (Dollars in Thousands)
                                    -----------------------------
 Lining technologies                $22,980  $    22,602      1.7%
 Building materials                  15,357       13,020     17.9%
 Contracting services                11,789        9,510     24.0%
 Other product lines                  6,266        5,376        *
                                    -------  -----------
  Total                              56,392       50,508
                                    =======  ===========

   * Not meaningful.




                      AMCOL INTERNATIONAL CORPORATION
                  SUPPLEMENTARY INFORMATION (unaudited)
                               YEAR-TO-DATE


                                     Twelve Months Ended December 31, 2010
                                     -------------------------------------
  Composition of Sales by                                    Asia
   Geographic Region                 Americas     EMEA      Pacific  Total
                                     --------  -----------  ------  ------
 Minerals and Materials                  31.2%         9.1%   10.1%   50.4%
 Environmental                           13.0%        11.9%    2.3%   27.2%
 Oilfield services                       15.2%         0.8%    2.1%   18.1%
 Transportation                           4.3%         0.0%    0.0%    4.3%
                                     --------  -----------  ------  ------
 Total - current year's
  period                                 63.7%        21.8%   14.5%  100.0%
                                     ========  ===========  ======  ======
 Total from prior year's
  comparable period                      64.4%        23.9%   11.7%  100.0%

                                     Twelve Months Ended December 31, 2010
                                                     vs.
                                     Twelve Months Ended December 31, 2009
                                     -------------------------------------
      Percentage of Revenue            Base                 Foreign
       Growth by Component           Business Acquisitions Exchange  Total
                                     --------  -----------  ------  ------
 Minerals and Materials                  12.2%         0.0%    1.0%   13.2%
 Environmental                            2.0%         0.2%    0.3%    2.5%
 Oilfield services                        4.5%         0.0%    0.4%    4.9%
 Transportation                           0.6%         0.0%    0.0%    0.6%
                                     --------  -----------  ------  ------
 Total                                   19.3%         0.2%    1.7%   21.2%
                                     ========  ===========  ======  ======
 % of growth                             91.2%         1.0%    7.8%  100.0%


                                    Twelve Months Ended December 31,
     Minerals and Materials          -----------------------------
       Product Line Sales              2010       2009     % change
                                     --------  ----------- -------
                                        (Dollars in Thousands)
                                     -----------------------------
 Metalcasting                        $204,577  $   139,849    46.3%
 Specialty materials                  107,287       97,989     9.5%
 Pet products                          61,971       66,441    -6.7%
 Basic minerals                        48,886       27,901    75.2%
 Other product lines                    6,549        3,992       *
                                     --------  -----------
  Total                               429,270      336,172
                                     ========  ===========
   * Not meaningful.

                                    Twelve Months Ended December 31,
   Environmental Product             -----------------------------
       Line Sales                      2010        2009    % change
                                     --------  ----------- -------
                                        (Dollars in Thousands)
                                     -----------------------------

 Lining technologies                 $107,974  $   101,370     6.5%
 Building materials                    57,220       54,724     4.6%
 Contracting services                  42,576       36,892    15.4%
 Other product lines                   24,329       21,618       *
                                     --------  -----------
  Total                               232,099      214,604
                                     ========  ===========

   * Not meaningful.

Contact Information

  • For further information, contact:
    Don Pearson
    Vice President & Chief Financial Officer
    847.851.1500