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
2010 Sales 2009 Sales
-------- -------- -------- --------
Net Sales $ 56,285 100.0% $ 53,404 100.0%
Cost of Sales (43,077) 76.5% (41,081) 76.9%
-------- -------- -------- --------
Gross Profit 13,208 23.5% 12,323 23.1%
Operating Expenses (9,386) 16.7% (8,971) 16.8%
-------- -------- -------- --------
Operating Income 3,822 6.8% 3,352 6.3%
Interest Expense (411) 0.7% (374) 0.7%
Other Income 69 0.1% 77 0.1%
-------- -------- -------- --------
Income Before Income Taxes 3,480 6.2% 3,055 5.7%
Income Taxes (961) 1.7% (861) 1.6%
-------- -------- -------- --------
Net Income $ 2,519 4.5% $ 2,194 4.1%
======== ======== ======== ========
Net Income Per Share*:
Basic Common $ 0.38 $ 0.33
Basic Class B Common $ 0.30 $ 0.25
Diluted $ 0.35 $ 0.30
Average Shares Outstanding:
Basic Common 5,086 5,193
Basic Class B Common 1,897 1,880
Diluted 7,123 7,248
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,
---------------------
2010 2009
---------- ----------
Current Assets
Cash and Cash Equivalents $ 16,099 $ 16,028
Investment in Short-term Securities 3,854 8,997
Accounts Receivable, net 28,037 25,569
Inventories 17,296 16,398
Prepaid Expenses 8,761 7,304
---------- ----------
Total Current Assets 74,047 74,296
---------- ----------
Property, Plant and Equipment 62,091 58,995
Other Assets 15,205 15,835
---------- ----------
Total Assets $ 151,343 $ 149,126
========== ==========
Current Liabilities
Current Maturities of Notes Payable $ 4,100 $ 4,500
Accounts Payable 6,424 4,500
Dividends Payable 1,061 996
Accrued Expenses 13,936 13,105
---------- ----------
Total Current Liabilities 25,521 23,101
---------- ----------
Long-Term Liabilities
Notes Payable 12,700 16,800
Other Noncurrent Liabilities 20,971 18,261
---------- ----------
Total Long-Term Liabilities 33,671 35,061
---------- ----------
Stockholders' Equity 92,151 90,964
---------- ----------
Total Liabilities and Stockholders'
Equity $ 151,343 $ 149,126
========== ==========
Book Value Per Share Outstanding $ 13.20 $ 12.86
Acquisitions of
Property, Plant and Equipment First Quarter $ 1,638 $ 1,327
Depreciation and Amortization Charges First Quarter $ 2,054 $ 1,889
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
October 31,
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES 2010 2009
--------- ---------
Net Income $ 2,519 $ 2,194
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 2,054 1,889
(Increase) Decrease in Accounts Receivable (897) 3,486
(Increase) Decrease in Inventories (1,273) 1,397
Increase (Decrease) in Accounts Payable 55 (829)
(Decrease) in Accrued Expenses (2,830) (1,165)
Other (92) 667
--------- ---------
Total Adjustments (2,983) 5,445
--------- ---------
Net Cash (Used in) Provided by Operating
Activities (464) 7,639
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (1,638) (1,327)
Net Dispositions (Purchases) of Investment
Securities 2,001 (996)
Other 110 -
--------- ---------
Net Cash Provided by (Used in) Investing
Activities 473 (2,323)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal Payments on Long-Term Debt (1,500) (200)
Dividends Paid (1,043) (995)
Purchase of Treasury Stock (511) -
Other 420 55
--------- ---------
Net Cash Used in Financing Activities (2,634) (1,140)
--------- ---------
Effect of exchange rate changes on cash and cash
equivalents (38) 13
Net (Decrease) Increase in Cash and Cash Equivalents (2,663) 4,189
Cash and Cash Equivalents, Beginning of Year 18,762 11,839
--------- ---------
Cash and Cash Equivalents, October 31 $ 16,099 $ 16,028
========= =========
Oil-Dri Announces First Quarter Results for Fiscal 2011
| Source: Oil-Dri Corporation of America
CHICAGO, IL--(Marketwire - December 8, 2010) - Oil-Dri Corporation of America (NYSE : ODC )
today announced net sales for the first quarter of $56,285,000, a 5%
increase compared with net sales of $53,404,000 for the previous fiscal
year. Net income for the first quarter was $2,519,000, or $0.35 per
diluted share, a 17% increase compared with net income of $2,194,000, or
$0.30 per diluted share one year ago.
FIRST QUARTER REVIEW
President and Chief Executive Officer Daniel S. Jaffee said, "Our business
performed well during the first quarter with net sales increases in both
reporting segments and volume increases within the Business to Business
Products Group. A combination of a favorable product mix and lower cost of
fuel for production helped to offset increases in freight, materials and
packaging costs."
BUSINESS REVIEW
Net sales for the Company's Business to Business Products Group were
$19,045,000 and group income was $5,288,000 for the quarter. Net sales and
unit volume were up for bleaching clay products and agricultural chemical
carriers. Bleaching clay products
were up due to the characteristics of this year's soybean crop, which
required more clay to remove impurities during oil processing. Agricultural chemical carriers were up
due to an increase in customers' demand, which reflected a return to more
historical inventory levels. Overall freight, materials and packaging
costs have increased from the prior year.
Net sales for the Company's Retail and Wholesale Products Group were
$37,240,000 and group income was $3,066,000 for the quarter. Net sales and
unit volume were up for branded
scoopable litters and floor
absorbents. Improved unit sales to a major customer and reduced trade
spending slightly increased the Group's net sales in the quarter. Freight,
materials and packaging costs were up in the quarter versus one year ago.
FINANCIAL REVIEW
Cash, cash equivalents and short-term investments at October 31, 2010,
totaled $19,953,000. Cash used in operations was $464,000 for the first
quarter primarily due to increases in accounts receivable and inventories
driven by net sales increases. Cash provided by operations in the first
quarter of fiscal 2010 was $7,639,000 primarily due to decreases in
accounts receivable and inventories commensurate with net sales declines.
Capital expenditures for the first quarter totaled $1,638,000, which was
$416,000 less than the depreciation and amortization for the quarter of
$2,054,000.
On October 14, 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. The dividends were payable December 3,
2010 to stockholders of record at the close of business on November 19,
2010.
At the first quarter closing price of $21.99 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 first quarter, the Company repurchased 24,057 shares of Common
Stock at an average price of $21.23 per share. The Company's current
repurchase authorization has 209,943 shares of Common Stock remaining.
On November 12, 2010, the Company sold at face value $18,500,000 of senior
unsecured notes. The notes have a final maturity of ten years and bear
interest at 3.96% per annum. The proceeds of the sale may be used to fund
future principal payments of the Company's debt, acquisitions, stock
repurchases, capital expenditures and for working capital purposes.
LOOKING FORWARD
Jaffee continued, "We continue to be optimistic about the fiscal year. We
are pleased with the positive start in the first quarter and are hopeful
that subsequent quarters will continue the trend of improved net sales and
unit volume."
The Company will offer a live webcast of the first quarter earnings
teleconference on December 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.
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.