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
2009 Sales 2008 Sales
--------- ------- --------- -------
Net Sales $ 58,053 100.0% $ 59,543 100.0%
Cost of Sales (44,833) 77.2% (48,486) 81.4%
--------- ------- --------- -------
Gross Profit 13,220 22.8% 11,057 18.6%
Operating Expenses (9,631) 16.6% (8,236) 13.8%
--------- ------- --------- -------
Operating Income 3,589 6.2% 2,821 4.7%
Interest Expense (470) 0.8% (552) 0.9%
Other Income 301 0.5% 445 0.7%
--------- ------- --------- -------
Income Before Income Taxes 3,420 5.9% 2,714 4.6%
Income Taxes (1,004) 1.7% (701) 1.2%
--------- ------- --------- -------
Net Income $ 2,416 4.2% $ 2,013 3.4%
========= ======= ========= =======
Net Income Per Share:
Basic Common $ 0.36 $ 0.30
Basic Class B Common $ 0.29 $ 0.25
Diluted $ 0.33 $ 0.28
Average Shares Outstanding:
Basic Common 5,149 5,092
Basic Class B Common 1,880 1,862
Diluted 7,223 7,223
Nine Months Ended April 30,
--------------------------------------
% of % of
2009 Sales 2008 Sales
--------- ------- --------- -------
Net Sales $ 180,311 100.0% $ 172,854 100.0%
Cost of Sales (142,802) 79.2% (138,019) 79.8%
--------- ------- --------- -------
Gross Profit 37,509 20.8% 34,835 20.2%
Operating Expenses (26,711) 14.8% (25,347) 14.7%
--------- ------- --------- -------
Operating Income 10,798 6.0% 9,488 5.5%
Interest Expense (1,453) 0.8% (1,696) 1.0%
Other Income 330 0.2% 1,230 0.7%
--------- ------- --------- -------
Income Before Income Taxes 9,675 5.4% 9,022 5.2%
Income Taxes (2,641) 1.5% (2,436) 1.4%
--------- ------- --------- -------
Net Income $ 7,034 3.9% $ 6,586 3.8%
========= ======= ========= =======
Net Income Per Share:
Basic Common $ 1.06 $ 1.01
Basic Class B Common $ 0.86 $ 0.81
Diluted $ 0.97 $ 0.91
Average Shares Outstanding:
Basic Common 5,135 5,052
Basic Class B Common 1,872 1,852
Diluted 7,237 7,206
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,
-------------------
2009 2008
--------- ---------
Current Assets
Cash and Cash Equivalents $ 11,680 $ 8,165
Investment in Treasury Securities 3,996 18,935
Accounts Receivable, net 28,711 31,109
Inventories 20,136 16,941
Prepaid Expenses 6,778 5,873
--------- ---------
Total Current Assets 71,301 81,023
--------- ---------
Property, Plant and Equipment 58,542 50,334
Other Assets 14,261 13,181
--------- ---------
Total Assets $ 144,104 $ 144,538
========= =========
Current Liabilities
Current Maturities of Notes Payable $ 3,200 $ 5,580
Accounts Payable 5,887 7,451
Dividends Payable 922 846
Accrued Expenses 14,435 15,078
--------- ---------
Total Current Liabilities 24,444 28,955
--------- ---------
Long-Term Liabilities
Notes Payable 18,300 21,500
Other Noncurrent Liabilities 9,958 7,598
--------- ---------
Total Long-Term Liabilities 28,258 29,098
--------- ---------
Stockholders' Equity 91,402 86,485
--------- ---------
Total Liabilities and Stockholders' Equity $ 144,104 $ 144,538
========= =========
Book Value Per Share Outstanding $ 13.04 $ 12.53
Acquisitions of
Property, Plant and Equipment
Third Quarter $ 4,925 $ 524
Year to Date $ 12,682 $ 4,352
Depreciation and Amortization Charges
Third Quarter $ 1,743 $ 1,861
Year to Date $ 5,427 $ 5,596
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 2009 2008
-------- --------
Net Income $ 7,034 $ 6,586
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and Amortization 5,427 5,596
Decrease (Increase) in Accounts Receivable 2,623 (3,285)
(Increase) in Inventories (2,392) (1,704)
(Decrease) Increase in Accounts Payable (1,424) 1,431
(Decrease) in Accrued Expenses (1,676) (1,233)
Other (1,285) (1,268)
-------- --------
Total Adjustments 1,273 (463)
-------- --------
Net Cash Provided by Operating Activities 8,307 6,123
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (12,682) (4,352)
Net Dispositions (Purchases) of Investment Securities 17,035 (440)
Other 22 43
-------- --------
Net Cash Provided by (Used in) Investing Activities 4,375 (4,749)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on Long-Term Debt (5,580) (4,080)
Dividends Paid (2,760) (2,528)
Purchase of Treasury Stock (656) (20)
Other 256 1,397
-------- --------
Net Cash Used in Financing Activities (8,740) (5,231)
-------- --------
Effect of exchange rate changes on cash and cash
equivalents 890 (111)
Net Increase (Decrease) in Cash and Cash Equivalents 4,832 (3,968)
Cash and Cash Equivalents, Beginning of Year 6,848 12,133
-------- --------
Cash and Cash Equivalents, April 30 $ 11,680 $ 8,165
======== ========
Oil-Dri Announces Third Quarter and Nine-Month Results
| Source: Oil-Dri Corporation of America
CHICAGO, IL--(Marketwire - June 5, 2009) - Oil-Dri
Corporation of America (NYSE : ODC ) today reported net sales of
$58,053,000 for its third fiscal quarter, a 3% decrease compared with net
sales of $59,543,000 in the same quarter one year ago. The Company
reported net income for the quarter of $2,416,000, or $0.33 per diluted
share, an increase of 18% compared with net income of $2,013,000, or $0.28
per diluted share one year ago.
The Company reported net sales of $180,311,000 for its nine-month period, a
4% increase compared with net sales of $172,854,000 in the same period one
year ago. Net income for the nine-month period was $7,034,000, or $0.97
per diluted share, a 7% increase compared with net income of $6,586,000, or
$0.91 per diluted share, in the same period last fiscal year.
Third Quarter Review
President and Chief Executive Officer Daniel S. Jaffee said, "Our business
has remained relatively steady through the third quarter and we are pleased
with our quarterly results in spite of these challenging economic times.
"During the third quarter, the Retail and Wholesale Products Group was
challenged by unit volume declines and unfavorable exchange rates from
international operations. The Business-to-Business Products Group incurred
increased expenses for new product introductions and experienced unit
volume declines as well. We believe the net sales and unit volume declines
seen in both groups are indicative of the economic downturn."
Business Review
Net sales for the Company's Business-to-Business Products Group were
$19,992,000 and group income was $4,085,000 in the third quarter. Net
sales for the nine-month period were $58,841,000 and group income was
$11,991,000. In the quarter, unit volumes declined for all product lines.
Net sales were down for all products except co-packaged cat litters, Agsorb agricultural carriers, Ultra-Clear
clarification aids and PelUnite Plus pellet binders. Additional expenses
were incurred for launch activities of Calibrin enterosorbents.
Net sales for the Company's Retail and Wholesale Products Group were
$38,061,000 and group income was $4,693,000 in the third quarter. Net
sales for the nine-month period were $121,470,000 and group income was
$11,908,000. In the quarter, unit volume was down across all product
lines. Net sales for Cat's Pride
branded cat litter were up slightly and net sales for Oil-Dri floor
absorbent products were flat. Unfavorable exchange rates and weak global
economic conditions for the Group's international business in Canada and
the United Kingdom negatively impacted profitability in the quarter.
Financial Review
On March 17, 2009, Oil-Dri's Board of Directors declared quarterly cash
dividends of $0.14 per share of outstanding Common Stock and $0.105 per
share of outstanding Class B Stock. The dividends will be payable today
June 5, 2009, to stockholders of record at the close of business on May 22,
2009. At the April 30, 2009 closing price of $16.14 and assuming cash
dividends continue at the same rate, the annual yield on the Company's
Common Stock is 3.5%.
Cash, cash equivalents and short-term investments totaled $15,676,000 at
April 30, 2009. Capital expenditures for the nine-month period totaled
$12,682,000, which is $7,255,000 more than the depreciation and
amortization of $5,427,800. The increase in capital expenditures was due
in large part to the construction of a new, state-of-the-art plant designed
to produce engineered granules. These granules have very unique
characteristics designed to meet customer specific needs. The plant is
scheduled to come on line during the fourth quarter of this fiscal year.
Looking Forward
Jaffee said, "The strength of our balance sheet, the overall financial
health of the Company and the stability of our basic markets are helping us
to work through the present economic difficulties. The new product
initiatives are progressing as planned and we are hopeful they will show
improved results in the coming fiscal year."
The Company will offer a live web cast of the third quarter earnings
teleconference on Monday, June 8, 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.
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.
Agsorb, Cat's Pride, Jonny Cat, Pure-Flo and Ultra-Clear are all
registered trademarks of the Oil-Dri Corporation of America. Calibrin and
Pro's Choice are trademarks of
Oil-Dri Corporation of America.
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," "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.