Oil-Dri Announces First Quarter Fiscal 2018 Results
09 December 2017 - 8:34AM
Oil-Dri Corporation of America (NYSE:ODC), producer and marketer of
sorbent mineral products supplying pet care, animal health, fluids
purification, agricultural ingredient, sports field, industrial and
automotive markets, today announced its first quarter fiscal 2018
earnings.
Oil-Dri reported the following key metrics (As of October 31,
2017, compared to the same period of the prior year):
- Net sales of $66,646,000, flat
- Net income of $3,050,000, up 52%
- Earnings per diluted share of $0.41, up
46%
- Business-to-Business Products Group
- Net sales of $27,087,000, down 1%
- Segment operating income of $
8,876,000, down 6%
- Retail and Wholesale Products Group
- Net sales of $39,559,000, up 1%
- Segment operating income of $2,365,000, compared to a
loss
President and Chief Executive Officer, Daniel S. Jaffee stated,
“We are pleased that sales of our private label lightweight
scoopable litter products continued to see strong growth compared
to the first quarter of last year. This gain can be directly
attributed to both new distribution and increased sales to existing
retail customers. First quarter results were notably impacted by an
approximate $3,200,000 reduction in advertising expenses. As we
hone our focus on the promotion of all lightweight litter products
in the balance of fiscal 2018, we expect advertising expense levels
similar to that of fiscal year 2017. For more detailed information
on our first quarter 2018 results, please review our Form 10-Q that
was filed today and join us for our next earnings teleconference on
December 11th. Call details are available on our website’s ‘Events’
page.”
While Oil-Dri’s founding product was granular clay floor
absorbents, it has since greatly diversified its portfolio. The
Company’s mission to “Create Value from Sorbent Minerals” is
supported by its wide array of consumer and business to business
product offerings. In 2016, Oil-Dri celebrated its
seventy-fifth year of business and looks forward to the next
milestone.
The Company will host its first quarter fiscal 2018 earnings
teleconference on Monday, December 11, 2017 and
its second quarter teleconference on Monday, March 12,
2018. Both teleconferences will commence at 10:00 am,
Central Time. Dial-in details will be communicated via web alert
approximately one week prior to the calls.
Oil-Dri will host its Annual Meeting of Stockholders on
Tuesday, December 12, 2017 starting at 9:30 am,
Central Time. The meeting will be held at The Standard Club, 320
South Plymouth Court, Chicago, Illinois 60604. The record date for
voting eligibility at the Annual Meeting was October 16, 2017.
“Oil-Dri” is a registered trademark 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,” or 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.
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
(in
thousands, except per share amounts) |
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
First Quarter Ended October 31 |
|
2017 |
|
% of Sales |
|
2016 |
|
% of Sales |
Net
Sales |
$ |
66,646 |
|
|
100.0 |
% |
|
$ |
66,612 |
|
|
100.0 |
% |
Cost of
Sales |
(47,677 |
) |
|
(71.5 |
)% |
|
(45,887 |
) |
|
(68.9 |
)% |
Gross
Profit |
18,969 |
|
|
28.5 |
% |
|
20,725 |
|
|
31.1 |
% |
Selling,
General and Administrative Expenses |
(15,053 |
) |
|
(22.6 |
)% |
|
(17,679 |
) |
|
(26.5 |
)% |
Operating
Income |
3,916 |
|
|
5.9 |
% |
|
3,046 |
|
|
4.6 |
% |
Interest
Expense |
(201 |
) |
|
(0.3 |
)% |
|
(251 |
) |
|
(0.4 |
)% |
Other Income
(Loss) |
124 |
|
|
0.2 |
% |
|
(116 |
) |
|
(0.2 |
)% |
Income Before
Income Taxes |
3,839 |
|
|
5.8 |
% |
|
2,679 |
|
|
4.0 |
% |
Income Tax
(Expense) Benefit |
(789 |
) |
|
(1.2 |
)% |
|
(670 |
) |
|
(1.0 |
)% |
Net
Income |
$ |
3,050 |
|
|
4.6 |
% |
|
$ |
2,009 |
|
|
3.0 |
% |
Net Income Per
Share: |
|
|
|
|
|
|
|
Basic Common |
$ |
0.45 |
|
|
|
|
$ |
0.30 |
|
|
|
Basic Class B Common |
$ |
0.34 |
|
|
|
|
$ |
0.23 |
|
|
|
Diluted Common |
$ |
0.41 |
|
|
|
|
$ |
0.28 |
|
|
|
Average Shares
Outstanding: |
|
|
|
|
|
|
|
Basic Common |
5,025 |
|
|
|
|
5,004 |
|
|
|
Basic Class B Common |
2,090 |
|
|
|
|
2,067 |
|
|
|
Diluted Common |
7,211 |
|
|
|
|
7,138 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
(in thousands, except
per share amounts) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
As of October 31 |
|
|
2017 |
|
2016 |
Current
Assets |
|
|
|
|
Cash and Cash Equivalents |
|
$ |
8,401 |
|
|
$ |
15,991 |
|
Short-term Investments |
|
18,133 |
|
|
5,359 |
|
Accounts Receivable, Net |
|
32,054 |
|
|
30,971 |
|
Inventories |
|
22,759 |
|
|
23,567 |
|
Prepaid Expenses (1) |
|
7,554 |
|
|
6,227 |
|
Total Current
Assets |
|
88,901 |
|
|
82,115 |
|
Property, Plant
and Equipment, Net |
|
84,251 |
|
|
81,688 |
|
Other Assets
(1) |
|
33,765 |
|
|
36,264 |
|
Total
Assets |
|
$ |
206,917 |
|
|
$ |
200,067 |
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
Current Maturities of Notes Payable |
|
$ |
3,083 |
|
|
$ |
3,083 |
|
Accounts Payable |
|
7,828 |
|
|
6,910 |
|
Dividends Payable |
|
1,559 |
|
|
1,479 |
|
Accrued Expenses |
|
15,277 |
|
|
15,855 |
|
Total Current
Liabilities |
|
27,747 |
|
|
27,327 |
|
Noncurrent
Liabilities |
|
|
|
|
Notes Payable |
|
6,085 |
|
|
9,140 |
|
Other Noncurrent Liabilities |
|
44,975 |
|
|
46,826 |
|
Total Noncurrent
Liabilities |
|
51,060 |
|
|
55,966 |
|
Stockholders'
Equity |
|
128,110 |
|
|
116,774 |
|
Total
Liabilities and Stockholders' Equity |
|
$ |
206,917 |
|
|
$ |
200,067 |
|
|
|
|
|
|
Book Value Per
Share Outstanding |
|
$ |
18.01 |
|
|
$ |
16.51 |
|
|
|
|
|
|
Acquisitions
of: |
|
|
|
|
Property, Plant
and Equipment |
First
Quarter |
$ |
4,045 |
|
|
$ |
4,295 |
|
|
Year To
Date |
$ |
4,045 |
|
|
$ |
4,295 |
|
Depreciation
and Amortization Charges |
First
Quarter |
$ |
3,192 |
|
|
$ |
3,159 |
|
|
Year To
Date |
$ |
3,192 |
|
|
$ |
3,159 |
|
(1) Prior year amounts have been retrospectively adjusted to
conform to the current year presentation of current deferred income
taxes required by new guidance under Accounting Standards
Codification ( “ASC ”) 740, Balance Sheet Classification of
Deferred Taxes.
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
|
(in thousands) |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
October 31 |
|
2017 |
|
2016 |
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
Net
Income |
$ |
3,050 |
|
|
$ |
2,009 |
|
Adjustments to
reconcile net income to net cash |
|
|
|
provided by
operating activities, net of acquisition: |
|
|
|
Depreciation and Amortization |
3,192 |
|
|
3,159 |
|
Decrease
(Increase) in Accounts Receivable |
718 |
|
|
(688 |
) |
Increase
in Inventories |
(154 |
) |
|
(367 |
) |
(Decrease) Increase in Accounts Payable |
(825 |
) |
|
476 |
|
Decrease
in Accrued Expenses |
(3,275 |
) |
|
(3,592 |
) |
Increase
in Pension and Postretirement Benefits |
334 |
|
|
464 |
|
Other |
(472 |
) |
|
(136 |
) |
Total Adjustments |
(482 |
) |
|
(684 |
) |
Net Cash
Provided by Operating Activities |
2,568 |
|
|
1,325 |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
Capital Expenditures |
(4,045 |
) |
|
(4,295 |
) |
Net Purchase of Investment Securities |
5,468 |
|
|
4,827 |
|
Other |
8 |
|
|
1 |
|
Net Cash
Provided by Investing Activities |
1,431 |
|
|
533 |
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
Principal Payments on Long-Term Debt |
(3,083 |
) |
|
(3,083 |
) |
Dividends Paid |
(1,553 |
) |
|
(1,477 |
) |
Purchase of Treasury Stock |
(27 |
) |
|
(122 |
) |
Other |
0 |
|
|
128 |
|
Net Cash Used
in Financing Activities |
(4,663 |
) |
|
(4,554 |
) |
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
(30 |
) |
|
58 |
|
|
|
|
|
Net Decrease in
Cash and Cash Equivalents |
(694 |
) |
|
(2,638 |
) |
Cash and Cash
Equivalents, Beginning of Period |
9,095 |
|
|
18,629 |
|
Cash and Cash
Equivalents, End of Period |
$ |
8,401 |
|
|
$ |
15,991 |
|
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