Oil-Dri Announces Second Quarter and Six-Month Results
(firmenpresse) - CHICAGO, IL -- (Marketwire) -- 03/11/13 -- Oil-Dri Corporation of America (NYSE: ODC) today announced net sales of $61,122,000 for the second quarter ended January 31, 2013, a 2% increase compared with net sales of $60,203,000 in the same quarter one year ago. Net income for the second quarter was $2,146,000, or $0.31 per diluted share, down 31% from net income of $3,239,000, or $0.45 per diluted share, for the same quarter one year ago.
Net sales for the six-month period were $122,539,000, a 2% increase compared with net sales of $119,785,000 in the same period one year ago. Net income for the six-month period was $6,598,000, or $0.94 per diluted share, up 57% from net income of $4,314,000, or $0.60 per diluted share, in the same period one year ago.
President and Chief Executive Officer Daniel S. Jaffee said, "We are pleased to report a significant increase in earnings for the first six-months. However, due to anticipated increased advertising and promotional spending for Cat's Pride Fresh & Light in the Retail and Wholesale segment, quarterly earnings per share were down substantially from last year's second quarter.
"We are encouraged by the repeat purchases of our Cat's Pride Fresh & Light and are focusing our efforts on obtaining consumer trial and expanded distribution."
Net sales for the Company's Business to Business segment for the second quarter were up $412,000 or 2% while segment income was up $674,000 or 10% from the prior year period. The increase was due to volume growth of bleaching clays and animal health products. Market conditions in the global production and processing of agricultural products continued to be favorable in the quarter. Sales of our animal health products grew in volume and dollars. Net sales of co-packaged coarse cat litters were also up during the quarter. Sales declined for products used as agricultural chemical carriers sold to corn rootworm producers and products used in other horticultural applications.
Net sales of Business to Business products for the six-month period were $43,497,000, a 3% increase compared with net sales of $42,237,000 in the same period one year ago. Segment income for the six-month period was $14,624,000, a 5% increase from the same period one year ago. The increase was due to an increase in volume of bleaching clays and animal health products, offset by decreased volume in the recycled oil and agricultural chemical markets.
Net sales for the company's Retail and Wholesale Products for the second quarter were up 1% while segment income was down $1,122,000 or 37% from the prior year period. The decrease in income was due to increased costs incurred to encourage consumer trial and expanded distribution of Cat's Pride Fresh & Light cat litter introduced in 2011. Net sales of industrial and automotive products were down while sales by our foreign subsidiaries were up from the same quarter one year ago.
Net sales of Retail and Wholesale products for the six-month period were $79,042,000, a 2% increase compared with net sales of $77,548,000 in the same period one year ago due to lower trade spending. Segment income for the six-month period was $6,460,000, a 251% increase from the same period one year ago. The increase was due to more sales, better product mix, lower packaging costs and lower natural gas costs compared to last year.
On December 4, 2012, Oil-Dri's Board of Directors declared a one-time accelerated cash dividend of $0.36 per share of outstanding Common Stock and $0.27 per share of outstanding Class B Stock, which reflect dividends normally paid in third and fourth quarters. The dividends were paid on December 28, 2012 to stockholders of record at the close of business on December 14, 2012. The Company has paid cash dividends continuously since 1974 and has increased dividends annually for the past nine years.
At the end of the second quarter, the annualized dividend yield on the Company's Common Stock was 2.6%, based on the quarter's closing stock price of $27.75 per share and an annual cash dividend of $0.72.
Cash, cash equivalents and short-term investments at January 31, 2012, totaled $35,818,000, which was only $506,000 less than last year despite paying $2,368,000 more in dividends than in the first six-months of fiscal 2012. Capital expenditures for the six-month period totaled $5,009,000, which was $534,000 more than depreciation and amortization of $4,475,000. Capital expenditures included improvements to and replacement of machinery at our manufacturing facilities. Capital expenditures were $3,512,000 at this time last year.
Net cash provided by operating activities was $10,811,000 in the second quarter compared to $10,281,000 for the same period one year ago due to the increase in income and changes in working capital.
Jaffee continued, "In the balance of the fiscal year we will continue to support Cat's Pride Fresh & Light and our other value added products with more advertising and promotional spending than we have historically. We expect that our overall advertising and promotional spending for the fiscal year will remain high, but be less than last fiscal year."
The Company will offer a live webcast of the second quarter earnings teleconference on Wednesday, March 13, 2013 from 10:00 am to 10:30 am, CT. To listen via the web, visit or . An archived recording of the call and written transcripts of all teleconferences are posted on the Oil-Dri website.
Cat's Pride and Fresh & Light are 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, "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.
Investor Relations Contact
Reagan Culbertson
(312) 706 3256
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Datum: 11.03.2013 - 20:01 Uhr
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