Click here to close now.


Microsoft Cloud Authors: Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy

News Feed Item

Oil-Dri Announces Record Quarterly Earnings

CHICAGO, IL -- (Marketwire) -- 12/07/12 -- Oil-Dri Corporation of America (NYSE: ODC) today announced net sales of $61,417,000 for the first quarter ended October 31, 2012, a 3% increase compared with net sales of $59,582,000 in the same quarter one year ago. Net income for the first quarter was a record high of $4,452,000, or $0.64 per diluted share, a significant increase compared with net income of $1,075,000 or $0.15 per diluted share, for the same quarter one year ago.

First Quarter Business Review
President and Chief Executive Officer Daniel S. Jaffee said, "This quarter's results underscore the positive sales momentum of our high-value products into profitable markets from both business segments. Our continued focus on these products led to record profits and an expansion of gross margins from 23.8% to 28.1%. Our cash generation remained strong even as we continued to invest in our business.

"We are encouraged by the net sales and segment income growth from the Retail and Wholesale Products Group. Spending in support of Cat's Pride Fresh & Light cat litters was significantly reduced in this quarter as we refocused our promotional strategy. While we spent $2,600,000 less on total advertising for our branded products compared to the same period one year ago, sales momentum has been maintained. In addition, our Business-to-Business Products Group maintained net sales and income growth despite increased costs."

First Quarter Segment Review

Business to Business            First Quarter         % Change
                          Fiscal 2013   Fiscal 2012
Net Sales                  $21,782,000   $20,934,000         4%
Segment Income              $7,523,000    $7,440,000         1%

Net sales for the Company's Business-to-Business Products Group were up 4% from one year ago driven by a higher average net selling price and increased volume. Group income in the quarter was relatively flat. Net sales were up for animal health products, agricultural carriers, and co-packaged cat litters while fluids purification product sales were down. The Group benefited from incremental sales of its engineered Verge granular carrier used for the professional pesticide and agricultural markets.

Retail and Wholesale            First Quarter         % Change
                          Fiscal 2013   Fiscal 2012
Net Sales                  $39,635,000   $38,648,000         3%
Segment Income              $4,524,000  ($1,219,000)          -

Net sales for the Company's Retail and Wholesale Products Group for the first quarter were up 3%. Group income was up substantially due to an increase in branded sales and a reduction in advertising spending. Net sales for Cat's Pride Fresh & Light benefited from increased distribution and repeat sales. Net sales and volume were down slightly for Industrial and Automotive.

Financial Review
On October 16, 2012, Oil-Dri's Board of Directors declared quarterly cash dividends of $0.18 per share of outstanding Common Stock and $0.135 per share of outstanding Class B Stock. The dividends were payable November 30, 2012 to stockholders of record at the close of business on November 16, 2012.

On December 4, 2012, Oil-Dri's Board of Directors declared accelerated cash dividends of $0.36 per share of outstanding Common Stock and $0.27 per share of outstanding Class B Stock, which reflect dividends for the third and fourth quarters of fiscal 2013. The dividends will be payable 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 9 years.

At the end of the first quarter, the annualized dividend yield on the Company's Common Stock was 3.2%, based on the quarter's stock closing price of $22.40 per share and the latest cash quarterly dividend of $0.18.

Cash, cash equivalents and short-term investments at October 31, 2012, totaled $35,117,000. Capital expenditures for the first quarter totaled $2,157,000, which was $98,000 less than the quarter's depreciation and amortization of $2,255,000.

Net cash provided by operating activities was $4,424,000 in the first quarter compared to $377,000 for the same period one year ago due to the increase in income and improvements in working capital.

Looking Forward
Jaffee continued, "We are pleased with the growing distribution and sales of our Cat's Pride Fresh & Light. We anticipate increased advertising and promotional spending for Cat's Pride Fresh & Light and other branded products for the remainder of the fiscal year. Our overall advertising expenses for fiscal 2013 will be more than historical norms but less than fiscal 2012. Many of the expenditures in fiscal 2012 associated with the launch of Fresh & Light were one-time in nature and will not recur in fiscal 2013. Examples of these one-time expenditures include slotting allowances and TV commercial production. We expect to see continued positive results from the Business-to-Business Products Group.

"We are paying close attention to the contract discussions between the longshoremen's union and the East and Gulf Coasts port employers as a strike would negatively impact our ability to supply our export customers. We are communicating with our international customers about this potential strike and evaluating production and logistics alternatives."

The Company will offer a live webcast of the first quarter earnings teleconference on Monday, December 10, 2012 from 10:00 a.m. to 10:30 a.m., Chicago Time. To listen to the call via the web, please visit or An archived recording of the call and written transcripts of all teleconferences are posted on the Oil-Dri website.

Cat's Pride, Fresh & Light and Verge are all 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," "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.

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)

                                       Three Months Ended October 31,
                                               % of                  % of
                                    2012      Sales       2011      Sales
                                 ---------  ---------  ---------  ---------
Net Sales                        $  61,417      100.0% $  59,582      100.0%
Cost of Sales                      (44,186)      71.9%   (45,379)      76.2%
                                 ---------  ---------  ---------  ---------
Gross Profit                        17,231       28.1%    14,203       23.8%
Operating Expenses                 (10,820)      17.6%   (12,407)      20.8%
Capacity Rationalization Charges       (12)       0.0%        --        0.0%
                                 ---------  ---------  ---------  ---------

Operating Income                     6,399       10.4%     1,796        3.0%
Interest Expense                      (481)       0.8%      (524)       0.9%
Other Income                           139        0.2%       201        0.3%
                                 ---------  ---------  ---------  ---------

Income Before Income Taxes           6,057        9.9%     1,473        2.5%
Income Taxes                        (1,605)       2.6%      (398)       0.7%
                                 ---------  ---------  ---------  ---------
Net Income                       $   4,452        7.2% $   1,075        1.8%
                                 =========  =========  =========  =========

Net Income Per Share:
           Basic Common          $    0.69             $    0.16
           Basic Class B Common  $    0.52             $    0.12
           Diluted               $    0.64             $    0.15

Average Shares Outstanding:
           Basic Common              4,879                 5,114
           Basic Class B Common      1,943                 1,920
           Diluted                   6,879                 7,100

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)

                                                          As of October 31,
                                                            2012      2011
                                                         --------- ---------

Current Assets
        Cash and Cash Equivalents                        $  27,177 $  21,000
        Investment in Short-term Securities                  7,940     8,390
        Accounts Receivable, net                            31,381    31,294
        Inventories                                         20,998    22,263
        Prepaid Expenses                                     8,501     8,932
                                                         --------- ---------
                        Total Current Assets                95,997    91,879
                                                         --------- ---------
Property, Plant and Equipment                               64,412    67,285
Other Assets                                                14,299    13,354
                                                         --------- ---------
Total Assets                                             $ 174,708 $ 172,518
                                                         ========= =========

Current Liabilities
        Current Maturities of Notes Payable              $   5,000 $   3,800
        Accounts Payable                                     6,551     6,621
        Dividends Payable                                    1,156     1,132
        Accrued Expenses                                    15,953    15,921
                                                         --------- ---------
                        Total Current Liabilities           28,660    27,474
                                                         --------- ---------
Long-Term Liabilities
        Notes Payable                                       22,400    27,400
        Other Noncurrent Liabilities                        34,610    22,264
                                                         --------- ---------
                        Total Long-Term Liabilities         57,010    49,664
                                                         --------- ---------
Stockholders' Equity                                        89,038    95,380
                                                         --------- ---------
Total Liabilities and Stockholders' Equity               $ 174,708 $ 172,518
                                                         ========= =========

Book Value Per Share Outstanding                         $   13.05 $   13.56

Acquisitions of
        Property, Plant
        and Equipment                     First Quarter  $   2,157 $   1,611
                                          Year to Date   $   2,157 $   1,611
        Depreciation and
         Amortization                     First Quarter
         Charges                                         $   2,255 $   2,345
                                          Year to Date   $   2,255 $   2,345

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)

                                                       For the Three Months
                                                         OCTOBER 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES                      2012       2011
                                                       ---------  ---------

Net Income                                             $   4,452  $   1,075

Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and Amortization                            2,255      2,345
  Capacity Rationalization Plan Charges                       12         --
  (Increase) in Accounts Receivable                       (1,187)    (2,102)
  (Increase) in Inventories                               (1,325)    (3,033)
  Increase in Accounts Payable                                17        449
  (Decrease) Increase in Accrued Expenses                 (1,530)       539
  Increase in Pension and Postretirements benefits           674        500
  Other                                                    1,056        604
                                                       ---------  ---------
    Total Adjustments                                        (28)      (698)
                                                       ---------  ---------
  Net Cash Provided by Operating Activities                4,424        377
                                                       ---------  ---------

  Capital Expenditures                                    (2,157)    (1,611)
  Net Dispositions of Investment Securities                1,225      7,435
  Other                                                        4         10
                                                       ---------  ---------
  Net Cash (Used in) Provided by Investing Activities       (928)     5,834
                                                       ---------  ---------

  Principal Payments on Long-Term Debt                    (2,300)    (2,100)
  Dividends Paid                                          (1,155)    (1,130)
  Purchase of Treasury Stock                                  (9)         0
  Other                                                       73        109
                                                       ---------  ---------
  Net Cash (Used in) Financing Activities                 (3,391)    (3,121)
                                                       ---------  ---------

Effect of exchange rate changes on cash and cash
 equivalents                                                 (21)        25

Net Increase in Cash and Cash Equivalents                     84      3,115
Cash and Cash Equivalents, Beginning of Year              27,093     17,885
                                                       ---------  ---------
Cash and Cash Equivalents, October 31                  $  27,177  $  21,000
                                                       =========  =========

Add to Digg Bookmark with Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. Because they can be accessed via the Internet, these devices create a tremendous opportunity to inte...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.