Cover Page
Cover Page - shares | 3 Months Ended | |
Oct. 31, 2024 | Nov. 30, 2024 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-12622 | |
Entity Registrant Name | OIL-DRI CORPORATION OF AMERICA | |
Entity Central Index Key | 0000074046 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2048898 | |
Entity Address, Address Line One | 410 North Michigan Avenue | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60611-4213 | |
City Area Code | 312 | |
Local Phone Number | 321-1515 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | ODC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 5,159,843 | |
Class B | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 2,137,428 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2024 | Jul. 31, 2024 |
Current Assets | ||
Cash and cash equivalents | $ 12,506 | $ 23,481 |
Accounts receivable, net of allowances of $1,562 and $934 at October 31, 2024 and July 31, 2024, respectively | 70,544 | 62,171 |
Inventories, net | 56,025 | 54,236 |
Prepaid expenses and other assets | 5,040 | 7,270 |
Total Current Assets | 144,115 | 147,158 |
Other Assets | ||
Property, plant and equipment, net | 137,947 | 137,796 |
Goodwill | 15,674 | 15,443 |
Trademarks, trade names and patents, net of accumulated amortization of $647 and $625 at October 31, 2024 and July 31, 2024, respectively | 6,632 | 6,662 |
Customer list, net of accumulated amortization of $8,431 and $8,149 at October 31, 2024 and July 31, 2024, respectively | 19,754 | 20,036 |
Deferred income taxes | 1,075 | 1,537 |
Operating lease right-of-use assets | 17,552 | 18,667 |
Other | 7,422 | 7,306 |
Total Other Assets | 206,056 | 207,447 |
Total Assets | 350,171 | 354,605 |
Current Liabilities | ||
Current maturities of notes payable | 1,000 | 1,000 |
Accounts Payable | 13,824 | 15,009 |
Dividends payable | 2,098 | 2,096 |
Operating lease liabilities | 4,476 | 4,556 |
Accrued expenses | 33,443 | 44,016 |
Total Current Liabilities | 54,841 | 66,677 |
Noncurrent Liabilities | ||
Long-term debt, net of unamortized debt issuance costs of $223 and $226 at October 31, 2024 and July 31, 2024, respectively | 44,777 | 49,774 |
Deferred compensation | 5,664 | 5,667 |
Long-term operating lease liabilities | 14,294 | 15,391 |
Other | 6,603 | 6,508 |
Total Noncurrent Liabilities | 71,338 | 77,340 |
Total Liabilities | 126,179 | 144,017 |
Stockholders’ Equity | ||
Additional paid-in capital | 62,601 | 60,877 |
Retained earnings | 246,525 | 232,247 |
Accumulated other comprehensive income | 727 | 769 |
Less Treasury Stock, at cost (3,723,947 Common and 380,628 Class B shares at October 31, 2024 and 3,702,185 Common and 362,649 Class B shares at July 31, 2024) | (87,001) | (84,441) |
Total Stockholders' Equity | 223,992 | 210,588 |
Total Liabilities & Stockholders’ Equity | 350,171 | 354,605 |
Common | ||
Stockholders’ Equity | ||
Common Stock, Value, Issued | 888 | 884 |
Class B | ||
Stockholders’ Equity | ||
Common Stock, Value, Issued | $ 252 | $ 252 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet Parenthetical - USD ($) $ in Thousands | Oct. 31, 2024 | Jul. 31, 2024 |
Allowance for doubtful accounts | $ 1,562 | $ 934 |
Accumulated amortization of other intangibles | 647 | 625 |
Accumulated amortization of customer list | 8,431 | 8,149 |
Net unamortized debt issuance costs | $ 223 | $ 226 |
Common | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued | 8,884,473 | 8,843,673 |
Treasury stock, common shares | 3,723,947 | 3,702,185 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued | 2,518,056 | 2,518,056 |
Treasury stock, common shares | 380,628 | 362,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Net Sales | $ 127,945 | $ 111,438 |
Cost of Goods Sold | (87,165) | (80,447) |
Gross Profit | 40,780 | 30,991 |
Selling, General and Administrative Expenses | (19,590) | (17,835) |
Income from Operations | 21,190 | 13,156 |
Other (Expense) Income | ||
Interest expense | (734) | (361) |
Interest income | 150 | 175 |
Other, net | (404) | (140) |
Total Other Expense, Net | (988) | (326) |
Income Before Income Taxes | 20,202 | 12,830 |
Income Tax Expense | (3,826) | (2,088) |
Net Income | $ 16,376 | $ 10,742 |
Average Shares Outstanding | ||
Dividends Declared Per Share (in dollars per share) | $ 0.310 | $ 0.290 |
Common | ||
Other (Expense) Income | ||
Net Income | $ 12,456 | $ 8,236 |
Net Income Per Share | ||
Basic Common (in dollars per share) | $ 2.43 | $ 1.61 |
Diluted Common (in dollars per share) | $ 2.25 | $ 1.50 |
Average Shares Outstanding | ||
Basic Common (in shares) | 4,922 | 4,827 |
Diluted Common (in shares) | 6,906 | 6,794 |
Class B | ||
Other (Expense) Income | ||
Net Income | $ 3,920 | $ 2,506 |
Net Income Per Share | ||
Basic Common (in dollars per share) | $ 1.82 | $ 1.21 |
Diluted Common (in dollars per share) | $ 1.82 | $ 1.21 |
Average Shares Outstanding | ||
Basic Common (in shares) | 1,984 | 1,967 |
Diluted Common (in shares) | 1,984 | 1,967 |
Dividends Declared Per Share (in dollars per share) | $ 0.233 | $ 0.218 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Other Comprehensive (Loss) Income: | ||
Net Income | $ 16,376 | $ 10,742 |
Postretirement expenses (net of tax) | (21) | (19) |
Cumulative translation adjustment | (21) | (166) |
Other Comprehensive Loss | (42) | (185) |
Total Comprehensive Income | $ 16,334 | $ 10,557 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Thousands | Total | Common & Class B Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Total, Beginning of Period at Jul. 31, 2023 | $ 177,076 | $ 1,115 | $ 55,624 | $ 200,796 | $ (81,207) | $ 748 |
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2023 | 11,147,279 | |||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2023 | (4,010,630) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 10,742 | $ 0 | 0 | 10,742 | $ 0 | 0 |
Other Comprehensive Loss | (185) | 0 | 0 | 0 | 0 | (185) |
Dividends Declared | (1,953) | 0 | 0 | (1,953) | 0 | 0 |
Purchases of Treasury Stock | (872) | 0 | 0 | 0 | $ (872) | 0 |
Purchases of Treasury Stock (in shares) | (15,329) | |||||
Net issuance of stock under long-term incentive plans | 0 | $ 18 | 14 | 0 | $ 32 | 0 |
Net issuance of stock under long-term incentive plans (in shares) | (182,000) | (500) | ||||
Amortization of Restricted Stock | 1,108 | $ 0 | 1,108 | 0 | $ 0 | 0 |
Total, End of Period at Oct. 31, 2023 | 185,916 | $ 1,133 | 56,746 | 209,585 | $ (82,111) | 563 |
Common Stock & Class B Stock, End of Period (in shares) at Oct. 31, 2023 | 11,329,279 | |||||
Treasury Stock, End of Period (in shares) at Oct. 31, 2023 | (4,026,459) | |||||
Total, Beginning of Period at Jul. 31, 2024 | 210,588 | $ 1,136 | 60,877 | 232,247 | $ (84,441) | 769 |
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2024 | 11,361,729 | |||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2024 | (4,064,834) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 16,376 | $ 0 | 0 | 16,376 | $ 0 | 0 |
Other Comprehensive Loss | (42) | 0 | 0 | 0 | 0 | (42) |
Dividends Declared | (2,098) | 0 | 0 | (2,098) | 0 | 0 |
Purchases of Treasury Stock | (1,984) | 0 | 0 | 0 | $ (1,984) | 0 |
Purchases of Treasury Stock (in shares) | (29,002) | |||||
Net issuance of stock under long-term incentive plans | 0 | $ 4 | 572 | 0 | $ 576 | 0 |
Net issuance of stock under long-term incentive plans (in shares) | (40,800) | (10,739) | ||||
Amortization of Restricted Stock | 1,152 | $ 0 | 1,152 | 0 | $ 0 | 0 |
Total, End of Period at Oct. 31, 2024 | $ 223,992 | $ 1,140 | $ 62,601 | $ 246,525 | $ (87,001) | $ 727 |
Common Stock & Class B Stock, End of Period (in shares) at Oct. 31, 2024 | 11,402,529 | |||||
Treasury Stock, End of Period (in shares) at Oct. 31, 2024 | (4,104,575) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 16,376 | $ 10,742 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,381 | 4,368 |
Non-cash stock-based compensation | 1,152 | 1,108 |
Provision for bad debts and cash discounts | 628 | 28 |
Loss on impairment of patent applications | 48 | 0 |
Accretion of Asset Retirement Obligation | 47 | 53 |
Loss on the disposals of property, plant and equipment | 80 | 26 |
(Increase) Decrease in assets: | ||
Accounts receivable | (9,020) | (1,487) |
Inventories | (2,033) | (1,374) |
Prepaid expenses | 2,228 | 154 |
Deferred income taxes | 462 | 174 |
Other assets | 962 | 341 |
Increase (Decrease) in liabilities: | ||
Accounts payable | 1,889 | (1,289) |
Accrued expenses | (6,117) | (4,365) |
Deferred compensation | (3) | 512 |
Other liabilities | (1,161) | (427) |
Total Adjustments | (5,457) | (2,178) |
Net Cash Provided by Operating Activities | 10,919 | 8,564 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (12,817) | (8,064) |
Net Cash Used in Investing Activities | (12,817) | (8,064) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on revolving credit facility | (5,000) | 0 |
Dividends paid | (2,096) | (1,927) |
Purchase of treasury stock | (1,984) | (872) |
Net Cash Used in Financing Activities | (9,080) | (2,799) |
Effect of exchange rate changes on Cash and Cash Equivalents | 3 | 124 |
Net Decrease in Cash and Cash Equivalents | (10,975) | (2,175) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 24,481 | 31,754 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 13,506 | 29,579 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Cash and cash equivalents | 12,506 | 29,579 |
Restricted cash in prepaid expenses and other assets | 1,000 | 0 |
Interest payments, net of amounts capitalized | 324 | 0 |
Income tax payments, net of refunds | 265 | 12 |
Change in capital expenditures in accounts payable | (2,962) | (843) |
Change in capital expenditures in accrued expenses | (4,540) | 96 |
Cash dividends declared and accrued, but not paid | $ 2,098 | $ 1,953 |
Basis of Statement Presentation
Basis of Statement Presentation | 3 Months Ended |
Oct. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Statement Presentation | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and in compliance with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial statements and the related notes are condensed and should be read in conjunction with the Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024. The unaudited Condensed Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany transactions are eliminated. Except as otherwise indicated herein or as the context otherwise requires, references to "Oil-Dri," the "Company," "we," "us" or "our" refer to Oil-Dri Corporation of America and its subsidiaries. The unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals and reclassifications which are, in the opinion of management, necessary for a fair presentation of the statements contained herein. Operating results for the three months ended October 31, 2024 are not necessarily an indication of the results that may be expected for the fiscal year ending July 31, 2025. Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These immaterial reclassifications had no effect on the previously reported net income. Management Use of Estimates The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period, as well as the related disclosures. Estimates and assumptions about future events cannot be made with certainty. All of our estimates and assumptions are revised periodically. Actual results could differ from these estimates. Summary of Significant Accounting Policies Our significant accounting policies, which are summarized in detail in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024, have not materially changed. The following is a description of certain of our significant accounting policies: Trade Receivables. We recognize trade receivables when control of finished products are transferred to our customers. We record an allowance for credit losses based on our expectations and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. We also include an allowance for expected cash discounts to be taken. Property, Plant and Equipment. Property, plant and equipment includes depreciable assets such as building, machinery, equipment, furniture, vehicles, and capitalized spare parts. These assets are depreciated using the straight-line method over their estimated useful lives. Major improvements are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. These assets are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. The composition of property, plant and equipment is as follows (in thousands): October 31, July 31, Gross property, plant and equipment 335,921 333,561 Accumulated depreciation and amortization (197,974) (195,765) Total Property, Plant and Equipment, Net $ 137,947 $ 137,796 Land, Mining Property and Mineral Rights. We surface mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of goods sold in the period they are incurred. We defer and amortize the pre-production overburden removal costs during the development phase associated with opening a new mine. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred. Reclamation. We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the respective mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the respective mines. Leases. ASC 842, Leases , provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use ("ROU") asset is recognized at the commencement date on our consolidated balance sheet. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our consolidated balance sheet, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. For leases other than short-term leases, the lease liability is equal to the present value of unpaid lease payments over the remaining lease term. The lease term may reflect options to extend or terminate the lease when it is reasonably certain that such options will be exercised. To determine the present value of the lease liability, we used an incremental borrowing rate, which is defined as the rate of interest we would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. The ROU asset is based on the corresponding lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Both operating and finance lease ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. After the lease commencement date, we evaluate lease modifications, if any, that could result in a change in the accounting for leases. Certain of our leases provide for variable lease payments that vary due to changes in facts and circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or rate (e.g., the Consumer Price Index) are included in the initial measurement of the lease liability and the ROU asset. Variable lease payments that are not known at the commencement date and are determinable based on the performance or use of the underlying asset, are expensed as incurred. Our variable lease payments primarily include common area maintenance charges based on the percentage of the total square footage leased and the usage of assets, such as photocopiers. Some of our contracts may contain lease components as well as non-lease components, such as an agreement to purchase services. As allowed under ASC 842, we have elected not to separate the lease components from non-lease components for all asset classes and we will not allocate the contract consideration to these components. This policy was applied to all existing leases upon adoption of ASC 842 and will be applied to new leases on an ongoing basis. Revenue Recognition. We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns are not material nor are warranties and any related obligations. We have an unconditional right to consideration under the payment terms specified in the contracts upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $0.2 million as of both October 31, 2024 and July 31, 2024. This liability is reported in Other within Accrued Expenses on the unaudited Condensed Consolidated Balance Sheet. There was $0.2 million revenue recognized during the three months ended October 31, 2024, that was included in the liability for advance payments at the beginning of the period. We routinely commit to one-time or ongoing trade promotion programs directly with consumers, such as coupon programs, and with customers, such as volume discounts, cooperative marketing and other arrangements. We estimate and accrue the expected costs of these programs. These costs are considered variable consideration under ASC 606, Revenue from Contracts with Customers , and are netted against sales when revenue is recorded. The accruals are based on our best estimate of the amounts necessary to settle future and existing obligations on products sold as of the balance sheet date. To estimate these accruals, we rely on our historical experience of trade spending patterns and that of the industry, current trends and forecasted data. Selling, General and Administrative Expenses. Selling, general and administrative expenses ("SG&A") include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. Other Current and Noncurrent Liabilities. Other liabilities include the accruals for general expenses not yet paid, cash collected not yet vouchered, legal reserves, postretirement health benefit obligations, and reclamation liability accrual. Current liabilities are due to be paid within the next 12 months. Other noncurrent liabilities on the unaudited Condensed Consolidated Balance Sheet includes $4.8 million for the reclamation liability as of both October 31, 2024 and July 31, 2024 and $1.7 million for postretirement health benefit as of both October 31, 2024 and July 31, 2024, respectively. New Accounting Pronouncements and Regulations. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. In addition, ASU No. 2023-07 also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. In November 2024, the FASB issued ASU No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)." These amendments primarily require disaggregated disclosure, in the notes to the financial statements, of prescribed categories of expenses within relevant income statement captions. The requirements will be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. Recently Adopted Accounting Standards There have been no new accounting pronouncements adopted in the period . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Oct. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE We utilize the two-class method to report our earnings per share ("EPS"). The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and participation rights in undistributed earnings. Common Stock is entitled to cash dividends equal to at least 133.33% on a per share basis of the cash dividend paid on Class B Stock. In computing earnings per share, the Company has allocated dividends declared to shares of Common Stock and Class B Stock based on amounts actually declared for each class of stock and 33.33% more of the undistributed earnings have been allocated to shares of Common Stock than to shares of Class B Stock on a per share basis. Common Stock is entitled to one vote per share and Class B Stock is entitled to ten votes per share. Common Stock have no conversion rights. Class B Stock is convertible by the holders thereof on a share-by-share basis into Common Stock at any time and is subject to mandatory conversion under certain circumstances. Basic EPS is computed by dividing net earnings, reduced for any distributed and undistributed earnings allocated to unvested restricted shares, by the weighted-average number of shares outstanding during the period for each class of common stock. Diluted EPS, for each class of common stock, is computed by dividing net earnings by the weighted-average number of common shares and potential common shares outstanding during the period. Dilution for Common Stock takes into consideration the effect of both unvested restricted shares and convertible shares of Class B Stock, if the effect is dilutive. Dilution for Class B Stock takes into consideration the effect of unvested restricted shares, if the effect is dilutive. Below is a reconciliation of the calculation of basic and diluted EPS. For the Three Months Ended October 31, 2024 (in thousands, except for per share data) Total Common Class B Net income $ 16,376 $ 12,456 $ 3,920 Distributed and undistributed earnings on restricted shares (817) (517) (300) Income available to stockholders $ 15,559 $ 11,939 $ 3,620 Net Income (Numerator) $ 11,939 $ 3,620 Weighted Average Shares Outstanding (Denominator) 4,922 1,984 Basic EPS $ 2.43 $ 1.82 Effect of dilution - Net Income (1) $ 3,620 $ — Net income assuming dilution (Numerator) $ 15,559 $ 3,620 Effect of dilution - Shares (1) 1,984 $ — Shares assuming dilution (Denominator) 6,906 $ 1,984 Diluted EPS $ 2.25 $ 1.82 (1) The impact of 131,525 shares of unvested Common Stock and 62,663 shares of unvested Class B Stock was anti-dilutive therefore not included in the calculation of diluted EPS For the Three Months Ended October 31, 2023 (in thousands, except for per share data) Total Common Class B Net income $ 10,742 $ 8,236 $ 2,506 Distributed and undistributed earnings on restricted shares (570) (453) (117) Income available to stockholders $ 10,172 $ 7,783 $ 2,389 Net Income (Numerator) $ 7,783 $ 2,389 Weighted Average Shares Outstanding (Denominator) 4,827 1,967 Basic EPS $ 1.61 $ 1.21 Effect of dilution - Net Income (1) $ 2,389 $ — Net income assuming dilution (Numerator) $ 10,172 $ 2,389 Effect of dilution - Shares (1) 1,967 $ — Shares assuming dilution (Denominator) 6,794 $ 1,967 Diluted EPS $ 1.50 $ 1.21 (1) The impact of 210,675 shares of unvested Common Stock and 54,370 shares of unvested Class B Stock was anti-dilutive therefore not included in the calculation of diluted EPS |
Inventories
Inventories | 3 Months Ended |
Oct. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The composition of inventories is as follows (in thousands): October 31, July 31, Finished goods $ 34,130 $ 31,772 Packaging 8,563 8,995 Spare parts 6,973 7,059 Other 6,359 6,410 Total Inventories $ 56,025 $ 54,236 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor, and other overhead costs. The Company maintains reserves against inventory to reduce the carrying value to the expected net realizable value. These reserves are based upon a combination of factors including historical issues and market trends. Inventory reserves were $3.7 million and $3.8 million as of October 31, 2024 and July 31, 2024, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into categories based on the lowest level of input that is significant to the fair value measurement. The categories in the fair value hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs. Cash equivalents are classified as Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. These cash instruments are primarily money market funds and are included in cash and cash equivalents on the Consolidated Balance Sheets. We had $0.9 million in cash equivalents as of October 31, 2024 and $3.0 million in cash equivalents as of July 31, 2024. Balances of accounts receivable, short-term investments and accounts payable approximated their fair values at October 31, 2024 and July 31, 2024 due to the short maturity and nature of those balances. Debt is reported at outstanding face value, less unamortized debt issuance costs. The estimated fair value of debt, including current maturities, was $47.1 million and $51.1 million as of October 31, 2024 and July 31, 2024, respectively. The fair value was estimated using the exit price notion of fair value and is classified as Level 2. See Note 8 of the Notes to the Consolidated Financial Statements for further information about such debt. We apply fair value techniques on at least an annual basis associated with: (1) valuing potential impairment loss related to goodwill, trademarks and other indefinite-lived intangible assets and (2) valuing potential impairment loss related to long-lived assets. See Note 5 of the Notes to the unaudited Condensed Consolidated Financial Statements for further information about goodwill and other intangible assets. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Oct. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Our intangible assets are mainly comprised of customer lists, patents, trademarks, trade names and goodwill. During fiscal year 2024, we recorded additions of intangible assets of $37.4 million related to the acquisition of Ultra Pet Company, Inc. ("Ultra Pet"), the components of which were $20.4 million of customer list, $5.2 million of trade name and $11.8 million of goodwill. During the first quarter of fiscal year 2025 we recognized a measurement period adjustment as a result of our acquisition of Ultra Pet, which increased our goodwill by $0.2 million. We amortize customer lists and patents on a straight-line basis over periods ranging from 18 to 20 years. Estimated intangible amortization for fiscal year 2025 is $1.2 million. Estimated intangible amortization for each of the next five fiscal years is $1.2 million. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Oct. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current | ACCRUED EXPENSES Accrued expenses is as follows (in thousands): October 31, July 31, Payables $ 9,522 $ 11,586 Salaries, Wages, Commissions and Employee Benefits 8,972 20,711 Taxes 4,352 1,736 Freight 4,033 2,928 Trade promotions and advertising 3,657 2,743 Other 2,087 3,104 Georgia Landfill Modification Reserve 820 1,208 $ 33,443 $ 44,016 |
Other Contingencies
Other Contingencies | 3 Months Ended |
Oct. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Contingencies | OTHER CONTINGENCIES We are party to various legal actions from time to time that are ordinary in nature and incidental to the operation of our business, including ongoing litigation. While it is not possible at this time to determine with certainty the ultimate outcome of these or other lawsuits, we believe that none of the pending proceedings will have a material adverse effect on our business, financial condition, results of operations or cash flows. |
Debt
Debt | 3 Months Ended |
Oct. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT We are party to an Amended and Restated Note Purchase and Private Shelf Agreement (as amended, the "Note Agreement") with PGIM, Inc. ("Prudential") and certain existing noteholders and purchasers affiliated with Prudential named therein. Pursuant to the Note Agreement, (i) on May 15, 2020 we issued $10 million in aggregate principal amount of our 3.95% Series B Senior Notes due May 15, 2030, of which $6 million aggregate principal amount remained outstanding as of October 31, 2024, (ii) on December 16, 2021, we issued an additional $25 million in aggregate principal amount of our 3.25% Series C Senior Notes due December 16, 2031, all of which remained outstanding as of October 31, 2024, and (iii) on April 30, 2024 we issued $10 million in aggregate principal amount of our 6.47% Series D Senior Notes due April 30, 2033, all of which remained outstanding as of October 31, 2024. The Note Agreement also provides us with the ability to request, from time to time, that Prudential affiliate(s) purchase, at Prudential’s discretion and on an uncommitted basis, additional senior unsecured notes of Oil-Dri (the “Shelf Notes,” and collectively with the Series A Senior Notes, Series B Senior Notes, Series C Senior Notes, and Series D Senior Notes, the “Notes”) in an aggregate principal amount of up to $75 million minus the aggregate principal amount of Notes then outstanding and Shelf Notes that have been accepted for purchase. Interest payable on any Shelf Note agreed to be purchased under the Note Agreement will be at a rate determined by Prudential and will mature no more than fifteen years after the date of original issue of such Shelf Note. On September 21, 2023, the Company entered into Amendment No. 4 to the Note Agreement extending the time frame for issuing and selling Shelf Notes to September 21, 2026. We are party to the Credit Agreement, dated as of January 27, 2006 (as previously amended, the “Credit Agreement”), among us, BMO Harris Bank N.A (“BMO”), and certain of our domestic subsidiaries. The Credit Agreement provides for a $75 million unsecured revolving credit facility, including a maximum of $20 million for letters of credit. The Credit Agreement contains restrictive covenants that, among other things and under various conditions, limit our ability to incur additional indebtedness or to dispose of assets. These restrictive covenants include certain financial covenants such as a covenant to maintain a maximum debt to earnings ratio and to maintain a certain fixed charge coverage ratio. On September 30, 2024, the Company entered into the Eighth Amendment to Credit Agreement (the “Eighth Amendment”). The Eighth Amendment amends the Credit Agreement to, among other things: increase the amount the Company may borrow from BMO from time to time pursuant to its revolving line of credit from up to $45 million to up to $75 million and to increase the aggregate maximum amount of letters of credit from up to $10 million to up to $20 million; add an accordion provision to allow the Company to increase the revolving line of credit by up to an additional $50 million, subject to the terms and conditions set forth in the Eighth Amendment; extend the termination date to September 30, 2029; and increase certain restrictive covenant thresholds, including but not limited to, an increase to the permitted acquisitions threshold in the restricted covenants from a cumulative total of $45 million to $100 million. As of October 31, 2024, and July 31, 2024, we were in compliance with the covenants. There were no new borrowings during the first quarter of fiscal year 2025, however, on October 30, 2024 we elected to pay down $5 million of our total borrowings under the Credit Agreement. As of October 31, 2024 we had $5 million drawn at a 6.66% interest rate. We also had $2.9 million of letters of credit outstanding under the Credit Agreement as of both October 31, 2024 and July 31, 2024. |
Leases
Leases | 3 Months Ended |
Oct. 31, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Certain of our leases for a shared warehouse and office facility, rail track and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. To determine the present value of the lease liability, we use an incremental borrowing rate, which is defined as the rate of interest that the Company would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. Further information about our accounting policy for leases is included in Note 1 of the Notes to the unaudited Condensed Consolidated Financial Statements. We have no material finance leases, and variable costs for operating leases are immaterial for the three months ended October 31, 2024. Operating lease costs are included in Cost of Goods Sold or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands): For the Three Months Ended October 31, 2024 2023 Operating lease cost $ 1,370 $ 546 Supplemental cash flow information related to leases was as follows (in thousands): For the Three Months Ended October 31, 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities: $ 1,136 $ 461 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Operating lease ROU assets and operating lease liabilities are separately presented on the unaudited Condensed Consolidated Balance Sheet, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows: October 31, 2024 July 31, 2024 Weighted-average remaining lease term - operating leases 5.3 years 5.4 years Weighted-average discount rate - operating leases 5.10% 5.10% Lease liability maturities as of October 31, 2024, are as follows (in thousands): Fiscal year 2025 (remaining nine months) $ 4,061 Fiscal year 2026 4,724 Fiscal year 2027 3,758 Fiscal year 2028 2,949 Fiscal year 2029 2,356 Thereafter 3,480 Total 21,328 Less: imputed interest (2,558) Net lease obligation $ 18,770 |
Operating Segments
Operating Segments | 3 Months Ended |
Oct. 31, 2024 | |
Segment Reporting [Abstract] | |
Operating Segment Disclosure | OPERATING SEGMENTS We have two operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, the farm and fleet channel, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, sports field product users and marketers of consumer products. The Business to Business Products Group customers include: processors and refiners of edible oils, renewable diesel, petroleum-based oils and biodiesel fuel, manufacturers of animal feed and agricultural chemicals, and distributors of animal health and nutrition products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024. Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group For the Three Months Ended October 31, Product 2024 2023 2024 2023 Cat Litter $ — $ — $ 67,676 $ 60,861 Industrial and Sports — — 11,854 $ 11,416 Agricultural and Horticultural 11,582 10,315 — — Fluids Purification 30,603 22,406 — $ — Animal Health & Nutrition 6,230 6,440 — — Net Sales $ 48,415 $ 39,161 $ 79,530 $ 72,277 We do not rely on any segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. Assets October 31, 2024 July 31, 2024 (in thousands) Business to Business Products Group $ 100,325 $ 92,300 Retail and Wholesale Products Group 200,545 200,187 Unallocated Assets 49,301 62,118 Total Assets $ 350,171 $ 354,605 Net sales and operating income for each segment are provided below. The corporate expenses line includes certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as information systems, finance, legal, human resources and customer service. For the Three Months Ended October 31, Net Sales Income 2024 2023 2024 2023 (in thousands) Business to Business Products Group $ 48,415 $ 39,161 $ 17,110 $ 11,123 Retail and Wholesale Products Group $ 79,530 72,277 $ 13,377 11,331 Net Sales $ 127,945 $ 111,438 Corporate Expenses (9,297) (9,298) Income from Operations 21,190 13,156 Total Other Expenses, Net (988) (326) Income before Income Taxes 20,202 12,830 Income Tax Expense (3,826) (2,088) Net Income 16,376 10,742 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | STOCK-BASED COMPENSATION The Amended and Restated Oil-Dri Corporation of America 2006 Long Term Incentive Plan, as amended (the "2006 Plan"), permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 1,719,500. As of October 31, 2024, there were 560,724 shares of Common Stock or Class B Stock available for future grants under this plan. Restricted Stock All of our non-vested restricted stock as of October 31, 2024 was issued under the 2006 Plan with vesting periods generally between one There were 40,800 and 57,000 restricted shares of Common Stock granted during the three months ended October 31, 2024 and 2023, respectively. There were no restricted shares of Class B Stock granted during the three months ended October 31, 2024 and 125,000 in the three months ended October 31, 2023. Stock-based compensation expense was $0.9 million and $0.8 million for the three months ended October 31, 2024 and 2023, respectively. A summary of restricted stock transactions is shown below: Restricted Shares Weighted Average Grant Date Fair Value Non-vested restricted stock outstanding at July 31, 2024 398 $ 49.63 Granted 41 $ 68.41 Vested (78) $ 40.50 Forfeitures (11) $ 53.66 Non-vested restricted stock outstanding at October 31, 2024 350 $ 53.75 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Oct. 31, 2024 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated other comprehensive income (loss) by component as of October 31, 2024 (in thousands): Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive Income (Loss) Balance as of July 31, 2024 $ 1,076 $ (307) $ 769 Other comprehensive income before reclassifications, net of tax — (21) (21) Amounts reclassified from accumulated other comprehensive income, net of tax (21) — (21) Net current-period other comprehensive (loss) income, net of tax (21) (21) (42) Balance as of October 31, 2024 $ 1,055 $ (328) $ 727 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Oct. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | RELATED PARTY TRANSACTIONS One member of our Board is currently the President and Chief Executive Officer of one of our vendors. Total payments to this vendor for fees and cost reimbursements were $0.3 million and $0.1 million for the first three months of fiscal years 2025 and 2024, respectively. There were $0.1 million of outstanding accounts payable due to that vendor as of both October 31, 2024 and July 31, 2024. One member of our Board retired from the role of President and Chief Executive Officer of one of our customers on September 28, 2019 and is currently party to a post-employment consulting agreement with this customer. Total sales to that customer, including sales to its subsidiaries, were $0.1 million for the first three months of both fiscal years 2025 and 2024. There were no outstanding amounts due from that customer as of either October 31, 2024 or July 31, 2024. |
Basis of Statement Presentati_2
Basis of Statement Presentation Level 2 (Policies) | 3 Months Ended |
Oct. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Trade Receivables | We recognize trade receivables when control of finished products are transferred to our customers. We record an allowance for credit losses based on our expectations and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. We also include an allowance for expected cash discounts to be taken. |
Property, Plant and Equipment, Policy | Property, plant and equipment includes depreciable assets such as building, machinery, equipment, furniture, vehicles, and capitalized spare parts. These assets are depreciated using the straight-line method over their estimated useful lives. Major improvements are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. These assets are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. The composition of property, plant and equipment is as follows (in thousands): October 31, July 31, Gross property, plant and equipment 335,921 333,561 Accumulated depreciation and amortization (197,974) (195,765) Total Property, Plant and Equipment, Net $ 137,947 $ 137,796 |
Land, Mining Property and Mineral Rights | We surface mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of goods sold in the period they are incurred. We defer and amortize the pre-production overburden removal costs during the development phase associated with opening a new mine. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred. |
Reclamation | We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the respective mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the respective mines. |
Leases | ASC 842, Leases , provides that a contract is, or contains, a lease if it conveys the right to control the use of an identified asset and, accordingly, a lease liability and a related right-of-use ("ROU") asset is recognized at the commencement date on our consolidated balance sheet. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our consolidated balance sheet, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. For leases other than short-term leases, the lease liability is equal to the present value of unpaid lease payments over the remaining lease term. The lease term may reflect options to extend or terminate the lease when it is reasonably certain that such options will be exercised. To determine the present value of the lease liability, we used an incremental borrowing rate, which is defined as the rate of interest we would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. The ROU asset is based on the corresponding lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Both operating and finance lease ROU assets are reviewed for impairment, consistent with other long-lived assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. After a ROU asset is impaired, any remaining balance of the ROU asset is amortized on a straight-line basis over the shorter of the remaining lease term or the estimated useful life. After the lease commencement date, we evaluate lease modifications, if any, that could result in a change in the accounting for leases. Certain of our leases provide for variable lease payments that vary due to changes in facts and circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or rate (e.g., the Consumer Price Index) are included in the initial measurement of the lease liability and the ROU asset. Variable lease payments that are not known at the commencement date and are determinable based on the performance or use of the underlying asset, are expensed as incurred. Our variable lease payments primarily include common area maintenance charges based on the percentage of the total square footage leased and the usage of assets, such as photocopiers. Some of our contracts may contain lease components as well as non-lease components, such as an agreement to purchase services. As allowed under ASC 842, we have elected not to separate the lease components from non-lease components for all |
Revenue Recognition | We recognize revenue when performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns are not material nor are warranties and any related obligations. We have an unconditional right to consideration under the payment terms specified in the contracts upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $0.2 million as of both October 31, 2024 and July 31, 2024. This liability is reported in Other within Accrued Expenses on the unaudited Condensed Consolidated Balance Sheet. There was $0.2 million revenue recognized during the three months ended October 31, 2024, that was included in the liability for advance payments at the beginning of the period. We routinely commit to one-time or ongoing trade promotion programs directly with consumers, such as coupon programs, and with customers, such as volume discounts, cooperative marketing and other arrangements. We estimate and accrue the expected costs of these programs. These costs are considered variable consideration under ASC 606, Revenue from Contracts with Customers , and are netted against sales when revenue is recorded. The accruals are based on our best estimate of the amounts necessary to settle future and existing obligations on products sold as of the balance sheet date. To estimate these accruals, we rely on our historical experience of trade spending patterns and that of the industry, current trends and forecasted data. |
Selling, General and Administrative Expenses | Selling, general and administrative expenses ("SG&A") include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. |
Other Current and Noncurrent Liabilities | Other liabilities include the accruals for general expenses not yet paid, cash collected not yet vouchered, legal reserves, postretirement health benefit obligations, and reclamation liability accrual. Current liabilities are due to be paid within the next 12 months. Other noncurrent liabilities on the unaudited Condensed Consolidated Balance Sheet includes $4.8 million for the reclamation liability as of both October 31, 2024 and July 31, 2024 and $1.7 million for postretirement health benefit as of both October 31, 2024 and July 31, 2024, respectively. |
New Accounting Pronouncements, Policy | Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. In addition, ASU No. 2023-07 also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. In November 2024, the FASB issued ASU No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)." These amendments primarily require disaggregated disclosure, in the notes to the financial statements, of prescribed categories of expenses within relevant income statement captions. The requirements will be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures. Recently Adopted Accounting Standards There have been no new accounting pronouncements adopted in the period . |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Oct. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | We utilize the two-class method to report our earnings per share ("EPS"). The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and participation rights in undistributed earnings. Common Stock is entitled to cash dividends equal to at least 133.33% on a per share basis of the cash dividend paid on Class B Stock. In computing earnings per share, the Company has allocated dividends declared to shares of Common Stock and Class B Stock based on amounts actually declared for each class of stock and 33.33% more of the undistributed earnings have been allocated to shares of Common Stock than to shares of Class B Stock on a per share basis. Common Stock is entitled to one vote per share and Class B Stock is entitled to ten votes per share. Common Stock have no conversion rights. Class B Stock is convertible by the holders thereof on a share-by-share basis into Common Stock at any time and is subject to mandatory conversion under certain circumstances. Basic EPS is computed by dividing net earnings, reduced for any distributed and undistributed earnings allocated to unvested restricted shares, by the weighted-average number of shares outstanding during the period for each class of common stock. Diluted EPS, for each class of common stock, is computed by dividing net earnings by the weighted-average number of common shares and potential common shares outstanding during the period. Dilution for Common Stock takes into consideration the effect of both unvested restricted shares and convertible shares of Class B Stock, if the effect is dilutive. Dilution for Class B Stock takes into consideration the effect of unvested restricted shares, if the effect is dilutive. |
Inventories Level 2 (Policies)
Inventories Level 2 (Policies) | 3 Months Ended |
Oct. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor, and other overhead costs. The Company maintains reserves against inventory to reduce the carrying value to the expected net realizable value. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Policies) | 3 Months Ended |
Oct. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into categories based on the lowest level of input that is significant to the fair value measurement. The categories in the fair value hierarchy are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs for similar assets or liabilities or valuation models whose inputs are observable, directly or indirectly. Level 3: Unobservable inputs. |
Operating Segments Level 2 (Pol
Operating Segments Level 2 (Policies) | 3 Months Ended |
Oct. 31, 2024 | |
Segment Reporting [Abstract] | |
Operating Segments | We have two operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, the farm and fleet channel, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, sports field product users and marketers of consumer products. The Business to Business Products Group customers include: processors and refiners of edible oils, renewable diesel, petroleum-based oils and biodiesel fuel, manufacturers of animal feed and agricultural chemicals, and distributors of animal health and nutrition products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024. |
Basis of Statement Presentati_3
Basis of Statement Presentation Level 3 (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | The composition of property, plant and equipment is as follows (in thousands): October 31, July 31, Gross property, plant and equipment 335,921 333,561 Accumulated depreciation and amortization (197,974) (195,765) Total Property, Plant and Equipment, Net $ 137,947 $ 137,796 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Below is a reconciliation of the calculation of basic and diluted EPS. For the Three Months Ended October 31, 2024 (in thousands, except for per share data) Total Common Class B Net income $ 16,376 $ 12,456 $ 3,920 Distributed and undistributed earnings on restricted shares (817) (517) (300) Income available to stockholders $ 15,559 $ 11,939 $ 3,620 Net Income (Numerator) $ 11,939 $ 3,620 Weighted Average Shares Outstanding (Denominator) 4,922 1,984 Basic EPS $ 2.43 $ 1.82 Effect of dilution - Net Income (1) $ 3,620 $ — Net income assuming dilution (Numerator) $ 15,559 $ 3,620 Effect of dilution - Shares (1) 1,984 $ — Shares assuming dilution (Denominator) 6,906 $ 1,984 Diluted EPS $ 2.25 $ 1.82 (1) The impact of 131,525 shares of unvested Common Stock and 62,663 shares of unvested Class B Stock was anti-dilutive therefore not included in the calculation of diluted EPS For the Three Months Ended October 31, 2023 (in thousands, except for per share data) Total Common Class B Net income $ 10,742 $ 8,236 $ 2,506 Distributed and undistributed earnings on restricted shares (570) (453) (117) Income available to stockholders $ 10,172 $ 7,783 $ 2,389 Net Income (Numerator) $ 7,783 $ 2,389 Weighted Average Shares Outstanding (Denominator) 4,827 1,967 Basic EPS $ 1.61 $ 1.21 Effect of dilution - Net Income (1) $ 2,389 $ — Net income assuming dilution (Numerator) $ 10,172 $ 2,389 Effect of dilution - Shares (1) 1,967 $ — Shares assuming dilution (Denominator) 6,794 $ 1,967 Diluted EPS $ 1.50 $ 1.21 (1) The impact of 210,675 shares of unvested Common Stock and 54,370 shares of unvested Class B Stock was anti-dilutive therefore not included in the calculation of diluted EPS |
Inventories Level 3 (Tables)
Inventories Level 3 (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | The composition of inventories is as follows (in thousands): October 31, July 31, Finished goods $ 34,130 $ 31,772 Packaging 8,563 8,995 Spare parts 6,973 7,059 Other 6,359 6,410 Total Inventories $ 56,025 $ 54,236 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses is as follows (in thousands): October 31, July 31, Payables $ 9,522 $ 11,586 Salaries, Wages, Commissions and Employee Benefits 8,972 20,711 Taxes 4,352 1,736 Freight 4,033 2,928 Trade promotions and advertising 3,657 2,743 Other 2,087 3,104 Georgia Landfill Modification Reserve 820 1,208 $ 33,443 $ 44,016 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Leases [Abstract] | |
Lease cost | We have no material finance leases, and variable costs for operating leases are immaterial for the three months ended October 31, 2024. Operating lease costs are included in Cost of Goods Sold or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands): For the Three Months Ended October 31, 2024 2023 Operating lease cost $ 1,370 $ 546 Supplemental cash flow information related to leases was as follows (in thousands): For the Three Months Ended October 31, 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities: $ 1,136 $ 461 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Operating lease ROU assets and operating lease liabilities are separately presented on the unaudited Condensed Consolidated Balance Sheet, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows: October 31, 2024 July 31, 2024 Weighted-average remaining lease term - operating leases 5.3 years 5.4 years Weighted-average discount rate - operating leases 5.10% 5.10% |
Operating lease payments due within next fiscal year as of October 31, 2024 | Lease liability maturities as of October 31, 2024, are as follows (in thousands): Fiscal year 2025 (remaining nine months) $ 4,061 Fiscal year 2026 4,724 Fiscal year 2027 3,758 Fiscal year 2028 2,949 Fiscal year 2029 2,356 Thereafter 3,480 Total 21,328 Less: imputed interest (2,558) Net lease obligation $ 18,770 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Segment Reporting [Abstract] | |
Revenue by Principal Product by Operating Segment | Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group For the Three Months Ended October 31, Product 2024 2023 2024 2023 Cat Litter $ — $ — $ 67,676 $ 60,861 Industrial and Sports — — 11,854 $ 11,416 Agricultural and Horticultural 11,582 10,315 — — Fluids Purification 30,603 22,406 — $ — Animal Health & Nutrition 6,230 6,440 — — Net Sales $ 48,415 $ 39,161 $ 79,530 $ 72,277 |
Operating Segments Information | We do not rely on any segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. Assets October 31, 2024 July 31, 2024 (in thousands) Business to Business Products Group $ 100,325 $ 92,300 Retail and Wholesale Products Group 200,545 200,187 Unallocated Assets 49,301 62,118 Total Assets $ 350,171 $ 354,605 Net sales and operating income for each segment are provided below. The corporate expenses line includes certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as information systems, finance, legal, human resources and customer service. For the Three Months Ended October 31, Net Sales Income 2024 2023 2024 2023 (in thousands) Business to Business Products Group $ 48,415 $ 39,161 $ 17,110 $ 11,123 Retail and Wholesale Products Group $ 79,530 72,277 $ 13,377 11,331 Net Sales $ 127,945 $ 111,438 Corporate Expenses (9,297) (9,298) Income from Operations 21,190 13,156 Total Other Expenses, Net (988) (326) Income before Income Taxes 20,202 12,830 Income Tax Expense (3,826) (2,088) Net Income 16,376 10,742 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Transactions | A summary of restricted stock transactions is shown below: Restricted Shares Weighted Average Grant Date Fair Value Non-vested restricted stock outstanding at July 31, 2024 398 $ 49.63 Granted 41 $ 68.41 Vested (78) $ 40.50 Forfeitures (11) $ 53.66 Non-vested restricted stock outstanding at October 31, 2024 350 $ 53.75 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Oct. 31, 2024 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income by Component | The following table summarizes the changes in accumulated other comprehensive income (loss) by component as of October 31, 2024 (in thousands): Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive Income (Loss) Balance as of July 31, 2024 $ 1,076 $ (307) $ 769 Other comprehensive income before reclassifications, net of tax — (21) (21) Amounts reclassified from accumulated other comprehensive income, net of tax (21) — (21) Net current-period other comprehensive (loss) income, net of tax (21) (21) (42) Balance as of October 31, 2024 $ 1,055 $ (328) $ 727 |
Basis of Statement Presentati_4
Basis of Statement Presentation Property, Plant, & Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2024 | Jul. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross property, plant and equipment | $ 335,921 | $ 333,561 |
Accumulated depreciation and amortization | 197,974 | 195,765 |
Total Property, Plant and Equipment, Net | $ 137,947 | $ 137,796 |
Basis of Statement Presentati_5
Basis of Statement Presentation Revenue Recognition (Details) - Payments In Advance - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2024 | Jul. 31, 2024 | |
Deferred Revenue Arrangement | ||
Liability for Payments in Advance | $ 0.2 | $ 0.2 |
Payments in Advance, Revenue Recognized | $ 0.2 |
Basis of Statement Presentati_6
Basis of Statement Presentation Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2024 | Jul. 31, 2024 |
Liabilities, Current [Abstract] | ||
Reclamation liability | $ 4.8 | $ 4.8 |
Postretirement health benefits | $ 1.7 | $ 1.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net Income | $ 16,376 | $ 10,742 |
Distributed and undistributed earnings on restricted shares | (817) | (570) |
Income available to stockholders | 15,559 | 10,172 |
Common | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net Income | 12,456 | 8,236 |
Distributed and undistributed earnings on restricted shares | (517) | (453) |
Income available to stockholders | $ 11,939 | $ 7,783 |
Weighted Average Shares Outstanding (Denominator) | 4,922 | 4,827 |
Basic EPS | $ 2.43 | $ 1.61 |
Effect of dilution - Net Income | $ 3,620 | $ 2,389 |
Net income assuming dilution | $ 15,559 | $ 10,172 |
Effect of dilution - Shares | 1,984 | 1,967 |
Diluted Common (in shares) | 6,906 | 6,794 |
Diluted EPS | $ 2.25 | $ 1.50 |
Dividend Distribution Percentage | 133.33% | |
Common Stock, Voting Rights | one | |
Dividend Distribution Percentage Increase | 33.33% | |
Class B | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net Income | $ 3,920 | $ 2,506 |
Distributed and undistributed earnings on restricted shares | (300) | (117) |
Income available to stockholders | $ 3,620 | $ 2,389 |
Weighted Average Shares Outstanding (Denominator) | 1,984 | 1,967 |
Basic EPS | $ 1.82 | $ 1.21 |
Effect of dilution - Net Income | $ 0 | $ 0 |
Net income assuming dilution | $ 3,620 | $ 2,389 |
Effect of dilution - Shares | 0 | 0 |
Diluted Common (in shares) | 1,984 | 1,967 |
Diluted EPS | $ 1.82 | $ 1.21 |
Common Stock, Voting Rights | ten |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2024 | Jul. 31, 2024 |
Inventory | ||
Finished goods | $ 34,130 | $ 31,772 |
Packaging | 8,563 | 8,995 |
Spare parts | 6,973 | 7,059 |
Other | 6,359 | 6,410 |
Total Inventories | $ 56,025 | $ 54,236 |
Inventories Narrative (Details)
Inventories Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2024 | Jul. 31, 2024 |
Inventory | ||
Inventory reserves | $ 3.7 | $ 3.8 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2024 | Jul. 31, 2024 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | $ 0.9 | $ 3 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes Payable, Fair Value | $ 47.1 | $ 51.1 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Jul. 31, 2024 | |
Finite-Lived Intangible Assets, Future Amortization Expense | ||
Customer List | $ 19,754 | $ 20,036 |
Goodwill | 15,674 | 15,443 |
Goodwill, period adjustment | 200 | |
Amortization of intangible assets | 1,200 | |
2026 | 1,200 | |
2027 | 1,200 | |
2028 | 1,200 | |
2029 | 1,200 | |
2030 | 1,200 | |
Indefinite-Lived Trademarks and Trade Names | $ 5,600 | |
Minimum | ||
Finite-Lived Intangible Assets, Future Amortization Expense | ||
Finite-Lived Intangible Asset, Useful Life | 18 years | |
Maximum | ||
Finite-Lived Intangible Assets, Future Amortization Expense | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Ultra Pet | ||
Finite-Lived Intangible Assets, Future Amortization Expense | ||
Intangible Assets | 37,400 | |
Customer List | 20,400 | |
Indefinite-Lived Trade Names | 5,200 | |
Goodwill | $ 11,800 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2024 | Jul. 31, 2024 |
Payables and Accruals [Abstract] | ||
Accrued Payables | $ 9,522 | $ 11,586 |
Salaries, Wages, Commissions and Employee Benefits | 8,972 | 20,711 |
Taxes | 4,352 | 1,736 |
Freight | 4,033 | 2,928 |
Trade promotions and advertising | 3,657 | 2,743 |
Other | 2,087 | 3,104 |
Georgia Landfill Modification Reserve | 820 | 1,208 |
Accrued expenses | $ 33,443 | $ 44,016 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Georgia Landfill Modification Reserve, Period Increase | $ 0.4 |
Georgia Landfill Modification Reserve | $ 3.5 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2024 | |
Debt Instrument [Line Items] | |||
Shelf Notes | $ 75,000 | ||
Shelf Note, Expiration Date | Sep. 21, 2026 | ||
Accordion Provision | $ 50,000 | ||
Permitted acquisitions threshold | 100,000 | $ 45,000 | |
Repayments of Lines of Credit | $ 5,000 | $ 0 | |
Series B Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date Range, Start | May 15, 2020 | ||
Face Amount | $ 10,000 | ||
Annual Rate | 3.95% | ||
Debt Instrument, Maturity Date Range, End | May 15, 2030 | ||
Senior Notes | $ 6,000 | ||
Series C Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date Range, Start | Dec. 16, 2021 | ||
Face Amount | $ 25,000 | ||
Annual Rate | 3.25% | ||
Debt Instrument, Maturity Date Range, End | Dec. 16, 2031 | ||
Series D Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date Range, Start | Apr. 30, 2024 | ||
Face Amount | $ 10,000 | ||
Annual Rate | 6.47% | ||
Debt Instrument, Maturity Date Range, End | Apr. 30, 2033 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Annual Rate | 6.66% | ||
Maximum Borrowing Capacity | $ 75,000 | 45,000 | |
Line of Credit Facility, Expiration Date | Sep. 30, 2029 | ||
Proceeds from Lines of Credit | $ 0 | ||
Line of Credit Amount Outstanding | 5,000 | ||
Repayments of Lines of Credit | $ 5,000 | ||
Line of Credit | Prime Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 8% | ||
Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 5.81% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity for letters of credit | $ 20,000 | 10,000 | |
Line of Credit Amount Outstanding | $ 2,900 | $ 2,900 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2024 | |
Lease, Cost | |||
Operating lease cost | $ 1,370 | $ 546 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,136 | 461 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 0 | |
Weighted-average remaining lease term - operating leaes | 5 years 3 months 18 days | 5 years 4 months 24 days | |
Weighted-average discount rate - operating leases | 5.10% | 5.10% | |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | |||
Fiscal year 2025 (remaining nine months) | $ 4,061 | ||
Fiscal year 2026 | 4,724 | ||
Fiscal year 2027 | 3,758 | ||
Fiscal year 2028 | 2,949 | ||
Fiscal year 2029 | 2,356 | ||
Thereafter | 3,480 | ||
Total | 21,328 | ||
Less: imputed interest | (2,558) | ||
Net lease obligation | $ 18,770 |
Operating Segments Disaggregati
Operating Segments Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Revenue by Principal Product | ||
Net Sales | $ 127,945 | $ 111,438 |
Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 48,415 | 39,161 |
Business to Business Products | Cat Litter | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Business to Business Products | Industrial and Sports | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Business to Business Products | Agricultural and Horticultural | ||
Revenue by Principal Product | ||
Net Sales | 11,582 | 10,315 |
Business to Business Products | Bleaching Clay and Fluids Purification | ||
Revenue by Principal Product | ||
Net Sales | 30,603 | 22,406 |
Business to Business Products | Animal Health and Nutrition | ||
Revenue by Principal Product | ||
Net Sales | 6,230 | 6,440 |
Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 79,530 | 72,277 |
Retail and Wholesale Products | Cat Litter | ||
Revenue by Principal Product | ||
Net Sales | 67,676 | 60,861 |
Retail and Wholesale Products | Industrial and Sports | ||
Revenue by Principal Product | ||
Net Sales | 11,854 | 11,416 |
Retail and Wholesale Products | Agricultural and Horticultural | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Retail and Wholesale Products | Bleaching Clay and Fluids Purification | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Retail and Wholesale Products | Animal Health and Nutrition | ||
Revenue by Principal Product | ||
Net Sales | $ 0 | $ 0 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2024 | |
Segment Reporting Information | |||
Assets | $ 350,171 | $ 354,605 | |
Net Sales | 127,945 | $ 111,438 | |
Corporate Expenses | (9,297) | (9,298) | |
Income from Operations | 21,190 | 13,156 | |
Total Other Expenses, Net | (988) | (326) | |
Income Before Income Taxes | 20,202 | 12,830 | |
Income Tax Expense | (3,826) | (2,088) | |
Net Income | 16,376 | 10,742 | |
Business to Business Products | |||
Segment Reporting Information | |||
Assets | 100,325 | 92,300 | |
Net Sales | 48,415 | 39,161 | |
Segment Income | 17,110 | 11,123 | |
Retail and Wholesale Products | |||
Segment Reporting Information | |||
Assets | 200,545 | 200,187 | |
Net Sales | 79,530 | 72,277 | |
Segment Income | 13,377 | $ 11,331 | |
Unallocated Assets | |||
Segment Reporting Information | |||
Assets | $ 49,301 | $ 62,118 |
Operating Segments Narrative (D
Operating Segments Narrative (Details) | 3 Months Ended |
Oct. 31, 2024 segment | |
Segment Reporting Information | |
Number of Reportable Segments | 2 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary of Restricted Stock Transactions (Details) - Restricted Stock shares in Thousands | 3 Months Ended |
Oct. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Non-vested restricted stock outstanding, beginning balance | shares | 398 |
Granted, number of shares | shares | 41 |
Vested, number of shares | shares | (78) |
Forfeitures, number of shares | shares | (11) |
Non-vested restricted stock outstanding, ending balance | shares | 350 |
Non-vested restricted stock outstanding, weighted average grant date fair value, beginning balance | $ / shares | $ 49.63 |
Granted, weighted average grant date fair value | $ / shares | 68.41 |
Vested, weighted average grant date fair value | $ / shares | 40.50 |
Forfeitures, weighted average grant date fair value | $ / shares | 53.66 |
Non-vested restricted stock outstanding, weighted average grant date fair value, ending balance | $ / shares | $ 53.75 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted, number of shares | 41,000 | |
2006 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number Authorized (shares) | 1,719,500 | |
Number Available (shares) | 560,724 | |
2006 Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Expense | $ 0.9 | $ 0.8 |
2006 Plan | Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award Vesting Period (years) | 1 year | |
2006 Plan | Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award Vesting Period (years) | 5 years | |
2006 Plan | Common | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted, number of shares | 40,800 | 57,000 |
2006 Plan | Class B | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted, number of shares | 0 | 125,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Balance, beginning | $ 769 | |
Other comprehensive income before reclassifications, net of tax | (21) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (21) | |
Net current-period other comprehensive (loss) income, net of tax | 42 | $ 185 |
Accumulated Other Comprehensive Income (Loss), Balance, ending | 727 | |
Postretirement Health Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Balance, beginning | 1,076 | |
Other comprehensive income before reclassifications, net of tax | 0 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (21) | |
Net current-period other comprehensive (loss) income, net of tax | 21 | |
Accumulated Other Comprehensive Income (Loss), Balance, ending | 1,055 | |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Balance, beginning | (307) | |
Other comprehensive income before reclassifications, net of tax | (21) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | |
Net current-period other comprehensive (loss) income, net of tax | 21 | |
Accumulated Other Comprehensive Income (Loss), Balance, ending | $ (328) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2024 | Oct. 31, 2023 | Jul. 31, 2024 | |
Related Party Transaction | |||
Accounts Payable To Related Parties | $ 13,824 | $ 15,009 | |
Net Sales | 127,945 | $ 111,438 | |
Director | |||
Related Party Transaction | |||
Payments to related party | 300 | 100 | |
Accounts Payable To Related Parties | 100 | 100 | |
Net Sales | 100 | $ 100 | |
Accounts Receivable, after Allowance for Credit Loss | $ 0 | $ 0 |
Earnings Per Share (Details)_2
Earnings Per Share (Details) - Restricted Stock - shares | 3 Months Ended | |
Oct. 31, 2024 | Oct. 31, 2023 | |
Common | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 131,525 | 210,675 |
Class B | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 62,663 | 54,370 |