 | Exhibit 99.1 News Release Release: Immediate Contact: Ronda J. Williams 312-706-3232 Oil-Dri Announces Third Quarter and Nine-Month Results CHICAGO – (June 5, 2009) – Oil-Dri Corporation of America (NYSE: ODC) today reported net sales of $58,053,000 for its third fiscal quarter, a 3% decrease compared with net sales of $59,543,000 in the same quarter one year ago. The Company reported net income for the quarter of $2,416,000, or $0.33 per diluted share, an increase of 18% compared with net income of $2,013,000, or $0.28 per diluted share one year ago. The Company reported net sales of $180,311,000 for its nine-month period, a 4% increase compared with net sales of $172,854,000 in the same period one year ago. Net income for the nine-month period was $7,034,000, or $0.97 per diluted share, a 7% increase compared with net income of $6,586,000, or $0.91 per diluted share, in the same period last fiscal year. Third Quarter Review President and Chief Executive Officer Daniel S. Jaffee said, “Our business has remained relatively steady through the third quarter and we are pleased with our quarterly results in spite of these challenging economic times. “During the third quarter, the Retail and Wholesale Products Group was challenged by unit volume declines and unfavorable exchange rates from international operations. The Business-to-Business Products Group incurred increased expenses for new product introductions and experienced unit volume declines as well. We believe the net sales and unit volume declines seen in both groups are indicative of the economic downturn.” |
Business Review
Net sales for the Company’s Business-to-Business Products Group were $19,992,000 and group income was $4,085,000 in the third quarter. Net sales for the nine-month period were $58,841,000 and group income was $11,991,000. In the quarter, unit volumes declined for all product lines. Net sales were down for all products except co-packaged cat litters, Agsorb agricultural carriers, Ultra-Clear clarification aids and PelUnite Plus pellet binders. Additional expenses were incurred for launch activities of Calibrin enterosorbents.
Net sales for the Company’s Retail and Wholesale Products Group were $38,061,000 and group income was $4,693,000 in the third quarter. Net sales for the nine-month period were $121,470,000 and group income was $11,908,000. In the quarter, unit volume was down across all product lines. Net sales for Cat’s Pride branded cat litter were up slightly and net sales for Oil-Dri floor absorbent products were flat. Unfavorable exchange rates and weak global economic conditions for the Group’s international business in Canada and the United Kingdom negatively impacted profitability in the quarter.
Financial Review
On March 17, 2009, Oil-Dri’s Board of Directors declared quarterly cash dividends of $0.14 per share of outstanding Common Stock and $0.105 per share of outstanding Class B Stock. The dividends will be payable today June 5, 2009, to stockholders of record at the close of business on May 22, 2009. At the April 30, 2009 closing price of $16.14 and assuming cash dividends continue at the same rate, the annual yield on the Company’s Common Stock is 3.5%.
Cash, cash equivalents and short-term investments totaled $15,676,000 at April 30, 2009. Capital expenditures for the nine-month period totaled $12,682,000, which is $7,255,000 more than the depreciation and amortization of $5,427,800. The increase in capital expenditures was due in large part to the construction of a new, state-of-the-art plant designed to produce engineered granules. These granules have very unique characteristics designed to meet customer specific needs. The plant is scheduled to come on line during the fourth quarter of this fiscal year.
Looking Forward
Jaffee said, “The strength of our balance sheet, the overall financial health of the Company and the stability of our basic markets are helping us to work through the present economic difficulties. The new product initiatives are progressing as planned and we are hopeful they will show improved results in the coming fiscal year.”
###
The Company will offer a live web cast of the third quarter earnings teleconference on Monday, June 8, 2009, from 10:00 a.m. to 10:30 a.m. Chicago Time. To listen to the call via the web, please visit www.streetevents.com or www.oildri.com. An archived recording of the call and written transcripts of all teleconferences are posted on the Oil-Dri website.
Oil-Dri Corporation of America is a leading supplier of specialty sorbent products for agricultural, horticultural, fluids purification, specialty markets, industrial and automotive, and is the world’s largest manufacturer of cat litter.
Agsorb, Cat’s Pride, Jonny Cat, Pure-Flo and Ultra-Clear are all registered trademarks of the Oil-Dri Corporation of America. Calibrin and Pro’s Choice are trademarks of Oil-Dri Corporation of America.
Certain statements in this press release may contain forward-looking statements that are based on our current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs, and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in other press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls, and conference calls. Words such as “expect,” “outlook,” “forecast,” “would”, “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” variations of such words and similar expressions are intended to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially including, but not limited to, the dependence of our future growth and financial performance on successful new product introductions, intense competition in our markets, volatility of our quarterly results, risks associated with acquisitions, our dependence on a limited number of customers for a large portion of our net sales and other risks, uncertainties and assumptions that are described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected or planned. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.
| Consolidated Statements of Income | |||||||||||||||||
| (in thousands, except for per share amounts) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Third Quarter Ended April 30, | |||||||||||||||||
| 2009 | % of Sales | 2008 | % of Sales | ||||||||||||||
| Net Sales | $ | 58,053 | 100.0 | % | $ | 59,543 | 100.0 | % | |||||||||
| Cost of Sales | (44,833 | ) | 77.2 | % | (48,486 | ) | 81.4 | % | |||||||||
| Gross Profit | 13,220 | 22.8 | % | 11,057 | 18.6 | % | |||||||||||
| Operating Expenses | (9,631 | ) | 16.6 | % | (8,236 | ) | 13.8 | % | |||||||||
| Operating Income | 3,589 | 6.2 | % | 2,821 | 4.7 | % | |||||||||||
| Interest Expense | (470 | ) | 0.8 | % | (552 | ) | 0.9 | % | |||||||||
| Other Income | 301 | 0.5 | % | 445 | 0.7 | % | |||||||||||
| Income Before Income Taxes | 3,420 | 5.9 | % | 2,714 | 4.6 | % | |||||||||||
| Income Taxes | (1,004 | ) | 1.7 | % | (701 | ) | 1.2 | % | |||||||||
| Net Income | $ | 2,416 | 4.2 | % | $ | 2,013 | 3.4 | % | |||||||||
| Net Income Per Share: | |||||||||||||||||
| Basic Common | $ | 0.36 | $ | 0.30 | |||||||||||||
| Basic Class B Common | $ | 0.29 | $ | 0.25 | |||||||||||||
| Diluted | $ | 0.33 | $ | 0.28 | |||||||||||||
| Average Shares Outstanding: | |||||||||||||||||
| Basic Common | 5,149 | 5,092 | |||||||||||||||
| Basic Class B Common | 1,880 | 1,862 | |||||||||||||||
| Diluted | 7,223 | 7,223 | |||||||||||||||
| Nine Months Ended April 30, | |||||||||||||||||
| 2009 | % of Sales | 2008 | % of Sales | ||||||||||||||
| Net Sales | $ | 180,311 | 100.0 | % | $ | 172,854 | 100.0 | % | |||||||||
| Cost of Sales | (142,802 | ) | 79.2 | % | (138,019 | ) | 79.8 | % | |||||||||
| Gross Profit | 37,509 | 20.8 | % | 34,835 | 20.2 | % | |||||||||||
| Operating Expenses | (26,711 | ) | 14.8 | % | (25,347 | ) | 14.7 | % | |||||||||
| Operating Income | 10,798 | 6.0 | % | 9,488 | 5.5 | % | |||||||||||
| Interest Expense | (1,453 | ) | 0.8 | % | (1,696 | ) | 1.0 | % | |||||||||
| Other Income | 330 | 0.2 | % | 1,230 | 0.7 | % | |||||||||||
| Income Before Income Taxes | 9,675 | 5.4 | % | 9,022 | 5.2 | % | |||||||||||
| Income Taxes | (2,641 | ) | 1.5 | % | (2,436 | ) | 1.4 | % | |||||||||
| Net Income | $ | 7,034 | 3.9 | % | $ | 6,586 | 3.8 | % | |||||||||
| Net Income Per Share: | |||||||||||||||||
| Basic Common | $ | 1.06 | $ | 1.01 | |||||||||||||
| Basic Class B Common | $ | 0.86 | $ | 0.81 | |||||||||||||
| Diluted | $ | 0.97 | $ | 0.91 | |||||||||||||
| Average Shares Outstanding: | |||||||||||||||||
| Basic Common | 5,135 | 5,052 | |||||||||||||||
| Basic Class B Common | 1,872 | 1,852 | |||||||||||||||
| Diluted | 7,237 | 7,206 | |||||||||||||||
| Consolidated Balance Sheets | |||||||||||
| (in thousands, except for per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| As of April 30, | |||||||||||
| 2009 | 2008 | ||||||||||
| Current Assets | |||||||||||
| Cash and Cash Equivalents | $ | 11,680 | $ | 8,165 | |||||||
| Investment in Treasury Securities | 3,996 | 18,935 | |||||||||
| Accounts Receivable, net | 28,711 | 31,109 | |||||||||
| Inventories | 20,136 | 16,941 | |||||||||
| Prepaid Expenses | 6,778 | 5,873 | |||||||||
| Total Current Assets | 71,301 | 81,023 | |||||||||
| Property, Plant and Equipment | 58,542 | 50,334 | |||||||||
| Other Assets | 14,261 | 13,181 | |||||||||
| Total Assets | $ | 144,104 | $ | 144,538 | |||||||
| Current Liabilities | |||||||||||
| Current Maturities of Notes Payable | $ | 3,200 | $ | 5,580 | |||||||
| Accounts Payable | 5,887 | 7,451 | |||||||||
| Dividends Payable | 922 | 846 | |||||||||
| Accrued Expenses | 14,435 | 15,078 | |||||||||
| Total Current Liabilities | 24,444 | 28,955 | |||||||||
| Long-Term Liabilities | |||||||||||
| Notes Payable | 18,300 | 21,500 | |||||||||
| Other Noncurrent Liabilities | 9,958 | 7,598 | |||||||||
| Total Long-Term Liabilities | 28,258 | 29,098 | |||||||||
| Stockholders' Equity | 91,402 | 86,485 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 144,104 | $ | 144,538 | |||||||
| Book Value Per Share Outstanding | $ | 13.04 | $ | 12.53 | |||||||
| Acquisitions of | |||||||||||
| Property, Plant and Equipment | Third Quarter | $ | 4,925 | $ | 524 | ||||||
| Year to Date | $ | 12,682 | $ | 4,352 | |||||||
| Depreciation and Amortization Charges | Third Quarter | $ | 1,743 | $ | 1,861 | ||||||
| Year to Date | $ | 5,427 | $ | 5,596 | |||||||
| Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| For the Nine Months Ended | ||||||||
| April 30, | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2009 | 2008 | ||||||
| Net Income | $ | 7,034 | $ | 6,586 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and Amortization | 5,427 | 5,596 | ||||||
| Decrease (Increase) in Accounts Receivable | 2,623 | (3,285 | ) | |||||
| (Increase) in Inventories | (2,392 | ) | (1,704 | ) | ||||
| (Decrease) Increase in Accounts Payable | (1,424 | ) | 1,431 | |||||
| (Decrease) in Accrued Expenses | (1,676 | ) | (1,233 | ) | ||||
| Other | (1,285 | ) | (1,268 | ) | ||||
| Total Adjustments | 1,273 | (463 | ) | |||||
| Net Cash Provided by Operating Activities | 8,307 | 6,123 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Capital Expenditures | (12,682 | ) | (4,352 | ) | ||||
| Net Dispositions (Purchases) of Investment Securities | 17,035 | (440 | ) | |||||
| Other | 22 | 43 | ||||||
| Net Cash Provided by (Used in) Investing Activities | 4,375 | (4,749 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Principal payments on Long-Term Debt | (5,580 | ) | (4,080 | ) | ||||
| Dividends Paid | (2,760 | ) | (2,528 | ) | ||||
| Purchase of Treasury Stock | (656 | ) | (20 | ) | ||||
| Other | 256 | 1,397 | ||||||
| Net Cash Used in Financing Activities | (8,740 | ) | (5,231 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 890 | (111 | ) | |||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 4,832 | (3,968 | ) | |||||
| Cash and Cash Equivalents, Beginning of Year | 6,848 | 12,133 | ||||||
| Cash and Cash Equivalents, April 30 | $ | 11,680 | $ | 8,165 | ||||