For further information, contact: | Gary L. Castagna | |
Senior Vice President & CFO | ||
847.394.8730 |
AMCOL INTERNATIONAL (NYSE:ACO) REPORTS FOURTH-QUARTER
AND 2007 YEAR-END RESULTS
ARLINGTON HEIGHTS, IL, JANUARY 18, 2008—AMCOL International Corporation (NYSE:ACO) today reported 2007 fourth-quarter net income of $10.8 million, or $0.35 per diluted share, compared with $12.0 million, or $0.39 per diluted share, in the same prior-year period. A higher effective tax rate in the 2007 quarter caused a $0.08 per diluted share decrease in net income from the prior-year period.
Net sales from continuing operations rose 24.8 percent to $194.6 million for the quarter ended December 31, 2007, compared with $155.9 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $12.6 million and $4.8 million, respectively, of the fourth-quarter sales growth.
Operating profit improved by 9.8 percent over the 2006 quarterly period, to $15.5 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $1.4 million and $0.6 million, respectively.
“Overall, this quarter reflected very strong sales growth, particularly in Environmental and Oilfield Services,” said Larry Washow, AMCOL president and CEO. “We also saw improved operating profit, although not at the same level as our sales growth. The quarter also showed good operating cash flow and working capital management.”
The Company’s Minerals segment margins remained a challenge in the fourth quarter, Washow says, but the Environmental and Oilfield Services segments performed very well.
“Costs were higher in the Minerals business, which impacted gross margin,” he said. “We also had higher overhead, primarily related to acquisitions and new operations, with lower operating profit quarter over quarter as a result. We expect improvement in several areas in coming months.
“On the bright side, Environmental had a very good quarter. The fourth quarter is usually softer for that business, but this one was very strong around the world. Oilfield Services was very strong, as well, with significant sales and operating profit growth.”
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AMCOL Q4 2007 EARNINGS
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Washow notes that AMCOL corporate overhead also increased during the fourth quarter, due to a number of factors such as consulting and employee benefit related costs.
“Some of these expenditures don’t directly relate to our operations today, but they’ll be beneficial to the company overall,” he said. “We consistently evaluate and implement improvements that we believe will help us expand our market share worldwide, improve efficiency and increase shareholder returns.”
Net income for the twelve-month period ended December 31, 2007, was $56.7 million, or $1.83 per diluted share compared with $50.2 million, or $1.62 per diluted share in the prior-year period. Income from continuing operations was $57.0 million, or $1.84 per diluted share, compared with $49.7 million, or $1.60 per diluted share in the prior-year period. Earnings in both reporting periods benefited from non-recurring events. A gain on the sale of vacant land in the U.S. added $0.06 per diluted share to the 2007 period. Income from continuing operations in the 2006 period included a $0.09 per diluted share net benefit resulting from income tax refunds. Discontinued operations accounted for a loss of $0.01 per diluted share in the 2007 period compared with a gain of $0.02 per diluted share in the 2006 period.
Net sales from continuing operations for the twelve-month period ended December 31, 2007 rose 21.7 percent to $744.3 million, compared with $611.6 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $38.5 million and $18.5 million, respectively, of the sales growth. Operating profit improved by 31.3 percent over the 2006 period to $75.3 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $6.3 million and $2.3 million, respectively.
This release should be read in conjunction with the attached unaudited condensed consolidated financial statements. Further discussion of items and events impacting earnings are included in the Financial Overview.
FINANCIAL OVERVIEW
Fourth Quarter Statement of Operations Highlights
Net sales: The following table details the consolidated sales growth components over the 2006 fourth quarter:
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AMCOL Q4 2007 EARNINGS
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Base Business | Acquisitions | Foreign Exchange | Total | ||||||||||
Minerals | 4.0 | % | 4.6 | % | 1.0 | % | 9.6 | % | |||||
Environmental | 3.9 | % | 1.7 | % | 1.9 | % | 7.5 | % | |||||
Oilfield Services | 4.4 | % | 1.8 | % | 0.1 | % | 6.3 | % | |||||
Transportation | 1.4 | % | - | - | 1.4 | % | |||||||
Total | 13.7 | % | 8.1 | % | 3.0 | % | 24.8 | % | |||||
% of Growth | 54.9 | % | 32.6 | % | 12.5 | % | 100.0 | % |
Minerals - Improved metalcasting shipments in the Asia-Pacific region were the largest contributor to base business growth. Additional contributors to base business growth were the pet products and specialty materials product lines. Freight revenues, which were primarily associated with pet products, also increased sales in the period. Stronger European and Asian currencies led to the growth from foreign exchange.
Environmental - Growth in Europe, in particular from the Poland-based operations, and contracting services (based in the U.S.) were the primary contributors to base business growth. Stronger European currencies accounted for foreign exchange growth.
Oilfield Services - Base business growth was led by increased filtration and pipeline service levels in the Gulf of Mexico. West Africa operations also generated improved revenues over the prior-year quarter.
Gross profit: Sales growth, principally generated by the Environmental and Oilfield Services segments, boosted gross profit by 17.0 percent over the 2006 quarter. Gross margin for the quarter declined to 25.1 percent compared with 26.8 percent in the prior-year quarter.
The Minerals segment suffered a 260 basis point decline in gross margin compared with the 2006 quarter. Higher mining and operating costs at the domestic manufacturing plants primarily caused the decline. Additionally, gross margin was impacted by unfavorable product mix in Europe and higher freight revenues, which do not generate any profit.
A change in product mix at the European business unit and higher relative contribution from contracting services caused the 260 basis point decline in the Environmental segment gross margin compared with the prior-year period. The European businesses had a higher level of service revenues for product installation. These services typically have lower gross margins than actual product sales.
Gross margin for the Oilfield Services segment suffered a 70 basis point decline in the current-year quarter. Again, business mix was the cause.
General, selling and administrative expenses (GS&A): The $5.7 million, or 20.6 percent, increase over the 2006 fourth quarter was attributed to all reporting segments except for Transportation. In aggregate, acquired businesses, including amortization of intangible assets, accounted for approximately $2.0 million of the increase in the 2007 fourth quarter.
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AMCOL Q4 2007 EARNINGS
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Within the Minerals segment, acquired business expenses were approximately $0.9 million of the increase over the prior-year quarter. Base business GS&A grew in the Asia Pacific region due to higher sales and marketing expenses.
For the Environmental segment, GS&A from acquired businesses accounted for approximately $0.9 million of the increase over the prior-year quarter. Base business GS&A increased primarily due to higher marketing and sales expenses at the European operations.
The Oilfield Services segment incurred approximately $0.2 million of GS&A from acquired businesses. Base business expenses increased due to higher personnel costs.
Corporate segment GS&A increased due to a group of expenses including employee benefits and professional and consulting service expenses.
Operating profit: The 9.8 percent improvement in operating profit over the 2006 fourth quarter was primarily related to sales and gross profit growth. Operating margin for the quarter was 8.0 percent compared with 9.0 percent in the prior-year period. The 100 basis point decline was principally due to the lower gross margin reported in the current period.
Interest expense: Net interest expense increased by approximately $1.3 million over the prior-year quarter due to higher average debt levels and increased interest rates.
Income taxes: The effective tax rate was 34.3 percent for the fourth quarter of 2007 compared with 14.8 percent for the same period in 2006. The current-year quarter was negatively impacted primarily by changes in geographical earnings distribution estimates. Our effective tax rate for international businesses is much lower than the U.S. Higher than forecasted earnings growth from U.S.-based operations - primarily in the Oilfield Services segment - required us to increase estimated income tax liabilities for 2007. Since this is the last quarter of the year, the change in estimate increased the effective rate by a large amount. Favorable tax reductions in the 2006 period due to changes in deduction and credit estimates caused the low rate in 2006.
Income from affiliates and joint ventures: These investments contributed approximately $0.07 and $0.03 per diluted share in the 2007 and 2006 fourth quarter periods, respectively. Our investments in Ashapura Minechem Limited and Ashapura Volclay Limited, both based in India, have continued to increase their respective contributions to earnings. Ashapura Minechem has been growing principally due to its bauxite business, a large portion of which is exported to alumina refineries in China. Alumina is a key raw material used in the production of aluminum.
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AMCOL Q4 2007 EARNINGS
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Share count: The weighted average number of common and common equivalent shares was 31.0 million for both reporting periods.
Key Financial Position and Cash Flow Highlights
Long-term debt increased to $164.2 million at December 31, 2007 compared with $112.4 million at December 31, 2006. The increase was primarily due to funding acquisitions, greater working capital levels and capital expenditures. Debt represented approximately 31.8 percent of total capitalization at December 31, 2007, compared with 27.6 percent at December 31, 2006. Cash and cash equivalents were $25.3 million at December 31, 2007 compared with $17.8 million at December 31, 2006.
Working capital increased to $204.0 million at December 31, 2007 from $173.3 million at December 31, 2006. The current ratio was 3.0-to-1 and 3.2-to-1 at December 31, 2007, and December 31, 2006, respectively.
Cash flow provided by operating activities was $66.9 million year-to-date as of December 31, 2007 compared with $46.7 million in the twelve-month period in 2006. In addition to the growth in net income, the 2007 period was aided by higher non-cash charges and lower relative growth in working capital.
Investing activities in the 2007 twelve-month period were primarily driven by three acquisitions which, in aggregate, accounted for $40.1 million. Capital expenditures amounted to $53.1 million year-to-date as of December 31, 2007, compared with $42.1 million for the same period in 2006. The 2007 amount includes expenditures to construct new corporate offices that we intend to refinance through a sale-leaseback transaction in the first quarter of 2008.
Approximately $6.4 million was expended on share repurchases year-to-date, as of December 31, 2007. A total of 260,000 shares were repurchased, which equates to $24.64 per share. Dividends year-to-date through December 31, 2007, increased by 22.7 percent over the prior-year period to $18.0 million.
This release contains certain forward-looking statements regarding AMCOL’s expected performance for future periods and actual results for such periods might materially differ. Such forward-looking statements are subject to uncertainties, which include, but are not limited to, actual growth in AMCOL’s various markets, utilization of AMCOL’s plants, currency exchange rates, currency devaluation, delays in development, production and marketing of new products, integration of acquired businesses, and other factors detailed from time to time in AMCOL’s annual report and other reports filed with the Securities and Exchange Commission. AMCOL undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL’s expectations.
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AMCOL Q4 2007 EARNINGS
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AMCOL International, headquartered in Arlington Heights, IL, produces and markets a wide range of specialty mineral products used for industrial, environmental and consumer-related applications. AMCOL is the parent of American Colloid Co., CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, Inc. AMCOL’s common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL’s web address is www.amcol.com. AMCOL’s fourth quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website.
AMCOL Q4 2007 EARNINGS
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AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Twelve Months Ended | Three Months Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2007 | 2006 | 2007 | 2006 | ||||||||||
Continuing Operations: | |||||||||||||
Net sales | $ | 744,334 | $ | 611,556 | $ | 194,554 | $ | 155,919 | |||||
Cost of sales | 547,820 | 452,090 | 145,630 | 114,095 | |||||||||
Gross profit | 196,514 | 159,466 | 48,924 | 41,824 | |||||||||
General, selling and administrative expenses | 121,187 | 102,078 | 33,431 | 27,719 | |||||||||
Operating profit | 75,327 | 57,388 | 15,493 | 14,105 | |||||||||
Other income (expense): | |||||||||||||
Interest expense, net | (8,915 | ) | (2,951 | ) | (2,409 | ) | (1,116 | ) | |||||
Other, net | (1,139 | ) | 231 | (139 | ) | (28 | ) | ||||||
(10,054 | ) | (2,720 | ) | (2,548 | ) | (1,144 | ) | ||||||
Income before income taxes and income from affiliates and joint ventures | 65,273 | 54,668 | 12,945 | 12,961 | |||||||||
Income tax expense (benefit) | 16,646 | 10,425 | 4,441 | 1,920 | |||||||||
Income before income from affiliates and joint ventures | 48,627 | 44,243 | 8,504 | 11,041 | |||||||||
Income from affiliates and joint ventures | 8,394 | 5,420 | 2,276 | 958 | |||||||||
Income from continuing operations | 57,021 | 49,663 | 10,780 | 11,999 | |||||||||
(Loss) Income from discontinued operations | (286 | ) | 585 | - | - | ||||||||
Net income | $ | 56,735 | $ | 50,248 | $ | 10,780 | $ | 11,999 | |||||
Weighted average common shares outstanding | 30,165 | 30,054 | 30,220 | 30,071 | |||||||||
Weighted average common and common equivalent shares outstanding | 30,959 | 31,026 | 31,030 | 30,973 | |||||||||
Basic earnings per share: | |||||||||||||
Continuing operations | $ | 1.89 | $ | 1.65 | $ | 0.36 | $ | 0.40 | |||||
Discontinued operations | (0.01 | ) | 0.02 | - | - | ||||||||
Basic earnings per share | $ | 1.88 | $ | 1.67 | $ | 0.36 | $ | 0.40 | |||||
Diluted earnings per share: | |||||||||||||
Continuing operations | $ | 1.84 | $ | 1.60 | $ | 0.35 | $ | 0.39 | |||||
Discontinued operations | (0.01 | ) | 0.02 | - | - | ||||||||
Diluted earnings per share | $ | 1.83 | $ | 1.62 | $ | 0.35 | $ | 0.39 | |||||
Dividends declared per share | $ | 0.60 | $ | 0.49 | $ | 0.16 | $ | 0.14 |
AMCOL Q4 2007 EARNINGS
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AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, | December 31, | ||||||
ASSETS | 2007 | 2006 | |||||
(unaudited) | * | ||||||
Current assets: | |||||||
Cash and equivalents | $ | 25,282 | $ | 17,805 | |||
Accounts receivable, net | 166,835 | 133,432 | |||||
Inventories | 91,367 | 84,612 | |||||
Prepaid expenses | 13,529 | 10,142 | |||||
Deferred income taxes | 5,829 | 4,648 | |||||
Income tax receivable | 2,768 | - | |||||
Other | 475 | 1,045 | |||||
Total current assets | 306,085 | 251,684 | |||||
Investments in and advances to affiliates and joint ventures | 49,309 | 31,049 | |||||
Property, plant, equipment, mineral rights and reserves: | |||||||
Land and mineral rights | 21,394 | 17,428 | |||||
Depreciable assets | 352,100 | 305,013 | |||||
373,494 | 322,441 | ||||||
Less: accumulated depreciation | 196,904 | 181,669 | |||||
176,590 | 140,772 | ||||||
Other assets: | |||||||
Goodwill | 59,840 | 40,341 | |||||
Intangible assets, net | 41,257 | 25,611 | |||||
Deferred income taxes | 3,680 | 6,643 | |||||
Other assets | 15,007 | 15,124 | |||||
119,784 | 87,719 | ||||||
$ | 651,768 | $ | 511,224 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 44,425 | $ | 26,107 | |||
Accrued income taxes | - | 4,844 | |||||
Accrued liabilities | 57,682 | 47,432 | |||||
Total current liabilities | 102,107 | 78,383 | |||||
Long-term debt | 164,232 | 112,448 | |||||
Minority interests in subsidiaries | 327 | 276 | |||||
Pension liabilities | 9,698 | 13,209 | |||||
Other liabilities | 22,399 | 12,090 | |||||
32,424 | 25,575 | ||||||
Stockholders’ equity: | |||||||
Common stock | 320 | 320 | |||||
Additional paid in capital | 81,599 | 76,686 | |||||
Retained earnings | 258,164 | 219,690 | |||||
Accumulated other comprehensive income | 33,930 | 16,658 | |||||
374,013 | 313,354 | ||||||
Less: | |||||||
Treasury stock | 21,008 | 18,536 | |||||
353,005 | 294,818 | ||||||
$ | 651,768 | $ | 511,224 |
* Condensed from audited financial statements.
AMCOL Q4 2007 EARNINGS
Page 9 of 11
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Twelve Months Ended | |||||||
December 31, | |||||||
2007 | 2006 | ||||||
Cash flow from operating activities: | |||||||
Net income | $ | 56,735 | $ | 50,248 | |||
Adjustments to reconcile net income to net cash | |||||||
provided by (used in) operating activities: | |||||||
Depreciation, depletion, and amortization | 29,219 | 20,483 | |||||
Changes in assets and liabilities, net of effects of acquisitions: | |||||||
Decrease (Increase) in current assets | (40,675 | ) | (32,887 | ) | |||
Decrease (Increase) in noncurrent assets | (1,913 | ) | (2,758 | ) | |||
Increase (decrease) in current liabilities | 21,021 | 12,548 | |||||
Increase (decrease) in noncurrent liabilities | 8,192 | 3,924 | |||||
Other | (6,398 | ) | (4,870 | ) | |||
Net cash provided by (used in) operating activities | 66,181 | 46,688 | |||||
Cash flow from investing activities: | |||||||
Capital expenditures | (46,004 | ) | (42,099 | ) | |||
Capital expenditures - corporate building | (7,050 | ) | - | ||||
Acquisitions, net of cash | (45,191 | ) | (63,248 | ) | |||
Investments in and advances to affiliates and joint ventures | (6,636 | ) | (5,645 | ) | |||
Proceeds from sale of land and depreciable assets | 6,896 | 3,155 | |||||
Investments in restricted cash | 2,504 | (3,706 | ) | ||||
Other | (386 | ) | 654 | ||||
Net cash provided by (used in) investing activities | (95,867 | ) | (110,889 | ) | |||
Cash flow from financing activities: | |||||||
Net change in outstanding debt | 50,348 | 75,476 | |||||
Proceeds from sales of treasury stock | 3,336 | 2,577 | |||||
Purchases of treasury stock | (6,622 | ) | (5,554 | ) | |||
Dividends | (18,008 | ) | (14,678 | ) | |||
Excess tax benefits from stock-based compensation | 2,030 | 1,955 | |||||
Other | 255 | - | |||||
Net cash provided by (used in) financing activities | 31,339 | 59,776 | |||||
Effect of foreign currency rate changes on cash | 5,824 | 6,233 | |||||
Net increase (decrease) in cash and cash equivalents | 7,477 | 1,808 | |||||
Cash and cash equivalents at beginning of period | 17,805 | 15,997 | |||||
Cash and cash equivalents at end of period | $ | 25,282 | $ | 17,805 |
AMCOL Q4 2007 EARNINGS
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AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
Twelve Months Ended December 31, | |||||||||||||||||||
Minerals | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 356,670 | 100.0 | % | $ | 316,751 | 100.0 | % | $ | 39,919 | 12.6 | % | |||||||
Cost of sales | 290,371 | 81.4 | % | 255,064 | 80.5 | % | 35,307 | 13.8 | % | ||||||||||
Gross profit | 66,299 | 18.6 | % | 61,687 | 19.5 | % | 4,612 | 7.5 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 32,194 | 9.0 | % | 27,476 | 8.7 | % | 4,718 | 17.2 | % | ||||||||||
Operating profit | 34,105 | 9.6 | % | 34,211 | 10.8 | % | (106 | ) | -0.3 | % |
Twelve Months Ended December 31, | |||||||||||||||||||
Environmental | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 252,776 | 100.0 | % | $ | 203,128 | 100.0 | % | $ | 49,648 | 24.4 | % | |||||||
Cost of sales | 166,717 | 66.0 | % | 133,414 | 65.7 | % | 33,303 | 25.0 | % | ||||||||||
Gross profit | 86,059 | 34.0 | % | 69,714 | 34.3 | % | 16,345 | 23.4 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 47,665 | 18.9 | % | 42,963 | 21.2 | % | 4,702 | 10.9 | % | ||||||||||
Operating profit | 38,394 | 15.1 | % | 26,751 | 13.1 | % | 11,643 | 43.5 | % |
Twelve Months Ended December 31, | |||||||||||||||||||
Oilfield Services | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 100,572 | 100.0 | % | $ | 61,928 | 100.0 | % | $ | 38,644 | 62.4 | % | |||||||
Cost of sales | 62,178 | 61.8 | % | 39,933 | 64.5 | % | 22,245 | 55.7 | % | ||||||||||
Gross profit | 38,394 | 38.2 | % | 21,995 | 35.5 | % | 16,399 | 74.6 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 19,177 | 19.1 | % | 10,934 | 17.7 | % | 8,243 | 75.4 | % | ||||||||||
Operating profit | 19,217 | 19.1 | % | 11,061 | 17.8 | % | 8,156 | 73.7 | % |
Twelve Months Ended December 31, | |||||||||||||||||||
Transportation | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 52,409 | 100.0 | % | $ | 50,228 | 100.0 | % | $ | 2,181 | 4.3 | % | |||||||
Cost of sales | 46,647 | 89.0 | % | 44,158 | 87.9 | % | 2,489 | 5.6 | % | ||||||||||
Gross profit | 5,762 | 11.0 | % | 6,070 | 12.1 | % | (308 | ) | -5.1 | % | |||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 2,994 | 5.7 | % | 3,198 | 6.4 | % | (204 | ) | -6.4 | % | |||||||||
Operating profit | 2,768 | 5.3 | % | 2,872 | 5.7 | % | (104 | ) | -3.6 | % |
Twelve Months Ended December 31, | |||||||||||||
Corporate | 2007 | 2006 | 2007 vs 2006 | ||||||||||
(Dollars in Thousands) | |||||||||||||
Intersegment shipping sales | $ | (18,093 | ) | $ | (20,479 | ) | |||||||
Intersegment shipping costs | (18,093 | ) | (20,479 | ) | |||||||||
Gross profit | - | - | |||||||||||
Corporate general, selling | |||||||||||||
and administrative expenses | 19,157 | 17,507 | 1,650 | 9.4 | % | ||||||||
Operating loss | 19,157 | 17,507 | 1,650 | 9.4 | % |
AMCOL Q4 2007 EARNINGS
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AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended December 31, | |||||||||||||||||||
Minerals | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 94,238 | 100.0 | % | $ | 79,288 | 100.0 | % | $ | 14,950 | 18.9 | % | |||||||
Cost of sales | 78,366 | 83.2 | % | 63,912 | 80.6 | % | 14,454 | 22.6 | % | ||||||||||
Gross profit | 15,872 | 16.8 | % | 15,376 | 19.4 | % | 496 | 3.2 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 8,473 | 9.0 | % | 7,337 | 9.3 | % | 1,136 | 15.5 | % | ||||||||||
Operating profit | 7,399 | 7.8 | % | 8,039 | 10.1 | % | (640 | ) | -8.0 | % |
Three Months Ended December 31, | |||||||||||||||||||
Environmental | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 62,849 | 100.0 | % | $ | 51,132 | 100.0 | % | $ | 11,717 | 22.9 | % | |||||||
Cost of sales | 42,194 | 67.1 | % | 33,480 | 65.5 | % | 8,714 | 26.0 | % | ||||||||||
Gross profit | 20,655 | 32.9 | % | 17,652 | 34.5 | % | 3,003 | 17.0 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 13,277 | 21.1 | % | 12,176 | 23.8 | % | 1,101 | 9.0 | % | ||||||||||
Operating profit | 7,378 | 11.8 | % | 5,476 | 10.7 | % | 1,902 | 34.7 | % |
Three Months Ended December 31, | |||||||||||||||||||
Oilfield Services | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 28,435 | 100.0 | % | $ | 18,658 | 100.0 | % | $ | 9,777 | 52.4 | % | |||||||
Cost of sales | 17,545 | 61.7 | % | 11,375 | 61.0 | % | 6,170 | 54.2 | % | ||||||||||
Gross profit | 10,890 | 38.3 | % | 7,283 | 39.0 | % | 3,607 | 49.5 | % | ||||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 5,516 | 19.4 | % | 3,459 | 18.5 | % | 2,057 | 59.5 | % | ||||||||||
Operating profit | 5,374 | 18.9 | % | 3,824 | 20.5 | % | 1,550 | 40.5 | % |
Three Months Ended December 31, | |||||||||||||||||||
Transportation | 2007 | 2006 | 2007 vs 2006 | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Net sales | $ | 13,755 | 100.0 | % | $ | 11,609 | 100.0 | % | $ | 2,146 | 18.5 | % | |||||||
Cost of sales | 12,248 | 89.0 | % | 10,096 | 87.0 | % | 2,152 | 21.3 | % | ||||||||||
Gross profit | 1,507 | 11.0 | % | 1,513 | 13.0 | % | (6 | ) | -0.4 | % | |||||||||
General, selling and | |||||||||||||||||||
administrative expenses | 741 | 5.4 | % | 831 | 7.2 | % | (90 | ) | -10.8 | % | |||||||||
Operating profit | 766 | 5.6 | % | 682 | 5.9 | % | 84 | 12.3 | % |
Three Months Ended December 31, | |||||||||||||
Corporate | 2007 | 2006 | 2007 vs 2006 | ||||||||||
(Dollars in Thousands) | |||||||||||||
Intersegment shipping sales | $ | (4,723 | ) | $ | (4,768 | ) | |||||||
Intersegment shipping costs | (4,723 | ) | (4,768 | ) | |||||||||
Gross profit | - | - | |||||||||||
Corporate general, selling | |||||||||||||
and administrative expenses | 5,424 | 3,916 | 1,508 | 38.5 | % | ||||||||
Operating loss | 5,424 | 3,916 | 1,508 | 38.5 | % |