![](https://capedge.com/proxy/8-K/0001144204-09-004245/logo.jpg)
Don Pearson | |
Vice President & CFO | |
847.851.1626 |
AMCOL INTERNATIONAL CORPORATION (NYSE:ACO)
REPORTS FOURTH QUARTER AND 2008 YEAR END RESULTS
HOFFMAN ESTATES, IL., JANUARY 29, 2009—AMCOL International Corporation (NYSE:ACO) reports 2008 fourth quarter net income of $0.3 million or $0.01 per diluted share, compared with $10.8 million or $0.35 per diluted share in the same prior year period. Net income in the current quarter includes $7.3 million of losses from affiliates and joint ventures, largely reflective of a $5.9 million, or $0.19 per diluted share, non-cash loss on the fair value of derivative instruments held by Ashapura Minechem Limited, a publicly traded Indian company (Ashapura). AMCOL holds a 21% interest in Ashapura and accounts for this investment using the equity method of accounting. Net income in the 2008 fourth quarter also includes $2.7 million, or $0.09 per diluted share, of losses on derivative instruments relating to our pending transaction to acquire a majority interest in a chrome sand deposit in South Africa, the purchase price of which is payable in Australian dollars (AUD). Excluding these two items, 2008 fourth quarter net income was $8.9 million, or $0.29 per diluted share.
Net sales rose 5.5% to $205.2 million for the quarter ended December 31, 2008, compared with $194.6 million for the 2007 period. Acquisitions comprised $4.7 million of the fourth quarter sales growth and foreign currency fluctuations had an $11.1 million unfavorable impact on fourth quarter sales. Operating profit increased by 1.5% over the 2007 period to $15.7 million. Acquisitions and foreign currency fluctuations had unfavorable impacts of $0.7 million and $1.0 million, respectively, on current period operating profit.
MORE
AMCOL Q4 2008 EARNINGS
Page 2 of 13
In a press release issued this morning, we reported that our Audit Committee, upon the recommendation of management, determined that our unaudited consolidated financial statements for the quarters ended September 30 and June 30, 2008 should no longer be relied upon because we did not properly account for the fair value of derivative instruments held by Ashapura. The earlier press release discloses the effects of properly recording the fair value of Ashapura’s derivative instruments on our results for the second and third quarters of 2008. We intend to restate the financial results reported in our quarterly report on Form 10-Q for the quarters ended September 30 and June 30, 2008 as soon as possible. The year end results discussed in this press release reflect the restated results for the second and third quarter of 2008.
For the twelve-month period ended December 31, 2008, net income was $25.3 million, or $0.82 per diluted share, compared with $56.7 million, or $1.83 per diluted share in the prior year. Earnings for the twelve month period ending December 31, 2008 include $21.7 million of losses from affiliates and joint ventures, largely reflective of $25.9 million, or $.84 per diluted share, of non-cash losses on the fair value of Ashapura’s derivative instruments. Earnings for the year also include $1.6 million of losses on AUD derivative instruments discussed earlier. Excluding these two items, net income for the current year was $52.8 million, or $1.70 per diluted share.
Net sales from continuing operations for the twelve-month period ended December 31, 2008, rose 18.7% to $883.6 million, compared with $744.3 million for 2007. Acquisitions and favorable foreign currency fluctuations represented approximately $28.4 million and $1.7 million, respectively, of the sales growth. Operating profit improved by 5.2% over 2007 to $79.2 million. Current year operating profit includes earnings from acquisitions and favorable foreign currency fluctuations of $1.4 million and $1.0 million, respectively.
This release should be read in conjunction with the attached unaudited condensed consolidated financial statements as well as the press release issued earlier today regarding the restatement of our financial results reported in our quarterly report on Form 10-Q for the quarters ended September 30 and June 30, 2008. Further discussion of items and events impacting earnings are included later in this press release.
“Even excluding the negative impact from the Ashapura and AUD derivative instrument losses, it was a challenging quarter as the Environmental segment slowed and lower oil and gas prices negatively impacted our Oilfield Services segment” said Larry Washow, AMCOL President and Chief Executive Officer. “However, we did see continuing margin improvement in the Minerals segment.”
“Commercial construction activity has been slowing down around the world. In addition to the normal seasonal impact, our Environmental segment saw a significant sales drop in the fourth quarter, particularly in Europe,” Washow added.
MORE
AMCOL Q4 2008 EARNINGS
Page 3 of 13
“The improvement in the Minerals segment’s margins continues the positive trend developed over the last few quarters. The combination of lower costs and higher sales pricing resulted in a substantial jump in Minerals segment’s gross margins. However, in 2009, we expect lower volumes from the Metalcasting market and the oil drilling division will have a negative impact on the segment’s margins,” Washow commented.
“The Oilfield Services segment showed a drop in gross margins in the quarter as both the volume and mix of business was unfavorable. This segment depends on individual projects and lower oil and gas prices have reduced overall activity in the segment,” Washow added.
STATEMENT OF OPERATIONS HIGHLIGHTS:
Net sales: The following details the components that contributed to the consolidated sales growth or sales decline for each operating segment over the 2007 fourth quarter, see the accompanying schedule for components of sales growth.
Minerals: The substantial majority of the revenue increase is due to price increases, principally in the U.S., and to a lesser extent in Asia-Pacific. Base business growth was driven by increased volume in the U.S. petroleum industry but was offset by reduced demand for U.S. metalcasting and unfavorable foreign currency translation.
Environmental: The majority of the revenue decline was due to unfavorable foreign currency translation. Weakening demand in Europe was partially offset by growth in the domestic Lining Tech business.
Oilfield Services: Base business growth was driven by the expansion of our Brazil operations and domestic land-based well testing and filtration services. Overall domestic results were flat due to the economic climate in the fourth quarter as well as reduced oil and gas prices. Sales from acquisitions were from Premium Reeled Tubing.
Transportation: Traffic levels increased over the prior year quarter due to higher demand from third party consumer products shippers.
Gross profit: Sales growth provided by the Minerals segment increased gross profit by 6.9% over the 2007 fourth quarter. Gross margins improved slightly to 25.5% compared to 25.1% in the prior year quarter. Increases in Minerals segment gross margins were offset by decreased gross margins in the Environmental and Oilfield segments.
Minerals: Gross profit increased $8.5 million, or 53.5%, over the 2007 quarter while gross margins improved 620 basis points resulting from 2008 pricing initiatives in the U.S. and declining energy costs.
Environmental: Gross profit declined 18.2% due to the decline in sales. The impact on gross margins was a decline of 290 basis points to 30.0%.
MORE
AMCOL Q4 2008 EARNINGS
Page 4 of 13
Oilfield Services: Gross profit declined 13.1% and gross margin declined to 28.3% principally due to lower demands in offshore services and changes in product mix.
Transportation: Gross margin of 10.9% was comparable to the prior year quarter.
General, selling and administrative expenses (GS&A): The $3.2 million or 9.5% increase over the 2007 fourth quarter was attributable to increases in the minerals, corporate and transportation segments; all other segments had comparable or lower GS&A expenses.
Minerals: GS&A increased $2.7 million, a 32.2% increase over the 2007 quarter, principally due to greater research and development costs, increased bad debt reserves and start-up costs for our South African operation.
Environmental: GS&A decreased $0.5 million, a 3.8% decrease over the 2007 quarter.
Oilfield Services: GS&A decreased $0.4 million, a 7.1% decrease over the 2007 quarter.
Corporate: GS&A increased $1.1 million due to increased employee benefit and IT costs.
Operating profit: Operating profit increased $0.2 million, a 1.5% increase over the prior year.
Interest expense: Net interest expense increased by approximately $1.1 million over the prior year quarter due to greater average debt levels.
Other, net: Other, net increased $3.3 million, principally due to foreign currency transaction losses. This includes losses on derivative instruments on the Australian dollar relating to our pending transaction to acquire a majority interest in a chrome sand deposit in South Africa.
Income taxes: The effective tax rate for the fourth quarter of 2008 was 13.8% compared to 34.3% for the same period in 2007. The current year quarter was positively impacted by increased benefits from depletion deductions and research and development credits recorded in the fourth quarter. Since this is the last quarter of the year, these items decreased the effective rate by a large amount.
Income and losses from affiliates and joint ventures: Income and losses from affiliates and joint ventures decreased $9.6 million compared to the prior year quarter. The current period loss of $7.3 million includes the $5.9 million non-cash charge for the fair value of derivative instruments held by Ashapura, as previously discussed in this release.
MORE
AMCOL Q4 2008 EARNINGS
Page 5 of 13
Share count: Weighted average common and common equivalent shares outstanding were comparable for the quarters ended December 31, 2008 and 2007 at 31.0 million shares.
FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:
Long-term debt increased to $256.8 million at December 31, 2008 compared to $164.2 million at December 31, 2007. The increase was primarily due to funding acquisitions, increased working capital levels and capital expenditures. Total long-term debt represented 44.0% of capitalization at December 31, 2008, compared with 31.8% at December 31, 2007. Cash and cash equivalents were $19.4 million at December 31, 2008 compared with $25.3 million at December 31, 2007.
Working capital increased to $266.4 million at December 31, 2008 from $202.5 million at December 31, 2007. The current ratio was 3.5 to 1.0 and 3.0 to 1.0 at December 31, 2008, and December 31, 2007, respectively.
Cash flow provided from operating activities was $18.4 million for year-to-date December 31, 2008 compared to $66.2 million in the prior year. The increase in working capital caused the decline in operating cash flows compared with the prior year, principally due to an increase in accounts receivable and inventories.
The primary investing activities in the 2008 twelve-month period include acquisitions of $42.8 million, compared with $45.2 million for the same period in 2007, and capital expenditures (excluding our corporate building) of $37.1 million compared with $46.0 for the same period in 2007.
We repurchased $2.0 million of our shares through December 31, 2008, approximately eighty thousand shares at an average price of $25.45 per share. Our share repurchase program expired in November 2008. Dividends declared year-to-date through December 31, 2008 increased by 14.5% over the prior year period to $20.6 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.
MORE
AMCOL Q4 2008 EARNINGS
Page 6 of 13
AMCOL International, headquartered in Hoffman Estates, 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 on Friday, January 30, 2009 at 11 a.m. EST on the AMCOL website or by dialing (877) 874-1586.
Financial tables follow.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Twelve Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net sales | $ | 883,552 | $ | 744,334 | $ | 205,248 | $ | 194,554 | ||||||||
Cost of sales | 658,653 | 547,820 | 152,926 | 145,630 | ||||||||||||
Gross profit | 224,899 | 196,514 | 52,322 | 48,924 | ||||||||||||
General, selling and administrative expenses | 145,653 | 121,187 | 36,592 | 33,431 | ||||||||||||
Operating profit | 79,246 | 75,327 | 15,730 | 15,493 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (12,154 | ) | (8,915 | ) | (3,512 | ) | (2,409 | ) | ||||||||
Other, net | (4,880 | ) | (1,139 | ) | (3,405 | ) | (139 | ) | ||||||||
(17,034 | ) | (10,054 | ) | (6,917 | ) | (2,548 | ) | |||||||||
Income before income taxes and income from affiliates and joint ventures | 62,212 | 65,273 | 8,813 | 12,945 | ||||||||||||
Income tax expense | 15,167 | 16,646 | 1,217 | 4,441 | ||||||||||||
Income before income from affiliates and joint ventures | 47,045 | 48,627 | 7,596 | 8,504 | ||||||||||||
Income (loss) from affiliates and joint ventures | (21,714 | ) | 8,394 | (7,337 | ) | 2,276 | ||||||||||
Income from continuing operations | 25,331 | 57,021 | 259 | 10,780 | ||||||||||||
(Loss) Income from discontinued operations | - | (286 | ) | - | - | |||||||||||
Net income | $ | 25,331 | $ | 56,735 | $ | 259 | $ | 10,780 | ||||||||
Weighted average common shares outstanding | 30,446 | 30,165 | 30,568 | 30,220 | ||||||||||||
Weighted average common and common equivalent shares outstanding | 30,990 | 30,959 | 30,963 | 31,030 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.83 | $ | 1.89 | $ | 0.01 | $ | 0.36 | ||||||||
Discontinued operations | - | (0.01 | ) | - | - | |||||||||||
Basic earnings per share | $ | 0.83 | $ | 1.88 | $ | 0.01 | $ | 0.36 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.83 | $ | 1.84 | $ | 0.01 | $ | 0.35 | ||||||||
Discontinued operations | - | (0.01 | ) | - | - | |||||||||||
Diluted earnings per share | $ | 0.82 | $ | 1.83 | $ | 0.01 | $ | 0.35 | ||||||||
Dividends declared per share | $ | 0.68 | $ | 0.60 | $ | 0.18 | $ | 0.16 |
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2008 (unaudited) | December 31, 2007 * | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 19,441 | $ | 25,282 | ||||
Accounts receivable, net | 197,611 | 166,835 | ||||||
Inventories | 125,066 | 91,367 | ||||||
Prepaid expenses | 12,812 | 13,529 | ||||||
Deferred income taxes | 9,052 | 4,374 | ||||||
Income tax receivable | 3,490 | 2,768 | ||||||
Other | 7,409 | 475 | ||||||
Total current assets | 374,881 | 304,630 | ||||||
Investments in and advances to affiliates and joint ventures | 30,025 | 49,309 | ||||||
Property, plant, equipment, mineral rights and reserves: | ||||||||
Land and mineral rights | 17,186 | 21,394 | ||||||
Depreciable assets | 385,671 | 352,100 | ||||||
402,857 | 373,494 | |||||||
Less: accumulated depreciation and depletion | 211,514 | 196,904 | ||||||
191,343 | 176,590 | |||||||
Other assets: | ||||||||
Goodwill | 68,482 | 59,840 | ||||||
Intangible assets, net | 53,974 | 41,257 | ||||||
Deferred income taxes | 12,173 | 5,513 | ||||||
Other assets | 13,702 | 15,007 | ||||||
148,331 | 121,617 | |||||||
$ | 744,580 | $ | 652,146 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 45,297 | $ | 44,274 | ||||
Accrued liabilities | 63,197 | 57,833 | ||||||
Total current liabilities | 108,494 | 102,107 | ||||||
Long-term debt | 256,821 | 164,232 | ||||||
Total long-term debt | 256,821 | 164,232 | ||||||
Minority interests in subsidiaries | 3,558 | 327 | ||||||
Pension liabilities | 22,939 | 9,576 | ||||||
Deferred compensation | 5,904 | 7,559 | ||||||
Other liabilities | 20,658 | 16,022 | ||||||
53,059 | 33,484 | |||||||
Stockholders’ equity: | ||||||||
Common stock | 320 | 320 | ||||||
Additional paid in capital | 86,350 | 81,599 | ||||||
Retained earnings | 262,453 | 258,164 | ||||||
Accumulated other comprehensive income (loss) | (4,721 | ) | 33,248 | |||||
344,402 | 373,331 | |||||||
Less: | ||||||||
Treasury stock | 18,196 | 21,008 | ||||||
326,206 | 352,323 | |||||||
$ | 744,580 | $ | 652,146 |
* Condensed from audited financial statements.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Twelve Months Ended December 31, | ||||||||
2008 | 2007 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 25,331 | $ | 56,735 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation, depletion, and amortization | 33,985 | 29,219 | ||||||
Undistributed earning from affiliates and joint ventures | 22,526 | (7,229 | ) | |||||
Other non - cash charges | 1,274 | (644 | ) | |||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
Decrease (Increase) in current assets | (64,523 | ) | (40,675 | ) | ||||
Decrease (Increase) in noncurrent assets | 3,604 | (1,913 | ) | |||||
Increase (decrease) in current liabilities | (2,803 | ) | 21,021 | |||||
Increase (decrease) in noncurrent liabilities | (1,007 | ) | 9,667 | |||||
Net cash provided by (used in) operating activities | 18,387 | 66,181 | ||||||
Cash flow from investing activities: | ||||||||
Capital expenditures | (37,078 | ) | (46,004 | ) | ||||
Capital expenditures - corporate building | (23,662 | ) | (7,050 | ) | ||||
Acquisitions, net of cash | (42,769 | ) | (45,191 | ) | ||||
Investments in and advances to affiliates and joint ventures | (14,067 | ) | (6,636 | ) | ||||
Advances to non - affiliates | (6,000 | ) | - | |||||
Proceeds from sale of land and depreciable assets | 23,159 | 6,896 | ||||||
Investments in restricted cash | (1,723 | ) | 2,504 | |||||
Other | 1,522 | (386 | ) | |||||
Net cash used in investing activities | (100,618 | ) | (95,867 | ) | ||||
Cash flow from financing activities: | ||||||||
Net change in outstanding debt | 98,532 | 50,348 | ||||||
Proceeds from sales of treasury stock | 1,608 | 3,336 | ||||||
Purchases of treasury stock | (2,062 | ) | (6,622 | ) | ||||
Dividends | (20,619 | ) | (18,008 | ) | ||||
Excess tax benefits from stock-based compensation | 1,188 | 2,030 | ||||||
Other | - | 255 | ||||||
Net cash provided by financing activities | 78,647 | 31,339 | ||||||
Effect of foreign currency rate changes on cash | (2,257 | ) | 5,824 | |||||
Net increase (decrease) in cash and cash equivalents | (5,841 | ) | 7,477 | |||||
Cash and cash equivalents at beginning of period | 25,282 | 17,805 | ||||||
Cash and cash equivalents at end of period | $ | 19,441 | $ | 25,282 |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
QUARTER-TO-DATE
Three Months Ended December 31, | ||||||||||||||||||||||||
Minerals | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 105,758 | 100.0 | % | $ | 94,238 | 100.0 | % | $ | 11,520 | 12.2 | % | ||||||||||||
Cost of sales | 81,396 | 77.0 | % | 78,366 | 83.2 | % | 3,030 | 3.9 | % | |||||||||||||||
Gross profit | 24,362 | 23.0 | % | 15,872 | 16.8 | % | 8,490 | 53.5 | % | |||||||||||||||
General, selling and administrative expenses | 11,200 | 10.6 | % | 8,473 | 9.0 | % | 2,727 | 32.2 | % | |||||||||||||||
Operating profit | 13,162 | 12.4 | % | 7,399 | 7.8 | % | 5,763 | 77.9 | % |
Three Months Ended December 31, | ||||||||||||||||||||||||
Environmental | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 56,315 | 100.0 | % | $ | 62,849 | 100.0 | % | $ | (6,534 | ) | -10.4 | % | |||||||||||
Cost of sales | 39,415 | 70.0 | % | 42,194 | 67.1 | % | (2,779 | ) | -6.6 | % | ||||||||||||||
Gross profit | 16,900 | 30.0 | % | 20,655 | 32.9 | % | (3,755 | ) | -18.2 | % | ||||||||||||||
General, selling and administrative expenses | 12,776 | 22.7 | % | 13,277 | 21.1 | % | (501 | ) | -3.8 | % | ||||||||||||||
Operating profit | 4,124 | 7.3 | % | 7,378 | 11.8 | % | (3,254 | ) | -44.1 | % |
Three Months Ended December 31, | ||||||||||||||||||||||||
Oilfield Services | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 33,423 | 100.0 | % | $ | 28,435 | 100.0 | % | $ | 4,988 | 17.5 | % | ||||||||||||
Cost of sales | 23,964 | 71.7 | % | 17,545 | 61.7 | % | 6,419 | 36.6 | % | |||||||||||||||
Gross profit | 9,459 | 28.3 | % | 10,890 | 38.3 | % | (1,431 | ) | -13.1 | % | ||||||||||||||
General, selling and administrative expenses | 5,123 | 15.3 | % | 5,516 | 19.4 | % | (393 | ) | -7.1 | % | ||||||||||||||
Operating profit | 4,336 | 13.0 | % | 5,374 | 18.9 | % | (1,038 | ) | -19.3 | % |
Three Months Ended December 31, | ||||||||||||||||||||||||
Transportation | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 14,705 | 100.0 | % | $ | 13,755 | 100.0 | % | $ | 950 | 6.9 | % | ||||||||||||
Cost of sales | 13,104 | 89.1 | % | 12,248 | 89.0 | % | 856 | 7.0 | % | |||||||||||||||
Gross profit | 1,601 | 10.9 | % | 1,507 | 11.0 | % | 94 | 6.2 | % | |||||||||||||||
General, selling and administrative expenses | 926 | 6.3 | % | 741 | 5.4 | % | 185 | 25.0 | % | |||||||||||||||
Operating profit | 675 | 4.6 | % | 766 | 5.6 | % | (91 | ) | -11.9 | % |
Three Months Ended December 31, | ||||||||||||||||
Corporate | 2008 | 2007 | 2008 vs 2007 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Intersegment shipping sales | $ | (4,953 | ) | $ | (4,723 | ) | $ | (230 | ) | |||||||
Intersegment shipping costs | (4,953 | ) | (4,723 | ) | (230 | ) | ||||||||||
Gross profit | - | - | ||||||||||||||
General, selling and administrative expenses | 6,567 | 5,424 | 1,143 | 17.4 | % | |||||||||||
Operating loss | (6,567 | ) | (5,424 | ) | (1,143 | ) | 17.4 | % |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
YEAR-TO-DATE
Twelve Months Ended December 31, | ||||||||||||||||||||||||
Minerals | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 428,986 | 100.0 | % | $ | 356,670 | 100.0 | % | $ | 72,316 | 20.3 | % | ||||||||||||
Cost of sales | 348,928 | 81.3 | % | 290,371 | 81.4 | % | 58,557 | 20.2 | % | |||||||||||||||
Gross profit | 80,058 | 18.7 | % | 66,299 | 18.6 | % | 13,759 | 20.8 | % | |||||||||||||||
General, selling and administrative expenses | 39,579 | 9.2 | % | 32,194 | 9.0 | % | 7,385 | 22.9 | % | |||||||||||||||
Operating profit | 40,479 | 9.5 | % | 34,105 | 9.6 | % | 6,374 | 18.7 | % |
Twelve Months Ended December 31, | ||||||||||||||||||||||||
Environmental | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 278,708 | 100.0 | % | $ | 252,776 | 100.0 | % | $ | 25,932 | 10.3 | % | ||||||||||||
Cost of sales | 187,109 | 67.1 | % | 166,717 | 66.0 | % | 20,392 | 12.2 | % | |||||||||||||||
Gross profit | 91,599 | 32.9 | % | 86,059 | 34.0 | % | 5,540 | 6.4 | % | |||||||||||||||
General, selling and administrative expenses | 54,530 | 19.6 | % | 47,665 | 18.9 | % | 6,865 | 14.4 | % | |||||||||||||||
Operating profit | 37,069 | 13.3 | % | 38,394 | 15.1 | % | (1,325 | ) | -3.5 | % |
Twelve Months Ended December 31, | ||||||||||||||||||||||||
Oilfield Services | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 133,600 | 100.0 | % | $ | 100,572 | 100.0 | % | $ | 33,028 | 32.8 | % | ||||||||||||
Cost of sales | 87,094 | 65.2 | % | 62,178 | 61.8 | % | 24,916 | 40.1 | % | |||||||||||||||
Gross profit | 46,506 | 34.8 | % | 38,394 | 38.2 | % | 8,112 | 21.1 | % | |||||||||||||||
General, selling and administrative expenses | 23,279 | 17.4 | % | 19,177 | 19.1 | % | 4,102 | 21.4 | % | |||||||||||||||
Operating profit | 23,227 | 17.4 | % | 19,217 | 19.1 | % | 4,010 | 20.9 | % |
Twelve Months Ended December 31, | ||||||||||||||||||||||||
Transportation | 2008 | 2007 | 2008 vs 2007 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 63,921 | 100.0 | % | $ | 52,409 | 100.0 | % | $ | 11,512 | 22.0 | % | ||||||||||||
Cost of sales | 57,185 | 89.5 | % | 46,647 | 89.0 | % | 10,538 | 22.6 | % | |||||||||||||||
Gross profit | 6,736 | 10.5 | % | 5,762 | 11.0 | % | 974 | 16.9 | % | |||||||||||||||
General, selling and administrative expenses | 3,490 | 5.5 | % | 2,994 | 5.7 | % | 496 | 16.6 | % | |||||||||||||||
Operating profit | 3,246 | 5.0 | % | 2,768 | 5.3 | % | 478 | 17.3 | % |
Twelve Months Ended December 31, | ||||||||||||||||
Corporate | 2008 | 2007 | 2008 vs 2007 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Intersegment shipping sales | $ | (21,663 | ) | $ | (18,093 | ) | $ | (3,570 | ) | |||||||
Intersegment shipping costs | (21,663 | ) | (18,093 | ) | (3,570 | ) | ||||||||||
Gross profit | - | - | ||||||||||||||
General, selling and administrative expenses | 24,775 | 19,157 | 5,618 | 29.3 | % | |||||||||||
Operating loss | (24,775 | ) | (19,157 | ) | (5,618 | ) | 29.3 | % |
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
QUARTER-TO-DATE
Three Months Ended December 31, 2008 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 36.8 | % | 8.4 | % | 6.3 | % | 51.5 | % | ||||||||
Environmental | 15.5 | % | 10.1 | % | 1.8 | % | 27.4 | % | ||||||||
Oilfield services | 14.0 | % | 1.5 | % | 0.8 | % | 16.3 | % | ||||||||
Transportation | 4.8 | % | 0.0 | % | 0.0 | % | 4.8 | % | ||||||||
Total - current year's period | 71.1 | % | 20.0 | % | 8.9 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 66.5 | % | 24.8 | % | 8.7 | % | 100.0 | % |
Three Months Ended December 31, 2008 | ||||||||||||||||
vs. | ||||||||||||||||
Three Months Ended December 31, 2007 | ||||||||||||||||
Percentage of Revenue Growth by Component | Base Business | Acquisitions | Foreign Exchange | Total | ||||||||||||
Minerals | 8.4 | % | 0.0 | % | -2.5 | % | 5.9 | % | ||||||||
Environmental | -1.0 | % | 0.5 | % | -2.9 | % | -3.4 | % | ||||||||
Oilfield services | 1.0 | % | 2.0 | % | -0.4 | % | 2.6 | % | ||||||||
Transportation | 0.4 | % | 0.0 | % | 0.0 | % | 0.4 | % | ||||||||
Total | 8.8 | % | 2.5 | % | -5.8 | % | 5.5 | % | ||||||||
% of growth | 159.6 | % | 44.2 | % | -103.8 | % | 100.0 | % | ||||||||
Three Months Ended December 31, | ||||||||||||
2008 | 2007 | % change | ||||||||||
Minerals Product Line Sales | (Dollars in Thousands) | |||||||||||
�� | ||||||||||||
Metalcasting | $ | 40,954 | $ | 38,257 | 7.0 | % | ||||||
Specialty materials | 27,003 | 27,382 | -1.4 | % | ||||||||
Pet products | 19,999 | 17,897 | 11.7 | % | ||||||||
Basic minerals | 18,108 | 9,566 | 89.3 | % | ||||||||
Other product lines | (306 | ) | 1,136 | * | ||||||||
Total | 105,758 | 94,238 |
* Not meaningful.
Three Months Ended December 31, | ||||||||||||
2008 | 2007 | % change | ||||||||||
Environmental Product Line Sales | (Dollars in Thousands) | |||||||||||
Lining technologies | $ | 36,628 | $ | 36,532 | 0.3 | % | ||||||
Building materials | 13,290 | 20,472 | -35.1 | % | ||||||||
Other product lines | 6,397 | 5,845 | * | |||||||||
Total | 56,315 | 62,849 |
;
* Not meaningful.
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
YEAR-TO-DATE
Twelve Months Ended December 31, 2008 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 34.1 | % | 7.8 | % | 6.7 | % | 48.6 | % | ||||||||
Environmental | 16.5 | % | 13.0 | % | 2.0 | % | 31.5 | % | ||||||||
Oilfield services | 12.9 | % | 1.6 | % | 0.6 | % | 15.1 | % | ||||||||
Transportation | 4.8 | % | 0.0 | % | 0.0 | % | 4.8 | % | ||||||||
Total - current year's period | 68.3 | % | 22.4 | % | 9.3 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 68.2 | % | 23.8 | % | 8.0 | % | 100.0 | % |
Twelve Months Ended December 31, 2008 | ||||||||||||||||
vs. | ||||||||||||||||
Twelve Months Ended December 31, 2007 | ||||||||||||||||
Percentage of Revenue Growth by Component | Base Business | Acquisitions | Foreign Exchange | Total | ||||||||||||
Minerals | 8.7 | % | 1.3 | % | -0.3 | % | 9.7 | % | ||||||||
Environmental | 2.1 | % | 0.8 | % | 0.6 | % | 3.5 | % | ||||||||
Oilfield services | 2.8 | % | 1.7 | % | -0.1 | % | 4.4 | % | ||||||||
Transportation | 1.1 | % | 0.0 | % | 0.0 | % | 1.1 | % | ||||||||
Total | 14.7 | % | 3.8 | % | 0.2 | % | 18.7 | % | ||||||||
% of growth | 78.4 | % | 20.4 | % | 1.2 | % | 100.0 | % |
Twelve Months Ended December 31, | ||||||||||||
Minerals Product Line Sales | 2008 | 2007 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Metalcasting | $ | 175,072 | $ | 152,358 | 14.9 | % | ||||||
Specialty materials | 104,242 | 90,374 | 15.3 | % | ||||||||
Pet products | 78,260 | 65,804 | 18.9 | % | ||||||||
Basic minerals | 65,383 | 43,269 | 51.1 | % | ||||||||
Other product lines | 6,029 | 4,865 | * | |||||||||
Total | 428,986 | 356,670 |
* Not meaningful.
Twelve Months Ended December 31, | ||||||||||||
Environmental Product Line Sales | 2008 | 2007 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Lining technologies | $ | 174,895 | $ | 149,191 | 17.2 | % | ||||||
Building materials | 78,380 | 80,555 | -2.7 | % | ||||||||
Other product lines | 25,433 | 23,030 | * | |||||||||
Total | 278,708 | 252,776 |
* Not meaningful.