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For further information, contact: | Don Pearson |
Vice President & CFO | |
847.851.1500 |
AMCOL International Corporation (NYSE:ACO)
Reports Second Quarter Results
HOFFMAN ESTATES, IL., JULY 24, 2009—AMCOL International Corporation (NYSE:ACO) today reported 2009 second quarter net income attributable to AMCOL shareholders of $6.1 million, or $0.20 per diluted share, compared with $14.8 million, or $0.48 per diluted share, in the prior year period.
Net sales decreased 26.8% to $171.2 million for the quarter ended June 30, 2009 from $233.8 million in the 2008 period. Foreign currency fluctuations had a $14.9 million unfavorable impact, offset by $4.7 million in new revenue from acquisitions. Operating profit decreased by 41.2% over the 2008 period to $13.8 million; foreign currency fluctuations and acquisitions had unfavorable impacts of $2.4 million and $0.6 million, respectively, on current period operating profit. Our joint ventures also experienced losses amounting to $0.05 per diluted share as compared to $0.02 per share in the prior year period. However, our reduced effective tax rate for the quarter added $0.05 per diluted share.
For the six-month period ended June 30, 2009, net income attributable to AMCOL shareholders was $10.3 million, or $0.33 per diluted share, compared with $23.5 million, or $0.76 per diluted share in the prior year period.
Net sales for the six-month period ended June 30, 2009 decreased 21.1% to $335.6 million, compared with $425.3 million for the 2008 period. Foreign currency fluctuations had a $29.6 million unfavorable impact offset by $8.5 million in new revenue from acquisitions. Operating profit declined by 33.8% over the 2008 period to $23.9 million. Foreign currency fluctuations and acquisitions had unfavorable impacts of $3.7 million and $1.3 million, respectively, on current period operating profit.
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 later in this press release.
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AMCOL Q2 2009 EARNINGS
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“We continue to see a very challenging environment as revenues are down from last year’s second quarter across all of our reporting segments. The positive news is that gross margins have improved from the prior year,” said Larry Washow, AMCOL President and Chief Executive Officer. “We are also pleased with progress on our balance sheet as we continued to reduce our debt levels, inventory and receivables.”
Washow continued, “Our Minerals segment has not seen any improvement in the U.S. metalcasting or oil drilling markets. We have seen more positive activity in Asia but the impact is relatively small in our overall minerals business. Our focus on costs continues, but we are well prepared should we see any opportunities develop in our markets.”
“Our Environmental segment is getting into their stronger season so we did see revenue up from Q1 but well off last year’s pace. The global decline in commercial construction has had a significant impact on our building materials business. Lining Technologies is also down but there are a number of projects, especially in Europe, that seem likely to begin this year,” Washow added.
“The Oilfield Services segment did show revenue softening even though we had the full quarter benefit of the Premium Reeled Tubing (“PRT”) acquisition. The competitive environment is impacting margins. The uncertainty of oil prices and reduced drilling activity is also reducing overall project demand,” Washow continued.
“We remain focused on strengthening our balance sheet and taking out costs. At the same time we are moving forward with important business opportunities such as our project in South Africa. While this is a very difficult business cycle, our actions today are driven with the benefit of more than 80 years of history and the confidence that markets will improve,” Washow concluded
STATEMENT OF OPERATIONS HIGHLIGHTS:
The statement of operations highlights are supported by the segment results schedules included in this press release.
Net sales: The following details the components of sales by segment for the 2009 second quarter compared to the prior year’s second quarter.
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AMCOL Q2 2009 EARNINGS
Page 3 of 13
Minerals: The majority of the decrease in the quarter’s revenue was due to lower volumes in the U.S. metal casting and basic minerals product lines, partially offset by price increases. Freight pass-through revenue accounted for approximately 27% of the total segment’s decrease, principally from the pet products and metal castings divisions. Foreign currency fluctuations represented approximately 15% of the decrease in revenue principally due to the weakening of the British pound against the U.S. dollar.
Environmental: Foreign currency fluctuations represented approximately 43% of the revenue decrease, primarily due to the weakening of the British pound and the Polish zloty against the U.S. dollar. The remaining revenue decrease in base business was principally due to lower demand in the U.S. for our lining technology products and services provided by our contracting services group.
Oilfield Services: Lower demand for oil and natural gas has reduced oil production activity, driving the lower revenue in the current quarter compared to the prior year quarter. Domestic base business revenues declined in the current quarter, except for our water treatment business which continues to have strong demand.
Compared to the prior year quarter, international sales were down substantially in Nigeria and the UK due to lower demand for our services. Brazil, which had no revenues in the prior year quarter, and Malaysia both experienced solid growth. The Premium Reeled Tubing (“PRT”), acquisition added $4.0 million of revenue in the quarter.
Transportation: Reductions in fuel-surcharge revenue represented 57% of the revenue decrease; the remaining decrease was due to reduced demand for consumer product shipments.
Gross profit: Gross profit decreased $15.5 million, or 24.8%, from the 2008 second quarter while gross margin was 27.5%, a 70 basis point improvement from the 2008 quarter.
Minerals: Gross profit decreased $3.4 million, or 18.7%, from the 2008 quarter while gross margins improved 270 basis points to 19.8%. The gross margin improvement is principally due to domestic pricing initiatives put in place in 2008, capacity and headcount reductions in our domestic operation, and lower energy costs at our mining and processing facilities. These benefits are partially offset by decreased volumes.
Environmental: Gross profit decreased $7.3 million, or 27.3%, from the 2008 quarter while gross margins increased 90 basis points to 35.3%; the margin increase is due to lower input costs, principally resin, and lower freight costs due to the reduction in energy costs. These benefits are partially offset by decreased volumes.
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AMCOL Q2 2009 EARNINGS
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Oilfield Services: Gross profit decreased $4.4 million, or 27.9%, from the 2008 quarter and gross margin decreased 640 basis points to 35.4%. The reduction in gross margin is due to increased pricing pressure in certain domestic services.
Transportation: Gross profit had a small decrease over the prior year quarter and gross margin improved 160 basis points to 11.6% due to lower energy costs.
General, selling and administrative expenses (GS&A): GS&A expenses decreased $5.8 million, a 14.9% decrease over the prior year quarter.
Minerals: GS&A decreased $0.7 million, a 7.1% decrease from the 2008 quarter, the majority of the decline being due to foreign exchange fluctuations and reductions in personnel related costs both being partially offset by increased bad debts in the U.S.
Environmental: GS&A decreased $2.2 million, a 15.4% decrease from the 2008 quarter. The majority of the reduction was due to foreign currency fluctuations, primarily due to the weakening of the British pound and the Polish zloty against the U.S. dollar. We also decreased our personnel related costs.
Oilfield Services: GS&A decreased $0.1 million, a 1.3% decrease from the 2008 quarter. Cost reductions were partially offset by increased costs from the PRT acquisition.
Corporate: GS&A decreased $2.8 million from the 2008 quarter due to improved performance in non-qualified pension plan assets and lower personnel, IT and consulting costs.
Interest expense: Net interest expense increased by $0.3 million over the prior year quarter due to higher average debt levels.
Other, net: Other, net of $1.5 million decreased $2.3 million, compared to the 2008 quarter gain of $0.8 million, principally due to foreign currency transaction losses.
Income taxes: The effective tax rate for the second quarter of 2009 was 17.0% compared with 26.4% for the same period in 2008. The fact that a greater proportion of our income is generated in lower tax rate jurisdictions (principally foreign countries) accounts for the significant reduction in our tax rate.
Income and losses from affiliates and joint ventures: Losses from affiliates and joint ventures of $1.6 million increased $1.0 million compared to the prior year quarter. This is principally due to losses with our Russian, Japanese and Dutch investments.
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AMCOL Q2 2009 EARNINGS
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Share count: Weighted average common and common equivalent shares outstanding were comparable for the quarters ended June 30, 2009 and 2008 at 30.9 million shares.
FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:
Long-term debt decreased $26.8 million to $230.1 million at June 30, 2009 compared to $256.8 million at December 31, 2008. The reduction was primarily due to a decrease in working capital levels and lower capital expenditures. Total long-term debt represented 41.1% of capitalization at June 30, 2009, compared with 43.9% at December 31, 2008. Cash and cash equivalents were $21.4 million at June 30, 2009 compared with $19.4 million at December 31, 2008.
Working capital decreased to $208.1 million at June 30, 2009 from $262.7 million at December 31, 2008. The reduction in working capital was due to a combination of lower volumes and continued efforts to reduce working capital.
Cash flow generated from operating activities was $65.5 million for year-to-date June 30, 2009 compared to a cash outflow of $2.0 million in the prior year period. This increase was principally due to the decrease in working capital, offset by the reduction in net income.
Excluding our corporate building and $15.1 million of expenditures for our purchase of a chrome mine in South Africa, capital expenditures in the 2009 period were $17.3 million compared with $23.3 million in the prior year period. The reduction in adjusted capital expenditures is due to our limiting capital expenditures to maintenance and minimal expansion projects in 2009.
Dividends declared year-to-date through June 30, 2009 increased by 13.9 % over the prior year period to $11.0 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 Q2 2009 EARNINGS
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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 Company., 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 second quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website or by dialing 800.211.3767
.
Financial tables follow.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Six Months Ended | Three Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 335,619 | $ | 425,256 | $ | 171,200 | $ | 233,847 | ||||||||
Cost of sales | 245,251 | 316,246 | 124,052 | 171,187 | ||||||||||||
Gross profit | 90,368 | 109,010 | 47,148 | 62,660 | ||||||||||||
General, selling and administrative expenses | 66,421 | 72,847 | 33,368 | 39,209 | ||||||||||||
Operating profit | 23,947 | 36,163 | 13,780 | 23,451 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (6,566 | ) | (5,238 | ) | (3,159 | ) | (2,837 | ) | ||||||||
Other, net | (2,714 | ) | 595 | (1,502 | ) | 830 | ||||||||||
(9,280 | ) | (4,643 | ) | (4,661 | ) | (2,007 | ) | |||||||||
Income before income taxes and income (loss) from affiliates and joint ventures | 14,667 | 31,520 | 9,119 | 21,444 | ||||||||||||
Income tax expense | 3,117 | 8,383 | 1,546 | 5,666 | ||||||||||||
Income before income (loss) from affiliates and joint ventures | 11,550 | 23,137 | 7,573 | 15,778 | ||||||||||||
Income (loss) from affiliates and joint ventures | (1,642 | ) | 625 | (1,634 | ) | (670 | ) | |||||||||
Net income | 9,908 | 23,762 | 5,939 | 15,108 | ||||||||||||
Net income (loss) attributable to the noncontrolling interest | (365 | ) | 307 | (158 | ) | 274 | ||||||||||
Net income (loss) attributable to AMCOL shareholders | $ | 10,273 | $ | 23,455 | $ | 6,097 | $ | 14,834 | ||||||||
Weighted average common shares outstanding | 30,719 | 30,336 | 30,744 | 30,413 | ||||||||||||
Weighted average common and common equivalent shares outstanding | 30,928 | 30,938 | 30,984 | 30,993 | ||||||||||||
Basic earnings per share attributable to AMCOL shareholders | $ | 0.33 | $ | 0.77 | $ | 0.20 | $ | 0.49 | ||||||||
Diluted earnings per share attributable to AMCOL shareholders | $ | 0.33 | $ | 0.76 | $ | 0.20 | $ | 0.48 | ||||||||
Dividends declared per share | $ | 0.36 | $ | 0.32 | $ | 0.18 | $ | 0.16 |
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(unaudited) | * | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 21,357 | $ | 19,441 | ||||
Accounts receivable, net | 155,196 | 197,611 | ||||||
Inventories | 104,776 | 125,066 | ||||||
Prepaid expenses | 13,969 | 12,812 | ||||||
Deferred income taxes | 4,723 | 5,358 | ||||||
Income tax receivable | 4,008 | 3,490 | ||||||
Other | 161 | 7,409 | ||||||
Total current assets | 304,190 | 371,187 | ||||||
Investments in and advances to affiliates and joint ventures | 28,043 | 30,025 | ||||||
Property, plant, equipment, mineral rights and reserves: | ||||||||
Land and mineral rights | 53,628 | 17,186 | ||||||
Depreciable assets | 399,099 | 380,555 | ||||||
452,727 | 397,741 | |||||||
Less: accumulated depreciation and depletion | 222,606 | 206,398 | ||||||
230,121 | 191,343 | |||||||
Other assets: | ||||||||
Goodwill | 71,035 | 68,482 | ||||||
Intangible assets, net | 50,352 | 53,974 | ||||||
Deferred income taxes | 15,136 | 15,867 | ||||||
Other assets | 22,575 | 13,702 | ||||||
159,098 | 152,025 | |||||||
$ | 721,452 | $ | 744,580 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 43,837 | $ | 45,297 | ||||
Accrued liabilities | 52,257 | 63,197 | ||||||
Total current liabilities | 96,094 | 108,494 | ||||||
Long-term debt | 230,056 | 256,821 | ||||||
Pension liabilities | 24,263 | 22,939 | ||||||
Other liabilities | 41,120 | 27,971 | ||||||
65,383 | 50,910 | |||||||
Equity: | ||||||||
Common stock | 320 | 320 | ||||||
Additional paid in capital | 82,586 | 86,350 | ||||||
Retained earnings | 261,712 | 262,453 | ||||||
Accumulated other comprehensive income | 540 | (4,721 | ) | |||||
345,158 | 344,402 | |||||||
Less: | ||||||||
Treasury stock | (16,330 | ) | (18,196 | ) | ||||
Total AMCOL shareholder's equity | 328,828 | 326,206 | ||||||
Noncontrolling interest | 1,091 | 2,149 | ||||||
Total equity | 329,919 | 328,355 | ||||||
$ | 721,452 | $ | 744,580 |
* Condensed from audited financial statements.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 9,908 | $ | 23,762 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation, depletion, and amortization | 17,875 | 15,747 | ||||||
Other non - cash charges | 3,630 | (488 | ) | |||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
Decrease (Increase) in current assets | 45,157 | (53,864 | ) | |||||
Decrease (Increase) in noncurrent assets | (4,665 | ) | (650 | ) | ||||
Increase (decrease) in current liabilities | (8,004 | ) | 12,065 | |||||
Increase (decrease) in noncurrent liabilities | 1,639 | 1,416 | ||||||
Net cash provided by (used in) operating activities | 65,540 | (2,012 | ) | |||||
Cash flow from investing activities: | ||||||||
Capital expenditures | (32,446 | ) | (23,313 | ) | ||||
Capital expenditures - corporate building | (6,400 | ) | (6,273 | ) | ||||
Proceeds from sale of depreciable assets - corporate building | 6,400 | - | ||||||
Acquisitions, net of cash | (522 | ) | (42,257 | ) | ||||
Investments in and advances to affiliates and joint ventures | (889 | ) | (9,715 | ) | ||||
Receipts from (advances to) Chrome Corp | 6,000 | (6,000 | ) | |||||
Other | 1,874 | (1,198 | ) | |||||
Net cash used in investing activities | (25,983 | ) | (88,756 | ) | ||||
Cash flow from financing activities: | ||||||||
Net change in outstanding debt | (28,792 | ) | 84,820 | |||||
Net change in outstanding debt - corporate building | - | 11,081 | ||||||
Proceeds from sales of treasury stock | 768 | 1,272 | ||||||
Purchases of treasury stock | (165 | ) | (2,062 | ) | ||||
Dividends | (11,014 | ) | (9,671 | ) | ||||
Excess tax benefits from stock-based compensation | 686 | 913 | ||||||
Net cash provided by (used in) financing activities | (38,517 | ) | 86,353 | |||||
Effect of foreign currency rate changes on cash | 876 | 1,115 | ||||||
Net increase (decrease) in cash and cash equivalents | 1,916 | (3,300 | ) | |||||
Cash and cash equivalents at beginning of period | 19,441 | 25,282 | ||||||
Cash and cash equivalents at end of period | $ | 21,357 | $ | 21,982 |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
QUARTER-TO-DATE
Three Months Ended June 30, | ||||||||||||||||||||||||
Minerals | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 75,479 | 100.0 | % | $ | 107,003 | 100.0 | % | $ | (31,524 | ) | -29.5 | % | |||||||||||
Cost of sales | 60,567 | 80.2 | % | 88,659 | 82.9 | % | (28,092 | ) | -31.7 | % | ||||||||||||||
Gross profit | 14,912 | 19.8 | % | 18,344 | 17.1 | % | (3,432 | ) | -18.7 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 9,129 | 12.1 | % | 9,824 | 9.2 | % | (695 | ) | -7.1 | % | ||||||||||||||
Operating profit | 5,783 | 7.7 | % | 8,520 | 7.9 | % | (2,737 | ) | -32.1 | % | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Environmental | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 55,370 | 100.0 | % | $ | 78,041 | 100.0 | % | $ | (22,671 | ) | -29.1 | % | |||||||||||
Cost of sales | 35,843 | 64.7 | % | 51,165 | 65.6 | % | (15,322 | ) | -29.9 | % | ||||||||||||||
Gross profit | 19,527 | 35.3 | % | 26,876 | 34.4 | % | (7,349 | ) | -27.3 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 12,373 | 22.3 | % | 14,621 | 18.7 | % | (2,248 | ) | -15.4 | % | ||||||||||||||
Operating profit | 7,154 | 13.0 | % | 12,255 | 15.7 | % | (5,101 | ) | -41.6 | % | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Oilfield Services | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 32,133 | 100.0 | % | $ | 37,655 | 100.0 | % | $ | (5,522 | ) | -14.7 | % | |||||||||||
Cost of sales | 20,770 | 64.6 | % | 21,904 | 58.2 | % | (1,134 | ) | -5.2 | % | ||||||||||||||
Gross profit | 11,363 | 35.4 | % | 15,751 | 41.8 | % | (4,388 | ) | -27.9 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 6,913 | 21.5 | % | 7,003 | 18.6 | % | (90 | ) | -1.3 | % | ||||||||||||||
Operating profit | 4,450 | 13.9 | % | 8,748 | 23.2 | % | (4,298 | ) | -49.1 | % | ||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
Transportation | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 11,558 | 100.0 | % | $ | 16,883 | 100.0 | % | $ | (5,325 | ) | -31.5 | % | |||||||||||
Cost of sales | 10,212 | 88.4 | % | 15,194 | 90.0 | % | (4,982 | ) | -32.8 | % | ||||||||||||||
Gross profit | 1,346 | 11.6 | % | 1,689 | 10.0 | % | (343 | ) | -20.3 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 837 | 7.2 | % | 856 | 5.1 | % | (19 | ) | -2.2 | % | ||||||||||||||
Operating profit | 509 | 4.4 | % | 833 | 4.9 | % | (324 | ) | -38.9 | % |
Three Months Ended June 30, | ||||||||||||||||
Corporate | 2009 | 2008 | 2009 vs 2008 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Intersegment shipping sales | $ | (3,340 | ) | $ | (5,735 | ) | $ | 2,395 | ||||||||
Intersegment shipping costs | (3,340 | ) | (5,735 | ) | $ | 2,395 | ||||||||||
Gross profit | - | - | ||||||||||||||
General, selling and | ||||||||||||||||
administrative expenses | 4,116 | 6,905 | (2,789 | ) | -40.4 | % | ||||||||||
Operating loss | 4,116 | 6,905 | (2,789 | ) | -40.4 | % |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
YEAR-TO-DATE
Six Months Ended June 30, | ||||||||||||||||||||||||
Minerals | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 155,636 | 100.0 | % | $ | 206,347 | 100.0 | % | $ | (50,711 | ) | -24.6 | % | |||||||||||
Cost of sales | 124,542 | 80.0 | % | 171,326 | 83.0 | % | (46,784 | ) | -27.3 | % | ||||||||||||||
Gross profit | 31,094 | 20.0 | % | 35,021 | 17.0 | % | (3,927 | ) | -11.2 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 17,703 | 11.4 | % | 18,814 | 9.1 | % | (1,111 | ) | -5.9 | % | ||||||||||||||
Operating profit | 13,391 | 8.6 | % | 16,207 | 7.9 | % | (2,816 | ) | -17.4 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
Environmental | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 99,603 | 100.0 | % | $ | 136,260 | 100.0 | % | $ | (36,657 | ) | -26.9 | % | |||||||||||
Cost of sales | 65,977 | 66.2 | % | 89,963 | 66.0 | % | (23,986 | ) | -26.7 | % | ||||||||||||||
Gross profit | 33,626 | 33.8 | % | 46,297 | 34.0 | % | (12,671 | ) | -27.4 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 22,778 | 22.9 | % | 28,071 | 20.6 | % | (5,293 | ) | -18.9 | % | ||||||||||||||
Operating profit | 10,848 | 10.9 | % | 18,226 | 13.4 | % | (7,378 | ) | -40.5 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
Oilfield Services | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 64,031 | 100.0 | % | $ | 61,798 | 100.0 | % | $ | 2,233 | 3.6 | % | ||||||||||||
Cost of sales | 41,063 | 64.1 | % | 37,345 | 60.4 | % | 3,718 | 10.0 | % | |||||||||||||||
Gross profit | 22,968 | 35.9 | % | 24,453 | 39.6 | % | (1,485 | ) | -6.1 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 13,601 | 21.2 | % | 11,756 | 19.0 | % | 1,845 | 15.7 | % | |||||||||||||||
Operating profit | 9,367 | 14.7 | % | 12,697 | 20.6 | % | (3,330 | ) | -26.2 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
Transportation | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 22,849 | 100.0 | % | $ | 31,233 | 100.0 | % | $ | (8,384 | ) | -26.8 | % | |||||||||||
Cost of sales | 20,169 | 88.3 | % | 27,994 | 89.6 | % | (7,825 | ) | -28.0 | % | ||||||||||||||
Gross profit | 2,680 | 11.7 | % | 3,239 | 10.4 | % | (559 | ) | -17.3 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 1,690 | 7.4 | % | 1,626 | 5.2 | % | 64 | 3.9 | % | |||||||||||||||
Operating profit | 990 | 4.3 | % | 1,613 | 5.2 | % | (623 | ) | -38.6 | % |
Six Months Ended June 30, | ||||||||||||||||
Corporate | 2009 | 2008 | 2009 vs 2008 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Intersegment shipping sales | $ | (6,500 | ) | $ | (10,382 | ) | $ | 3,882 | ||||||||
Intersegment shipping costs | (6,500 | ) | (10,382 | ) | $ | 3,882 | ||||||||||
Gross profit | - | - | ||||||||||||||
General, selling and | ||||||||||||||||
administrative expenses | 10,649 | 12,580 | (1,931 | ) | -15.3 | % | ||||||||||
Operating loss | 10,649 | 12,580 | (1,931 | ) | -15.3 | % |
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
QUARTER-TO-DATE
Three Months Ended June 30, 2009 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 26.3 | % | 10.1 | % | 7.7 | % | 44.1 | % | ||||||||
Environmental | 15.7 | % | 14.3 | % | 2.3 | % | 32.3 | % | ||||||||
Oilfield services | 16.9 | % | 0.8 | % | 1.1 | % | 18.8 | % | ||||||||
Transportation | 4.8 | % | 0.0 | % | 0.0 | % | 4.8 | % | ||||||||
Total - current year's period | 63.7 | % | 25.2 | % | 11.1 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 67.1 | % | 23.3 | % | 9.6 | % | 100.0 | % |
Three Months Ended June 30, 2009 | ||||||||||||||||
vs. | ||||||||||||||||
Three Months Ended June 30, 2008 | ||||||||||||||||
Percentage of Revenue Growth by Component | Base Business | Acquisitions | Foreign Exchange | Total | ||||||||||||
Minerals | -11.5 | % | 0.0 | % | -2.0 | % | -13.5 | % | ||||||||
Environmental | -5.8 | % | 0.3 | % | -4.2 | % | -9.7 | % | ||||||||
Oilfield services | -3.9 | % | 1.7 | % | -0.2 | % | -2.4 | % | ||||||||
Transportation | -1.3 | % | 0.0 | % | 0.0 | % | -1.3 | % | ||||||||
Total | -22.5 | % | 2.0 | % | -6.4 | % | -26.9 | % | ||||||||
% of growth | 83.7 | % | -7.5 | % | 23.8 | % | 100.0 | % |
Three Months Ended June 30, | ||||||||||||
Minerals Product Line Sales | 2009 | 2008 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Metalcasting | $ | 30,954 | $ | 44,709 | -30.8 | % | ||||||
Specialty materials | 22,007 | 27,328 | -19.5 | % | ||||||||
Pet products | 15,355 | 19,179 | -19.9 | % | ||||||||
Basic minerals | 6,090 | 13,317 | -54.3 | % | ||||||||
Other product lines | 1,073 | 2,470 | * | |||||||||
Total | 75,479 | 107,003 |
* Not meaningful.
Three Months Ended June 30, | ||||||||||||
Environmental Product Line Sales | 2009 | 2008 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Lining technologies | $ | 34,670 | $ | 48,452 | -28.4 | % | ||||||
Building materials | 15,099 | 22,858 | -33.9 | % | ||||||||
Other product lines | 5,601 | 6,731 | * | |||||||||
Total | 55,370 | 78,041 |
* Not meaningful.
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
YEAR-TO-DATE
Six Months Ended June 30, 2009 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 29.9 | % | 9.4 | % | 7.1 | % | 46.4 | % | ||||||||
Environmental | 14.7 | % | 12.7 | % | 2.3 | % | 29.7 | % | ||||||||
Oilfield services | 17.5 | % | 0.6 | % | 1.0 | % | 19.1 | % | ||||||||
Transportation | 4.8 | % | 0.0 | % | 0.0 | % | 4.8 | % | ||||||||
Total - current year's period | 66.9 | % | 22.7 | % | 10.4 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 67.6 | % | 22.9 | % | 9.5 | % | 100.0 | % |
Six Months Ended June 30, 2009 | ||||||||||||||||
Vs. | ||||||||||||||||
Six Months Ended June 30, 2008 | ||||||||||||||||
Percentage of Revenue Growth by Component | Base Business | Acquisitions | Foreign Exchange | Total | ||||||||||||
Minerals | -9.2 | % | 0.0 | % | -2.7 | % | -11.9 | % | ||||||||
Environmental | -4.6 | % | 0.2 | % | -4.2 | % | -8.6 | % | ||||||||
Oilfield services | -1.2 | % | 1.8 | % | -0.1 | % | 0.5 | % | ||||||||
Transportation | -1.1 | % | 0.0 | % | 0.0 | % | -1.1 | % | ||||||||
Total | -16.1 | % | 2.0 | % | -7.0 | % | -21.1 | % | ||||||||
% of growth | 76.4 | % | -9.4 | % | 0.0 | % | 67.0 | % |
Six Months Ended June 30, | ||||||||||||
Minerals Product Line Sales | 2009 | 2008 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Metalcasting | $ | 62,495 | $ | 85,387 | -26.8 | % | ||||||
Specialty materials | 44,669 | 52,991 | -15.7 | % | ||||||||
Pet products | 32,770 | 38,702 | -15.3 | % | ||||||||
Basic minerals | 13,940 | 25,358 | -45.0 | % | ||||||||
Other product lines | 1,762 | 3,909 | * | |||||||||
Total | 155,636 | 206,347 |
* Not meaningful.
Six Months Ended June 30, | ||||||||||||
Environmental Product Line Sales | 2009 | 2008 | % change | |||||||||
(Dollars in Thousands) | ||||||||||||
Lining technologies | $ | 61,423 | $ | 80,947 | -24.1 | % | ||||||
Building materials | 27,477 | 42,853 | -35.9 | % | ||||||||
Other product lines | 10,703 | 12,460 | * | |||||||||
Total | 99,603 | 136,260 |
* Not meaningful.