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Don Pearson | |
Vice President & CFO | |
847.851.1500 |
AMCOL International Corporation (NYSE:ACO)
Reports Third Quarter Results
HOFFMAN ESTATES, IL., October 23, 2009—AMCOL International Corporation (NYSE:ACO) today reported 2009 third quarter net income attributable to AMCOL shareholders of $13.3 million, or $0.43 per diluted share, compared with $1.9 million, or $0.06 per diluted share, in the prior year period. The current year period includes a net expense of $1.6 million, or $0.05 per diluted share, related to the write off of certain U.S. metal casting operations. Without this expense, diluted earnings per share would have been $0.48 per share. The prior year period includes the effect of a one-time loss incurred on our investment in an affiliate of $16.7 million, or $0.54 per diluted share. Without this loss, the 2008 period’s diluted earnings per share would have been $0.60 per share.
Net sales decreased 24.6% to $190.9 million for the quarter ended September 30, 2009 from $253.0 million in the 2008 period. Foreign currency fluctuations had a $14.1 million unfavorable impact. Operating profit decreased by 29.7% over the 2008 third quarter to $19.2 million; foreign currency fluctuations had an unfavorable impact of $2.0 million on current period operating profit. Our affiliates and joint ventures generated income amounting to $0.02 per diluted share as compared to losses of $0.47 per share in the prior year period. Our reduced effective tax rate for the quarter added $0.03 per diluted share.
For the nine-month period ended September 30, 2009, net income attributable to AMCOL shareholders was $23.6 million, or $0.76 per diluted share, compared with $25.4 million, or $0.82 per diluted share in the prior year period, which includes a one-time loss of $0.63 per diluted share incurred on our investment in an affiliate.
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AMCOL Q3 2009 EARNINGS
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Net sales for the nine-month period ended September 30, 2009 decreased 22.4% to $526.5 million, compared with $678.3 million for the 2008 period. Foreign currency fluctuations had a $43.7 million unfavorable impact offset by $9.0 million in new revenue from acquisitions. Operating profit declined by 32.0% over the 2008 period to $43.2 million. Foreign currency fluctuations and acquisitions had unfavorable impacts of $5.7 million and $1.3 million, respectively, on current period operating profit. Our affiliates and joint ventures generated $0.9 million, or $0.03 per diluted share, of losses in the current year compared to losses of $14.1 million, or $0.45 per diluted share, in the prior year’s comparable period.
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.
“Although overall AMCOL revenue in the third quarter was still well behind the 2008 pace, there are some positive developments,” said Larry Washow, AMCOL President and Chief Executive Officer. “Gross margins continue to improve across all segments. We continue to reduce debt as our focus on the balance sheet is producing results.”
Washow continued, “The Minerals segment did show stronger U.S. sales sequentially over second quarter 2009, as the “cash for clunkers” program helped increase foundry activity. On a sequential quarter basis, our business in Asia is improving, and Europe, which has a significant consumer related business, had a good quarter as well.”
“The third quarter is typically the strongest for our Environmental segment and this year is no exception. Gross margins improved but the building materials business remains very soft around the world. Our Lining Tech products are used in several markets and while the U.S. is well below last years pace, Europe is having a good year,” Washow added.
“Third quarter 2008 was the best quarter ever for our Oilfield Services segment but this year’s results reflect the impact of lower oil and natural gas prices. Gross margins continue to be in line but project activity is slow and predicting a return to growth is very difficult,” Washow continued.”
“The sequential improvement in the Minerals segment is very encouraging and shows the result of our pricing approach as well as cost controls. There is more project activity in the Environmental segment, but customers are cautious about starting new projects. The Oilfield Services segment is very well positioned when the business returns. All of our segments are prepared for growth but our key focus continues to be on the balance sheet and we expect continuing improvement in Q4,” Washow concluded.
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AMCOL Q3 2009 EARNINGS
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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 third quarter compared to the prior year’s third quarter.
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. Pass-through freight revenue accounted for approximately 18.7% of the total segment’s decrease, principally from the pet products and basic minerals divisions. Foreign currency fluctuations represented approximately 16.7% of the decrease in revenue principally due to the weakening of the British pound against the U.S. dollar.
Environmental: Base business revenues decreased due to lower demand in the U.S. for our lining technology and building materials products and services provided by our contracting services group. Foreign currency fluctuations represented approximately 38.0% of the revenue decrease, primarily due to the weakening of the British pound and the Polish zloty against the U.S. dollar.
Oilfield Services: Lower demand for oil and natural gas has reduced production activities, driving the decrease in revenue in the current quarter compared to the prior year quarter. Domestic base business revenues declined across all services, compared to the prior year quarter.
International revenue was down substantially in Nigeria and the United Kingdom compared to the prior year quarter due to lower demand for our services. However, both Brazil and Malaysia continue to experience solid growth over the prior year quarter.
Transportation: Reductions in fuel-surcharge revenue represented 58.2% of the revenue decrease; the remaining decrease was due to reduced demand for consumer product shipments.
Gross profit: Gross profit decreased $9.7 million, or 15.3%, from the 2008 third quarter while gross margin was 28.2%, a 310 basis point improvement from the 2008 quarter.
Minerals: Gross profit decreased $0.9 million, or 4.3%, from the 2008 quarter while gross margins improved 450 basis points to 22.2%. The gross margin improvement results principally from domestic pricing initiatives put in place in 2008. The decrease in gross profit includes a net $2.0 million of write off expenses related to our domestic briquetting operations within our metalcasting group, due to reduced demand. These expenses negatively affected gross margins by 230 basis points but is offset by improvements in our product mix and other businesses.
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AMCOL Q3 2009 EARNINGS
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Environmental: Gross profit decreased $5.5 million, or 19.4%, from the 2008 quarter while gross margins increased 250 basis points to 35.5%; the margin increase is due to lower input costs, principally resin, and lower freight costs due to the reduction in energy costs. These benefits were partially offset by decreased volumes.
Oilfield Services: Gross profit decreased $3.0 million, or 23.6%, from the 2008 quarter due to the reduction in revenues.
Transportation: Gross profit decreased $0.3 million over the prior year quarter, and gross margin improved 190 basis points to 12.4% due to lower energy costs.
General, selling and administrative expenses (GS&A): GS&A expenses decreased $1.6 million, or 4.4%, from the prior year quarter, mainly due to a $1.5 million decrease in our Environmental segment’s GS&A expenses. This segment’s GS&A expenses decreased 11.3% largely due to the effect of foreign currency fluctuations resulting from a weakening of the British pound and Polish zloty against the U.S. dollar. GS&A expenses in other segments remained relatively constant in each segment.
Interest expense: Net interest expense decreased by $0.6 million over the prior year quarter due to reduced average debt levels.
Other, net: Other, net is primarily comprised of foreign currency exchange income and losses. Other, net favorably impacted results in the 2009 period by $0.1 million versus $2.1 million of losses in the prior year’s comparable period.
Income taxes: The effective tax rate for the third quarter of 2009 was 19.8%, compared with 25.5% for the same period in 2008. The reduction is due to a greater proportion of our income being generated in lower tax rate jurisdictions, principally foreign countries.
Income and losses from affiliates and joint ventures: Income from affiliates and joint ventures of $0.7 million is principally due to one of our Indian joint ventures, Ashapura Volclay and improvements in our Russian joint venture.
This compares to losses of $14.7 million in the prior year period, primarily incurred in our largest Indian investment, Ashapura Minechem Limited. This investment is accounted for under the equity method. At December 31, 2008, we wrote off the balance of our investment and accordingly have discontinued recording additional losses from this affiliate.
Share count: Weighted average common and common equivalent shares outstanding were comparable for the quarters ended September 30, 2009 and 2008, differing by less than 1%.
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AMCOL Q3 2009 EARNINGS
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FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:
Long-term debt decreased $39.7 million to $217.1 million at September 30, 2009, compared to $256.8 million at December 31, 2008. The reduction was primarily due to reductions in working capital levels and minimizing capital expenditures. Total long-term debt represented 38.4% of capitalization at September 30, 2009, compared with 43.9% at December 31, 2008. Cash and cash equivalents remained the same at $19.4 million at September 30, 2009 as compared with December 31, 2008.
Working capital decreased to $212.9 million at September 30, 2009 from $262.7 million at December 31, 2008. The reduction in working capital was due to a combination of lower sales volumes and continued efforts to reduce working capital.
Cash flow generated from operating activities was $90.6 million for year-to-date September 30, 2009 compared with $2.6 million in the prior year period. This increase was principally due to the decrease in working capital.
Excluding our corporate building (which was a sale-leaseback transaction) and $15.1 million of expenditures for our purchase of a 53% investment in a chrome mine in South Africa, capital expenditures in the 2009 period were $24.5 million compared with $29.7 million in the prior year period. The reduction in adjusted capital expenditures is due to our limiting capital expenditures to maintenance activities and minimal expansion projects in 2009.
Dividends declared year-to-date through September 30, 2009 increased by 9.1 % over the prior year period to $16.5 million. Our dividend rate has remained constant at $0.18 per share since the third quarter of 2008.
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 Q3 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 third quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website or by dialing 888.539.3679.
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Financial tables follow.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Nine Months Ended | Three Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 526,539 | $ | 678,304 | $ | 190,920 | $ | 253,048 | ||||||||
Cost of sales | 382,320 | 505,727 | 137,069 | 189,481 | ||||||||||||
Gross profit | 144,219 | 172,577 | 53,851 | 63,567 | ||||||||||||
General, selling and administrative expenses | 101,047 | 109,061 | 34,626 | 36,214 | ||||||||||||
Operating profit | 43,172 | 63,516 | 19,225 | 27,353 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (9,399 | ) | (8,642 | ) | (2,833 | ) | (3,404 | ) | ||||||||
Other, net | (2,595 | ) | (1,533 | ) | 119 | (2,128 | ) | |||||||||
(11,994 | ) | (10,175 | ) | (2,714 | ) | (5,532 | ) | |||||||||
Income before income taxes and income (loss) from affiliates and joint ventures | 31,178 | 53,341 | 16,511 | 21,821 | ||||||||||||
Income tax expense | 6,388 | 13,950 | 3,271 | 5,567 | ||||||||||||
Income before income (loss) from affiliates and joint ventures | 24,790 | 39,391 | 13,240 | 16,254 | ||||||||||||
Income (loss) from affiliates and joint ventures | (921 | ) | (14,072 | ) | 721 | (14,697 | ) | |||||||||
Net income | 23,869 | 25,319 | 13,961 | 1,557 | ||||||||||||
Net income (loss) attributable to the noncontrolling interest | 296 | (58 | ) | 661 | (365 | ) | ||||||||||
Net income (loss) attributable to AMCOL shareholders | $ | 23,573 | $ | 25,377 | $ | 13,300 | $ | 1,922 | ||||||||
Weighted average common shares outstanding | 30,735 | 30,405 | 30,766 | 30,540 | ||||||||||||
Weighted average common and common equivalent shares outstanding | 30,967 | 30,993 | 31,057 | 31,129 | ||||||||||||
Basic earnings per share attributable to AMCOL shareholders | $ | 0.77 | $ | 0.83 | $ | 0.43 | $ | 0.06 | ||||||||
Diluted earnings per share attributable to AMCOL shareholders | $ | 0.76 | $ | 0.82 | $ | 0.43 | $ | 0.06 | ||||||||
Dividends declared per share | $ | 0.54 | $ | 0.50 | $ | 0.18 | $ | 0.18 |
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, | December 31, | |||||||
ASSETS | 2009 | 2008 | ||||||
(unaudited) | * | |||||||
Current assets: | ||||||||
Cash and equivalents | $ | 19,367 | $ | 19,441 | ||||
Accounts receivable, net | 165,477 | 197,611 | ||||||
Inventories | 103,966 | 125,066 | ||||||
Prepaid expenses | 14,190 | 12,812 | ||||||
Deferred income taxes | 3,043 | 5,358 | ||||||
Income tax receivable | 6,791 | 3,490 | ||||||
Other | 232 | 7,409 | ||||||
Total current assets | 313,066 | 371,187 | ||||||
Investments in and advances to affiliates and joint ventures | 30,292 | 30,025 | ||||||
Property, plant, equipment, mineral rights and reserves: | ||||||||
Land and mineral rights | 56,356 | 17,186 | ||||||
Depreciable assets | 405,217 | 380,555 | ||||||
461,573 | 397,741 | |||||||
Less: accumulated depreciation and depletion | 229,387 | 206,398 | ||||||
232,186 | 191,343 | |||||||
Other assets: | ||||||||
Goodwill | 71,537 | 68,482 | ||||||
Intangible assets, net | 48,681 | 53,974 | ||||||
Deferred income taxes | 14,361 | 15,867 | ||||||
Other assets | 24,449 | 13,702 | ||||||
159,028 | 152,025 | |||||||
$ | 734,572 | $ | 744,580 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 47,116 | $ | 45,297 | ||||
Accrued liabilities | 53,080 | 63,197 | ||||||
Total current liabilities | 100,196 | 108,494 | ||||||
Long-term debt | 217,064 | 256,821 | ||||||
Pension liabilities | 24,920 | 22,939 | ||||||
Other liabilities | 44,650 | 27,971 | ||||||
69,570 | 50,910 | |||||||
Equity: | ||||||||
Common stock | 320 | 320 | ||||||
Additional paid in capital | 83,284 | 86,350 | ||||||
Retained earnings | 269,500 | 262,453 | ||||||
Accumulated other comprehensive income | 8,749 | (4,721 | ) | |||||
361,853 | 344,402 | |||||||
Less: | ||||||||
Treasury stock | (15,952 | ) | (18,196 | ) | ||||
Total AMCOL shareholder's equity | 345,901 | 326,206 | ||||||
Noncontrolling interest | 1,841 | 2,149 | ||||||
Total equity | 347,742 | 328,355 | ||||||
$ | 734,572 | $ | 744,580 |
* Condensed from audited financial statements.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Nine Months Ended | ||||||||
September 30, | ||||||||
2009 | 2008 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 23,869 | $ | 25,319 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by (used in) operating activities: | ||||||||
Depreciation, depletion, and amortization | 26,781 | 24,872 | ||||||
Undistributed (earnings) losses from affiliates and joint ventures | 1,412 | 14,866 | ||||||
Other non - cash charges | 7,611 | 2,409 | ||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
Decrease (Increase) in current assets | 35,096 | (86,237 | ) | |||||
Decrease (Increase) in noncurrent assets | (1,257 | ) | 496 | |||||
Increase (decrease) in current liabilities | (7,480 | ) | 20,116 | |||||
Increase (decrease) in noncurrent liabilities | 4,586 | 788 | ||||||
Net cash provided by (used in) operating activities | 90,618 | 2,629 | ||||||
Cash flow from investing activities: | ||||||||
Capital expenditures | (39,637 | ) | (29,686 | ) | ||||
Capital expenditures - corporate building | (9,651 | ) | (14,273 | ) | ||||
Proceeds from sale of depreciable assets - corporate building | 9,651 | - | ||||||
Acquisitions, net of cash | (522 | ) | (42,549 | ) | ||||
Investments in and advances to affiliates and joint ventures | (2,647 | ) | (10,993 | ) | ||||
Receipts from (advances to) Chrome Corp | 6,000 | (6,000 | ) | |||||
Other | 2,906 | (2,193 | ) | |||||
Net cash used in investing activities | (33,900 | ) | (105,694 | ) | ||||
Cash flow from financing activities: | ||||||||
Net change in outstanding debt | (42,467 | ) | 105,495 | |||||
Net change in outstanding debt - corporate building | - | 20,692 | ||||||
Proceeds from sales of treasury stock | 1,005 | 1,550 | ||||||
Purchases of treasury stock | (165 | ) | (2,062 | ) | ||||
Dividends | (16,526 | ) | (15,143 | ) | ||||
Excess tax benefits from stock-based compensation | 464 | 1,087 | ||||||
Net cash provided by (used in) financing activities | (57,689 | ) | 111,619 | |||||
Effect of foreign currency rate changes on cash | 897 | (190 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (74 | ) | 8,364 | |||||
Cash and cash equivalents at beginning of period | 19,441 | 25,282 | ||||||
Cash and cash equivalents at end of period | $ | 19,367 | $ | 33,646 |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
QUARTER-TO-DATE
Three Months Ended September 30, | ||||||||||||||||||||||||
Minerals | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 89,021 | 100.0 | % | $ | 116,881 | 100.0 | % | $ | (27,860 | ) | -23.8 | % | |||||||||||
Cost of sales | 69,232 | 77.8 | % | 96,206 | 82.3 | % | (26,974 | ) | -28.0 | % | ||||||||||||||
Gross profit | 19,789 | 22.2 | % | 20,675 | 17.7 | % | (886 | ) | -4.3 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 9,317 | 10.5 | % | 9,565 | 8.2 | % | (248 | ) | -2.6 | % | ||||||||||||||
Operating profit | 10,472 | 11.7 | % | 11,110 | 9.5 | % | (638 | ) | -5.7 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
Environmental | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 64,493 | 100.0 | % | $ | 86,133 | 100.0 | % | $ | (21,640 | ) | -25.1 | % | |||||||||||
Cost of sales | 41,603 | 64.5 | % | 57,731 | 67.0 | % | (16,128 | ) | -27.9 | % | ||||||||||||||
Gross profit | 22,890 | 35.5 | % | 28,402 | 33.0 | % | (5,512 | ) | -19.4 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 12,135 | 18.8 | % | 13,683 | 15.9 | % | (1,548 | ) | -11.3 | % | ||||||||||||||
Operating profit | 10,755 | 16.7 | % | 14,719 | 17.1 | % | (3,964 | ) | -26.9 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
Oilfield Services | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 29,109 | 100.0 | % | $ | 38,379 | 100.0 | % | $ | (9,270 | ) | -24.2 | % | |||||||||||
Cost of sales | 19,491 | 67.0 | % | 25,785 | 67.2 | % | (6,294 | ) | -24.4 | % | ||||||||||||||
Gross profit | 9,618 | 33.0 | % | 12,594 | 32.8 | % | (2,976 | ) | -23.6 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 6,522 | 22.4 | % | 6,400 | 16.7 | % | 122 | 1.9 | % | |||||||||||||||
Operating profit | 3,096 | 10.6 | % | 6,194 | 16.1 | % | (3,098 | ) | -50.0 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||
Transportation | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 12,487 | 100.0 | % | $ | 17,983 | 100.0 | % | $ | (5,496 | ) | -30.6 | % | |||||||||||
Cost of sales | 10,933 | 87.6 | % | 16,087 | 89.5 | % | (5,154 | ) | -32.0 | % | ||||||||||||||
Gross profit | 1,554 | 12.4 | % | 1,896 | 10.5 | % | (342 | ) | -18.0 | % | ||||||||||||||
General, selling and | ||||||||||||||||||||||||
administrative expenses | 861 | 6.9 | % | 938 | 5.2 | % | (77 | ) | -8.2 | % | ||||||||||||||
Operating profit | 693 | 5.5 | % | 958 | 5.3 | % | (265 | ) | -27.7 | % |
Three Months Ended September 30, | ||||||||||||||||
Corporate | 2009 | 2008 | 2009 vs 2008 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Intersegment shipping sales | $ | (4,190 | ) | $ | (6,328 | ) | $ | 2,138 | ||||||||
Intersegment shipping costs | (4,190 | ) | (6,328 | ) | $ | 2,138 | ||||||||||
Gross profit | - | - | ||||||||||||||
General, selling and | ||||||||||||||||
administrative expenses | 5,791 | 5,628 | 163 | 2.9 | % | |||||||||||
Operating loss | 5,791 | 5,628 | 163 | 2.9 | % |
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
YEAR-TO-DATE
Nine Months Ended September 30, | ||||||||||||||||||||||||
Minerals | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 244,657 | 100.0 | % | $ | 323,228 | 100.0 | % | $ | (78,571 | ) | -24.3 | % | |||||||||||
Cost of sales | 193,774 | 79.2 | % | 267,532 | 82.8 | % | (73,758 | ) | -27.6 | % | ||||||||||||||
Gross profit | 50,883 | 20.8 | % | 55,696 | 17.2 | % | (4,813 | ) | -8.6 | % | ||||||||||||||
General, selling and administrative expenses | 27,020 | 11.0 | % | 28,379 | 8.8 | % | (1,359 | ) | -4.8 | % | ||||||||||||||
Operating profit | 23,863 | 9.8 | % | 27,317 | 8.4 | % | (3,454 | ) | -12.6 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
Environmental | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 164,096 | 100.0 | % | $ | 222,393 | 100.0 | % | $ | (58,297 | ) | -26.2 | % | |||||||||||
Cost of sales | 107,580 | 65.6 | % | 147,694 | 66.4 | % | (40,114 | ) | -27.2 | % | ||||||||||||||
Gross profit | 56,516 | 34.4 | % | 74,699 | 33.6 | % | (18,183 | ) | -24.3 | % | ||||||||||||||
General, selling and administrative expenses | 34,913 | 21.3 | % | 41,754 | 18.8 | % | (6,841 | ) | -16.4 | % | ||||||||||||||
Operating profit | 21,603 | 13.1 | % | 32,945 | 14.8 | % | (11,342 | ) | -34.4 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
Oilfield Services | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 93,140 | 100.0 | % | $ | 100,177 | 100.0 | % | $ | (7,037 | ) | -7.0 | % | |||||||||||
Cost of sales | 60,554 | 65.0 | % | 63,130 | 63.0 | % | (2,576 | ) | -4.1 | % | ||||||||||||||
Gross profit | 32,586 | 35.0 | % | 37,047 | 37.0 | % | (4,461 | ) | -12.0 | % | ||||||||||||||
General, selling and administrative expenses | 20,123 | 21.6 | % | 18,156 | 18.1 | % | 1,967 | 10.8 | % | |||||||||||||||
Operating profit | 12,463 | 13.4 | % | 18,891 | 18.9 | % | (6,428 | ) | -34.0 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
Transportation | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Net sales | $ | 35,336 | 100.0 | % | $ | 49,216 | 100.0 | % | $ | (13,880 | ) | -28.2 | % | |||||||||||
Cost of sales | 31,102 | 88.0 | % | 44,081 | 89.6 | % | (12,979 | ) | -29.4 | % | ||||||||||||||
Gross profit | 4,234 | 12.0 | % | 5,135 | 10.4 | % | (901 | ) | -17.5 | % | ||||||||||||||
General, selling and administrative expenses | 2,551 | 7.2 | % | 2,564 | 5.2 | % | (13 | ) | -0.5 | % | ||||||||||||||
Operating profit | 1,683 | 4.8 | % | 2,571 | 5.2 | % | (888 | ) | -34.5 | % | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
Corporate | 2009 | 2008 | 2009 vs 2008 | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Intersegment shipping sales | $ | (10,690 | ) | $ | (16,710 | ) | $ | 6,020 | ||||||||||||||||
Intersegment shipping costs | (10,690 | ) | (16,710 | ) | $ | 6,020 | ||||||||||||||||||
Gross profit | - | - | ||||||||||||||||||||||
General, selling and administrative expenses | 16,440 | 18,208 | (1,768 | ) | -9.7 | % | ||||||||||||||||||
Operating loss | 16,440 | 18,208 | (1,768 | ) | -9.7 | % |
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
QUARTER-TO-DATE
Three Months Ended September 30, 2009 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 29.0 | % | 9.7 | % | 8.0 | % | 46.7 | % | ||||||||
Environmental | 17.0 | % | 15.0 | % | 1.8 | % | 33.8 | % | ||||||||
Oilfield services | 13.7 | % | 0.4 | % | 1.1 | % | 15.2 | % | ||||||||
Transportation | 4.3 | % | 0.0 | % | 0.0 | % | 4.3 | % | ||||||||
Total - current year's period | 64.0 | % | 25.1 | % | 10.9 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 66.9 | % | 23.4 | % | 9.7 | % | 100.0 | % | ||||||||
Three Months Ended September 30, 2009 | ||||||||||||||||
vs. | ||||||||||||||||
Percentage of Revenue Growth by Component | Three Months Ended September 30, 2008 | |||||||||||||||
Base Business | Acquisitions | Foreign Exchange | Total | |||||||||||||
Minerals | -9.2 | % | 0.0 | % | -1.8 | % | -11.0 | % | ||||||||
Environmental | -5.6 | % | 0.2 | % | -3.2 | % | -8.6 | % | ||||||||
Oilfield services | -3.2 | % | 0.0 | % | -0.5 | % | -3.7 | % | ||||||||
Transportation | -1.3 | % | 0.0 | % | 0.0 | % | -1.3 | % | ||||||||
Total | -19.3 | % | 0.2 | % | -5.5 | % | -24.6 | % | ||||||||
% of change | 78.2 | % | -0.9 | % | 22.7 | % | 100.0 | % | ||||||||
Three Months Ended September 30, | ||||||||||||||||
2009 | 2008 | % change | ||||||||||||||
Minerals Product Line Sales | (Dollars in Thousands) | |||||||||||||||
Metalcasting | $ | 38,097 | $ | 46,392 | -17.9 | % | ||||||||||
Specialty materials | 26,661 | 29,033 | -8.2 | % | ||||||||||||
Pet products | 16,959 | 19,559 | -13.3 | % | ||||||||||||
Basic minerals | 6,348 | 19,471 | -67.4 | % | ||||||||||||
Other product lines | 956 | 2,426 | * | |||||||||||||
Total | 89,021 | 116,881 | ||||||||||||||
* Not meaningful. | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
Environmental Product Line Sales | 2009 | 2008 | % change | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Lining technologies | $ | 44,727 | $ | 57,320 | -22.0 | % | ||||||||||
Building materials | 14,227 | 22,237 | -36.0 | % | ||||||||||||
Other product lines | 5,539 | 6,576 | * | |||||||||||||
Total | 64,493 | 86,133 | ||||||||||||||
* Not meaningful. |
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
YEAR-TO-DATE
Nine Months Ended September 30, 2009 | ||||||||||||||||
Composition of Sales by Geographic Region | Americas | EMEA | Asia Pacific | Total | ||||||||||||
Minerals | 29.6 | % | 9.5 | % | 7.4 | % | 46.5 | % | ||||||||
Environmental | 15.6 | % | 13.5 | % | 2.1 | % | 31.2 | % | ||||||||
Oilfield services | 16.1 | % | 0.5 | % | 1.1 | % | 17.7 | % | ||||||||
Transportation | 4.6 | % | 0.0 | % | 0.0 | % | 4.6 | % | ||||||||
Total - current year's period | 65.9 | % | 23.5 | % | 10.6 | % | 100.0 | % | ||||||||
Total from prior year's comparable period | 67.3 | % | 23.1 | % | 9.6 | % | 100.0 | % | ||||||||
Nine Months Ended September 30, 2009 | ||||||||||||||||
vs. | ||||||||||||||||
Percentage of Revenue Growth by Component | Nine Months Ended September 30, 2008 | |||||||||||||||
Base Business | Acquisitions | Foreign Exchange | Total | |||||||||||||
Minerals | -9.2 | % | 0.0 | % | -2.4 | % | -11.6 | % | ||||||||
Environmental | -5.0 | % | 0.2 | % | -3.8 | % | -8.6 | % | ||||||||
Oilfield services | -1.8 | % | 1.1 | % | -0.3 | % | -1.0 | % | ||||||||
Transportation | -1.2 | % | 0.0 | % | 0.0 | % | -1.2 | % | ||||||||
Total | -17.2 | % | 1.3 | % | -6.5 | % | -22.4 | % | ||||||||
% of change | 77.1 | % | -5.9 | % | 28.8 | % | 100.0 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||
Minerals Product Line Sales | 2009 | 2008 | % change | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Metalcasting | $ | 100,592 | $ | 134,118 | -25.0 | % | ||||||||||
Specialty materials | 71,330 | 77,239 | -7.7 | % | ||||||||||||
Pet products | 49,729 | 58,261 | -14.6 | % | ||||||||||||
Basic minerals | 20,288 | 47,275 | -57.1 | % | ||||||||||||
Other product lines | 2,718 | 6,335 | * | |||||||||||||
Total | 244,657 | 323,228 | ||||||||||||||
* Not meaningful. | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
Environmental Product Line Sales | 2009 | 2008 | % change | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Lining technologies | $ | 106,150 | $ | 138,267 | -23.2 | % | ||||||||||
Building materials | 41,704 | 65,090 | -35.9 | % | ||||||||||||
Other product lines | 16,242 | 19,036 | * | |||||||||||||
Total | 164,096 | 222,393 | ||||||||||||||
* Not meaningful. |