| For further information, contact: | Don Pearson |
| | Vice President & CFO |
| | 847.851.1500 |
AMCOL International Corporation (NYSE:ACO)
Reports Fourth Quarter and 2009 Year End Results
HOFFMAN ESTATES, IL., January 22, 2010 — AMCOL International Corporation (NYSE:ACO) today reported 2009 fourth quarter net income attributable to AMCOL shareholders of $0.36 per diluted share as compared to break even results per diluted share in the prior year’s period. The 2009 results include benefits of $0.05 per diluted share for resolution of certain income tax matters and gains on the sale of a portion of our investment in Ashapura Minechem Limited (AML). The 2008 results include expenses of $0.28 per diluted share for losses on derivative instruments held by AML as well as losses on our derivative instrument used to hedge the purchase price of our South African chrome mine.
Net sales decreased 13.9% to $176.7 million for the quarter ended December 31, 2009 from $205.2 million in the 2008 period. Operating profit decreased by 34.4% over the 2008 fourth quarter to $10.3 million. Foreign currency fluctuations did not have a material impact on our results for the quarter.
Our affiliates and joint ventures generated quarterly income amounting to $0.03 per diluted share as compared to losses of $0.25 per diluted share in the prior year period.
For the twelve-month period ended December 31, 2009, net income attributable to AMCOL shareholders was $1.12 per diluted share versus $0.82 per diluted share in the prior year. Similar to the 2008 quarterly results discussed above, the 2008 annual results include expenses of $0.89 per diluted share for the same losses from AML and South African chrome mine derivatives.
Net sales for the twelve-month period ended December 31, 2009 decreased 20.4% to $703.2 million, compared with $883.6 million for the 2008 period. Foreign currency fluctuations had a $42.5 million unfavorable impact offset by $9.6 million in new revenue from acquisitions. Operating profit declined by 32.5% over the 2008 period to $53.5 million. Foreign currency fluctuations and acquisitions had unfavorable impacts of $5.1 million and $1.4 million, respectively, on current year operating profit.
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AMCOL Q4 2009 EARNINGS
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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.
“The fourth quarter is usually very challenging and 2009 was no exception. While we are pleased with the results overall and see continuing progress in most segments, Oilfield Services had a very difficult quarter,” said Larry Washow, AMCOL President and Chief Executive Officer. “We continued to improve our balance sheet through better working capital utilization and debt reduction.”
Washow continued, “The Minerals segment finished the year with some positive momentum. Even though revenue is down 14% from the prior year period, gross margins are about the same. The U.S. foundry market continued to slowly recover and overall business levels in Asia and Europe have improved.”
“The Environmental segment revenue was down more than 10% from the same quarter last year but better gross margins helped bring the operating profit almost to the 2008 levels. Europe was the key positive factor in the quarter. We still do not foresee a significant rebound in commercial construction,” Washow added.
“Demand for our Oilfield Services has not yet recovered. The late season hurricane took out nearly a week of activity as the Gulf of Mexico was evacuated. Most customers approached year end very cautiously as there is still a great deal of uncertainty about future oil and natural gas pricing. Long term, we are comfortable that demand will rebound for the range of services we have to offer,” Washow continued.
“We are encouraged about the improvement in our balance sheet this year and look to continue to manage it well as the business levels start to recover. Including our South African chrome project, we have some exciting new business coming on line later this year. If the global economic environment improves, we are well positioned in all of our segments to return to growth in 2010,” 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 fourth quarter as compared to the prior year’s fourth quarter.
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AMCOL Q4 2009 EARNINGS
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Minerals: The majority of the decrease in the quarter’s revenue was due to lower volumes in the U.S. metalcasting and basic minerals product lines, partially offset by volume recoveries in Europe and Asia. Pass-through freight revenue accounted for approximately 40.3% of the decrease, principally from the pet products division. Foreign currency did not have a material impact on revenues in the quarter.
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. This decrease was partially offset by improvements in Europe and the Middle East.
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. Overall base business revenues declined in all geographies except Australia.
Transportation: Reductions in fuel-surcharge revenue represented 35% of the revenue decrease; the remaining decrease was due to reduced demand for consumer product shipments.
Gross profit: Gross profit decreased $8.4 million, or 16.0%, from the 2008 fourth quarter while gross margin declined 60 basis points.
Minerals: Gross profit decreased $3.6 million, or 14.9%, from the 2008 quarter while gross margin reduced 30 basis points to 22.7%, principally due to lower volumes.
Environmental: Gross profit decreased $1.1 million, or 6.5%, from the 2008 quarter while gross margins increased 130 basis points to 31.3%. The improvement in gross margin 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 and gross margin decreased $3.3 million, or 35.2%, and 530 basis points from the 2008 quarter due to the reduction in revenues, particularly on higher margin products.
General, selling and administrative expenses (GS&A): GS&A expenses decreased $2.9 million, or 8.0% from the prior year quarter. All segments had reductions in GS&A expenses except Oilfield Services, principally due to lower personnel related, bad debt and consulting expenses. Oilfield Services expense was higher, principally due to increased R&D spending and IT expenses.
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AMCOL Q4 2009 EARNINGS
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Other, net: Other, net includes foreign currency exchange income and losses, and other gains and losses. The $5.1 million improvement, is primarily due to foreign currency exchange losses of $3.8 million in the prior year quarter compared to a $0.6 million gain in the current quarter. The current period also includes a $0.7 million gain on the sale of a portion of our investment in AML, one of our Indian investments.
Income taxes: Our 2009 fourth quarter results include an income tax benefit of $0.9 million versus an expense of $1.2 million in the prior year period. The benefit arises from certain adjustments related to the completion of an IRS audit. Excluding the benefit, the comparable effective annual tax rates are 16.2% for 2009 and 24.5% for 2008, reflecting an improvement arising from a greater proportion of our income being generated in lower tax rate jurisdictions, principally foreign countries, as well as an increase in certain tax benefits in our domestic operations.
Income and losses from affiliates and joint ventures: Excluding the $8.1 million loss from our investment in AML in the 2008 quarter, income from affiliates and joint ventures improved $0.6 million to $1.0 million as these investments, similar to our wholly owned foreign subsidiaries in the mineral business, have seen a slight improvement in general economic conditions.
Share count: The difference in our weighted average common and common equivalent shares outstanding for the quarters ended December 31, 2009 and 2008 did not impact EPS.
FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:
Long-term debt decreased $49.8 million to $207 million at December 31, 2009, compared to $256.8 million at December 31, 2008. The reduction was primarily due to our decreasing working capital levels and minimizing capital expenditures. Total long-term debt represented 35% of capitalization at December 31, 2009, compared with 44% at December 31, 2008. Cash and cash equivalents increased $8.2 million to $27.7 million at December 31, 2009, compared to December 31, 2008. As a result of our sale of a portion of our investment in Ashapura, we are now accounting for this investment as an available for sale security with changes in fair value being reflected in other comprehensive income; as a result, we recorded this investment at its fair value at December 31, 2009 of $25.6 million.
Net non-cash working capital decreased $66.9 million from December 31, 2008 to $176.3 million at December 31, 2009. The reduction in working capital was due to a combination of lower sales volumes and continued efforts to reduce working capital.
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AMCOL Q4 2009 EARNINGS
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Cash flow generated from operating activities was $122.4 million for year-to-date December 31, 2009 compared with $18.4 million in the prior year period. This increase was principally due to the decrease in working capital.
Adjusting for our corporate building (which was a sale-leaseback transaction) and $15.1 million of expenditures for our investment in a chrome mine in South Africa, capital expenditures in the 2009 period were $35.6 million compared with $44.1 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 December 31, 2009 increased by 6.9% over the prior year period to $22.1 million. Our dividend rate has remained constant at $0.18 per quarter per share since the fourth 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.
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 fourth quarter conference call will be available live today at 11 a.m. EST on the AMCOL website or by dialing 1.800.967.7149.
Financial tables follow.
AMCOL Q4 2009 EARNINGS
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| AMCOL INTERNATIONAL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited) |
| (In thousands, except per share data) |
| | | | Twelve Months Ended | | | Three Months Ended | |
| | | | December 31, | | | December 31, | |
| | | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | | |
| | Net sales | | $ | 703,237 | | | $ | 883,552 | | | $ | 176,698 | | | $ | 205,248 | |
| | Cost of sales | | | 515,049 | | | | 658,653 | | | | 132,729 | | | | 152,926 | |
| | Gross profit | | | 188,188 | | | | 224,899 | | | | 43,969 | | | | 52,322 | |
| | General, selling and administrative expenses | | | 134,702 | | | | 145,653 | | | | 33,655 | | | | 36,592 | |
| | Operating profit | | | 53,486 | | | | 79,246 | | | | 10,314 | | | | 15,730 | |
| | Other income (expense): | | | | | | | | | | | | | | | | |
| | Interest expense, net | | | (12,125 | ) | | | (12,154 | ) | | | (2,726 | ) | | | (3,512 | ) |
| | Other, net | | | (1,095 | ) | | | (5,149 | ) | | | 1,500 | | | | (3,616 | ) |
| | | | | (13,220 | ) | | | (17,303 | ) | | | (1,226 | ) | | | (7,128 | ) |
| | Income before income taxes and income (loss) from affiliates and joint ventures | | | 40,266 | | | | 61,943 | | | | 9,088 | | | | 8,602 | |
| | Income tax expense (benefit) | | | 5,510 | | | | 15,167 | | | | (878 | ) | | | 1,217 | |
| | Income before income (loss) from affiliates and joint ventures | | | 34,756 | | | | 46,776 | | | | 9,966 | | | | 7,385 | |
| | | | | | | | | | | | | | | | | | |
| | Income (loss) from affiliates and joint ventures | | | 115 | | | | (21,714 | ) | | | 1,036 | | | | (7,642 | ) |
| | | | | | | | | | | | | | | | | | |
| | Net income (loss) | | | 34,871 | | | | 25,062 | | | | 11,002 | | | | (257 | ) |
| | | | | | | | | | | | | | | | | | |
| | Net income (loss) attributable to the noncontrolling interest | | | 72 | | | | (269 | ) | | | (224 | ) | | | (211 | ) |
| | | | | | | | | | | | | | | | | | |
| | Net income (loss) attributable to AMCOL shareholders | | $ | 34,799 | | | $ | 25,331 | | | $ | 11,226 | | | $ | (46 | ) |
| | | | | | | | | | | | | | | | | | |
| | Weighted average common shares outstanding | | | 30,764 | | | | 30,446 | | | | 30,851 | | | | 30,568 | |
| | | | | | | | | | | | | | | | | | |
| | Weighted average common and common equivalent shares outstanding | | | 31,034 | | | | 30,990 | | | | 31,266 | | | | 30,963 | |
| | | | | | | | | | | | | | | | | | |
| | Basic earnings per share attributable to AMCOL shareholders | | $ | 1.13 | | | $ | 0.83 | | | $ | 0.36 | | | $ | (0.00 | ) |
| | | | | | | | | | | | | | | | | | |
| | Diluted earnings per share attributable to AMCOL shareholders | | $ | 1.12 | | | $ | 0.82 | | | $ | 0.36 | | | $ | (0.00 | ) |
| | | | | | | | | | | | | | | | | | |
| | Dividends declared per share | | $ | 0.72 | | | $ | 0.68 | | | $ | 0.18 | | | $ | 0.18 | |
AMCOL Q4 2009 EARNINGS
Page 7 of 12
| AMCOL INTERNATIONAL CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| | ASSETS | | December 31, 2009 | | | | |
| | Current assets: | | | | | | |
| | Cash and equivalents | | $ | 27,669 | | | $ | 19,441 | |
| | Accounts receivable, net | | | 148,260 | | | | 197,611 | |
| | Inventories | | | 96,173 | | | | 125,066 | |
| | Prepaid expenses | | | 12,509 | | | | 12,812 | |
| | Deferred income taxes | | | 6,783 | | | | 5,358 | |
| | Income tax receivable | | | 2,431 | | | | 3,490 | |
| | Other | | | 463 | | | | 7,409 | |
| | | | | | | | | | |
| | Total current assets | | | 294,288 | | | | 371,187 | |
| | | | | | | | | | |
| | Investments in and advances to affiliates and joint ventures | | | 32,228 | | | | 30,025 | |
| | | | | | | | | | |
| | Property, plant, equipment, mineral rights and reserves: | | | | | | | | |
| | | | | | | | | | |
| | Land and mineral rights | | | 57,898 | | | | 17,186 | |
| | Depreciable assets | | | 414,617 | | | | 380,555 | |
| | | | | | | | | | |
| | | | | 472,515 | | | | 397,741 | |
| | Less: accumulated depreciation and depletion | | | 236,269 | | | | 206,398 | |
| | | | | | | | | | |
| | | | | 236,246 | | | | 191,343 | |
| | Other assets: | | | | | | | | |
| | Goodwill | | | 71,156 | | | | 68,482 | |
| | Intangible assets, net | | | 47,185 | | | | 53,974 | |
| | Available for sale securities | | | 25,563 | | | | - | |
| | Deferred income taxes | | | 7,396 | | | | 15,867 | |
| | Other assets | | | 25,339 | | | | 13,702 | |
| | | | | | | | | | |
| | | | | 176,639 | | | | 152,025 | |
| | | | $ | 739,401 | | | $ | 744,580 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | | |
| | Current liabilities: | | | | | | | | |
| | Accounts payable | | $ | 40,335 | | | $ | 45,297 | |
| | Accrued liabilities | | | 49,981 | | | | 63,197 | |
| | | | | | | | | | |
| | Total current liabilities | | | 90,316 | | | | 108,494 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Long-term debt | | | 207,017 | | | | 256,821 | |
| | Total long-term debt | | | 207,017 | | | | 256,821 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Pension liabilities | | | 20,403 | | | | 22,939 | |
| | Deferred compensation | | | 7,544 | | | | 5,904 | |
| | Other liabilities | | | 29,208 | | | | 22,067 | |
| | | | | | | | | | |
| | | | | 57,155 | | | | 50,910 | |
| | Equity: | | | | | | | | |
| | Common stock | | | 320 | | | | 320 | |
| | Additional paid in capital | | | 84,830 | | | | 86,350 | |
| | Retained earnings | | | 275,200 | | | | 262,453 | |
| | Accumulated other comprehensive income (loss) | | | 37,315 | | | | (4,721 | ) |
| | | | | | | | | | |
| | | | | 397,665 | | | | 344,402 | |
| | Less: | | | | | | | | |
| | Treasury stock | | | 14,377 | | | | 18,196 | |
| | | | | | | | | | |
| | Total AMCOL shareholder's equity | | | 383,288 | | | | 326,206 | |
| | | | | | | | | | |
| | Noncontrolling interest | | | 1,625 | | | | 2,149 | |
| | | | | | | | | | |
| | Total equity | | | 384,913 | | | | 328,355 | |
| | | | $ | 739,401 | | | $ | 744,580 | |
| | | | | | | | | | |
* Condensed from audited financial statements.
AMCOL Q4 2009 EARNINGS
Page 8 of 12
| AMCOL INTERNATIONAL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
| (In thousands) |
| | | | Twelve Months Ended | |
| | | | December 31, | |
| | | | 2009 | | | 2008 | |
| | Cash flow from operating activities: | | | | | | |
| | Net income | | $ | 34,871 | | | $ | 25,062 | |
| | Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | | |
| | Depreciation, depletion, and amortization | | | 35,906 | | | | 33,985 | |
| | Undistributed earnings from affiliates and joint ventures | | | 691 | | | | 22,795 | |
| | Deferred income taxes | | | 3,690 | | | | (2,793 | ) |
| | Other | | | 3,312 | | | | 4,487 | |
| | Changes in assets and liabilities, net of effects of acquisitions: | | | | | | | | |
| | Decrease (increase) in current assets | | | 65,715 | | | | (64,455 | ) |
| | Decrease (increase) in noncurrent assets | | | (7,590 | ) | | | 3,600 | |
| | Increase (decrease) in current liabilities | | | (12,519 | ) | | | (2,799 | ) |
| | Increase (decrease) in noncurrent liabilities | | | (1,709 | ) | | | (1,495 | ) |
| | Net cash provided by (used in) operating activities | | | 122,367 | | | | 18,387 | |
| | | | | | | | | | |
| | Cash flow from investing activities: | | | | | | | | |
| | Capital expenditures | | | (50,767 | ) | | | (44,068 | ) |
| | Capital expenditures - corporate building | | | (9,651 | ) | | | (16,672 | ) |
| | Proceeds from sale - corporate building | | | 9,651 | | | | 22,487 | |
| | Proceeds from sale of land and depreciable assets | | | 2,988 | | | | 672 | |
| | Acquisitions, net of cash | | | (650 | ) | | | (42,769 | ) |
| | Investments in and advances to affiliates and joint ventures | | | (1,387 | ) | | | (14,067 | ) |
| | Advances to non - affiliates | | | 6,000 | | | | (6,000 | ) |
| | Other | | | (216 | ) | | | (201 | ) |
| | Net cash used in investing activities | | | (44,032 | ) | | | (100,618 | ) |
| | | | | | | | | | |
| | Cash flow from financing activities: | | | | | | | | |
| | Net change in outstanding debt | | | (52,347 | ) | | | 98,532 | |
| | Proceeds from sales of treasury stock | | | 2,666 | | | | 1,608 | |
| | Purchases of treasury stock | | | (166 | ) | | | (2,062 | ) |
| | Dividends | | | (22,052 | ) | | | (20,619 | ) |
| | Excess tax benefits from stock-based compensation | | | 639 | | | | 1,188 | |
| | Net cash provided by (used in) financing activities | | | (71,260 | ) | | | 78,647 | |
| | | | | | | | | | |
| | Effect of foreign currency rate changes on cash | | | 1,153 | | | | (2,257 | ) |
| | Net increase (decrease) in cash and cash equivalents | | | 8,228 | | | | (5,841 | ) |
| | Cash and cash equivalents at beginning of period | | | 19,441 | | | | 25,282 | |
| | Cash and cash equivalents at end of period | | $ | 27,669 | | | $ | 19,441 | |
| | | | | | | | | | |
AMCOL Q4 2009 EARNINGS
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| AMCOL INTERNATIONAL CORPORATION |
| SEGMENT RESULTS (unaudited) |
| QUARTER-TO-DATE |
| | | | Three Months Ended December 31, | |
| | Minerals | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 91,515 | | | | 100.0 | % | | $ | 105,758 | | | | 100.0 | % | | $ | (14,243 | ) | | | -13.5 | % |
| | Cost of sales | | | 70,771 | | | | 77.3 | % | | | 81,396 | | | | 77.0 | % | | | (10,625 | ) | | | -13.1 | % |
| | Gross profit | | | 20,744 | | | | 22.7 | % | | | 24,362 | | | | 23.0 | % | | | (3,618 | ) | | | -14.9 | % |
| | General, selling and administrative expenses | | | 9,818 | | | | 10.7 | % | | | 11,200 | | | | 10.6 | % | | | (1,382 | ) | | | -12.3 | % |
| | Operating profit | | | 10,926 | | | | 12.0 | % | | | 13,162 | | | | 12.4 | % | | | (2,236 | ) | | | -17.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended December 31, | |
| | Environmental | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 50,508 | | | | 100.0 | % | | $ | 56,315 | | | | 100.0 | % | | $ | (5,807 | ) | | | -10.3 | % |
| | Cost of sales | | | 34,711 | | | | 68.7 | % | | | 39,415 | | | | 70.0 | % | | | (4,704 | ) | | | -11.9 | % |
| | Gross profit | | | 15,797 | | | | 31.3 | % | | | 16,900 | | | | 30.0 | % | | | (1,103 | ) | | | -6.5 | % |
| | General, selling and administrative expense | | | 11,701 | | | | 23.2 | % | | | 12,776 | | | | 22.7 | % | | | (1,075 | ) | | | -8.4 | % |
| | Operating profit | | | 4,096 | | | | 8.1 | % | | | 4,124 | | | | 7.3 | % | | | (28 | ) | | | -0.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended December 31, | |
| | Oilfield Services | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 26,681 | | | | 100.0 | % | | $ | 33,423 | | | | 100.0 | % | | $ | (6,742 | ) | | | -20.2 | % |
| | Cost of sales | | | 20,547 | | | | 77.0 | % | | | 23,964 | | | | 71.7 | % | | | (3,417 | ) | | | -14.3 | % |
| | Gross profit | | | 6,134 | | | | 23.0 | % | | | 9,459 | | | | 28.3 | % | | | (3,325 | ) | | | -35.2 | % |
| | General, selling and administrative expenses | | | 5,844 | | | | 21.9 | % | | | 5,123 | | | | 15.3 | % | | | 721 | | | | 14.1 | % |
| | Operating profit | | | 290 | | | | 1.1 | % | | | 4,336 | | | | 13.0 | % | | | (4,046 | ) | | | -93.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | Three Months Ended December 31, | |
| | Transportation | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 11,306 | | | | 100.0 | % | | $ | 14,705 | | | | 100.0 | % | | $ | (3,399 | ) | | | -23.1 | % |
| | Cost of sales | | | 10,012 | | | | 88.6 | % | | | 13,104 | | | | 89.1 | % | | | (3,092 | ) | | | -23.6 | % |
| | Gross profit | | | 1,294 | | | | 11.4 | % | | | 1,601 | | | | 10.9 | % | | | (307 | ) | | | -19.2 | % |
| | General, selling and administrative expenses | | | 814 | | | | 7.2 | % | | | 926 | | | | 6.3 | % | | | (112 | ) | | | -12.1 | % |
| | Operating profit | | | 480 | | | | 4.2 | % | | | 675 | | | | 4.6 | % | | | (195 | ) | | | -28.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended December 31, | | | | | | | | | |
| | Corporate | | 2009 | | | 2008 | | | 2009 vs 2008 | | | | | | | | | |
| | | | (Dollars in Thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Intersegment shipping sales | | $ | (3,312 | ) | | $ | (4,953 | ) | | $ | 1,641 | | | | | | | | | | | | | |
| | Intersegment shipping costs | | | (3,312 | ) | | | (4,953 | ) | | | 1,641 | | | | | | | | | | | | | |
| | Gross profit | | | - | | | | - | | | | | | | | | | | | | | | | | |
| | General, selling and administrative expenses | | | 5,478 | | | | 6,567 | | | | (1,089 | ) | | | -19.9 | % | | | | | | | | |
| | Operating loss | | | (5,478 | ) | | | (6,567 | ) | | | 1,089 | | | | -19.9 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
AMCOL Q4 2009 EARNINGS
Page 10 of 12
| AMCOL INTERNATIONAL CORPORATION |
| SEGMENT RESULTS (unaudited) |
| YEAR-TO-DATE |
| | | | Twelve Months Ended December 31, |
| | Minerals | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 336,172 | | | | 100.0 | % | | $ | 428,986 | | | | 100.0 | % | | $ | (92,814 | ) | | | -21.6 | % |
| | Cost of sales | | | 264,545 | | | | 78.7 | % | | | 348,928 | | | | 81.3 | % | | | (84,383 | ) | | | -24.2 | % |
| | Gross profit | | | 71,627 | | | | 21.3 | % | | | 80,058 | | | | 18.7 | % | | | (8,431 | ) | | | -10.5 | % |
| | General, selling and administrative expenses | | | 36,838 | | | | 11.0 | % | | | 39,579 | | | | 9.2 | % | | | (2,741 | ) | | | -6.9 | % |
| | Operating profit | | | 34,789 | | | | 10.3 | % | | | 40,479 | | | | 9.5 | % | | | (5,690 | ) | | | -14.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Twelve Months Ended December 31, | |
| | Environmental | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 214,604 | | | | 100.0 | % | | $ | 278,708 | | | | 100.0 | % | | $ | (64,104 | ) | | | -23.0 | % |
| | Cost of sales | | | 142,291 | | | | 66.3 | % | | | 187,109 | | | | 67.1 | % | | | (44,818 | ) | | | -24.0 | % |
| | Gross profit | | | 72,313 | | | | 33.7 | % | | | 91,599 | | | | 32.9 | % | | | (19,286 | ) | | | -21.1 | % |
| | General, selling and administrative expenses | | | 46,614 | | | | 21.7 | % | | | 54,530 | | | | 19.6 | % | | | (7,916 | ) | | | -14.5 | % |
| | Operating profit | | | 25,699 | | | | 12.0 | % | | | 37,069 | | | | 13.3 | % | | | (11,370 | ) | | | -30.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Twelve Months Ended December 31, | |
| | Oilfield Services | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 119,821 | | | | 100.0 | % | | $ | 133,600 | | | | 100.0 | % | | $ | (13,779 | ) | | | -10.3 | % |
| | Cost of sales | | | 81,101 | | | | 67.7 | % | | | 87,094 | | | | 65.2 | % | | | (5,993 | ) | | | -6.9 | % |
| | Gross profit | | | 38,720 | | | | 32.3 | % | | | 46,506 | | | | 34.8 | % | | | (7,786 | ) | | | -16.7 | % |
| | General, selling and administrative expenses | | | 25,967 | | | | 21.7 | % | | | 23,279 | | | | 17.4 | % | | | 2,688 | | | | 11.5 | % |
| | Operating profit | | | 12,753 | | | | 10.6 | % | | | 23,227 | | | | 17.4 | % | | | (10,474 | ) | | | -45.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Twelve Months Ended December 31, | |
| | Transportation | | 2009 | | | 2008 | | | 2009 vs 2008 | |
| | | | (Dollars in Thousands) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net sales | | $ | 46,642 | | | | 100.0 | % | | $ | 63,921 | | | | 100.0 | % | | $ | (17,279 | ) | | | -27.0 | % |
| | Cost of sales | | | 41,114 | | | | 88.1 | % | | | 57,185 | | | | 89.5 | % | | | (16,071 | ) | | | -28.1 | % |
| | Gross profit | | | 5,528 | | | | 11.9 | % | | | 6,736 | | | | 10.5 | % | | | (1,208 | ) | | | -17.9 | % |
| | General, selling and administrative expenses | | | 3,365 | | | | 7.2 | % | | | 3,490 | | | | 5.5 | % | | | (125 | ) | | | -3.6 | % |
| | Operating profit | | | 2,163 | | | | 4.7 | % | | | 3,246 | | | | 5.0 | % | | | (1,083 | ) | | | -33.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Twelve Months Ended December 31, | | | | | | | | | |
| | Corporate | | 2009 | | | 2008 | | | 2009 vs 2008 | | | | | | | | | |
| | | | (Dollars in Thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Intersegment shipping sales | | $ | (14,002 | ) | | $ | (21,663 | ) | | $ | 7,661 | | | | | | | | | | | | | |
| | Intersegment shipping costs | | | (14,002 | ) | | | (21,663 | ) | | | 7,661 | | | | | | | | | | | | | |
| | Gross profit | | | - | | | | - | | | | | | | | | | | | | | | | | |
| | General, selling and administrative expenses | | | 21,918 | | | | 24,775 | | | | (2,857 | ) | | | -11.5 | % | | | | | | | | |
| | Operating loss | | | (21,918 | ) | | | (24,775 | ) | | | 2,857 | | | | -11.5 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
AMCOL Q4 2009 EARNINGS
Page 11 of 12
| AMCOL INTERNATIONAL CORPORATION |
| SUPPLEMENTARY INFORMATION (unaudited) |
| QUARTER-TO-DATE |
| | | Three Months Ended December 31, 2009 | |
| | Composition of Sales by Geographic Region | | Americas | | | EMEA | | | Asia Pacific | | | Total | |
| | | | | | | | | | | | | | | | | | |
| | Minerals | | | 31.5 | % | | | 10.0 | % | | | 10.3 | % | | | 51.8 | % |
| | Environmental | | | 11.5 | % | | | 14.4 | % | | | 2.7 | % | | | 28.6 | % |
| | Oilfield services | | | 12.4 | % | | | 0.7 | % | | | 2.0 | % | | | 15.1 | % |
| | Transportation | | | 4.5 | % | | | 0.0 | % | | | 0.0 | % | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | |
| | Total - current year's period | | | 59.9 | % | | | 25.1 | % | | | 15.0 | % | | | 100.0 | % |
| | Total from prior year's comparable period | | | 71.1 | % | | | 20.0 | % | | | 8.9 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2009 | |
| | | vs. | |
| | Percentage of Revenue Growth by Component | Three Months Ended December 31, 2008 | |
| | | | Base Business | | Acquisitions | | | Foreign Exchange | | | Total | |
| | | | | | | | | | | | | | | | | | |
| | Minerals | | | -7.1 | % | | | 0.0 | % | | | 0.2 | % | | | -6.9 | % |
| | Environmental | | | -3.3 | % | | | 0.3 | % | | | 0.2 | % | | | -2.8 | % |
| | Oilfield services | | | -3.6 | % | | | 0.0 | % | | | 0.3 | % | | | -3.3 | % |
| | Transportation | | | -0.9 | % | | | 0.0 | % | | | 0.0 | % | | | -0.9 | % |
| | | | | | | | | | | | | | | | | | |
| | Total | | | -14.9 | % | | | 0.3 | % | | | 0.7 | % | | | -13.9 | % |
| | % of growth | | | 106.5 | % | | | -2.2 | % | | | -4.3 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | | |
| | Minerals Product Line Sales | | 2009 | | | 2008 | | | % change | | | | | |
| | | (Dollars in Thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Metalcasting | | $ | 39,257 | | | $ | 40,954 | | | | -4.1 | % | | | | |
| | Specialty materials | | | 26,659 | | | | 27,003 | | | | -1.3 | % | | | | |
| | Pet products | | | 16,712 | | | | 19,999 | | | | -16.4 | % | | | | |
| | Basic minerals | | | 7,613 | | | | 18,108 | | | | -58.0 | % | | | | |
| | Other product lines | | | 1,274 | | | | (306 | ) | | | * | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Total | | | 91,515 | | | | 105,758 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | * Not meaningful. | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | | | |
| | Environmental Product Line Sales | | 2009 | | | 2008 | | | % change | | | | | |
| | | (Dollars in Thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Lining technologies | | $ | 32,112 | | | $ | 36,628 | | | | -12.3 | % | | | | |
| | Building materials | | | 13,020 | | | | 13,290 | | | | -2.0 | % | | | | |
| | Other product lines | | | 5,376 | | | | 6,397 | | | | * | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Total | | | 50,508 | | | | 56,315 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | * Not meaningful. | | | | | | | | | | | | | | | | |
AMCOL Q4 2009 EARNINGS
Page 12 of 12
| AMCOL INTERNATIONAL CORPORATION |
| SUPPLEMENTARY INFORMATION (unaudited) |
| YEAR-TO-DATE |
| | | Twelve Months Ended December 31, 2009 | |
| | Composition of Sales by Geographic Region | | Americas | | | EMEA | | | Asia Pacific | | | Total | |
| | | | | | | | | | | | | | | | | | |
| | Minerals | | | 30.1 | % | | | 9.6 | % | | | 8.2 | % | | | 47.9 | % |
| | Environmental | | | 14.5 | % | | | 13.7 | % | | | 2.3 | % | | | 30.5 | % |
| | Oilfield services | | | 15.2 | % | | | 0.6 | % | | | 1.2 | % | | | 17.0 | % |
| | Transportation | | | 4.6 | % | | | 0.0 | % | | | 0.0 | % | | | 4.6 | % |
| | | | | | | | | | | | | | | | | | |
| | Total - current year's period | | | 64.4 | % | | | 23.9 | % | | | 11.7 | % | | | 100.0 | % |
| | Total from prior year's comparable period | | | 68.2 | % | | | 22.4 | % | | | 9.4 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, 2009 | |
| | | vs. | |
| | Percentage of Revenue Growth by Component | Twelve Months Ended December 31, 2008 | |
| | | | Base Business | | Acquisitions | | | Foreign Exchange | | | Total | |
| | | | | | | | | | | | | | | | | | |
| | Minerals | | | -8.7 | % | | | 0.0 | % | | | -1.8 | % | | | -10.5 | % |
| | Environmental | | | -4.6 | % | | | 0.2 | % | | | -2.9 | % | | | -7.3 | % |
| | Oilfield services | | | -2.3 | % | | | 0.9 | % | | | -0.1 | % | | | -1.5 | % |
| | Transportation | | | -1.1 | % | | | 0.0 | % | | | 0.0 | % | | | -1.1 | % |
| | | | | | | | | | | | | | | | | | |
| | Total | | | -16.7 | % | | | 1.1 | % | | | -4.8 | % | | | -20.4 | % |
| | % of growth | | | 81.8 | % | | | -5.3 | % | | | 23.5 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, | | | | | |
| | Minerals Product Line Sales | | 2009 | | | 2008 | | | % change | | | | | |
| | | (Dollars in Thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Metalcasting | | $ | 139,849 | | | $ | 175,072 | | | | -20.1 | % | | | | |
| | Specialty materials | | | 97,989 | | | | 104,242 | | | | -6.0 | % | | | | |
| | Pet products | | | 66,441 | | | | 78,260 | | | | -15.1 | % | | | | |
| | Basic minerals | | | 27,901 | | | | 65,383 | | | | -57.3 | % | | | | |
| | Other product lines | | | 3,992 | | | | 6,029 | | | | * | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Total | | | 336,172 | | | | 428,986 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | * Not meaningful. | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, | | | | | |
| | Environmental Product Line Sales | | 2009 | | | 2008 | | | % change | | | | | |
| | | (Dollars in Thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Lining technologies | | $ | 138,262 | | | $ | 174,895 | | | | -20.9 | % | | | | |
| | Building materials | | | 54,724 | | | | 78,380 | | | | -30.2 | % | | | | |
| | Other product lines | | | 21,618 | | | | 25,433 | | | | * | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Total | | | 214,604 | | | | 278,708 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | * Not meaningful. | | | | | | | | | | | | | | | | |
