Exhibit 99.1
For further information, contact: Jennifer Melsheimer
Investor Relations Manager
847/394-8730
FOR IMMEDIATE RELEASE
AMCOL INTERNATIONAL (NYSE:ACO) REPORTS
SIGNIFICANT GROWTH IN
FIRST QUARTER EARNINGS
ARLINGTON HEIGHTS, ILL., April 21, 2003--AMCOL International Corp. (NYSE:ACO)
today reported first quarter net income of $2.9 million or $0.10 cents per
diluted share, compared with $532 thousand or $0.02 cents per diluted share in
the same prior-year period. Net sales rose 39 percent to $79.5 million for the
period ended March 31, 2003, compared to $57.3 million for the period in 2002.
Larry Washow, AMCOL president and chief executive officer said, "We are pleased
to report an increase in sales throughout our major business divisions in both
the domestic and international markets over the difficult 2002 first quarter.
AMCOL demonstrated leadership in its core markets this quarter, with both our
mineral and environmental groups delivering solid gains in both revenue and
profit."
SEGMENT DISCUSSIONS
Minerals
The minerals segment, which accounted for approximately 63 percent of AMCOL's
consolidated net sales for the first quarter of 2003, reported a sales increase
of 49 percent, and an operating profit increase of 122 percent over the
prior-year period.
Washow said, "Approximately 60 percent of the sales increase and 90 percent of
the operating profit increase in the minerals segment was generated from our
core groups outside of CSM, which was acquired in May 2002. Domestic
metalcasting had a positive performance with sales volume improvement over the
2002 quarter. Our Pet Products Group saw not only increased sales over the prior
year quarter, but the benefit of significant profit improvement from the ongoing
restructuring at our production operations. Export shipments from the U.S.
improved over a weak 2002 first quarter and we saw continued improvement in our
Asian operations."
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AMCOL Q1 2003 EARNINGS
Page 2 of 7
Environmental
AMCOL's environmental segment, which accounted for 30 percent of the company's
consolidated net sales for the first quarter of 2003, reported a 27 percent
increase in sales and a 154 percent increase in operating profit in
year-over-year comparisons for the first quarter.
Washow said, "Our environmental segment delivered very good results during the
first quarter. Similar to minerals, we experienced improvement in sales and
operating profit across a number of business units. Sales were particularly
strong in the domestic and international lining technologies markets."
Washow commented that the segment's strategy to globalize its business was
continuing. He added, "A new production facility near Shanghai, China is on
track to start-up in the first quarter of 2004. This will expand our capability
for selling lining technology and building materials products in the burgeoning
Chinese market."
Transportation
AMCOL's transportation segment, which accounted for 7 percent of the company's
consolidated net sales, reported a 19 percent increase in sales, and a 66
percent increase in operating profit for the 2003 first quarter.
Washow noted, "First quarter sales improved with new accounts contributing
significantly to the increase. While fuel costs continue to impact results,
operational cost controls yielded improved margins."
Financial Overview
Total short-term and long-term debt was $ 22.3 million at March 31, 2003
compared to $18.2 million at December 31, 2002. Debt represented 12.8 percent of
total capitalization at March 31, 2003, compared to 10.7 percent at Dec. 31,
2002.
General, selling and administrative expenses were $14.3 million in the 2003
first quarter, an increase of $2.3 million or 19 percent, over the 2002 period.
Selling and administrative costs associated with CSM, which was not owned by the
Company in the 2002 quarter, were the principal reason for the increase. The
Company also incurred higher pension and insurance related expenses in the 2003
quarter.
The weighted average number of common and common equivalent shares of 29.7
million decreased by approximately 1.2 million shares, or approximately 4
percent, from March 31, 2002.
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AMCOL Q1 2003 EARNINGS
Page 3 of 7
During the first quarter of 2003, the Company repurchased approximately 56
thousand shares of its common stock for a total of $315 thousand, or $5.63 per
share. Approximately $4.9 million remains available in the stock repurchase
program approved by the Board of Directors in May 2002.
AMCOL's financial condition at March 31, 2003, included working capital of
approximately $60.3 million and a current ratio of 2.12-to-1 compared to
approximately $58.5 million and a current ratio of 2.11-to-1 at December 31,
2002.
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 International, headquartered in Arlington Heights, Ill., produces and
markets a wide range of specialty mineral products used for industrial,
environmental and consumer-related applications. AMCOL is the parent of American
Colloid Co., CETCO (Colloid Environmental Technologies Co.), Volclay
International, Nanocor 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 first quarter conference call will be available live today at 11 a.m.
EST on the AMCOL website.
================================================================================
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In Thousands)
Three months ended
March 31,
2003 2002
------------ ------------
Net sales $ 79,467 $ 57,341
Cost of sales 60,843 44,688
------------ ------------
Gross profit 18,624 12,653
General, selling and administrative expenses 14,294 12,030
------------ ------------
Operating profit 4,330 623
------------ ------------
Other income (expense):
Interest expense, net (80) (92)
Other expense, net 32 (30)
------------ ------------
(48) (122)
------------ ------------
Income from continuing
operations before income taxes and
equity in income of joint ventures 4,282 501
Income taxes 1,455 176
------------ ------------
Income from continuing
operations before equity in
income of joint ventures 2,827 325
Income from minority interest and
joint ventures 103 207
------------ ------------
Net income 2,930 532
============ ============
Weighted average common shares outstanding 27,994,263 28,454,530
============ ============
Weighted average common and common
equivalent shares outstanding 29,746,227 30,921,786
============ ============
Basic earnings per share $ 0.10 $ 0.02
============ ============
Diluted earnings per share $ 0.10 $ 0.02
============ ============
Dividends declared per share $ 0.030 $ 0.015
============ ============
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(In Thousands, except number of shares)
March 31, December 31,
2003 2002
----------- ------------
ASSETS
Cash and cash equivalents $ 10,168 $ 15,597
Accounts receivable, net 56,440 48,870
Inventories 37,849 38,854
Income tax receivable 1,467 717
Other current assets 8,217 7,095
----------- -----------
Total current assets 114,141 111,133
----------- -----------
Property, plant, equipment and reserves, net 80,260 81,847
----------- -----------
Investments in and advances to joint ventures 12,531 12,419
Intangible assets 5,090 5,202
Other long-term assets 11,970 11,227
----------- -----------
$ 223,992 $ 221,828
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt $ 16,600 $ 12,600
Accounts payable 14,537 17,918
Accrued liabilities 22,672 22,121
----------- -----------
Total current liabilities 53,809 52,639
----------- -----------
Long-term debt 5,739 5,573
----------- -----------
Minority interest in subsidiaries 624 615
Other long-term obligations 11,679 11,618
----------- -----------
12,303 12,233
----------- -----------
Stockholders' equity 152,141 151,383
----------- -----------
$ 223,992 $ 221,828
=========== ===========
Common shares outstanding
at the end of the period 28,100,045 27,881,903
=========== ===========
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
(In Thousands)
Three months ended
March 31,
2003 2002
-------- --------
Cash flows from operating activities:
Net income $ 2,930 $ 532
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation, depletion, and
amortization 4,492 4,152
Decrease (increase) in current assets (8,464) 2,866
Increase in noncurrent assets (3,172)
Decrease in current liabilities (2,828) (5,285)
Increase in noncurrent liabilities 61 638
Other (57) 517
-------- --------
Net cash provided by (used in)
operating activities (3,866) 248
-------- --------
Cash flows from investing activities:
Acquisition of land, mineral reserves, depreciable
and intangible assets (3,489) (3,366)
Other (755) (123)
-------- --------
Net cash used in investing activities (4,244) (3,489)
-------- --------
Cash flows from financing activities:
Net change in outstanding debt 4,166 2,213
Dividends paid (841) (429)
Proceeds from exercise of stock options 528 877
Purchases of treasury stock (315) (1,120)
-------- --------
Net cash provided by financing
activities 3,538 1,541
-------- --------
Effect of foreign currency rate changes on cash (857) (117)
-------- --------
Net decrease in cash and cash equivalents (5,429) (1,817)
Cash and cash equivalents at beginning of period 15,597 10,320
-------- --------
Cash and cash equivalents at end of period $ 10,168 $ 8,503
======== ========
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Quarter ended March 31,
---------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- -----------------------------------------------------
$ Change % Change
--------------------------
Product sales $ 46,061 $ 31,060
Shipping revenue 4,116 2,630
-----------------------------------
Net sales 50,177 100.0% 33,690 100.0% 16,487 48.9%
Cost of sales-product 36,611 25,491
Cost of sales-shipping 4,116 2,630
-----------------------------------
Cost of sales 40,727 81.2% 28,121 83.5%
-----------------------------------
Gross profit 9,450 18.8% 5,569 16.5% 3,881 69.7%
General, selling and
administrative exp 4,533 9.0% 3,352 9.9% 1,181 35.2%
---------------------------------------------------------------
Operating profit 4,917 9.8% 2,217 6.6% 2,700 121.8%
ENVIRONMENTAL Quarter ended March 31,
---------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- -----------------------------------------------------
$ Change % Change
--------------------------
Product sales $ 21,953 $ 17,220
Shipping revenue 1,536 1,273
-----------------------------------
Net sales 23,489 100.0% 18,493 100.0% 4,996 27.0%
-----------------------------------
Cost of sales-product 13,757 10,919
Cost of sales-shipping 1,536 1,273
-----------------------------------
Cost of sales 15,293 65.1% 12,192 65.9%
-----------------------------------
Gross profit 8,196 34.9% 6,301 34.1% 1,895 30.1%
General, selling and
administrative exp. 5,813 24.7% 5,362 29.0% 451 8.4%
---------------------------------------------------------------
Operating profit 2,383 10.1% 939 5.1% 1,444 153.8%
TRANSPORTATION Quarter ended March 31,
---------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- -----------------------------------------------------
$ Change % Change
--------------------------
Net sales $ 8,797 100.0% $ 7,384 100.0% 1,413 19.1%
Cost of sales 7,819 88.9% 6,601 89.4%
----------------------- -----------------------
Gross profit 978 11.1% 783 10.6% 195 24.9%
General, selling and
administrative exp. 602 6.8% 557 7.5% 45 8.1%
----------------------- ----------------------- ---------
Operating profit $ 376 4.3% $ 226 3.1% 150 66.4%
CORPORATE Quarter ended March 31,
---------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- -----------------------------------------------------
$ Change % Change
--------------------------
Intersegment shipping revenues $ (2,996) $ (2,226)
Intersegment shipping costs (2,996) (2,226)
-------- --------
Gross profit -- --
General, selling and
administrative exp. 2,318 1,590 728 45.8%
Nanocomposites 1,028 1,169 (141) -12.1%
-------- -------- --------
Operating loss $ (3,346) $ (2,759) (587) -21.3%