Exhibit 99.1
For further information, contact: Jennifer Melsheimer
Investor Relations Manager
847.394.8730
FOR IMMEDIATE RELEASE
AMCOL INTERNATIONAL (NYSE:ACO) REPORTS
38 PERCENT INCREASE IN DILUTED EARNINGS PER SHARE
OVER PRIOR YEAR THIRD QUARTER
ARLINGTON HEIGHTS, ILL., Oct. 20, 2003-- AMCOL International Corp. (NYSE:ACO)
today reported that third quarter net income was $6.6 million, or $.22 per
diluted share, compared with $4.9 million, or $.16 per diluted share, in the
prior year quarter. AMCOL reported net sales of $99.5 million for the quarter
ended Sept. 30, 2003, compared to $85.2 million for the same period in 2002.
Operating profit grew to $9.9 million compared with $7.6 million in the
prior-year period. Foreign currency exchange rates had an immaterial effect on
sales and earnings per share in the third quarter.
For the nine-month period ended Sept. 30, 2003, net income was $15.3 million, or
$.51 per diluted share, compared with $9.5 million, or $.31 per diluted share,
in the prior year. Net sales were $272.2 million compared to $221.1 million in
the prior-year period. Operating profit was $22.5 compared with $14.4 million
for the 2002 period.
Larry Washow, president and chief executive officer said, "During the third
quarter we saw continued growth, with highlights in both of our major reporting
segments. We again saw strong sales in our environmental segment, especially in
our Lining Technologies Group, where demand for our products has been strong
domestically and overseas. In our minerals segment, Colin Stewart Minchem, our
2002 acquisition, continued its strong contribution. Our Asia Pacific operations
were also solid contributors to the quarter."
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AMCOL INTERNATIONAL CORP.
Q3 EARNINGS 2003
PAGE 2 OF 9
Washow noted, "We are very pleased to report our sixth consecutive quarter of
year-over-year improved revenue and earnings. The Company's results are
particularly rewarding in view of the uncertain economy."
SEGMENT DISCUSSIONS
Minerals
The minerals segment, which accounted for approximately 56 percent of
consolidated net sales for the 2003 third quarter, reported a sales increase of
18.7 percent, and a 38.1 percent increase in operating profit. General, selling
and administrative expenses increased 8.1 percent over the prior year. In
year-over-year comparisons for the first nine months, sales increased 26.8
percent, while operating profit increased 54.5 percent.
Washow said, "Driven by continued strong demand for our products in both the
domestic and international markets and improved operational efficiency, we have
seen growth in both the top and bottom lines. We have benefited from our
position in the global metalcasting market, in part due to our enhanced product
line. Our ongoing cost improvements for our pet products group, have enabled us
to deliver better gross margins."
Environmental
The Company's environmental segment, which accounted for approximately 38
percent of AMCOL's net sales for the third quarter 2003, registered a 20.5
percent increase in operating profit on a 15.2 percent increase in sales as
compared with the third quarter of the previous year. For the nine-months ended
Sept. 30, 2003, operating profit increased 29.7 percent while net sales
increased 20 percent from the prior-year period.
Washow noted, "Our environmental segment again registered strong profitability
and growth fueled by the performance of the Lining Technologies and our European
operations. The results were also bolstered by international sales from the U.S.
to Latin America."
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AMCOL INTERNATIONAL CORP.
Q3 EARNINGS 2003
PAGE 3 OF 9
Washow added that two small acquisitions made this quarter in the Building
Materials Group have given us the ability to deliver a full "envelope" of
building products. The acquisitions provide manufacturing capability for
products used in waterproofing, roofing underlayment and the emerging market for
air barriers.
Transportation
AMCOL's transportation operations accounted for approximately 10 percent of the
Company's consolidated net sales, including inter-segment shipping revenue, for
the current year third quarter. The segment reported a 97.1 percent increase in
operating profit, and a 20.7 percent increase in net sales in year-over-year
comparisons for the third quarter. For the nine-month period ended Sept. 30,
2003, the segment reported a net sales increase of 18.7 percent, and an increase
in operating profit of 79.6 percent from the prior-year period.
Washow said, "Our transportation segment has again performed well financially,
while providing AMCOL's operations with valuable support."
FINANCIAL OVERVIEW
Long-term debt (including current maturities) totaled $14.1 million at Sept. 30,
2003 compared to $18.2 at Dec. 31, 2002. Debt represented approximately 7.9
percent of total capitalization at Sept. 30, 2003, compared to 10.7 percent at
Dec. 31, 2002.
Operating cash flow increased to $16.8 million from $15.3 million for the
nine-month periods ended Sept. 30, 2003 and 2002, respectively. Capital
expenditures totaled $10.3 million through Sept. 30, 2003 compared with $10.1
million for the same period in 2002. AMCOL completed two acquisitions in the
third quarter for a total of $2.9 million. The acquisitions involve products
aligned with the Company's building materials group, which is a component of the
environmental segment. Both acquisitions were asset purchases.
G,S&A was $44.6 million for the nine-month period ended Sept. 30, 2003, which
was an increase of 14.9 percent over the prior year period. G,S&A for the third
quarter of 2003 was $15.4 million, which was an increase of 12.5 percent over
the prior-year third quarter.
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AMCOL INTERNATIONAL CORP.
Q3 EARNINGS 2003
PAGE 4 OF 9
Shares outstanding at Sept. 30, 2003, were approximately 28.6 million compared
to approximately 27.9 million in the prior year. The weighted average common and
common equivalent shares declined by 2 percent for the nine-month period and
increased 2 percent for the third-quarter period, from the comparable periods of
the prior year.
AMCOL's financial condition at Sept. 30, 2003, included working capital of
approximately $72.2 million and a current ratio of 2.2-to-1. Working capital was
$58.5 million and the current ratio 2.1-to-1 at Dec. 31, 2002.
Through the first nine months of 2003, AMCOL repurchased approximately 267
thousand shares of its common stock at an aggregate cost of $1.6 million, or an
average price of $5.99 per share. Approximately $3.7 million remains in the
stock repurchase authorization approved by the Board of Directors in May 2002.
AMCOL's third quarter conference call will be available live Oct. 20, 2003, at
11 a.m. EDT through the AMCOL website www.amcol.com and a replay is available
through Oct. 31, 2003. A transcript of the call will be posted on the AMCOL
website on Oct. 24, 2003.
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 Corporation, 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 Nationwide Freight Service, Inc. AMCOL's common stock is traded on the
New York Stock Exchange under the symbol ACO.
================================================================================
Financial tables follow.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In Thousands)
Nine months ended Three months ended
September 30, September 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales $ 272,186 $ 221,072 $ 99,466 $ 85,196
Cost of sales 205,001 167,837 74,101 63,882
------------ ------------ ------------ ------------
Gross profit 67,185 53,235 25,365 21,314
General, selling and administrative expenses 44,646 38,858 15,423 13,715
------------ ------------ ------------ ------------
Operating profit 22,539 14,377 9,942 7,599
------------ ------------ ------------ ------------
Other income (expense):
Interest expense, net (293) (410) (91) (170)
Other expense, net 271 (92) 107 (15)
------------ ------------ ------------ ------------
(22) (502) 16 (185)
------------ ------------ ------------ ------------
Income before income taxes and
equity in income of joint ventures 22,517 13,875 9,958 7,414
Income taxes 7,656 4,997 3,387 2,672
------------ ------------ ------------ ------------
Income before equity in income
of joint ventures 14,861 8,878 6,571 4,742
Income from minority interest and joint ventures 410 574 61 116
------------ ------------ ------------ ------------
Net income $ 15,271 $ 9,452 $ 6,632 $ 4,858
============ ============ ============ ============
Weighted average common shares outstanding 28,176,170 28,230,881 28,421,103 27,866,211
============ ============ ============ ============
Weighted average common and common
equivalent shares outstanding 29,841,379 30,370,517 30,410,215 29,890,911
============ ============ ============ ============
Basic earnings per share $ 0.54 $ 0.33 $ 0.23 $ 0.17
============ ============ ============ ============
Diluted earnings per share $ 0.51 $ 0.31 $ 0.22 $ 0.16
============ ============ ============ ============
Dividends declared per share $ 0.110 $ 0.065 $ 0.040 $ 0.030
============ ============ ============ ============
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In Thousands, except number of shares)
September 30, December 31,
2003 2002
------------ ------------
ASSETS
Cash $ 13,447 $ 15,597
Accounts receivable, net 67,423 48,870
Inventories 41,195 38,854
Income tax receivable
1,197 717
Other current assets 9,038 7,095
----------- -----------
Total current assets 132,300 111,133
----------- -----------
Property, plant, equipment and reserves, net 81,541 81,847
----------- -----------
Investments in and advances to joint ventures 13,073 12,419
Intangible assets 5,979 5,202
Other long-term assets 11,242 11,227
----------- -----------
$ 244,135 $ 221,828
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt $ 9,100 $ 12,600
Accounts payable 21,672 17,918
Accrued liabilities 29,288 22,121
----------- -----------
Total current liabilities 60,060 52,639
----------- -----------
Long-term debt
5,006 5,573
----------- -----------
Minority interest in subsidiaries 116 615
Other long-term obligations 13,841 11,618
----------- -----------
13,957 12,233
----------- -----------
Stockholders' equity 165,112 151,383
----------- -----------
$ 244,135 $ 221,828
=========== ===========
Common shares outstanding
at the end of the period 28,550,834 27,881,903
=========== ===========
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
(In thousands)
Nine Months Ended
September 30,
2003 2002
-------- --------
Cash flows from operating activities:
Net income $ 15,271 $ 9,452
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation, depletion, and amortization 13,572 14,292
Increase in current assets (23,590) (11,338)
Increase in noncurrent assets (992) (2,599)
Increase in current liabilities 10,913 4,054
Increase in noncurrent liabilities 2,222 1,114
Other (589) 363
-------- --------
Net cash provided by operating activities 16,807 15,338
-------- --------
Cash flows from investing activities:
Acquisition of land, mineral reserves, depreciable
and intangible assets (10,263) (10,111)
Acquisitions (2,957) (16,966)
Other 797 281
-------- --------
Net cash used in investing activities (12,423) (26,796)
-------- --------
Cash flows from financing activities:
Net change in outstanding debt (4,067) 15,808
Dividends paid (3,107) (1,828)
Proceeds from exercise of stock options 1,794 1,382
Purchases of treasury stock (3,011) (6,781)
-------- --------
Net cash provided by (used in) financing activities (8,391) 8,581
-------- --------
Effect of foreign currency rate changes on cash 1,857 1,816
-------- --------
Net decrease in cash and cash equivalents (2,150) (1,061)
Cash and cash equivalents at beginning of period 15,597 10,320
-------- --------
Cash and cash equivalents at end of period $ 13,447 $ 9,259
======== ========
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Quarter ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Product sales $ 50,821 $ 42,608
Shipping revenue 4,390 3,894
----------------------- ----------------------
Net sales 55,211 100.0% 46,502 100.0% 8,709 18.7%
--------------------------------------------------------
Cost of sales-product 40,051 33,861
Cost of sales-shipping 4,390 3,894
----------------------- ----------------------
Cost of sales 44,441 80.5% 37,755 81.2%
----------------------- ----------------------
Gross profit 10,770 19.5% 8,747 18.8% 2,023 23.1%
General, selling and
administrative exp. 4,715 8.5% 4,361 9.4% 354 8.1%
----------------------- ---------------------- -------
Operating profit 6,055 11.0% 4,386 9.4% 1,669 38.1%
ENVIRONMENTAL Quarter ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Product sales $ 35,064 $ 30,637
Shipping revenue 3,203 2,579
----------------------- ----------------------
Net sales 38,267 100.0% 33,216 100.0% 5,051 15.2%
--------------------------------------------------------
Cost of sales-product 21,593 18,951
Cost of sales-shipping 3,203 2,579
----------------------- ----------------------
Cost of sales 24,796 64.8% 21,530 64.8%
----------------------- ----------------------
Gross profit 13,471 35.2% 11,686 35.2% 1,785 15.3%
General, selling and
administrative exp. 6,300 16.5% 5,736 17.3% 564 9.8%
----------------------- ---------------------- -------
Operating profit 7,171 18.7% 5,950 17.9% 1,221 20.5%
TRAMSPORTATION Quarter ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Net sales $ 10,367 100.0% $ 8,591 100.0% 1,776 20.7%
Cost of sales 9,243 89.2% 7,710 89.7%
----------------------- ----------------------
Gross profit 1,124 10.8% 881 10.3% 243 27.6%
General, selling and
administrative exp. 647 6.2% 639 7.4% 8 1.3%
----------------------- ---------------------- -------
Operating profit $ 477 4.6% $ 242 2.9% 235 97.1%
CORPORATE Quarter ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Intersegment shipping revenues $ (4,379) $ (3,113)
Intersegment shipping costs (4,379) (3,113)
--------- ---------
Gross profit
- -
General, selling and
administrative exp. 2,802 1,863 939 50.4%
Nanocomposites 959 1,116 (157) -14.1%
----------- ---------- -------
Operating loss $ (3,761) $ (2,979) (782) -26.3%
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited) (Dollars in thousands)
MINERALS Nine months ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Product sales $ 144,724 $ 114,409
Shipping revenue 14,206 10,921
----------------------- ----------------------
Net sales 158,930 100.0% 125,330 100.0% 33,600 26.8%
--------------------------------------------------------
Cost of sales-product 114,007 91,666
Cost of sales-shipping 14,206 10,921
----------------------- ----------------------
Cost of sales 128,213 80.7% 102,587 81.9%
----------------------- ----------------------
Gross profit 30,717 19.3% 22,743 18.1% 7,974 35.1%
General, selling and
administrative exp. 13,863 8.7% 11,836 9.4% 2,027 17.1%
----------------------- ---------------------- -------
Operating profit $ 16,854 10.6% $ 10,907 8.7% 5,947 54.5%
ENVIRONMENTAL Nine months ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Product sales $ 88,287 $ 73,996
Shipping revenue 7,382 5,739
----------------------- ---------------------
Net sales 95,669 100.0% 79,735 100.0% 15,934 20.0%
----------------------- ---------------------
Cost of sales-product 54,946 45,987
Cost of sales-shipping 7,382 5,739
----------------------- ---------------------
Cost of sales 62,328 65.1% 51,726 64.9%
----------------------- ---------------------
Gross profit 33,341 34.9% 28,009 35.1% 5,332 19.0%
General, selling and
administrative exp. 18,466 19.3% 16,538 20.7% 1,928 11.7%
----------------------- --------------------- -------
Operating profit $ 14,875 15.6% $ 11,471 14.4% 3,404 29.7%
TRAMSPORTATION Nine months ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Net sales $ 28,554 100.0% $ 24,053 100.0% 4,501 18.7%
Cost of sales 25,427 89.0% 21,570 89.7%
----------------------- ---------------------
Gross profit 3,127 11.0% 2,483 10.3% 644 25.9%
General, selling and
administrative exp. 1,875 6.6% 1,786 7.4% 89 5.0%
----------------------- --------------------- -------
Operating profit $ 1,252 4.4% $ 697 2.9% 555 79.6%
CORPORATE Nine months ended September 30,
--------------------------------------------------------------------------------------
2003 2002 2003 vs. 2002
----------------------- ---------------------- ---------------------
$ Change % Change
---------------------
Intersegment shipping revenues $ (10,967) $ (8,046)
Intersegment shipping costs (10,967) (8,046)
--------- ---------
Gross profit
- -
General, selling and
administrative exp. 7,535 5,342 2,193 41.1%
Nanocomposites 2,907 3,356 (449) -13.4%
--------- --------- -------
Operating loss $ (10,442) $ (8,698) (1,744) -20.1%