Exhibit 99.1
AMCOL International (NYSE: ACO) Reports 32 Percent Increase in Second Quarter
Diluted Earnings Per Share Over 2003 Second Quarter
ARLINGTON HEIGHTS, Ill., July 19 /PRNewswire-FirstCall/ -- AMCOL
International Corp. (NYSE: ACO) today reported that second quarter net income
was $7.7 million, or $.25 per diluted share, compared with $5.7 million, or
$.19 per diluted share, in the prior year quarter. AMCOL reported net sales
of $117.0 million for the quarter ended June 30, 2004, compared to
$93.3 million for the same period in 2003.
For the six-month period ended June 30, 2004, net sales were
$219.0 million compared to $172.7 million in the prior-year period. Net
income was $12.8 million, or $.42 per diluted share, compared with
$8.6 million, or $.29 per diluted share in the same period of 2003.
Larry Washow, president and chief executive officer said, "While there
were many highlights in the quarter impacting the results, growth in our
traditional markets in the U.S. and strong international performance really
stand out. Our second-quarter results continue several quarters of
year-over-year improvement. We are focused on leveraging our established
competitive positions and creating additional future growth through our new
product developments as well as acquisitions."
Washow noted, "Acquisitions and favorable foreign exchange rates each
accounted for approximately $.01 per share of the earnings improvement in the
second quarter. Those categories each accounted for $.02 per share of the
increase in earnings for the six month period."
SEGMENT DISCUSSIONS
Minerals
The minerals segment, which accounted for approximately 57 percent of
consolidated net sales for the second quarter, reported increased sales and
operating profit of 24 percent and 40 percent, respectively. In year-over-year
comparisons for the first six months, sales increased 26 percent, while
operating profit increased 45 percent.
Washow noted, "We are encouraged by continued demand in both the U.S. and
Asia/Pacific metalcasting markets. Automotive sales remain brisk, while
additional business from increased rail car and farm equipment production
contributed further to the top line."
Washow continued, "Higher sales in our specialty minerals group, in
particular our detergent products, coupled with continued improvement in gross
margin, contributed to the minerals segment's strong results for the quarter."
Environmental
The Company's environmental segment, which accounted for approximately
38 percent of AMCOL's consolidated net sales for the 2004 second quarter,
registered a 16 percent increase in operating profit on 32 percent higher
sales for the quarter ended June 30, 2004, compared to the same prior-year
period. For the six-month period, operating profit increased 20 percent and
sales increased 33 percent from the prior-year period.
Washow commented, "The lining technologies group again delivered
substantial sales growth including our recent European acquisition, which has
expanded our marketshare for the environmental segment in Spain."
Washow noted, "The segment's gross profit margin declined in comparison
with the second quarter of 2003 due to the relatively lower profit earned on
sales from businesses acquired in the past year."
Transportation
AMCOL's transportation operations accounted for approximately 9 percent of
the Company's consolidated net sales, including inter-segment shipping
revenue, for the current year second quarter. The segment also reported a
7 percent increase in sales and a 13 percent increase in operating profit for
the three-month period. Sales and operating profits for the six-month period
increased 7 percent and 8 percent, respectively.
Washow commented, "High demand and improved equipment utilization
contributed to higher second quarter sales, while improvement in pricing
offset higher fuel costs."
FINANCIAL OVERVIEW
Long-term debt amounted to $31.3 million at June 30, 2004, compared to
$9.0 million at December 31, 2003. Debt represented 14.0 percent of total
capitalization at June 30, 2004, compared to 5.1 percent at December 31, 2003.
The increase in debt was due to recent acquisitions and increases in working
capital. Cash and cash equivalents were $16.0 million at June 30, 2004,
compared with $13.5 million at the end of 2003.
The weighted average number of common and common equivalent shares
outstanding at June 30, 2004, were 30.9 million compared to approximately
29.8 million in the prior year. Weighted average common and common equivalent
shares outstanding increased by 3.1 and 3.74 percent for the quarter and six
months ended June 30, 2004, respectively.
AMCOL's financial condition at June 30, 2004, included working capital of
approximately $111.0 million and a current ratio of 2.9-to-1, compared to
approximately $91.9 million and a current ratio of 3.0-to-1 at December 31,
2003. Accounts receivable increased to $86.6 million at June 30, 2004
compared with $61 million at December 31, 2003. This increase is commensurate
with growth in sales and greater European accounts receivable.
Through the first six months of 2004, AMCOL repurchased 183,400 shares of
its common stock at an aggregate cost of approximately $2.9 million, or an
average price of $15.70 per share. The Board of Directors approved a stock
repurchase authorization of $10 million at its meeting held May 13, 2004 all
of which remains available for stock repurchases as of this date.
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 Ameri-Co Logistics. AMCOL's common stock is
traded on the New York Stock Exchange under the symbol ACO.
AMCOL will hold an audio webcast at 11 a.m. EDT today with Larry Washow,
Gary Castagna and Jennifer Melsheimer to discuss additional details regarding
the Company's performance for the quarter and other forward-looking
information. The session may be accessed at http://www.amcol.com . The
webcast will be available for replay through the close of business on Friday,
July 30, 2004 at which time a transcript of the webcast will be posted on the
AMCOL website.
Financial tables follow.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except number of shares)
Six months ended Three months ended
June 30, June 30,
2004 2003 2004 2003
Net sales $218,995 $172,720 $117,028 $93,253
Cost of sales 165,511 130,900 88,080 70,057
Gross profit 53,484 41,820 28,948 23,196
General, selling and
administrative
expenses 35,143 29,223 17,847 14,929
Operating profit 18,341 12,597 11,101 8,267
Other income (expense):
Interest expense, net (390) (202) (311) (122)
Other income, net 82 164 39 132
(308) (38) (272) 10
Income before income
taxes and equity in
income of minority
interest and joint
ventures 18,033 12,559 10,829 8,277
Income taxes 5,679 4,269 3,410 2,814
Income before equity
in income of minority
interest and joint
ventures 12,354 8,290 7,419 5,463
Income from minority
interest and joint
ventures 469 349 321 246
Net income $12,823 $8,639 $7,740 $5,709
Weighted average
common shares
outstanding 29,091,621 28,051,675 29,090,587 28,108,456
Weighted average
common and common
equivalent shares
outstanding 30,859,545 29,745,805 30,835,691 29,896,941
Basic earnings per
share $0.44 $0.30 $0.27 $0.20
Diluted earnings per
share $0.42 $0.29 $0.25 $0.19
Dividends declared
per share $0.140 $0.070 $0.070 $0.040
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands, except number of shares)
June 30, December 31,
2004 2003
ASSETS
Cash $15,993 $13,525
Accounts receivable, net 86,642 60,997
Inventories 51,966 46,182
Income tax receivable - 8,445
Other current assets 14,496 9,147
Total current assets 169,097 138,296
Property, plant, equipment and
mineral rights 87,346 86,996
Investments in and advances to joint
ventures 13,432 13,068
Intangible assets 17,760 6,978
Other long-term assets 14,015 13,439
$301,650 $258,777
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $125 $844
Accounts payable 25,287 20,365
Income tax payable 3,355 -
Accrued liabilities 29,306 25,162
Total current liabilities 58,073 46,371
Long-term debt 31,331 9,006
Minority interest in subsidiaries 117 116
Other long-term obligations 19,787 18,386
19,904 18,502
Stockholders' equity 192,342 184,898
$301,650 $258,777
Common shares outstanding
at the end of the period 29,203,355 29,107,746
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Six Months Ended
June 30,
2004 2003
Cash flows from operating activities:
Net income $12,823 $8,639
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation, depletion, and
amortization 9,398 8,756
Increase in current assets (20,568) (17,221)
Decrease (increase) in
noncurrent assets (1,511) 35
Increase in current liabilities 8,371 1,353
Increase in noncurrent liabilities 1,135 240
Other 1,515 (155)
Net cash provided by operating
activities 11,163 1,647
Cash flows from investing activities:
Acquisition of land, depreciable
and intangible assets (7,446) (6,323)
Acquisitions (13,335) -
Other 1,629 (978)
Net cash used in investing
activities (19,152) (7,301)
Cash flows from financing activities:
Net change in outstanding debt 17,651 4,043
Dividends paid (4,091) (1,965)
Proceeds from exercise of stock options 746 1,085
Purchases of treasury stock (2,879) (1,593)
Net cash used in financing
activities 11,427 1,570
Effect of foreign currency rate
changes on cash (970) 1,597
Net increase (decrease) in cash and
cash equivalents 2,468 (2,487)
Cash and cash equivalents at
beginning of period 13,525 15,597
Cash and cash equivalents at end of
period $15,993 $13,110
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Quarter ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $60,325 $47,842
Shipping revenue 6,092 5,700
Net sales 66,417 100.0% 53,542 100.0% 12,875 24.0%
Cost of sales-product 46,838 37,345
Cost of sales-shipping 6,092 5,700
Cost of sales 52,930 79.7% 43,045 80.4%
Gross profit 13,487 20.3% 10,497 19.6% 2,990 28.5%
General, selling and
administrative exp. 5,249 7.9% 4,615 8.6% 634 13.7%
Operating profit 8,238 12.4% 5,882 11.0% 2,356 40.1%
ENVIRONMENTAL Quarter ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $41,406 $31,270
Shipping revenue 3,344 2,643
Net sales 44,750 100.0% 33,913 100.0% 10,837 32.0%
Cost of sales-product 27,057 19,596
Cost of sales-shipping 3,344 2,643
Cost of sales 30,401 67.9% 22,239 65.6%
Gross profit 14,349 32.1% 11,674 34.4% 2,675 22.9%
General, selling and
administrative exp. 8,197 18.3% 6,353 18.7% 1,844 29.0%
Operating profit 6,152 13.7% 5,321 15.7% 831 15.6%
TRANSPORTATION Quarter ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Net sales $10,058 100.0% $9,390 100.0% 668 7.1%
Cost of sales 8,946 88.9% 8,365 89.1%
Gross profit 1,112 11.1% 1,025 10.9% 87 8.5%
General, selling and
administrative exp. 661 6.6% 626 6.7% 35 5.6%
Operating profit $451 4.5% $399 4.3% 52 13.0%
CORPORATE Quarter ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Intersegment shipping
revenues $(4,197) $(3,592)
Intersegment shipping
costs (4,197) (3,592)
Gross profit - -
General, selling and
administrative exp. 2,848 2,415 433 17.9%
Nanocomposites 892 920 (28) -3.0%
Operating loss $(3,740) $(3,335) (405) -12.1%
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Six months ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $119,442 $93,903
Shipping revenue 11,030 9,816
Net sales 130,472 100.0% 103,719 100.0% 26,753 25.8%
Cost of sales-product 93,352 73,956
Cost of sales-shipping 11,030 9,816
Cost of sales 104,382 80.0% 83,772 80.8%
Gross profit 26,090 20.0% 19,947 19.2% 6,143 30.8%
General, selling and
administrative exp. 10,417 8.0% 9,148 8.8% 1,269 13.9%
Operating profit $15,673 12.0% $10,799 10.4% 4,874 45.1%
ENVIRONMENTAL Six months ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $71,473 $53,223
Shipping revenue 5,044 4,179
Net sales 76,517 100.0% 57,402 100.0% 19,115 33.3%
Cost of sales-product 46,228 33,353
Cost of sales-shipping 5,044 4,179
Cost of sales 51,272 67.0% 37,532 65.4%
Gross profit 25,245 33.0% 19,870 34.6% 5,375 27.1%
General, selling and
administrative exp. 16,014 20.9% 12,166 21.2% 3,848 31.6%
Operating profit $9,231 12.2% $7,704 13.4% 1,527 19.8%
TRANSPORTATION Six months ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Net sales $19,390 100.0% $18,187 100.0% 1,203 6.6%
Cost of sales 17,241 88.9% 16,184 89.0%
Gross profit 2,149 11.1% 2,003 11.0% 146 7.3%
General, selling and
administrative exp. 1,312 6.8% 1,228 6.8% 84 6.8%
Operating profit $837 4.3% $775 4.3% 62 8.0%
CORPORATE Six months ended June 30,
2004 2003 2004 vs. 2003
$ Change % Change
Intersegment shipping
revenues $(7,384) $(6,588)
Intersegment shipping
costs (7,384) (6,588)
Gross profit - -
General, selling and
administrative exp. 5,594 4,733 861 18.2%
Nanocomposites 1,806 1,948 (142) -7.3%
Operating loss $(7,400) $(6,681) (719) -10.8%
SOURCE AMCOL International Corp.
-0- 07/19/2004
/CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL
International Corp., +1-847-394-8730/
/Web site: http://www.amcol.com /
(ACO)
CO: AMCOL International Corp.
ST: Illinois
IN: MNG CHM ENV
SU: ERN CCA