Exhibit 99.1
AMCOL International (NYSE: ACO) Reports 23 Percent Increase in Diluted
Earnings Per Share Over Prior Year Third Quarter
ARLINGTON HEIGHTS, Ill., Oct. 18 /PRNewswire-FirstCall/ -- AMCOL
International Corp. (NYSE: ACO) today reported that third quarter net income
was $8.3 million, or $0.27 per diluted share, compared with $6.6 million, or
$.22 per diluted share, in the prior year quarter. The 2004 third quarter, as
compared with the prior year's third quarter, was positively impacted by
approximately $0.02 per diluted share due to a lower effective income tax
rate. AMCOL reported net sales of $121.5 million for the quarter ended
September 30, 2004, compared to $99.5 million for the same period in 2003.
Operating profit grew to $11.6 million compared with $9.9 million in the
prior-year period.
For the nine-month period ended September 30, 2004, net income was
$21.1 million, or $0.69 per diluted share, compared with $15.3 million, or
$.51 per diluted share, in the prior-year period. Net sales for the nine-
month period were $340.5 million compared to $272.2 million in the prior-year
period. Operating profit was $30.0 million compared with $22.5 million for
the 2003 period.
Larry Washow, president and chief executive officer, said, "Earnings in
the third quarter were held back by adverse weather conditions in the
Southeastern United States. While these circumstances affected the performance
in a number of environmental markets, the business prospects going forward are
quite positive."
Washow continued, "Even after considering the impact weather has had on
earnings, AMCOL is delivering on its plans of improved profitability and top-
line growth-posting a 25 percent increase in year-over-year nine-month
revenues. Results for our minerals segment were the bright spot for the third
quarter, in part related to the continued strong business levels in
metalcasting despite the announced slow-down in U.S. automotive production."
Washow added, "We are also making measurable progress building a broader
customer base and moving toward revenue mixes which we expect will drive long-
term growth in our Specialty Minerals Group."
Washow noted that AMCOL has recently completed the purchase of a plant in
Cartersville, Ga. from Unilever for $4.1 million. The plant will be used
initially for consolidation of several environmental operations in the
Southeastern U.S.
SEGMENT DISCUSSIONS
Minerals
The minerals segment, which accounted for approximately 55 percent of
consolidated net sales for the 2004 third quarter, reported a net sales
increase of approximately 22 percent, and approximately a 34 percent increase
in operating profit over the prior-year period. In year-over-year comparisons
for the first nine months, net sales increased approximately 24 percent, while
operating profit increased approximately 41 percent.
Environmental
The Company's environmental segment, which accounted for approximately 39
percent of AMCOL's net sales for the third quarter 2004, registered
approximately a 3 percent decrease in operating profit on approximately a 25
percent increase in net sales as compared with the third quarter of the
previous year. For the nine-months ended September 30, 2004, operating profit
increased approximately 9 percent while net sales increased approximately 30
percent from the prior-year period.
Transportation
AMCOL's transportation segment accounted for approximately 9 percent of
the Company's net sales, including inter-segment shipping revenue, for the
current year third quarter. The segment reported approximately a 10 percent
increase in operating profit, and approximately a 6 percent increase in net
sales in year-over-year comparisons for the third quarter. For the nine-month
period ended September 30, 2004, the segment reported a net sales increase of
approximately 6 percent, and an increase in operating profit of approximately
9 percent from the prior-year period.
FINANCIAL OVERVIEW
Long-term debt amounted to $29.8 million at September 30, 2004 compared to
$9.0 at December 31, 2003. Debt represented 13 percent of total
capitalization at September 30, 2004, compared to 5 percent at December 31,
2003. The increase in debt relates to acquisitions and increases in working
capital. Cash and cash equivalents were $12.9 million at September 30, 2004,
compared with $13.5 million at the end of 2003.
The weighted average number of common and common equivalent shares
outstanding at September 30, 2004 was 30.8 million compared to approximately
29.8 million at the end of the prior year. Weighted average common and common
equivalent shares outstanding remained the same and increased three percent
for the quarter and nine months ended September 30, 2004, respectively.
AMCOL's financial condition at September 30, 2004 included working capital
of approximately $116.2 million and a current ratio of 3.0-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 $88.3 million at September 30, 2004
compared with $61.0 million at December 31, 2003. This increase is
commensurate with growth in sales and acquisitions.
AMCOL did not repurchase any Company stock in the third quarter of 2004.
Through the first nine 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.
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.
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,
Oct. 29, 2004, at which time a transcript of the Webcast will be posted on the
AMCOL website.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except number of shares)
Nine months ended Three months ended
September 30, September 30,
2004 2003 2004 2003
Net sales $340,535 $272,186 $121,540 $99,466
Cost of sales 257,013 205,001 91,502 74,101
Gross profit 83,522 67,185 30,038 25,365
General, selling and
administrative expenses 53,557 44,646 18,414 15,423
Operating profit 29,965 22,539 11,624 9,942
Other income (expense):
Interest expense, net (587) (293) (197) (91)
Other income, net (69) 271 (151) 107
(656) (22) (348) 16
Income before income
taxes and equity in
income of minority
interest and joint
ventures 29,309 22,517 11,276 9,958
Income taxes 8,974 7,656 3,295 3,387
Income before equity
in income of minority
interest and joint
ventures 20,335 14,861 7,981 6,571
Income from minority
interest and joint
ventures 805 410 336 61
Net income $21,140 $15,271 $8,317 $6,632
Weighted average
common shares
outstanding 29,110,751 28,176,170 29,148,594 28,421,103
Weighted average
common and common
equivalent shares
outstanding 30,774,503 29,841,379 30,778,272 30,410,215
Basic earnings per
share $0.73 $0.54 $0.29 $0.23
Diluted earnings per
share $0.69 $0.51 $0.27 $0.22
Dividends declared
per share $0.230 $0.110 $0.090 $0.040
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands, except number of shares)
September 30, December 31,
2004 2003
ASSETS
Cash $12,860 $13,525
Accounts receivable, net 88,348 60,997
Inventories 55,299 46,182
Income tax receivable - 8,445
Other current assets 18,202 9,147
Total current assets 174,709 138,296
Property, plant, equipment and mineral
rights 87,163 86,996
Investments in and advances to joint ventures 14,871 13,068
Intangible assets 17,701 6,978
Other long-term assets 13,659 13,439
$308,103 $258,777
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $63 $844
Accounts payable 19,529 20,365
Income tax payable 4,812 -
Accrued liabilities 34,132 25,162
Total current liabilities 58,536 46,371
Long-term debt 29,766 9,006
Minority interest in subsidiaries 123 116
Other long-term obligations 20,389 18,386
20,512 18,502
Stockholders' equity 199,289 184,898
$308,103 $258,777
Common shares outstanding
at the end of the period 29,344,254 29,107,746
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Nine months ended
September 30,
2004 2003
Cash flows from operating activities:
Net income $21,140 $15,271
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and amortization 14,342 13,572
Increase in current assets (29,001) (23,590)
Decrease (increase) in
noncurrent assets (1,466) (992)
Increase in current liabilities 8,803 10,913
Increase in noncurrent liabilities 1,737 804
Other 914 (589)
Net cash provided by operating
activities 16,469 15,389
Cash flows from investing activities:
Acquisition of land, depreciable
and intangible assets (12,077) (10,263)
Acquisitions (13,335) (2,957)
Other 878 797
Net cash used in investing activities (24,534) (12,423)
Cash flows from financing activities:
Net change in outstanding debt 16,024 (4,067)
Dividends paid (6,731) (3,107)
Proceeds from exercise of stock options 1,222 1,794
Purchases of treasury stock (2,879) (1,593)
Net cash used in financing activities 7,636 (6,973)
Effect of foreign currency rate
changes on cash (236) 1,857
Net increase (decrease) in cash and
cash equivalents (665) (2,150)
Cash and cash equivalents at
beginning of period 13,525 15,597
Cash and cash equivalents at end of period $12,860 $13,447
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Quarter ended September 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $60,603 $50,821
Shipping revenue 6,513 4,390
Net sales 67,116 100.0% 55,211 100.0% 11,905 21.6%
Cost of sales
- product 46,694 40,051
Cost of sales
- shipping 6,513 4,390
Cost of sales 53,207 79.3% 44,441 80.5%
Gross profit 13,909 20.7% 10,770 19.5% 3,139 29.1%
General, selling
and administrative
exp. 5,811 8.7% 4,715 8.5% 1,096 23.2%
Operating profit 8,098 12.1% 6,055 11.0% 2,043 33.7%
ENVIRONMENTAL Quarter ended September 30,
2004 2003 2004 vs. 2003
$Change %Change
Product sales $44,210 $35,064
Shipping revenue 3,561 3,203
Net sales 47,771 100.0% 38,267 100.0% 9,504 24.8%
Cost of sales
- product 29,293 21,593
Cost of sales
- shipping 3,561 3,203
Cost of sales 32,854 68.8% 24,796 64.8%
Gross profit 14,917 31.2% 13,471 35.2% 1,446 10.7%
General, selling
and administrative
exp. 7,953 16.6% 6,300 16.5% 1,653 26.2%
Operating profit 6,964 14.6% 7,171 18.7% (207) -2.9%
TRANSPORTATION
Quarter ended September 30,
2004 2003 2004 vs. 2003
$Change % Change
Net sales $10,979 100.0% $10,367 100.0% 612 5.9%
Cost of sales 9,765 88.9% 9,243 89.2%
Gross profit 1,214 11.1% 1,124 10.8% 90 8.0%
General, selling
and administrative
exp. 691 6.3% 647 6.2% 44 6.8%
Operating profit $523 4.8% $477 4.7% 46 9.6%
CORPORATE
Quarter ended September 30,
2004 2003 2004 vs. 2003
$ Change % Change
Intersegment
shipping revenues $(4,326) $(4,379)
Intersegment
shipping costs (4,326) (4,379)
Gross profit - -
General, selling
and administrative
exp. 3,045 2,802 243 8.7%
Nanocomposites 916 959 (43) -4.5%
Operating loss $(3,961) $(3,761) (200) -5.3%
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Nine months ended September 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $180,045 $144,724
Shipping revenue 17,543 14,206
Net sales 197,588 100.0% 158,930 100.0% 38,658 24.3%
Cost of sales
- product 140,046 114,007
Cost of sales
- shipping 17,543 14,206
Cost of sales 157,589 79.8% 128,213 80.7%
Gross profit 39,999 20.2% 30,717 19.3% 9,282 30.2%
General, selling
and administrative
exp. 16,228 8.2% 13,863 8.7% 2,365 17.1%
Operating
profit $23,771 12.0% $16,854 10.6% 6,917 41.0%
ENVIRONMENTAL Nine months ended September 30,
2004 2003 2004 vs. 2003
$ Change % Change
Product sales $115,683 $88,287
Shipping revenue 8,605 7,382
Net sales 124,288 100.0% 95,669 100.0% 28,619 29.9%
Cost of sales
- product 75,521 54,946
Cost of sales
- shipping 8,605 7,382
Cost of sales 84,126 67.7% 62,328 65.1%
Gross profit 40,162 32.3% 33,341 34.9% 6,821 20.5%
General, selling
and administrative
exp. 23,967 19.3% 18,466 19.3% 5,501 29.8%
Operating
profit $16,195 13.1% $14,875 15.5% 1,320 8.9%
TRANSPORTATION Nine months ended September 30,
2004 2003 2004 vs. 2003
$Change % Change
Net sales $30,369 100.0% $28,554 100.0% 1,815 6.4%
Cost of sales 27,006 88.9% 25,427 89.0%
Gross profit 3,363 11.1% 3,127 11.0% 236 7.5%
General, selling
and administrative
exp. 2,003 6.6% 1,875 6.6% 128 6.8%
Operating
profit $1,360 4.5% $1,252 4.4% 108 8.6%
CORPORATE Nine months ended September 30,
2004 2003 2004 vs. 2003
$ Change % Change
Intersegment
shipping
revenues $(11,710) $(10,967)
Intersegment
shipping costs (11,710) (10,967)
Gross profit - -
General, selling
and administrative
exp. 8,639 7,535 1,104 14.7%
Nanocomposites 2,722 2,907 (185) -6.4%
Operating
loss $(11,361) $(10,442) (919) -8.8%
SOURCE AMCOL International Corp.
-0- 10/18/2004
/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: CHM ENV
SU: ERN CCA