Exhibit 99.1
AMCOL INTERNATIONAL (NYSE: ACO) REPORTS 34 PERCENT INCREASE IN FOURTH QUARTER
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OVER 2003
ARLINGTON HEIGHTS, Ill., Jan. 18 /PRNewswire-FirstCall/ -- AMCOL
International Corp. (NYSE: ACO) today reported its unaudited results for the
fourth quarter and year ended December 31, 2004. Income from continuing
operations was $6.3 million, or $0.20 per diluted share, for the fourth quarter
of 2004 compared with $4.6 million, or $0.15 per diluted share, in the prior
year period. As compared with the prior year's fourth quarter, the 2004 fourth
quarter was positively impacted by approximately $0.04 per diluted share from
continuing operations due to a lower effective income tax rate. This release
should be read in conjunction with the attached unaudited condensed consolidated
financial statements, including the footnote detailing the reclassification of
certain amounts for the 2003 periods to conform to the current year
presentation.
Net sales in the fourth quarter of 2004 were $111.6 million compared to
$93.6 million for the same period in 2003. Operating profit was $7.1 million
compared to $6.4 million in the fourth quarters of 2004 and 2003, respectively.
Income from continuing operations for 2004 was $27.5 million, or $0.89 per
diluted share, compared with $19.9 million, or $0.67 per diluted share, for the
prior year. Weighted average common and common equivalent shares increased by 3
percent from 2003. Net sales were $458.5 million for the year ended December 31,
2004, compared with $372.0 million in the prior year. Operating profit was $37.0
million in 2004 compared with $28.9 million in 2003.
"AMCOL International completed a very good year, with sales in excess of
$450 million and operating profit of $37 million, increases of approximately 23
percent and 28 percent respectively over 2003. While it is gratifying to have
achieved these results, our operating profit increase from continuing operations
in the fourth quarter did not keep pace with our increase in sales revenues,"
said Larry Washow, AMCOL president and chief executive officer. "This resulted
in part from the increase in raw material, energy and transportation costs. It
is our objective, however, to achieve earnings growth in excess of sales growth
as we go forward."
Washow noted, "Our minerals segment continued to be AMCOL's largest sales
producer with 57 percent of our 2004 total. Metalcasting remains our largest
group with increased sales in the face of a stable U.S. market. This group
continued to expand globally in our traditional market, but as a leader in the
metalcasting industry, product line expansion is a natural stepping stone to
furthering this group's sales."
Washow added, "Also in the minerals segment, our detergent group had a
weaker fourth quarter as customer product changes impacted our revenues. Margins
in the pet products group were also down as packaging and freight costs
negatively impacted our results."
Washow continued, "Our environmental segment enjoyed another year of
growth, reaching a new level of profitability and sales. With European
operations as a major contributor, the environmental segment benefited from
internal growth as well as the European lining technology acquisition made in
the first quarter of 2004, which contributed immediately to our top line and
positioned us for further growth."
Washow said, "Our lining technologies and building materials groups
continue to grow their market presence around the world. Demand within our
targeted markets, technology introductions and increasing performance for our
environmental products and services have led to another very positive year for
these groups. The oilfield services group did not meet expectations, being
hampered in part by the transition of the acquisition completed in early 2004.
Critically important to this group's future growth are sales of improved
filtration technology to offshore production platforms and onshore pipelines."
Washow noted that AMCOL's transportation segment also completed a strong
year, in spite of increased diesel fuel costs.
Washow concluded, "We have set clear, attainable goals for 2005. With our
solid foundation in diverse products and our aggressive global penetration, we
expect AMCOL's returns should continue to grow."
Net income was $6.3 million, or $ 0.20 per diluted share, for the fourth
quarter of 2004 compared with $13.6 million, or $0.44 per diluted share, in the
prior year period. The 2003 fourth quarter included $8.9 million of income from
discontinued operations, or $0.29 per diluted share. Net income for 2004 was
$27.5 million, or $0.89 per diluted share, compared with $28.9 million or $0.97
per diluted share, for the prior year. Net income for 2003 includes $8.9 million
of income from discontinued operations, or $0.30 per diluted share. This income
resulted from income tax benefits relating to the Company's discontinued U.K.
metalcasting business that was sold in 2001.
SEGMENT DISCUSSIONS
Minerals
The minerals segment, which accounted for approximately 57 percent of
consolidated net sales for 2004, reported a sales increase of 21 percent, and a
29 percent increase in operating profit. Fourth quarter sales and operating
profits for the minerals segment were up 13 percent and down 1 percent,
respectively.
Environmental
The Company's environmental segment, which accounted for approximately 37
percent of AMCOL's consolidated net sales for 2004, registered an operating
profit of $20.8 million compared with an operating profit of $17.9 million in
2003, on a sales increase of 30 percent.
Transportation
AMCOL's transportation operations, which accounted for approximately 9
percent of the Company's consolidated net sales, including inter-segment
shipping revenue, reported an 8 percent increase in sales for the year compared
to 2003. Operating profit for 2004 was up 11 percent over the prior year.
FINANCIAL OVERVIEW
Total long-term and short-term debt amounted to $34.3 million at December
31, 2004, compared with $9.0 million at December 31, 2003. Debt was 14 percent
of total capitalization as of December 31, 2004, compared with 4.7 percent as of
December 31, 2003. Cash and cash equivalents were $17.6 million at the end of
2004 compared with $13.5 million in 2003.
For the year 2004, general, selling and administrative expenses were 17
percent of net sales compared with 18 percent in 2003. In the fourth quarter,
general, selling and administrative expenses for the environmental segment were
reduced by approximately $1.2 million due to a change in the estimate of a
long-term incentive compensation accrual. Also in this quarter, as further
detailed in the unaudited financial statements accompanying this earnings
release, the Company changed its classification of commissions earned by
independent sales representatives from a sales deduction to general, selling and
administrative expenses.
Net interest expense for 2004 was $0.8 million compared with $0.3 million
in the previous year.
Shares outstanding at December 31, 2004, were approximately 29.4 million
compared with approximately 29.1 million at December 31, 2003. Weighted average
common and common equivalent shares outstanding increased by 3 percent for the
full year and remained the same during the fourth quarter of 2004.
For the year, the Company repurchased approximately 183 thousand shares of
its common stock at an aggregate cost of $2.9 million, or an average price of
$15.70 per share. Approximately $10 million remains available in the stock
repurchase program approved by the Board of Directors in May 2004.
AMCOL's financial condition at December 31, 2004, included working capital
of approximately $122.5 million and a current ratio of 3.0-to-1. Working capital
was $87.0 million and the current ratio was 2.7-to-1 at December 31, 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 Corp., 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
http://www.amcol.com. AMCOL's fourth quarter conference call will be available
live on Jan. 18, 2005 at 11 a.m. EST on the AMCOL website.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except number of shares)
Twelve months ended Three months ended
December 31, December 31,
---------------------------- ----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Continuing Operations
Net sales (1) $ 458,511 $ 371,966 $ 111,603 $ 93,567
Cost of sales 342,584 274,415 85,571 69,414
Gross profit (1) 115,927 89,551 26,032 22,366
General, selling and
administrative
expenses (1) 78,894 68,614 18,964 17,755
Operating profit 37,033 28,937 7,068 6,398
Other income (expense):
Interest income
(expense), net (825) (280) (238) 13
Other income, net 225 604 294 333
(600) 324 56 346
Income before
income taxes and
equity in income
of minority
interest and 36,433 29,261 7,124 6,744
joint ventures
Income taxes 10,163 9,946 1,189 2,290
Income before
equity in income
of minority
interest and
joint ventures 26,270 19,315 5,935 4,454
Income from minority
interest and joint
ventures 1,180 600 375 190
Income from
continuing
operations $ 27,450 $ 19,915 $ 6,310 $ 4,644
Discontinued
Operations
Gain on 2001 disposal
(including income
tax benefits of $8,741
in 2003) 0 8,950 0 8,950
Net income $ 27,450 $ 28,865 $ 6,310 $ 13,594
Earnings per share
Weighted average
common shares
outstanding 29,140,892 28,357,009 29,230,659 28,893,630
Weighted average
common and common
equivalent shares
outstanding 30,729,645 29,849,578 30,836,292 30,707,027
Basic earnings per
share
Continuing
operations $ 0.94 $ 0.70 $ 0.22 $ 0.16
Gain on disposal 0.00 0.32 0.00 0.31
Net income $ 0.94 $ 1.02 $ 0.22 $ 0.47
Diluted earnings per
share
Continuing
operations $ 0.89 $ 0.67 $ 0.20 $ 0.15
Gain on disposal 0.00 0.30 0.00 0.29
Net income $ 0.89 $ 0.97 $ 0.20 $ 0.44
Dividends declared
per share $ 0.32 $ 0.16 $ 0.09 $ 0.05
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands, except number of shares)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Cash $ 17,594 $ 13,525
Accounts receivable, net 86,128 60,997
Inventories 64,213 46,182
Income tax receivable - 8,445
Other current assets 14,555 9,147
Total current assets 182,490 138,296
Property, plant, equipment and
mineral rights 93,844 86,996
Investments in and advances to joint
ventures 15,023 13,068
Intangible assets 19,253 6,978
Assets held for sale 752 0
Other long-term assets 13,780 13,439
$ 325,142 $ 258,777
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ - $ 844
Accounts payable 25,473 20,365
Income tax payable 1,247 -
Accrued liabilities 33,292 30,142
Total current liabilities 60,012 51,351
Long-term debt 34,295 9,006
Minority interest in subsidiaries 5 116
Other long-term obligations 19,848 13,815
19,853 13,931
Stockholders' equity 210,982 184,489
$ 325,142 $ 258,777
Common shares outstanding
at the end of the period 29,395,755 29,107,746
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Twelve months ended
December 31,
---------------------------
2004 2003
------------ ------------
Cash flows from operating activities:
Income from continuing operations $ 27,450 $ 19,915
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation, depletion, and
amortization 19,181 18,160
Decrease (increase) in current
assets (32,152) (20,671)
Decrease (increase) in noncurrent
assets (1,810) (3,467)
Increase (decrease) in current
liabilities 10,366 10,484
Increase (decrease) in
noncurrent liabilities 1,196 937
Other 2,402 (360)
Net cash provided by operating
activities 26,633 24,998
Cash flows from investing activities:
Acquisition of land, depreciable
and intangible assets (21,400) (15,795)
Acquisitions (14,335) (7,144)
Other 777 1,401
Net cash used in investing
activities (34,958) (21,538)
Cash flows from financing activities:
Net change in outstanding debt 20,490 (8,324)
Dividends paid (9,377) (4,560)
Proceeds from exercise of stock
options 1,090 5,287
Purchases of treasury stock (2,879) (1,593)
Net cash used in financing
activities 9,324 (9,190)
Effect of foreign currency rate
changes on cash 3,070 3,658
Net increase (decrease) in cash and
cash equivalents 4,069 (2,072)
Cash and cash equivalents at
beginning of period 13,525 15,597
Cash and cash equivalents at end of
period $ 17,594 $ 13,525
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS
Quarter ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Product sales (1) $ 59,517 $ 52,796
Shipping revenue 5,525 4,558
Net sales (1) 65,042 100.0% 57,354 100.0% 7,688 13.4%
Cost of sales-product 47,680 41,277
Cost of sales-shipping 5,525 4,558
Cost of sales 53,205 81.8% 45,835 79.9%
Gross profit (1) 11,837 18.2% 11,519 20.1% 318 2.8%
General, selling and
administrative exp. (1) 5,327 8.2% 4,950 8.6% 377 7.6%
Operating profit 6,510 10.0% 6,569 11.5% (59) -0.9%
ENVIRONMENTAL
Quarter ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Product sales (1) $ 38,575 $ 28,115
Shipping revenue 1,757 2,174
Net sales (1) 40,332 100.0% 30,289 100.0% 10,043 33.2%
Cost of sales-product 25,488 16,395
Cost of sales-shipping 1,757 2,174
Cost of sales 27,245 67.6% 18,569 61.3%
Gross profit (1) 13,087 32.4% 11,720 38.7% 1,367 11.7%
General, selling and
administrative exp. (1) 8,529 21.1% 8,740 28.9% (211) -2.4%
Operating profit 4,558 11.3% 2,980 9.8% 1,578 53.0%
TRANSPORTATION
Quarter ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Net sales $ 10,281 100.0% $ 8,995 100.0% 1,286 14.3%
Cost of sales 9,173 89.2% 8,081 89.8%
Gross profit 1,108 10.8% 914 10.2% 194 21.2%
General, selling and
administrative exp. 748 7.3% 619 6.9% 129 20.8%
Operating profit $ 360 3.5% $ 295 3.4% 65 22.0%
CORPORATE
Quarter ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Intersegment shipping
revenues $ (4,052) $ (3,071)
Intersegment shipping
costs (4,052) (3,071)
Gross profit - -
General, selling and
administrative exp. 3,427 2,555 872 34.1%
Nanocomposites 933 891 42 4.7%
Operating loss $ (4,360) $ (3,446) (914) -26.5%
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS
Twelve months ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Product sales (1) $ 240,403 $ 198,340
Shipping revenue 23,068 18,764
Net sales (1) 263,471 100.0% 217,104 100.0% 46,367 21.4%
Cost of sales-product 187,728 155,284
Cost of sales-shipping 23,068 18,764
Cost of sales 210,796 80.0% 174,048 80.2%
Gross profit (1) 52,675 20.0% 43,056 19.8% 9,619 22.3%
General, selling and
administrative exp. (1) 22,394 8.5% 19,633 9.0% 2,761 14.1%
Operating profit $ 30,281 11.5% $ 23,423 10.8% 6,858 29.3%
ENVIRONMENTAL
Twelve months ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Product sales (1) $ 159,790 $ 121,795
Shipping revenue 10,362 9,556
Net sales (1) 170,152 100.0% 131,351 100.0% 38,801 29.5%
Cost of sales-product 101,009 71,341
Cost of sales-shipping 10,362 9,556
Cost of sales 111,371 65.5% 80,897 61.6%
Gross profit (1) 58,781 34.5% 50,454 38.4% 8,327 16.5%
General, selling and
administrative exp. (1) 38,028 22.3% 32,599 24.8% 5,429 16.7%
Operating profit $ 20,753 12.3% $ 17,855 13.6% 2,898 16.2%
TRANSPORTATION
Twelve months ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Net sales $ 40,650 100.0% $ 37,549 100.0% 3,101 8.3%
Cost of sales 36,179 89.0% 33,508 89.2%
Gross profit 4,471 11.0% 4,041 10.8% 430 10.6%
General, selling and
administrative exp. 2,751 6.8% 2,494 6.6% 257 10.3%
Operating profit $ 1,720 4.2% $ 1,547 4.1% 173 11.2%
CORPORATE
Twelve months ended December 31, 2004 vs. 2003
-------------------------------------------------- -----------------------
2004 2003 $Change %Change
----------------------- ----------------------- ---------- ----------
Intersegment shipping
revenues $ (15,762) $ (14,038)
Intersegment shipping
costs (15,762) (14,038)
Gross profit - -
General, selling and
administrative exp. 12,066 10,090 1,976 19.6%
Nanocomposites 3,655 3,798 (143) -3.8%
Operating loss $ (15,721) $ (13,888) (1,833) -13.2%
(1) Net sales in period prior to the fiscal year and quarter ended December 31,
2004 were reported net of commissions earned by independent sales
representatives. Effective for the fiscal year and quarter ended December
31, 2004, these commissions are included in general, selling and
administrative expenses. Thus, for the fiscal year and quarter ended
December 31, 2003, these commissions have been reclassified to conform to
the current year accounting presentation. This change in accounting
presentation did not impact reported net income or earnings per share.
SOURCE AMCOL International Corp.
-0- 01/18/2005
/CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL
International Corp., +1-847-394-8730/
/Web site: http://www.amcol.com /