Exhibit 99.1
AMCOL INTERNATIONAL (NYSE: ACO) REPORTS 44 PERCENT INCREASE IN
FIRST QUARTER DILUTED EARNINGS PER SHARE OVER 2004 FIRST QUARTER
ARLINGTON HEIGHTS, Ill., April 19 /PRNewswire-FirstCall/ -- AMCOL
International Corp. (NYSE: ACO) today reported 2005 first quarter net income of
$7.0 million or $0.23 per diluted share, compared with $5.1 million or $.16 per
diluted share in the same prior-year period. Net sales rose 17 percent to $122.1
million for the period ended March 31, 2005, compared to $104.2 million for the
period in 2004. This release should be read in conjunction with the attached
unaudited condensed consolidated financial statements.
Larry Washow, AMCOL president and chief executive officer said, "The first
quarter of 2005 has been challenging, but one in which we delivered strong
earnings growth. AMCOL is pleased by our environmental segment's improved
margins this quarter. We have seen improvement in several of the markets that
were difficult last year. Also a contributor to this segment's operating margin
improvement was our oilfield services group, which is now performing closer to
our original expectations."
Washow noted, "In our minerals segment, net sales increased, but we did not
see a similar operating profit increase. We are in the midst of adjusting
selling prices to reflect the continuing cost escalation of raw materials,
energy and transportation. The highlight of the minerals group was our Asia
Pacific operations, which reported not only strong sales, but good operating
margins as well."
"Another positive during the quarter was the contribution from our overseas
joint ventures. These investments, particularly in India and Japan, contributed
$0.02 per share to earnings this quarter, up from less than $0.01 in 2004.
Earnings were also positively impacted by $0.03 per share due to a lower
effective tax rate," Washow commented.
Washow continued, "During the first quarter, we have felt significant
pressures on our selling, general and administrative costs arising from the
impact of Sarbanes-Oxley, increased compensation and benefits, and mineral
development expenditures. We will continue to evaluate our selling, general and
administrative expenses, aligning them with our expectations for revenue
growth."
FINANCIAL OVERVIEW
Long-term debt amounted to $42.1 million at March 31, 2005 compared to $34.3
million at December 31, 2004. Debt represented 16 percent of total
capitalization at March 31, 2005, compared to 13 percent at December 31, 2004.
Cash and cash equivalents were $19.5 million at March 31, 2005 compared with
$17.6 million at the end of 2004.
General, selling and administrative expenses were $21.4 million in the 2005
first quarter, an increase of $2.0 million or 10 percent over the 2004 period.
The Company's effective tax rate was 19.1 percent for the first quarter of
2005 versus 31.5 percent for the same period in 2004. The change in the rate
favorably impacted earnings by $0.03 per share, and largely resulted from
changes in estimates of taxes owed. Had these changes in estimates not been
made, the effective tax rate would have been 26.5 percent for the first quarter
of 2005.
The weighted average number of common and common equivalent shares of 30.8
million decreased by approximately 217 thousand shares, or approximately 1
percent, from March 31, 2004.
During the first quarter of 2005, the Company paid approximately $1.6
million to former owners of acquired businesses. The payments were owed because
the operating performance of the businesses met profit targets included in
earn-out provisions included in the purchase agreements.
During the first quarter of 2005, the Company did not repurchase any of its
common stock. $10 million remains available in the stock repurchase program
approved by the Board of Directors in May 2004.
AMCOL's financial condition at March 31, 2005 included working capital of
approximately $139.7 million and a current ratio of 3.3-to-1 compared to
approximately $129.4 million and a ratio of 3.1-to-1 at December 31, 2004.
Minerals
The minerals segment, which accounted for approximately 60 percent of
AMCOL's consolidated net sales for the first quarter of 2005, reported a sales
increase of 14 percent and an operating profit increase of 5 percent over the
prior-year period.
Environmental
AMCOL's environmental segment, which accounted for 35 percent of the
Company's consolidated net sales for the first quarter of 2005, reported a 26
percent increase in sales and a 67 percent increase in operating profit in
year-over-year comparisons for the first quarter.
Transportation
AMCOL's transportation segment, which accounted for 9 percent of the
Company's consolidated net sales, including inter-segment shipping revenue,
reported an 18 percent increase in sales and a 48 percent increase in operating
profit for the 2005 first quarter.
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
http://www.amcol.com. AMCOL's first quarter conference call will be available
live today at 11 a.m. EDT on the AMCOL website.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except share data)
Three Months Ended
March 31,
----------------------------
2005 2004
------------ ------------
Net sales (1) $ 122,050 $ 104,154
Cost of sales 92,370 77,431
Gross profit (1) 29,680 26,723
General, selling and administrative
expenses (1) 21,445 19,483
Operating profit 8,235 7,240
Other income (expense):
Interest expense, net (361) (79)
Other, net (105) 43
(466) (36)
Income before income taxes and equity
in income of joint ventures 7,769 7,204
Income tax expense 1,484 2,269
Income before equity in income of
joint ventures 6,285 4,935
Income from joint ventures 667 148
Net income $ 6,952 $ 5,083
Weighted average common shares
outstanding 29,333,627 29,092,656
Weighted average common and common
equivalent shares outstanding 30,769,482 30,986,319
Basic earnings per share $ 0.24 $ 0.17
Diluted earnings per share $ 0.23 $ 0.16
Dividends declared per share $ 0.090 $ 0.070
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands, except share data)
March 31, December 31,
2005 2004
------------ ------------
(unaudited) *
ASSETS
Current assets:
Cash $ 19,501 $ 17,594
Accounts receivable, net 91,152 88,342
Inventories 68,909 63,882
Prepaid expenses 8,087 7,111
Income taxes receivable 8,394 9,126
Current deferred tax assets 4,477 4,293
Assets held for sale 543 752
Total current assets 201,063 191,100
Investment in and advances to joint
ventures 15,875 15,023
Property, plant, equipment, and
mineral rights and reserves:
Land and mineral rights 11,833 12,019
Depreciable assets 243,482 247,280
255,315 259,299
Less: accumulated depreciation 162,975 165,658
92,340 93,641
Other assets:
Goodwill 19,139 19,225
Intangible assets, net 3,517 3,802
Deferred tax assets 7,587 6,444
Other assets 9,110 7,207
39,353 36,678
$ 348,631 $ 336,442
March 31, December 31,
2005 2004
------------ ------------
(unaudited) *
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 31,566 25,474
Accrued liabilities 29,760 36,207
Total current liabilities 61,326 61,681
Long-term debt 42,116 34,295
Minority interests in subsidiaries 125 5
Deferred compensation 6,295 5,872
Other liabilities 11,981 12,655
18,401 18,532
Stockholders' equity:
Common stock 320 320
Additional paid in capital 70,791 69,763
Retained earnings 158,662 154,366
Accumulated other comprehensive income 13,521 14,905
243,294 239,354
Less:
Treasury stock 16,506 17,420
226,788 221,934
$ 348,631 $ 336,442
(*) Condensed from audited financial statements.
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
Three Months Ended
March 31,
----------------------------
2005 2004
------------ ------------
Cash flow from operating activities:
Net income $ 6,952 $ 5,083
Adjustments to reconcile from net income
to net cash provided by (used in)
operating activities:
Depreciation, depletion, and amortization 5,489 5,279
Changes in assets and liabilities,
net of effects of acquisitions:
Increase in current assets (7,290) (16,380)
Increase in noncurrent assets (3,059) (1,408)
Increase (decrease) in current
liabilities (199) 2,783
Increase (decrease) in noncurrent
liabilities (251) 824
Other (184) 799
Net cash provided by (used in)
operating activities 1,458 (3,021)
Cash flow from investing activities:
Acquisition of land, mineral rights, and
depreciable assets (3,525) (3,242)
Acquisitions, net of cash (1,632) (13,221)
Other 1,129 583
Net cash used in
investing activities (4,028) (15,881)
Cash flow from financing activities:
Net change in outstanding debt 7,821 17,138
Proceeds from sales of treasury stock 550 504
Purchases of treasury stock - (196)
Dividends paid (2,656) (2,047)
Net cash provided by
financing activities 5,715 15,399
Effect of foreign currency rate changes on cash (1,238) 396
Net decrease in cash and cash equivalents 1,907 (3,106)
Cash and cash equivalents at beginning of period 17,594 13,525
Cash and cash equivalents at end of period $ 19,501 $ 10,419
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
Three Months Ended March 31,
---------------------------------------------------------------
Minerals 2005 2004 2005 vs. 2004
----------------------- ------------------- ------------------- -------------------
(Dollars in Thousands)
Net sales (1) $ 73,448 100.0% $ 64,337 100.0% $ 9,111 14.2%
Cost of sales 59,974 81.7% 51,452 80.0%
Gross profit (1) 13,474 18.3% 12,885 20.0% 589 4.6%
General, selling
and administrative
expenses (1) 5,679 7.7% 5,450 8.5% 229 4.2%
Operating profit 7,795 10.6% 7,435 11.5% 360 4.8%
Three Months Ended March 31,
---------------------------------------------------------------
Environmental 2005 2004 2005 vs. 2004
----------------------- ------------------- ------------------- -------------------
(Dollars in Thousands)
Net sales (1) $ 42,304 100.0% $ 33,672 100.0% $ 8,632 25.6%
Cost of sales 27,444 64.9% 20,871 62.0%
Gross profit (1) 14,860 35.1% 12,801 38.0% 2,059 16.1%
General, selling
and administrative
expenses (1) 9,723 23.0% 9,722 28.9% 1 0.0%
Operating profit 5,137 12.1% 3,079 9.1% 2,058 66.8%
Three Months Ended March 31,
---------------------------------------------------------------
Transportation 2005 2004 2005 vs. 2004
----------------------- ------------------- ------------------- -------------------
(Dollars in Thousands)
Net sales $ 10,985 100.0% $ 9,332 100.0% $ 1,653 17.7%
Cost of sales 9,639 87.7% 8,295 88.9%
Gross profit 1,346 12.3% 1,037 11.1% 309 29.8%
General, selling
and administrative
expenses 773 7.0% 651 7.0% 122 18.7%
Operating profit 573 5.3% 386 4.1% 187 48.4%
Three Months Ended March 31,
---------------------------------------------------------------
Corporate 2005 2004 2005 vs. 2004
----------------------- ------------------- ------------------- -------------------
(Dollars in Thousands)
Intersegment shipping
sales $ (4,687) $ (3,187)
Intersegment shipping
costs (4,687) (3,187)
Gross profit - -
Corporate general,
selling and
administrative expenses 4,361 2,746 1,615 58.8%
Nanocomposite business
development expenses 909 914 (5) -0.5%
Operating loss (5,270) (3,660) (1,610) 44.0%
(1) Net sales in periods prior to the quarter ended March 31, 2005 were
reported net of certain deductions relating to product liability,
warranty and royalty expenses. Effective for the quarter ended March 31,
2005, these deductions are included in general, selling, and
administrative expenses. Thus, for the quarter ended March 31, 2004,
these deductions 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- 04/19/2005
/CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL
International Corp., +1-847-394-8730/
/First Call Analyst: /
/FCMN Contact: jennifer.melsheimer@amcol.com /
/Web site: http://www.amcol.com /