UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | October 9, 2012 |
| Oil-Dri Corporation of America |
|
(Exact name of registrant as specified in its charter) |
| Delaware | 001-12622 | 36-2048898 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
410 North Michigan Avenue Suite 400 Chicago, Illinois |
60611-4213 | |
| (Address of principal executive offices) | (Zip Code) |
| Registrant’s telephone number, including area code | (312) 321-1515 |
|
(Former name or former address, if changed since last report.)
| |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item2.02 | Results of Operations and Financial Condition. |
On October 11, 2012, Oil-Dri Corporation of America (the “Registrant”) issued a press release announcing its results of operations for its fourth quarter and fiscal year ended July 31, 2012. A copy of the press release is attached as Exhibit 99.1 and the information contained therein is incorporated herein by reference. The information contained in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), and it shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Fiscal 2013 Annual Incentive Plan. At its regular meeting on October 9, 2012, the Compensation Committee of the Board of Directors of the Registrant approved the performance measures and targets to be used to determine incentive awards under the Oil-Dri Corporation of America Annual Incentive Plan (the “Plan”) for the fiscal year ending July 31, 2013 (“fiscal 2013”). Under the Plan, eligible employees (including the Registrant’s principal executive officer (the “CEO”), principal financial officer and the three other most highly paid executive officers for fiscal 2013 (collectively, the “Named Executive Officers”)) may receive annual cash incentive awards equal to a percentage of base salary. The Plan provides for the possibility of awards based on corporate financial performance and special performance or a combination of the two. The performance measure approved for fiscal 2013 is corporate financial performance as measured by achievement of target pre-tax, pre-bonus income as specified in the Registrant’s fiscal 2013 annual incentive plan. Fiscal 2013 annual incentive plan target pre-tax, pre-bonus income will differ from pre-tax income shown in the Registrant’s fiscal 2013 audited consolidated financial statements in that the former will (a) include the entire amount of annual incentive plan awards, both cash and the executive deferred bonus awards described below, for fiscal 2013 and (b) subtract the amortization for prior years’ executive deferred bonus awards. As a result of these differences, the performance measure under the fiscal 2013 annual incentive plan takes into consideration the full amount of any executive deferred bonus awards in the fiscal year for which they are made, rather than amortizing those awards over their vesting period. The foregoing covers only those differences known at the time of the adoption of the fiscal 2013 performance measures. The Compensation Committee and, under certain circumstances, the CEO may adjust annual incentive plan target pre-tax, pre-bonus income.
The fiscal 2013 annual incentive plan provides that employees exempt from the overtime requirements of the Fair Labor Standards Act (“exempt employees”) will receive their full target bonus if the Registrant achieves 100% of its annual incentive plan target. If the Registrant achieves 110% of its annual incentive plan target, bonuses of 150% of target bonus will be paid, and if the Registrant achieves 120% of its annual incentive plan target, bonuses of 200% of target bonus will be paid. Under the Plan, bonuses are capped at 200% of target bonus. If the Registrant achieves 84% of its annual incentive plan target, bonuses of 25% of target will be paid. Additional specific targets between 84% of annual incentive plan target and 120% of annual incentive plan target were also approved. If performance falls between two of the specified targets, the bonus payment percentage will be prorated.
Employees not exempt from the overtime requirements of the Fair Labor Standards Act and not covered by a collective bargaining agreement (“non-exempt employees”) will receive their full target bonus of 7.5% of pay if the Registrant achieves 84% or more of its annual incentive plan target. Bonuses for these employees are capped at 100% of target bonus.
The Plan also provides for the possibility of executive deferred bonus awards for the Registrant’s senior management (including the Named Executive Officers). The fiscal 2013 performance measures and targets for executive deferred bonus awards under the Plan are the same as those listed above for exempt employees, except that no executive deferred bonus awards will be made unless 75% of target bonus is earned (meaning the Registrant has achieved 75% of its annual incentive plan target). Executive deferred bonus awards earned in fiscal 2013 will vest and be payable at the end of three years, on July 31, 2016, provided the participant is employed by the Registrant at that time. The Plan specifies certain events which may result in earlier vesting. All of the Named Executive Officers (except the CEO and the Vice President of Manufacturing) and certain other members of senior management are participants in the executive deferred bonus portion of the Plan for fiscal 2013. See the last paragraph below for further information relating to the CEO and the Vice President of Manufacturing.
Target bonuses for the cash portion of the Plan range from 4% to 50% of base salary; target bonuses for the executive deferred bonus portion range from 10% to 25% of base salary. The specific percentage for both the cash and executive deferred portions of the Plan are generally determined by each eligible employee’s salary grade. Essentially all salaried employees of the Registrant and its domestic subsidiaries, and certain employees of its United Kingdom and Canadian subsidiaries, are eligible to participate in the Plan.
The bonus opportunity for fiscal 2013 as a percent of base salary (as of the end of fiscal 2013) that each Named Executive Officer would receive if threshold, targeted and maximum performance is achieved is shown below:
| Bonus Opportunity as a % of Base Salary | ||||||||||||||||||||||||||||||||||||
| Threshold | Target | Maximum | ||||||||||||||||||||||||||||||||||
| Cash Bonus | Deferred Bonus | Total Bonus | Cash Bonus | Deferred Bonus | Total Bonus | Cash Bonus | Deferred Bonus | Total Bonus | ||||||||||||||||||||||||||||
| Daniel S. Jaffee | 12.50 | % | 0 | % | 12.50 | % | 50.00 | % | 0 | % | 50.00 | % | 100.00 | % | 0 | % | 100.00 | % | ||||||||||||||||||
| President and Chief Executive Officer | ||||||||||||||||||||||||||||||||||||
| Daniel T. Smith | 7.92 | % | 0 | % | 7.92 | % | 31.67 | % | 20.00 | % | 51.67 | % | 63.34 | % | 40.00 | % | 103.34 | % | ||||||||||||||||||
| Vice President and Chief Financial Officer | ||||||||||||||||||||||||||||||||||||
| Thomas F. Cofsky | 10.00 | % | 0 | % | 10.00 | % | 40.00 | % | 0.00 | % | 40.00 | % | 80.00 | % | 0.00 | % | 80.00 | % | ||||||||||||||||||
| Vice President of Manufacturing | ||||||||||||||||||||||||||||||||||||
| Douglas A. Graham | 7.92 | % | 0 | % | 7.92 | % | 31.67 | % | 12.00 | % | 43.67 | % | 63.34 | % | 24.00 | % | 87.34 | % | ||||||||||||||||||
| Vice President, General Counsel and Secretary | ||||||||||||||||||||||||||||||||||||
| Thierry R. Jean | 8.75 | % | 0 | % | 8.75 | % | 35.00 | % | 15.00 | % | 50.00 | % | 70.00 | % | 30.00 | % | 100.00 | % | ||||||||||||||||||
| Vice President and General Manager, Consumer Packaged Goods | ||||||||||||||||||||||||||||||||||||
Note: The percentages shown above are based on the salary grades of the Named Executive Officers as of October 9, 2012 and may change if the salary grade of a Named Executive Officer changes during the remainder of fiscal 2013.
The Plan gives the CEO the discretion to adjust the performance measures, targets and payout ranges used for incentive purposes for the applicable fiscal year if the CEO determines such change is desirable in the interest of equitable treatment of our employees and the Registrant as a result of, among other things, extraordinary or nonrecurring events, a corporate reorganization or any other change in circumstances or event; provided, however, that in no event may any employee receive a bonus greater than 200% of target under the plan.
In addition to the discretionary authority of the CEO described above to adjust the performance measures, targets and payout ranges for eligible employees generally, the CEO may also exercise discretion in determining the incentive bonus to be paid under the Plan to any employee, including the Named Executive Officers (except himself), by:
| · | Increasing or decreasing any participant’s percent of corporate financial performance bonus earned by up to 25 percentage points, subject to limitations specified in the Plan. For example, if according to the corporate financial performance measure 75% of the corporate financial performance bonus has been earned, the CEO may adjust an individual participant’s percent of corporate financial performance bonus earned to as little as 50% or as much as 100%. | |
| · | Adjusting individual executive deferred bonus awards downward or upward, based on the participant’s individual performance and/or the performance of the participant’s department or division. |
| · | Awarding a bonus under the annual incentive plan of up to 25% of target bonus (and up to 100% of target bonus for non-exempt employees) if the Registrant fails to achieve the minimum performance otherwise required for payment of an award. |
The foregoing summary is qualified in its entirety by reference to the full and complete terms of the Plan, which was attached as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on October 13, 2006, and which is incorporated herein by reference.
The CEO and Vice President of Manufacturing have each requested that they not be eligible for an executive deferred bonus award under the Plan in fiscal 2013. At its October 9, 2012 meeting, however, the Compensation Committee stated its current intention to grant to the CEO and Vice President of Manufacturing, at a meeting following the end of fiscal 2013, an award of restricted shares of Class B Stock under the terms of our 2006 Long Term Incentive Plan. If granted, the dollar value of the restricted shares award would be calculated to equal the amount, if any, of the executive deferred bonus award each would have received under the Plan as a result of our corporate financial performance in fiscal 2013, had the CEO and Vice President of Manufacturing been participants in that portion of the Plan. That dollar value would then be divided by the average closing sale price of the Registrant’s Common Stock for the 30 trading days preceding the date of grant (or another similar measure determined to be appropriate by the Compensation Committee) to establish the actual number of restricted shares granted. If any restricted shares are in fact granted, those shares would “cliff” vest in full on July 31, 2016.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit | ||
| Number | Description of Exhibits | |
| 99.1 | Press Release of the Registrant dated October 11, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OIL-DRI CORPORATION OF AMERICA | |||
| By: | /s/ Douglas A. Graham | ||
| Douglas A. Graham | |||
| Vice President and General Counsel | |||
Date: October 11, 2012
Exhibit Index
| Exhibit | ||
| Number | Description of Exhibits | |
| 99.1 | Press Release of the Registrant dated October 11, 2012 |
 |
||
| News Release | Exhibit 99.1 | |
| News Announcement | For Immediate Release | |
| CONTACT | ||
| Ronda J. Williams, Investor Relations | ||
| Oil-Dri Corporation of America | ||
| 312/706-3232; ronda.williams@oildri.com | ||
| Oil-Dri Announces Fourth Quarter and Fiscal Year 2012 Results | ||
| CHICAGO – (October 11, 2012) – Oil-Dri Corporation of America (NYSE: ODC) today announced record net sales of $240,681,000 for the fiscal year ended July 31, 2012, a 6% increase compared with net sales of $226,755,000 for the previous fiscal year. Net income for the fiscal year was $6,098,000, or $0.85 per diluted share, a 33% decrease compared with net income of $9,051,000 or $1.26 per diluted share for the previous fiscal year. | ||
| Net sales for the fourth quarter were $61,116,000, a 6% increase compared with net sales of $57,731,000 in the same quarter one year ago. The Company reported a net loss for the quarter of $108,000, or ($0.02) per diluted share, compared with net income of $2,895,000, or $0.40 per diluted share, in the same quarter one year ago. | ||
| Fiscal Year Business Review | ||
| President and Chief Executive Officer Daniel S. Jaffee said, “This year’s results reflect one-time charges and new product spending that negatively impacted earnings. | ||
| “A one-time, pre-tax charge of $1,623,000 was taken in the fourth quarter following an announcement we made in the third quarter to relocate coarse clay production from our plant in Mounds, Illinois to our plants in Mississippi. $1,200,000 of these charges was for non-cash asset write-offs, and the balance was for severance and other employee related expenditures related to the relocation. We are continuing to assess the long-term economics of the Mounds plant. Mining and processing has become relatively more costly in Illinois than at other Oil-Dri plant locations. Oil-Dri is fortunate to operate five plants throughout the country and will continue to rationalize our production capacity to our best long-term advantage. | ||
“Our results also reflect continued investment in advertising and promotional activities for the launch of Cat’s Pride Fresh & Light cat litter. This fiscal year we spent approximately $7,800,000 more in advertising support for our consumer products than the previous fiscal year. In the fourth quarter we spent approximately $2,800,000 more in advertising than the previous fourth quarter.
“Our Business to Business Products Group achieved significant sales and volume growth in the fiscal year driven by increased products sold to agricultural, edible oil, and animal health markets.
“We were also able to maintain a strong balance sheet, buy back a substantial amount of stock and increase dividends, all which provided value to our stockholders while continuing to invest in our business.”
Fiscal Year Segment Review
Business to Business Products Group
| Fourth Quarter | % Change | Fiscal Year | % Change | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| Net Sales | $ | 21,289,000 | $ | 19,047,000 | 12% | $ | 85,456,000 | $ | 74,479,000 | 15% | ||||||||||||
| Segment Income | $ | 7,725,000 | $ | 4,884,000 | 58% | $ | 28,643,000 | $ | 19,504,000 | 47% | ||||||||||||
Net sales for the Company’s Business to Business Products Group were up for the fiscal year driven by a higher average net selling price, increased volume and a favorable product sales mix. Group income was up in the fiscal year due to higher sales but was partially offset by higher costs. Net sales of agricultural carriers, fluids purification and animal health products increased while sales of co-packaged cat litters decreased along with the general decline of coarse cat litter products. Verge granules generated incremental sales from the professional pesticide and agricultural markets. Animal health products benefited from an increase in volume and a favorable product sales mix.
Retail and Wholesale Products Group
| Fourth Quarter | % Change | Fiscal Year | % Change | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| Net Sales | $ | 39,827,000 | $ | 38,684,000 | 3% | $ | 155,225,000 | $ | 152,276,000 | 2% | ||||||||||||
| Segment Income | $ | (181,000 | ) | $ | 2,462,000 | (107%) | $ | 2,098,000 | $ | 10,439,000 | (80%) | |||||||||||
Net sales for the Company’s Retail and Wholesale Products Group were up for the fiscal year due to increased distribution and volume of branded cat litters. Group income was down due to significant spending for promotional activity and higher costs for packaging, transportation and materials. Cat’s Pride Fresh & Light cat litter and other scoopable litter sales and volume were up due to growth with many of the company’s retail partners. The increase in net sales and volume of scoopable cat litters was partially offset by the continued decline of branded and private label coarse litters. Net sales of floor absorbents and other industrial absorbents were flat for the year. Sales of the Company’s foreign subsidiaries were down due to strong competition.
Financial Review
On June 14, 2012, Oil-Dri’s Board of Directors increased quarterly cash dividends to $0.18 per share of outstanding Common Stock and $0.135 per share of outstanding Class B Stock. The dividends were payable August 31, 2012 to stockholders of record at the close of business on August 17, 2012. The Company has paid cash dividends continuously since 1974 and has increased dividends annually for the past nine years.
At the end of the fourth quarter, the annualized dividend yield on the Company’s Common Stock was 3.3%, based on the quarter’s stock closing price of $21.93 per share and the latest cash quarterly dividend of $0.18.
Net cash provided by operations was $23,339,000 compared with $13,108,000 in the previous fiscal year. Cash, cash equivalents and short-term investments at July 31, 2012, totaled $36,256,000. Capital expenditures for the fiscal year totaled $6,960,000, which was $2,312,000 less than the fiscal year’s depreciation and amortization of $9,272,000.
Looking Forward
Jaffee continued, “We will continue to invest in our Cat’s Pride Fresh & Light cat litter at a reduced level from fiscal 2012, but still higher than what we have historically spent marketing our brands. In the coming fiscal year we will focus on customer-targeted campaigns. We believe these efforts will positively impact the Company’s earnings in fiscal 2013.”
Key Metrics as of July 31,
| Key Metrics | F’12 | F’11 | F’10 | F’09 | F’08 | |||||||||||||||
| Cash, cash equivalents & investments | $ | 36,256,000 | $ | 33,722,000 | $ | 24,621,000 | $ | 19,837,000 | $ | 27,764,000 | ||||||||||
| Net cash provided by operations | $ | 23,339,000 | $ | 13,108,000 | $ | 26,216,000 | $ | 15,814,000 | $ | 11,341,000 | ||||||||||
| Cash and equivalents less notes payable | $ | 6,556,000 | $ | 422,000 | $ | 6,321,000 | ($ | 1,663,000 | ) | $ | 684,000 | |||||||||
| Return on average stockholders’ equity | 6.8 | % | 9.7 | % | 10.5 | % | 10.8 | % | 10.8 | % | ||||||||||
| *Net income per diluted share | $ | 0.85 | $ | 1.26 | $ | 1.30 | $ | 1.33 | $ | 1.25 | ||||||||||
| Capital expenditures | $ | 6,960,000 | $ | 13,806,000 | $ | 10,413,000 | $ | 15,253,000 | $ | 7,302,000 | ||||||||||
| Dividends paid | $ | 4,486,000 | $ | 4,218,000 | $ | 3,992,000 | $ | 3,684,000 | $ | 3,377,000 | ||||||||||
| Dividends paid per Common Stock share | $ | 0.68 | $ | 0.64 | $ | 0.60 | $ | 0.56 | $ | 0.52 | ||||||||||
*Net income per diluted share for fiscal years 2009 and 2008 have been restated to reflect a new accounting standard effective August 1, 2009. The new standard requires us to include our unvested restricted stock awards as participating securities in the calculation of net income per diluted share.
###
The Company will offer a live webcast of the fourth quarter earnings teleconference on Friday, October 12, 2012 from 10:00 a.m. to 10:30 a.m., Chicago Time. To listen to the call via the web, please visit www.streetevents.com or www.oildri.com. An archived recording of the call and written transcripts of all teleconferences are posted on the Oil-Dri website.
Agsorb Cat’s Pride, Fresh & Light and Verge are registered trademarks of Oil-Dri Corporation of America.
Oil-Dri Corporation of America is a leading supplier of specialty sorbent products for agricultural, horticultural, fluids purification, specialty markets, industrial and automotive, and is the world’s largest manufacturer of cat litter.
Certain statements in this press release may
contain forward-looking statements that are based on our current expectations, estimates, forecasts and projections about our
future performance, our business, our beliefs, and our management’s assumptions. In addition, we, or others on our behalf,
may make forward-looking statements in other press releases or written statements, or in our communications and discussions with
investors and analysts in the normal course of business through meetings, webcasts, phone calls, and conference calls. Words such
as “expect,” “outlook,” “forecast,” “would”, “could,” “should,”
“project,” “intend,” “plan,” “continue,” “believe,” “seek,”
“estimate,” “anticipate,” “may,” “assume,” variations of such words and similar
expressions are intended to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially including, but not limited to, the dependence of our future growth and financial performance on successful new product introductions, intense competition in our markets, volatility of our quarterly results, risks associated with acquisitions, our dependence on a limited number of customers for a large portion of our net sales and other risks, uncertainties and assumptions that are described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected or planned. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.
OIL - DRI CORPORATION OF AMERICA
Consolidated Statements of Income
(in thousands, except for per share amounts)
(unaudited)
| Fourth Quarter Ended July 31, | ||||||||||||||||
| 2012 | % of Sales | 2011 | % of Sales | |||||||||||||
| Net Sales | $ | 61,116 | 100.0 | % | $ | 57,731 | 100.0 | % | ||||||||
| Cost of Sales | (45,573 | ) | 74.6 | % | (45,298 | ) | 78.5 | % | ||||||||
| Gross Profit | 15,543 | 25.4 | % | 12,433 | 21.5 | % | ||||||||||
| Operating Expenses | (13,428 | ) | 22.0 | % | (8,378 | ) | 14.5 | % | ||||||||
| Capacity Rationalization Charges | (1,623 | ) | 2.7 | % | — | 0.0 | % | |||||||||
| Operating Income | 492 | 0.8 | % | 4,055 | 7.0 | % | ||||||||||
| Interest Expense | (503 | ) | 0.8 | % | (558 | ) | 1.0 | % | ||||||||
| Other Income | (14 | ) | 0.0 | % | (14 | ) | 0.0 | % | ||||||||
| Income Before Income Taxes | (25 | ) | 0.0 | % | 3,483 | 6.0 | % | |||||||||
| Income Taxes | (83 | ) | 0.1 | % | (588 | ) | 1.0 | % | ||||||||
| Net Income | $ | (108 | ) | -0.2 | % | $ | 2,895 | 5.0 | % | |||||||
| Net Income Per Share: | ||||||||||||||||
| Basic Common | $ | (0.02 | ) | $ | 0.43 | |||||||||||
| Basic Class B Common | $ | (0.01 | ) | $ | 0.33 | |||||||||||
| Diluted | $ | (0.02 | ) | $ | 0.40 | |||||||||||
| Average Shares Outstanding: | ||||||||||||||||
| Basic Common | 4,903 | 5,095 | ||||||||||||||
| Basic Class B Common | 1,938 | 1,913 | ||||||||||||||
| Diluted | 6,901 | 7,090 | ||||||||||||||
| Twelve Months Ended July 31, | ||||||||||||||||
| 2012 | % of Sales | 2011 | % of Sales | |||||||||||||
| Net Sales | $ | 240,681 | 100.0 | % | $ | 226,755 | 100.0 | % | ||||||||
| Cost of Sales | (181,676 | ) | 75.5 | % | (176,715 | ) | 77.9 | % | ||||||||
| Gross Profit | 59,005 | 24.5 | % | 50,040 | 22.1 | % | ||||||||||
| Operating Expenses | (47,303 | ) | 19.7 | % | (36,331 | ) | 16.0 | % | ||||||||
| Capacity Rationalization Plan Charges | (1,623 | ) | 0.7 | % | — | 0.0 | % | |||||||||
| Operating Income | 10,079 | 4.2 | % | 13,709 | 6.0 | % | ||||||||||
| Interest Expense | (2,060 | ) | 0.9 | % | (2,053 | ) | 0.9 | % | ||||||||
| Other Income | 342 | 0.1 | % | 485 | 0.2 | % | ||||||||||
| Income Before Income Taxes | 8,361 | 3.5 | % | 12,141 | 5.4 | % | ||||||||||
| Income Taxes | (2,263 | ) | 0.9 | % | (3,090 | ) | 1.4 | % | ||||||||
| Net Income | $ | 6,098 | 2.5 | % | $ | 9,051 | 4.0 | % | ||||||||
| Net Income Per Share: | ||||||||||||||||
| Basic Common | $ | 0.92 | $ | 1.36 | ||||||||||||
| Basic Class B Common | $ | 0.70 | $ | 1.06 | ||||||||||||
| Diluted | $ | 0.85 | $ | 1.26 | ||||||||||||
| Average Shares Outstanding: | ||||||||||||||||
| Basic Common | 5,063 | 5,083 | ||||||||||||||
| Basic Class B Common | 1,934 | 1,908 | ||||||||||||||
| Diluted | 7,062 | 7,103 | ||||||||||||||
OIL - DRI CORPORATION OF AMERICA
Consolidated Balance Sheets
(in thousands, except for per share amounts)
(unaudited)
| As of July 31, | |||||||||
| 2012 | 2011 | ||||||||
| Current Assets | |||||||||
| Cash and Cash Equivalents | $ | 27,093 | $ | 17,885 | |||||
| Investment in Short-term Securities | 9,163 | 15,837 | |||||||
| Accounts Receivable, net | 30,225 | 29,217 | |||||||
| Inventories | 19,673 | 19,230 | |||||||
| Prepaid Expenses | 9,048 | 9,647 | |||||||
| Total Current Assets | 95,202 | 91,816 | |||||||
| Property, Plant and Equipment | 64,453 | 68,028 | |||||||
| Other Assets | 14,612 | 13,549 | |||||||
| Total Assets | $ | 174,267 | $ | 173,393 | |||||
| Current Liabilities | |||||||||
| Current Maturities of Notes Payable | $ | 3,800 | $ | 3,600 | |||||
| Accounts Payable | 6,700 | 6,369 | |||||||
| Dividends Payable | 1,154 | 1,129 | |||||||
| Accrued Expenses | 17,468 | 15,382 | |||||||
| Total Current Liabilities | 29,122 | 26,480 | |||||||
| Long-Term Liabilities | |||||||||
| Notes Payable | 25,900 | 29,700 | |||||||
| Other Noncurrent Liabilities | 33,937 | 21,915 | |||||||
| Total Long-Term Liabilities | 59,837 | 51,615 | |||||||
| Stockholders' Equity | 85,308 | 95,298 | |||||||
| Total Liabilities and Stockholders' Equity | $ | 174,267 | $ | 173,393 | |||||
| Book Value Per Share Outstanding | $ | 12.19 | $ | 13.63 | |||||
| Acquisitions of | |||||||||
| Property, Plant and Equipment | Fourth Quarter | $ | 1,508 | $ | 3,596 | ||||
| Year to Date | $ | 6,960 | $ | 13,806 | |||||
| Depreciation and Amortization Charges | Fourth Quarter | $ | 2,332 | $ | 2,161 | ||||
| Year to Date | $ | 9,272 | $ | 8,473 | |||||
OIL - DRI CORPORATION OF AMERICA
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| For the Twelve Months Ended | ||||||||
| July 31, 2012 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2012 | 2011 | ||||||
| Net Income | $ | 6,098 | $ | 9,051 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and Amortization | 9,272 | 8,473 | ||||||
| Capacity Rationalization Plan Charges | 1,623 | — | ||||||
| (Increase) in Accounts Receivable | (1,026 | ) | (2,075 | ) | ||||
| (Increase) in Inventories | (456 | ) | (3,207 | ) | ||||
| Increase in Accounts Payable | 456 | 275 | ||||||
| Increase (Decrease) in Accrued Expenses | 1,622 | (1,384 | ) | |||||
| Increase in Pension and Postretirements benefits | 4,730 | 672 | ||||||
| Other | 1,020 | 1,303 | ||||||
| Total Adjustments | 17,241 | 4,057 | ||||||
| Net Cash Provided by Operating Activities | 23,339 | 13,108 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Capital Expenditures | (6,960 | ) | (13,806 | ) | ||||
| Net Dispositions of Investment Securities | 6,659 | (10,008 | ) | |||||
| Other | 31 | 149 | ||||||
| Net Cash (Used in) Investing Activities | (270 | ) | (23,665 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from Issuance of Long-Term Debt | — | 18,500 | ||||||
| Principal Payments on Long-Term Debt | (3,600 | ) | (3,500 | ) | ||||
| Dividends Paid | (4,486 | ) | (4,218 | ) | ||||
| Purchase of Treasury Stock | (6,247 | ) | (2,474 | ) | ||||
| Other | 444 | 1,477 | ||||||
| Net Cash (Used in) Provided by Financing Activities | (13,889 | ) | 9,785 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 28 | (105 | ) | |||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 9,208 | (877 | ) | |||||
| Cash and Cash Equivalents, Beginning of Year | 17,885 | 18,762 | ||||||
| Cash and Cash Equivalents, July 31 | $ | 27,093 | $ | 17,885 | ||||