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
November 24, 2003
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Date of Report (Date of earliest event reported)
Oil-Dri Corporation of America
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(Exact name of registrant as specified in its charter)
Delaware 0-8675 36-2048898
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
410 North Michigan Avenue
Suite 400
Chicago, Illinois 60611-4213
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(Address of principal (Zip Code)
executive offices)
(312) 321-1515
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Registrant's telephone number
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits: The following document is attached as an exhibit to
this report:
Exhibit
NUMBER DESCRIPTION
99 Press Release dated November 24, 2003.
ITEM 9. REGULATION FD DISCLOSURE
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 24, 2003, the Registrant issued a press release announcing the
results of operations for the first quarter of its 2004 fiscal year. A copy of
the press release is attached as Exhibit 99. This information is being provided
under both Items 9 and 12, as suggested by the Commission in Release 33-8216,
though it is required to be provided only under Item 12.
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/ CHARLES P. BRISSMAN
--------------------------------
Charles P. Brissman
Vice President and General Counsel
Date: November 25, 2003
RELEASE:Immediate CONTACT: Ronda J. Williams
312-706-3232
OIL-DRI CORPORATION OF AMERICA REPORTS RECORD
FIRST QUARTER SALES OF $46 MILLION
CHICAGO - November 24, 2003 - Oil-Dri Corporation of America (NYSE:
ODC) announced record first quarter results and adjusted its
estimated EPS target range for fiscal 2004.
Net sales of $46,292,000 for the first quarter ended October 31, 2003
increased 23% over sales of $37,730,000 for the first quarter one
year ago.
Net income for the quarter was $1,718,000 or $0.30 per fully diluted
share for the quarter, a significant increase from $411,000 or $0.07
per fully diluted share in the same quarter a year ago.
First quarter pre-tax income was $2,420,000 compared to pre-tax
income of $585,000 in the first quarter a year ago, which included
a gain of $139,000 from the sale of mineral rights in Tennessee.
There were no non-recurring items in the first quarter results for
this year.
FIRST QUARTER REVIEW
President and Chief Executive Officer Daniel S. Jaffee commented,
"We achieved a very strong first quarter of sales and earnings
growth. The momentum we gained last fiscal year with the
acquisition of the Taft, Calif., plant and Jonny Cat(R) brand
continued into this fiscal year. Half of our sales increase was
attributable to the acquisition itself and half to the growth in
our core businesses.
"We remain focused on managing escalating fuel costs to control our
cost of goods. Maximizing our fuel efficiency, combined with
strategic price increases has thus far been effective in minimizing
the impact of increased fuel costs on our gross margins. The
combination of these factors along with our focus on continuously
improving our manufacturing processes has expanded gross margins
this quarter from 20.5% to 23.5%.
"Our Board of Directors approved a dividend increase of 11%,
raising the quarterly cash dividend to $0.10 per share of Common
Stock and $0.075 per share of Class B stock. The approval by the
Board signifies its confidence in the company's direction and
future prospects."
BUSINESS REVIEW
As expected, sales for the CONSUMER PRODUCTS GROUP were up
substantially year-over-year with 28% growth. The Jonny Cat litter
business combined with strong Cat's Pride(R) promotional
advertising at several major accounts contributed to the sales
growth.
Oil-Dri Canada sales were up in the first quarter due to additional
distribution gains. Branded product sales were up in Canada as a
result of effective advertising and execution in both grocery and
non-foods markets.
The CROP PRODUCTION AND HORTICULTURAL PRODUCTS GROUP outpaced prior
year sales by 42%. Market demand for Agsorb(R)agricultural
carriers remained high despite industry commercialization of
genetically modified crops for corn rootworm. In addition Pro's
Choice(R)soil conditioner products favorably contributed. Price
increases planned to go into effect in the second quarter will help
to drive profitability.
The INDUSTRIAL AND AUTOMOTIVE PRODUCTS GROUP experienced solid
sales growth of 13% over prior year sales. New accounts helped
increase sales growth for the quarter.
Sales for the SPECIALTY PRODUCTS GROUP were flat for the quarter.
Bleaching clays continue to face strong competition in Western
Europe. However, international expansion into new geographies for
bleaching clay and strong sales for Poultry Guard litter amendment
maintained year-over-year sales.
FINANCIAL REVIEW
On October 9, 2003, Oil-Dri's Board of Directors voted to increase
the quarterly cash dividend to $0.10 per share for the Common
Stock, an increase of 11%. The dividend will be payable on December
12, 2003, to stockholders of record at the close of business on
November 14, 2003. At an October 31, 2003 closing price of $14.51
and assuming cash dividends continue at the same rate, the annual
yield is 2.75%.
Cash, cash equivalents and short-term investments at October 31,
2003, totaled $10,701,000. Cash used by operating activities was
$1,706,000 as a result of a reduction of certain accrued expenses,
accounts payable and an increase in accounts receivable and
inventories. Capital expenditures for the quarter totaled
$1,040,000, which is $1,042,000 less than the depreciation and
amortization of $2,082,000.
LOOKING FORWARD
Jaffee continued, "We are optimistic about initial market feedback
for Jonny Cat Kat Kit and the market research conducted this year.
These indicators will help us solidify and grow the brand's retail
presence. We are also encouraged by continued demand for Agsorb
agricultural carriers, Pro's Choice sports field products and
geographic market expansion of our international product lines.
"Though the energy market remains volatile, we continue our efforts
to minimize our exposure to fuel hikes and keep manufacturing costs
under control.
"Having completed our first quarter ahead of plan, we are able to
raise the bottom end of our earnings per share estimate range, giving
us a new range of $0.75 to $0.85 for fiscal 2004."
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THE COMPANY WILL OFFER A LIVE WEB CAST OF THE FIRST QUARTER
EARNINGS TELECONFERENCE ON WEDNESDAY, NOVEMBER 26, 2003 AT 10:00
A.M. CST. TO LISTEN TO THE CALL VIA THE WEB, PLEASE VISIT
WWW.STREETEVENTS.COM OR WWW.OILDRI.COM. AN ARCHIVED RECORDING OF
THE CALL WILL BE AVAILABLE FOR APPROXIMATELY 30 DAYS AFTER THE CALL
AND WRITTEN TRANSCRIPTS OF ALL TELECONFERENCES ARE POSTED ON THE
OIL-DRI WEB SITE.
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OIL-DRI CORPORATION OF AMERICA IS THE WORLD'S LARGEST MANUFACTURER
OF CAT LITTER AND A LEADING SUPPLIER OF SPECIALTY SORBENT PRODUCTS
FOR INDUSTRIAL, AUTOMOTIVE, AGRICULTURAL, HORTICULTURAL AND
SPECIALTY MARKETS.
THIS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS REGARDING
THE COMPANY'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, COMPETITIVE FACTORS IN THE
CONSUMER MARKET; THE LEVEL OF SUCCESS IN IMPLEMENTATION OF PRICE
INCREASES AND SURCHARGES; CHANGES IN OVERALL AGRICULTURAL DEMAND;
INCREASING REGULATION OF THE FOOD CHAIN; CHANGES IN THE MARKET
CONDITIONS, THE OVERALL ECONOMY, ENERGY PRICES, AND OTHER FACTORS
DETAILED FROM TIME TO TIME IN THE COMPANY'S ANNUAL REPORT AND OTHER
REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
O I L - D R I C O R P O R A T I O N O F A M E R I C A
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for per share amounts)
(unaudited)
FIRST QUARTER ENDED OCTOBER 31,
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2003 % OF SALES 2002 % OF SALES
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NET SALES $ 46,292 100.0% $37,730 100.0%
COST OF SALES 35,414 76.5% 29,977 79.5%
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GROSS PROFIT 10,878 23.5% 7,753 20.5%
OPERATING EXPENSES (8,109) -17.5% (6,617) -17.5%
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OPERATING INCOME (LOSS) 2,769 6.0% 1,136 3.0%
INTEREST EXPENSE (531) -1.2% (687) -1.8%
GAIN ON THE SALE OF
MINERAL RIGHTS -- -- 139 0.4%
OTHER INCOME (EXPENSE) 182 0.4% (3) 0.0%
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INCOME (LOSS) BEFORE
INCOME TAXES 2,420 5.2% 585 1.6%
INCOME TAXES (BENEFIT) 702 1.5% 174 0.5%
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NET INCOME (LOSS) $ 1,718 3.7% $ 411 1.1%
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NET INCOME PER SHARE: $ 0.31 $ 0.07
$ 0.30 $ 0.07
AVERAGE SHARES
OUTSTANDING:
BASIC 5,461 5,615
DILUTIVE 5,744 5,678
O I L - D R I C O R P O R A T I O N O F A M E R I C A
CONSOLIDATED BALANCE SHEETS
(in thousands, except for per share amounts)
(unaudited)
AS OF OCTOBER 31,
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2003 2002
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CURRENT ASSETS
CASH, CASH EQUIVALENTS AN INVESTMENTS $ 10,701 $ 14,987
ACCOUNTS RECEIVABLE, NET 25,505 21,982
INVENTORIES 13,379 11,769
PREPAID EXPENSES 7,886 7,296
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TOTAL CURRENT ASSETS 57,471 56,034
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PROPERTY, PLANT AND 48,109 47,903
EQUIPMENT
OTHER ASSETS 17,150 18,785
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TOTAL ASSETS $122,730 $122,722
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CURRENT LIABILITIES
CURRENT MATURITIES OF NOTES PAYABLE $ 4,000 $ 4,350
ACCOUNTS PAYABLE 5,385 5,391
DIVIDENDS PAYABLE 509 474
ACCRUES EXPENSES 12,685 9,747
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TOTAL CURRENT LIABILITIES 22,579 19,962
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LONG-TERM LIABILITIES
NOTES PAYABLE 24,900 28,900
OTHER NONCURRENT LIABILITIES 5,373 4,882
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TOTAL LONG-TERM LIABILITIES 30,273 33,782
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STOCKHOLDERS' EQUITY 69,878 68,978
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $122,730 $122,722
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BOOK VALUE PER SHARE OUTSTANDING $ 12.80 $ 12.28
ADDITIONS TO AND ACQUISITIONS OF
PROPERTY, PLANT AND EQUIPMENT FIRST QUARTER $ 1,040 $ 1,315
DEPRECIATION AND AMORTIZATION
CHARGES FIRST QUARTER $ 2,082 $ 2,034