AMCOL International (ticker: ACO, exchange: New York Stock Exchange (.N))
News Release -
16-Apr-2001
AMCOL International (NYSE: ACO) Reports First Quarter Earnings ARLINGTON HEIGHTS, Ill., April 16 /PRNewswire/ -- AMCOL International
Corp. (NYSE: ACO) today reported earnings for the first quarter ended
March 31, 2001. Net sales for the period were $67 million compared to
$73 million for the same period in 2000. Income from continuing operations
increased to $2.9 million, or 9 cents per diluted share, from $2.3 million, or
8 cents per share, in the first quarter of 2000. The increase in income from
continuing operations includes investment income earned on the remaining
proceeds from the sale of the absorbent polymers business of 4 cents per
share, for the first quarter of 2001. Larry Washow, president and chief executive officer said, "We are pleased
with the growth in our environmental segment's sales and operating profit.
This growth was a result of improved sales mix and increased production
efficiencies at the segment's European business unit, as well as growth in
several of our domestic divisions. In the first quarter the slower economy
impacted our minerals segment. We saw lower volume in the domestic metal
casting business. Pricing combined with lower volumes in the domestic cat
litter business also reduced net sales and operating profit from the prior
year." Washow noted that as of March 31, 2001, AMCOL had purchased more than
1 million shares of its common stock at an average price of $3.83 per share,
leaving approximately $5.8 million left in its current $10 million stock
repurchase authorization.
SEGMENT DISCUSSIONS Minerals The minerals segment, which accounted for 60 percent of consolidated net
sales, reported a sales decline of 12 percent, and a 35 percent decline in
operating profit compared to first quarter 2000. Washow explained, "There has been softness within the metal casting
markets during the first quarter. The U.S. cat litter business is very
competitive but we are expanding our product base in pet products and look for
improvement later in the year. International sales were comparable to last
year." Washow continued, "In January we announced that we were going to exit the
U.K. cat litter business, this was finalized at the end of March 2001." Business realignment and other charges in the first quarter include costs
associated with operating and exiting the U.K. cat litter business. These
costs were more than offset by the proceeds from the disposal of certain cat
litter assets during the period and resulted in a decrease in operating
expenses of $0.2 million in the quarter.
Environmental The Company's environmental segment, which accounted for 29 percent of
AMCOL's consolidated net sales, registered an operating profit of $2.7 million
compared with an operating profit of $2.1 million for first quarter 2000, an
increase of approximately 30 percent. Product sales increased 4 percent from
$18.4 million in first quarter 2000 to $19.2 million in first quarter 2001. Washow said, "Our drilling products, building materials and offshore
groups showed growth in both sales and operating profit, setting a good pace
for further growth. We did have slightly higher general, selling and
administrative costs as the result of increased expenses in the environmental
offshore business. The first quarter is generally slower because of the
seasonal nature of our many construction-related product lines so we are
pleased by our strong performance."
Transportation AMCOL's transportation operations, which accounted for 11 percent of the
Company's consolidated net sales, reported a 5 percent decrease in sales for
the quarter compared to first quarter 2000. Operating profit was 5 percent
lower than the prior year. Washow said that the operating profit decline resulted from increased
competition in the Company's freight business, as well as escalation in fuel
costs during the quarter.
Nanocomposites Washow commented, "We remain committed to developing nanocomposite
opportunities, but in light of lower near-term sale expectations we have taken
steps to reduce overall spending. We are continuing an active marketing
effort and expanding our intellectual property base."
FINANCIAL OVERVIEW Long-term debt represented 29.5 percent of total capitalization at
March 31, 2001, compared to 27.6 percent at December 31, 2000, principally due
to the increase in borrowings related to purchases of the Company's common
stock. For the quarter, selling, general and administrative expenses declined
approximately 5 percent to $12.4 million, versus $13.0 million in 2000. Net interest expense increased $0.2 million, 39 percent, from the prior
year. This is primarily attributed to interest expense allocated to
discontinued operations in the first quarter of 2000. As a result of adopting
an accounting pronouncement issued in 2000 that relates to financial
derivatives and hedges, the Company recorded a charge to earnings in the first
quarter to reflect the change in value of an interest rate swap agreement in
which the Company is a party. The charge to earnings in the quarter was
$0.3 million plus a charge of $0.2 million for the change in value of the
interest rate swap as of the end of 2000 that is reflected in the income
statement as a cumulative effect in the change in accounting principle, net of
tax. Shares outstanding at March 31, 2001, were approximately 27.9 million
compared to approximately 27 million at March 31, 2000. Weighted average
common and common equivalent shares outstanding increased 14 percent compared
to the prior year. Dilution from the increased number of options resulting
from the sale of the absorbent polymers segment accounted for the change. AMCOL's financial condition at March 31, 2001, included working capital of
approximately $96 million and a current ratio of 3.11-to-1, compared to
approximately $109 million and a ratio of 4.33-to-1 at March 31, 2000.
Working capital and current ratio as of March 31, 2001 and 2000 were heavily
influenced by short-term investments and net assets of discontinued
operations, respectively. If these assets were excluded, working capital and
current ratio would have been approximately $51 million and 2.11-to-1, as of
March 31, 2001, respectively, compared to approximately $68 million and
3.07-to-1, as of March 31, 2000.
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 Nationwide Freight Service, Inc. AMCOL's common stock is traded on
the New York Stock Exchange under the symbol ACO. AMCOL's web address is
www.amcol.com . AMCOL's first quarter conference call will be available live
through www.e-audiotorium.com/Prem_Conf , Confirmation code 665720, at 11 am
EST. No passcode is needed.
AMCOL INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEET (Unaudited)
(Thousands)
March 31,
2001 2000
ASSETS
Cash $9,365 $6,311
Cash equivalents 45,333
Accounts receivable, net 46,902 48,667
Inventories 30,428 32,620
Net assets from discontinued operations 41,660
Other current assets 9,518 13,379
Total current assets 141,546 142,637
Investments in and advances to joint
ventures 12,738 10,064
Property, plant, equipment and reserves,
net 76,009 88,542
Intangible assets 443 522
Net assets from discontinued operations 77,622
Other long-term assets 10,587 4,832
$241,323 $324,219
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current maturities
of debt $1,042 $22
Accounts payable 8,175 10,046
Accrued liabilities 36,292 22,824
Total current liabilities 45,509 32,892
Long-term debt 54,586 91,529
Other long-term obligations 10,482 9,252
Stockholders' equity 130,746 190,546
$241,323 $324,219
Common shares outstanding at the end of
the period 27,892,306 26,945,083
AMCOL INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(Thousands)
Three months ended
March 31,
2001 2000
CONTINUING OPERATIONS
Net sales $67,438 $72,777
Cost of sales 52,212 55,871
Gross profit 15,226 16,906
General, selling and administrative
expenses 12,452 12,997
Asset impairment and business
realignment (223) -
Operating profit 2,997 3,909
Other income (expense):
Investment income 2,150 -
Change in value of interest
rate swap (316) -
Interest expense, net (813) (585)
Other income, net 54 (51)
1,075 (636)
Income from continuing
operations before income taxes
and equity in income of joint
ventures 4,072 3,273
Income taxes 1,292 1,118
Income from continuing
operations before equity in
income of joint ventures 2,780 2,155
Equity in income of joint
ventures 132 130
Income from continuing
operations 2,912 2,285
DISCONTINUED OPERATIONS
Income from discontinued
operations - 3,452
Cumulative effect of change in
accounting principle
(net of taxes) (182) -
Net income $2,730 $5,737
AMCOL INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(Thousands, except number of shares and per share amounts)
Three months ended
March 31,
2001 2000
Weighted average common shares 28,664,185 26,908,499
Weighted average common and
common equivalent shares
outstanding 31,221,631 27,429,410
Basic earnings per share
Continuing operations $0.10 $0.08
Discontinued operations $0.00 $0.13
Total basic earnings per share $0.10 $0.21
Diluted earnings per share
Continuing operations $0.09 $0.08
Discontinued operations $0.00 $0.13
Total diluted earnings per share $0.09 $0.21
Dividends declared per share $0.01 $0.07
AMCOL INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
(Thousands)
Three Months Ended
March 31,
2001 2000
Cash flows from operating activities:
Income(loss) from continuing
operations $2,912 $2,285
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation, depletion, and
amortization 4,445 4,385
Change in value of interest rate swap 316 0
Other (3) 566
Decrease in current assets 4,294 1,144
(Decrease) in current liabilities (6,838) (1,601)
Net cash provided by operating
activities of continuing operations 5,126 6,779
Net cash provided by discontinued
operations 0 4,363
Cash flows from investing activities:
Acquisition of land, mineral reserves,
depreciable and intangible assets (1,340) (4,446)
Tax payments related to absorbent
polymers segment sale (125,477) 0
Other (1,262) (328)
Net cash used in investing
activities (128,079) (4,774)
Cash flows from financing
activities:
Net change in outstanding debt 3,252 (2,872)
Dividends paid (288) (1,885)
Net treasury stock
transactions (3,919) 746
Net cash (used) in financing
activities (955) (4,011)
Net increase(decrease) in cash and
cash equivalents (123,908) 2,357
Cash and cash equivalents at
beginning of period 178,606 3,954
Cash and cash equivalents at end of
period $54,698 $6,311
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
MINERALS Quarter ended March 31,
2001 2000 2001 vs. 2000
$ Change % Change
(Dollars in Thousands)
Product sales $36,249 $42,208
Shipping revenue 5,305 4,958
Net sales 41,554 100.0% 47,166 100.0% (5612) -11.9%
Cost of sales-product 29,310 32,840
Cost of sales-
shipping 5,305 4,958
Cost of sales 34,615 83.3% 37,798 80.1%
Gross profit 6,939 16.7% 9,368 19.9% (2429) -25.9%
General, selling and
administrative exp. 3,591 8.6% 3,844 8.1% (253) -6.6%
Business realignment
and other charges (223) -0.5% 0 0.0% (223) NM
Operating profit 3,571 8.6% 5,524 11.8% (1953) -35.4%
ENVIRONMENTAL Quarter ended March 31,
2001 2000 2001 vs. 2000
$ Change % Change
(Dollars in Thousands)
Product sales $19,212 $18,435
Shipping revenue 1,244 1,510
Net sales 20,456 100.0% 19,945 100.0% 511 2.6%
Cost of sales-product 11,728 11,735
Cost of sales-shipping 1,244 1,510
Cost of sales 12,972 63.4% 13,245 66.4%
Gross profit 7,484 36.6% 6,700 33.6% 784 11.7%
General, selling and
administrative exp. 4,835 23.6% 4,654 23.3% 181 3.9%
Operating profit 2,649 13.0% 2,046 10.3% 603 29.5%
TRANSPORTATION Quarter ended March 31,
2001 2000 2001 vs. 2000
$ Change % Change
(Dollars in Thousands)
Net sales $7,562 100.0% $7,935 100.0% $(373) -4.7%
Cost of sales 6,759 89.4% 7,097 89.4%
Gross profit 803 10.6% 838 10.6% (35) -4.2%
General, selling and
administrative exp. 496 6.6% 515 6.5% (19) -3.7%
Operating profit 307 4.0% 323 4.1% (16) -5.0%
CORPORATE
Quarter ended March 31,
2001 2000 2001 vs. 2000
$ Change % Change
(Dollars in Thousands)
Intersegment shipping
revenues ($2,134) ($2,269)
Intersegment shipping
costs (2,134) (2,269)
Gross profit 0 0
General, selling and
administrative exp. 2,205 2,532 $(327) -12.9%
Nanocomposites 1,325 1,452 (127) -8.7%
Business realignment and
other charges 0 0 0 NM
Operating loss (3,530) (3,984) 454 11.4%
SOURCE AMCOL International Corp.
Web site: http: //www.amcol.com
Company News On-Call: http: //www.prnewswire.com/comp/109852.html or fax, 800-758-5804, ext. 109852
CONTACT: Jennifer Melsheimer, Shareholder Services Coordinator of AMCOL International, 847-394-8730 |
AMCOL International
