-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UPfN9R5dBf0DATJVvflfyNh/VJ/Sn1oRfR/8mj/EBiCVfFtqCRnAbvWhWi++EoTM X8Nw1HvsGfeEFaAAiEshlA== 0000074046-95-000015.txt : 19951215 0000074046-95-000015.hdr.sgml : 19951215 ACCESSION NUMBER: 0000074046-95-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19951214 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OIL DRI CORPORATION OF AMERICA CENTRAL INDEX KEY: 0000074046 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS MANUFACTURING INDUSTRIES [3990] IRS NUMBER: 362048898 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12622 FILM NUMBER: 95601769 BUSINESS ADDRESS: STREET 1: 410 N MICHIGAN AVE SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60611 BUSINESS PHONE: 3123211515 MAIL ADDRESS: STREET 1: 410 NORTH MICHIGAN AVENUE STREET 2: SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60611 FORMER COMPANY: FORMER CONFORMED NAME: OIL DRI CORP OF AMERICA INC DATE OF NAME CHANGE: 19600201 10-Q 1 CONFORMED COPY SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter Ended October 31, 1995 Commission File Number 0-8675 OIL-DRI CORPORATION OF AMERICA (Exact name of registrant as specified in its charter) DELAWARE 36-2048898 (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Identification No.) 410 North Michigan Avenue Chicago, Illinois 60611 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (312) 321-1515 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for at least the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. Common Stock - 5,162,518 Shares (Including 420,596 Treasury Shares) Class B Stock - 2,071,000 Shares
OIL-DRI CORPORATION OF AMERICA & SUBSIDIARIES Consolidated Statement of Financial Position ASSETS October 31 July 31 (Unaudited) 1995 1994 1995 CURRENT ASSETS Cash and Cash Equivalents $ 7,481,401 $ 2,248,147 $ 8,829,667 Investment Securities, at Cost 1,427,000 3,586,569 2,332,665 Accounts Receivable 23,986,378 24,424,847 21,529,168 Allowance for Doubtful Accounts (202,734) (186,038) (180,602) Inventories 11,920,535 12,592,104 10,917,099 Prepaid Expenses and Taxes 5,232,141 3,870,540 5,317,169 Total Current Assets 49,844,721 46,536,169 48,745,166 PROPERTY, PLANT AND EQUIPMENT - AT COST Cost 107,750,187 102,235,020 106,957,911 Less Accumulated Depreciation and Amortization 49,425,032 41,763,672 47,498,516 Total Property, Plant and Equipment, Net 58,325,155 60,471,348 59,459,395 OTHER ASSETS Goodwill(Net of Accumulated amortization) 4,271,346 4,403,394 4,304,286 Deferred Income Taxes 485,668 - 484,324 Other 4,091,076 3,346,939 3,994,512 Total Other 8,848,090 7,750,333 8,783,122 Assets TOTAL ASSETS $117,017,966 $114,757,850 $116,987,683
OIL-DRI CORPORATION OF AMERICA & SUBSIDIARIES Consolidated Statement of Financial Position LIABILITIES & STOCKHOLDERS' EQUITY October 31 July 31 (Unaudited) 1995 1994 1995 CURRENT LIABILITIES Current Maturities of Notes $1,356,042 $ 649,944 $1,097,976 Payable Accounts Payable - Trade 5,609,047 5,258,876 4,710,251 Dividends Payable 517,014 520,552 511,166 Accrued Expenses 8,482,087 9,377,605 9,351,455 Total Current Liabilities 15,964,190 15,806,977 15,670,848 NONCURRENT LIABILITIES Notes Payable 20,421,579 21,519,373 20,422,265 Deferred Income Taxes - 326,284 - Deferred Compensation 1,854,310 1,610,740 1,778,075 Other 946,154 - 778,112 Total Noncurrent Liabilities 23,222,043 23,456,397 22,978,452 Total Liabilities 39,186,233 39,263,374 38,649,300 STOCKHOLDERS EQUITY Common Stock 723,352 723,352 723,352 Paid-In Capital in Excess of Par Value 7,657,394 7,657,394 7,657,394 Retained Earnings 76,919,725 72,366,497 76,033,462 Cumulative Translation Adjustment (1,010,660) (954,458) (987,781) 84,289,811 79,792,785 83,426,427 Less Treasury Stock, At Cost 6,458,078 4,298,309 5,088,044 Total Stockholders'Equity 77,831,733 75,494,476 78,338,383 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $117,017,966 $114,757,850 $116,987,683
OIL-DRI CORPORATION OF AMERICA & SUBSIDIARIES Consolidated Statement of Income and Retained Earnings Three Months Ended October 31 1995 1994 (Unaudited) (Unaudited) Net Sales $39,307,934 $39,025,208 Cost Of Sales 27,648,886 26,631,621 Gross Profit 11,659,048 12,393,587 Selling, General And Administrative Expenses 9,312,281 8,221,582 Operating Income 2,346,767 4,172,005 OTHER INCOME (EXPENSE) Interest Expense (490,161) (487,535) Interest Income 152,594 103,539 Foreign Exchange Gain (Loss) (3,593) 3,369 Other, Net (54,426) (21,496) (395,586) (402,123) Income Before Income Taxes 1,951,181 3,769,882 Income Taxes 538,293 950,950 Net Income 1,412,888 2,818,932 RETAINED EARNINGS Balance at Beginning of Year 76,024,301 70,077,278 Less: Cash Dividends Declared 517,464 529,713 Retained Earnings - October 31 $76,919,725 $72,366,497 Average Shares Outstanding $ 6,840,079 $ 6,957,700 Net Income Per Share $ 0.21 $ 0.41
OIL-DRI CORPORATION OF AMERICA & SUBSIDIARIES Consolidated Statement of Cash Flows For the Three Months Ended October 31 (Unaudited) 1995 1994 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Net Income $1,412,888 $2,818,932 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 2,019,766 1,821,537 Provision for bad debts 28,735 9,229 (Increase) Decrease in: Accounts Receivable (2,468,662) (4,515,026) Inventories (1,016,138) (1,350,335) Prepaid Expenses and Taxes 71,742 (154,179) Other Assets (91,996) (97,794) Increase (Decrease) in: Accounts Payable 160,589 595,723 Accrued Expenses (104,528) 168,050 Other 168,042 - Deferred Compensation 76,235 (151,078) Total Adjustments (1,156,215) (3,673,873) Net Cash Used In Operating Activities 256,673 ( 854,941) CASH FLOWS FROM INVESTING ACTIVITIES Capital Expenditures (863,670) (2,025,333) Purchases of Investment Securities - (2,116,842) Dispositions of Investment Securities 914,428 1,905,413 Other - 7,600 Net Cash Used in Investing Activities 50,758 (2,229,162) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Short Term Borrowings 257,380 - Principal Payments on Long Term Debt - (595,405) Dividends Paid (519,286) (455,483) Foreign Currency Translation Adjustment (23,757) 24,563 Purchases of Treasury Stock (1,370,034) (35,740) Net Cash Used In Financing Activities (1,655,697) (1,062,065) Net (Decrease) in Cash and Cash Equivalents (1,348,266) (4,146,168) Cash and Cash Equivalents, Beginning of Year $ 8,829,667 6,394,315 Cash and Cash Equivalents, October 31 $ 7,481,401 $ 2,248,147
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE MONTHS ENDED OCTOBER 31, 1995 COMPARED TO THREE MONTHS ENDED OCTOBER 31, 1994 RESULTS OF OPERATIONS Consolidated net sales for the three months ended October 31, 1995 were $39,308,000, an increase of $283,000, or 0.7%, over sales of $39,025,000 in the first three months of fiscal 1995. Net income for the three months ended October 31, 1995 was $1,413,000 or $0.21 per share, a decrease of 49.9% from $2,819,000 or $0.41 per share earned in the first quarter of fiscal 1995. Sales of industrial and environmental sorbents increased $119,000 from prior year first quarter levels. Sales of industrial clay absorbents increased $272,000 or 8.5%. Sales of nonclay sorbents decreased $153,000 or 11.3%, reflecting increased competition in the markets in which the Company participates. Sales of cat box absorbents increased $192,000 or 0.9% from fiscal 1995 first quarter results. This growth is the result of sales increases in branded and private label products in both the grocery and mass merchandise markets, offset by decreased contract packaging activity. Sales of agricultural absorbents decreased $339,000 or 7.4% from the comparable period in fiscal 1995 due to production rescheduling by several key customers. Worldwide sales of fluid filtration and purification products increased $105,000 or 3.2% from prior year first quarter levels. Sales of transportation services increased $463,000 or 23.2% from the first quarter of fiscal 1995 due to increased fleet size. Consolidated gross profit as a percentage of net sales for the three months ended October 31, 1995 decreased to 29.7% from 31.8% in the first three months of fiscal 1994. Changes in sales mix and increased costs of packaging materials and freight contributed to this decline. Operating expenses as a percentage of net sales increased to 23.7% in the first quarter of fiscal 1996 from 21.1% in the first quarter of fiscal 1995. This increase reflects the additional costs of television and print advertising and couponing associated with new product introductions. Interest expense increased slightly while interest income increased $49,100. The Company's effective tax rate was 27.6% of income in the first quarter of 1996 as compared to 25.2% the first quarter of fiscal 1995. Total assets of the Company remained unchanged during the three months ended October 31, 1995. Current assets increased $1,100,000 or 2.3% from fiscal year end balances reflecting increased accounts receivable and inventory balances offset against reduced cash and investments to fund increased sales. Property, plant and equipment, net of accumulated depreciation, decreased $1,134,000. Total liabilities in the three months ended October 31, 1995 increased $537,000. Current liabilities increased $293,000 or 1.9% from July 31, 1995 balances while noncurrent liabilities increased $244,000 or 1.1% from year end. The Company anticipates sales growth, primarily from branded and private label cat box absorbent products, as new product introductions take hold. The Company continues to anticipate that earnings over the remainder of fiscal 1996 will be lower than those of fiscal 1995, principally due to the cost of new product introductions in the consumer market. Actual results may be materially lower than those reflected in these foward-looking statements, due primarily to increased competition in the grocery and mass merchandising markets. LIQUIDITY AND CAPITAL RESOURCES The current ratio remained unchanged at 3.1 at October 31, 1995 compared to July 31, 1995. Working capital increased $806,000 in the three months ended October 31, 1995 to $33,881,000. Cash provided by operations continues to be the Company's primary source of funds to finance operating needs and capital expenditures. During the quarter the balances of cash, cash equivalents and other investments declined $2,254,000. This reduction in cash and investments was primarily used to fund capital expenditures of $864,000, to pay dividends of $519,000 and repurchase shares of the Company's Common Stock of $1,370,000. Total cash and investment balances held by the Company's foreign subsidiaries at October 31, 1995 and 1994 were $2,348,000 and $3,501,000 respectively. FOREIGN OPERATIONS The Company's net sales by its foreign subsidiaries for the three months ended October 31, 1995 were $2,908,000 constituting 7.4% of sales. This represents a decrease of $64,000 or 2.1%, from the first quarter of fiscal 1995 in which foreign subsidiary sales were $2,972,000 and constituted 7.6% of sales. Net income of the Company's foreign subsidiaries for the three months ended October 31, 1995 was $143,000 compared with $94,000 in the first quarter of fiscal 1995. Identifiable assets of the Company's foreign subsidiaries as of October 31, 1995 were $9,175,000 a decrease of $628,000 from $9,803,000 as of October 31, 1994. Part II - Other Information Item 5. (a) Exhibits: The following documents are an exhibit to this report. Exhibit - 11 - Statement Re: Computation of per share earnings. (b) During the quarter for which this report is filed, no reports on Form 8-K were filed. 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 thereunto duly authorized. OIL-DRI CORPORATION OF AMERICA (Registrant) BY /s/ Donald J. Deegan Donald J. Deegan Director of Finance and Accounting, Chief Accounting Officer BY /s/ Daniel S. Jaffee Daniel S. Jaffee President Dated: December 14, 1995 EX-11 2 Exhibit 11
OIL-DRI CORPORATION OF AMERICA Computation of Weighted Average Number of Shares Outstanding Average Shares- (Weighted Number Number of Shares)Number of Shares Weighted of Days Quarter End Period Days Outstanding Shares As Adjusted October 31, 08/01/95 to 8 6,901,322 55,210,576 1995 08/08/95 08/09/95 to 63 6,841,322 431,003,286 10/10/95 10/11/95 to 1 6,814,922 6,814,922 10/11/95 10/12/95 to 20 6,812,922 136,258,450 10/31/95 92 629,287,224 6,840,079 0 6,840,079 October 31, 08/01/94 to 8 6,951,822 55,614,576 1994 08/08/94 08/09/94 to 84 6,949,822 583,785,048 10/31/94 92 639,399,624 6,949,996 Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from exercise of such options. 7,704 6,957,700
EX-27 3
5 3-MOS JUL-31-1995 OCT-31-1995 7,481,401 1,427,000 23,986,378 (202,734) 11,920,535 49,844,721 107,750,187 (49,425,032) 117,017,966 15,964,190 20,421,579 723,352 0 0 77,108,381 117,017,966 39,307,934 39,307,934 27,648,886 27,648,886 9,188,971 28,735 490,161 1,951,181 538,293 1,412,888 0 0 0 1,412,888 0.21 0.21
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