EX-99.1 2 e18434ex99_1.txt PRESS RELEASE Exhibit 99.1 AMCOL International (NYSE: ACO) Reports 32 Percent Increase in Second Quarter Diluted Earnings Per Share Over 2003 Second Quarter ARLINGTON HEIGHTS, Ill., July 19 /PRNewswire-FirstCall/ -- AMCOL International Corp. (NYSE: ACO) today reported that second quarter net income was $7.7 million, or $.25 per diluted share, compared with $5.7 million, or $.19 per diluted share, in the prior year quarter. AMCOL reported net sales of $117.0 million for the quarter ended June 30, 2004, compared to $93.3 million for the same period in 2003. For the six-month period ended June 30, 2004, net sales were $219.0 million compared to $172.7 million in the prior-year period. Net income was $12.8 million, or $.42 per diluted share, compared with $8.6 million, or $.29 per diluted share in the same period of 2003. Larry Washow, president and chief executive officer said, "While there were many highlights in the quarter impacting the results, growth in our traditional markets in the U.S. and strong international performance really stand out. Our second-quarter results continue several quarters of year-over-year improvement. We are focused on leveraging our established competitive positions and creating additional future growth through our new product developments as well as acquisitions." Washow noted, "Acquisitions and favorable foreign exchange rates each accounted for approximately $.01 per share of the earnings improvement in the second quarter. Those categories each accounted for $.02 per share of the increase in earnings for the six month period." SEGMENT DISCUSSIONS Minerals The minerals segment, which accounted for approximately 57 percent of consolidated net sales for the second quarter, reported increased sales and operating profit of 24 percent and 40 percent, respectively. In year-over-year comparisons for the first six months, sales increased 26 percent, while operating profit increased 45 percent. Washow noted, "We are encouraged by continued demand in both the U.S. and Asia/Pacific metalcasting markets. Automotive sales remain brisk, while additional business from increased rail car and farm equipment production contributed further to the top line." Washow continued, "Higher sales in our specialty minerals group, in particular our detergent products, coupled with continued improvement in gross margin, contributed to the minerals segment's strong results for the quarter." Environmental The Company's environmental segment, which accounted for approximately 38 percent of AMCOL's consolidated net sales for the 2004 second quarter, registered a 16 percent increase in operating profit on 32 percent higher sales for the quarter ended June 30, 2004, compared to the same prior-year period. For the six-month period, operating profit increased 20 percent and sales increased 33 percent from the prior-year period. Washow commented, "The lining technologies group again delivered substantial sales growth including our recent European acquisition, which has expanded our marketshare for the environmental segment in Spain." Washow noted, "The segment's gross profit margin declined in comparison with the second quarter of 2003 due to the relatively lower profit earned on sales from businesses acquired in the past year." Transportation AMCOL's transportation operations accounted for approximately 9 percent of the Company's consolidated net sales, including inter-segment shipping revenue, for the current year second quarter. The segment also reported a 7 percent increase in sales and a 13 percent increase in operating profit for the three-month period. Sales and operating profits for the six-month period increased 7 percent and 8 percent, respectively. Washow commented, "High demand and improved equipment utilization contributed to higher second quarter sales, while improvement in pricing offset higher fuel costs." FINANCIAL OVERVIEW Long-term debt amounted to $31.3 million at June 30, 2004, compared to $9.0 million at December 31, 2003. Debt represented 14.0 percent of total capitalization at June 30, 2004, compared to 5.1 percent at December 31, 2003. The increase in debt was due to recent acquisitions and increases in working capital. Cash and cash equivalents were $16.0 million at June 30, 2004, compared with $13.5 million at the end of 2003. The weighted average number of common and common equivalent shares outstanding at June 30, 2004, were 30.9 million compared to approximately 29.8 million in the prior year. Weighted average common and common equivalent shares outstanding increased by 3.1 and 3.74 percent for the quarter and six months ended June 30, 2004, respectively. AMCOL's financial condition at June 30, 2004, included working capital of approximately $111.0 million and a current ratio of 2.9-to-1, compared to approximately $91.9 million and a current ratio of 3.0-to-1 at December 31, 2003. Accounts receivable increased to $86.6 million at June 30, 2004 compared with $61 million at December 31, 2003. This increase is commensurate with growth in sales and greater European accounts receivable. Through the first six months of 2004, AMCOL repurchased 183,400 shares of its common stock at an aggregate cost of approximately $2.9 million, or an average price of $15.70 per share. The Board of Directors approved a stock repurchase authorization of $10 million at its meeting held May 13, 2004 all of which remains available for stock repurchases as of this date. AMCOL International Corporation, 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. AMCOL's common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL will hold an audio webcast at 11 a.m. EDT today with Larry Washow, Gary Castagna and Jennifer Melsheimer to discuss additional details regarding the Company's performance for the quarter and other forward-looking information. The session may be accessed at http://www.amcol.com . The webcast will be available for replay through the close of business on Friday, July 30, 2004 at which time a transcript of the webcast will be posted on the AMCOL website. Financial tables follow. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except number of shares) Six months ended Three months ended June 30, June 30, 2004 2003 2004 2003 Net sales $218,995 $172,720 $117,028 $93,253 Cost of sales 165,511 130,900 88,080 70,057 Gross profit 53,484 41,820 28,948 23,196 General, selling and administrative expenses 35,143 29,223 17,847 14,929 Operating profit 18,341 12,597 11,101 8,267 Other income (expense): Interest expense, net (390) (202) (311) (122) Other income, net 82 164 39 132 (308) (38) (272) 10 Income before income taxes and equity in income of minority interest and joint ventures 18,033 12,559 10,829 8,277 Income taxes 5,679 4,269 3,410 2,814 Income before equity in income of minority interest and joint ventures 12,354 8,290 7,419 5,463 Income from minority interest and joint ventures 469 349 321 246 Net income $12,823 $8,639 $7,740 $5,709 Weighted average common shares outstanding 29,091,621 28,051,675 29,090,587 28,108,456 Weighted average common and common equivalent shares outstanding 30,859,545 29,745,805 30,835,691 29,896,941 Basic earnings per share $0.44 $0.30 $0.27 $0.20 Diluted earnings per share $0.42 $0.29 $0.25 $0.19 Dividends declared per share $0.140 $0.070 $0.070 $0.040 AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except number of shares) June 30, December 31, 2004 2003 ASSETS Cash $15,993 $13,525 Accounts receivable, net 86,642 60,997 Inventories 51,966 46,182 Income tax receivable - 8,445 Other current assets 14,496 9,147 Total current assets 169,097 138,296 Property, plant, equipment and mineral rights 87,346 86,996 Investments in and advances to joint ventures 13,432 13,068 Intangible assets 17,760 6,978 Other long-term assets 14,015 13,439 $301,650 $258,777 LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable $125 $844 Accounts payable 25,287 20,365 Income tax payable 3,355 - Accrued liabilities 29,306 25,162 Total current liabilities 58,073 46,371 Long-term debt 31,331 9,006 Minority interest in subsidiaries 117 116 Other long-term obligations 19,787 18,386 19,904 18,502 Stockholders' equity 192,342 184,898 $301,650 $258,777 Common shares outstanding at the end of the period 29,203,355 29,107,746 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Six Months Ended June 30, 2004 2003 Cash flows from operating activities: Net income $12,823 $8,639 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization 9,398 8,756 Increase in current assets (20,568) (17,221) Decrease (increase) in noncurrent assets (1,511) 35 Increase in current liabilities 8,371 1,353 Increase in noncurrent liabilities 1,135 240 Other 1,515 (155) Net cash provided by operating activities 11,163 1,647 Cash flows from investing activities: Acquisition of land, depreciable and intangible assets (7,446) (6,323) Acquisitions (13,335) - Other 1,629 (978) Net cash used in investing activities (19,152) (7,301) Cash flows from financing activities: Net change in outstanding debt 17,651 4,043 Dividends paid (4,091) (1,965) Proceeds from exercise of stock options 746 1,085 Purchases of treasury stock (2,879) (1,593) Net cash used in financing activities 11,427 1,570 Effect of foreign currency rate changes on cash (970) 1,597 Net increase (decrease) in cash and cash equivalents 2,468 (2,487) Cash and cash equivalents at beginning of period 13,525 15,597 Cash and cash equivalents at end of period $15,993 $13,110 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES SEGMENT RESULTS (Unaudited) (Dollars in thousands) MINERALS Quarter ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $60,325 $47,842 Shipping revenue 6,092 5,700 Net sales 66,417 100.0% 53,542 100.0% 12,875 24.0% Cost of sales-product 46,838 37,345 Cost of sales-shipping 6,092 5,700 Cost of sales 52,930 79.7% 43,045 80.4% Gross profit 13,487 20.3% 10,497 19.6% 2,990 28.5% General, selling and administrative exp. 5,249 7.9% 4,615 8.6% 634 13.7% Operating profit 8,238 12.4% 5,882 11.0% 2,356 40.1% ENVIRONMENTAL Quarter ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $41,406 $31,270 Shipping revenue 3,344 2,643 Net sales 44,750 100.0% 33,913 100.0% 10,837 32.0% Cost of sales-product 27,057 19,596 Cost of sales-shipping 3,344 2,643 Cost of sales 30,401 67.9% 22,239 65.6% Gross profit 14,349 32.1% 11,674 34.4% 2,675 22.9% General, selling and administrative exp. 8,197 18.3% 6,353 18.7% 1,844 29.0% Operating profit 6,152 13.7% 5,321 15.7% 831 15.6% TRANSPORTATION Quarter ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Net sales $10,058 100.0% $9,390 100.0% 668 7.1% Cost of sales 8,946 88.9% 8,365 89.1% Gross profit 1,112 11.1% 1,025 10.9% 87 8.5% General, selling and administrative exp. 661 6.6% 626 6.7% 35 5.6% Operating profit $451 4.5% $399 4.3% 52 13.0% CORPORATE Quarter ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Intersegment shipping revenues $(4,197) $(3,592) Intersegment shipping costs (4,197) (3,592) Gross profit - - General, selling and administrative exp. 2,848 2,415 433 17.9% Nanocomposites 892 920 (28) -3.0% Operating loss $(3,740) $(3,335) (405) -12.1% AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES SEGMENT RESULTS (Unaudited) (Dollars in thousands) MINERALS Six months ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $119,442 $93,903 Shipping revenue 11,030 9,816 Net sales 130,472 100.0% 103,719 100.0% 26,753 25.8% Cost of sales-product 93,352 73,956 Cost of sales-shipping 11,030 9,816 Cost of sales 104,382 80.0% 83,772 80.8% Gross profit 26,090 20.0% 19,947 19.2% 6,143 30.8% General, selling and administrative exp. 10,417 8.0% 9,148 8.8% 1,269 13.9% Operating profit $15,673 12.0% $10,799 10.4% 4,874 45.1% ENVIRONMENTAL Six months ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $71,473 $53,223 Shipping revenue 5,044 4,179 Net sales 76,517 100.0% 57,402 100.0% 19,115 33.3% Cost of sales-product 46,228 33,353 Cost of sales-shipping 5,044 4,179 Cost of sales 51,272 67.0% 37,532 65.4% Gross profit 25,245 33.0% 19,870 34.6% 5,375 27.1% General, selling and administrative exp. 16,014 20.9% 12,166 21.2% 3,848 31.6% Operating profit $9,231 12.2% $7,704 13.4% 1,527 19.8% TRANSPORTATION Six months ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Net sales $19,390 100.0% $18,187 100.0% 1,203 6.6% Cost of sales 17,241 88.9% 16,184 89.0% Gross profit 2,149 11.1% 2,003 11.0% 146 7.3% General, selling and administrative exp. 1,312 6.8% 1,228 6.8% 84 6.8% Operating profit $837 4.3% $775 4.3% 62 8.0% CORPORATE Six months ended June 30, 2004 2003 2004 vs. 2003 $ Change % Change Intersegment shipping revenues $(7,384) $(6,588) Intersegment shipping costs (7,384) (6,588) Gross profit - - General, selling and administrative exp. 5,594 4,733 861 18.2% Nanocomposites 1,806 1,948 (142) -7.3% Operating loss $(7,400) $(6,681) (719) -10.8% SOURCE AMCOL International Corp. -0- 07/19/2004 /CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL International Corp., +1-847-394-8730/ /Web site: http://www.amcol.com / (ACO) CO: AMCOL International Corp. ST: Illinois IN: MNG CHM ENV SU: ERN CCA