EX-99.1 2 e19301ex99_1.txt PRESS RELEASE Exhibit 99.1 AMCOL International (NYSE: ACO) Reports 23 Percent Increase in Diluted Earnings Per Share Over Prior Year Third Quarter ARLINGTON HEIGHTS, Ill., Oct. 18 /PRNewswire-FirstCall/ -- AMCOL International Corp. (NYSE: ACO) today reported that third quarter net income was $8.3 million, or $0.27 per diluted share, compared with $6.6 million, or $.22 per diluted share, in the prior year quarter. The 2004 third quarter, as compared with the prior year's third quarter, was positively impacted by approximately $0.02 per diluted share due to a lower effective income tax rate. AMCOL reported net sales of $121.5 million for the quarter ended September 30, 2004, compared to $99.5 million for the same period in 2003. Operating profit grew to $11.6 million compared with $9.9 million in the prior-year period. For the nine-month period ended September 30, 2004, net income was $21.1 million, or $0.69 per diluted share, compared with $15.3 million, or $.51 per diluted share, in the prior-year period. Net sales for the nine- month period were $340.5 million compared to $272.2 million in the prior-year period. Operating profit was $30.0 million compared with $22.5 million for the 2003 period. Larry Washow, president and chief executive officer, said, "Earnings in the third quarter were held back by adverse weather conditions in the Southeastern United States. While these circumstances affected the performance in a number of environmental markets, the business prospects going forward are quite positive." Washow continued, "Even after considering the impact weather has had on earnings, AMCOL is delivering on its plans of improved profitability and top- line growth-posting a 25 percent increase in year-over-year nine-month revenues. Results for our minerals segment were the bright spot for the third quarter, in part related to the continued strong business levels in metalcasting despite the announced slow-down in U.S. automotive production." Washow added, "We are also making measurable progress building a broader customer base and moving toward revenue mixes which we expect will drive long- term growth in our Specialty Minerals Group." Washow noted that AMCOL has recently completed the purchase of a plant in Cartersville, Ga. from Unilever for $4.1 million. The plant will be used initially for consolidation of several environmental operations in the Southeastern U.S. SEGMENT DISCUSSIONS Minerals The minerals segment, which accounted for approximately 55 percent of consolidated net sales for the 2004 third quarter, reported a net sales increase of approximately 22 percent, and approximately a 34 percent increase in operating profit over the prior-year period. In year-over-year comparisons for the first nine months, net sales increased approximately 24 percent, while operating profit increased approximately 41 percent. Environmental The Company's environmental segment, which accounted for approximately 39 percent of AMCOL's net sales for the third quarter 2004, registered approximately a 3 percent decrease in operating profit on approximately a 25 percent increase in net sales as compared with the third quarter of the previous year. For the nine-months ended September 30, 2004, operating profit increased approximately 9 percent while net sales increased approximately 30 percent from the prior-year period. Transportation AMCOL's transportation segment accounted for approximately 9 percent of the Company's net sales, including inter-segment shipping revenue, for the current year third quarter. The segment reported approximately a 10 percent increase in operating profit, and approximately a 6 percent increase in net sales in year-over-year comparisons for the third quarter. For the nine-month period ended September 30, 2004, the segment reported a net sales increase of approximately 6 percent, and an increase in operating profit of approximately 9 percent from the prior-year period. FINANCIAL OVERVIEW Long-term debt amounted to $29.8 million at September 30, 2004 compared to $9.0 at December 31, 2003. Debt represented 13 percent of total capitalization at September 30, 2004, compared to 5 percent at December 31, 2003. The increase in debt relates to acquisitions and increases in working capital. Cash and cash equivalents were $12.9 million at September 30, 2004, compared with $13.5 million at the end of 2003. The weighted average number of common and common equivalent shares outstanding at September 30, 2004 was 30.8 million compared to approximately 29.8 million at the end of the prior year. Weighted average common and common equivalent shares outstanding remained the same and increased three percent for the quarter and nine months ended September 30, 2004, respectively. AMCOL's financial condition at September 30, 2004 included working capital of approximately $116.2 million and a current ratio of 3.0-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 $88.3 million at September 30, 2004 compared with $61.0 million at December 31, 2003. This increase is commensurate with growth in sales and acquisitions. AMCOL did not repurchase any Company stock in the third quarter of 2004. Through the first nine 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. 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 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 Nationwide Freight Service, Inc. 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, Oct. 29, 2004, at which time a transcript of the Webcast will be posted on the AMCOL website. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except number of shares) Nine months ended Three months ended September 30, September 30, 2004 2003 2004 2003 Net sales $340,535 $272,186 $121,540 $99,466 Cost of sales 257,013 205,001 91,502 74,101 Gross profit 83,522 67,185 30,038 25,365 General, selling and administrative expenses 53,557 44,646 18,414 15,423 Operating profit 29,965 22,539 11,624 9,942 Other income (expense): Interest expense, net (587) (293) (197) (91) Other income, net (69) 271 (151) 107 (656) (22) (348) 16 Income before income taxes and equity in income of minority interest and joint ventures 29,309 22,517 11,276 9,958 Income taxes 8,974 7,656 3,295 3,387 Income before equity in income of minority interest and joint ventures 20,335 14,861 7,981 6,571 Income from minority interest and joint ventures 805 410 336 61 Net income $21,140 $15,271 $8,317 $6,632 Weighted average common shares outstanding 29,110,751 28,176,170 29,148,594 28,421,103 Weighted average common and common equivalent shares outstanding 30,774,503 29,841,379 30,778,272 30,410,215 Basic earnings per share $0.73 $0.54 $0.29 $0.23 Diluted earnings per share $0.69 $0.51 $0.27 $0.22 Dividends declared per share $0.230 $0.110 $0.090 $0.040 AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except number of shares) September 30, December 31, 2004 2003 ASSETS Cash $12,860 $13,525 Accounts receivable, net 88,348 60,997 Inventories 55,299 46,182 Income tax receivable - 8,445 Other current assets 18,202 9,147 Total current assets 174,709 138,296 Property, plant, equipment and mineral rights 87,163 86,996 Investments in and advances to joint ventures 14,871 13,068 Intangible assets 17,701 6,978 Other long-term assets 13,659 13,439 $308,103 $258,777 LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable $63 $844 Accounts payable 19,529 20,365 Income tax payable 4,812 - Accrued liabilities 34,132 25,162 Total current liabilities 58,536 46,371 Long-term debt 29,766 9,006 Minority interest in subsidiaries 123 116 Other long-term obligations 20,389 18,386 20,512 18,502 Stockholders' equity 199,289 184,898 $308,103 $258,777 Common shares outstanding at the end of the period 29,344,254 29,107,746 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Nine months ended September 30, 2004 2003 Cash flows from operating activities: Net income $21,140 $15,271 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization 14,342 13,572 Increase in current assets (29,001) (23,590) Decrease (increase) in noncurrent assets (1,466) (992) Increase in current liabilities 8,803 10,913 Increase in noncurrent liabilities 1,737 804 Other 914 (589) Net cash provided by operating activities 16,469 15,389 Cash flows from investing activities: Acquisition of land, depreciable and intangible assets (12,077) (10,263) Acquisitions (13,335) (2,957) Other 878 797 Net cash used in investing activities (24,534) (12,423) Cash flows from financing activities: Net change in outstanding debt 16,024 (4,067) Dividends paid (6,731) (3,107) Proceeds from exercise of stock options 1,222 1,794 Purchases of treasury stock (2,879) (1,593) Net cash used in financing activities 7,636 (6,973) Effect of foreign currency rate changes on cash (236) 1,857 Net increase (decrease) in cash and cash equivalents (665) (2,150) Cash and cash equivalents at beginning of period 13,525 15,597 Cash and cash equivalents at end of period $12,860 $13,447 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES SEGMENT RESULTS (Unaudited) (Dollars in thousands) MINERALS Quarter ended September 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $60,603 $50,821 Shipping revenue 6,513 4,390 Net sales 67,116 100.0% 55,211 100.0% 11,905 21.6% Cost of sales - product 46,694 40,051 Cost of sales - shipping 6,513 4,390 Cost of sales 53,207 79.3% 44,441 80.5% Gross profit 13,909 20.7% 10,770 19.5% 3,139 29.1% General, selling and administrative exp. 5,811 8.7% 4,715 8.5% 1,096 23.2% Operating profit 8,098 12.1% 6,055 11.0% 2,043 33.7% ENVIRONMENTAL Quarter ended September 30, 2004 2003 2004 vs. 2003 $Change %Change Product sales $44,210 $35,064 Shipping revenue 3,561 3,203 Net sales 47,771 100.0% 38,267 100.0% 9,504 24.8% Cost of sales - product 29,293 21,593 Cost of sales - shipping 3,561 3,203 Cost of sales 32,854 68.8% 24,796 64.8% Gross profit 14,917 31.2% 13,471 35.2% 1,446 10.7% General, selling and administrative exp. 7,953 16.6% 6,300 16.5% 1,653 26.2% Operating profit 6,964 14.6% 7,171 18.7% (207) -2.9% TRANSPORTATION Quarter ended September 30, 2004 2003 2004 vs. 2003 $Change % Change Net sales $10,979 100.0% $10,367 100.0% 612 5.9% Cost of sales 9,765 88.9% 9,243 89.2% Gross profit 1,214 11.1% 1,124 10.8% 90 8.0% General, selling and administrative exp. 691 6.3% 647 6.2% 44 6.8% Operating profit $523 4.8% $477 4.7% 46 9.6% CORPORATE Quarter ended September 30, 2004 2003 2004 vs. 2003 $ Change % Change Intersegment shipping revenues $(4,326) $(4,379) Intersegment shipping costs (4,326) (4,379) Gross profit - - General, selling and administrative exp. 3,045 2,802 243 8.7% Nanocomposites 916 959 (43) -4.5% Operating loss $(3,961) $(3,761) (200) -5.3% AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES SEGMENT RESULTS (Unaudited) (Dollars in thousands) MINERALS Nine months ended September 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $180,045 $144,724 Shipping revenue 17,543 14,206 Net sales 197,588 100.0% 158,930 100.0% 38,658 24.3% Cost of sales - product 140,046 114,007 Cost of sales - shipping 17,543 14,206 Cost of sales 157,589 79.8% 128,213 80.7% Gross profit 39,999 20.2% 30,717 19.3% 9,282 30.2% General, selling and administrative exp. 16,228 8.2% 13,863 8.7% 2,365 17.1% Operating profit $23,771 12.0% $16,854 10.6% 6,917 41.0% ENVIRONMENTAL Nine months ended September 30, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $115,683 $88,287 Shipping revenue 8,605 7,382 Net sales 124,288 100.0% 95,669 100.0% 28,619 29.9% Cost of sales - product 75,521 54,946 Cost of sales - shipping 8,605 7,382 Cost of sales 84,126 67.7% 62,328 65.1% Gross profit 40,162 32.3% 33,341 34.9% 6,821 20.5% General, selling and administrative exp. 23,967 19.3% 18,466 19.3% 5,501 29.8% Operating profit $16,195 13.1% $14,875 15.5% 1,320 8.9% TRANSPORTATION Nine months ended September 30, 2004 2003 2004 vs. 2003 $Change % Change Net sales $30,369 100.0% $28,554 100.0% 1,815 6.4% Cost of sales 27,006 88.9% 25,427 89.0% Gross profit 3,363 11.1% 3,127 11.0% 236 7.5% General, selling and administrative exp. 2,003 6.6% 1,875 6.6% 128 6.8% Operating profit $1,360 4.5% $1,252 4.4% 108 8.6% CORPORATE Nine months ended September 30, 2004 2003 2004 vs. 2003 $ Change % Change Intersegment shipping revenues $(11,710) $(10,967) Intersegment shipping costs (11,710) (10,967) Gross profit - - General, selling and administrative exp. 8,639 7,535 1,104 14.7% Nanocomposites 2,722 2,907 (185) -6.4% Operating loss $(11,361) $(10,442) (919) -8.8% SOURCE AMCOL International Corp. -0- 10/18/2004 /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: CHM ENV SU: ERN CCA