0001102624-12-000834.txt : 20121026 0001102624-12-000834.hdr.sgml : 20121026 20121026071617 ACCESSION NUMBER: 0001102624-12-000834 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20121026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events FILED AS OF DATE: 20121026 DATE AS OF CHANGE: 20121026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMCOL INTERNATIONAL CORP CENTRAL INDEX KEY: 0000813621 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 360724340 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14447 FILM NUMBER: 121162777 BUSINESS ADDRESS: STREET 1: 2870 FORBS AVENUE CITY: HOFFMAN ESTATES STATE: IL ZIP: 60192 BUSINESS PHONE: 8478511500 MAIL ADDRESS: STREET 1: 2870 FORBS AVENUE CITY: HOFFMAN ESTATES STATE: IL ZIP: 60192 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN COLLOID CO DATE OF NAME CHANGE: 19920703 8-K 1 amcol8k.htm AMCOL INTERNATIONAL CORPORATION 8-K amcol8k.htm
 






UNITED STATES
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

Date of Report (Date of earliest event reported): October 26, 2012
_______________

AMCOL INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
State of Other Jurisdiction of Incorporation
0-15661
Commission File Number
36-0724340
I.R.S. Employer Identification Number

2870 Forbs Avenue
Hoffman Estates, IL  60192
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (847) 851-1500

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ]   Written communications pursuant to Rule 45 under the Securities Act (17 CFR 230.425)
[ ]   Soliciting materials pursuant to Rule 14a – 12 under the Exchange Act (17 CFR 240.14a-12)
[ ]   Pre-commencement communications pursuant to Rule 14d – 2 (b) under the Exchange Act (17 CFR 240. 14d-2 (b))
[ ]   Pre-commencement communications pursuant to Rule 13e - 4 (c) under the Exchange Act (17 CFR 240.13e-4 (c))
 
 
 

 
 
ITEM 2.02            RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The information in this item is being furnished to, but not filed with, the Securities and Exchange Commission solely under Item 12 of Form 8-K, “Results of Operations and Financial Condition,” pursuant to interim procedures promulgated by the Securities and Exchange Commission in Release 33-8216 issued March 27, 2003.

On October 26, 2012, the registrant issued a press release to report results for its third quarter ended September 30, 2012.

That press release dated, October 26, 2012 and titled “AMCOL INTERNATIONAL CORPORATION (NYSE:ACO) REPORTS THIRD QUARTER RESULTS” is attached hereto as Exhibit 99.1.


ITEM 8.01            OTHER EVENTS

The information in this item is being furnished to, but not filed with, the Securities and Exchange Commission solely under Item 12 of Form 8-K, “Results of Operations and Financial Condition,” pursuant to interim procedures promulgated by the Securities and Exchange Commission in Release 33-8216 issued March 27, 2003.

On October 25, 2012, the registrant issued a press release to report revised results for its second quarter ended June 30, 2012 and the filing date for the second quarter Form 10-Q on October 30, 2012.”

That press release dated, October 25, 2012 and titled “AMCOL INTERNATIONAL CORPORATION (NYSE:ACO) REPORTS IMMINENT FILING OF SECOND QUARTER FORM 10-Q” is attached hereto as Exhibit 99.2.


ITEM 9.01            Financial Statements and Exhibits

(d)           The following exhibit is furnished with this document:

Number                  Exhibit
 
99.1  
Press Release titled “AMCOL INTERNATIONAL (NYSE:ACO) REPORTS THIRD QUARTER RESULTS”
 
 
99.2  
Press Release titled “AMCOL INTERNATIONAL (NYSE:ACO) REPORTS IMMINENT FILING OF SECOND QUARTER FORM 10-Q”
 
 

 
 

 
 
SIGNATURE

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.
 

 
 
 
 
Date:  October 26, 2012
AMCOL INTERNATIONAL CORPORATION
 
 
By:          /s/   Ryan F. McKendrick
Ryan F. McKendrick
President and Chief Executive Officer
 
 
 


 
EX-99.1 2 exh99_1.htm EXHIBIT 99.1 exh99_1.htm
 


Exhibit 99.1
 
Logo
 
 
AMCOL INTERNATIONAL CORPORATION (NYSE:ACO)
REPORTS THIRD QUARTER RESULTS

HOFFMAN ESTATES, IL, October 26, 2012— For the third quarter of 2012, AMCOL International Corporation (NYSE:ACO) generated diluted earnings attributable to its shareholders from continuing operations of $0.58 per share versus $0.66 per share in the prior year’s quarter, which included a $0.07 per share benefit from the gain on the sale of our Belgian joint venture investment and a $0.03 per share benefit from the favorable settlement of tax audits.

Net sales increased 2.1% to $253.3 million for the 2012 third quarter as compared to $248.1 million for the 2011 period.  Excluding the effects of foreign currency exchange rate fluctuations, net sales would have increased 4.7%.  Our results were negatively impacted by the performance of our lining technologies product line, which continues to face increased competition in a declining market.  We are addressing these challenges by developing new products and targeting new markets.

Gross profit decreased 1.7% in the 2012 third quarter, and gross profit margin decreased 110 basis points to 27.4%.  Selling, general and administrative expenses decreased 5.0% to $41.8 million.  Operating profit increased 3.8% to $27.6 million, and operating profit margins remained relatively constant at approximately 10.9%.  Our effective tax rate for the 2012 third quarter was 29.5% compared to 22.5% in the prior year period.  Excluding the favorable resolution of tax audits, the effective tax rate in the third quarter of 2011, would have been 26.7%.  In addition as previously mentioned, income from joint ventures and affiliates decreased $1.9 million in the current year period as the prior year period included a $2.1 million, or $0.07 per share, gain from the sale of a joint venture investment in Belgium.

“As the year has progressed, we have seen continued economic weakening and uncertainty impacting end markets in a number of sectors – especially those related to certain construction and consumer products as customers have delayed projects and reduced orders,” said AMCOL President and CEO Ryan McKendrick.

 “In Minerals & Materials, we saw continued strength in the domestic metalcasting business, but we experienced a 1.1% decline in segment sales resulting partially from lower demand for drilling additives and pet products.  Our manufacturing facilities reacted quickly to the reductions and, as a result, maintained gross margin above 25%,”   McKendrick continued.
 
 
 

 
 
“Our Environmental segment experienced a 15.0% decline in sales – primarily due to market conditions that have negatively impacted lining technologies demand and our decision to significantly reduce our contracting services.  We continue to focus on growing sales in our building materials and construction related drilling product lines which now account for 50% of segment sales.  As a result, gross margin for the segment improved to 32.6%,” McKendrick added.

McKendrick continued, “In Oilfield Services, we achieved record revenues and operating profit with the strengthening of our market position in key international markets and in service lines where we anticipate growth in the coming years. Pricing pressures and cost increases in our coil tubing services adversely affected our results along with activity disruptions caused by Hurricane Isaac.”

“We are confident in the long term fundamentals of our business, and our growth strategy remains unchanged.  We continue building the framework to maintain our leadership position in key product lines by expanding our global presence and developing a balanced participation in growing market sectors such as energy, industrial, consumer, and infrastructure,” he concluded.
 
 
STATEMENT OF OPERATIONS HIGHLIGHTS:

The statement of operations highlights are supported by the quarterly segment results schedules included in this press release. The following comments relate to our results for the current quarter as compared to the same quarter in the prior year, unless otherwise noted.

Net sales: Net sales increased $5.2 million or 2.1%.

Minerals & Materials:  Increased selling prices were overshadowed by lower volumes and unfavorable foreign currency exchange rate movements, leading to the overall decrease in sales.  Volumes have decreased in our pet products and drilling additive products (within basic minerals).  In pet products, we are seeing lower overall market demand.  Our drilling fluid additives have suffered due to inventory destocking by customers.   Although our metalcasting product line sales increased, we are seeing a decrease in demand in China due to decreased infrastructure related castings.

Environmental:  Approximately 37% of the $10.7 million decrease in sales resulted from unfavorable foreign currency exchange rate movements, almost entirely in our European subsidiaries.  The majority of the remaining decrease also occurred in these European subsidiaries as a result of our decision to downsize our contracting services.  Our lining technologies product line also continues to experience weakened demand due to a declining market and increased competition.  These reductions have overshadowed increased sales of our drilling products.

Oilfield Services:   This segment has experienced strong growth due to increases in demand and our service capacity as well as growth in our international operations.  Our international operations generated 69.5% of the increase in sales, the majority of which is related to our water filtration business.  Domestically, our revenues increased in our water filtration, well testing and pipeline services.
 
 
 

 
 
Transportation:  Revenues decreased primarily due to lower shipment volumes. Revenues continue to suffer from decreased supply of carriers and owner operators who are being recruited to oil and gas opportunities within the Bakken shale region.

Gross profit:  Gross profit decreased by $1.2 million, or 1.7%, to $69.4 million.  Gross margin decreased 110 basis points to 27.4%.

Minerals & Materials: Gross profit and gross profit margin in this segment was comparable to the prior year quarter.

Environmental:  Gross profit decreased due to less sales, however, gross profit margin increased 150 basis points due to better cost management, a beneficial change in product mix, and increased selling prices in our drilling and building materials product lines.

Oilfield Services:  Nearly all of the improvement in this segment’s gross profits occurred in our international operations where performance has improved due to new management, increasing demand for our services, and greater success at winning large contracts.  Domestically, revenues were stagnant in our coil tubing services, where gross profit margins also suffered due to pricing pressures and cost increases.

Selling, general and administrative expenses (SG&A): SG&A expenses decreased $2.2 million, or 5.0%, due largely to decreases in our Environmental and Corporate segments.  Our Environmental segment benefitted equally from favorable foreign currency exchange rate movements and decreased bad debt expenses.  Our Corporate segment’s expenses decreased due to decreased employee benefit expenses.  Our Minerals & Materials segment’s expenses increased 10% due to a variety of factors, the largest of which is increased headcounts and compensation.

Income tax expense:  The prior year period includes favorable settlements on income tax audits which depressed the effective income tax rate in that period by 420 basis points.  The current period’s pre-tax income is more concentrated in higher tax rate jurisdictions; the current period’s effective tax rate is 29.5%.


FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:

The paragraphs in this section compare our balance sheet as of September 30, 2012 to that as of December 31, 2011.  We also make comparisons between cash flows for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011.

Cash flow generated from operating activities increased $55.9 million largely due to improved management of non-cash working capital and greater net income.  Our accounts receivable and inventory balances have increased at a slower rate as compared to the prior year period.  We also paid down $16.8 million of long-term debt during the current period as opposed to borrowing $14.9 million in the prior year period.  Long-term debt as a percentage of total capitalization decreased 460 basis points to 35.1%.

Capital expenditures were $54.2 million as compared to $43.8 million in the prior year period.  Expenditures associated with our start-up chromite operations were $7.1 million and $5.9 million in the 2012 and 2011 periods, respectively.  In the current year, the majority of our capital spending occurred in our Oilfield Services and Minerals & Materials segments.
 
 
 

 

Dividends for 2012 remained fairly constant between the periods.  However, our dividend rate increased in the third quarter as compared to the second quarter of 2012 by $0.02 to $0.20 per share.

This release should be read in conjunction with the attached unaudited, condensed, consolidated financial statements.  It 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 undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL’s expectations.

AMCOL International, headquartered in Hoffman Estates, IL, develops and markets a wide range of mineral and technology based products and services for use in various industrial, environmental and consumer applications.  AMCOL is the parent company of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, 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 quarterly quarter conference call will be available live today at 11 a.m. ET on the AMCOL website via webcast or by dialing 1-877-240-9772.

Financial tables follow.
 
 
 

 
 
AMCOL INTERNATIONAL CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
(unaudited)
 
(In millions, except per share data)
 
                         
   
Nine Months Ended
   
Three Months Ended
 
 
September 30,
   
September 30,
 
 
2012
   
2011
   
2012
   
2011
 
                         
Continuing Operations
                       
Net sales
  $ 746.3     $ 709.8     $ 253.3     $ 248.1  
Cost of sales
    537.7       518.8       183.9       177.5  
Gross profit
    208.6       191.0       69.4       70.6  
Selling, general, and administrative expenses
    128.7       124.1       41.8       44.0  
Operating profit
    79.9       66.9       27.6       26.6  
Other income (expense):
                               
Interest expense, net
    (7.9 )     (8.1 )     (2.5 )     (2.8 )
Other, net
    (2.7 )     (0.1 )     -       (0.2 )
      (10.6 )     (8.2 )     (2.5 )     (3.0 )
Income before income taxes and income (loss) from affiliates and joint ventures
    69.3       58.7       25.1       23.6  
Income tax expense
    19.3       14.9       7.4       5.3  
Income before income (loss) from affiliates and joint ventures
    50.0       43.8       17.7       18.3  
                                 
Income (loss) from affiliates and joint ventures
    3.4       3.9       1.1       3.0  
Net income (loss) from continuing operations
    53.4       47.7       18.8       21.3  
                                 
Discontinued Operations
                               
Income (loss) on discontinued operations
    -       (1.2 )     -       (1.3 )
Net income (loss)
    53.4       46.5       18.8       20.0  
Net income (loss) attributable to noncontrolling interests
    (0.2 )     (0.1 )     -       (0.1 )
Net income (loss) attributable to AMCOL shareholders
  $ 53.6     $ 46.6     $ 18.8     $ 20.1  
                                 
Weighted average common shares outstanding
    32.0       31.7       32.1       31.8  
                                 
Weighted average common and common equivalent shares outstanding
    32.3       32.1       32.5       32.2  
                                 
Earnings per share attributable to AMCOL shareholders
                               
                                 
Basic earnings (loss) per share:
                               
Continuing operations
  $ 1.67     $ 1.51     $ 0.59     $ 0.67  
Discontinued operations
    -       (0.04 )     -       (0.04 )
Net income
  $ 1.67     $ 1.47     $ 0.59     $ 0.63  
                                 
Diluted earnings (loss) per share:
                               
Continuing operations
  $ 1.66     $ 1.49     $ 0.58     $ 0.66  
Discontinued operations
    -       (0.04 )     -       (0.04 )
Net income
  $ 1.66     $ 1.45     $ 0.58     $ 0.62  
                                 
Dividends declared per share
  $ 0.56     $ 0.54     $ 0.20     $ 0.18  
                                 

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In millions)
 
             
             
ASSETS
 
 
September 30,
   
December 31,
 
 
2012
   
2011
 
 
(unaudited)
      *  
Current assets:
             
Cash and equivalents
  $ 17.7     $ 23.7  
Accounts receivable, net
    219.9       204.8  
Inventories
    160.8       144.8  
Prepaid expenses
    19.4       15.7  
Deferred income taxes
    6.8       5.9  
Income tax receivable
    15.1       6.9  
Other
    2.6       6.1  
Total current assets
    442.3       407.9  
                 
Noncurrent assets:
               
Property, plant, equipment, mineral rights and reserves:
               
Land
    12.9       13.9  
Mineral rights
    49.9       52.5  
Depreciable assets
    535.6       482.6  
      598.4       549.0  
Less: accumulated depreciation and depletion
    303.4       275.5  
      295.0       273.5  
                 
Goodwill
    69.9       69.5  
Intangible assets, net
    34.8       36.6  
Investments in and advances to affiliates and joint ventures
    28.0       26.4  
Available-for-sale securities
    7.9       3.8  
Deferred income taxes
    9.3       8.5  
Other assets
    25.6       24.4  
Total noncurrent assets
    470.5       442.7  
Total Assets
  $ 912.8     $ 850.6  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
               
Current liabilities:
               
Accounts payable
  $ 52.7     $ 56.5  
Accrued income taxes
    18.2       2.4  
Accrued liabilities
    66.9       57.9  
Total current liabilities
    137.8       116.8  
                 
Noncurrent liabilities:
               
Long-term debt
    244.1       260.7  
Pension liabilities
    35.3       34.8  
Deferred compensation
    10.3       8.9  
Deferred income taxes
    13.0       13.5  
Other long-term liabilities
    21.7       19.2  
Total noncurrent liabilities
    324.4       337.1  
                 
Shareholders' Equity:
               
Common stock
    0.3       0.3  
Additional paid in capital
    100.8       94.3  
Retained earnings
    352.1       316.4  
Accumulated other comprehensive income
    (5.7 )     (15.0 )
Less: Treasury stock
    (0.7 )     (3.4 )
Total AMCOL shareholders' equity
    446.8       392.6  
                 
Noncontrolling interest
    3.8       4.1  
Total equity
    450.6       396.7  
                 
Total Liabilities and Shareholders' Equity
  $ 912.8     $ 850.6  
                 
                 
* Condensed from audited financial statements.
               

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
(In millions)
 
             
   
Nine Months Ended
 
 
September 30,
 
 
2012
   
2011
 
Cash flow from operating activities:
           
Net income
  $ 53.4     $ 46.5  
Adjustments to reconcile net income to net cash
               
provided by (used in) operating activities:
               
Depreciation, depletion, and amortization
    33.3       31.2  
Other non-cash charges
    5.3       4.1  
Changes in assets and liabilities, net of effects of acquisitions:
               
Decrease (increase) in current assets
    (43.1 )     (90.3 )
Decrease (increase) in noncurrent assets
    (0.5 )     2.5  
Increase (decrease) in current liabilities
    19.0       24.2  
Increase (decrease) in noncurrent liabilities
    5.2       (1.5 )
Net cash provided by (used in) operating activities
    72.6       16.7  
                 
Cash flow from investing activities:
               
Capital expenditures
    (54.2 )     (43.8 )
Investments in and advances to affiliates and joint ventures
    0.2       (0.7 )
Proceeds from sale of land and depreciable assets
    1.5       1.6  
Other
    1.9       2.5  
Net cash (used in) investing activities
    (50.6 )     (40.4 )
Cash flow from financing activities:
               
Net change in outstanding debt
    (16.8 )     14.9  
Proceeds from exercise of stock awards
    4.9       6.9  
Dividends
    (17.2 )     (17.1 )
Excess tax benefits from stock-based compensation
    0.2       0.7  
Net cash provided by (used in) financing activities
    (28.9 )     5.4  
Effect of foreign currency rate changes on cash
    0.9       0.8  
Net increase (decrease) in cash and cash equivalents
    (6.0 )     (17.5 )
Cash and cash equivalents at beginning of period
    23.7       26.8  
Cash and cash equivalents at end of period
  $ 17.7     $ 9.3  

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
 
SEGMENT RESULTS (unaudited)
 
QUARTER-TO-DATE
 
                                     
Minerals and Materials
 
Three Months Ended September 30,
 
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 121.0       100.0 %   $ 122.3       100.0 %   $ (1.3 )     -1.1 %
Cost of sales
    89.8       74.2 %     90.7       74.2 %     (0.9 )     -1.0 %
Gross profit
    31.2       25.8 %     31.6       25.8 %     (0.4 )     -1.3 %
Selling, general and
                                               
administrative expenses
    13.2       10.9 %     12.0       9.8 %     1.2       10.0 %
Operating profit
    18.0       14.9 %     19.6       16.0 %     (1.6 )     -8.2 %

Environmental
 
Three Months Ended September 30,
 
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 60.4       100.0 %   $ 71.1       100.0 %   $ (10.7 )     -15.0 %
Cost of sales
    40.7       67.4 %     49.0       68.9 %     (8.3 )     -16.9 %
Gross profit
    19.7       32.6 %     22.1       31.1 %     (2.4 )     -10.9 %
Selling, general and
                                               
administrative expenses
    13.1       21.7 %     14.3       20.1 %     (1.2 )     -8.4 %
Operating profit
    6.6       10.9 %     7.8       11.0 %     (1.2 )     -15.4 %

   
Three Months Ended September 30,
 
Oilfield Services
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 69.1       100.0 %   $ 50.2       100.0 %   $ 18.9       37.6 %
Cost of sales
    51.4       74.4 %     34.9       69.5 %     16.5       47.3 %
Gross profit
    17.7       25.6 %     15.3       30.5 %     2.4       15.7 %
Selling, general and
                                               
administrative expenses
    9.8       14.2 %     9.6       19.1 %     0.2       2.1 %
Operating profit
    7.9       11.4 %     5.7       11.4 %     2.2       38.6 %

   
Three Months Ended September 30,
 
Transportation
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 10.7       100.0 %   $ 14.8       100.0 %   $ (4.1 )     -27.7 %
Cost of sales
    9.6       89.7 %     13.1       88.5 %     (3.5 )     -26.7 %
Gross profit
    1.1       10.3 %     1.7       11.5 %     (0.6 )     -35.3 %
Selling, general and
                                               
administrative expenses
    0.9       8.4 %     1.0       6.8 %     (0.1 )     -10.0 %
Operating profit
    0.2       1.9 %     0.7       4.7 %     (0.5 )     -71.4 %

   
Three Months Ended September 30,
 
Corporate
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                         
Intersegment shipping sales
  $ (7.9 )   $ (10.3 )   $ 2.4        
Intersegment shipping costs
    (7.6 )     (10.2 )     2.6        
Gross profit (loss)
    (0.3 )     (0.1 )     (0.2 )      
Selling, general and
                             
administrative expenses
    4.8       7.1       (2.3 )     -32.4 %
Operating loss
    (5.1 )     (7.2 )     2.1       -29.2 %

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
 
SEGMENT RESULTS (unaudited)
 
YEAR-TO-DATE
 
                                     
Minerals and Materials
 
Nine Months Ended September 30,
 
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 377.3       100.0 %   $ 356.4       100.0 %   $ 20.9       5.9 %
Cost of sales
    277.1       73.4 %     270.6       75.9 %     6.5       2.4 %
Gross profit
    100.2       26.6 %     85.8       24.1 %     14.4       16.8 %
Selling, general and
                                               
administrative expenses
    38.2       10.1 %     36.7       10.3 %     1.5       4.1 %
Operating profit
    62.0       16.5 %     49.1       13.8 %     12.9       26.3 %

   
Nine Months Ended September 30,
 
Environmental
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 172.8       100.0 %   $ 197.6       100.0 %   $ (24.8 )     -12.6 %
Cost of sales
    120.0       69.4 %     137.4       69.5 %     (17.4 )     -12.7 %
Gross profit
    52.8       30.6 %     60.2       30.5 %     (7.4 )     -12.3 %
Selling, general and
                                               
administrative expenses
    39.2       22.7 %     42.3       21.4 %     (3.1 )     -7.3 %
Operating profit
    13.6       7.9 %     17.9       9.1 %     (4.3 )     -24.0 %

   
Nine Months Ended September 30,
 
Oilfield Services
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 185.5       100.0 %   $ 140.9       100.0 %   $ 44.6       31.7 %
Cost of sales
    133.2       71.8 %     100.3       71.2 %     32.9       32.8 %
Gross profit
    52.3       28.2 %     40.6       28.8 %     11.7       28.8 %
Selling, general and
                                               
administrative expenses
    31.9       17.2 %     25.4       18.0 %     6.5       25.6 %
Operating profit
    20.4       11.0 %     15.2       10.8 %     5.2       34.2 %

   
Nine Months Ended September 30,
 
Transportation
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                                     
Net sales
  $ 33.5       100.0 %   $ 42.3       100.0 %   $ (8.8 )     -20.8 %
Cost of sales
    30.0       89.6 %     37.5       88.7 %     (7.5 )     -20.0 %
Gross profit
    3.5       10.4 %     4.8       11.3 %     (1.3 )     -27.1 %
Selling, general and
                                               
administrative expenses
    2.8       8.4 %     2.9       6.9 %     (0.1 )     -3.4 %
Operating profit
    0.7       2.0 %     1.9       4.4 %     (1.2 )     -63.2 %

   
Nine Months Ended September 30,
 
Corporate
 
2012
   
2011
   
2012 vs. 2011
 
   
(Dollars in Millions)
 
                         
Intersegment sales
  $ (22.8 )   $ (27.4 )   $ 4.6        
Intersegment cost of sales
    (22.6 )     (27.0 )     4.4        
Gross profit (loss)
    (0.2 )     (0.4 )     0.2        
Selling, general and
                             
administrative expenses
    16.6       16.8       (0.2 )     -1.2 %
Operating loss
    (16.8 )     (17.2 )     0.4       -2.3 %

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
       
SUPPLEMENTARY INFORMATION (unaudited)
       
QUARTER-TO-DATE
       
                         
  Composition of Sales by Geographic Region
 
Three Months Ended September 30, 2012
 
 
Americas
   
EMEA
   
Asia Pacific
   
Total
 
 
Minerals & Materials
    28.6 %     8.6 %     10.0 %     47.2 %
Environmental
    10.9 %     10.7 %     2.1 %     23.7 %
Oilfield Services
    19.5 %     2.3 %     5.4 %     27.2 %
Transportation & intersegment shipping
    1.9 %     0.0 %     0.0 %     1.9 %
Total - current year's period
    60.9 %     21.6 %     17.5 %     100.0 %
Total from prior year's comparable period
    62.3 %     24.2 %     13.5 %     100.0 %

   
Three Months Ended September 30, 2012
 
   
vs.
 
Percentage of Revenue Growth by Component
 
Three Months Ended September 30, 2011
 
   
Base Business
   
Acquisitions
   
Foreign Exchange
   
Total
 
 
Minerals & Materials
    0.2 %     0.0 %     -0.7 %     -0.5 %
Environmental
    -2.7 %     0.0 %     -1.6 %     -4.3 %
Oilfield Services
    7.9 %     0.0 %     -0.3 %     7.6 %
Transportation & intersegment shipping
    -0.7 %     0.0 %     0.0 %     -0.7 %
Total
    4.7 %     0.0 %     -2.6 %     2.1 %
% of growth
    223.8 %     0.0 %     -123.8 %     100.0 %

   
Three Months Ended September 30,
 
Minerals and Materials Product Line Sales
 
2012
   
2011
   
% change
 
   
(Dollars in Millions)
 
                   
Metalcasting
  $ 67.8     $ 66.0       2.7 %
Specialty materials
    22.7       25.5       -11.0 %
Basic minerals
    15.2       14.5       4.8 %
Pet products
    11.9       14.1       -15.6 %
Other product lines
    3.4       2.2       54.5 %
Total
    121.0       122.3       -1.1 %

   
Three Months Ended September 30,
 
Environmental Product Line Sales
 
2012
   
2011
   
% change
 
   
(Dollars in Millions)
 
                   
Lining technologies
  $ 25.1     $ 29.6       -15.2 %
Building materials
    20.3       21.4       -5.1 %
Drilling products
    9.9       8.6       15.1 %
Contracting services
    5.1       11.5       -55.7 %
Total
    60.4       71.1       -15.0 %

 
 

 
 
AMCOL INTERNATIONAL CORPORATION
       
SUPPLEMENTARY INFORMATION (unaudited)
       
YEAR-TO-DATE
       
                         
  Composition of Sales by Geographic Region
 
Nine Months Ended September 30, 2012
 
 
Americas
   
EMEA
   
Asia Pacific
   
Total
 
 
Minerals and materials
    31.0 %     8.5 %     10.3 %     49.8 %
Environmental
    11.3 %     9.5 %     2.2 %     23.0 %
Oilfield services
    19.7 %     1.7 %     3.5 %     24.9 %
Transportation & intersegment shipping
    2.3 %     0.0 %     0.0 %     2.3 %
Total - current year's period
    64.3 %     19.7 %     16.0 %     100.0 %
Total from prior year's comparable period
    62.4 %     23.9 %     13.7 %     100.0 %

   
Nine Months Ended September 30, 2012
 
   
vs.
 
Percentage of Revenue Growth by Component  
 
Nine Months Ended September 30, 2011
 
   
Organic
   
Acquisitions
   
Foreign Exchange
   
Total
 
 
Minerals and materials
    3.6 %     0.0 %     -0.7 %     2.9 %
Environmental
    -2.0 %     0.0 %     -1.5 %     -3.5 %
Oilfield services
    6.5 %     0.0 %     -0.2 %     6.3 %
Transportation & intersegment shipping
    -0.6 %     0.0 %     0.0 %     -0.6 %
Total
    7.5 %     0.0 %     -2.4 %     5.1 %
% of growth
    147.1 %     0.0 %     -47.1 %     100.0 %

   
Nine Months Ended September 30,
 
Minerals and Materials Product Line Sales
 
2012
   
2011
   
% change
 
   
(Dollars in Millions)
 
                   
Metalcasting
  $ 201.6     $ 187.0       7.8 %
Specialty materials
    75.7       78.7       -3.8 %
Basic minerals
    52.2       41.3       26.4 %
Pet products
    40.0       42.2       -5.2 %
Other product lines
    7.8       7.2       8.3 %
Total
    377.3       356.4       5.9 %

   
Nine Months Ended September 30,
 
Environmental Product Line Sales
 
2012
   
2011
   
% change
 
   
(Dollars in Millions)
 
                   
Lining technologies
  $ 71.9     $ 84.5       -14.9 %
Building materials
    58.2       60.6       -4.0 %
Drilling products
    29.0       23.3       24.5 %
Contracting services
    13.7       29.2       -53.1 %
Total
    172.8       197.6       -12.6 %
 
 
 
For further information, contact:                                                      
Don Pearson
Senior Vice President & Chief Financial Officer
847.851.1500
 


EX-99.2 3 exh99_2.htm EXHIBIT 99.2 exh99_2.htm
 


 
Exhibit 99.2
 
 

 
 
AMCOL International Corporation (NYSE: ACO) Reports Imminent Filing of Second Quarter Form 10-Q
 
HOFFMAN ESTATES, IL--(Marketwire - October 25, 2012) - On July 27, 2012, AMCOL International Corporation (NYSE: ACO) announced its second quarter earnings and, subsequently on August 10, 2012, announced the delayed filing of its Form 10-Q for the second quarter. The delay was required due to our determination, at the time, that we may need to reduce the value of inventory recorded in our Environmental segment's Spanish operations. We are pleased to announce that we have completed our investigation into these and other matters and that we expect to file our second quarter Form 10-Q on October 30, 2012.
 
We evaluated the inventory errors in conjunction with other prior year errors that were previously known and had been determined to be immaterial. We concluded that all of these errors were individually and collectively immaterial to our previously issued financial statements. However, we concluded that there is a reasonable possibility that our financial statements for the twelve months ending December 31, 2012 will be materially misstated if we correct these prior year errors in the current year. Under current SEC regulations, correcting prior year financial statements for immaterial errors does not require our previously filed reports to be amended; rather, the SEC allows these corrections to be made when we incorporate our prior year financial statements in our 2012 Form 10-K.
 
On a combined basis, these errors have the effect of reducing earnings per share available to AMCOL shareholders prior to 2009, in 2009, and in 2010 by $0.02, $0.05, and $0.04, respectively, and increasing it by $0.01 and $0.01 in 2011 and the three months ended March 31, 2012, respectively. In addition for the three months ended June 30, 2012, our diluted earnings per share is now $0.67 compared to the $0.65 reported in our July 27, 2012 press release.
 
AMCOL International, headquartered in Hoffman Estates, IL, develops and markets a wide range of mineral and technology based products and services for use in various industrial, environmental and consumer applications. AMCOL is the parent company of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, 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.
 
For further information, contact:
Don Pearson
Senior Vice President & Chief Financial Officer
847.851.1500
 


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