-----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, Sam7vl57GleubbOt/dBxsFgtdSbL7X66RxAqP0tZtdfV+R0jFgu+9XGYu09SiWnO Gykpr8DgQNoiPEyU/jxn+g== 0001144204-07-037513.txt : 20070720 0001144204-07-037513.hdr.sgml : 20070720 20070720130427 ACCESSION NUMBER: 0001144204-07-037513 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070720 DATE AS OF CHANGE: 20070720 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: 07990943 BUSINESS ADDRESS: STREET 1: 1500 W SHURE DR CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60004-7803 BUSINESS PHONE: 8473948730 MAIL ADDRESS: STREET 1: 1500 W SHURE DR CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60004-7803 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN COLLOID CO DATE OF NAME CHANGE: 19920703 8-K 1 v081458_8k.txt 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): July 20, 2007 --------------- AMCOL INTERNATIONAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-15661 36-0724340 State of Other Commission File Number I.R.S. Employer Jurisdiction of Identification Number Incorporation One North Arlington, 1500 West Shure Drive, Suite 500 Arlington Heights, IL 60004-7803 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (847) 394-8730 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 July 20, 2007, the registrant issued a press release to report results for its second quarter ended June 30, 2007. That press release, July 20, 2007 and titled "AMCOL International (NYSE:ACO) Reports 26% Increase In Diluted Earnings Per Share From Continuing Operations Over Prior-Year Second Quarter" is attached hereto as Exhibit 99.1. 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 26% Increase In Diluted Earnings Per Share From Continuing Operations Over Prior-Year Second Quarter" 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. AMCOL INTERNATIONAL CORPORATION Date: July 20, 2007 By: /s/ Lawrence E. Washow ------------------------ Lawrence E. Washow President and Chief Executive Officer EX-99.1 2 v081458_ex99-1.txt For further information, contact: Gary L. Castagna Senior Vice President & CFO 847.394.8730 AMCOL INTERNATIONAL (NYSE:ACO) REPORTS 26% INCREASE IN DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OVER PRIOR-YEAR SECOND QUARTER ARLINGTON HEIGHTS, IL., JULY 20, 2007-AMCOL International Corporation (NYSE:ACO) today reported 2007 second-quarter income from continuing operations of $15.3 million or $0.49 per diluted share, compared with $11.9 million or $0.39 per diluted share in the same prior-year period. A $0.3 million loss from discontinued operations, or $0.01 per diluted share, was reported in the second quarter of 2007 for the sale of a desiccant business based in the U.K. Net income was $15.0 million, or $0.48 per diluted share in the second quarter of 2007. Net sales from continuing operations rose 19.4 percent to $182.5 million for the quarter ended June 30, 2007, compared with $152.7 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $15.6 million and $4.1 million, respectively, of the second-quarter sales growth. Operating profit improved by 29.1 percent over the 2006 period to $19.1 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $3.5 million and $0.5 million, respectively. "We saw solid earnings and sales growth overall in the second quarter," says Larry Washow, AMCOL president and chief executive officer. "The strength of our acquisitions began to show as they started delivering the value we expected in both the Environmental and Oilfield Services businesses." "Additionally, our Environmental business did very well on its own, with organic business in that division continuing to expand. Oilfield Services demonstrated a rebound after a softer first quarter, with good sales and profit growth. MORE AMCOL Q2 2007 EARNINGS Page 2 of 10 "One area in which we're focusing attention is Minerals, where gross profits were up but gross margins were down this quarter. We attribute that to a combination of product mix and cost issues that we're working on. However, AMCOL earnings were up more than sales and it was a good quarter for us." For the six-month period ended June 30, 2007, income from continuing operations was $26.1 million, or $0.84 per diluted share, compared with $21.6 million, or $0.70 per diluted share in the prior-year period. Net income for the six-month period ended June 30, 2007, was $25.8 million, or $0.83 per diluted share compared with $21.6 million; or $0.70 per diluted share in the prior-year period. Net sales from continuing operations for the six-month period ended June 30, 2007, rose 17.0 percent to $346.2 million, compared with $295.5 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $27.9 million and $8.6 million, respectively, of the sales growth. Operating profit improved by 25.9 percent over the 2006 period to $33.8 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $5.5 million and $1.1 million, respectively. This release should be read in conjunction with the attached unaudited condensed consolidated financial statements. Further discussion of items and events impacting earnings are included in the Financial Overview. FINANCIAL OVERVIEW Second Quarter Statement of Operations Highlights Net sales: The following table details the consolidated sales growth components over the 2006 second quarter: Base Foreign Business Acquisitions Exchange Total Minerals (0.1)% 4.0% 1.1% 5.0% Environmental 4.5% 2.1% 1.5% 8.1% Oilfield Services 1.6% 4.1% 0.1% 5.8% Transportation 0.5% - - 0.5% Total 6.5% 10.2% 2.7% 19.4% % of Growth 33.7% 52.6% 13.7% 100% MORE AMCOL Q2 2007 EARNINGS Page 3 of 10 Minerals - Base business sales declined over the 2006 quarter entirely due to lower shipments to domestic metalcasting markets. Asia-Pacific metalcasting operations continued to grow. The specialty minerals and pet product lines realized higher base business sales. Acquisitions continued to meet expectations, while stronger European and Asian currencies led to the growth from foreign exchange. Environmental - Base business sales grew primarily due to higher shipments of lining technology and building material products in the U.S and Europe. Contracting service revenues also contributed to the growth over the 2006 quarter. The Liquid Boot acquisition completed in January of this year posted sales in-line with expectations. Stronger European currencies accounted for foreign exchange growth. Oilfield Services - Base business growth was led by higher well testing and pipeline service revenues primarily generated in Texas and the Gulf of Mexico. International business, principally in the North Sea and West Africa, was relatively unchanged compared with the prior-year quarter. The two businesses acquired in the second half of 2006, Unique Rentals and Nitrogen Specialties, have both met revenue expectations. Gross profit: Sales growth, principally generated by the Environmental and Oilfield Services segments, boosted gross profit by 25.4 percent over the 2006 quarter. Gross margin for the quarter rose to 27.3 percent compared with 26.0 percent in the prior-year quarter. The Minerals segment suffered a 90 basis point decline in gross margin compared with the 2006 quarter. Higher manufacturing costs in the U.S. and Asia-Pacific operations caused the gross margin decline. The Environmental segment improved gross margin over the 2006 period due to favorable product mix and higher relative sales in the European markets. Additionally, the acquired business contributed higher gross margins. The Oilfield Services segment benefited from higher relative profitability contributed by acquired businesses. Additionally, margins improved in the base business operations due to more favorable product/service mix. General, selling and administrative expenses: The $5.8 million, or 23.3 percent, increase over the 2006 second quarter was primarily attributed to general, selling and administration, (GS&A) for acquired businesses. In aggregate, acquired businesses, including amortization of intangible assets, accounted for approximately $3.0 million of the increase in the 2007 second quarter. Within the Minerals segment, acquired business expenses were approximately $0.6 million of the increase over the prior-year quarter. Base business GS&A grew in the Asia Pacific region due to marketing and start-up costs at the Tianjin, China and Queensland, Australia operations. MORE AMCOL Q2 2007 EARNINGS Page 4 of 10 Acquired businesses accounted for approximately $1.0 million of the increase over the prior-year quarter within the Environmental segment. Base business GS&A increased primarily due to higher marketing and sales expenses at the European operations. The Oilfield Services segment incurred approximately $1.4 million of GS&A from acquired businesses. Base business expenses increased due to higher personnel costs. Corporate segment GS&A increased due to higher personnel and professional service expenses. Operating profit: The 29.1 percent improvement in operating profit over the 2006 second quarter was in-line with sales and gross profit growth. Operating margin for the quarter was 10.5 percent compared with 9.7 percent in the prior-year period. The improvement was principally due to the higher gross margin reported in the current period. Interest expense: Net interest expense increased by approximately $1.5 million over the prior-year quarter due to higher average debt levels and increased interest rates. Income taxes: The effective tax rate was 24.7 percent for the second quarter of 2007 compared with 26.6 percent for the same period in 2006. The decline in the tax rate reflects updated estimates of taxable income distribution between domestic and overseas businesses. Income from affiliates and joint ventures: These investments contributed approximately $0.08 and $0.04 per diluted share in the 2007 and 2006 reporting periods, respectively. Our investments in Ashapura Minechem Limited and Ashapura Volclay Limited, both based in India, have continued to increase their respective contributions to earnings. Ashapura Minechem has been growing principally due to its bauxite business, a large portion of which is exported to alumina refineries in China. Alumina is a key raw material used in the production of aluminum. Share count: The weighted average number of common and common equivalent shares remained unchanged at 30.9 million for the quarter ended June 30, 2007 compared with the same period in 2006. Key Financial Position points Long-term debt increased to $168.2 million at June 30, 2007 compared with $112.4 million at December 31, 2006. The increase was primarily due to funding acquisitions, greater working capital levels and capital expenditures. Debt represented approximately 35 percent of total capitalization at June 30, 2007, compared with 28 percent at December 31, 2006. Cash and cash equivalents were $25.2 million at June 30, 2007 compared with $17.8 million at December 31, 2006. MORE AMCOL Q2 2007 EARNINGS Page 5 of 10 Working capital increased to $201.2 million at June 30, 2007 from $173.3 million at December 31, 2006. The current ratio was 3.3-to-1 and 3.2-to-1 at June 30, 2007, and December 31, 2006, respectively. Cash flow provided by operating activities was $25.6 million year-to-date as of June 30, 2007 compared with $5.7 million in the six-month period in 2006. In addition to the growth in net income, the 2007 period was aided by higher non-cash charges and lower relative growth in working capital. Investing activities in the 2007 six-month period were primarily driven by three acquisitions which, in aggregate, accounted for $38.4 million. Capital expenditures amounted to $21.9 million year-to-date as of June 30, 2007, compared with $20.5 million for the same period in 2006. Approximately $6.1 million was expended on share repurchases in 2007 year-to-date. A total of 250,000 shares were repurchased, which equates to approximately $24.34 per share. Dividends declared year-to-date through June 30, 2007, increased by 22% over the prior-year period to $8.4 million. 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 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 Arlington Heights, IL, 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 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 second quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website. Financial tables follow. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)
Six Months Ended Three Months Ended June 30, June 30, 2007 2006 2007 2006 Continuing Operations: Net sales $ 346,182 $ 295,465 $ 182,454 $ 152,701 Cost of sales 252,892 220,041 132,663 113,006 Gross profit 93,290 75,424 49,791 39,695 General, selling and administrative expenses 59,459 48,549 30,654 24,867 Operating profit 33,831 26,875 19,137 14,828 Other income (expense): Interest expense, net (4,097) (1,095) (2,155) (618) Other, net (170) 532 (3) 320 (4,267) (563) (2,158) (298) Income before income taxes and income from affiliates and joint ventures 29,564 26,312 16,979 14,530 Income tax expense (benefit) 7,501 7,268 4,190 3,860 Income before income from affiliates and joint ventures 22,063 19,044 12,789 10,670 Income from affiliates and joint ventures 4,032 2,586 2,466 1,249 Income from continuing operations 26,095 21,630 15,255 11,919 (Loss) Income from discontinued operations (286) -- (286) -- (286) -- (286) -- Net income $ 25,809 $ 21,630 $ 14,969 $ 11,919 Weighted average common shares outstanding 30,154 29,880 30,155 29,971 Weighted average common and common equivalent shares outstanding 30,951 31,011 30,879 30,937 Basic earnings per share: Continuing operations $ 0.87 $ 0.72 $ 0.51 $ 0.40 Discontinued operations (0.01) -- (0.01) -- Basic earnings per share $ 0.86 $ 0.72 $ 0.50 $ 0.40 Diluted earnings per share: Continuing operations $ 0.84 $ 0.70 $ 0.49 $ 0.39 Discontinued operations (0.01) -- (0.01) -- Diluted earnings per share $ 0.83 $ 0.70 $ 0.48 $ 0.39 Dividends declared per share $ 0.28 $ 0.23 $ 0.14 $ 0.12
AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS June 30, December 31, 2007 2006 (unaudited) * Current assets: Cash and equivalents $ 25,172 $ 17,805 Accounts receivable, net 152,909 133,432 Inventories 90,541 84,612 Prepaid expenses 12,648 10,142 Deferred income taxes 4,793 4,648 Other 2,006 1,045 Total current assets 288,069 251,684 Investments in and advances to affiliates and joint ventures 39,416 31,049 Property, plant, equipment, mineral rights and reserves: Land and mineral rights 17,170 17,428 Depreciable assets 323,650 305,013 340,820 322,441 Less: accumulated depreciation 185,521 181,669 155,299 140,772 Other assets: Goodwill 51,993 40,341 Intangible assets, net 43,181 25,611 Deferred income taxes 8,748 6,643 Other assets 17,969 15,124 121,891 87,719 $ 604,675 $ 511,224 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 40,514 $ 26,107 Accrued income taxes 1,896 4,844 Accrued liabilities 44,496 47,432 Total current liabilities 86,906 78,383 Long-term debt 168,237 112,448 Minority interests in subsidiaries 276 276 Pension liabilities 13,056 13,209 Other liabilities 21,486 12,090 34,818 25,575 Stockholders' equity: Common stock 320 320 Additional paid in capital 78,521 76,686 Retained earnings 236,853 219,690 Accumulated other comprehensive income 21,365 16,658 337,059 313,354 Less: Treasury stock 22,345 18,536 314,714 294,818 $ 604,675 $ 511,224 * Condensed from audited financial statements. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Six Months Ended June 30, 2007 2006 Cash flow from operating activities: Net income $ 25,809 $ 21,630 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, depletion, and amortization 13,805 10,089 Changes in assets and liabilities, net of effects of acquisitions: Decrease (Increase) in current assets (22,625) (22,563) Decrease (Increase) in noncurrent assets (1,582) (1,895) Increase (decrease) in current liabilities 7,289 (1,663) Increase (decrease) in noncurrent liabilities 7,783 1,024 Other (4,893) (917) Net cash provided by (used in) operating activities 25,586 5,705 Cash flow from investing activities: Acquisition of land, mineral rights, and depreciable assets (21,906) (20,525) Acquisitions, net of cash (38,393) (1,270) Investments in and advances to affiliates and joint ventures (4,191) (877) Investments in restricted cash (816) -- Other 2,425 1,096 Net cash provided by (used in) investing activities (62,881) (21,576) Cash flow from financing activities: Net change in outstanding debt 55,564 15,168 Proceeds from sales of treasury stock 1,283 2,380 Purchases of treasury stock (6,115) (3,290) Dividends (8,393) (6,893) Excess tax benefits from stock-based compensation 927 1,931 Net cash provided by (used in) financing activities 43,266 9,296 Effect of foreign currency rate changes on ca 1,396 4,321 Net increase (decrease) in cash and cash equivalents 7,367 (2,254) Cash and cash equivalents at beginning of period 17,805 15,997 Cash and cash equivalents at end of period $ 25,172 $ 13,743 AMCOL INTERNATIONAL CORPORATION SEGMENT RESULTS (unaudited) Minerals Three Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $85,713 100.0% $78,118 100.0% $7,595 9.7% Cost of sales 69,381 80.9% 62,470 80.0% 6,911 11.1% Gross profit 16,332 19.1% 15,648 20.0% 684 4.4% General, selling and administrative expenses 8,018 9.4% 6,948 8.9% 1,070 15.4% Operating profit 8,314 9.7% 8,700 11.1% (386) -4.4% Environmental Three Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $65,108 100.0% $52,718 100.0% $12,390 23.5% Cost of sales 42,521 65.3% 34,752 65.9% 7,769 22.4% Gross profit 22,587 34.7% 17,966 34.1% 4,621 25.7% General, selling and administrative expenses 12,652 19.4% 10,326 19.6% 2,326 22.5% Operating profit 9,935 15.3% 7,640 14.5% 2,295 30.0% Oilfield Services Three Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $23,030 100.0% $14,141 100.0% $8,889 62.9% Cost of sales 13,660 59.3% 9,572 67.7% 4,088 42.7% Gross profit 9,370 40.7% 4,569 32.3% 4,801 105.1% General, selling and administrative expenses 4,446 19.3% 2,547 18.0% 1,899 74.6% Operating profit 4,924 21.4% 2,022 14.3% 2,902 143.5% Transportation Three Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $13,380 100.0% $12,848 100.0% $532 4.1% Cost of sales 11,878 88.8% 11,336 88.2% 542 4.8% Gross profit 1,502 11.2% 1,512 11.8% (10) -0.7% General, selling and administrative expenses 770 5.8% 780 6.1% (10) -1.3% Operating profit 732 5.4% 732 5.7% - 0.0% Corporate Three Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Intersegment shipping sales $(4,777) $(5,124) Intersegment shipping costs (4,777) (5,124) Gross profit - - Corporate general, selling and administrative expenses 4,768 4,266 502 11.8% Operating loss 4,768 4,266 502 11.8% AMCOL INTERNATIONAL CORPORATION SEGMENT RESULTS (unaudited) Minerals Six Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $171,526 100.0% $158,189 100.0% $13,337 8.4% Cost of sales 138,395 80.7% 127,649 80.7% 10,746 8.4% Gross profit 33,131 19.3% 30,540 19.3% 2,591 8.5% General, selling and administrative expenses 15,560 9.1% 13,952 8.8% 1,608 11.5% Operating profit 17,571 10.2% 16,588 10.5% 983 5.9% Environmental Six Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $113,806 100.0% $92,876 100.0% $20,930 22.5 Cost of sales 73,684 64.7% 60,631 65.3% 13,053 21.5% Gross profit 40,122 35.3% 32,245 34.7% 7,877 24.4% General, selling and administrative expenses 23,944 21.0% 19,819 21.3% 4,125 20.8% Operating profit 16,178 14.3% 12,426 13.4% 3,752 30.2% Oilfield Services Six Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $44,994 100.0% $29,113 100.0% $15,881 54.5% Cost of sales 27,737 61.6% 19,468 66.9% 8,269 42.5% Gross profit 17,257 38.4% 9,645 33.1% 7,612 78.9% General, selling and administrative expenses 9,167 20.4% 4,678 16.1% 4,489 96.0% Operating profit 8,090 18.0% 4,967 17.0% 3,123 62.9% Transportation Six Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Net sales $24,273 100.0% $25,319 100.0% $(1,046) -4.1% Cost of sales 21,493 88.5% 22,325 88.2% (832) -3.7% Gross profit 2,780 11.5% 2,994 11.8% (214) -7.1% General, selling and administrative expenses 1,508 6.2% 1,579 6.2% (71) -4.5% Operating profit 1,272 5.3% 1,415 5.6% (143) -10.1% Corporate Six Months Ended June 30, 2007 2006 2007 vs 2006 (Dollars in Thousands) Intersegment shipping sales $(8,417) $(10,032) Intersegment shipping costs (8,417) (10,032) Gross profit - - Corporate general, selling and administrative expenses 9,280 8,521 759 8.9% Operating loss 9,280 8,521 759 8.9% -----END PRIVACY-ENHANCED MESSAGE-----