EX-99.1 2 v129131_ex99-1.htm

For further information, contact: Don Pearson
  Vice President & CFO 
  847.394.8730

AMCOL INTERNATIONAL CORPORATION (NYSE:ACO)
REPORTS THIRD QUARTER EARNINGS

ARLINGTON HEIGHTS, IL., OCTOBER 17, 2008—AMCOL International Corporation (NYSE:ACO) today reported 2008 third-quarter income from continuing operations of $18.6 million or $0.60 per diluted share, compared with $20.1 million or $0.65 per diluted share in the same prior-year period. Operating profit in the 2007 quarter benefited from a $2.4 million gain on the sales of vacant land in the U.S., or $.06 per diluted share. Hurricanes in the Gulf of Mexico negatively impacted 2008 third quarter earnings by an estimated $.03 per diluted share.

Net sales from continuing operations rose 24.3% to $253.0 million for the quarter ended September 30, 2008, compared with $203.6 million for the 2007 period. Acquisitions and favorable foreign currency translation represented approximately $9.1 million and $3.2 million, respectively, of the third-quarter sales growth. Operating profit increased by 5.2% over the 2007 period to $27.4 million. Acquisitions and foreign currency translation each contributed $0.7 million to current-period operating profit.

For the nine-month period ended September 30, 2008, income from continuing operations was $45.1 million, or $1.45 per diluted share, compared with $46.2 million, or $1.49 per diluted share in the prior-year period. Net income for the nine-month period ended September 30, 2008, was $45.1 million, or $1.45 per diluted share compared with $46.0 million, or $1.48 per diluted share in the prior-year period, which includes a $.01 charge for discontinued operations.

Net sales from continuing operations for the nine-month period ended September 30, 2008, rose 23.4 % to $678.3 million, compared with $549.8 million for the 2007 period. Acquisitions and favorable foreign currency translation represented approximately $23.6 million and $12.8 million, respectively, of the sales growth. Operating profit improved by 6.2% over the 2007 period to $63.5 million. Current-year operating profit includes earnings from acquisitions and favorable foreign currency translation of $2.1 million and $2.0 million, respectively.

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AMCOL Q3 2008 EARNINGS
Page 2 of 12

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 later in this press release.


“We are pleased to report another quarter of solid sales growth across the company,” says Larry Washow, AMCOL President and Chief Executive Officer. “However we did see significant margin erosion in the Oilfield Services segment where hurricanes and product mix combined to reduce our margins.”

“Environmental segment gross margins were down slightly as well due to product mix but operating margins reflected the strong seasonal results,” Washow added.

“Minerals segment gross margins still require improvement but increased compared to the second quarter 2008 results and we did report an increase in operating margins this quarter as well. We expect continuing improvement in this segment,” Washow stated.

“Corporate and overhead expenses were up but at a lower rate than previous quarters. The majority of the increase is related to IT costs and increased benefits expenses,” Washow concluded.

STATEMENT OF OPERATIONS HIGHLIGHTS:

Net sales: The following details the consolidated sales growth components for each operating segment over the 2007 third quarter:
 
Minerals: Approximately one-third of the revenue increase in the Minerals segment is due to price increases, principally in the U.S., and to a lesser extent in Asia-Pacific. Base business growth was driven by increased volume from our South African chrome operations, increased demand for Asia-Pacific metalcasting and specialty products and increased sales of products used in the U.S. petroleum industry.
 
Environmental: Increased demand for lining technology product lines in the U.S. and Asian markets and installation services in Poland were the largest contributors to base business growth in the quarter.

Oilfield Services: Base business growth was driven by both the expansion of domestic land-based well testing services and increased demand for nitrogen services in pipeline applications. The hurricanes in the Gulf of Mexico impacted the demand and product mix resulting in a higher percentage of land based services in the quarter. Sales from acquisitions were from Premium Reeled Tubing (“PRT”).

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AMCOL Q3 2008 EARNINGS
Page 3 of 12

Transportation: Traffic levels increased over the prior-year quarter due to higher demand from consumer products shippers.

Gross profit: Sales growth provided the increase in gross profit; however, gross margin was 25.1%, a 160 basis point decline from the 2007 quarter, principally due to a decline in the Oilfield Services segment gross margins.

Minerals: Gross margin of 17.7% declined 130 basis points compared to the prior-year quarter is primarily attributed to rising energy and raw material costs in addition to lower margins at new business initiatives in China and South Africa, offset by pricing initiatives. Gross margins improved 60 basis points over the 2008 second quarter.

Environmental: Gross margin of 33.0% was comparable to the prior-year quarter. 

Oilfield Services: Gross margin of 32.8% declined 500 basis points compared to the prior-year quarter. Product mix in the U.S., and the effect of two hurricanes in September in the Gulf of Mexico negatively impacted gross margins and were partially offset by improved gross margins in overseas markets. Gross margins declined from the second quarter 2008 by 900 basis points due to the impact of the hurricanes as previously described.

Transportation: Gross margin of 10.5% was comparable to the prior-year quarter.

General, selling and administrative expenses (GS&A): GS&A expenses increased $7.9 million, a 28.0% increase over the 2007 third quarter. The 2007 third quarter includes the benefit of a $2.4 million gain on the sale of vacant land. Excluding this benefit, GS&A would have increased by $5.5 million, or 18.0%.

Environmental: GS&A increased $3.2 million, a 31% increase over the 2007 quarter. The 2007 third quarter includes the benefit of a $2.4 million gain on the sale of vacant land, as described earlier. Excluding this benefit, GS&A would have increased by $.8 million, or 6.5%.

Oilfield Services: GS&A increased $1.9 million over the prior-year quarter due to the PRT acquisition in the second quarter and increases in employee costs.

Corporate: GS&A increased $1.2 million due to increasing benefit costs and IT expenses resulting from infrastructure investments.

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AMCOL Q3 2008 EARNINGS
Page 4 of 12

Operating profit: Operating profit increased $1.4 million, a 5.2% increase. Excluding the 2007 third quarter gain on the sale of vacant land, previously mentioned in the release, operating profit would have increased $3.8 million, or 15.9%.

Interest expense: Net interest expense increased by approximately $1.0 million over the prior-year quarter due to higher average debt levels.

Other, net: Other, net increased $.9 million, principally due to foreign currency transactions, impacted by the substantial strengthening of the U.S. dollar in the current period.

Income taxes: The effective tax rate for the third quarter of 2008 was 25.1% compared to 20.7% for the same period in 2007. Favorable adjustments to contingency reserves reduced the effective tax rate in both the 2008 and 2007 quarters. These adjustments benefited quarterly income by approximately $1.0 million each year. Excluding these adjustments, the effective tax rate would have been 30.1% and 24.9% in the 2008 and 2007 third quarter, respectively, which reflects a greater percentage of income generated in our U.S. based businesses.

Income from joint ventures: Income from our joint ventures, primarily our India-based investments, remained relatively consistent versus the prior period.

Share count: Weighted average common and common equivalent shares outstanding were 31.1 million and 30.9 million for the quarters ended September 30, 2008 and 2007, respectively.


FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:

Long-term debt increased to $287.6 million at September 30, 2008 compared to $164.2 million at December 31, 2007.  The increase was primarily due to funding acquisitions, increased working capital levels and capital expenditures. Total long-term debt represented 42.9% of capitalization at September 30, 2008, compared with 31.8% at December 31, 2007.  Cash and cash equivalents were $33.6 million at September 30, 2008 compared with $25.3 million at December 31, 2007.

Working capital increased to $280.1 million at September 30, 2008 from $202.5 million at December 31, 2007.  The current ratio was 3.3-to-1 and 3.0-to-1 at September 30, 2008, and December 31, 2007, respectively.

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AMCOL Q3 2008 EARNINGS
Page 5 of 12

Cash flow provided from operating activities was $2.6 million year-to-date as of September 30, 2008 compared to $42.0 million in cash generated in the prior-year period.  The increase in working capital caused the decline in operating cash flows compared with the prior-year period, principally due to an increase in accounts receivables and inventories.

Excluding the construction of the new corporate building, acquisitions were the primary investing activity in the 2008 nine month period amounting to $42.5 million, largely due to the PRT acquisition compared with $38.8 million in the prior-year period.  Capital expenditures in the 2008 period amounted to $29.7 million compared with $36.3 million in the prior-year period.

Approximately $2.0 million has been expended on share repurchases thru September 30, 2008, with $6.6 million remaining under the previously announced share repurchase program.  Eighty thousand shares were repurchased at an average price of $25.45 per share.  Dividends declared year-to-date through September 30, 2008, increased by 14.8% over the prior-year period to $15.1 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 third quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website or by dialing (877) 718-5095.

Financial tables follow.
 
 
AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
 
   
Nine Months Ended
September 30,
  
Three Months Ended
September 30,
  
 
  
2008
  
2007
  
2008
  
2007
  
                           
Net sales
  
$
678,304
  
$
549,780
  
$
253,048
  
$
203,598
  
Cost of sales
   
505,727
    
402,190
    
189,481
    
149,298
  
Gross profit
    
172,577
    
147,590
    
63,567
    
54,300
  
General, selling and administrative expenses
    
109,061
    
87,756
    
36,214
    
28,297
  
Operating profit
   
63,516
    
59,834
    
27,353
    
26,003
  
Other income (expense):
                          
Interest expense, net
   
(8,642
)
  
(6,506
)
  
(3,404
)
  
(2,409
)
Other, net
   
(1,475
)
  
(1,000
)
  
(1,763
)
  
(830
)
 
    
(10,117
)
  
(7,506
)
  
(5,167
)
  
(3,239
)
Income before income taxes and income from affiliates and joint ventures
    
53,399
    
52,328
    
22,186
    
22,764
  
Income tax expense
    
13,950
    
12,205
    
5,567
    
4,704
  
Income before income from affiliates and joint ventures
    
39,449
    
40,123
    
16,619
    
18,060
  
 
                          
Income from affiliates and joint ventures
    
5,614
    
6,118
    
1,971
    
2,086
  
 
                          
Income from continuing operations
    
45,063
    
46,241
    
18,590
    
20,146
  
 
                          
(Loss) Income from discontinued operations
    
-
    
(286
)
  
-
    
-
  
Net income
 
$
45,063
  
$
45,955
  
$
18,590
  
$
20,146
  
 
                          
Weighted average common shares outstanding
    
30,405
    
30,146
    
30,540
    
30,130
  
 
                          
Weighted average common and common equivalent shares outstanding
    
30,993
    
30,934
    
31,129
    
30,887
  
 
                          
Basic earnings per share:
                          
Continuing operations
  
$
1.48
  
$
1.53
  
$
0.61
  
$
0.67
  
Discontinued operations
    
-
    
(0.01
)
  
-
    
-
  
Basic earnings per share
  
$
1.48
  
$
1.52
  
$
0.61
  
$
0.67
  
 
                          
Diluted earnings per share:
                          
Continuing operations
  
$
1.45
  
$
1.49
  
$
0.60
  
$
0.65
  
Discontinued operations
    
-
    
(0.01
)
  
-
    
-
  
Diluted earnings per share
  
$
1.45
  
$
1.48
  
$
0.60
  
$
0.65
  
 
                          
Dividends declared per share
 
$
0.50
  
$
0.44
  
$
0.18
  
$
0.16
  
 

AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

   
September 30, 
2008
 (unaudited)
  
December 31,
 2007
 *
  
ASSETS
              
Current assets:
             
Cash and equivalents
  
$
33,646
  
$
25,282
  
Accounts receivable, net
    
224,854
    
166,835
  
Inventories
   
116,898
    
91,367
  
Prepaid expenses
    
15,088
    
13,529
  
Deferred income taxes
    
5,589
    
4,374
  
Income tax receivable
    
-
    
2,768
  
Other
    
7,345
    
475
  
Total current assets
    
403,420
    
304,630
  
 
              
Investments in and advances to affiliates and joint ventures
    
63,668
    
49,309
  
Property, plant, equipment, mineral rights and reserves:
              
Land and mineral rights
   
20,807
    
21,394
  
Depreciable assets
    
406,707
    
352,100
  
 
              
 
    
427,514
    
373,494
  
Less: accumulated depreciation and depletion
    
212,436
    
196,904
  
 
    
215,078
    
176,590
  
Other assets:
              
Goodwill
    
73,700
    
59,840
  
Intangible assets, net
    
53,456
    
41,257
  
Deferred income taxes
    
4,527
    
5,513
  
Other assets
    
15,093
    
15,007
  
 
    
146,776
    
121,617
  
 
  
$
828,942
  
$
652,146
  
LIABILITIES AND STOCKHOLDERS' EQUITY
              
Current liabilities:
              
Accounts payable
 
$
55,779
  
$
44,274
  
Accrued liabilities
   
67,537
    
57,833
  
Total current liabilities
   
123,316
    
102,107
  
 
              
Long-term debt
   
266,926
    
164,232
  
Long-term debt - corporate building
    
20,692
    
-
  
Total long-term debt
    
287,618
    
164,232
  
 
              
Minority interests in subsidiaries
   
1,513
    
327
  
Pension liabilities
    
9,649
    
9,576
  
Deferred compensation
    
7,640
    
7,559
  
Other liabilities
   
17,087
    
16,022
  
 
    
35,889
    
33,484
  
Stockholders’ equity:
              
Common stock
    
320
    
320
  
Additional paid in capital
   
85,672
    
81,599
  
Retained earnings
   
288,084
    
258,164
  
Accumulated other comprehensive income
   
26,518
    
33,248
  
 
    
400,594
    
373,331
  
Less:
              
Treasury stock
    
18,475
    
21,008
  
 
    
382,119
    
352,323
  
 
  
$
828,942
  
$
652,146
  
 
* Condensed from audited financial statements.


AMCOL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)

   
Nine Months Ended
 September 30,
  
   
2008
  
2007
  
Cash flow from operating activities:
          
Net income
  
$
45,063
  
$
45,955
  
Adjustments to reconcile net income to net cash
              
provided by (used in) operating activities:
              
Depreciation, depletion, and amortization
   
24,872
    
21,688
  
Other non - cash charges
    
(2,469
)
  
(9,102
)
Changes in assets and liabilities, net of effects of acquisitions:
              
Decrease (Increase) in current assets
    
(86,237
)
  
(44,716
)
Decrease (Increase) in noncurrent assets
    
496
    
(1,620
)
Increase (decrease) in current liabilities
    
20,116
    
23,435
  
Increase (decrease) in noncurrent liabilities
    
788
    
6,382
  
Net cash provided by (used in) operating activities
    
2,629
    
42,022
  
               
Cash flow from investing activities:
              
Capital expenditures
    
(29,686
)
  
(36,319
)
Capital expenditures - corporate building
    
(14,273
)
  
(1,258
)
Acquisitions, net of cash
    
(42,549
)
  
(38,783
)
Investments in and advances to affiliates and joint ventures
    
(10,993
)
  
(7,369
)
Advances to non - affiliates
    
(6,000
)
  
-
  
Proceeds from sale of land and depreciable assets
    
772
    
6,636
  
Investments in restricted cash
    
(1,796
)
  
(856
)
Other
    
(1,169
)
  
(173
)
Net cash used in investing activities
   
(105,694
)
  
(78,122
)
Cash flow from financing activities:
              
Net change in outstanding debt
    
105,495
    
50,368
  
Net change in outstanding debt - corporate building
    
20,692
    
-
  
Proceeds from sales of treasury stock
    
1,550
    
2,574
  
Purchases of treasury stock
    
(2,062
)
  
(6,115
)
Dividends
   
(15,143
)
  
(13,194
)
Excess tax benefits from stock-based compensation
    
1,087
    
1,463
  
Net cash provided by financing activities
   
111,619
    
35,096
  
Effect of foreign currency rate changes on cash
    
(190
)
  
3,972
  
Net increase (decrease) in cash and cash equivalents
   
8,364
    
2,968
  
Cash and cash equivalents at beginning of period
    
25,282
    
17,805
  
Cash and cash equivalents at end of period
  
$
33,646
  
$
20,773
  
 
 
AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
QUARTER-TO-DATE

   
Three Months Ended September 30,
  
Minerals
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
     
  
     
  
     
  
     
  
   
  
Net sales
  
$
116,881
    
100.0
%  
$
90,906
    
100.0
%  
$
25,975
    
28.6
%
Cost of sales
    
96,206
   
82.3
%
  
73,610
   
81.0
%
  
22,596
   
30.7
%
Gross profit
    
20,675
   
17.7
%
  
17,296
   
19.0
%
  
3,379
   
19.5
%
General, selling and administrative expenses
    
9,565
   
8.2
%
  
8,161
   
9.0
%
  
1,404
   
17.2
%
Operating profit
    
11,110
   
9.5
%
  
9,135
   
10.0
%
  
1,975
   
21.6
%

   
Three Months Ended September 30,
  
Environmental
  
2008
 
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
 
  
     
  
         
  
 
  
       
  
Net sales
  
$
86,133
    
100.0
%  
$
76,121
    
100.0
%  
$
10,012
    
13.2
%
Cost of sales
    
57,731
   
67.0
%
  
50,839
   
66.8
%
  
6,892
   
13.6
%
Gross profit
    
28,402
   
33.0
%
  
25,282
   
33.2
%
  
3,120
   
12.3
%
General, selling and administrative expenses
    
13,683
   
15.9
%
  
10,444
   
13.7
%
  
3,239
   
31.0
%
Operating profit
    
14,719
   
17.1
%
  
14,838
   
19.5
%
  
(119
)
  
-0.8
%

   
Three Months Ended September 30,
  
Oilfield Services
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
     
  
 
  
         
  
     
  
   
  
Net sales
  
$
38,379
    
100.0
%  
$
27,143
    
100.0
%  
$
11,236
    
41.4
%
Cost of sales
    
25,785
   
67.2
%
  
16,896
   
62.2
%
  
8,889
   
52.6
%
Gross profit
    
12,594
   
32.8
%
  
10,247
   
37.8
%
  
2,347
   
22.9
%
General, selling and administrative expenses
    
6,400
   
16.7
%
  
4,494
   
16.6
%
  
1,906
   
42.4
%
Operating profit
    
6,194
   
16.1
%
  
5,753
   
21.2
%
  
441
   
7.7
%

   
Three Months Ended September 30,
  
Transportation
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
   
  
         
  
 
  
         
  
 
  
       
  
Net sales
  
$
17,983
    
100.0
%  
$
14,381
    
100.0
%  
$
3,602
    
25.0
%
Cost of sales
    
16,087
   
89.5
%
  
12,906
   
89.7
%
  
3,181
   
24.6
%
Gross profit
    
1,896
   
10.5
%
  
1,475
   
10.3
%
  
421
   
28.5
%
General, selling and administrative expenses
    
938
   
5.2
%
  
745
   
5.2
%
  
193
   
25.9
%
Operating profit
    
958
   
5.3
%
  
730
   
5.1
%
  
228
   
31.2
%

   
Three Months Ended September 30,
  
Corporate
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
   
  
 
      
 
  
Intersegment shipping sales
  
$
(6,328
) 
$
(4,953
) 
$
(1,375
) 
    
Intersegment shipping costs
    
(6,328
)
  
(4,953
)
$
(1,375
)
    
Gross profit
    
-
   
-
         
General, selling and administrative expenses
    
5,628
   
4,453
   
1,175
   
26.4
%
Operating loss
    
5,628
   
4,453
   
1,175
   
26.4
%
 

AMCOL INTERNATIONAL CORPORATION
SEGMENT RESULTS (unaudited)
YEAR-TO-DATE

   
Nine Months Ended September 30,
  
Minerals
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
   
  
       
  
   
  
       
  
   
  
Net sales
  
$
323,228
    
100.0
%  
$
262,432
    
100.0
% 
$
60,796
    
23.2
%
Cost of sales
    
267,532
   
82.8
%
  
212,005
   
80.8
%
  
55,527
   
26.2
%
Gross profit
    
55,696
   
17.2
%
  
50,427
   
19.2
%
  
5,269
   
10.4
%
General, selling and administrative expenses
    
28,379
   
8.8
%
  
23,721
   
9.0
%
  
4,658
   
19.6
%
Operating profit
    
27,317
   
8.4
%
  
26,706
   
10.2
%
  
611
   
2.3
%
 
   
Nine Months Ended September 30,
  
Environmental
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
   
  
       
  
   
  
       
  
   
  
Net sales
  
$
222,393
    
100.0
% 
$
189,927
    
100.0
% 
$
32,466
    
17.1
%
Cost of sales
    
147,694
   
66.4
%
  
124,523
   
65.6
%
  
23,171
   
18.6
%
Gross profit
    
74,699
   
33.6
%
  
65,404
   
34.4
%
  
9,295
   
14.2
%
General, selling and administrative expenses
    
41,754
   
18.8
%
  
34,388
   
18.1
%
  
7,366
   
21.4
%
Operating profit
    
32,945
   
14.8
%
  
31,016
   
16.3
%
  
1,929
   
6.2
%

   
Nine Months Ended September 30,
  
Oilfield Services
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
   
  
       
  
   
  
       
  
   
  
Net sales
  
$
100,177
    
100.0
% 
$
72,137
    
100.0
% 
$
28,040
    
38.9
%
Cost of sales
    
63,130
   
63.0
%
  
44,633
   
61.9
%
  
18,497
   
41.4
%
Gross profit
    
37,047
   
37.0
%
  
27,504
   
38.1
%
  
9,543
   
34.7
%
General, selling and administrative expenses
    
18,156
   
18.1
%
  
13,661
   
18.9
%
  
4,495
   
32.9
%
Operating profit
    
18,891
   
18.9
%
  
13,843
   
19.2
%
  
5,048
   
36.5
%

   
Nine Months Ended September 30,
  
Transportation
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
       
  
   
  
       
  
   
  
       
  
   
  
Net sales
  
$
49,216
    
100.0
% 
$
38,654
    
100.0
% 
$
10,562
    
27.3
%
Cost of sales
    
44,081
   
89.6
%
  
34,399
   
89.0
%
  
9,682
   
28.1
%
Gross profit
    
5,135
   
10.4
%
  
4,255
   
11.0
%
  
880
   
20.7
%
General, selling and administrative expenses
    
2,564
   
5.2
%
  
2,253
   
5.8
%
  
311
   
13.8
%
Operating profit
    
2,571
   
5.2
%
  
2,002
   
5.2
%
  
569
   
28.4
%

   
Nine Months Ended September 30,
  
Corporate
  
2008
  
2007
  
2008 vs 2007
  
 
  
(Dollars in Thousands)
  
 
  
   
  
 
      
 
  
Intersegment shipping sales
  
$
(16,710
) 
$
(13,370
) 
$
(3,340
)
    
Intersegment shipping costs
    
(16,710
)
  
(13,370
)
$
(3,340
)
    
Gross profit
    
-
   
-
         
General, selling and administrative expenses
    
18,208
   
13,733
   
4,475
   
32.6
%
Operating loss
    
18,208
   
13,733
   
4,475
   
32.6
%
 
 
AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
QUARTER-TO-DATE

 
  
Three Months Ended September 30, 2008
  
Composition of Sales by Geographic Region  
  
    Americas  
 
EMEA
  
        Asia Pacific        
  
Total    
  
Minerals
    
31.1
% 
  
8.4
% 
  
6.7
% 
  
46.2
%
Environmental
    
17.9
%
  
14.0
%
  
2.2
%
  
34.1
%
Oilfield services
    
13.3
%
  
1.0
%
  
0.8
%
  
15.1
%
Transportation
    
4.6
%
  
0.0
%
  
0.0
%
  
4.6
%
Total - current year's period
    
66.9
%
  
23.4
%
  
9.7
%
  
100.0
%
Total from prior year's comparable period
    
67.8
%
  
25.4
%
  
6.9
%
  
100.0
%

Percentage of Revenue Growth by Component
  
Three Months Ended September 30, 2008
vs.
Three Months Ended September 30, 2007
  
   
Base
Business
  
Acquisitions
  
Foreign
Exchange
  
Total
  
Minerals
    
11.8
% 
  
0.9
% 
  
0.1
% 
  
12.8
%
Environmental
    
2.5
%
  
0.8
%
  
1.6
%
  
4.9
%
Oilfield services
    
2.9
%
  
2.7
%
  
-0.1
%
  
5.5
%
Transportation
    
1.1
%
  
0.0
%
  
0.0
%
  
1.1
%
Total
   
18.3
%
  
4.4
%
  
1.6
%
  
24.3
%
% of growth
    
75.2
%
  
18.4
%
  
6.4
%
  
100.0
%

   
Three Months Ended September 30,
  
Minerals Product Line Sales
  
  2008
  
2007
  
% change
  
 
  
(Dollars in Thousands)     
 
  
       
  
       
  
   
  
Metalcasting
  
$
46,392
  
$
40,232
    
15.3
%
Specialty materials
    
26,587
   
22,893
   
16.1
%
Pet products
    
19,559
   
15,826
   
23.6
%
Basic minerals
    
21,917
   
11,140
   
96.7
%
Other product lines
    
2,426
   
815
   
*
 
Total
    
116,881
   
90,906
   
 
  
* Not meaningful.             

   
Three Months Ended September 30,
  
Environmental Product Line Sales
  
  2008
  
2007
  
% change
  
 
  
(Dollars in Thousands)
  
 
  
       
  
       
  
   
  
Lining technologies
  
$
57,320
  
$
48,914
    
17.2
%
Building materials
    
22,237
   
20,638
   
7.7
%
Other product lines
    
6,576
   
6,569
   
*
 
Total
    
86,133
   
76,121
     

* Not meaningful.              


AMCOL INTERNATIONAL CORPORATION
SUPPLEMENTARY INFORMATION (unaudited)
YEAR-TO-DATE

   
Nine Months Ended September 30, 2008
  
Composition of Sales by Geographic Region
  
    Americas
  
EMEA
  
Asia Pacific
  
Total
  
Minerals
    
33.2
% 
  
7.6
% 
  
6.9
% 
  
47.7
%
Environmental
    
16.8
%
  
13.9
%
  
2.1
%
  
32.8
%
Oilfield services
    
12.5
%
  
1.6
%
  
0.6
%
  
14.7
%
Transportation
    
4.8
%
  
0.0
%
  
0.0
%
  
4.8
%
Total - current year's period
    
67.3
%
  
23.1
%
  
9.6
%
  
100.0
%
Total from prior year's comparable period
    
68.8
%
  
23.7
%
  
7.5
%
  
100.0
%

   
Nine Months Ended September 30, 2008
vs.
Nine Months Ended September 30, 2007
  
Percentage of Revenue Growth by Component
  
    Base Business
  
Acquisitions
  
Foreign Exchange  
  
Total
  
Minerals
    
8.8
%
  
1.8
%
  
0.5
%
  
11.1
%
Environmental
    
3.2
%
  
0.9
%
  
1.8
%
  
5.9
%
Oilfield services
    
3.5
%
  
1.6
%
  
0.0
%
  
5.1
%
Transportation
    
1.3
%
  
0.0
%
  
0.0
%
  
1.3
%
Total
   
16.8
%
  
4.3
%
  
2.3
%
  
23.4
%
% of growth
    
71.6
%
  
18.4
%
  
10.0
%
  
100.0
%

   
Nine Months Ended September 30,
  
Minerals Product Line Sales
  
  2008
  
2007      
  
% change  
  
 
  
(Dollars in Thousands)
  
 
  
       
  
       
  
   
  
Metalcasting
  
$
134,118
  
$
114,101
    
17.5
%
Specialty materials
    
77,239
   
62,992
   
22.6
%
Pet products
    
58,261
   
47,907
   
21.6
%
Basic minerals
    
47,275
   
33,703
   
40.3
%
Other product lines
    
6,335
   
3,729
   
*
 
Total
    
323,228
   
262,432
     
 
* Not meaningful.             
 
   
Nine Months Ended September 30,
  
Environmental Product Line Sales
  
  2008
  
2007
  
% change
  
 
  
(Dollars in Thousands)     
 
  
       
  
       
  
   
  
Lining technologies
  
$
138,267
  
$
112,659
    
22.7
%
Building materials
    
65,090
   
60,083
   
8.3
%
Other product lines
    
19,036
   
17,185
   
*
 
Total
    
222,393
   
189,927
     

* Not meaningful.