EX-99.1 2 ai2446ex991.txt Exhibit 99.1 AMCOL INTERNATIONAL (NYSE: ACO) REPORTS 44 PERCENT INCREASE IN FIRST QUARTER DILUTED EARNINGS PER SHARE OVER 2004 FIRST QUARTER ARLINGTON HEIGHTS, Ill., April 19 /PRNewswire-FirstCall/ -- AMCOL International Corp. (NYSE: ACO) today reported 2005 first quarter net income of $7.0 million or $0.23 per diluted share, compared with $5.1 million or $.16 per diluted share in the same prior-year period. Net sales rose 17 percent to $122.1 million for the period ended March 31, 2005, compared to $104.2 million for the period in 2004. This release should be read in conjunction with the attached unaudited condensed consolidated financial statements. Larry Washow, AMCOL president and chief executive officer said, "The first quarter of 2005 has been challenging, but one in which we delivered strong earnings growth. AMCOL is pleased by our environmental segment's improved margins this quarter. We have seen improvement in several of the markets that were difficult last year. Also a contributor to this segment's operating margin improvement was our oilfield services group, which is now performing closer to our original expectations." Washow noted, "In our minerals segment, net sales increased, but we did not see a similar operating profit increase. We are in the midst of adjusting selling prices to reflect the continuing cost escalation of raw materials, energy and transportation. The highlight of the minerals group was our Asia Pacific operations, which reported not only strong sales, but good operating margins as well." "Another positive during the quarter was the contribution from our overseas joint ventures. These investments, particularly in India and Japan, contributed $0.02 per share to earnings this quarter, up from less than $0.01 in 2004. Earnings were also positively impacted by $0.03 per share due to a lower effective tax rate," Washow commented. Washow continued, "During the first quarter, we have felt significant pressures on our selling, general and administrative costs arising from the impact of Sarbanes-Oxley, increased compensation and benefits, and mineral development expenditures. We will continue to evaluate our selling, general and administrative expenses, aligning them with our expectations for revenue growth." FINANCIAL OVERVIEW Long-term debt amounted to $42.1 million at March 31, 2005 compared to $34.3 million at December 31, 2004. Debt represented 16 percent of total capitalization at March 31, 2005, compared to 13 percent at December 31, 2004. Cash and cash equivalents were $19.5 million at March 31, 2005 compared with $17.6 million at the end of 2004. General, selling and administrative expenses were $21.4 million in the 2005 first quarter, an increase of $2.0 million or 10 percent over the 2004 period. The Company's effective tax rate was 19.1 percent for the first quarter of 2005 versus 31.5 percent for the same period in 2004. The change in the rate favorably impacted earnings by $0.03 per share, and largely resulted from changes in estimates of taxes owed. Had these changes in estimates not been made, the effective tax rate would have been 26.5 percent for the first quarter of 2005. The weighted average number of common and common equivalent shares of 30.8 million decreased by approximately 217 thousand shares, or approximately 1 percent, from March 31, 2004. During the first quarter of 2005, the Company paid approximately $1.6 million to former owners of acquired businesses. The payments were owed because the operating performance of the businesses met profit targets included in earn-out provisions included in the purchase agreements. During the first quarter of 2005, the Company did not repurchase any of its common stock. $10 million remains available in the stock repurchase program approved by the Board of Directors in May 2004. AMCOL's financial condition at March 31, 2005 included working capital of approximately $139.7 million and a current ratio of 3.3-to-1 compared to approximately $129.4 million and a ratio of 3.1-to-1 at December 31, 2004. Minerals The minerals segment, which accounted for approximately 60 percent of AMCOL's consolidated net sales for the first quarter of 2005, reported a sales increase of 14 percent and an operating profit increase of 5 percent over the prior-year period. Environmental AMCOL's environmental segment, which accounted for 35 percent of the Company's consolidated net sales for the first quarter of 2005, reported a 26 percent increase in sales and a 67 percent increase in operating profit in year-over-year comparisons for the first quarter. Transportation AMCOL's transportation segment, which accounted for 9 percent of the Company's consolidated net sales, including inter-segment shipping revenue, reported an 18 percent increase in sales and a 48 percent increase in operating profit for the 2005 first quarter. 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, headquartered in Arlington Heights, Ill., produces and markets a wide range of specialty mineral products used for industrial, environmental and consumer-related applications. AMCOL is the parent of American Colloid Co., CETCO (Colloid Environmental Technologies Co.), Volclay International, Nanocor and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, Inc. AMCOL's common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL's web address is http://www.amcol.com. AMCOL's first quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except share data) Three Months Ended March 31, ---------------------------- 2005 2004 ------------ ------------ Net sales (1) $ 122,050 $ 104,154 Cost of sales 92,370 77,431 Gross profit (1) 29,680 26,723 General, selling and administrative expenses (1) 21,445 19,483 Operating profit 8,235 7,240 Other income (expense): Interest expense, net (361) (79) Other, net (105) 43 (466) (36) Income before income taxes and equity in income of joint ventures 7,769 7,204 Income tax expense 1,484 2,269 Income before equity in income of joint ventures 6,285 4,935 Income from joint ventures 667 148 Net income $ 6,952 $ 5,083 Weighted average common shares outstanding 29,333,627 29,092,656 Weighted average common and common equivalent shares outstanding 30,769,482 30,986,319 Basic earnings per share $ 0.24 $ 0.17 Diluted earnings per share $ 0.23 $ 0.16 Dividends declared per share $ 0.090 $ 0.070 AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share data) March 31, December 31, 2005 2004 ------------ ------------ (unaudited) * ASSETS Current assets: Cash $ 19,501 $ 17,594 Accounts receivable, net 91,152 88,342 Inventories 68,909 63,882 Prepaid expenses 8,087 7,111 Income taxes receivable 8,394 9,126 Current deferred tax assets 4,477 4,293 Assets held for sale 543 752 Total current assets 201,063 191,100 Investment in and advances to joint ventures 15,875 15,023 Property, plant, equipment, and mineral rights and reserves: Land and mineral rights 11,833 12,019 Depreciable assets 243,482 247,280 255,315 259,299 Less: accumulated depreciation 162,975 165,658 92,340 93,641 Other assets: Goodwill 19,139 19,225 Intangible assets, net 3,517 3,802 Deferred tax assets 7,587 6,444 Other assets 9,110 7,207 39,353 36,678 $ 348,631 $ 336,442 March 31, December 31, 2005 2004 ------------ ------------ (unaudited) * LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 31,566 25,474 Accrued liabilities 29,760 36,207 Total current liabilities 61,326 61,681 Long-term debt 42,116 34,295 Minority interests in subsidiaries 125 5 Deferred compensation 6,295 5,872 Other liabilities 11,981 12,655 18,401 18,532 Stockholders' equity: Common stock 320 320 Additional paid in capital 70,791 69,763 Retained earnings 158,662 154,366 Accumulated other comprehensive income 13,521 14,905 243,294 239,354 Less: Treasury stock 16,506 17,420 226,788 221,934 $ 348,631 $ 336,442 (*) Condensed from audited financial statements. AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
Three Months Ended March 31, ---------------------------- 2005 2004 ------------ ------------ Cash flow from operating activities: Net income $ 6,952 $ 5,083 Adjustments to reconcile from net income to net cash provided by (used in) operating activities: Depreciation, depletion, and amortization 5,489 5,279 Changes in assets and liabilities, net of effects of acquisitions: Increase in current assets (7,290) (16,380) Increase in noncurrent assets (3,059) (1,408) Increase (decrease) in current liabilities (199) 2,783 Increase (decrease) in noncurrent liabilities (251) 824 Other (184) 799 Net cash provided by (used in) operating activities 1,458 (3,021) Cash flow from investing activities: Acquisition of land, mineral rights, and depreciable assets (3,525) (3,242) Acquisitions, net of cash (1,632) (13,221) Other 1,129 583 Net cash used in investing activities (4,028) (15,881) Cash flow from financing activities: Net change in outstanding debt 7,821 17,138 Proceeds from sales of treasury stock 550 504 Purchases of treasury stock - (196) Dividends paid (2,656) (2,047) Net cash provided by financing activities 5,715 15,399 Effect of foreign currency rate changes on cash (1,238) 396 Net decrease in cash and cash equivalents 1,907 (3,106) Cash and cash equivalents at beginning of period 17,594 13,525 Cash and cash equivalents at end of period $ 19,501 $ 10,419
AMCOL INTERNATIONAL CORPORATION SEGMENT RESULTS (unaudited)
Three Months Ended March 31, --------------------------------------------------------------- Minerals 2005 2004 2005 vs. 2004 ----------------------- ------------------- ------------------- ------------------- (Dollars in Thousands) Net sales (1) $ 73,448 100.0% $ 64,337 100.0% $ 9,111 14.2% Cost of sales 59,974 81.7% 51,452 80.0% Gross profit (1) 13,474 18.3% 12,885 20.0% 589 4.6% General, selling and administrative expenses (1) 5,679 7.7% 5,450 8.5% 229 4.2% Operating profit 7,795 10.6% 7,435 11.5% 360 4.8%
Three Months Ended March 31, --------------------------------------------------------------- Environmental 2005 2004 2005 vs. 2004 ----------------------- ------------------- ------------------- ------------------- (Dollars in Thousands) Net sales (1) $ 42,304 100.0% $ 33,672 100.0% $ 8,632 25.6% Cost of sales 27,444 64.9% 20,871 62.0% Gross profit (1) 14,860 35.1% 12,801 38.0% 2,059 16.1% General, selling and administrative expenses (1) 9,723 23.0% 9,722 28.9% 1 0.0% Operating profit 5,137 12.1% 3,079 9.1% 2,058 66.8%
Three Months Ended March 31, --------------------------------------------------------------- Transportation 2005 2004 2005 vs. 2004 ----------------------- ------------------- ------------------- ------------------- (Dollars in Thousands) Net sales $ 10,985 100.0% $ 9,332 100.0% $ 1,653 17.7% Cost of sales 9,639 87.7% 8,295 88.9% Gross profit 1,346 12.3% 1,037 11.1% 309 29.8% General, selling and administrative expenses 773 7.0% 651 7.0% 122 18.7% Operating profit 573 5.3% 386 4.1% 187 48.4%
Three Months Ended March 31, --------------------------------------------------------------- Corporate 2005 2004 2005 vs. 2004 ----------------------- ------------------- ------------------- ------------------- (Dollars in Thousands) Intersegment shipping sales $ (4,687) $ (3,187) Intersegment shipping costs (4,687) (3,187) Gross profit - - Corporate general, selling and administrative expenses 4,361 2,746 1,615 58.8% Nanocomposite business development expenses 909 914 (5) -0.5% Operating loss (5,270) (3,660) (1,610) 44.0%
(1) Net sales in periods prior to the quarter ended March 31, 2005 were reported net of certain deductions relating to product liability, warranty and royalty expenses. Effective for the quarter ended March 31, 2005, these deductions are included in general, selling, and administrative expenses. Thus, for the quarter ended March 31, 2004, these deductions have been reclassified to conform to the current year accounting presentation. This change in accounting presentation did not impact reported net income or earnings per share. SOURCE AMCOL International Corp. -0- 04/19/2005 /CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL International Corp., +1-847-394-8730/ /First Call Analyst: / /FCMN Contact: jennifer.melsheimer@amcol.com / /Web site: http://www.amcol.com /