AMCOL International Reports Record Sales and Earnings.ARLINGTON HEIGHTS Arlington Heights, village (1990 pop. 75,460), Cook county, NE Ill., a residential suburb of Chicago; founded 1836, inc. 1887. Its manufactures include machinery, drugs and medical equipment, and metal fabrication. Arlington Park racetrack is there. , Ill.--(BUSINESS WIRE)--Oct. 23, 1995--AMCOL International Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACOL ACOL Abortion Clinics OnLine ACOL Advisory Committee for Online Learning (Canada) ACOL AIDS Committee of London (Ontario, Canada) ACOL Air Combat On-Line (US Navy) ), reported record third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales and earnings, driven by higher sales and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in the company's absorbent absorbent /ab·sor·bent/ (-sor´bent) 1. able to take in, or suck up and incorporate. 2. a tissue structure involved in absorption. 3. a substance that absorbs or promotes absorption. polymers and environmental business segments. For the quarter ended Sept. 30, 1995, the specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. mineral and chemical producer posted net income of $4.9 million, up 16 percent from $4.2 million in 1994. Sales increased 31 percent, to $93 million in 1995, compared to $71 million in 1994. Earnings per share were 25 cents versus 22 cents. For the nine-month period ended Sept. 30, 1995, net income rose 31 percent to $13.2 million, up from $10.1 million in 1994, with earnings per share of 67 cents versus 52 cents. Sales for the nine-month period rose 32 percent to $255.4 million from $192.8 million in 1994. John Hughes
tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. . We maintained operating profit levels in this segment despite a difficult market, given the competitive environment and increasing raw material costs. In addition, our environmental segment is integrating the acquisitions made over the past year, and enjoying strong sales.'' Hughes noted that the company's third primary segment, minerals, reported a slight decline in sales and operating profits in the third quarter. Strong growth in cat litter Cat litter (often called kitty litter) is one of any of a number of materials used in litter boxes to absorb moisture from cat feces and urine, which reduces foul odors such as ammonia and renders them more tolerable within the home. sales and a solid contribution from the U.K.-based minerals operation, Volclay Ltd., were offset by softness in the domestic durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. sectors, coupled with lesser demand for agricultural carrier products. PERFORMANCE HIGHLIGHTS -- With increasing utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of its expanded capacity, the company's absorbent polymers unit, Chemdal International, reported record volume from both its U.S. and U.K. operations. Product shipments and increased capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. contributed to a 95 percent increase in sales, and a 57 percent increase in operating profit over the prior-year period. At Sept. 30, 1995, combined annual production capacity for the two operations totaled 110,000 metric tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. . Hughes said that the company operated at a 50 percent utilization rate on the 110,000-ton expanded capacity during the third quarter of 1995, and expects operating rates Operating rate The percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. to rise during the fourth quarter of 1995. ``Prospects in the absorbent polymers market continue to be bright, given our increased utilization rates, and industry expectation of a reduction in the pricing of acrylic acid acrylic acid /acryl·ic ac·id/ a readily polymerizing liquid used as a monomer for acrylic polymers. (the chief raw material component of Chemdal's superabsorbent polymers Superabsorbent polymers (SAP) are polymers that can absorb and retain extremely large amounts of a liquid relative to its own mass. [1] Water absorbing polymers, classified as hydrogels, absorb aqueous solutions through hydrogen bonding with the water molecule. ) during the fourth quarter of 1995,'' Hughes said. ``Demand for our newest generation of superabsorbent polymers, ASAP (chat) asap - As soon as possible. (R), has been strong in the United Kingdom and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . We continue to build business levels at our
Aberdeen Aberdeen, former county, ScotlandAberdeen, former county, Scotland: see Aberdeenshire. Aberdeen, city, Scotland Aberdeen, city (1991 pop. , Miss., plant, as well. -- Sales for the environmental segment, CETCO CETCO Colloid Environmental Technologies Company CETCO Capital Equipment & Technology Corporation (Colloid colloid (kŏl`oid) [Gr.,=gluelike], a mixture in which one substance is divided into minute particles (called colloidal particles) and dispersed throughout a second substance. Environmental Technologies Co.), rose 62 percent for the quarter, and operating profits increased 72 percent. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 51 percent of the sales increase was related to acquisitions made over the past year, Hughes said. ``CETCO also benefited in the third quarter from seasonal growth in the construction industry, and a product line extension related to its recent acquisition of a geosynthetic clay liner A geosynthetic clay liner (GCL) is a woven fabric like material primarily used for the lining of landfills. It is a kind of geomembrane and geosynthetic which incorporates a bentonite or other clay, which has a very low hydraulic conductivity. manufacturing company,'' Hughes noted. Hughes added that CETCO continues to make progress in bringing general, selling and administrative expenses in line with sales as it integrates acquisitions made over the past year. -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Colloid Company, AMCOL's minerals segment and largest source of sales, reported a 3 percent decline in sales and a 4 percent decline in operating profit, due in part to softness in many of its heavy industry sectors. ``Despite softness in the foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. business and other durable goods markets during the quarter,'' Hughes said, ``cat litter sales remained strong, and we continue to develop new business in this area. On a year-to-date basis, our international business through the U.K.-based minerals operation, Volclay Ltd., also showed impressive growth, benefiting from higher translation exchange rates and increased sales.'' -- In addition, AMCOL's transportation operations, accounting for approximately 6 percent of the quarter's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: sales, registered a 4 percent increase in operating profit on revenues which are approximately equal to those of the prior-year quarter. FINANCIAL OVERVIEW Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $117.4 million represented approximately 43 percent of total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. at Sept. 30, 1995, compared with approximately $39 million, or 22 percent of total capitalization, at Sept. 30, 1994. Net interest expense for the 1995 quarter was $2.1 million compared to $349,000 in 1994. For the nine-month period ended Sept. 30, 1995, net interest expense totaled $4.4 million, compared to $1.0 million in 1994. At Sept. 30, 1995, working capital was $86.4 million, with a current ratio of 3.31 to 1.0. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $153.7 million, or $8.01 per outstanding share, compared to $137.6 million and $7.24 respectively, for the prior-year quarter. During the third quarter, AMCOL directors approved a 17 percent increase in the quarterly dividend, from six cents to seven cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . AMCOL (and its predecessor predecessor - parent American Colloid Company) has consistently paid dividends since 1937. AMCOL International Corp. is a specialty chemical A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. and mineral company that produces and markets a wide range of products used for industrial, environmental and consumer-related applications. AMCOL's common stock is traded on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol ACOL. -0- QUARTERLY SHAREHOLDER REPORT AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (Thousands, except number of shares and per share amounts)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1995 1994 1995 1994
-------- ------- --------- --------
Net sales $92,978 $70,975 $255,388 $192,833
Cost of sales 73,376 54,480 198,981 151,179
-------- -------- --------- -------
Gross profit 19,602 16,495 56,407 41,654
General, selling and
administrative expenses 9,973 9,583 32,442 26,001
-------- ------- -------- ------
Operating profit 9,629 6,912 23,965 15,653
-------- ------- -------- -------
Interest expense, net (2,095) (349) (4,445) (1,036)
Other income, net 146 (98) 1,046 651
-------- ------- -------- --------
(1,949) (447) (3,399) (385)
-------- ------- -------- --------
Income before income taxes
and minority interest 7,680 6,465 20,566 15,268
-------- ------- ------- --------
Income taxes 2,748 2,199 7,275 5,110
-------- ------- ------- --------
Income before minority
interest 4,932 4,266 13,291 10,158
Net income of minority
interest (15) (28) (55) (77)
-------- -------- -------- --------
Net income $ 4,917 $4,238 $13,236 $10,081
-------- -------- -------- -------
Earnings per share $ 0.25 $ 0.22 $ 0.67 $ 0.52
-------- -------- -------- --------
Average common and common equivalent
shares outstanding during
the period 19,762,759 19,595,002 19,667,815 19,437,267
---------- ----------- ---------- ----------
QUARTERLY SHAREHOLDER REPORT AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (unaudited) (thousands)
Sept. 30,
1995 1994
----------------------
ASSETS
Cash and cash equivalents $ 1,245 $ 5,009
Accounts receivable, net 71,744 54,356
Inventories 44,500 29,760
Other current assets 6,360 4,736
------ ------
Total current assets 123,849 93,861
------ ------
Property, plant, equipment
and reserves, net 175,577 130,977
Intangible assets 15,544 8,556
Other long-term assets 4,808 4,711
$319,778 $238,105
LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable and current maturities of debt $3,333 $19,640 Accounts payable 16,506 15,824 Accrued liabilities 17,628 14,194 Total current liabilities 37,467 49,658 Long-term debt 117,376 38,969 Other long-term obligations 11,244 11,841 Stockholders' equity 153,691 137,637
$319,778 $238,105
AMCOL INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In Thousands)
Nine Months Ended
September 30,
1995 1994
Cash flows from operating
activities:
Net income $13,236 $10,081
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion,
and amortization 14,842 10,382
Other (228) 720
(Increase)/decrease in
current assets (27,350) (16,958)
Increase/(decrease) in
current liabilities 1,023 22,249
Net cash provided by operations 1,523 26,474
Cash flows from investing activities:
Acquisition of land, mineral reserves,
depreciable and intangible
assets (55,312) (65,654)
Other 1,832 1,194
Net cash used in investing
activities (53,480) (64,460)
Cash flows from financing activities:
Net change in outstanding debt 45,744 22,287
Dividends paid (3,639) (3,382)
Other 708 3,588
Net cash provided by financing
activities 42,813 22,493
Net Increase (decrease) in cash (9,144) (15,493) Cash at beginning of period 10,389 20,502 Cash at end of period $1,245 $5,009
AMCOL INTERNATIONAL CORP. AND SUBSIDIARIES
SEGMENT RESULTS
MINERALS
Quarter ended Sept. 30,
-----------------------------------------------
1995 1994 1995 vs. 1994
------------- ------------- ----------------
(Dollars in Thousands) $ Change % Change
-------- --------
Net sales $38,203 100.0% $39,217 100.0% ($1,014) -2.6%
Cost of sales 30,579 80.0% 31,363 80.0%
------- ------- ------- -----
Gross profit 7,624 20.0% 7,854 20.0% (230) -2.9%
General, selling and
administrative exp.3,479 9.1% 3,519 9.0% (40) -1.1%
------- ------ ----- -----
Operating profit 4,145 10.9% 4,335 11.0% (190) -4.4%
ABSORBENT POLYMERS
Quarter ended Sept. 30,
-----------------------------------------------------
1995 1994 1995 vs. 1994
---------------- -------------- -------------
(Dollars in Thousands) $ Change % Change
-------- ------
Net sales $31,286 100.0% $16,084 100.0% $15,202 94.5%
Cost of sales 25,023 80.0% 11,582 72.0%
------- ------ ------- -----
Gross profit 6,263 20.0% 4,502 28.0% 1,761 39.1%
General, selling and
administrative exp.2,394 7.7% 2,033 12.6% 361 17.8%
----- ----- ------ -----
Operating profit 3,869 12.3% 2,469 15.4% 1,400 56.7%
ENVIRONMENTAL
Quarter ended Sept. 30,
--------------------------------------------------
1995 1994 1995 vs. 1994
--------------- ------------ -----------------
(Dollars in Thousands) $ Change % Change
--------- -------
Net sales $17,790 100.0% $11,016 100.0% $6,774 61.5%
Cost of sales 12,794 71.9% 7,575 68.8%
------- ----- ------- -----
Gross profit 4,996 28.1% 3,441 31.2% 1,555 45.2%
General, selling and
administrative exp. 2,290 12.9% 1,871 17.0% 419 22.4%
------- ------ ------ ------
Operating profit 2,706 15.2% 1,570 14.2% 1,136 72.4%
TRANSPORTATION
Quarter ended Sept. 30,
----------------------------------------------------
1995 1994 1995 vs. 1994
---------------- -------------- ---------------
(Dollars in Thousands) $ Change % Change
-------- -------
Net sales $5,699 100.0% $5,658 100.0% $41 0.7%
Cost of sales 4,980 87.4% 4,960 87.7%
------ ------ ------ ------
Gross profit 719 12.6% 698 12.3% 21 3.0%
General, selling and
administrative exp. 404 7.1% 394 7.0% 10 2.5%
------- ------ ----- -----
Operating profit 315 5.5% 304 5.3% 11 3.6%
CORPORATE
Quarter ended Sept. 30,
-------------------------------------------------
1995 1994 1995 vs. 1994
--------------- -------------- ---------------
(Dollars in Thousands) $ Change % Change
-----------------
General, selling and
administrative exp. $1,406 $1,766 ($360) -20.4%
------ ------
Operating profit (1,406) (1,766) 360 20.4%
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS
MINERALS
Nine Months ended September 30,
----------------------------------------------
1995 1994 1995 vs. 1994
------------ -------------- ---------------
$ Change % Change
-----------------
(Dollars in Thousands)
Net sales $116,315 100.0% $113,993 100.0% $2,322 2.0%
Cost of sales 91,443 78.6% 91,708 80.5%
---------------- ----------------
Gross profit 24,872 21.4% 22,285 19.5% 2,587 11.6%
General,selling and
administrative exp.12,348 10.6% 10,395 9.1% 1,953 18.8%
---------------- ----------------
Operating profit 12,524 10.8% 11,890 10.4% 634 5.3%
ABSORBENT POLYMERS
Nine Months ended September 30,
----------------------------------------------
1995 1994 1995 vs. 1994
------------ -------------- ---------------
$ Change % Change
-----------------
(Dollars in Thousands)
Net sales $ 86,534 100.0% $ 42,426 100.0% $44,108 104.0%
Cost of sales 68,070 78.7% 31,320 73.8%
---------------- ----------------
Gross profit 18,464 21.3% 11,106 26.2% 7,358 66.3%
General, selling and
administrative exp. 6,811 7.9% 5,433 12.8% 1,378 25.4%
---------------- ----------------
Operating profit 11,653 13.4% 5,673 13.4% 5,980 105.4%
ENVIRONMENTAL
Nine Months ended September 30,
----------------------------------------------
1995 1994 1995 vs. 1994
------------ -------------- ---------------
$ Change % Change
-----------------
(Dollars in Thousands)
Net sales $36,324 100.0% $21,955 100.0% $14,369 65.4%
Cost of sales 25,248 69.5% 15,642 71.2%
--------------- ---------------
Gross profit 11,076 30.5% 6,313 28.8% 4,763 75.4%
General, selling and
administrative exp. 7,395 20.4% 4,379 19.9% 3,016 68.9%
--------------- ---------------
Operating profit 3,681 10.1% 1,934 8.9% 1,747 90.3%
TRANSPORTATION
Nine Months ended September 30,
----------------------------------------------
1995 1994 1995 vs. 1994
------------ -------------- ---------------
$ Change % Change
-----------------
(Dollars in Thousands)
Net sales $16,215 100.0% 15,459 100.0% $756 4.9%
Cost of sales 14,220 87.7% 13,509 87.4%
--------------- --------------
Gross profit 1,995 12.3% 1,950 12.6% 45 2.3%
General, selling and
administrative exp. 1,161 7.2% 1,156 7.5% 5 0.4%
--------------- --------------
Operating profit 834 5.1% 794 5.1% 40 5.0%
CORPORATE
Nine Months ended September 30,
----------------------------------------------
1995 1994 1995 vs. 1994
------------ -------------- ---------------
$ Change % Change
-----------------
(Dollars in Thousands)
General, selling and
administrative exp. $4,727 $4,638 $89 1.9%
------ ------
Operating profit (4,727) (4,638) (89) -1.9%
CONTACT: AMCOL International Lauren Lauren as a surname may refer to:
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