American Colloid Co. reports record first quarter sales and earnings, driven by increased polymer shipments.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)--April 24--American 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. Co. (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 first quarter sales and earnings, largely driven by increased 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. polymer polymer (pŏl`əmər), chemical compound with high molecular weight consisting of a number of structural units linked together by covalent bonds (see chemical bond). shipments from the company's 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. operations. A 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, 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 posted net income of $3.6 million for the quarter ended March 31, 1995, up 46 percent from $2.5 million in 1994. Sales rose 36 percent, from $57.8 million to $78.8 million. Earnings per share were 19 cents versus 13 cents in the prior-year quarter. John Hughes
Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased in three of our four segments, with environmental posting a small decrease. Most noteworthy is the tremendous growth in the volume and operating profit of Chemdal International, our absorbent polymer operation. Sales of the ASAP (chat) asap - As soon as possible. (R) product, our newest generation of absorbent polymer, were strong in 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 remain on track for mid-year start-up Start-upThe earliest stage of a new business venture. of ASAP production in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as well, and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op as to the product's market potential in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ." Sales and operating profit in American Colloid's minerals segment were both up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6 percent from the prior-year quarter, as strong demand for metalcasting and 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. products continued. Improvement in the gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was offset by increased costs for sales support, and research and development. Sales in the company's environmental segment doubled over the comparable 1994 quarter, bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by contributions from newly acquired businesses, mild winter weather and a recent upsurge in commercial construction. Increases in selling, general and administrative expenses, however, offset sales gains and contributed to a decline in operating profit. These higher costs were related primarily to environmental acquisitions made in 1994, an expanded sales force, research and development activities, and additional infrastructure costs. "We continue to build on the foundation supporting our growth strategy," Hughes said. "Going forward, we look for the rate of sales growth in our businesses to exceed the rate of increase in selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. ." Hughes added, "The acquisitions made last year by our environmental subsidiary, CETCO CETCO Colloid Environmental Technologies Company CETCO Capital Equipment & Technology Corporation , were an important step in our strategy to grow our environmental product and service capabilities, while gaining increased control of manufacturing and shipping costs. Although profit levels did not keep pace with the dramatic sales growth during the quarter, I am confident CETCO is on track toward higher contributions in the future." American Colloid's transportation operations, constituting approximately 7 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 12 percent increase in sales and a 15 percent rise in operating profit over the first quarter of 1994. Selling, general and administrative expenses totaled $10.8 million, a 38 percent increase over the prior-year quarter. Hughes attributed the higher costs primarily to increased sales support and research and development activity across all business segments. Net interest expense increased to $1.1 million in 1995, compared to $344,000 in the 1994 quarter, primarily driven by a higher debt level reflecting the company's aggressive capital expenditure program. Capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. related to expansion of absorbent polymer plant facilities totaled $389,000 in 1995, compared to $105,000 in 1994. 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. represented approximately 37 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 March 31, 1995, compared with approximately 34 percent at Dec. 31, 1994. Hughes said the higher debt level was expected, and in keeping with the company's strategy to grow in its three major business segments. In February February: see month. , American Colloid announced authorization The right or permission to use a system resource; the process of granting access. See access control. for a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. of up to 500,000 shares. To date, the company has not purchased any shares under the program. The company's financial condition at March 31, 1995, included working capital of $67.5 million, and a current ratio of 2.8 to 1. The company paid dividends of 6 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. in both the 1995 and 1994 quarters. At March 31, 1995, 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 $147.4 million, or $7.52 per weighted average share outstanding, compared to $126.6 million and $6.51, respectively, for the prior-year quarter. American Colloid Co. is a specialty mineral and chemical company that produces and markets a wide range of products used for industrial, environmental and consumer-related applications. American Colloid'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 AMERICAN COLLOID COMPANY CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (Thousands, except number of shares and per share amounts)
Three months ended
March 31,
1995 1994
---- ----
Net sales $78,750 $57,846
Cost of sales 61,374 45,929
--------- --------
Gross profit 17,376 11,917
General, selling and admin. expenses 10,818 7,864
-------- --------
Operating profit 6,558 4,053
-------- --------
Interest expense, net (1,068) (344)
Other income (expense), net 142 77
-------- -------
(926) (267)
-------- --------
Income before income taxes
and minority interest 5,632 3,786
-------- --------
Income taxes 1,975 1,271
-------- --------
Income before minority interest 3,657 2,515
Net income of minority interest (26) (25)
-------- ------
Net income $3,631 $2,490
------- -------
Earnings per share $0.19 $0.13
------- --------
Average common and common equivalent
shares outstanding during the period 19,589,537 19,444,476
AMERICAN COLLOID COMPANY
CONSOLIDATED BALANCE SHEET (unaudited)
(Thousands)
March 31,
1995 1994
ASSETS
Cash and cash equivalents $3,326 $3,783
Accounts receivable,net 56,399 44,505
Inventories 40,621 26,769
Other current assets 4,387 4,444
--------- --------
Total current assets 104,733 79,501
--------- -------
Property, plant, equipment
and reserves, net 163,788 100,406
--------- ---------
Intangible assets 9,060 4,734
--------- ---------
Other long-term assets 4,440 4,992
--------- ---------
$282,021 $189,633
========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current
maturities of debt $3,334 $4,476
Accounts payable 16,918 9,053
Accrued liabilities 16,942 11,187
-------- -------
Total current liabilities 37,194 24,716
------- --------
Long-term debt 85,855 26,607
------- --------
Other long-term obligations 11,593 11,717
------- --------
Stockholders' equity 147,379 126,593
------- --------
$282,021 $189,633
========= ========
AMERICAN COLLOID COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (In Thousands)
Three Months Ended
March 31
------------------
1995 1994
------------------
Cash flows from operating activities:
Net income $3,631 $2,490
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization 4,385 3,055
Other 232 150
(Increase)/decrease in current assets (6,318) (3,335)
Increase/(decrease) in current
liabilities 750 2,687
---------------------
Net cash provided by (used in)
operations 2,680 (327)
--------------------
Cash flows from investing activities:
Acquisition of land, mineral reserves,
depreciable and intangible assets (25,060) (25,149)
Other 1,713 (178)
---------------------
Net cash used in investing activities (23,347) (25,327)
---------------------
Cash flows from financing activities:
Net change in outstanding debt 14,224 9,920
Dividends paid (1,145) (1,120)
Other 525 135
-------------------
Net cash provided by financing
activities 13,604 8,935
-------------------
Net increase (decrease) in cash (7,063) (16,719)
Cash at beginning of period 10,389 20,502
-------------------
Cash at end of period $3,326 $3,783
===================
Quarter Ended March 31
----------------------------------------------------
1995 1994 1995 vs. 1994
-------------- ------------ ---------------
Minerals
--------
Amount Percent
Percent Percent Change Change
(Dollars in Thousands)
Net sales $39,097 100.0 $37,020 100.0 $2,077 5.6
Cost of sales 31,070 79.5 30,138 81.4
------- ---- -------- ----
Gross profit 8,027 20.5 6,882 18.6 1,145 16.6
General, selling
and administrative
expenses 4,236 10.8 3,289 8.9 947 28.8
------- ---- ------ -----
Operating profit 3,791 9.7 3,593 9.7 198 5.5
------- ---- ------ -----
Quarter Ended March 31
----------------------------------------------------
1995 1994 1995 vs. 1994
-------------- ------------ ---------------
Amount Percent
Absorbent Polymers Change Change
------------------ Percent Percent ------- ---------
(Dollars in Thousands)
Net sales $26,480 100.0 $12,205 100.0 $14,275 117.0
Cost of sales 20,302 76.7 9,045 74.1
------ ---- ------- ----
Gross profit 6,178 23.3 3,160 25.9 3,018 95.5
General, selling
and administrative
expenses 2,094 7.9 1,653 13.5 441 26.7
------ ----- ----- -----
Operating profit 4,084 15.4 1,507 12.4 2,577 171.0
------ ------ ----- -----
Quarter Ended March 31
----------------------------------------------------
1995 1994 1995 vs 1994
-------------- ------------ ---------------
Amount Percent
Environmental Change Change
------------- Percent Percent ----- ---------
(Dollars in Thousands)
Net sales $7,925 100.0 $3,942 100.0 $3,983 101.0
Cost of sales 5,397 68.1 2,654 67.3
------ ----- ------- -----
Gross profit 2,528 31.9 1,288 32.7 1,240 96.3
General, selling
and administrative
expenses 2,519 31.8 1,129 28.6 1,390 123.1
------ ----- ----- -----
Operating profit 9 0.1 159 4.1 (150) -94.3
------ ------ ----- -----
Quarter Ended March 31
----------------------------------------------------
1995 1994 1995 vs. 1994
-------------- ------------ ---------------
Amount Percent
Transportation Change Change
-------------- Percent Percent -------- ---------
(Dollars in Thousands)
Net sales $5,248 100.0 $4,679 100.0 $569 12.2
Cost of sales 4,605 87.7 4,092 87.5
------ ---- ------- -----
Gross profit 643 12.3 587 12.5 56 9.5
General, selling
and administrative
expenses 387 7.4 365 7.8 22 6.0
------ ----- ----- -----
Operating profit 256 4.9 222 4.7 34 15.3
------ ------ ----- -----
Quarter Ended March 31
----------------------------------------------------
1995 1994 1995 vs. 1994
-------------- ------------ ---------------
Amount Percent
Corporate Change Change
-------------- -------- ---------
(Dollars in Thousands)
General, selling
and administrative
expense $ 1,582 $ 1,428 154 10.78
Operating profit (1,582) (1,428) (154) 10.78 CONTACT: American Colloid Co. Jodi JODI Journal of Digital Information JODI Joint Operational Data Interchange Warner, 708/392-4600 |
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