EX-99.1 3 e17501ex99-1.txt PRESS RELEASE Exhibit 99.1 AMCOL International (NYSE: ACO) Reports 60 Percent Increase in First Quarter Diluted Earnings Per Share Over 2003 First Quarter ARLINGTON HEIGHTS, Ill., April 19 /PRNewswire-FirstCall/ -- AMCOL International Corp. (NYSE: ACO) today reported 2004 first quarter net income of $5.1 million or $0.16 per diluted share, compared with $2.9 million or $0.10 per diluted share in the same prior-year period. Net sales rose 28 percent to $102.0 million for the period ended March 31, 2004, compared to $79.5 million for the period in 2003. Larry Washow, AMCOL president and chief executive officer said, "We are pleased that the first quarter of the new year continued our growth across the Company. Our mineral and environmental segments show double-digit increases in both revenues and operating profit. Growth for the quarter was broad-based across geographic locations and product portfolios, highlighted by strong sales in our minerals segment and excellent European environmental sales." Washow noted, "Stronger foreign currencies, primarily the Euro and British Pound, contributed approximately $0.01 per share of the increase in earnings. Recent acquisitions also accounted for approximately $0.01 per share of earnings." SEGMENT DISCUSSIONS Minerals The minerals segment, which accounted for approximately 63 percent of AMCOL's consolidated net sales for the first quarter of 2004, reported a sales increase of 28 percent, and an operating profit increase of 51 percent over the prior-year period. Washow said, "The first quarter results demonstrate our continued success in growing key areas of our business. Our Metalcasting Products Group, 45 percent of the mineral segment's sales, showed improvement as sales of both traditional product lines and our briquette product line drove top-line revenue growth for our minerals segment. Several of our Asia Pacific mineral operations performed very well in the first quarter, due to the rise in the Asian foundry sector. Our Pet Products Group had strong bulk and packaged product sales. Our Specialty Minerals Group also had a good quarter with our U.K.-based detergent business continued its strong performance and the health & beauty business operating results improved this quarter due to the acquisition completed at the end of 2003." Environmental AMCOL's environmental segment, which accounted for 31 percent of the Company's consolidated net sales for the first quarter of 2004, reported a 35 percent increase in sales and a 29 percent increase in operating profit in year-over-year comparisons for the first quarter. Washow commented, "In the past, the first quarter has been slow for our environmental segment. With our current globalization strategy in place our European environmental business remains focused on controlled and sustainable growth leading this segment's sales for the quarter. The acquisition of Linteco also added to our top-line growth." Washow continued, "In our domestic businesses, the Building Materials Group continued to perform well. The Lining Technologies Group has maintained its leading position in the domestic market and continues to concentrate on new lining opportunities. Our Water Treatment Group is starting to see the synergistic effect derived from the LaFayette Well Testing acquisition in terms of combined services on several projects." Transportation AMCOL's transportation segment, which accounted for 9 percent of the Company's consolidated net sales, including inter-segment shipping revenue, reported a 6 percent increase in sales, and a 3 percent increase in operating profit for the 2004 first quarter. Washow noted, "High demand and equipment utilization contributed to our transportation segment's first quarter sales, but continued increases in fuel costs adversely impacted margins and operating profit." FINANCIAL OVERVIEW Long-term debt amounted to $29.7 million at March 31, 2004 compared to $9.0 million at December 31, 2003. Debt represented 14 percent of total capitalization at March 31, 2004, compared to 5.1 percent at December 31, 2003. Cash and cash equivalents were $10.4 million at March 31, 2004 compared with $13.5 million at the end of 2003. General, selling and administrative expenses were $17.3 million in the 2004 first quarter, an increase of $3.0 million or 21 percent, over the 2003 period. Expenses were higher primarily due to increased compensations and benefit costs. Selling and administrative expenses associated with businesses acquired during the first quarter of 2004 also contributed to the increase. The weighted average number of common and common equivalent shares of 31.0 million increased by approximately 1.2 million shares, or approximately 4 percent, from March 31, 2003. During the first quarter of 2004, the Company repurchased approximately 12,000 shares of its common stock at an aggregate cost of $196,300, or an average price of $15.83 per share. Approximately $3.5 million remains available in the stock repurchase program approved by the Board of Directors in May 2002. AMCOL's financial condition at March 31, 2004 included working capital of approximately $106.5 million and a current ratio of 3.0-to-1 compared to approximately $91.9 million and a ratio of 3.0-to-1 at December 31, 2003. 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 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 and per share amounts) Three months ended March 31, 2004 2003 Net sales $101,967 $79,467 Cost of sales 77,431 60,843 Gross profit 24,536 18,624 General, selling and administrative expenses 17,296 14,294 Operating profit 7,240 4,330 Other income (expense): Interest expense, net (79) (80) Other income, net 43 32 (36) (48) Income before income taxes and equity in income of joint ventures 7,204 4,282 Income taxes 2,269 1,455 Income before equity in income of joint ventures 4,935 2,827 Income from joint ventures 148 103 Net income $5,083 $2,930 Weighted average common shares outstanding 29,092,656 27,994,263 Weighted average common and common equivalent shares outstanding 30,986,319 29,746,227 Basic earnings per share $0.17 $0.10 Diluted earnings per share $0.16 $0.10 Dividends declared per share $0.070 $0.030 AMCOL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share amounts) March 31, December 31, 2004 2003 ASSETS Cash $10,419 $13,525 Accounts receivable, net 76,948 60,997 Inventories 51,234 46,182 Income tax receivable 8,097 8,445 Other current assets 12,790 9,147 Total current assets 159,488 138,296 Property, plant, equipment and mineral rights 88,055 86,996 Investments in and advances to joint ventures 13,166 13,068 Intangible assets 16,939 6,978 Other long-term assets 14,255 13,439 $291,903 $258,777 LIABILITIES AND STOCKHOLDERS' EQUITY Notes payable $1,231 $844 Accounts payable 25,130 20,365 Accrued liabilities 26,627 25,162 Total current liabilities 52,988 46,371 Long-term debt 29,712 9,006 Minority interest in subsidiaries 118 116 Other long-term obligations 19,237 18,386 19,355 18,502 Stockholders' equity 189,848 184,898 $291,903 $258,777 Common shares outstanding at the end of the period 29,281,608 29,107,746 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands) Three Months Ended March 31, 2004 2003 Cash flows from operating activities: Net income $5,083 $2,930 Adjustments to reconcile net income to net cash used in operating activities: Depreciation, depletion, and amortization 5,091 4,492 Increase in current assets (18,236) (8,464) Increase in noncurrent assets (1,408) (863) Increase (decrease) in current liabilities 2,783 (2,833) Increase (decrease) in noncurrent liabilities 824 (139) Other 799 136 Net cash used in operating activities (5,064) (4,741) Cash flows from investing activities: Acquisition of land, depreciable and intangible assets (1,566) (3,489) Acquisitions, net of cash acquired (13,221) - Other 770 115 Net cash used in investing activities (14,017) (3,374) Cash flows from financing activities: Net change in outstanding debt 17,138 4,171 Dividends paid (2,047) (841) Proceeds from exercise of stock options 504 528 Purchases of treasury stock (196) (315) Net cash provided by financing activities 15,399 3,543 Effect of foreign currency rate changes on cash 576 (857) Net decrease in cash and cash equivalents (3,106) (5,429) Cash and cash equivalents at beginning of period 13,525 15,597 Cash and cash equivalents at end of period $10,419 $10,168 AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES SEGMENT RESULTS (unaudited) (In thousands) MINERALS Three months ended March 31, 2004 2003 2004 vs. 2003 $ Change % Change Product sales 59,117 $46,061 Shipping revenue 4,938 4,116 Net sales 64,055 100.0% 50,177 100.0% 13,878 27.7% Cost of sales-product 46,514 36,611 Cost of sales-shipping 4,938 4,116 Cost of sales 51,452 80.3% 40,727 81.2% Gross profit 12,603 19.7% 9,450 18.8% 3,153 33.4% General, selling and administrative exp. 5,168 8.1% 4,533 9.0% 635 14.0% Operating profit $7,435 11.6% $4,917 9.8% 2,518 51.2% ENVIRONMENTAL Three months ended March 31, 2004 2003 2004 vs. 2003 $ Change % Change Product sales $30,067 $21,953 Shipping revenue 1,700 1,536 Net sales 31,767 100.0% 23,489 100.0% 8,278 35.2% Cost of sales-product 19,171 13,757 Cost of sales-shipping 1,700 1,536 Cost of sales 20,871 65.7% 15,293 65.1% Gross profit 10,896 34.3% 8,196 34.9% 2,700 32.9% General, selling and administrative exp. 7,817 24.6% 5,813 24.7% 2,004 34.5% Operating profit $3,079 9.7% $2,383 10.1% 696 29.2% TRANSPORTATION Three months ended March 31, 2004 2003 2004 vs. 2003 $ Change % Change Net sales $9,332 100.0% $8,797 100.0% 535 6.1% Cost of sales 8,295 88.9% 7,819 88.9% Gross profit 1,037 11.1% 978 11.1% 59 6.0% General, selling and administrative exp. 651 7.0% 602 6.8% 49 8.1% Operating profit $386 4.1% $376 4.3% 10 2.7% CORPORATE Three months ended March 31, 2004 2003 2004 vs. 2003 $ Change % Change Intersegment shipping revenues $(3,187) $(2,996) Intersegment shipping costs (3,187) (2,996) Gross profit - - General, selling and administrative exp. 2,746 2,318 428 18.5% Nanocomposites 914 1,028 (114) -11.1% Operating loss $(3,660) $(3,346) (314) -9.4% SOURCE AMCOL International Corp. -0- 04/19/2004 /CONTACT: Jennifer Melsheimer, Investor Relations Manager of AMCOL International Corp., +1-847-394-8730/ /Web site: http://www.amcol.com / (ACO) CO: AMCOL International Corp. ST: Illinois IN: MNG CHM ENV SU: ERN CCA