Oil-Dri Announces Record Results for the First Quarter of Fiscal Year 2025
Rhea-AI Summary
Oil-Dri of America (NYSE: ODC) reported record results for Q1 FY2025, with consolidated net sales reaching $127.9 million, a 15% increase year-over-year. The company achieved significant growth metrics including:
- Net income increased 52% to $16.4 million
- Operating income rose 61% to $21.2 million
- Gross margins expanded to 32%, a 400-basis point improvement
- Business to Business segment sales grew 24% to $48.4 million
- Retail and Wholesale segment sales increased 10% to $79.5 million
The strong performance was driven by increased volumes, favorable product mix, and improved operational efficiencies. The recently acquired Ultra Pet subsidiary contributed $6.0 million in net sales. The company maintained flat domestic cost of goods per ton compared to the prior year.
Positive
- Record quarterly net sales of $127.9 million, up 15% YoY
- Net income increased 52% to $16.4 million
- Gross margins expanded 400 basis points to 32%
- B2B segment sales grew 24% to $48.4 million
- Record fluids purification product sales of $30.1 million, up 37%
- Agricultural products achieved record quarterly sales of $11.6 million, up 12%
Negative
- SG&A expenses increased by $1.8 million (10%) to $19.6 million
- Total other expense increased to $1.0 million from $300,000
- Cash and cash equivalents decreased to $12.5 million from $23.5 million
- Domestic clay-based cat litter sales declined 2% (excluding co-packaged products)
- Animal health business sales decreased 3% in Asia
News Market Reaction – ODC
In the trading session that priced this news, ODC gained 17.24%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CHICAGO, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC), producer and marketer of sorbent mineral products, today announced results for its first quarter of fiscal year 2025.
| First Quarter | ||||||
| (in thousands, except per share amounts) | Ended October 31, | |||||
| 2024 | 2023 | Change | ||||
| Consolidated Results | ||||||
| Net Sales | $ | 127,945 | $ | 111,438 | 15 | % |
| Operating Income (Including Unallocated Corporate Expenses) | $ | 21,190 | $ | 13,156 | 61 | % |
| Net Income | $ | 16,376 | $ | 10,742 | 52 | % |
| EBITDA † | $ | 26,167 | $ | 17,384 | 51 | % |
| Diluted EPS - Common | $ | 2.25 | $ | 1.50 | 50 | % |
| Business to Business | ||||||
| Net Sales | $ | 48,415 | $ | 39,161 | 24 | % |
| Segment Operating Income | $ | 17,110 | $ | 11,123 | 54 | % |
| Retail and Wholesale | ||||||
| Net Sales | $ | 79,530 | $ | 72,277 | 10 | % |
| Segment Operating Income | $ | 13,377 | $ | 11,331 | 18 | % |
† Please refer to Reconciliation of Non-GAAP Financial Measures below for a reconciliation of Non-GAAP items to the comparable GAAP measures. | ||||||
Daniel S. Jaffee, President and Chief Executive Officer, stated, “I am happy to report that our fiscal year 2025 is off to a very positive start as we have once again achieved record results for consolidated net sales, gross profit, and net income in the first quarter. We also delivered a 400-basis point year-over-year expansion in our gross margins, propelling our margins to
Consolidated Results
Consolidated net sales for the first quarter of fiscal 2025 reached a historic high of
Consolidated gross profit of
Selling, general and administrative expenses (“SG&A”) were
In the first quarter of fiscal year 2025, consolidated operating income increased to
Total other expense, net was
Consolidated net income reached a record
Cash and cash equivalents for the three month period ending October 31, 2024, totaled
Product Group Review
The Business to Business Products (“B2B”) Group’s first quarter of fiscal year 2025 revenues were a record
During the first quarter of fiscal year 2025, SG&A costs within the B2B Products Group increased by
Operating income for the B2B Products Group was
The Retail and Wholesale (“R&W”) Products Group’s first quarter revenues reached an all-time high of
During the first quarter of fiscal 2025, SG&A expenses within the R&W Products Group increased by
Operating income for the R&W Products Group reached
The Company will host its first quarter of fiscal year 2025 earnings discussion and its 2024 Annual Meeting of Stockholders virtually via a live webcast on Wednesday, December 11, 2024 at 9:30 a.m. Central Time. Participation details are available on the Company’s website’s Events page.
1EMEA is the region including Europe, the Middle East, and Africa.
“Oil-Dri”, “Cat’s Pride”, “Metal X”, “Metal Z”, “Amlan”, and “Ultra” are registered trademarks of Oil-Dri Corporation of America and its subsidiaries.
About Oil-Dri Corporation of America
Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals.
Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in other press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Forward-looking statements can be identified by words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” “potential,” “strive,” and similar references to future periods.
Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially, including, but not limited to, those described in Item 1A, “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended October 31, 2024 and our most recent Annual Report on Form 10-K and from time to time in our other filings with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected, planned or otherwise expressed in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.
Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), we provide certain non-GAAP financial measures in this press release as supplemental financial metrics. In particular, EBITDA is a non-GAAP financial measure provided herein. We provide a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure below.
The non-GAAP financial measures we use may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared and reported in accordance with GAAP. We believe that certain non-GAAP measures may be helpful to investors and others in understanding and evaluating our operating results, and we urge investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included in this release, and not to rely on any single financial measure to evaluate our business.
Contact:
Leslie A. Garber
Director of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||
| Three Months Ended October 31, | ||||||||||||||
| 2024 | % of Sales | 2023 | % of Sales | |||||||||||
| Net Sales | $ | 127,945 | 100.0 | % | $ | 111,438 | 100.0 | % | ||||||
| Cost of Goods Sold | (87,165 | ) | (68.1 | )% | (80,447 | ) | (72.2 | )% | ||||||
| Gross Profit | 40,780 | 31.9 | % | 30,991 | 27.8 | % | ||||||||
| Selling, General and Administrative Expenses | (19,590 | ) | (15.3 | )% | (17,835 | ) | (16.0 | )% | ||||||
| Operating Income | 21,190 | 16.6 | % | 13,156 | 11.8 | % | ||||||||
| Other Expense, Net | (988 | ) | (0.8 | )% | (326 | ) | (0.3 | )% | ||||||
| Income Before Income Taxes | 20,202 | 15.8 | % | 12,830 | 11.5 | % | ||||||||
| Income Taxes Expense | (3,826 | ) | (3.0 | )% | (2,088 | ) | (1.9 | )% | ||||||
| Net Income | 16,376 | 12.8 | % | 10,742 | 9.6 | % | ||||||||
| Net Income Per Share: | Basic Common | $ | 2.43 | $ | 1.61 | |||||||||
| Basic Class B | $ | 1.82 | $ | 1.21 | ||||||||||
| Diluted Common | $ | 2.25 | $ | 1.50 | ||||||||||
| Diluted Class B | $ | 1.82 | $ | 1.21 | ||||||||||
| Avg Shares Outstanding: | Basic Common | 4,922 | 4,827 | |||||||||||
| Basic Class B | 1,984 | 1,967 | ||||||||||||
| Diluted Common | 6,906 | 6,794 | ||||||||||||
| Diluted Class B | 1,984 | 1,967 | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands, except per share amounts) | |||||
| As of October 31, | As of July 31, | ||||
| 2024 | 2024 | ||||
| Current Assets | |||||
| Cash and Cash Equivalents | $ | 12,506 | $ | 23,481 | |
| Accounts Receivable, Net | 70,544 | 62,171 | |||
| Inventories, Net | 56,025 | 54,236 | |||
| Prepaid Expenses and Other Assets | 5,040 | 7,270 | |||
| Total Current Assets | 144,115 | 147,158 | |||
| Property, Plant and Equipment, Net | 137,947 | 137,796 | |||
| Other Assets | 68,109 | 69,651 | |||
| Total Assets | $ | 350,171 | $ | 354,605 | |
| Current Liabilities | |||||
| Current Maturities of Notes Payable | $ | 1,000 | $ | 1,000 | |
| Accounts Payable | 13,824 | 15,009 | |||
| Dividends Payable | 2,098 | 2,096 | |||
| Other Current Liabilities | 37,919 | 48,572 | |||
| Total Current Liabilities | 54,841 | 66,677 | |||
| Noncurrent Liabilities | |||||
| Notes Payable | 44,777 | 49,774 | |||
| Other Noncurrent Liabilities | 26,561 | 27,566 | |||
| Total Noncurrent Liabilities | 71,338 | 77,340 | |||
| Stockholders' Equity | 223,992 | 210,588 | |||
| Total Liabilities and Stockholders' Equity | $ | 350,171 | $ | 354,605 | |
| Book Value Per Share Outstanding | $ | 32.43 | $ | 30.69 | |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| October 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
| Net Income | $ | 16,376 | $ | 10,742 | ||||||||||||
| Adjustments to reconcile net income to net cash | ||||||||||||||||
| provided by operating activities: | ||||||||||||||||
| Depreciation and Amortization | 5,381 | 4,368 | ||||||||||||||
| Increase in Accounts Receivable | (9,020 | ) | (1,487 | ) | ||||||||||||
| Increase in Inventories | (2,033 | ) | (1,374 | ) | ||||||||||||
| Decrease in Prepaid Expenses | 2,228 | 154 | ||||||||||||||
| Increase (Decrease) in Accounts Payable | 1,889 | (1,289 | ) | |||||||||||||
| Decrease in Accrued Expenses | (6,117 | ) | (4,365 | ) | ||||||||||||
| Other | 2,215 | 1,815 | ||||||||||||||
| Total Adjustments | (5,457 | ) | (2,178 | ) | ||||||||||||
| Net Cash Provided by Operating Activities | 10,919 | 8,564 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
| Capital Expenditures | (12,817 | ) | (8,064 | ) | ||||||||||||
| Net Cash Used in Investing Activities | (12,817 | ) | (8,064 | ) | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
| Principal Payments on Notes Payable | (5,000 | ) | — | |||||||||||||
| Dividends Paid | (2,096 | ) | (1,927 | ) | ||||||||||||
| Purchases of Treasury Stock | (1,984 | ) | (872 | ) | ||||||||||||
| Net Cash Used In Financing Activities | (9,080 | ) | (2,799 | ) | ||||||||||||
| Effect of exchange rate changes on Cash and Cash Equivalents | 3 | 124 | ||||||||||||||
| Net Decrease in Cash and Cash Equivalents | (10,975 | ) | (2,175 | ) | ||||||||||||
| Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 24,481 | 31,754 | ||||||||||||||
| Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 13,506 | $ | 29,579 | ||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||
| (in thousands) | |||||||||||||
| First Quarter | |||||||||||||
| Ended October 31, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| GAAP: Net Income | $ | 16,376 | $ | 10,742 | |||||||||
| Depreciation and Amortization | $ | 5,381 | $ | 4,368 | |||||||||
| Interest Expense | $ | 734 | $ | 361 | |||||||||
| Interest Income | $ | (150 | ) | $ | (175 | ) | |||||||
| Income Tax Expense | $ | 3,826 | $ | 2,088 | |||||||||
| EBITDA | $ | 26,167 | $ | 17,384 | |||||||||
This press release was published by a CLEAR® Verified individual.
