Company update: Oil -Dri Q4 results

Oil-Dri Corporation of America (NYSE: ODC) today announced net sales of US$63,892,000 for the fourth quarter ended July 31, 2013, a 4.5% increase compared with net sales of $61,116,000in the same quarter one year ago.

Net income for the quarter was a record $4,737,000 or $0.67 per diluted share, compared to a net loss of $108,000, or $0.02 per diluted share, for the same quarter a year ago. The loss in the fourth quarter of fiscal 2012 was due to the one-time charge incurred for the relocation of course clay production from our Mounds, Illinois plant to our plants in Mississippi.

The Company reported record net sales and record earnings for the fiscal year ended July 31, 2013. Net sales were $250,583,000, a 4.1% increase compared to net sales of $240,681,000for fiscal 2012. Net income for the fiscal year was $14,586,000 or $2.07 per diluted share, up 143.5% from net income of $6,098,000, or $0.85 per diluted share, for fiscal 2012.

President and Chief Executive Officer Daniel S. Jaffee said, “We had a strong fourth quarter and full year. Despite an approximate 10% rise in freight costs, both business segments expanded gross profit and reported record earnings for the year.

“The Business to Business segment’s results for both the quarter and fiscal year were positively affected by sales of Fluid Purification’s Pure-Flo bleaching earth products used to refine vegetable oils and by sales of Amlan International’s Calibrin products used in livestock and poultry production. This increase in demand is tied to the growth in human food consumption.

“While net sales in the Retail and Wholesale segment were down for the fourth quarter, the product mix was favorable and expanded gross profit margins. We invested in marketing support for the Cat’s Pride Fresh & Light brand, although at reduced levels from fiscal 2012. We are encouraged by the 59% year over year growth of Fresh & Light sales from fiscal 2012 to fiscal 2013 and in particular, by the 43% rate of repeat purchases.” Net sales for the Company’s Business to Business segment for the fourth quarter were up $3,658,000 or 17.2% and segment income was up $433,000 or 5.6% from the prior year period. These increases were driven by volume growth of both Pure-Flo bleaching clay products for vegetable oil purification and Calibrin toxin binders for animal health, in overseas markets. Net sales of co-packaged coarse cat litters were up slightly while sales of agricultural products declined in the fourth quarter.

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