Minerals Technologies Inc.

AMCOL International Corporation (NYSE: ACO) Reports Second Quarter Results

0

Source: Minerals Technologies Inc.

HOFFMAN ESTATES, IL -- (Marketwire) -- 07/22/11 -- For the second quarter of 2011, AMCOL International Corporation (NYSE: ACO) generated diluted earnings per share attributable to its shareholders of $0.43 per share versus $0.51 per share in the prior year's quarter.

Net sales increased 13.6% to $250.8 million for the quarter ended June 30, 2011, as compared to $220.7 million for the 2010 period. Gross profits increased 3.3% while gross margins decreased from 27.5% to 25.0%. Operating profit decreased 6.8% to $22.1 million. The increase in our effective tax rate from 25.4% in the second quarter of 2010 to 30.1% in the 2011 quarter comprised $0.03 of the $0.08 decrease in diluted earnings per share attributable to our shareholders.

Fluctuations in foreign exchange rates accounted for 24.5% of the increase in sales, and helped offset more than one third of the organic decrease in operating profits. During the current quarter, our start-up chrome sand operations experienced net losses of $0.03 per diluted share. For the remainder of fiscal 2011, we expect our chrome sand operations to generate net losses of between $0.08 to $0.12 per diluted share; this excludes an estimated $0.05 per diluted share benefit resulting from a contingent gain we will record in Q3 associated with our chrome sand mining costs.

'Although sales for the quarter were in line with our expectations, our gross margins deteriorated in each of our three major business segments and led to our disappointing earnings in Q2,' said Ryan McKendrick, AMCOL President and Chief Executive Officer.

'The Minerals and Materials segment experienced good revenue growth. But gross margins decreased in our chrome sand business, our Asia operations, and our domestic operations, all of which contributed to the 3.2 percentage point decrease in margins for the segment as compared to Q2 2010. Our domestic operations experienced production cost increases, mostly related to fuel and labor costs. Our chrome sand business will continue to present challenges for the balance of the year as we upgrade our plant to improve throughput and product yields. Rapidly rising costs in Asia have not yet been fully offset by price increases, especially in Thailand and South Korea where margins have dropped by almost four percentage points as compared to the prior year's quarter. Our pet products business has been negatively impacted by reduced demand for both bulk as well as packaged products from large private label customers. Our domestic metalcasting business -- our largest business unit -- continues to perform well, maintaining gross margins despite rising costs,' continued McKendrick.

'The Environmental segment generated 25% sales growth over Q2 2010. We were disappointed in the more than 3 percentage point decrease in gross margins as compared to the prior year's quarter though. We experienced cost increases in Europe and are implementing plans to increase our margins in this geographic market. Although our U.S. based contracting services business had strong sales growth, the business overall continues to generate less than desired gross profits. Controlling SG&A costs remains an area of focus in this segment overall,' McKendrick added.

McKendrick continued, 'The Oilfield Services segment also experienced revenue growth consistent with our expectations. Its sales mix, however, negatively impacted gross margins. Revenues from high margin, offshore services in the Gulf of Mexico ('GOM'), including our flagship filtration services, decreased as compared to the prior year's quarter, leading to an overall 4.1 percentage point decrease in gross margins for the segment. We see no indication that deep water activity will increase in the GOM over the next couple of quarters.'

'The outlook for many of the major business units within our segments remains positive, but several areas will continue to present challenges. Demand in our metalcasting markets is expected to remain strong in the U.S. and Asia due to strong automotive and heavy equipment production. Our Building Materials group within the Environmental segment is continuing profitable growth despite relatively soft market conditions for non-residential construction primarily due to successful new product introductions. However, competition in the Lining Technologies area is limiting our ability to improve margin through pricing. Although our Oilfield Services' gross margins will continue to be impacted by the decline in deep water activity in the GOM, we are working hard to improve margins in other service offerings within this segment. Gross margin improvement will be the area of strong focus across all segments,' he concluded.

STATEMENT OF OPERATIONS HIGHLIGHTS:

The statement of operations highlights are supported by the quarterly segment results schedules included in this press release. The following comments relate to our results for the current quarter as compared to the second quarter of 2010, unless otherwise noted.

Net sales: Net sales increased $30.1 million or 13.6%.

Minerals & Materials: The majority of the revenue improvement was due to increased volumes, principally in our domestic and Asian metalcasting markets, and our relatively new chrome sand product offerings. These markets continue to experience an increase in demand for automobile and heavy equipment castings. In addition, approximately 22% of the increase in net sales was driven by favorable fluctuation in foreign currency exchange rates.

Environmental: This segment continues to see an increase in demand that is more pronounced given the depressed economic environment that existed during the prior year's period. The total increase in revenues was $16.1 million, or 24.6%. Approximately 80.2% of the increase in this segment's sales is attributable to organic growth with the remainder related to favorable fluctuations in foreign currency exchange rates. The increase occurred mostly in our domestic contracting services business and our European operations. Our domestic contracting services' prior year's results were heavily affected by the recession underway at that time, making comparisons to that period somewhat irrelevant for this business. Our European business continues to grow organically due to growing economies in Eastern Europe, new sales representation in certain geographic markets, and increased contracting services revenues.

Oilfield Services: The growth in revenues occurred primarily in our domestic businesses as several of our businesses, especially our coil tubing services, continue to benefit from increased demand in the Texas shale regions. Our pipeline services also experienced increased demand as high oil prices increase our customers' maintenance needs. Our domestic filtration revenues suffered significantly this quarter due to depressed offshore activity resulting from the low amount of drilling permits being issued in the GOM. Regarding our foreign operations, revenues in Australia decreased (due to a large customer contract that ended in Q3 2010) while all other foreign businesses experienced revenue growth.

Transportation: Nearly all of the revenue increase was due to increased fuel-surcharges. This segment continues to see an increase in services being provided to divisions with our other subsidiaries, principally our metalcasting and pet products groups; these intercompany revenues are eliminated in the corporate segment.

Gross profit: Gross profit increased $2.0 million, or 3.3%. Gross margins, however, decreased across all segments as discussed below.

Minerals & Materials: Gross profit decreased slightly but gross margins decreased 320 basis points to 22.5%. The decreased margins occurred in Asia and our domestic business, which experienced increased manufacturing costs, and in our start-up chrome sand operations in South Africa. We continue to focus on improving our chrome sand operations, which began late in the second quarter of 2010.

Environmental: Gross profit increased $2.5 million, or 12.2%, from the 2010 quarter. The increase in gross profit was derived largely from the increased sales levels as previously mentioned. Gross margins, however, decreased 310 basis points to 27.8%. The decrease in margins occurred due to a change in product mix as well as increased production costs and raw material costs.

Oilfield Services: Gross profit decreased due to the 410 basis point decrease in gross margins derived from a change in our sales mix. Although revenues increased, the increases were concentrated in onshore as opposed to offshore work. This shift decreased profitability as offshore work is more profitable. Gross margins in our international business also decreased due to the completion of a large job in Australia in Q3 2010.

Selling, general and administrative expenses (SG&A): The 9.8% increase in SG&A expenses was driven mostly by increases in our Minerals & Materials and Environmental segments with 28.6% of the increase arising from unfavorable changes in foreign currency exchange rates. The organic increase resulted primarily from increased employee and employee related expenses.

Income tax expense: Our income tax expense increased due to an increase in our effective tax rate, which increased due to our expectation that our foreign operations will generate less of our total 2011 pre-tax income than previously anticipated.

FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:

Long-term debt increased slightly to $240.5 million since our prior year-end, and we reduced our cash balance by $9.3 million to $17.9 million during that time. Long-term debt as a percentage of total capitalization was 36.7% at June 30, 2011 as compared to 37.1% at December 31, 2010. Since the prior year-end, we have increased our non-cash working capital by $30.7 million due to growth we've had in 2011.

Cash flow generated from operating activities was $13.8 million through the first six months of 2011 as compared to $6.9 million in the prior year period. The increase results from greater income and non-cash charges.

Capital expenditures for the six months ending June 30, 2011 were $24.8 million as compared to $25.9 million in the prior year's period. In each of these periods, expenditures associated with our start-up chrome sand operations were $2.8 million and $13.4 million, respectively. In the six months ending June 30, 2011, the majority of our capital spending occurred in our Oilfield Services segment and our Minerals and Materials segment.

Dividends through June 30, 2011 remained roughly the same over the prior year period as our dividend per share has remained constant at $0.18 per quarter per share.

This release should be read in conjunction with the attached unaudited, condensed, consolidated financial statements. It 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 undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL's expectations.

AMCOL International, headquartered in Hoffman Estates, IL, develops and markets a wide range of mineral and technology based products and services for use in various industrial, environmental and consumer applications. AMCOL is the parent company of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company 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 quarterly quarter conference call will be available live today at 11 a.m. ET on the AMCOL website via webcast or by dialing 1.877.718.5092.

Financial tables follow.

 

                      AMCOL INTERNATIONAL CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)
                   (In thousands, except per share data)

----------------------------------------------------------------------------
                                   Six Months Ended     Three Months Ended
                                       June 30,              June 30,
                                 -------------------------------------------
                                    2011       2010       2011       2010
----------------------------------------------------------------  ----------

  Net sales                      $ 473,248  $ 395,664  $ 250,833  $ 220,713
  Cost of sales                    352,334    290,342    188,039    159,938
                                 ---------  ---------  ---------  ---------
    Gross profit                   120,914    105,322     62,794     60,775
  General, selling and
   administrative expenses          80,214     70,818     40,664     37,031
                                 ---------  ---------  ---------  ---------
    Operating profit                40,700     34,504     22,130     23,744
                                 ---------  ---------  ---------  ---------
  Other income (expense):
    Interest expense, net           (5,484)    (4,550)    (2,802)    (2,334)
    Other, net                         113       (117)       489        330
                                 ---------  ---------  ---------  ---------
                                    (5,371)    (4,667)    (2,313)    (2,004)
                                 ---------  ---------  ---------  ---------
    Income before income taxes
     and income (loss) from
     affiliates and joint
     ventures                       35,329     29,837     19,817     21,740
  Income tax expense                10,331      7,701      5,966      5,519
                                 ---------  ---------  ---------  ---------
    Income before income (loss)
     from affiliates and joint
     ventures                       24,998     22,136     13,851     16,221

  Income (loss) from affiliates
   and joint ventures                  996        (71)       (93)        20

                                 ---------  ---------  ---------  ---------
    Net income (loss)               25,994     22,065     13,758     16,241
                                 ---------  ---------  ---------  ---------

  Net income (loss) attributable
   to noncontrolling interests           4       (212)         3         92

                                 ---------  ---------  ---------  ---------
  Net income (loss) attributable
   to AMCOL shareholders         $  25,990  $  22,277  $  13,755  $  16,149
                                 =========  =========  =========  =========

  Weighted average common shares
   outstanding                      31,611     31,092     31,706     31,141

  Weighted average common and
   common equivalent shares
   outstanding                      32,099     31,467     32,206     31,515

  Basic earnings per share
   attributable to AMCOL
   shareholders                  $    0.82  $    0.72  $    0.43  $    0.52

  Diluted earnings per share
   attributable to AMCOL
   shareholders                  $    0.81  $    0.71  $    0.43  $    0.51

  Dividends declared per share   $    0.36  $    0.36  $    0.18  $    0.18
----------------------------------------------------------------------------


                      AMCOL INTERNATIONAL CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)


----------------------------------------------------------------------------
ASSETS                                              June 30,   December 31,
                                                      2011         2010
                                                  (unaudited)       *
----------------------------------------------------------------------------
    Current assets:
      Cash and equivalents                        $    17,928 $      27,262
      Accounts receivable, net                        228,525       193,968
      Inventories                                     120,279       107,515
      Prepaid expenses                                 18,297        12,581
      Deferred income taxes                             5,668         5,553
      Income tax receivable                            12,810         8,474
      Other                                               336         6,211
                                                  ----------- -------------

          Total current assets                        403,843       361,564
                                                  ----------- -------------

    Noncurrent assets:
      Property, plant, equipment, mineral rights
       and reserves:
        Land                                           11,237        11,591
        Mineral rights                                 49,140        51,435
        Depreciable assets                            477,513       454,351
                                                  ----------- -------------

                                                      537,890       517,377
        Less: accumulated depreciation and
         depletion                                    273,528       256,889
                                                  ----------- -------------

                                                      264,362       260,488
                                                  ----------- -------------

      Goodwill                                         71,729        70,909
      Intangible assets, net                           39,259        42,590
      Investments in and advances to affiliates
       and joint ventures                              22,580        19,056
      Available-for-sale securities                     6,552        14,168
      Deferred income taxes                             5,898         7,570
      Other assets                                     24,418        22,748

                                                  ----------- -------------
          Total noncurrent assets                     434,798       437,529
                                                  ----------- -------------
    Total Assets                                  $   838,641 $     799,093

                                                  =========== =============

                                                  --------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY


----------------------------------------------------------------------------
    Current liabilities:
      Accounts payable                            $    61,279 $      53,167
      Accrued liabilities                              72,120        59,308

                                                  ----------- -------------
          Total current liabilities                   133,399       112,475
                                                  ----------- -------------

    Noncurrent liabilities:
      Long-term debt                                  240,532       236,171
      Pension liabilities                              21,738        21,338
      Deferred compensation                             9,547         8,686
      Other long-term liabilities                      19,035        19,987

                                                  ----------- -------------
          Total noncurrent liabilities                290,852       286,182
                                                  ----------- -------------

    Shareholders' Equity:
      Common stock                                        320           320
      Additional paid in capital                       91,364        95,074
      Retained earnings                               297,828       283,189
      Accumulated other comprehensive income           24,398        28,936
      Less: Treasury stock                             (4,380)       (8,945)

                                                  ----------- -------------
    Total AMCOL shareholders' equity                  409,530       398,574
                                                  ----------- -------------

      Noncontrolling interest                           4,860         1,862

                                                  ----------- -------------
          Total equity                                414,390       400,436
                                                  ----------- -------------

    Total Liabilities and Shareholders' Equity    $   838,641 $     799,093

                                                  =========== =============

----------------------------------------------------------------------------

  * Condensed from audited financial statements.



                      AMCOL INTERNATIONAL CORPORATION
        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                               (In thousands)

----------------------------------------------------------------------------
                                                        Six Months Ended
                                                            June 30,
                                                    ------------------------
                                                        2011        2010
----------------------------------------------------------------------------
Cash flow from operating activities:
  Net income                                        $    25,994 $    22,065
  Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
    Depreciation, depletion, and amortization            19,731      17,022
    Other non-cash charges                                2,891       3,655
    Changes in assets and liabilities, net of
     effects of acquisitions:
        Decrease (increase) in current assets           (57,469)    (49,570)
        Decrease (increase) in noncurrent assets           (843)     (1,832)
        Increase (decrease) in current liabilities       22,016      14,667
        Increase (decrease) in noncurrent
         liabilities                                      1,528         843
                                                    ----------- -----------
          Net cash provided by (used in) operating
           activities                                    13,848       6,850
                                                    ----------- -----------

Cash flow from investing activities:
  Capital expenditures                                  (24,800)    (25,939)
  Investments in and advances to affiliates and
   joint ventures                                        (1,276)     (1,985)
  Other                                                   1,718       1,493
                                                    ----------- -----------
          Net cash (used in) investing activities       (24,358)    (26,431)
                                                    ----------- -----------
Cash flow from financing activities:
  Net change in outstanding debt                          4,530      17,808
  Proceeds from sales of treasury stock                   6,619       2,904
  Dividends                                             (11,351)    (11,149)
  Excess tax benefits from stock-based compensation         651         164
                                                    ----------- -----------
          Net cash provided by (used in) financing
           activities                                       449       9,727
                                                    ----------- -----------
Effect of foreign currency rate changes on cash             727        (779)
                                                    ----------- -----------
Net increase (decrease) in cash and cash equivalents     (9,334)    (10,633)
                                                    ----------- -----------
Cash and cash equivalents at beginning of period         27,262      27,669
                                                    ----------- -----------
Cash and cash equivalents at end of period          $    17,928 $    17,036
                                                    =========== ===========

 

 

                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                              QUARTER-TO-DATE

----------------------------------------------------------------------------
     Minerals and
       Materials                   Three Months Ended June 30,
                      ------------------------------------------------------
                            2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales             $119,851   100.0% $106,397   100.0% $ 13,454     12.6%
Cost of sales           92,862    77.5%   79,057    74.3%   13,805     17.5%
                      -------- -------  -------- -------  --------
 Gross profit           26,989    22.5%   27,340    25.7%     (351)    -1.3%

General, selling and
 administrative
 expenses               12,290    10.3%   11,014    10.4%    1,276     11.6%
                      -------- -------  -------- -------  --------
 Operating profit       14,699    12.2%   16,326    15.3%   (1,627)   -10.0%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
     Environmental                  Three Months Ended June 30,
                       -----------------------------------------------------
                             2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales              $ 81,220   100.0% $ 65,159   100.0% $ 16,061    24.6%
Cost of sales            58,642    72.2%   45,037    69.1%   13,605    30.2%
                       -------- -------  -------- -------  --------
 Gross profit            22,578    27.8%   20,122    30.9%    2,456    12.2%

General, selling and
 administrative
 expenses                14,359    17.7%   12,108    18.6%    2,251    18.6%
                       -------- -------  -------- -------  --------
 Operating profit         8,219    10.1%    8,014    12.3%      205     2.6%

------------------------------- --------------------------------------------

 




----------------------------------------------------------------------------
  Oilfield Services                Three Months Ended June 30,
                      ------------------------------------------------------
                            2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales             $ 44,837   100.0% $ 39,644   100.0% $  5,193     13.1%
Cost of sales           33,372    74.4%   27,874    70.3%    5,498     19.7%
                      -------- -------  -------- -------  --------
 Gross profit           11,465    25.6%   11,770    29.7%     (305)    -2.6%

General, selling and
 administrative
 expenses                8,042    17.9%    7,217    18.2%      825     11.4%
                      -------- -------  -------- -------  --------
 Operating profit        3,423     7.7%    4,553    11.5%   (1,130)   -24.8%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
    Transportation                 Three Months Ended June 30,
                      ------------------------------------------------------
                            2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales             $ 14,780   100.0% $ 13,583   100.0% $  1,197      8.8%
Cost of sales           13,140    88.9%   12,040    88.6%    1,100      9.1%
                      -------- -------  -------- -------  --------
 Gross profit            1,640    11.1%    1,543    11.4%       97      6.3%

General, selling and
 administrative
 expenses                  955     6.5%      844     6.2%      111     13.2%
                      -------- -------  -------- -------  --------
 Operating profit          685     4.6%      699     5.1%      (14)    -2.0%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
            Corporate                    Three Months Ended June 30,
                                  ------------------------------------------
                                     2011       2010       2011 vs. 2010
----------------------------------------------------------------------------
                                            (Dollars in Thousands)
----------------------------------------------------------------------------

Intersegment shipping sales       $  (9,855) $  (4,070) $  (5,785)
Intersegment shipping costs          (9,977)    (4,070)    (5,907)
                                  ---------  ---------  ---------
  Gross profit (loss)                   122          -        122

General, selling and
 administrative expenses              5,018      5,848       (830)    -14.2%
                                  ---------  ---------  ---------
  Operating loss                     (4,896)    (5,848)       952     -16.3%

----------------------------------------------------------------------------


                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                                YEAR-TO-DATE

----------------------------------------------------------------------------
Minerals and Materials               Six Months Ended June 30,
                       -----------------------------------------------------
                             2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales              $236,731   100.0% $204,085   100.0% $ 32,646    16.0%
Cost of sales           181,281    76.6%  152,535    74.7%   28,746    18.8%
                       -------- -------  -------- -------  --------
 Gross profit            55,450    23.4%   51,550    25.3%    3,900     7.6%

General, selling and
 administrative
 expenses                24,580    10.4%   20,918    10.2%    3,662    17.5%
                       -------- -------  -------- -------  --------
 Operating profit        30,870    13.0%   30,632    15.1%      238     0.8%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
     Environmental                   Six Months Ended June 30,
                       -----------------------------------------------------
                             2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales              $136,553   100.0% $103,334   100.0% $ 33,219    32.1%
Cost of sales            97,919    71.7%   72,216    69.9%   25,703    35.6%
                       -------- -------  -------- -------  --------
 Gross profit            38,634    28.3%   31,118    30.1%    7,516    24.2%

General, selling and
 administrative
 expenses                28,132    20.6%   23,321    22.6%    4,811    20.6%
                       -------- -------  -------- -------  --------
 Operating profit
  (loss)                 10,502     7.7%    7,797     7.5%    2,705    34.7%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
   Oilfield Services                 Six Months Ended June 30,
                       -----------------------------------------------------
                             2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales              $ 89,581   100.0% $ 69,848   100.0% $ 19,733    28.3%
Cost of sales            65,452    73.1%   50,064    71.7%   15,388    30.7%
                       -------- -------  -------- -------  --------
 Gross profit            24,129    26.9%   19,784    28.3%    4,345    22.0%

General, selling and
 administrative
 expenses                15,834    17.7%   14,003    20.0%    1,831    13.1%
                       -------- -------  -------- -------  --------
 Operating profit         8,295     9.2%    5,781     8.3%    2,514    43.5%

----------------------------------------------------------------------------

 



----------------------------------------------------------------------------
    Transportation                  Six Months Ended June 30,
                      ------------------------------------------------------
                            2011              2010          2011 vs. 2010
----------------------------------------------------------------------------
                                      (Dollars in Thousands)
----------------------------------------------------------------------------

Net sales             $ 27,454   100.0% $ 25,703   100.0% $  1,751      6.8%
Cost of sales           24,411    88.9%   22,833    88.8%    1,578      6.9%
                      -------- -------  -------- -------  --------
 Gross profit            3,043    11.1%    2,870    11.2%      173      6.0%

General, selling and
 administrative
 expenses                1,893     6.9%    1,660     6.5%      233     14.0%
                      -------- -------  -------- -------  --------
 Operating profit        1,150     4.2%    1,210     4.7%      (60)    -5.0%

----------------------------------------------------------------------------

 



----------------------------------------------------------------------------
            Corporate                     Six Months Ended June 30,
                                  ------------------------------------------
                                     2011       2010       2011 vs. 2010
----------------------------------------------------------------------------
                                            (Dollars in Thousands)
----------------------------------------------------------------------------

Intersegment sales                $ (17,071) $  (7,306) $  (9,765)
Intersegment cost of sales          (16,729)    (7,306)    (9,423)
                                  ---------  ---------  ---------
  Gross profit (loss)                  (342)         -       (342)

General, selling and
 administrative expenses              9,775     10,916     (1,141)    -10.5%
                                  ---------  ---------  ---------
  Operating loss                    (10,117)   (10,916)       799      -7.3%

----------------------------------------------------------------------------


                 AMCOL INTERNATIONAL CORPORATION
              SUPPLEMENTARY INFORMATION (unaudited)
                         QUARTER-TO-DATE

----------------------------------------------------------------------------
    Composition of Sales by
        Geographic Region             Three Months Ended June 30, 2011
                                --------------------------------------------
                                                          Asia
                                 Americas     EMEA      Pacific      Total
------------------------------- --------------------------------------------
Minerals & Materials               28.1%      8.7%       10.4%       47.2%
Environmental                      15.7%      14.5%       1.9%       32.1%
Oilfield Services                  15.4%      0.9%        1.4%       17.7%
Transportation                      3.0%      0.0%        0.0%        3.0%

                                --------------------------------------------
Total - current year's period      62.2%      24.1%      13.7%      100.0%
                                ============================================
Total from prior year's
 comparable period                 64.8%      21.2%      14.0%      100.0%

----------------------------------------------------------------------------

 



----------------------------------------------------------------------------
Percentage of Revenue Growth
 by Component                        Three Months Ended June 30, 2011
                                                    vs.
                                     Three Months Ended June 30, 2010

                              ----------------------------------------------
                                 Base                   Currency
                               Business  Acquisitions Translation    Total
----------------------------------------------------------------------------
Minerals & Materials             4.7%        0.0%         1.4%       6.1%
Environmental                    5.9%        0.0%         1.4%       7.3%
Oilfield Services                1.9%        0.0%         0.5%       2.4%
Transportation                  -2.1%        0.0%         0.0%      -2.1%

                              ----------------------------------------------
Total                            10.4%       0.0%         3.3%       13.7%
                              ==============================================
% of growth                      75.5%       0.0%        24.5%      100.0%

----------------------------------------------------------------------------

 



----------------------------------------------------------------------------
   Minerals and Materials Product Line Sales    Three Months Ended June 30,
                                               -----------------------------
                                                  2011      2010   % change
----------------------------------------------------------------------------
                                                  (Dollars in Thousands)
----------------------------------------------------------------------------

Metalcasting                                   $  64,686 $  49,857     29.7%
Specialty materials                               26,015    27,055     -3.8%
Pet products                                      12,998    14,453    -10.1%
Basic minerals                                    11,498    13,429    -14.4%
Other product lines                                4,654     1,603    190.3%

                                               --------- ---------
  Total                                          119,851   106,397     12.6%
                                               ========= =========


----------------------------------------------------------------------------

 



----------------------------------------------------------------------------
       Environmental Product Line Sales         Three Months Ended June 30,
                                               -----------------------------
                                                  2011      2010   % change
----------------------------------------------------------------------------
                                                  (Dollars in Thousands)
----------------------------------------------------------------------------

Lining technologies                            $  32,621 $  35,022     -6.9%
Building materials                                21,159    13,540     56.3%
Contracting services                              18,980    10,425     82.1%
Drilling products                                  8,460     6,172     37.1%

                                               --------- ---------
  Total                                           81,220    65,159     24.6%
                                               ========= =========

----------------------------------------------------------------------------
                 AMCOL INTERNATIONAL CORPORATION
              SUPPLEMENTARY INFORMATION (unaudited)
                           YEAR-TO-DATE

----------------------------------------------------------------------------
    Composition of Sales by
        Geographic Region              Six Months Ended June 30, 2011
                                --------------------------------------------
                                                          Asia
                                 Americas     EMEA      Pacific      Total


----------------------------------------------------------------------------
Minerals and materials             29.3%      9.7%       10.6%       49.6%
Environmental                      14.2%      12.6%       1.6%       28.4%
Oilfield services                  17.0%      0.8%        1.2%       19.0%
Transportation                      3.0%      0.0%        0.0%        3.0%

                                ---------- ---------- ----------- ----------
Total - current year's period      63.5%      23.1%      13.4%      100.0%
                                ========== ========== =========== ==========
Total from prior year's
 comparable period                 65.0%      20.5%      14.5%      100.0%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
 Percentage of Revenue Growth
         by Component                 Six Months Ended June 30, 2011

                                                    vs.
                                      Six Months Ended June 30, 2010

                              ----------------------------------------------
                                                        Foreign
                                Organic  Acquisitions   Exchange     Total
----------------------------------------------------------------------------
Minerals and materials           7.2%        0.0%         1.1%       8.3%
Environmental                    7.2%        0.2%         1.0%       8.4%
Oilfield services                4.6%        0.0%         0.4%       5.0%
Transportation                  -2.0%        0.0%         0.0%      -2.0%

                              ---------- ------------ ----------- ----------
Total                            17.0%       0.2%         2.5%       19.7%
                              ========== ============ =========== ==========
% of growth                      86.4%       1.0%        12.6%      100.0%

----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
   Minerals and Materials Product Line Sales     Six Months Ended June 30,
                                               -----------------------------
                                                  2011      2010   % change
----------------------------------------------------------------------------
                                                  (Dollars in Thousands)
----------------------------------------------------------------------------

Metalcasting                                   $ 124,838 $  94,197     32.5%
Specialty materials                               52,036    52,863     -1.6%
Pet products                                      28,069    30,891     -9.1%
Basic minerals                                    23,040    22,775      1.2%
Other product lines                                8,748     3,359    160.4%

                                               --------- ---------
  Total                                          236,731   204,085     16.0%
                                               ========= =========


----------------------------------------------------------------------------

 




----------------------------------------------------------------------------
       Environmental Product Line Sales          Six Months Ended June 30,
                                               -----------------------------
                                                  2011      2010   % change
----------------------------------------------------------------------------
                                                  (Dollars in Thousands)
----------------------------------------------------------------------------

Lining technologies                            $  53,725 $  51,587      4.1%
Building materials                                38,215    26,041     46.7%
Contracting services                              30,210    14,639    106.4%
Drilling products                                 14,403    11,067     30.1%

                                               --------- ---------
  Total                                          136,553   103,334     32.1%
                                               ========= =========

----------------------------------------------------------------------------

 

For further information, contact:
Don Pearson
Vice President & Chief Financial Officer
847.851.1500

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