410 N. Michigan Ave. Chicago, Illinois 60611, U.S.A
For Immediate Release
Oil-Dri Announces Fourth Quarter and Fiscal Year 2017 Results
CHICAGO-(October 10, 2017)-Oil-Dri Corporation of America (NYSE: ODC) today announced net income of $10,792,000 or $1.47 of earnings per diluted share for fiscal 2017, compared to net income of $13,613,000 or $1.87 of earnings per diluted share in the prior year. Net sales for the twelve-months were $262,307,000 compared to net sales of $262,313,000 in the same period of fiscal 2016.
Net income for the fourth quarter of fiscal 2017 was $1,322,000 or $0.18 of earnings per diluted share, compared to net income of $5,261,000 or $0.72 per diluted share in the same period of the prior year. Net sales for the fourth quarter were $65,776,000 compared to net sales of $64,916,000 in the same period of fiscal 2016.
A higher, but more traditionally normal tax rate drove a lower net income in fiscal 2017 compared to fiscal 2016. The unusually low tax rate in fiscal 2016 resulted from the full release of the valuation allowance associated with the deferred tax asset for domestic AMT credits. Our Cash and Investment balances grew by approximately $3,900,000 over fiscal 2016. We now have approximately $20,000,000 more in cash and investments than we have in short and long term debt.
President and Chief Executive Officer, Daniel S. Jaffee said, “The positives of fiscal 2017 performance might be missed when performance is only compared with the prior year and fourth quarter results, which benefited from a tax rate that was about 25% of our historical average. Fiscal 2017 had the second highest pre-tax income in our company’s history, but the return to our historical average tax rate resulted in much of the overall per share earnings decline.
We are confident in our strategy to concentrate on profitable lightweight cat litter and value-added Business to Business products. We have plans in place to respond to the approximate 8% per ton increase in manufacturing costs that negatively impacted an otherwise improving gross profit. Manufacturing increases were driven by increased labor, employee benefits and depreciation costs, many of which should be positively impacted by the production efficiency initiatives that will be implemented in 2018.
Reagan B. Culbertson
Investor Relations Manager
Oil-Dri Corporation of America
The following information was filed by Oildri Corp Of America (ODC) on Tuesday, October 10, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.