Oil-Dri of America(ODC)2024-12-09 21:08Financial Performance - Net sales for the three months ended October 31, 2024, were $127,945,000, an increase of 14.8% compared to $111,438,000 for the same period in 2023[17] - Gross profit for the three months ended October 31, 2024, was $40,780,000, representing a gross margin of 31.9%, up from $30,991,000 in 2023[17] - Net income for the three months ended October 31, 2024, was $16,376,000, a 52.5% increase from $10,742,000 in the same period last year[19] - Basic earnings per share for common stock increased to $2.43 for the three months ended October 31, 2024, compared to $1.61 in 2023[17] - Income from operations for the three months ended October 31, 2024, was $21,190,000, compared to $13,156,000 for the same period in 2023, reflecting a growth of 61.1%[87] - The company reported a total comprehensive income of $16,334,000 for the three months ended October 31, 2024, compared to $10,557,000 in the same period last year[19] Assets and Liabilities - Total current assets decreased to $144,115,000 as of October 31, 2024, from $147,158,000 as of July 31, 2024[12] - Total liabilities decreased to $126,179,000 as of October 31, 2024, from $144,017,000 as of July 31, 2024[15] - Total stockholders' equity increased to $223,992,000 as of October 31, 2024, compared to $210,588,000 as of July 31, 2024[15] - Total current liabilities decreased to $54,841,000 from $66,677,000, a reduction of 17.8%[15] - Total noncurrent liabilities decreased to $71,338,000 from $77,340,000, a decline of 7.8%[15] - Total assets as of October 31, 2024, were $350,171,000, a decrease from $354,605,000 as of July 31, 2024[12] Cash Flow and Investments - Total cash provided by operating activities for the three months ended October 31, 2024, was $10,919,000, up from $8,564,000 in 2023, indicating a 27.5% increase[24] - Capital expenditures for the three months ended October 31, 2024, were $12,817,000, compared to $8,064,000 in 2023, reflecting a 58.5% increase[24] - The balance of cash and cash equivalents at the end of the period was $13,506,000, down from $29,579,000 in 2023, indicating a decrease of 54.4%[24] - The company experienced a net decrease in cash and cash equivalents of $(10,975,000) in 2024, compared to $(2,175,000) in 2023, highlighting cash flow challenges[24] Dividends and Stock - The company declared dividends of $0.310 per share for common stock and $0.233 per share for Class B stock, compared to $0.290 and $0.218, respectively, in 2023[17] - Dividends declared in the three months ended October 31, 2024, were $2,098,000, compared to $1,953,000 in 2023, marking a 7.4% increase[24] - Stock-based compensation expense for the three months ended October 31, 2024, was $0.9 million, compared to $0.8 million in the same period of 2023[91] - As of October 31, 2024, there were 350,000 non-vested restricted shares outstanding, with a weighted average grant date fair value of $53.75 per share[92] Inventory and Receivables - Total inventories increased to $56.025 million as of October 31, 2024, compared to $54.236 million as of July 31, 2024, with finished goods rising from $31.772 million to $34.130 million[62] - The company reported an increase in accounts receivable of $9,020,000 for the three months ended October 31, 2024, compared to an increase of $1,487,000 in 2023[24] - Inventory reserves were $3.7 million as of October 31, 2024, down from $3.8 million as of July 31, 2024[62] Compliance and Accounting - The company is in compliance with all covenants as of October 31, 2024, with no new borrowings during the first quarter of fiscal year 2025[79] - The company has not adopted any new accounting pronouncements during the reporting period[57] - The company is currently evaluating the impact of new accounting standards issued by the FASB, including ASU No. 2023-09 and ASU No. 2023-07, which will enhance disclosures related to income taxes and segment reporting, respectively[53][54] Other Financial Metrics - The company recorded a loss on impairment of patent applications amounting to $48,000 in 2024, with no such loss reported in 2023[24] - Operating lease costs for the three months ended October 31, 2024, were $1.37 million, compared to $546,000 for the same period in 2023, indicating an increase of 150%[82] - The company had $5 million drawn under the Credit Agreement at a 6.66% interest rate as of October 31, 2024, with $2.9 million of letters of credit outstanding[79]