Oil-Dri of America(ODC) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the six months ended January 31, 2025, increased to $244.859 million, up from $217.106 million in the same period last year, representing a growth of 12.8%[13] - Gross profit for the six months ended January 31, 2025, was $75.228 million, compared to $61.933 million for the same period in 2024, reflecting a gross margin increase from 28.6% to 30.7%[13] - Net income for the six months ended January 31, 2025, was $29.297 million, an increase of 26.7% from $23.124 million in the prior year[13] - Earnings per share for basic common stock rose to $2.17 for the six months ended January 31, 2025, compared to $1.72 for the same period in 2024, marking a 26.2% increase[13] - Operating income for the six months ended January 31, 2025, was $38.672 million, up from $28.321 million in the prior year, representing a growth of 36.5%[13] - The company reported total comprehensive income of $29.089 million for the six months ended January 31, 2025, compared to $23.109 million for the same period in 2024, an increase of 25.8%[16] Assets and Liabilities - Total assets as of January 31, 2025, were $353.747 million, slightly down from $354.605 million as of July 31, 2024[10] - Total liabilities decreased to $117.887 million as of January 31, 2025, from $144.017 million as of July 31, 2024, indicating a reduction of 18.1%[12] - Stockholders' equity increased to $235.860 million as of January 31, 2025, up from $210.588 million as of July 31, 2024, reflecting an increase of 11.9%[12] Cash Flow and Investments - Total cash provided by operating activities for the six months ended January 31, 2025, was $32,330 thousand, compared to $17,945 thousand for the same period in 2024, reflecting a significant increase[27] - Capital expenditures for the six months ended January 31, 2025, were $17,806 thousand, up from $15,546 thousand in 2024, indicating ongoing investment in business operations[27] - Dividends paid during the six months ended January 31, 2025, totaled $4,194 thousand, compared to $3,889 thousand in 2024, representing an increase of 7.8%[27] Stock and Shareholder Information - The company declared a dividend of $0.310 per share for common stock for the six months ended January 31, 2025, compared to $0.290 in the same period last year[13] - The balance of common and Class B stock increased to 19,866,445 shares as of January 31, 2025, from 19,805,720 shares as of January 31, 2024[25] - A two-for-one stock split was approved by the Board of Directors, with additional shares distributed on January 3, 2025, and trading on a post-split basis began on January 6, 2025[36] - The stock split increased the number of authorized shares of Common Stock from 15 million to 30 million[37] Inventory and Receivables - Total inventories as of January 31, 2025, amounted to $55.231 million, a slight increase from $54.236 million as of July 31, 2024[62] - Inventory reserves were $3.6 million as of January 31, 2025, down from $3.8 million as of July 31, 2024[63] - The company experienced a decrease in accounts receivable by $4,424 thousand during the six months ended January 31, 2025, compared to a decrease of $64 thousand in 2024[27] Accounting and Compliance - The company has not adopted any new accounting pronouncements in the period[59] - The company is evaluating the impact of recently issued accounting standards on its disclosures[56] - Revenue is recognized when performance obligations are satisfied, with a recorded liability for advance payments of $0.1 million as of January 31, 2025[51] Legal and Regulatory Matters - The company believes that ongoing legal actions will not have a material adverse effect on its business or financial condition[72] Miscellaneous - The company incurred a loss on impairment of patent applications amounting to $49 thousand during the six months ended January 31, 2025[27] - Non-cash stock-based compensation for the six months ended January 31, 2025, was $2,542 thousand, slightly higher than $2,354 thousand in 2024[27]