Oil-Dri of America(US:ODC)2025-12-08 21:08Financial Performance - Net sales for the three months ended October 31, 2025, were $120.486 million, a decrease of 5.7% compared to $127.945 million for the same period in 2024[15] - Gross profit for the same period was $35.495 million, down 13.5% from $40.780 million year-over-year[15] - Net income for the three months ended October 31, 2025, was $15.456 million, a decline of 5.6% compared to $16.376 million in the prior year[15] - Earnings per share for common stock were $1.14 for the three months ended October 31, 2025, compared to $1.21 for the same period in 2024, reflecting a decrease of 5.8%[15] - Operating income for the three months ended October 31, 2025, was $26.033 million, down from $30.487 million in the prior year[80] - The Business to Business Products Group reported net sales of $44,286,000 for the three months ended October 31, 2025, down from $48,415,000 in 2024, a decrease of 4.7%[80] - The Retail and Wholesale Products Group achieved net sales of $76,200,000 for the three months ended October 31, 2025, compared to $79,530,000 in 2024, a decline of 4.4%[80] Assets and Liabilities - Total assets as of October 31, 2025, were $380.723 million, down from $391.677 million as of July 31, 2025, representing a decrease of 2.4%[11] - Total liabilities decreased to $114.196 million as of October 31, 2025, from $132.617 million as of July 31, 2025, a reduction of 13.9%[14] - Stockholders' equity increased to $266.527 million as of October 31, 2025, compared to $259.060 million as of July 31, 2025, an increase of 2.9%[14] - Cash and cash equivalents at the end of the period totaled $42,384,000, an increase from $13,506,000 year-over-year[25] - Cash equivalents decreased to $28.6 million as of October 31, 2025, down from $35.3 million as of July 31, 2025[59] - The estimated fair value of debt was $40.8 million as of October 31, 2025, slightly up from $40.3 million as of July 31, 2025[61] Dividends and Shareholder Returns - Dividends declared per share for common stock increased to $0.180 from $0.155 year-over-year, reflecting a growth of 16.1%[15] - Dividends paid during the period amounted to $2,444,000, an increase of 16.6% from $2,096,000 in the previous year[22] - The company declared dividends of $0.180 per share for Common Stock and $0.135 per share for Class B Stock for the three months ended October 31, 2025[15] Cash Flow and Expenditures - Net cash provided by operating activities was $10,349,000, down from $10,919,000, reflecting a decrease of 5.2%[22] - Capital expenditures for the period were $9,066,000, a reduction of 29.5% compared to $12,817,000 in the previous year[22] - The company experienced a net decrease in cash and cash equivalents of $8,074 thousand for the three months ended October 31, 2025, compared to a decrease of $10,975 thousand in the same period of 2024[22] Stock and Compensation - Average shares outstanding for diluted common stock increased to 13.927 million for the three months ended October 31, 2025, compared to 13.811 million in the prior year[15] - Stock-based compensation expense increased to $1.1 million for the three months ended October 31, 2025, from $0.9 million in the same period of 2024[84] - The total number of non-vested restricted stock outstanding as of October 31, 2025, was 611,000 shares, with a weighted average grant date fair value of $33.31 per share[85] Inventory and Receivables - Accounts receivable as of October 31, 2025, was $66,500,000, compared to $62,200,000 as of July 31, 2024, indicating a year-over-year increase of 7.4%[35] - Total inventories increased to $56.645 million as of October 31, 2025, compared to $51.594 million as of July 31, 2025, with finished goods valued at $32.214 million[58] Operating Segments and Expenses - Selling, general and administrative expenses (SG&A) include various costs such as salaries, marketing, and research and development, impacting overall profitability[48] - The company has two reportable operating segments: Retail and Wholesale Products Group, and Business to Business Products Group, with distinct customer bases and product offerings[77] Accounting and Compliance - The company is currently evaluating the impact of recently issued accounting standards on its financial disclosures, including ASU No. 2023-09 and ASU No. 2024-03[51][52] - The company has adopted new accounting standards requiring enhanced disclosures about significant segment expenses and income tax information[50][51]