Oil-Dri of America
Annual Report 2013

Plain-text annual report

Creating Value From Sorbent Minerals Letter to Stakeholders Fiscal 2013 Daniel S. Jaffee President & Chief Executive Officer What a great year 2013 was! Our strategic business units met or exceeded their plans for the year. Our sales of Cat’s Pride Fresh & Light grew by 59% during the fiscal year, further proving that consumers will flock to a product that delivers superior performance and the added benefit of all the volume with less weight to carry home. We are running our TV spots again this fall. If you haven’t seen them, I encourage you to follow the link below to watch them. Our bleaching earth and animal health businesses continued to grow, while our industrial, sports turf and agricultural products delivered solid earnings. We created informative sales videos for a couple of these businesses. You will find these videos through the same link below. During the fiscal year, we made great progress on our ten-year All-In-Quality initiative. We now have over 80 Gemba qualified teammates and are continuously improving our processes on a company-wide basis. We raised our dividend for the tenth consecutive year and saw our stock price rise 45% during the twelve months of fiscal 2013. The compounded annual total return to our stakeholders over the last ten years has exceeded 13%! The most exciting part of all of this is that we believe the best is yet to come. Thank you for being a loyal Oil-Dri stakeholder. We are doing our very best to Create Value from Sorbent Minerals. $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 Scan with a QR-Code reader or visit, http://vimeo.com/album/2572449 ODC Closing Stock Price Fiscal Years End July 31, 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Financial Highlights Fiscal Years End July 31, Key Metrics Dollar Amounts in Thousands Return on Average Total Assets Return on Average Stockholders’ Equity Cash, Cash Equivalents & Investments Cash, Cash Equivalents & Investments Less Notes Payable 2013 2012 2011 8.2% 15.5% $ $ 42,494 16,594 3.5% 6.8% 5.5% 9.7% $ $ 36,256 6,556 $ $ 33,722 422 Income Statement Data Dollar Amounts in Thousands Net Sales Income from Operations Net Income $ $ $ 250,583 18,871 14,586 $ $ $ 240,681 10,079 6,098 $ $ $ 226,755 13,709 9,051 $260,000 $245,000 $230,000 $215,000 $200,000 $ 2 5 0 5 8 3 , 2 0 1 3 $ 2 4 0 , 6 8 1 2 0 1 2 $ 2 2 6 , 7 5 5 2 0 1 1 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 $ 1 4 , 5 8 6 2 0 1 3 $ 9 , 0 5 1 2 0 1 1 $ 6 , 0 9 8 2 0 1 2 Net Sales Dollar Amounts in Thousands Net Income Dollar Amounts in Thousands Balance Sheet Data Dollar Amounts in Thousands Working Capital Total Assets Notes Payable Per Share Data Net Income per Diluted Share Book Value per Share Common Stock Price at July 31, $ $ $ 71,925 183,559 25,900 $ $ $ 66,080 174,267 29,700 $ $ $ 65,336 173,393 33,300 $ $ $ 2.07 14.96 31.86 $ $ $ 0.85 12.19 21.93 $ $ $ 1.26 13.63 20.69 Board of Directors Investor Inquiries Richard M. Jaffee Chairman Daniel S. Jaffee President & Chief Executive Officer Joseph C. Miller Vice Chairman, Independent Consultant J. Steven Cole President, Cole & Associates Michael A. Nemeroff President & Chief Executive Officer, Vedder Price P.C. Allan H. Selig Commissioner of Major League Baseball; President & Chairman, Selig Lease Co. Paul E. Suckow Business Fellow & Adjunct Professor, Finance & Economics, Villanova University Lawrence E. Washow Board Member, First Bauxite Corp. Board Member & Partner, Eudora Global, LLC Executive Officers Daniel S. Jaffee President & Chief Executive Officer Thomas F. Cofsky Vice President, Manufacturing Douglas A. Graham Vice President, General Counsel & Secretary Daniel T. Smith Vice President, Chief Financial Officer Paul D. Ziemnisky Vice President & General Manager Consumer Packaged Goods Annual Meeting On December 10, 2013 at 9:30 am CT, Oil-Dri Corporation of America will hold its 2013 Annual Meeting of Stockholders. Please join us: The Standard Club 320 South Plymouth Court Chicago, Illinois 60604 NYSE: ODC Please direct all investor relations inquiries to: Reagan B. Culbertson (312) 321-1515 info@oildri.com Oil-Dri Corporation of America Attention: Investor Relations 410 North Michigan Avenue Suite 400 Chicago, Illinois 60611-4213 www.oildri.com Stockholders with inquiries regarding stock transfers, change of ownership, change of address or dividend payments should contact the company’s registrar and transfer agent: Computershare Investor Services 2 North LaSalle Street Chicago, Illinois 60602-3711 (312) 360-5257 Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP Forward-Looking Statements Certain statements in this report, including, those under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and those statements elsewhere in this report and other documents we file with the Securities and Exchange Commission contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” variations of such words and similar expressions are intended to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially including, those described in Item 1A (Risk Factors) of this report and other documents we file with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected or planned. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions or otherwise. Cat’s Pride and Fresh & Light are registered trademarks of Oil-Dri Corporation of America. ©2013 Oil-Dri Corporation of America Oil-Dri Corporation of America Attention: Investor Relations 410 North Michigan Avenue, Suite 400 Chicago, Illinois 60611-4213 

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