NYSE$ODC

Oil-Dri Corporation of America · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Oil-Dri reported record fourth quarter net income and EPS, despite a decrease in net sales.

Oil-Dri Corporation of America announced its fourth quarter results for fiscal year 2020, which included a record quarterly net income attributable to Oil-Dri of $5.886 million, despite an 8% decrease in consolidated net sales compared to the prior year. The increase in net income was largely driven by a one-time pre-tax gain of $13 million from an intellectual property license agreement. The company's Retail and Wholesale Group experienced a 9% decrease in revenues, while the Business to Business Group saw a 5% decrease. However, e-commerce business experienced double-digit sales growth.

  • Net sales decreased by 8% compared to the previous year, totaling $64.844 million.
  • Net income attributable to Oil-Dri increased by 55% to $5.886 million, a quarterly record.
  • Earnings per common diluted share increased by 54% to $0.83.
  • The company entered into a confidential license agreement in exchange for a one-time lump sum payment which helped the fourth quarter results.

Headline financials

Total Revenue

$64.8M

Previous: $70.1M-7.5%
EPS (adj)

$0.83

Previous: $0.50+66.0%
Net Income

$5.88M

No prior period
Operating Income

$9.13M

No prior period
Cash & Equivalents

$40.9M

No prior period
Total Assets

$236M

No prior period

Revenue & EPS history

Oil-Dri · Revenue · Quarterly

$64.8M

Q4 2020-7.5%vs Q4 2019

Revenue by segment

Oil-Dri · $64.8M total across 2 segments · Q4 2020

  • Retail and Wholesale
    $38.2M-9.2%
  • Business to Business
    $26.6M-5.1%

Forward guidance

Oil-Dri anticipates that advertising costs for fiscal year 2021 will be comparable to fiscal year 2020 and that the company is positioned for a successful and healthy fiscal year 2021.

Tailwinds

  • Ongoing momentum in the combined net sales for the third and fourth quarters, reflecting a 7% increase over the same quarters in the prior year.
  • Double-digit sales growth for the e-commerce business in the fourth quarter compared to the same period last year.
  • Revenues from cat litter within the Canadian subsidiary demonstrated a 20% increase over the prior year.
  • Expect advertising costs for the upcoming fiscal 2021 to be comparable to fiscal 2020.
  • Company entered into an amended and restated note purchase and private shelf agreement, providing the ability to request additional financing in the future to grow the business, if needed.

Headwinds

  • Consolidated net sales in the fourth quarter declined by 8% compared to last year.
  • Weaker demand for products within all areas of the business, except for our animal health products, resulted in decrease in sales.
  • Sales of agricultural products declined by 10% versus the prior year due to COVID-19 related demand delays.
  • Sales of fluid purification products also declined this quarter by 6% compared to the fourth quarter in the prior year.
  • Industrial and sports products were negatively impacted by COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+1.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+4.2%

Avg return

30 days after

58%

32 / 55 earnings

Positive

+19.9%

Q3 2023

Best reaction

-17.1%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+18.4%+13.7%
Q2 2026+3.7%-5.1%+12.2%
Q1 2026-12.7%-4.4%-3.9%
Q4 2025+8.0%-0.5%-6.5%
Q3 2025+0.0%+1.5%+5.8%
Q2 2025+9.0%+6.9%-5.0%
Q1 2025+18.4%+28.0%+24.2%
Q4 2024+5.9%+4.8%+12.5%
Q3 2024-15.7%-13.8%-26.7%
Q2 2024-1.1%-0.0%-1.2%
Q1 2024+9.6%+16.7%+13.4%
Q4 2023-9.8%-6.9%-8.5%
Q3 2023+19.9%+27.6%+60.2%
Q2 2023+5.3%+4.4%+7.4%
Q1 2023+5.0%+3.1%+5.9%
Q4 2022+13.1%+18.0%+35.5%
Q3 2022+2.6%+8.6%+22.3%
Q2 2022-2.6%+4.1%-2.0%
Q1 2022+1.8%-1.0%+4.6%
Q4 2021+0.5%+0.4%+0.3%
Q3 2021-4.8%-6.2%-8.3%
Q2 2021+0.2%-1.1%-7.5%
Q1 2021+1.0%+4.3%+0.8%
Q4 2020-5.0%-2.2%-11.3%
Q3 2020-4.2%-8.6%-8.1%
Q2 2020+1.1%-0.6%+2.0%
Q1 2020+1.1%+5.5%-0.1%
Q4 2019+2.5%+1.8%+13.4%
Q3 2019+3.8%-1.0%+19.5%
Q2 2019-0.3%+10.4%+16.7%
Q1 2019-4.3%-5.0%-3.1%
Q4 2018-0.9%-12.9%-5.1%
Q3 2018-3.1%-7.1%-1.9%
Q2 2018+0.3%+4.5%+9.3%
Q1 2018+0.6%+0.7%-7.5%
Q4 2017-17.1%-17.4%-16.5%
Q3 2017+6.9%+13.1%+20.1%
Q2 2017+1.4%+6.6%+7.8%
Q1 2017+2.3%-0.6%-8.4%
Q4 2016-1.3%+1.1%-2.7%
Q3 2016+1.2%+4.8%+7.2%
Q2 2016-9.9%
Q1 2015+8.3%
Q3 2015-3.4%
Q2 2014+1.4%
Q4 2012-1.5%
Q2 2012+2.3%
Q1 2012-1.9%
Q4 2011+4.1%
Q3 2011+0.6%
Q2 2011-3.1%
Q1 2010-2.8%
Q4 2010-2.6%
Q3 2010-0.4%
Q2 2009+1.8%

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