NYSE$ODC

Oil-Dri Corporation of America · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth quarter and fiscal year 2021 results, marked by record high consolidated net sales for both periods, but profitability was greatly reduced due to significant cost inflation across all input channels.

Oil-Dri Corporation of America reported a 20% increase in net sales for the fourth quarter, reaching a record high of $78.13 million. However, net income attributable to Oil-Dri decreased by 90% to $603,000 compared to the prior year, primarily due to significant cost inflation across all input channels.

  • Consolidated net sales reached an all-time quarterly high of $78 million, a 20% increase over the prior year.
  • Net income attributable to Oil-Dri was $603,000, a 90% decrease from the prior year.
  • Gross profit margin decreased to 19% from 21% in the prior year due to increased cost of goods sold, freight, and packaging costs.
  • B2B Products Group revenues increased by 13% driven by strong growth in agricultural and fluid purification businesses, while R&W Products Group revenues increased by 26% due to higher cat litter sales.

Headline financials

Total Revenue

$78.1M

Previous: $64.8M+20.5%
EPS (adj)

$0.08

Previous: $0.83-90.4%
Gross Margin

19.0%

No prior period
Net Income

$557K

Previous: $5.88M-90.5%
Operating Income

$1.68M

Previous: $9.13M-81.6%
Gross Profit

$14.8M

No prior period
Cash & Equivalents

$24.6M

Previous: $40.9M-39.9%
Total Assets

$228M

Previous: $236M-3.5%

Revenue & EPS history

Oil-Dri · Revenue · Quarterly

$78.1M

Q4 2021+20.5%vs Q4 2020
Beat estimate in 1 of 1 quarters(100%)
ActualEstimate

Revenue by segment

Oil-Dri · $78.1M total across 2 segments · Q4 2021

  • Retail and Wholesale
    $48.1M+25.9%
  • Business to Business
    $30M+12.7%

Forward guidance

As we begin fiscal year 2022, we will continue to focus on developing our value-added businesses and enhancing profitability.

Tailwinds

  • Continue to push forward with our two biggest growth opportunities: mineral-based antibiotic alternative feed additives and lightweight cat litter.
  • Our animal health products are currently in several trials across the globe.
  • Consumer demand for our lightweight cat litter remains strong, and our branded and private label products continue to surpass category growth.
  • Our new Cat’s Pride UltraClean and Cat’s Pride Flushable items were recently launched.
  • E-commerce retailers have increased their Cat’s Pride product offerings, including some of our newly launched products.

Headwinds

  • Our profitability was greatly reduced due to significant cost inflation across all input channels.
  • Not only did the price of resin used in our jugs and pails spike, but higher lumber costs for pallets also contributed to the considerable increase in our overall packaging expenses.
  • Dramatic increases in freight, natural gas and other material costs also negatively impacted our margins.
  • It is clear we did not keep up with the rapid pace of inflation.
  • Our supply chain was challenged as a result of trucking and ocean carrier capacity constraints combined with a nationwide labor shortage.

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 2021

Historical avgQ4 2021

+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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