Oil-Dri Corp. of America (NYSE:ODC) Q3 2019 Earnings Conference Call - Final Transcript

Jun 10, 2019 • 11:00 am ET

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Oil-Dri Corp. of America (NYSE:ODC) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Oil-Dri Corporation of America Q3 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will host a question-and-answer, and our instructions will be given at that time. (Operator Instructions) As a reminder, this conference call may be recorded for replay purposes.

It is now my pleasure to hand the conference over to Mr. Dan Jaffee, President and Chief Executive Officer. Sir, you may begin.

Executive
Daniel Jaffee

All right, thank you, and welcome everyone to our third quarter and nine months teleconference. With me in the conference room here in Chicago, Mike McPherson, our Chief Development Officer; Susan Kreh, CFO; Tony Parker, Assistant General Counsel; and Leslie Garber, who heads up our Investor Relations, and you're going to walk us through the Safe Harbor.

Executive
Leslie Garber

Thank you, Dan. Welcome, everyone. On today's call, comments may contain forward-looking statements regarding the company's performance in future periods. Actual results on those periods may materially differ. In our press release and our SEC filings, we highlight a number of important risk factors, trends and uncertainties that may affect our future performance. We ask that you review and consider those factors in evaluating the company's comments and in evaluating any investment in Oil-Dri stock. Thank you for joining us.

Executive
Daniel Jaffee

Great. Thanks, Leslie. And, as always, I'm going to turn it over to Susan to walk us through the details of the quarter, and then I'll add any color to her play-by-play.

Executive
Susan Kreh

Perfect. And I'm pleased to be able to share our third quarter results. We experienced some momentum during the quarter, with sales strengthening at a time when some of the year-over-year cost increases we have been experiencing are finally beginning to subside.

We reported sales of $70.9 million for the third quarter of fiscal '19, which was a 9% increase over the third quarter of fiscal '18. Sales in our Retail and Wholesale Products Group were up 12% in the quarter driven by a very strong 15% year-over-year growth in cat litter. In the quarter, we experienced strong demand for our Cat's Pride Scoopable branded litter, and we continued to experience strong demand in our lightweight private label products. During the third quarter, our unit share of the overall cat litter segment continued to grow, finding the 15.3% from 13.3% in the same quarter of last year.

Our Business to Business Products Group grew 5% over the same quarter of last year, reversing the trend in the previous two quarters where sales have been below prior year levels. We experienced 13% growth in Fluid Purification products primarily in our North and Latin American markets, where sales to edible oil producers were impacted favorably by the characteristics of recent crops. We also saw strength in sales of our engineered granules in our Agricultural sector.

Conversely, sales in our Animal Health business continued to be below last year's levels as our Amlan business in Asia continues to experience decreases driven by the widespread impact