Oil-Dri Corp. of America (NYSE:ODC) Q4 2019 Earnings Conference Call - Final Transcript

Oct 11, 2019 • 11:00 am ET

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Oil-Dri Corp. of America (NYSE:ODC) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] And our first question comes from John Bair from Ascend Wealth. Your line is open.

Analyst
John Bair

Thank you and good morning. Very nice summary here. Got a number of questions, but I'll go with. First one is, you indicated in the press release that your advertising expense is expected to be higher in fiscal 2020 versus '19. How does that relate to let's say your spending levels from '17 and 2018?

Executive
Daniel S. Jaffee

Sure. And then I can take the first part of it and then I'll turn it over to Jessica for the second part because I was running the division back in '17 and '18. It will -- still while it may be higher than '19, which it's going to be, it's going to be well [Indecipherable] of what we did when we first launched Fresh & Light and ramped up the advertising, but I'll Jessica or Susan?

Executive
Susan M. Kreh

Yeah. So this is Susan. I have been taking a look forward at our budget and Jessica can talk to you a little bit about what's in -- what we're going to use it for. We don't see the level in 2020 returning to the level that it was in '18. So it will be split somewhere between what we spent this year and what we spent then because we're doing it a little differently.

Executive
Jessica Moskowitz

So the key from an advertising perspective is just to obviously increase our ROIs and make our spend more efficient. So we're looking at tactics that have proven out to be more efficient like digital advertising, focusing on markets where we have high distribution like the Northeast and just overall looking at our marketing spend to make sure that is as efficient as possible.

Analyst
John Bair

Okay. It's very good. I got other questions, but I'll get back in the queue. Thanks.

Operator
Operator

Thank you.

Executive
Daniel S. Jaffee

I hope everyone saw that we are on Cat Week again this week. Today it will be the fifth and final day of Cat Week on Ellen. And once again brought you exclusively by Cat's Pride and they [Indecipherable] product into all sorts of fun integrations, if you've missed it, just go to the Ellentube.com and you can see all the relaunch. She's got them all out there on our website.

Operator
Operator

Thank you. And our next question comes from Ethan Starr, Private Investor. Your line is open.

Analyst
Ethan Starr

Good morning. Thank you for presenting at the Midwest IDEAS Conference in late August, I found the presentation very helpful. I would like to encourage you to present at the conference again next year. My first question is for Mike McPherson. On Page 18 of the Midwest IDEAS presentation, it states that "biological crop and plant protection is moving from liquids to granules and selected applications." What applications are shifting to granules? What's the time horizon for these shifts and how has and how will this benefit Oil-Dri?

Executive
Michael A. McPherson

Ethan, that's some of the detailed market information that we're not going to be comfortable disclosing on the call. There