Oil-Dri Corporation of America (ODC) has reported a 11.23 percent rise in profit for the quarter ended Jan. 31, 2017. The company has earned $4.25 million, or $0.58 a share in the quarter, compared with $3.82 million, or $0.53 a share for the same period last year.

Revenue during the quarter went down marginally by 0.30 percent to $65.17 million from $65.37 million in the previous year period. Gross margin for the quarter expanded 18 basis points over the previous year period to 29.34 percent. Total expenses were 91.43 percent of quarterly revenues, down from 91.74 percent for the same period last year. This has led to an improvement of 31 basis points in operating margin to 8.57 percent.

Operating income for the quarter was $5.59 million, compared with $5.40 million in the previous year period.

President and chief executive officer, Daniel S. Jaffee said, "Year to date, we are pleased with the continued expansion of the Company's gross margins as a result of our Amlan International animal health products, fluids purification products and lightweight cat litters. Our television advertising restarted in January which coincided with shipments of our Cat's Pride Fresh & Light Ultimate Care products featuring limited edition packaging highlighting our partnership with actress Katherine Heigl and the Jason Debus Heigl Foundation. In addition to the positive branded activity, we gained new distribution of our private label lightweight products. Our Business to Business products performed well in both periods. We received positive customer feedback on Varium, our new non-antibiotic growth promoting product for poultry. Pure-Flo bleaching clay products also achieved increased sales in the period."

The company has spent $4.45 million cash to meet investing activities during the first six months as against cash outgo of $17.45 million in the last year period.

The company has spent $5.78 million cash to carry out financing activities during the first six months as against cash outgo of $5.95 million in the last year period.

Cash and cash equivalents stood at $17.56 million as on Jan. 31, 2017, up 27 percent or $3.73 million from $13.83 million on Jan. 31, 2016.

Working capital increases marginally

Oil-Dri Corporation of America has recorded an increase in the working capital over the last year. It stood at $63.28 million as at Jan. 31, 2017, up 4.48 percent or $2.71 million from $60.57 million on Jan. 31, 2016. Current ratio was at 3.15 as on Jan. 31, 2017, up from 2.88 on Jan. 31, 2016.

Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 81 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 44 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding was almost stable at 7 days for the quarter, when compared with the previous year period.