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EDITED TRANSCRIPT
ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
EVENT DATE/TIME: DECEMBER 09, 2013 / 04:00PM GMT
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
CORPORATE PARTICIPANTS
Dan Jaffee Oil-Dri Corporation of America - President, CEO
Doug Graham Oil-Dri Corporation of America - VP, General Counsel
Dan Smith Oil-Dri Corporation of America - VP, CFO
CONFERENCE CALL PARTICIPANTS
Ethan StarrPrivate Investor
Robert Smith Center for Performance Investing - Analyst
PRESENTATION
Operator
Good day, ladies and gentlemen, and welcome to the Quarter 1 2014 Oil-Dri Operation of America earnings conference call. My name is Kathy and I will be your
operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator
Instructions). As a reminder, this call is being recorded for replay purposes.
I would now like to turn the call over to Mr. Dan Jaffee, President and CEO. Please proceed, sir.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Thank you, Kathy, and welcome, everyone, to the first-quarter fiscal 2014 teleconference. With me today in the Chicago conference room is Dan Smith, our Vice
President and CFO, and Doug Graham, our Vice President and General Counsel. And Doug, you will walk us through the Safe Harbor?
Doug Graham - Oil-Dri Corporation of America - VP, General Counsel
Sure. 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 in 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. Now back to
Dan.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Great, thanks, Doug. And we will continue with our usual format. Dan Smith will walk us through the quarter, and then we will open it up to Q&A so that we handle
any issues that are topmost on your mind. So Dan?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Thanks, Dan. Good morning. Oil-Dri started off the year slowly. We were disappointed with the financial results for the first quarter. Sales were up about 3% to $63.5
million for the quarter. Our EPS was $0.41 per diluted share for the quarter, which was down from last year's record first quarter of $0.64.
Our retail wholesale team made key investments in marketing initiatives during the quarter. We are encouraged by a 34% sales increase in our Fresh & Light cat litter
products, but overall, our groups reported flat sales and increased spending.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Our advertising and promotional spending was up about $1.6 million in the quarter in an effort to drive branded cat litter sales growth in fiscal 2014. We also saw
increased packaging, materials, freight costs during the quarter as compared to last year. We continue to expect that our advertising and promotional spending for F14
will be greater than F13.
Our B2B group experienced solid sales growth of 10% versus the first quarter of last year. The group saw 2% income growth thanks to strong performance by our fluid
purification products. Animal health products also reported increased sales. The group's income growth was reduced by increased costs for packaging materials and
freight.
Our gross profit percentage was down to 26% from 28% reported in the first quarter of fiscal 2013. We saw a 36% increase in the cost of natural gas used in our
manufacturing processes, along with increased packaging material and freight costs that I just discussed.
Our balance sheet remains strong. Our cash and investment balances at the end of the quarter were about $33 million, which was down about $2.2 million from the first
quarter of fiscal 2013. The decrease was driven by our regularly-scheduled debt payments, capital expenditures, working capital changes and an $800,000 deposit we
made for a second-quarter asset acquisition.
On November 1, we invested approximately $13 million to acquire certain assets of the cat litter manufacturer MFM Industries Incorporated. The assets acquired
include customer lists, various product material inventories, specific equipment and some intellectual property. We are currently conducting the accounting valuation
process, but we believe the acquisition will be accretive to our earnings this fiscal year.
Finally, we continue our strong dividend payment to our stockholders, with approximately $1.2 million paid out during the quarter. Thanks. I will turn the meeting back
over to Dan Jaffee.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Great. Thanks, Dan. And Kathy, what we would like to do is open up the lines for Q&A and ask everyone to prioritize -- ask your most important question first and
then go back to the end of the queue, just to allow everybody who wants to get at least one question in the time to do so.
QUESTION AND ANSWER
Operator
(Operator Instructions). [Ethan Starr].
Ethan Starr Private Investor
Good morning. And I have to tell you it is a nice day when Oil-Dri earns $0.41 a share in a quarter and it's disappointing.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
I agree with you.
Ethan Starr Private Investor
So my question is this. How will the purchase of the MFM assets in Florida benefit Oil-Dri and why was the price so high?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Well, obviously, price should be driven by value, so you have got to hope that we are doing our valuation properly. And I can't remember the first part of your question.
What was the first part of your question?
Ethan Starr Private Investor
How will it benefit Oil-Dri?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
How will it benefit Oil-Dri? You know, it is allowing us to become a bigger partner with some major retailers. So they were supplying private-label to some major
manufacturers in the Southeast and even in the Midwest, and we are now assuming their position there. We were already selling most of these accounts some branded
material or a significant amount in some cases; in some cases, none at all. And this is now giving us a -- call it a bigger seat at the table.
And so we believe we will not only be able to lower their delivered cost of goods by utilizing our geographically dispersed plants, so we can actually improve their
profit picture on the business we acquired, but we also believe that we will be able to further grow our branded business, because you can co-load the products and there
is a lot of efficiencies of doing that. So that is really the two-pronged approach, and we believe there will be a good return on that investment.
Ethan Starr Private Investor
Okay. So have you already gotten -- the accounts that don't buy any branded products currently or at the time of acquisition, have you already gotten some in there or is
it still too early?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Still too early. Job one -- I mean, we closed on November 1 -- was really just to make sure we are satisfying the private-label orders so that we can make sure the
customers don't see any interruption. And then as we sit down with these accounts and we figure out exactly what the cost of goods scenario is going to look like, we
will be having some good business conversations with them.
Ethan Starr Private Investor
Okay. And will there be any goodwill or intangible assets added to the balance sheet as a result of the acquisition?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Ethan, we are too early in the process to answer that question. We have to go through a valuation model. We have outside consultants helping us with the valuation.
From an accounting perspective, the accounting is always harder than the legal side, so that will take some time.
Ethan Starr Private Investor
Okay. Thank you. I will get back in the queue.
Operator
Robert Smith, Center For Performance Investing.
Robert Smith - Center for Performance Investing - Analyst
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Good morning.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Hi, Bob.
Robert Smith - Center for Performance Investing - Analyst
I guess at my age, it is best to look at the brighter side. So I'd like to concentrate on animal health, Calibrin-A and -Z. Can you give me an idea as to where these
products are sold now as far as their use? And am I correct in assuming that the product is not sold for poultry and this is a new use?
Along the same lines, can you tell me what are the target countries for registration? And just educate me a little as to the registration process and how soon do you sell
(inaudible) or can you sell and (inaudible)? Thanks.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
We are selling into poultry in many countries, so that is good news already. We have Calibrin-A and -Z, and I know you are very interested in new products. We are
happy to announce that we are beginning registration on a new generation called Varium, which is all about gut health. It is more than just toxin (inaudible); it is getting
into the whole gut health aspect. And it is specifically targeted at launch for poultry, which is good. So we are in the registration process there.
A and Z are really registered globally in all the markets that we really intend to be doing business in. We have still got -- there is still some holes, but we don't have any
coverage there and so we really weren't looking to do any business there. Our goal now is to grow the business where it is registered, and the business is growing and it
is definitely something that we are focused on for the future.
Robert Smith - Center for Performance Investing - Analyst
So it is a new use there?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
What is a new use, the Varium, or --?
Robert Smith - Center for Performance Investing - Analyst
Yes.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Yes. I mean -- yes.
Robert Smith - Center for Performance Investing - Analyst
What differentiates it then? What does it do that the older products don't do?
Doug Graham - Oil-Dri Corporation of America - VP, General Counsel
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Well it's -- this is Doug -- it is focused on some specific diseases in poultry. As opposed to A and Z, it is focused on a particular disease condition, which we think is a
good market.
Robert Smith - Center for Performance Investing - Analyst
Okay. So what is the market potential for that specific disease -- or diseases? (multiple speakers) does it expand the market materially?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
We hope so.
Robert Smith - Center for Performance Investing - Analyst
Okay. Thanks much.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
All right, thank you.
Operator
Ethan Starr.
Ethan Starr Private Investor
Okay, it looks like it is back-and-forth between Bob and myself. By opening an office in China, will Oil-Dri eliminate the distributor or middleman and capture both
the wholesale and retail profit for itself?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
No, not really. I mean, what it will allow us to do is be more competitive, is collapse some of those layers and be more competitive. I don't think our goal is to
necessarily -- it is sort of a half and half. We should be able to capture a little bit more margin and we should be able to get more competitive.
So really what it allows us to do is invoice customers directly. That opens up some more risk; you have got credits, you have got things like that. But it allows us to deal
directly with the big players who are used to dealing directly. They don't buy through middlemen for the various reasons that their size, they can take full containers of
whatever it is they are buying, and there is no value in them for middlemen. They can be their own middleman.
So really that is the idea, that should allow us to sell directly to the bigger players.
Ethan Starr Private Investor
Okay. And the new product that Bob just asked about, the poultry thing, is that something that is not an antibiotic that will kind of try to replace an antibiotic product?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
It is not an antibiotic, and its initial launch is not necessarily to replace an antibiotic. We still have a lot more testing to do on that front. So I would just say it is not an
antibiotic and its targeted launch is not to replace an antibiotic.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Ethan Starr Private Investor
Okay. Are you working on anything that will hopefully replace an antibiotic?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Yes, I mean, we have talked about that in the past, and those trials are still going on and studies and so far so good. We still have more hurdles to clear, but at the
moment very positive. And as you know, definitely a global trend towards getting out of widespread antibiotic use. And so if you have a product that is even at parity
on performance, you are going to get a lot of business. Because they are not looking necessarily for improved performance; they are just trying to avoid the potential of
humans becoming resistant to antibiotics by it being in their food source.
So anyway, it is definitely a positive industry trend for a company like ours who doesn't make antibiotics.
Ethan Starr Private Investor
Sure. So those are two different products then?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Yes, at this -- yes.
Ethan Starr Private Investor
Okay. Great. And I get back in the queue or ask another question.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Go back in the queue. Let's see if either Bob or someone else has another question.
Ethan Starr Private Investor
Okay, thanks.
Operator
Robert Smith.
Robert Smith - Center for Performance Investing - Analyst
So again, back into animal health. So you said that B2B was up about 10%. How about animal health? Can you give us some color on animal health? Is it up? (multiple
speakers)
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Robert, we don't disclose product line information. We go down to our two operating segments.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Robert Smith - Center for Performance Investing - Analyst
Yes, well, did it do as well as the overall 10%?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
As I indicated in my comments, really the strong performance in fluid purification was the driver.
Robert Smith - Center for Performance Investing - Analyst
Okay. Margins being maintained?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
I believe so, yes.
Robert Smith - Center for Performance Investing - Analyst
Okay. The stock buyback, is there anything -- how much is left in the stock buyback?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
At least 0.25 million shares.
Robert Smith - Center for Performance Investing - Analyst
All right. I will get back in the queue.
Operator
Ethan Starr.
Ethan Starr Private Investor
Hello again.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
I'm glad you guys ask questions or we wouldn't have any questions. We'd be sitting here talking to ourselves. So Ethan, thank you.
Ethan Starr Private Investor
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Okay. Well, I try. Are you confident that Oil-Dri is getting good return on its marketing dollars for Cat's Pride Fresh & Light? And as you plan to spend more on Fresh
& Light marketing this year than last year, do you expect to increase the percentage of customers who have become repeat purchasers or is the goal solely to increase
trial?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
The goal is to increase trial. Our repeat is very, very strong, so I don't foresee that getting any stronger. It is strong enough where we win as we increase trial. So getting
trial is a big deal.
The good news with Fresh & Light is it is continuing to gain momentum. So if you look at the 52-week data -- IRI multi-outlet data, we did $28 million at retail and it
was up 24% over the prior year. So then if you look at the four-week period, it was up 31%.
So you see a faster-moving snowball, which is a good thing to see.
We are going to continue to spend behind it. We are going to continue to roll out new products along the Fresh & Light franchise, because the Light segment is
becoming bigger and bigger. We believe it is going to ultimately become THE segment, meaning everything should be light -- no one wants heavy. And so if you can
get performance and price commensurate with whatever it is you value and get lightweight, we don't believe anyone would choose to just say I would rather carry home
more weight.
So we are excited that other manufacturers are jumping in, validating the light segment. And we believe and are testing shows we have the best light product by far.
And so as light grows, we win, and so this has been good for Oil-Dri.
Ethan Starr Private Investor
Okay, but do you see -- so you are happy with the return you are getting on your marketing dollars for Fresh & Light?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Very happy, yes.
Ethan Starr Private Investor
So it really -- could it go up more, the return?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Absolutely.
Ethan Starr Private Investor
Okay. This question you may not want to answer, but can you give us an idea of your cash balance today, post -- after spending almost $13 million?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Yes, we will wait until we report the numbers for the quarter, Ethan.
Ethan Starr Private Investor
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Okay, that's fine. And in line with that, any plans to borrow any money soon?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
We will continue to evaluate our options as necessary, based on interest rates and availability of credit and what we need.
Ethan Starr Private Investor
Okay. Can you discuss a little bit the plant expansion in Ochlocknee, Georgia regarding fluids purification products?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Just that it is a further validation of the growth and our future outlooks on that business. So it's -- that is a high-growth business for us, good, healthy margins, and so
should have a good return.
Ethan Starr Private Investor
How much additional capacity in terms of dollars will the added capacity allow you to bring in as far as revenue goes, if it is all used up?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
I think that gets into forward-looking projections and all that, so I am seeing a lot of shaking heads no. So I am not going to get into that, but it is going to allow us to
continue to support the growth of that business.
Ethan Starr Private Investor
Okay. I will get back in the queue.
Operator
Robert Smith.
Robert Smith - Center for Performance Investing - Analyst
So is there any seasonality in animal health?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
I am going to say none that I know of. People pretty much eat year-round.
Robert Smith - Center for Performance Investing - Analyst
Okay. So based on your first-quarter report, are you guys redrawing your annual budgets? It seems that the surprise was probably more on the top line. I would think
that the increased costs were factored in in your annual plan, although I am not sure on the natural gas price situation. So how much incremental cost did you factor in
from natural gas in the first quarter?
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
You asked a couple different question. So let me take the first one. I'm not even sure I am going to get to the second one. But the first one was all about -- we are pretty
much on plan, right. I mean, just because we are down versus last year --.
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Robert, what we do is every year about the six-month point is we reevaluate our budget and where we think we are going to be. So that is a very formal process. After
the first quarter, we don't sit down and revalue our budget.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
So how did we do against plan? We were pretty much on plan. It pretty much came in the way we thought it was going to come in.
Robert Smith - Center for Performance Investing - Analyst
Yes, but you said you were disappointed. So that how does that (inaudible)?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Well, you don't put plans in the bank. So if I plan to be down and I hit my plan, you are going to be happy? I am not. Using a football analogy, if I plan to go 4 and 12,
and then I go 4 and 12, do you think I am keeping my job?
Robert Smith - Center for Performance Investing - Analyst
Well, it depends. I mean, you draw up your plans for accuracy, don't you? (multiple speakers) So if you are on plan, why would you be disappointed?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
All right. Well, you and I look at it differently. I look at it actual. Actual to actual. You put actual in the bank. I don't put plans in the bank.
To me, so when somebody plans to be down, that just tells them then you better redouble your efforts, because being down is not acceptable. So that is fine; you and I
just approach it differently.
Robert Smith - Center for Performance Investing - Analyst
Okay. I just -- it's a question of semantics, I guess. I don't know. (multiple speakers) How much did natural gas go up in the quarter, quarter on quarter?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
36%, Robert. Quarter to quarter.
Robert Smith - Center for Performance Investing - Analyst
All right.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Dan Smith - Oil-Dri Corporation of America - VP, CFO
That is used in our kiln seal process.
Robert Smith - Center for Performance Investing - Analyst
Okay. Well, I hope you come into New York in February. I'd love to see you.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
All right, well, thank you. I appreciate you coming to the Boston presentation.
Robert Smith - Center for Performance Investing - Analyst
Thanks and good luck.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Thank you.
Operator
Ethan Starr.
Ethan Starr Private Investor
Yes, I am wondering about the foreign subsidiaries, Canada and the UK, and will they ever become profitable?
Dan Smith - Oil-Dri Corporation of America - VP, CFO
Right now, Ethan, they are pretty small in terms of order of priority. So we are focusing on integration of an acquisition, the asset acquisition and expansion of our
capacities. So I think that is where our primary focus is.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Yes, and UK has been able to sell some of the higher-value products, which has been good for the UK. I just talked to the guy who runs Canada this morning and we
have still got a lot of plans for Canada. It has just been a matter of prioritizing -- where do we spend our time, money and focus.
So ever, ever is a long time. I will take that bet, yes, they will at some point n hopefully in our lifetimes be profitable. I'm willing to go on that one.
Ethan Starr Private Investor
Okay. I mean, I am not in any rush. You have your priorities and I trust you to focus on the priorities that are most important, so that doesn't bother me at all. How are
sports field products doing?
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Sports field products are doing well. We are continuing to expand, and it is not a hugely material to the Company, but it is sort of a highly visible thing. And so it is
important to us; it is just financially it is not material. But they are doing well.
Ethan Starr Private Investor
Sure. How about floor absorbents?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Same deal. I would say people -- manufacturing has spent the last 25 years either not manufacturing and offshoring it or trying to reduce how much they spill in the
first place. And so those two things have led to a slightly declining market over time, and 20 years later, you have got a smaller market.
But there has been some consolidation in our industry. Where there used to be three players, now number 2 bought -- actually, number 3 bought number 2 and became 2
-- or actually probably even became 1. They probably leapfrogged over us. And so you have really only got two players now in the floor absorbent business, and so it is
doing fine.
Ethan Starr Private Investor
Okay, by number 3 acquiring number 2, are you referring to Eagle-Picher acquiring Moltan?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
You got it.
Ethan Starr Private Investor
Okay. And you didn't consider buying that?
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
We were in the process. We didn't really get outbid; it was more deal structure. We would have done a similar thing like we did with Mid-Florida Mining. We don't
really need the capacity. We just want to (multiple speakers).
These guys actually needed the capacity, so they were willing to take on the plant and all the employees and all the reclamation and all that kind of stuff. So their bid
looked better than ours.
Ethan Starr Private Investor
Oh, that is understandable. I mean, I assume the sellers didn't want to put their employees out of work.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
That is true.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Ethan Starr Private Investor
Okay. Well, I thank you very much. I look forward to next quarter.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Okay, thanks, Ethan.
Operator
Thank you for your question. I would now like to turn the call over to Dan Jaffee for closing remarks.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Okay, thank you. Yes, I will put a little bit of color on the disappointed comment. Anytime you are down, you are disappointed. Now, having said that, in our 74-year
history, this quarter was the second-best first quarter we have ever had. It just so happened it wasn't as good as last year's first quarter, which was the best first quarter
we ever had.
So I just thought it would be imprudent to say, oh, we are ecstatic with this quarter, knowing that we are down 36%. That just seemed a little crazy. Certainly as a value
investor, it was a very good quarter. We made a lot of money, we did a lot of good things strategically to help us continue to make investments for the future and plan
for the future. So that is all good news. If you were only looking at the quarter itself, you can't help but own up to the fact you were down 36% versus the prior year, and
we were.
So let's see how the whole year plays out. And we are still very confident for both the short-term, which for us is maybe a year, and the midterm, which is about five
years, and the long-term, which is about 10 years. So those are sort of the horizons we look at, and we are still confident on all three fronts.
So as we have said over and over and over again, and it is probably worth repeating here, we will not knowingly do something in the short run to sacrifice our long-term
benefit. We may do it because we screw up, but we're not going to do it on purpose.
We will, though, knowingly hurt short-term results if we believe it benefits the long-term. So we will make investments and -- we will spend -- do investment spending,
make acquisitions, do things we need to do in the short run, which may or may not help the immediate results, if we believe that they are going to help us in the longterm. Again, we may get proven wrong on that front too. But like I said, knowingly. We wouldn't knowingly sacrifice the future to make a short-term goal, because we
don't give you any goal, so there is no reason to do it, and so that is the deal.
Doug, you have one more thing?
Doug Graham - Oil-Dri Corporation of America - VP, General Counsel
Just the housekeeping item about the annual meeting coming up.
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Okay. Why don't you cover that?
Doug Graham - Oil-Dri Corporation of America - VP, General Counsel
Just as a reminder, the upcoming annual meeting is Tuesday, December 10, starting at 9:30 AM Central time in the Standard Club in Chicago.
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DECEMBER 09, 2013 / 04:00PM GMT, ODC - Q1 2014 Oil-Dri Corporation of America Earnings
Conference Call
Dan Jaffee - Oil-Dri Corporation of America - President, CEO
Great. We hope some or all of you can be there, and if not, we will be back at you at the end of the second quarter. So thanks very much.
Operator
Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.
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