Oil-Dri Corporation of America (ODC) swung to a net profit for the quarter ended Apr. 30, 2017. The company has made a net profit of $3.21 million, or $ 0.44 a share in the quarter, against a net loss of $0.89 million, or $0.13 a share in the last year period.

Revenue during the quarter went up marginally by 0.79 percent to $64.74 million from $64.24 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 27.46 percent. Operating margin for the quarter period stood at positive 5.79 percent as compared to a negative 1.92 percent for the previous year period.

Operating income for the quarter was $3.75 million, compared with an operating loss of $1.24 million in the previous year period.

President and chief executive officer , Daniel S. Jaffee said, "While sales were sluggish in the quarter and nine-month periods, our profits continue to improve. Our Business-to-Business products showed top line and bottom line growth in both periods. In the Retail and Wholesale segment, advertising expenses were substantially reduced compared to expenses in the third quarter of fiscal 2016. This was due in large part to a strategic shift away from mass media towards targeted trade promotions throughout the balance of the year. Year over year, we experienced a nearly 17% increase in Cash and Investments. This increase is attributed to the increase of income over the nine-month period. While combined sales of all of our branded products were down in both periods, we have gained a larger share of the private label lightweight litter segment. According to the same third party market research data, our private label retail sales were up approximately 43% for the latest 52-week period and 107% for the latest 12-week period."

The company has spent $18.86 million cash to meet investing activities during the nine month period as against cash outgo of $15.09 million in the last year period.

The company has spent $7.26 million cash to carry out financing activities during the nine month period as against cash outgo of $7.34 million in the last year period.

Cash and cash equivalents stood at $13.60 million as on Apr. 30, 2017, down 20.89 percent or $3.59 million from $17.19 million on Apr. 30, 2016.

Working capital increases

Oil-Dri Corporation of America has recorded an increase in the working capital over the last year. It stood at $65.31 million as at Apr. 30, 2017, up 10.13 percent or $6.01 million from $59.30 million on Apr. 30, 2016. Current ratio was at 2.99 as on Apr. 30, 2017, up from 2.93 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 58 days for the quarter from 83 days for the last year period. Days sales outstanding went up to 43 days for the quarter compared with 42 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went up to 8 days for the quarter from 6 for the same period last year.