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Edited Transcript of ODC earnings conference call or presentation 11-Dec-17 4:00pm GMT

Q1 2018 Oil-Dri Corporation of America Earnings Call

CHICAGO Dec 13, 2017 (Thomson StreetEvents) -- Edited Transcript of Oil-Dri Corporation of America earnings conference call or presentation Monday, December 11, 2017 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Daniel S. Jaffee

Oil-Dri Corporation of America - CEO, President & Director

* Daniel T. Smith

Oil-Dri Corporation of America - CFO & VP

* Mark E. Lewry

Oil-Dri Corporation of America - COO

* Michael Andrew McPherson

Oil-Dri Corporation of America - Chief Development Officer

* Reagan Culbertson

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Conference Call Participants

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* John Bair

* Robert Smith

* Ethan Starr

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Presentation

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Operator [1]

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Good day, ladies and gentlemen, and welcome to the Oil-Dri Corporation of America's Q1 2018 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. Dan Jaffee, President and CEO. Sir, you may begin.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [2]

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Thank you, Chelsea, and welcome, everyone, to our first quarter investor teleconference. And with me in the conference room here is Mike McPherson, our Chief Development Officer and Group VP of our B2B Division; Dan Smith, Chief Financial Officer; Mark Lewry, Chief Operating Officer; Doug Graham, VP and General Counsel; and Reagan Culbertson who handles many roles, including all of our Investor Relations and our safe harbor.

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Reagan Culbertson, [3]

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Thanks, Dan. 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.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [4]

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Thanks, Reagan. And at this time, I'll turn it over to Dan Smith for a review of the quarter.

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Daniel T. Smith, Oil-Dri Corporation of America - CFO & VP [5]

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Good. Good morning, everyone. Oil-Dri reported sales of $66.6 million in the first quarter of both fiscal '18 and fiscal '17. Digging deeper, we saw a minor increase in our Retail and Wholesale team sales, which was offset by a small decline in our B2B team sales.

Earnings per share of $0.41 per diluted share for the quarter was 46% higher than the $0.28 we earned in the first quarter fiscal '17.

The main driver of improved earnings was reduced spending, primarily in advertising expense for our consumer products. Our gross margin percentage was about 28.5% for the first quarter of '18. This was down from the 31% reported in the same quarter in fiscal '17. However, as we anticipated, our gross margin percentage did increase from the 24% generated in the fourth quarter fiscal '17. It was also slightly better than the 28% we reported for the full year of fiscal '17.

Since the first quarter fiscal '17, we've experienced increased fuel, manufacturing, packaging costs, all which helped to reduce our gross margin percentage.

Our Retail, Wholesale team had a small sales increase, which helped generate a profit of about $2.4 million for the first quarter fiscal '18. In comparison, the team had previously generated a loss of about $500,000 in the first quarter of '17.

While total cat litter sales were flat with last year, we did see a nice increase in our private label lightweight sales. We also generated about 3% more industrial product sales in the first quarter of '17.

Overall, the profit increase was driven by the lower advertising spend that I mentioned earlier. And the spending decrease was partially offset by our fuel, manufacturing and packaging costs. We currently expect our total advertising spend for fiscal '18 to be similar to full year fiscal '17.

Sales of our B2B team were down slightly for the quarter as compared to the first quarter '17. We experienced a sales decline in China for our animal health products. The decline was driven by the merger of 2 existing customers and possibly some weakness in the Chinese poultry market.

Profitability was down for the quarter as compared to the first quarter of '17. The same cost factors discussed earlier impacted the business in this segment also.

From a balance sheet perspective, our total assets were over $200 million and our debt is down to $9.2 million. Our cash and investment balances usually dip in the first quarter due to bonus and debt payments, and this year was no exception. However, these balances when compared to the first quarter of fiscal '17 were up over 20% and were substantially in excess of our $9.2 million of debt.

Finally, in prep for tomorrow's meeting, I want to highlight our tons sold for fiscal '17 and fiscal '16. We had about 767,000 tons sold in fiscal '17 compared to 795,000 tons sold in fiscal '16. For those of you who missed my slides, you get to see -- or for those of you there tomorrow, you get to see that on my slides, but I wanted to highlight it within the call today.

Thanks. I'll turn the meeting back over to Dan Jaffee.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [6]

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Thank you, Dan. And Chelsea, at this time, we'll open it up for Q&A. (Operator Instructions) I will say, we did get good feedback. And you'll see, we did a news release because we were going to sort of get out of it, but then a lot of you guys like them, so we kept it. And I hope you like the new format. It was easier for us to do. And hopefully, it was informative.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our first question comes from the line of Ethan Starr, a private investor.

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Ethan Starr, [2]

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It was a pleasant surprise to see the earnings release. I was glad to know you listened to your investors for a change. Back in the second quarter teleconference, you mentioned a customer who'll do a 6-month trial of an Oil-Dri animal health product versus antibiotics. I'm wondering what the results of the trial were and has led to improved or increased sales at all.

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Daniel T. Smith, Oil-Dri Corporation of America - CFO & VP [3]

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No, it hasn't resulted in an increased sales from that customer. Although the trial was successful, they subsequently made changes in their production operation that were unrelated to our product that ultimately affected the performance of not only our product, but every other product that was tested. So that company now is back in the research mode looking for new alternatives that work in light of their new production environment.

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Ethan Starr, [4]

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Okay. So it was successful -- the Oil-Dri product was deemed successful, but it didn't -- okay, but it didn't result in more sales. Interesting. I'll get back in the queue.

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Operator [5]

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(Operator Instructions) And our next question comes from the line of Robert Smith with Center for.

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Robert Smith, [6]

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I just want -- before I ask my question, I just wanted a housekeeping question here. So when you say that the total advertising spend is going to be similar to the prior year, does that mean that you're going to essentially make up the $3 million in the 9 months?

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Daniel T. Smith, Oil-Dri Corporation of America - CFO & VP [7]

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I would say that's a fair assumption, Ethan -- Robert, sorry.

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Robert Smith, [8]

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Okay. So my question then, maybe Mike can speak to that, is I'm kind of disappointed in the China experience because I thought the runway was so large that you'd have a really serial increase in sales and income from that geography. So maybe you can just give me a little color on that.

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [9]

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I think long term, the prognosis still looks fine. It was really just the timing of this one account. Our China business focuses on acquiring large direct accounts, so large producers of pigs, large producers of poultry. And it was simply a timing issue. We lost this account due to a merger between 2 customers before we were able to obtain our next large account. So I think, overall, the sales development and market development prognosis looks good. This is just a short-term timing impact from losing this one account.

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Robert Smith, [10]

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So everything away from these -- the loss of this account show -- continues to show gains?

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [11]

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Yes. Everything else is positive in general in terms of our ability to acquire new customers. It was just this company that used to make its own feed and use our products now is getting feed made for them by the company that acquired them who doesn't use our product. It was a very, very large account. That's why there was this short-term hit.

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Robert Smith, [12]

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So are you trying to pitch to them?

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [13]

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Of course. That was the first thing we did. Yes.

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Operator [14]

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(Operator Instructions) And we do have a follow-up question from the line of Ethan Starr, a private investor.

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Ethan Starr, [15]

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Yes. I wonder if there are more opportunities to trim costs and save money by improving the consumer manufacturing and processing lines in the factories. I think it was mentioned briefly in the Q4 release that there are plans to do that in fiscal '18. Could you speak a little bit about that?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [16]

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Hold on.

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Mark E. Lewry, Oil-Dri Corporation of America - COO [17]

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Good morning, Ethan. This is Mark Lewry. Yes, we continue to use data to drive performance. And last year, we had an OEE metric, which was on all our packaging lines. We're expanding that actually to a broader measure to go upstream and downstream this year, and we continue to see progress and improvement in our packaging efficiencies.

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Ethan Starr, [18]

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Okay. But is that your data measurement or are you actually putting in CapEx, spending money to improve the lines with new equipment?

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Mark E. Lewry, Oil-Dri Corporation of America - COO [19]

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We're doing both. I mean, we're capturing the data, so we can understand where our downtime is and then investing to improve.

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Ethan Starr, [20]

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Okay. So hopefully downtime has been reduced.

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Mark E. Lewry, Oil-Dri Corporation of America - COO [21]

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It is.

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Operator [22]

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And we have a follow-up question from the line of Robert Smith with Center for.

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Robert Smith, [23]

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So can we hear some metrics on Fresh & Light in the first quarter?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [24]

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No. No, I'm just kidding. Really, where I wanted to go, and so I'm going to take this chance, use your question and talk about what I want to talk about, which I think is very exciting, is we kind of touched on a little bit in the news release but we're ready to unveil it bigger. We're going to be -- for those of you at the Annual Meeting tomorrow, you'll see it in full color -- technicolor, which is our marketing program for 2018 and beyond. We're calling it litter for good. We have been donating cat litter to shelters on an ad hoc basis for 25 years, basically, if we either had a relationship with them or they were in a town where we were -- we had a plant or if they actually just called up and said, "Do you have any litter? We would take off-spec or old packaging or whatever. If you have litter sitting somewhere in the warehouse, we'll take it." And we started thinking about how can we make this into a real program where the consumers can participate and show us that they're as passionate about animal advocacy as we are. And we created what's called litter for good. And we filmed the new commercials and really a micro-video that's going to go on a website. It's a 3-minute video that sort of explains it. And basically, the nuts and bolts of the program are this: a consumer can sign up for free on the catspride.com website and then -- to join our club and then nominate their local shelter to receive free litter. If they don't see their local shelter, there's a point where they can -- if they don't see it in the drop-down, they can just do a write-in and then we'll get them nominated. And then we're going to accumulate all those votes. And for every jug of Fresh & Light we sell, every green jug, we're going to donate 1 pound of free litter to a shelter across America on a pro rata basis with those votes. The beauty of the program is that -- I've been on the board of the Anti-Cruelty Society, which is the largest shelter here in the Midwest, for the last 20 years. And I know what a big expense cat litter is to a shelter that by getting free litter, that frees up dollars for them to do all the things they need to do to try and save cats' lives. You may not know this, but every year, 3.2 million cats go into shelters in the United States and only 1.6 million get adopted. So that's a grim reality for the other 1.6 million. And so the goal from Oil-Dri standpoint is to save more cats and to do more on spay and neuter; trap, neuter and release. There's all sort of programs that take a lot of money. The feral cat population is a big problem, and so that's the trap, neuter and release program. But these all take a lot of money, and these shelters are on limited budget. So in my interactions with Anti-Cruelty and traveling around the U.S., I've talked to numerous shelters and they've all said, yes, you send us an email -- an email is actually going to come from Katherine Heigl to these shelters. We have a database of over 2,000 -- the 2,000 largest shelters in the United States and their donor base. You're talking millions now of donors. They're going to receive this email blast and communication package, and we have a full-time shelter manager now onboard. And they're going to take that and then pump it out to their donor base and say, look, nominate us and start buying the green jug. We want free litter. And we believe that this is going to be a very powerful program, but it's going to be up to the U.S. consumer base to agree or disagree with us. But the beauty of this program is they're going to be getting the best cat litter, not just lightweight litter but the best litter. We just completed an in-home use test where we performed at parity with what is perceived as the market leader in one metric, but then I'll beat them in a whole number of other things, so -- at a better price. So the consumer really gets a win-win. But then every time they buy a green jug, we donate a pound. If they buy a green box, which is bigger, we donate 2 pounds. We're actually going to be partnering with retailers. And so during specific periods, if you buy a green jug at a specific retailer, we'll double the donation. We're going to be integrating again with ABC, and we're not going to divulge that yet. But when we do, during that 3-week integration, we'll be doing double donations. And they'll be announcing it and all that kind of stuff. So we believe this has the chance to really do 2 things, number one -- 3 things: number one, go viral; number two, increase our bang for our buck rather than just spending a lot of money on TV, which is very expensive and not all that efficient when only 1/3 of the consumers own a cat, so 2/3 of the people that see that commercial have no interest in what you're saying; and then the third thing is to really go out and save cats. That's the most important part of the program, to save these shelter cats and actually to prevent them being born in the first place in the feral -- the trap, neuter and release program is to stop the mass proliferation of feral cats. And so we believe this has the power to be very powerful -- the ability to be very powerful because consumers who have a passion around cats are most likely to be those consumers who are already donating to a shelter in their neighborhood. And when they receive this email from their shelter and Katherine Heigl encouraging them to get involved and to do this and they realize it's not going to cost them any more money to do it, all they have to do is switch cat litters. We believe it has the chance to be very big.

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Robert Smith, [25]

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So yes, so Dan, have you lost market share in the first quarter in Fresh & Light?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [26]

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Again, Bob, I'm not going there. I'm not driving into the rearview mirror. I could get you the IRI data. It's public. And I'm sure somebody could get it for you. We're not -- we're doing...

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Robert Smith, [27]

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You've always commented on it in the past, so that's why I'm asking.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [28]

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I'm fine and I'm not today. So thank you. I'm not prepared for that, and I'm not answering that question. I'm looking forward. I'm very excited about 2018.

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Robert Smith, [29]

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So you don't think there's a stall?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [30]

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I have no comment.

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Robert Smith, [31]

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Well, your comment was that you're optimistic about the year. So I guess, you aren't.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [32]

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You can draw from it whatever conclusion you want, Bob. Thank you.

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Operator [33]

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And our next question comes from the line of John Bair with Ascend Wealth Advisors.

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John Bair, [34]

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My question was going to be if you could give us some updates on the relationship with the Heigl Foundation. And you kind of touched on that, I guess, on your last outlook for '18. But can you elaborate a little bit more as far as it sounds like this relationship is going to continue for some time going forward.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [35]

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Sure. Yes. Certainly continuing through all of 2018, and the relationship is fantastic. If it goes on beyond that, great. And if it doesn't, it's not an indication that it isn't great. It's just the matter of where we're going to allocate our money and where they're going to allocate their time, but we're both passionate animal advocates. And frankly, we both have a great personal relationship. I mean, we really -- Nancy and Katie Heigl are fantastic to work with. And I think they've really enjoyed their relationship with us. So it's a great partnership. And again, just recently, Katie said, yes, you can send the email out under my name because they knew showing up at a shelter coming from Dan Jaffee, what that's going to mean, especially since I'm the business owner. But coming from Katherine Heigl, that's a different story. So she was more than happy to allow that to occur. So it's a great relationship.

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John Bair, [36]

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So do you think that this effort for '18 is something that would continue -- I mean, is it a 1-year program at this point with evaluation and deciding whether you go forward with it again in another year? Is that kind of how we should look at this?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [37]

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It's not how I'm looking at it, but certainly, that's the reality of it. The reality of it is, sure, any program needs to be evaluated and monitored for its success. But we've been donating litter to shelter for 25 years. So this is just sort of systematizing it and getting the consumer involved. But we'll be donating litter until our last day in business is my guess. We've always done it. We feel like it's a good thing to do. We do love animals, and so it's a nice way of giving back. But I would look at it from your perspective, this is how I'm looking at it. We have, what, a 2.5 share on Cat's Pride Fresh & Light branded nationally. So you do this program, is it likely to hurt your share? Is it going to go down? Well, there's not a lot of downside. I mean, honestly, I mean, I can't imagine someone seeing all this and saying, "Boy, I hate these guys. I've been buying this litter for years, and I'm not going to buy it anymore." Really, what we have is a mass awareness problem. When we do our research, 50%, 60% of the consumers have never even heard of us. They just don't see it. They just see the brand blocks that they're used to seeing, Fresh Step, ARM & HAMMER, Tidy Cats, and they don't even see us. It's not like they've tried us and don't like us or they've evaluated our proposition and it doesn't resonate with them. They haven't even seen us. So this is going to get us awareness and trial, we believe. And we believe there's way more upside, meaning we can grow greater than 2 to 2.5 is a greater chance than dropping. And we believe that the expense behind it is going to have a way higher ROI than if you take, look, you can take it, you can take our media cost and divide it by the number of green jugs we were selling in the last couple of years, and you'll see a big number per jug. I mean, a big number per jug. So we believe this is going to be a much smaller number per jug and give the opportunity to dramatically increase the jugs sold. So to me, win-win. Very excited about 2018.

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Operator [38]

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And our next question is a follow-up question from Ethan Starr, a private investor.

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Ethan Starr, [39]

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Yes. I'm wondering if clay has any possible uses to inhibit food spoilage?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [40]

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I mean, not that I know of. No, you mentioned...

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Ethan Starr, [41]

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No? Okay.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [42]

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Well, you mentioned...

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Ethan Starr, [43]

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Me?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [44]

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Yes. I mean, you must have an idea about it.

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Ethan Starr, [45]

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Well, I just read -- I just know what I read in the Patent Office filings.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [46]

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Feel free to shoot me, anything you want to send me, and I'll take a look.

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Operator [47]

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And we have a follow-up question from the line of Robert Smith with Center for.

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Robert Smith, [48]

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All right. So can you give us some color on how the newer products are doing in the marketplace in animal health? And also, do you have any plans for the introduction of new products in this fiscal year?

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [49]

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The new products carrying the NeoPrime are going as we expect. There continues to be...

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Robert Smith, [50]

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Yes. NeoPrime, Verge and things like that in...

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [51]

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All of those products are growing, and we continue to get new customers and customers continue to be interested in those technologies. So from that standpoint, it's positive. In terms of this year, we are registering 1 to possibly 3 different new animal health products. We're going to see when the final research shakes out how many new products we have. Those will start registration probably in the next few months. And it's possible when it comes here, too, we might get registration before the end of this fiscal year. But the reality is a number of countries would be obtained in F '19, and that's when we would start to see initial sales and profit.

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Robert Smith, [52]

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Okay. And just circling back to one of Ethan's prior questions about this question on the antibiotic. I wasn't really clear on what you said. So the prospective customer changed manufacturing processes. Is that what happened? And then -- so what does that have to do with the efficacy of -- so your product worked, but not sufficiently in comparison or what?

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Michael Andrew McPherson, Oil-Dri Corporation of America - Chief Development Officer [53]

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Well, it gets a little bit into the weeds on the use of different drugs. But any particular instance, Varium was being evaluated in what they call antibiotic-free production line and along with many other materials that are being tested. In the middle of the trial, the customer stopped using something called an iodophor, which in some circles is not strictly considered an antibiotic because it's not used in the human health market. But the reality is it is a class of antibiotics. Well, I mean, remove the iodophor to treat another disease. This is where, unfortunately, Robert, it gets a little vague. It's used to treat cocci, which is a parasite. When they remove the use of that iodophor, they had an outbreak of parasites, which then causes a secondary disease called necrotic enteritis. So Varium worked for the purpose it was intended. But once they changed the administration of drugs, they created a new production environment for which Varium wasn't developed nor were any of the other types of products that were being tested in this production line. So as a result, it's kind of a new production environment for the [boiler] producer, which is why I said it worked initially for what Varium was developed for. But now you have this new situation where you're creating multiple diseases, and Varium was not a drug.

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Operator [54]

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Our last question comes from the line of Ethan Starr, a private investor.

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Ethan Starr, [55]

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Yes. I'm wondering, for the lightweight cat litter, it's been -- you mentioned in the past that it's more profitable from heavyweight cat litter. And I'm wondering, is it just because it costs less to transport it or is it also cost less to manufacture and/or process through your factories?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [56]

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Well, it's a good question. First of all, the transport is large just not just from the factory to the customer, but the fact that sodium bentonite is -- only occurs in South Dakota and Wyoming. And our calcium bentonite occurs in California, the Midwest and the East. So your net miles to the customer are much lower. And then you can put twice as many units on the truck, so you're -- even if the miles were the same, your freight cost would be in half. So you're basically getting 1/2 and 1/2. So you're basically -- our total freight is probably 25% of, or 75% less than, what a heavyweight cat litter would be getting to the same customer, depending on where the customer is, obviously. If the customer is in Wyoming, they would have an advantage, but there aren't many cats as pets in Wyoming. So if you want to pick California or the Northeast, which are the major -- where cat litter is, major advantage on both sides. So just the mines are closer to the market. And then because of the lighter nature of it, you can put twice as many units on the truck. Does that make sense?

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Ethan Starr, [57]

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Yes. But it makes you sound like you're doing -- so you're shipping some of your calcium bentonite to Wyoming and they're making it there.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [58]

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I'm shipping calcium bentonite. Well, I am, I guess, if there's into -- like a Walmart in Wyoming, I suppose I am. So they have a benefit. So sodium bentonite would have a cost advantage to a Walmart in Wyoming.

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Ethan Starr, [59]

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Okay. But isn't it being shipped to your factories first and going back there?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [60]

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No. I'm saying the competitors will be shipping from there. We don't have any mines in Wyoming.

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Ethan Starr, [61]

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I see. I know that. I'm quite aware of that. But I was asking on your products, not the competitors' products.

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [62]

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Right.

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Ethan Starr, [63]

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Okay. Well, is there any efficiencies or cost savings in manufacturing lighter-weight litter or not?

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Daniel S. Jaffee, Oil-Dri Corporation of America - CEO, President & Director [64]

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Not really. I mean, it's all volumetric. You've got an 80-foot dryer that's 8-foot in diameter and it's pounding out clay and it doesn't care if the clay is 70 pounds a cubic foot or 35 pounds a cubic foot. It's coming out a certain amount of volume. Now obviously, on a per ton basis, theirs is going to be a lower cost per ton because they're going to get more tons out of that dryer because what's coming out weighs more. But it's all volumetric and then it goes over a screen, and that's volumetric. And then it gets put in jugs, and those are volumetric. So the cost per unit would be very similar. Now it doesn't mean we'll be a little more efficient or less efficient, whatever, but I'm just saying there's no inherent advantage. I will tell you the one inherent advantage is the way our minds work, we tend to have what's better known overburden-to-clay ratio, meaning we have to take off less topsoil to get to a lot of clay. The way sodium bentonite works is it's very -- not a lot of topsoil, but it's very thin seams. I've heard they're very, very thin seams. So they disrupt out -- basically, I've heard 3 to 5x the amount of acreage we do for every ton of litter. So it's very disruptive actually to the environment from that standpoint.

Yes. All right. Good. Well, thank you, everybody. I hope some of you will have time to come to our annual meeting where we'll actually be showing our new marketing program, both the videos and the commercials and all that. Mark will be presenting. Mike will be presenting. Dan will be presenting. I will be playing emcee and celebrity roaster, I guess. But we're very positive.

Again, we think the focus on the future is more important than just trying to explain the past. I get that there's -- certainly, you need to understand the past to know where you're going. But in each of our businesses, we have a lot of things to look forward to. And yes, they take longer. We'd all love them all to materialize tomorrow, but then we would have nothing to do the day after that. So we believe we have a lot of opportunities. We believe the company is still moving very much forward and really that the best is yet to come. So we'll go at it for another quarter, and we'll either see you tomorrow or we'll talk to you again in another 90 days-ish. So thanks very much. Happy holidays, everybody. I hope you get to take some time off. Bye-bye.

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Operator [65]

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Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a great day.