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AMCOL International Corporation (NYSE: ACO) Reports Third Quarter Results


AMCOL International Corporation (NYSE: ACO) Reports Third Quarter Results

HOFFMAN ESTATES, IL -- (Marketwired) -- 10/25/13 -- For the third quarter of 2013, AMCOL International Corporation (NYSE: ACO) reported $0.61 of diluted loss per share attributable to AMCOL shareholders including $1.21 per share of non-cash impairment charges from our South African chromite and health and beauty (HBS) operations. Excluding the impairments, we realized $0.60 of diluted earnings per share, comparable to the $0.59 per share earned in the prior year's quarter.

In the remainder of this press release, the discussion of our third quarter 2013 results of operations excludes the impact of the South African and HBS impairments except where noted. See the attached supplemental information for a reconciliation of our results excluding these impairment charges.

Net sales increased $14.3 million, or 5.7%, to $263.5 million in the 2013 third quarter. While gross profit increased $0.9 million, gross profit margin decreased 120 basis points to 26.4%. Operating profit and operating profit margin decreased $0.7 million and 90 basis points, respectively, with the decrease in gross profit margin and a $1.6 million increase in SG&A expenses. Our effective tax rate for the 2013 third quarter was 22.6% compared to 29.5% in the prior year period; the current period is favorably affected by adjustments made in the quarter, including 500 basis points of benefit from discrete items and changes in estimates for forecasted income for the year.

"We were pleased with the results of our Performance Materials segment where, despite weakness in chromite, sales growth of 8.1% generated a 9.8% increase in operating profit. Metalcasting products excluding chromite were steady in North America and grew nicely in Asia. Growth from our fabric care and pet products also contributed to the positive results for the segment. This was partially offset by continued softness in drilling fluids and chromite," said AMCOL President and CEO Ryan McKendrick.

"In our Construction Technologies segment, we were pleased with the results as the management team grew sales by 3.6% versus the prior year, yielding a 32.9% increase in operating profit. The operational streamlining and restructuring initiatives started in early 2013 are now having a positive impact. Large projects under way, several of which utilize our newly developed geosynthetic clay liner technology, also contributed to the results," McKendrick continued.

"Our Energy Services segment completed a difficult quarter. Our Malaysian operations recorded a loss for the quarter due to lower service revenue and cost overruns to complete fixed price capital equipment sales in our filtration services. Domestically, price pressure for land based services offset strong performance in our filtration services. Oversupply challenges continue to adversely impact pricing and margins for several completion and production related services; we have initiated cost reduction activities in these services," McKendrick added.

"Moving on, our chromite processing plant in South Africa, with its patented process, is the only one in the world that produces a very high percentage of its output in the form of foundry grade chromite. However, excess capacity from other multi-grade producers of chromite has impacted the foundry grade market, and we are convinced that our pricing and ability to grow market share in the future has been impacted," McKendrick commented.

"Given the challenging outlook for market share growth and pricing, we believe we will not recover our investment in these chromite assets. While not excluding any options, our basic strategy remains intact -- to produce foundry grade chromite with greater efficiency than any of our competitors and to market it with world class technical and sales support. We expect to be better positioned than our competitors," McKendrick continued.

As a result, we recorded a $52.3 million non-cash impairment charge against our South African chromite long lived assets. The decrease in the outlook for our chromite operations and the impairment expense resulted in an increase to cost of goods sold ($52.2 million) and SG&A expenses ($0.1 million) and was partially offset by tax benefits ($10.3 million) and non-controlling interests ($6.9 million), resulting in a $35.1 million reduction in net income attributable to AMCOL shareholders.

In the third quarter of 2013, we also committed to a plan to divest our health and beauty business (HBS) within our Performance Materials segment. In conjunction with these efforts, we recorded an impairment charge of $4.2 million to reduce the long lived assets of these operations to their fair market value. We have included this impairment, along with the normal results of the HBS operations, within discontinued operations.

DETAILED ANALYSIS OF RESULTS

The following paragraphs discuss our most recent results. The statement of operations highlights are supported by the quarterly segment results schedules included in this press release and the discussion of them below. As they relate to our results as contained in the statement of operations, the following comments relate to our results for the current quarter as compared to the same quarter in the prior year, unless otherwise noted, and exclude the effect of the South African chromite and HBS impairment charges as previously discussed. See the attached supplemental information for a reconciliation of our results excluding these impairment charges. As they relate to the balance sheet, the following paragraphs highlight our financial condition as of September 30, 2013 as compared to December 31, 2012. As they relate to our statement of cash flows, the following comments compare our results for the nine months ending September 30, 2013 as compared to the nine months ending September 30, 2012.

The $14.3 million increase in revenues was generated across all operating segments, with Performance Materials segment experiencing the largest increase. While gross profits increased marginally, gross profit margin decreased largely due to decreases in our Energy Services segment. Increases within our corporate segment drove the overall increase in SG&A expenses.

On a segment basis, revenues in our Performance Materials segment increased $9.4 million, or 8.1%, largely due to improved volumes. While metalcasting revenues decreased mostly due to lower chromite sales and timing of large export shipments, our other product lines increased their sales. Increased bad debt and professional fees for mining reserve evaluations for our chromite operation led to the increase in SG&A expenses.

Construction Technologies segment revenues increased $2.2 million, or 3.6%, due to increased demand for its lining technology and drilling products. Better product mix in our European subsidiaries and increased volumes in our traditional lining products favorably impacted gross profit margin, increasing it 120 basis points to 34.2%. Our restructuring efforts have led to decreased SG&A expenses. These factors improved operating profit by 32.9% to $9.3 million and operating profit margin by 320 basis points to 14.8%.

Revenues in our Energy Services segment increased $3.7 million, or 5.4%. Revenues increased $13.0 million domestically and decreased $9.3 million internationally. Our domestic filtration revenues increased as activity in the offshore market continues to recover. Demand for land based services, especially coil tubing services, increased, albeit at lower prices. Not only did our Malaysian filtration revenues decrease, but we increased our estimates of the costs required to complete fixed price sales of capital equipment, both of which negatively impacted gross profit margins. The 640 basis point decrease in gross profit margin was also caused by selling price pressure resulting from increased competition on our US land based services. The decreased gross profits combined with flat SG&A expenses decreased the segment's operating profits by $4.1 million.

Our corporate SG&A expenses increased $1.2 million for a variety of factors, the largest of which was increased information technology and new product development expenses.

Our cash flows from operating activities decreased $15.9 million to $56.3 million as investments in working capital increased. The current year-to-date period is not benefitting from the significant decrease in accounts receivable that we experienced in the prior year's period, especially in our Performance Materials segment. Capital expenditures increased, mostly in our Energy Services segment, and we invested $5.0 million in Novinda in the first quarter of 2013. The combination of these factors led us to borrow $39.0 million more than in the prior year-to-date period. Our quarterly dividend rate remained constant at $0.20 per share in the third quarter of 2013 and 2012.

This release should be read in conjunction with the attached unaudited, condensed, consolidated financial statements. It contains certain forward-looking statements regarding AMCOL's expected performance for future periods and actual results for such periods might materially differ. Such forward-looking statements are subject to uncertainties, which include, but are not limited to, actual growth in AMCOL's various markets, utilization of AMCOL's plants, currency exchange rates, currency devaluation, delays in development, production and marketing of new products, integration of acquired businesses, and other factors detailed from time to time in AMCOL's annual report and other reports filed with the Securities and Exchange Commission. AMCOL undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL's expectations.

Founded in 1927, AMCOL International Corporation is a leading producer and marketer of diverse specialty materials with a core expertise in minerals and polymer science. Through four business segments, Performance Materials, Construction Technologies, Energy Services, and Transportation and Logistics, AMCOL creates solutions that enhance the quality, efficiency and sustainability of its customers' products and services in a growing global marketplace. Headquartered in Hoffman Estates, Illinois, AMCOL International Corporation is a publicly owned company traded under the symbol ACO (NYSE). AMCOL's web address is www.amcol.com. AMCOL's quarterly quarter conference call will be available live today at 11 a.m. ET on the AMCOL website via webcast or by dialing 866-226-1792.


 
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (unaudited)                                 
                    (In millions, except per share data)                    
                                                                            
                                      Nine Months Ended  Three Months Ended 
                                        September 30,       September 30,   
                                     ------------------  ------------------ 
                                       2013      2012      2013      2012   
                                     --------  --------  --------  -------- 
Continuing Operations                                                       
Net sales                            $  755.2  $  731.8  $  263.5  $  249.2 
Cost of sales                           605.0     527.1     246.1     180.5 
                                     --------  --------  --------  -------- 
  Gross profit                          150.2     204.7      17.4      68.7 
                                                                            
Selling, general, and administrative                                        
 expenses                               133.6     124.9      42.0      40.3 
                                     --------  --------  --------  -------- 
  Operating profit                       16.6      79.8     (24.6)     28.4 
                                     --------  --------  --------  -------- 
                                                                            
Other income (expense):                                                     
  Interest expense, net                  (7.6)     (8.0)     (2.6)     (2.6)
  Other, net                             (2.0)     (2.7)     (0.8)        - 
                                     --------  --------  --------  -------- 
                                         (9.6)    (10.7)     (3.4)     (2.6)
                                     --------  --------  --------  -------- 
  Income (loss) before income taxes                                         
   and income from affiliates and                                           
   joint ventures                         7.0      69.1     (28.0)     25.8 
Income tax expense (benefit)              5.0      19.2      (4.8)      7.6 
                                     --------  --------  --------  -------- 
  Income (loss) before income from                                          
   affiliates and joint ventures          2.0      49.9     (23.2)     18.2 
                                                                            
Income from affiliates and joint                                            
 ventures                                 2.5       3.4       0.7       1.0 
                                     --------  --------  --------  -------- 
  Income (loss) from continuing                                             
   operations                             4.5      53.3     (22.5)     19.2 
                                                                            
Discontinued Operations                                                     
Income (loss) on discontinued                                               
 operations                              (4.0)      0.6      (4.1)     (0.2)
                                     --------  --------  --------  -------- 
  Net income (loss)                       0.5      53.9     (26.6)     19.0 
                                     --------  --------  --------  -------- 
                                                                            
Net income (loss) attributable to                                           
 noncontrolling interests                (6.8)     (0.2)     (6.8)        - 
                                     --------  --------  --------  -------- 
Net income (loss) attributable to                                           
 AMCOL shareholders                  $    7.3  $   54.1  $  (19.8) $   19.0 
                                     ========  ========  ========  ======== 
                                                                            
Weighted average common shares                                              
 outstanding                             32.4      32.0      32.5      32.1 
                                                                            
Weighted average common and common                                          
 equivalent shares outstanding           32.7      32.3      32.5      32.5 
                                                                            
Earnings (loss) per share                                                   
 attributable to AMCOL shareholders                                         
                                                                            
Basic earnings (loss) per share                                             
  Continuing operations              $   0.34  $   1.67  $  (0.48) $   0.60 
  Discontinued operations               (0.12)     0.02     (0.13)    (0.01)
                                     --------  --------  --------  -------- 
    Net income (loss)                $   0.22  $   1.69  $  (0.61) $   0.59 
                                     ========  ========  ========  ======== 
                                                                            
Diluted earnings (loss) per share                                           
  Continuing operations              $   0.34  $   1.65  $  (0.48) $   0.60 
  Discontinued operations               (0.12)     0.02     (0.13)    (0.01)
                                     --------  --------  --------  -------- 
    Net income (loss)                $   0.22  $   1.67  $  (0.61) $   0.59 
                                     ========  ========  ========  ======== 
                                                                            
Dividends declared per share         $   0.60  $   0.56  $   0.20  $   0.20 
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                         SUPPLEMENTARY INFORMATION                          
                                (unaudited)                                 
                (Dollars in millions, except per share data)                
                                                                            
                                Three Months Ended September 30,            
                     ------------------------------------------------------ 
                                         2013                        2012   
                     -------------------------------------------  --------- 
                                 Less South                                 
                                   Africa      Less HBS                     
                         As      Impairment   Impairment    Pro       As    
                      Reported     Chage        Charge     Forma   Reported 
                     ---------  -----------  -----------  ------  --------- 
Continuing                                                                  
 Operations                                                                 
Net sales            $   263.5                            $263.5  $   249.2 
Cost of sales            246.1         52.2                193.9      180.5 
                     ---------  -----------  -----------  ------  --------- 
  Gross profit                                                              
   (loss)                 17.4        (52.2)           -    69.6       68.7 
    margin %               6.6%                             26.4%      27.6%
Selling, general,                                                           
 and administrative                                                         
 expenses                 42.0          0.1                 41.9       40.3 
                     ---------  -----------  -----------  ------  --------- 
  Operating profit                                                          
   (loss)                (24.6)       (52.3)           -    27.7       28.4 
                     ---------  -----------  -----------  ------  --------- 
    margin %              -9.3%                             10.5%      11.4%
Other income                                                                
 (expense):                                                                 
  Interest expense,                                                         
   net                    (2.6)                             (2.6)      (2.6)
  Other, net              (0.8)                             (0.8)         - 
                     ---------  -----------  -----------  ------  --------- 
                          (3.4)           -            -    (3.4)      (2.6)
                     ---------  -----------  -----------  ------  --------- 
  Income (loss)                                                             
   before income                                                            
   taxes and income                                                         
   from affiliates                                                          
   and joint                                                                
   ventures              (28.0)       (52.3)           -    24.3       25.8 
Income tax expense                                                          
 (benefit)                (4.8)       (10.3)                 5.5        7.6 
    effective tax                                                           
     rate                 17.1%                             22.6%      29.5%
                     ---------  -----------  -----------  ------  --------- 
                                                                            
  Income (loss)                                                             
   before income                                                            
   from affiliates                                                          
   and joint                                                                
   ventures              (23.2)       (42.0)           -    18.8       18.2 
                                                                            
Income from                                                                 
 affiliates and                                                             
 joint ventures            0.7                               0.7        1.0 
                     ---------  -----------  -----------  ------  --------- 
  Income (loss) from                                                        
   continuing                                                          
     
   operations            (22.5)       (42.0)           -    19.5       19.2 
                                                                            
Discontinued                                                                
 Operations                                                                 
Income (loss) on                                                            
 discontinued                                                               
 operations               (4.1)                     (4.2)    0.1       (0.2)
                     ---------  -----------  -----------  ------  --------- 
  Net income (loss)      (26.6)       (42.0)        (4.2)   19.6       19.0 
                     ---------  -----------  -----------  ------  --------- 
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 noncontrolling                                                             
 interests                (6.8)        (6.9)                 0.1          - 
                     ---------  -----------  -----------  ------  --------- 
Net income (loss)                                                           
 attributable to                                                            
 AMCOL shareholders  $   (19.8) $     (35.1) $      (4.2) $ 19.5  $    19.0 
                     =========  ===========  ===========  ======  ========= 
                                                                            
                                                                            
Earnings (loss) per                                                         
 share attributable                                                         
 to AMCOL                                                                   
 shareholders                                                               
                                                                            
Basic earnings                                                              
 (loss) per share                                                           
  Continuing                                                                
   operations        $   (0.48) $     (1.08) $         -  $ 0.60  $    0.60 
  Discontinued                                                              
   operations            (0.13)           -        (0.13)      -      (0.01)
                     ---------  -----------  -----------  ------  --------- 
    Net income                                                              
     (loss)          $   (0.61) $     (1.08) $     (0.13) $ 0.60  $    0.59 
                     =========  ===========  ===========  ======  ========= 
                                                                            
Diluted earnings                                                            
 (loss) per share                                                           
  Continuing                                                                
   operations        $   (0.48) $     (1.08) $         -  $ 0.60  $    0.60 
  Discontinued                                                              
   operations            (0.13)           -        (0.13)      -      (0.01)
                     ---------  -----------  -----------  ------  --------- 
    Net income                                                              
     (loss)          $   (0.61) $     (1.08) $     (0.13) $ 0.60  $    0.59 
                     =========  ===========  ===========  ======  ========= 
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                         SUPPLEMENTARY INFORMATION                          
                                (unaudited)                                 
                (Dollars in millions, except per share data)                
                                                                            
                                   Nine Months Ended September 30,          
                         -------------------------------------------------- 
                                           2013                      2012   
                         ----------------------------------------  -------- 
                                   Less South                               
                                     Africa     Less HBS                    
                            As     Impairment  Impairment    Pro      As    
                         Reported     Chage      Charge     Forma  Reported 
                         --------  ----------  ----------  ------  -------- 
Continuing Operations                                                       
Net sales                $  755.2                          $755.2  $  731.8 
Cost of sales               605.0        52.2               552.8     527.1 
                         --------  ----------  ----------  ------  -------- 
  Gross profit (loss)       150.2       (52.2)          -   202.4     204.7 
    margin %                 19.9%                           26.8%     28.0%
Selling, general, and                                                       
 administrative expenses    133.6         0.1               133.5     124.9 
                         --------  ----------  ----------  ------  -------- 
  Operating profit                                                          
   (loss)                    16.6       (52.3)          -    68.9      79.8 
                         --------  ----------  ----------  ------  -------- 
    margin %                  2.2%                            9.1%     10.9%
Other income (expense):                                                     
  Interest expense, net      (7.6)                           (7.6)     (8.0)
  Other, net                 (2.0)                           (2.0)     (2.7)
                         --------  ----------  ----------  ------  -------- 
                             (9.6)          -           -    (9.6)    (10.7)
                         --------  ----------  ----------  ------  -------- 
  Income (loss) before                                                      
   income taxes and                                                         
   income from                                                              
   affiliates and joint                                                     
   ventures                   7.0       (52.3)          -    59.3      69.1 
Income tax expense                                                          
 (benefit)                    5.0       (10.3)               15.3      19.2 
    effective tax rate       71.4%                           25.8%     27.8%
                         --------  ----------  ----------  ------  -------- 
                                                                            
  Income (loss) before                                                      
   income from                                                              
   affiliates and joint                                                     
   ventures                   2.0       (42.0)          -    44.0      49.9 
                                                                            
Income from affiliates                                                      
 and joint ventures           2.5                             2.5       3.4 
                                                                            
                         --------  ----------  ----------  ------  -------- 
  Income (loss) from                                                        
   continuing operations      4.5       (42.0)          -    46.5      53.3 
                                                                            
Discontinued Operations                                                     
Income (loss) on                                                            
 discontinued operations     (4.0)                   (4.2)    0.2       0.6 
                                                                            
                         --------  ----------  ----------  ------  -------- 
  Net income (loss)           0.5       (42.0)       (4.2)   46.7      53.9 
                         --------  ----------  ----------  ------  -------- 
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 noncontrolling                                                             
 inte
rests                   (6.8)       (6.9)                0.1      (0.2)
                         --------  ----------  ----------  ------  -------- 
Net income (loss)                                                           
 attributable to AMCOL                                                      
 shareholders            $    7.3  $    (35.1) $     (4.2) $ 46.6  $   54.1 
                         ========  ==========  ==========  ======  ======== 
                                                                            
                                                                            
Earnings (loss) per                                                         
 share attributable to                                                      
 AMCOL shareholders                                                         
                                                                            
Basic earnings (loss)                                                       
 per share                                                                  
  Continuing operations  $   0.34  $    (1.09) $        -  $ 1.43  $   1.67 
  Discontinued                                                              
   operations               (0.12)          -       (0.13)   0.01      0.02 
                         --------  ----------  ----------  ------  -------- 
    Net income (loss)    $   0.22  $    (1.09) $    (0.13) $ 1.44  $   1.69 
                         ========  ==========  ==========  ======  ======== 
                                                                            
Diluted earnings (loss)                                                     
 per share                                                                  
  Continuing operations  $   0.34  $    (1.07) $        -  $ 1.41  $   1.65 
  Discontinued                                                              
   operations               (0.12)          -       (0.13)   0.01      0.02 
                         --------  ----------  ----------  ------  -------- 
    Net income (loss)    $   0.22  $    (1.07) $    (0.13) $ 1.42  $   1.67 
                         ========  ==========  ==========  ======  ======== 
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                         SUPPLEMENTARY INFORMATION                          
                                (unaudited)                                 
                           (Dollars In millions)                            
                                                                            
                                         Nine Months Ended September 30,    
                                     -------------------------------------- 
                                                 2013                2012   
                                     ----------------------------  -------- 
        Performance Materials                  Less South                   
                                                 Africa                     
                                        As     Impairment    Pro      As    
                                     Reported     Chage     Forma  Reported 
                                     --------  ----------  ------  -------- 
                                                                            
Net sales                            $  362.7              $362.7  $  362.6 
Cost of sales                           323.0        52.2   270.8     267.0 
                                     --------  ----------  ------  -------- 
  Gross profit (loss)                    39.7       (52.2)   91.9      95.6 
    margin %                             10.9%               25.3%     26.4%
                                                                            
Selling, general, and administrative                                        
 expenses                                37.1         0.1    37.0      34.4 
                                     --------  ----------  ------  -------- 
  Operating profit (loss)                 2.6       (52.3)   54.9      61.2 
                                     --------  ----------  ------  -------- 
    margin %                              0.7%               15.1%     16.9%
                                                                            
                                                                            
                                        Three Months Ended September 30,    
                                     -------------------------------------- 
                                                 2013                2012   
                                     ----------------------------  -------- 
        Performance Materials                  Less South                   
                                                 Africa                     
                                        As     Impairment    Pro      As    
                                     Reported     Chage     Forma  Reported 
                                     --------  ----------  ------  -------- 
                                                                            
Net sales                            $  126.1              $126.1  $  116.7 
Cost of sales                           145.6        52.2    93.4      86.6 
                                     --------  ----------  ------  -------- 
  Gross profit (loss)                   (19.5)      (52.2)   32.7      30.1 
    margin %                            -15.5%               25.9%     25.8%
                                                                            
Selling, general, and administrative                                        
 expenses                                12.6         0.1    12.5      11.7 
                                     --------  ----------  ------  -------- 
  Operating profit (loss)               (32.1)      (52.3)   20.2      18.4 
                                     --------  ----------  ------  -------- 
    margin %                            -25.5%               16.0%     15.8%
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                               (In millions)                                
                                                                            
                                                                            
                                               September 30,   December 31, 
ASSETS                                              2013           2012     
                                                (unaudited)         *       
                                               -------------  ------------- 
Current assets:                                                             
  Cash and equivalents                         $        38.1  $        40.0 
  Accounts receivable, net                             226.3          202.7 
  Inventories                                          154.4          153.8 
  Prepaid expenses                                      24.0           17.0 
  Income tax receivable                                 17.4            7.0 
  Assets held for sale                                  14.5            0.2 
  Available-for-sale securities                          9.1              - 
  Defer
red income taxes                                  6.7            7.0 
  Other                                                  0.8            1.8 
                                               -------------  ------------- 
    Total current assets                               491.3          429.5 
                                               -------------  ------------- 
                                                                            
Noncurrent assets:                                                          
  Property, plant, equipment, mineral rights                                
   and reserves:                                                            
    Land                                                10.8           13.0 
    Mineral rights                                       5.1           48.6 
    Depreciable assets                                 557.7          552.0 
                                               -------------  ------------- 
                                                       573.6          613.6 
    Accumulated depreciation and depletion            (318.6)        (311.7)
                                               -------------  ------------- 
                                                       255.0          301.9 
                                               -------------  ------------- 
                                                                            
  Goodwill                                              68.6           70.2 
  Intangible assets, net                                28.9           33.9 
  Investments in and advances to affiliates                                 
   and joint ventures                                   34.5           27.8 
  Available-for-sale securities                            -           14.6 
  Deferred income taxes                                  5.3            7.4 
  Other assets                                          27.4           25.3 
                                               -------------  ------------- 
    Total noncurrent assets                            419.7          481.1 
                                               -------------  ------------- 
Total Assets                                   $       911.0  $       910.6 
                                               =============  ============= 
                                                                            
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
                                                                            
  Current liabilities:                                                      
    Accounts payable                           $        58.3  $        51.1 
    Accrued income taxes                                12.5            5.0 
    Accrued liabilities                                 64.4           58.4 
                                               -------------  ------------- 
      Total current liabilities                        135.2          114.5 
                                               -------------  ------------- 
                                                                            
Noncurrent liabilities:                                                     
  Long-term debt                                       270.9          248.8 
  Pension liabilities                                   38.1           37.5 
  Deferred compensation                                 10.9            9.4 
  Deferred income taxes                                  1.6           12.8 
  Other long-term liabilities                           19.5           22.5 
                                               -------------  ------------- 
    Total noncurrent liabilities                       341.0          331.0 
                                               -------------  ------------- 
                                                                            
Shareholders' equity:                                                       
  Common stock                                           0.3            0.3 
  Additional paid in capital                           115.5          105.1 
  Retained earnings                                    343.0          355.2 
  Accumulated other comprehensive income                                    
   (loss)                                              (20.2)           0.8 
                                               -------------  ------------- 
Total AMCOL shareholders' equity                       438.6          461.4 
                                               -------------  ------------- 
  Noncontrolling interest                               (3.8)           3.7 
                                               -------------  ------------- 
    Total equity                                       434.8          465.1 
                                               -------------  ------------- 
                                                                            
Total Liabilities and Shareholders' Equity     $       911.0  $       910.6 
                                               =============  ============= 
                                                                            
                                                                            
* Condensed from audited financial statements.                              
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)         
                               (In millions)                                
                                                                            
                                                          Nine Months Ended 
                                                            September 30,   
                                                         ------------------ 
                                                           2013      2012   
                                                         --------  -------- 
Cash flow from operating activities:                                        
  Net income (loss)                                      $    0.5  $   53.9 
  Adjustments to reconcile net income to net cash                           
  provided by (used in) operating activities:                               
    Depreciation, depletion, and amortization                37.7      33.3 
    Asset impairment charge                                  57.3       0.8 
    Other non-cash adjustments                               (3.6)      4.5 
    Changes in assets and liabilities, net of effects of                    
     acquisitions:                                                          
      Decrease (increase) in current assets                 (57.6)    (42.6)
      Decrease (increase) in noncurrent assets               (2.5)        - 
      Increase (decrease) in current liabilities             22.9      17.1 
      Increase (decrease) in noncurrent liabilities           1.6       5.2 
                                                         --------  -------- 
        Net cash provided by (used in) operating                            
         activities                                          56.3      72.2 
                                                         --------  -------- 
                                                                            
Cash flow from investing activities:                                        
  Capital expenditures                                      (66.3)    (54.2)
  (Increa
se) decrease in investments and advances (to)                      
   from affiliates and joint ventures                        (4.8)      0.2 
  Proceeds from sale of land and depreciable assets           4.2       1.5 
  Other                                                       0.1       1.9 
                                                         --------  -------- 
        Net cash (used in) investing activities             (66.8)    (50.6)
                                                         --------  -------- 
Cash flow from financing activities:                                        
  Net change in outstanding debt                             22.2     (16.8)
  Proceeds from exercise of stock awards                      6.5       4.8 
  Dividends paid                                            (19.4)    (17.2)
  Excess tax benefits from stock-based compensation           0.2       0.2 
  Contribution from noncontrolling partner                    0.1       0.1 
                                                         --------  -------- 
        Net cash provided by (used in) financing                            
         activities                                           9.6     (28.9)
                                                         --------  -------- 
                                                                            
Effect of foreign currency rate changes on cash              (1.0)      0.9 
                                                         --------  -------- 
Net increase (decrease) in cash and cash equivalents         (1.9)     (6.4)
                                                         --------  -------- 
Cash and cash equivalents at beginning of period             40.0      24.1 
                                                         --------  -------- 
Cash and cash equivalents at end of period               $   38.1  $   17.7 
                                                         ========  ======== 
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                        SEGMENT RESULTS (unaudited)                         
                              QUARTER-TO-DATE                               
                                                                            
  Performance Materials           Three Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $ 126.1    100.0% $ 116.7   100.0% $   9.4     8.1%
Cost of sales              145.6    115.5%    86.6    74.2%    59.0    68.1%
                         -------  -------  -------  ------  -------         
  Gross profit (loss)      (19.5)   -15.5%    30.1    25.8%   (49.6) -164.8%
Selling, general and                                                        
 administrative expenses    12.6     10.0%    11.7    10.0%     0.9     7.7%
                         -------  -------  -------  ------  -------         
  Operating profit                                                          
   (loss)                  (32.1)   -25.5%    18.4    15.8%   (50.5) -274.5%
                                                                            
                                                                            
      Construction                                                          
       Technologies               Three Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $  62.8    100.0% $  60.6   100.0% $   2.2     3.6%
Cost of sales               41.3     65.8%    40.6    67.0%     0.7     1.7%
                         -------  -------  -------  ------  -------         
  Gross profit              21.5     34.2%    20.0    33.0%     1.5     7.5%
Selling, general and                                                        
 administrative expenses    12.2     19.4%    13.0    21.4%    (0.8)   -6.2%
                         -------  -------  -------  ------  -------         
  Operating profit           9.3     14.8%     7.0    11.6%     2.3    32.9%
                                                                            
                                                                            
     Energy Services              Three Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $  72.8    100.0% $  69.1   100.0% $   3.7     5.4%
Cost of sales               58.8     80.8%    51.4    74.4%     7.4    14.4%
                         -------  -------  -------  ------  -------         
  Gross profit              14.0     19.2%    17.7    25.6%    (3.7)  -20.9%
Selling, general and                                                        
 administrative expenses    10.2     14.0%     9.8    14.2%     0.4     4.1%
                         -------  -------  -------  ------  -------         
  Operating profit           3.8      5.2%     7.9    11.4%    (4.1)  -51.9%
                                                                            
                                                                            
     Transportation               Three Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
 
                        -------------------------------------------------- 
                                                                            
Net sales                $  12.7    100.0% $  10.7   100.0% $   2.0    18.7%
Cost of sales               11.3     89.0%     9.6    89.7%     1.7    17.7%
                         -------  -------  -------  ------  -------         
  Gross profit               1.4     11.0%     1.1    10.3%     0.3    27.3%
Selling, general and                                                        
 administrative expenses     0.9      7.1%     0.9     8.4%       -     0.0%
                         -------  -------  -------  ------  -------         
  Operating profit           0.5      3.9%     0.2     1.9%     0.3   150.0%
                                                                            
                                                                            
        Corporate         Three Months Ended September 30,                  
                         ---------------------------------                  
                           2013     2012    2013 vs. 2012                   
                         -------  -------  ---------------                  
                               (Dollars in Millions)                        
                         ---------------------------------                  
                                                                            
Intersegment sales       $ (10.9) $  (7.9) $  (3.0)                         
Intersegment cost of                                                        
 sales                     (10.9)    (7.7)    (3.2)                         
                         -------  -------  -------                          
  Gross profit (loss)          -     (0.2)     0.2                          
Selling, general and                                                        
 administrative expenses     6.1      4.9      1.2    24.5%                 
                         -------  -------  -------                          
  Operating loss            (6.1)    (5.1)    (1.0)   19.6%                 
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                        SEGMENT RESULTS (unaudited)                         
                                YEAR-TO-DATE                                
                                                                            
  Performance Materials            Nine Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $ 362.7    100.0% $ 362.6   100.0% $   0.1     0.0%
Cost of sales              323.0     89.1%   267.0    73.6%    56.0    21.0%
                         -------  -------  -------  ------  -------  ------ 
  Gross profit              39.7     10.9%    95.6    26.4%   (55.9)  -58.5%
Selling, general and                                                        
 administrative expenses    37.1     10.2%    34.4     9.5%     2.7     7.8%
                         -------  -------  -------  ------  -------  ------ 
Operating profit             2.6      0.7%    61.2    16.9%   (58.6)  -95.8%
                                                                            
                                                                            
                                                                            
      Construction                                                          
       Technologies                Nine Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $ 161.6    100.0% $ 173.0   100.0% $ (11.4)   -6.6%
Cost of sales              109.1     67.5%   119.6    69.1%   (10.5)   -8.8%
                         -------  -------  -------  ------  -------  ------ 
  Gross profit              52.5     32.5%    53.4    30.9%    (0.9)   -1.7%
Selling, general and                                                        
 administrative expenses    42.2     26.1%    39.1    22.6%     3.1     7.9%
                         -------  -------  -------  ------  -------  ------ 
Operating profit            10.3      6.4%    14.3     8.3%    (4.0)  -28.0%
                                                                            
                                                                            
                                                                            
     Energy Services               Nine Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $ 223.6    100.0% $ 185.5   100.0% $  38.1    20.5%
Cost of sales              169.4     75.8%   133.2    71.8%    36.2    27.2%
                         -------  -------  -------  ------  -------  ------ 
  Gross profit              54.2     24.2%    52.3    28.2%     1.9     3.6%
Selling, general and                                                        
 administrative expenses    33.4     14.9%    31.9    17.2%     1.5     4.7%
                         -------  -------  -------  ------  -------  ------ 
Operating profit            20.8      9.3%    20.4    11.0%     0.4     2.0%
                                                                            
                                                                            
                                                                            
     Transportation                Nine Months Ended September 30,          
                         -------------------------------------------------- 
                               2013              2012        2013 vs. 2012  
                         ----------------  ---------------  --------------- 
                                        (Dollars in Millions)               
                         -------------------------------------------------- 
                                                                            
Net sales                $  34.4    100.0% $  33.5   100.0% $   0.9     2.7%
Cost of sales               30.7     89.2%    30.0    89.6%     0.7     2.3%
                         -------  -------  -------  ------  -------  ------ 
  Gross profit               3.7     10.8%     3.5    10.4%     0.2     5.7%
Selling, general and                                                        
 administrative expenses     2.7      7.9%     2.8     8.3%    (0.1)   -3.6%
                         -------  -------  -------  ------  -------  ------ 
Operating profit             1.0      2.9%     0.7     2.1%     0.3    42.9%
                                                                            
                                                                            
                                                                            
        Corporate         Nine Months Ended September 30,                   
                         ---------------------------------                  
                           2013     2012    2013 vs. 2012                   
                         -------  -------  ---------------                  
                               (Dollars in Millions)                        
                         ---------------------------------                  
                                                                            
Intersegment sales       $ (27.1) $ (22.8) $  (4.3)                         
Intersegment cost of                                                        
 sales       
              (27.2)   (22.7)    (4.5)                         
                         -------  -------  -------                          
  Gross profit (loss)        0.1     (0.1)     0.2                          
Selling, general and                                                        
 administrative expenses    18.2     16.7      1.5     9.0%                 
                         -------  -------  -------                          
Operating loss             (18.1)   (16.8)    (1.3)    7.7%                 
                                                                            
                                                                            
                                                                            
                                                                            
                  AMCOL INTERNATIONAL CORPORATION                           
               SUPPLEMENTARY INFORMATION (unaudited)                        
                          QUARTER-TO-DATE                                   
                                                                            
Composition of Sales by                                                     
 Geographic Region                Three Months Ended September 30, 2013     
                             ---------------------------------------------- 
                                                            Asia            
                              Americas         EMEA        Pacific    Total 
                                                                            
                                                                            
Performance materials              24.1%           12.6%      11.2%    47.9%
Construction technologies           9.1%           11.7%       3.0%    23.8%
Energy services                    24.1%            2.1%       1.4%    27.6%
Transportation &                                                            
 intersegment sales                 0.7%            0.0%       0.0%     0.7%
                             ----------   -------------   --------   ------ 
Total - current year's                                                      
 period                            58.0%           26.4%      15.6%   100.0%
                             ==========   =============   ========   ====== 
Total from prior year's                                                     
 comparable period                 56.7%           25.1%      18.2%   100.0%
                                                                            
                                                                            
                                                                            
                                  Three Months Ended September 30, 2013     
                                                   vs.                      
Percentage of Revenue                                                       
 Growth by Component              Three Months Ended September 30, 2012     
                             ---------------------------------------------- 
                                                                            
                                                           Foreign          
                               Organic     Acquisitions   Exchange    Total 
                             ----------   -------------   --------   ------ 
Performance materials               4.3%            0.0%      -0.5%     3.8%
Construction technologies           0.6%            0.0%       0.3%     0.9%
Energy services                     1.5%            0.4%      -0.4%     1.5%
Transportation &                                                            
 intersegment sales                -0.4%            0.0%       0.0%    -0.4%
                             ----------   -------------   --------   ------ 
Total                               6.0%            0.4%      -0.6%     5.8%
                             ==========   =============   ========   ====== 
% of growth                       103.4%            6.9%     -10.3%   100.0%
                                                                            
                                                                            
                                                                            
Performance Materials                                                       
 Product Line Sales             Three Months Ended September 30,            
                             -------------------------------------          
                                2013           2012       % change          
                             ----------   -------------   --------          
                                     (Dollars in Millions)                  
                             -------------------------------------          
Metalcasting                 $     67.2   $        67.8       -0.9%         
Specialty materials                23.9            21.3       12.2%         
Basic minerals                     15.8            14.7        7.5%         
Pet products                       15.9            12.0       32.5%         
Other product lines                 3.3             0.9          *          
                             ----------   -------------                     
  Total                           126.1           116.7        8.1%         
                             ==========   =============                     
* Not meaningful                                                            
                                                                            
                                                                            
                                                                            
Construction Technologies                                                   
 Product Line Sales             Three Months Ended September 30,            
                             -------------------------------------          
                                2013           2012       % change          
                             ----------   -------------   --------          
                                     (Dollars in Millions)                  
                             -------------------------------------          
Lining technologies          $     29.5   $        25.3       16.6%         
Building materials                 19.3            20.3       -4.9%         
Drilling products                  12.1             9.8       23.5%         
Contracting services                1.9             5.2      -63.5%         
                             ----------   -------------                     
  Total                            62.8            60.6        3.6%         
                             ==========   =============                     
                                                                            
                                                                            
                                                                            
                                                                            
                  AMCOL INTERNATIONAL CORPORATION                           
               SUPPLEMENTARY INFORMATION (unaudited)                        
                           YEAR-TO-DATE                                     
                                                                            
Composition of Sales by                                                     
 Geographic Region                Nine Months Ended September 30, 2013      
                             ---------------------------------------------- 
                                                            Asia            
                              Americas         EMEA        Pacific    Total 
                                                                            
                                                                            
Performance mat
erials              25.5%           11.0%      11.5%    48.0%
Construction technologies           8.7%            9.7%       3.0%    21.4%
Energy services                    25.4%            1.7%       2.5%    29.6%
Transportation &                                                            
 intersegment sales                 1.0%            0.0%       0.0%     1.0%
                             ----------   -------------   --------   ------ 
Total - current year's                                                      
 period                            60.6%           22.4%      17.0%   100.0%
                             ==========   =============   ========   ====== 
Total from prior year's                                                     
 comparable period                 61.0%           22.5%      16.5%   100.0%
                                                                            
                                                                            
                                                                            
                                  Nine Months Ended September 30, 2013      
                                                   vs.                      
Percentage of Revenue                                                       
 Growth by Component              Nine Months Ended September 30, 2012      
                             ---------------------------------------------- 
                                                           Foreign          
                               Organic     Acquisitions   Exchange    Total 
                             ----------   -------------   --------   ------ 
Performance materials               0.3%            0.0%      -0.3%     0.0%
Construction technologies          -1.8%            0.0%       0.2%    -1.6%
Energy services                     5.4%            0.1%      -0.3%     5.2%
Transportation &                                                            
 intersegment sales                -0.5%            0.0%       0.0%    -0.5%
                             ----------   -------------   --------   ------ 
Total                               3.4%            0.1%      -0.4%     3.1%
                             ==========   =============   ========   ====== 
% of growth                       109.7%            3.2%     -12.9%   100.0%
                                                                            
                                                                            
                                                                            
Performance Materials                                                       
 Product Line Sales             Nine Months Ended September 30,             
                             -------------------------------------          
                                2013           2012       % change          
                             ----------   -------------   --------          
                                     (Dollars in Millions)                  
                             -------------------------------------          
Metalcasting                 $    200.4   $       201.6       -0.6%         
Specialty materials                64.8            70.0       -7.4%         
Basic minerals                     45.9            48.0       -4.4%         
Pet products                       43.8            40.0        9.5%         
Other product lines                 7.8             3.0          *          
                             ----------   -------------                     
  Total                           362.7           362.6        0.0%         
                             ==========   =============                     
* Not meaningful                                                            
                                                                            
                                                                            
                                                                            
Construction Technologies                                                   
 Product Line Sales             Nine Months Ended September 30,             
                             -------------------------------------          
                                2013           2012       % change          
                             ----------   -------------   --------          
                                     (Dollars in Millions)                  
                             -------------------------------------          
Lining technologies          $     67.4   $        72.0       -6.4%         
Building materials                 56.1            58.2       -3.6%         
Drilling products                  31.5            29.0        8.6%         
Contracting services                6.6            13.8      -52.2%         
                             ----------   -------------                     
  Total                           161.6           173.0       -6.6%         
                             ==========   =============                     
                                                                            
                                                                            
                                                                            
                                                                            
                      AMCOL INTERNATIONAL CORPORATION                       
                         SUPPLEMENTARY INFORMATION                          
                                (unaudited)                                 
                               (In thousands)                               
                                                                            
                Reorganizing Charges                          2013          
                                                    ----------------------- 
                                                       Q1      Q2      Q3   
                                                    ------- ------- ------- 
                                                                            
Cost of sales line:                                                         
  Performance materials                             $    23 $    22 $    22 
  Construction technologies                             435     208      48 
  Energy services                                        40       -       9 
                                                    ------- ------- ------- 
                                                    $   498 $   230 $    79 
                                                    ------- ------- ------- 
                                                                            
Selling, general, and administrative expenses line:                         
  Performance materials                             $   459 $   145 $   (11)
  Construction technologies                           1,718   1,542    (129)
  Energy services                                         -       -      50 
                                                    ------- ------- ------- 
                                                    $ 2,177 $ 1,687 $   (90)
                                                    ------- ------- ------- 
                                                                            
Total                                                                       
  Performance materials                             $   482 $   167 $    11 
  Construction technologies                           2,153   1,750     (81)
  Energy services                                        40       -      59 
                                                    ------- ------- ------- 
                                                    $ 2,675 $ 1,917 $   (11)
                                                    ------- ------- ------- 

For further information, contact: Don Pearson Senior Vice President & Chief Financial Officer 847.851.1500

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