Oil-Dri Corporation of America (ODC, NYSE)
Industry: Specialty Chemicals
Annual report, fiscal year 2013


## OILDRI
CORPORATION OF AMERICA
Annual Report
2013



OILDRI
CORPORATION OF AMERICA

Creating Value From Sorbent Minerals



# Letter to Stakeholders

Fiscal 2013





Daniel S. Jaffee
President & Chief Executive Officer

What a great year 2013 was! Our strategic business units met or exceeded their plans for the year. Our sales of Cat’s Pride Fresh & Light grew by 59% during the fiscal year, further proving that consumers will flock to a product that delivers superior performance and the added benefit of all the volume with less weight to carry home. We are running our TV spots again this fall. If you haven’t seen them, I encourage you to follow the link below to watch them.
Our bleaching earth and animal health businesses continued to grow, while our industrial, sports turf and agricultural products delivered solid earnings. We created informative sales videos for a couple of these businesses. You will find these videos through the same link below.

During the fiscal year, we made great progress on our ten-year All-In-Quality initiative. We now have over 80 Gemba qualified teammates and are continuously
improving our processes on a company-wide basis. We raised our dividend for the tenth consecutive year and saw our stock price rise 45% during the twelve months of fiscal 2013. The compounded annual total return to our stakeholders over the last ten years has exceeded 13%!



The most exciting part of all of this is that we believe the best is yet to come. Thank you for being a loyal Oil-Dri stakeholder. We are doing our very best to Create Value from Sorbent Minerals.



Scan with a QR-Code reader or visit, http://vimeo.com/album/2572449



ODC Closing Stock Price

Fiscal Years End July 31,



## Financial Highlights

Fiscal Years End July 31,

<table><tr><td></td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Key Metrics</td><td></td><td></td><td></td></tr><tr><td>Dollar Amounts in Thousands</td><td></td><td></td><td></td></tr><tr><td>Return on Average Total Assets</td><td>8.2%</td><td>3.5%</td><td>5.5%</td></tr><tr><td>Return on Average Stockholders&#x27; Equity</td><td>15.5%</td><td>6.8%</td><td>9.7%</td></tr><tr><td>Cash, Cash Equivalents &amp; Investments</td><td>$ 42,494</td><td>$ 36,256</td><td>$ 33,722</td></tr><tr><td>Cash, Cash Equivalents &amp; Investments Less Notes Payable</td><td>$ 16,594</td><td>$ 6,556</td><td>$ 422</td></tr></table>

## Income Statement Data

Dollar Amounts in Thousands

<table><tr><td>Net Sales</td><td>$ 250,583</td><td>$ 240,681</td><td>$ 226,755</td></tr><tr><td>Income from Operations</td><td>$ 18,871</td><td>$ 10,079</td><td>$ 13,709</td></tr><tr><td>Net Income</td><td>$ 14,586</td><td>$ 6,098</td><td>$ 9,051</td></tr></table>





## Balance Sheet Data

Dollar Amounts in Thousands

<table><tr><td>Working Capital</td><td>$ 71,925</td><td>$ 66,080</td><td>$ 65,336</td></tr><tr><td>Total Assets</td><td>$ 183,559</td><td>$ 174,267</td><td>$ 173,393</td></tr><tr><td>Notes Payable</td><td>$ 25,900</td><td>$ 29,700</td><td>$ 33,300</td></tr></table>

## Per Share Data

<table><tr><td>Net Income per Diluted Share</td><td>$ 2.07</td><td>$ 0.85</td><td>$ 1.26</td></tr><tr><td>Book Value per Share</td><td>$ 14.96</td><td>$ 12.19</td><td>$ 13.63</td></tr><tr><td>Common Stock Price at July 31,</td><td>$ 31.86</td><td>$ 21.93</td><td>$ 20.69</td></tr></table>



## Board of Directors

Richard M. Jaffee
Chairman

Daniel S. Jaffee
President & Chief Executive Officer

Joseph C. Miller
Vice Chairman,
Independent Consultant

J. Steven Cole
President, Cole & Associates

Michael A. Nemeroff
President & Chief Executive Officer,
Vedder Price P.C.

Allan H. Selig
Commissioner of Major League
Baseball; President & Chairman,
Selig Lease Co.

Paul E. Suckow
Business Fellow & Adjunct Professor,
Finance & Economics,
Villanova University

Lawrence E. Washow
Board Member, First Bauxite Corp.
Board Member & Partner, Eudora
Global, LLC

## Executive Officers

Daniel S. Jaffee
President & Chief Executive Officer

Thomas F. Cofsky
Vice President, Manufacturing

Douglas A. Graham
Vice President, General Counsel
& Secretary

Daniel T. Smith
Vice President, Chief Financial Officer

Paul D. Ziemnisky
Vice President & General Manager
Consumer Packaged Goods

## Annual Meeting

On December 10, 2013 at 9:30 am CT, Oil-Dri Corporation of America will hold its 2013 Annual Meeting of Stockholders.

Please join us:

The Standard Club
320 South Plymouth Court
Chicago, Illinois 60604

## Investor Inquiries

NYSE: ODC

Please direct all investor relations inquiries to:

Reagan B. Culbertson
(312) 321-1515
info@oildri.com

Oil-Dri Corporation of America
Attention: Investor Relations
410 North Michigan Avenue
Suite 400
Chicago, Illinois 60611-4213

www.oildri.com

Stockholders with inquiries regarding stock transfers, change of ownership, change of address or dividend payments should contact the company’s registrar and transfer agent:

Computershare Investor Services
2 North LaSalle Street
Chicago, Illinois 60602-3711
(312) 360-5257

## Independent
Registered Public
Accounting Firm

PricewaterhouseCoopers LLP

## Forward-Looking
Statements

Certain statements in this report, including, those under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and those statements elsewhere in this report and other documents we file with the Securities and Exchange Commission contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” variations of such words and similar expressions are intended to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially including, those described in Item 1A (Risk Factors) of this report and other documents we file with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected or planned. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions or otherwise.

Cat's Pride and Fresh & Light are registered trademarks of Oil-Dri Corporation of America.