AMCOL International Corporation
2006
Corporate Report
Financial Highlights
Net Sales • $ in millions Gross Profit Margin • %
462
536
612
25.7
25.8
26.1
04
05
06
04
05
06
Operating Profit Margin • %
Diluted Earnings Per Share From Continuing Operations • $
7.8
8.8
9.4 1.18
1.60 1.03
04
05
06
04
05
06
$ in thousands
2004 $461,778 $118,568 $35,984 $31,565
2005 $535,924 $138,023 $47,076 $36,290
2006 $611,556 $159,466 $57,388 $49,663
Net Sales Gross Profit Operating Profit Income from Continuing Operations
2
To Our Shareholders
M a r c h 1 5 , 2006
New sales and profit records, several valuable acquisitions and a breakout performance in our Oilfield Services segment were highlights in a year of successful activity for AMCOL in 2006. Our net sales increased 14 percent, to $612 million, in 2006, and net income was $50 million, a 22 percent improvement over 2005. Diluted earnings per share for the year were $1.62, also up 22 percent from the year before. These are laudable results in a year that presented some challenges as well as notable successes. In the second and third quarters, AMCOL fell just short of the Street’s profit estimates, causing the stock to trade in the $20 range, but by year-end the stock had rebounded to the $27 level. And in 2006 — our 69th consecutive year of paying dividends — the Board awarded a 41 percent dividend increase. At year-end the dividend yield was 2 percent. Our 2006 results were somewhat confounded by numerous anomalies embodied in our earnings, which made it difficult to obtain a clear picture. The net income and diluted earnings per share for 2006 include a $0.02 per diluted share benefit from discontinued operations and a one-time, $0.09 per diluted share tax benefit relating to income tax refunds. In 2006, we bought back $6 million of our common stock. We continue to believe share repurchases are compelling from an economic standpoint, and our Board of Directors authorized a new share repurchase program in November that allows for the buyback of up to $15 million of AMCOL stock. Overall we have achieved industry-leading results by adhering to strategies crafted with a long-term view of the marketplace in each of our business segments. We successfully maintained a strong domestic market presence, retaining the No. 1 U.S. market position in metalcasting, bentonite lining technologies and bentonite-based building materials. At the same time, we continued our rich heritage of looking beyond borders to see the potential for our businesses around the world. Our international groups achieved outstanding growth in 2006 as a result of years of strategic investment and our ability to build in key international markets. Going forward, we see significant growth and expansion opportunities in Asia, Latin America, Europe and India. These dynamic markets are ripe for the business opportunities and products we offer. Similarly, we are gaining traction in Asia and Europe, where our business initiatives are producing double-digit revenue growth. As we evaluated international market opportunities, we also expanded our emphasis on exploration. In 2006, we identified several potential opportunities through our global exploration program. As a result, in October we acquired mining rights and a processing facility in Australia, and we continue to evaluate mineral opportunities around the world. We also initiated measures to reduce our cost structure, increase our ability to respond to the challenges we face, provide value for customers and enhance shareholder return. Last year was a year of change and advancement for AMCOL, and we look forward to additional progress as a result. Some things did not and will not change. We stand firm in our determination to provide real value to our customers, beyond just the products we supply. We are unwavering in our conviction that knowledge is a global asset that cannot and should not be singularly held anywhere in the company. We are aware of our customers’ global needs; we are equally aware of their individual local requirements. Finally, we remain absolutely aware that our vision, growth, customer loyalty and shareholder value are all dependent on one basic asset: a great team of people who are committed every day to making AMCOL a success. We have that asset and we proved it in 2006.
Larry Washow
President and Chief Executive Officer – AMCOL International Corporation
Markets >> >
• metalcasting • pet products • cat litter • oil & gas well drilling • agriculture/agronomics • ceramics • wine & clarification • paper • cosmetics • laundry detergents • nanocomposites coatings
Minerals
Metalcasting
Both our U.S. and Asia-Pacific Metalcasting groups posted positive performances in 2006, showing increased sales and building momentum to carry them through 2007. Despite a stagnant automotive market environment, our U.S. operations benefited from the extensive logistical network it uses to serve the North American foundry market. The U.S. group recorded another year of increased sales and operating profit — a result of our ongoing commitment to a globally integrated, knowledge- and value-based approach to each of the foundries we supply. In an increasingly global market, we are positioning ourselves for We continue to build on the principles and premises we believe are essential to a competitive position, setting us apart from our competitors and positioning ourselves to deliver the best premium solutions to our customers. ongoing success. At the end of 2006, we operated manufacturing facilities in China, Korea, Thailand, and Australia — all of which are major focus areas for global expansion. In addition, our joint venture operations in India and Japan are providing inroads to these important markets in Asia. In 2006, the Asia-Pacific group’s sales reached $34 million, representing a significant portion of the growth within the Minerals segment. This group consists of several manufacturing, sales and service operations in Asia and Australia, giving us a strong platform for future sales growth in these developing markets.
4
Minerals
44%
SALES BY SECTOR
2006
Metalcasting
38%
Specialty Minerals
18%
Pet Products
$ 2 9 5,686
2006 Minerals net sales $ in thousands
52%
% of 2006 AMCOL consolidated net sales
Specialty Minerals
Health & Beau t y S o l u t i o n s In 2006, Health & Beauty Solutions reached a meaningful milestone — sustained profitability. This group grew as a result of continued expansion of market share with existing customers as well as improved new product sales, expansion into national brands, and continued internationalization of the business. Our combination of internal scientists, research projects and customer collaborations continually set higher standards for product integrity. Exploring new possibilities, testing hypotheses, gaining an abundant variety of expert viewpoints — all are part of the work we do to provide scientifically substantiated products that with a measurable difference for our customers.
Detergent Specialties
Sales were sluggish for the Detergent Specialties group in the first half of 2006, but by year-end the group had more than doubled its profit from the first half. The group spent the first half of the year working through new market dynamics to achieve critical sales volumes. We emerged with significantly stronger business fundamentals at the end of the year, with successful trials completed on our new-generation detergent additive products, and with renewed confidence. We believe this group is poised for solid sequential quarterly growth in 2007.
Specialty Minerals
Petroleum Pro d u c t s
(cont.) Nanocomposites Our Nanocomposites Group has developed patented technologies for producing nanoscale clays suitable for incorporation into plastics and technologies for making nanocomposites themselves. Commercial nanoclay production began in 1998 and today we offer a variety of products under the Nanomer® trademark.
A strong demand for drilling products prompted us to add capacity and improve our product line in the Petroleum Products Group in 2006. Continuing our assistance with the efficient development of oil and gas resources throughout the world, we expanded our lignite operation. The added capacity allows us to increase our shippable tonnage and to add to and diversify our customer base around the world. In addition, we also introduced Organophilic Gelquest, creating a well-rounded product line in keeping with customer requirements.
Paper Technol o g i e s AMCOL Paper Technologies provides bentonite products for papermakers worldwide used in a variety of applications - retention, drainage and formation, pitch control, freshwater conditioning, and wastewater treatment. We have dedicated research facilities in the United States and England with additional product and material testing capabilities in Thailand and China. During 2006 we saw continued customer development efforts pay off in Europe and we expect to see further improvements and revenue generation in 2007.
6
Min e r a l s B r a n d s & P r o d u c t s > >
Accocarb Accoform Accopure Accosorb Additrol Aggrecor Agrogels Agro Lig Black Hills Carefree Kitty Cast-Rite Cat Tails Cellflow Cope Rope
Magnasperse MPC 220 Nanomax Nanomer Organo-Gro Pamper Kat Panther Creek Pelben Polargel Poly-Pore Polysec Poly-Sphere Premium Choice Probent Probond Progel Reeli-Klean Retain Rheospan Ripples Sefronite SPV Super-Treat Virisorb Volcarb Volclay
Pet P r o d u c t s
Rising material prices and some barriers to passing the increases along to customers lowered the Pet Product Group’s margins in 2006, but we entered 2007 with new strategies and new product offerings to generate increased profitability in coming months and years. We will capitalize on our state-of-the-art cat litter packaging facilities, giving our customers the option of pail, jug or bag. We’ll also expand our business through new product offerings such as Ripples™ pet treats and an agglomerated cat litter.
Drill Gel Duraclay Ecolocarb Enersol Flo-carb Hectabrite Hectalite Hevi-Sand Imperm Krystal-Klean KWK Macrobead Magnabrite
Markets >> >
• geosynthetic clay liners • landfills • lagoons • sewage • mining • industrial wastewater • municipal & remedial waste streams • drilling fluids • grouts • borehole sealants • rehabilitation chemicals • waterproofing systems • roof insulants
Environmental
L i n i n g Te c h n o l o g i e s
Our Lining Technologies Group continues as a global leader in the geosynthetic clay liner (GCL) market. Though solid waste remains the largest market for GCLs, we have achieved significant growth by developing non-solid waste markets such as mining, environmental remediation, storm water management, and decorative ponds. To ensure maximum return for every dollar of capital we invest, we have strategically positioned eight GCL manufacturing facilities in GCL markets that continue to develop around the world. In 2006, the group expanded with the newly formed Remediation Technologies Group, which focuses on products and technology for remediation of contaminated soil, water and sediment. In January 2007 we furthered our commitment with the Liquid Boot acquisition, which has a well established position in the rapidly growing brownfield redevelopment market.
Building Materials
A more efficient operating structure and improved global market penetration led to significant growth in the Building Materials Group in 2006. Innovation has increased the group’s sales and market share, and it remains a small but strong player in the construction products business. Our complementary technologies enabled us to create an entire suite of products in addition to traditional active waterproofing commodities, giving customers even more compelling reasons to buy from us. In 2006, we incorporated foundation drilling products into the group. As with previous endeavors, we anticipated our customers’ changing needs and adjusted our offerings to help them improve their productivity, efficiency and performance.
8
Enviro n m e n t a l B r a n d s & P r o d u c t s > >
Akwaseal Aquadrain Bentogrout Bentomat Bentoseal Claymax Coreflex Hydraul-Ez Hydrobar HydroShield Insta Pac Insta Vis Lakemat Liqui-Sorb Maxstop Premium Gel Puregold Quick-Solid Redstop Rel-Pac RM-10 Seal-X Shore Pac Sorbond Strataseal Strataseal HR Strongseal Super Gel Super Pac Swelltite Texdrain Ultragel Ultraseal VariFlo VersaFoam Volclay Volclay Panels Voltex Waterstop-RX
Environmental
55%
SALES BY SECTOR
2006
Lining Technologies
34%
Building Materials
11%
Other Construction Products
$ 2 0 3,128
2006 Environmental net sales $ in thousands
33%
% of 2006 AMCOL consolidated net sales
O t h e r C o n s t r u c t i o n P r o d ucts
Drilling Products
Responsible for sales into all non-oil and gas related drilling markets, the Drilling Products Group targets the horizontal directional drilling, waterwell, and environmental markets for North America.
Contracting Services
Our Contracting Services Group provides a variety of services in global markets that are closely linked to our key product lines. For this group, 2006 was a year of challenges. Contracting Services Group services range from installing geosynthetic products such as GCLs and geomembranes to providing repair services in below-grade concrete structures. Our development of this group demonstrates our commitment to adding customer value, which sets a new standard in the industry. Still, in 2006 we identified subtle but necessary enhancements to address the needs of our target customers and reinforce our position in several key markets. Change is never easy, but we believe the changes we made in 2006 will have positive results going forward.
Markets >> >
• wastewater filtration • pipeline • well testing
Oilfield Services
The business environment was strong for the oil and gas industry in 2006, and Oilfield Services had an outstanding year. Higher-than-historical commodity pricing prompted high demand for technical expertise and virtually all associated services. As a result, this segment realized $62 million in revenue in 2006, which was a 56 percent increase over 2005 and approximately 10 percent of AMCOL’s total revenue. Our deepening knowledge of customer requirements in key vertical markets, coupled with superior equipment, systems and services, helped drive the sales increase. Strong demand for services and contributions from late-year acquisitions were factors in our $11 million in operating profit — double that of the previous year. Leveraging our international assets and expertise, Oilfield Services continues to find large, high-value, international opportunities. Our business outside the United States has grown significantly over the past decade, and as capital investment shifts toward emerging markets, these areas will become more important going forward.
10
O i l f i e l d S e r v i c e s B r a n d s & P r o d u c t s > > Crudesep
Crudesorb Smart Canister
Oilfield Services
60%
SALES BY SECTOR
2006
Filtration
32%
Well Testing
8%
Other
$ 6 1,928
2006 Oilfield Services net sale s $ in thousands
10%
% of 2006 AMCOL consolidated net sales
Another important part of our future growth will be the successful integration of our 2006 acquisitions: Unique Equipment Rentals and Nitrogen Services. These acquisitions broaden our service offerings and strategically differentiate us from several of our competitors. We believe this diversification reduces volatility and provides not only a more stable earnings stream but also a higher market valuation. Our product and process offerings are organized according to the end markets we serve so we can understand the unique issues faced by each segment and positively impact customer performance. Our successful treatment of wastewater allows our customers to increase production efficiency, reduce total cost of operation, and conserve water and energy.
Fin ancial H i g h l i g h t s
In 2006, we saw record annual revenue for each of our segments and robust demand for our products worldwide. We continue to reinvest in our businesses, with capital expenditures totaling $42 million, compared with $29 million in 2005. We have consistently paid a quarterly dividend to our shareholders since 1937.
Return on Capital Employed • %
1
Return on Average Total Assets • %
2
16.9
18.6
17.5
10.5
10.3
11.3
04
05
06
04
05
06
Key Financial Ratios Current Ratio Debt to Equity Ratio Working Capital Turnover Asset Utilization
2004 3.1 15.5% 4.1 1.5
2005 3.3 14.0% 3.8 1.5
2006 3.2 38.1% 3.8 1.4
Cash Flow Summary • $ in millions Cash Provided From Operating Activities Cash Used in Investing Activities Cash Provided by (used in) Financing Activities
2004 $17.4 $26.1 9.3
2005 $36.3 $22.3 $(11.8)
2006 $46.7 $110.9 59.8
1 2
Computed using operating profit Computed using income from continuing operations
12
Revenue by Segment • 2006
Geographic Sales • 2006
Minerals
52%
Americas
69%
5%
Transportation1
10%
33%
Environmental
Oilfield Services
8%
Asia Pacific
23%
Europe
EBITDA From Continuing Operations $ in millions
2
Capital Expenditures & Acquisitions $ in millions
83.5 69.2 57.2 21.6 13.3
04 05 06 04 05
42.1 63.2 28.6
2.1
06
Expenditures | Acquisitions
Comparison of Cumulative Five Year Total Return $ in millions 2004 2005 EBITDA From Continuing Operations 2 $ in thousands $500
2006
An itemized reconcilliation of income from continuing operations to EBITDA (earnings before interest, taxes, depreciation and amortization) from continuing operations is as follows: 400 Income from continuing operations 300 Income taxes Interest Expense, Net 200 Depreciation and amortization 100 EBITDA 2, from continuing operations 0 12/01 12/02
AMCOL International Corp
1
$31,565 4,687 826 20,124 $57,202 12/03 12/04
$36,290 11,645 1,660 19,558 $69,153 12/05
$49,663 10,425 2,951 20,483 $83,522 12/06
Peer Group
S&P SmallCap 600 Index
Includes elimination of intersegment shipping revenues included within the corporate segment.
2
The Company believes this is one measure denoting the cash generating capability of an industrial company. Readers may benefit from understanding this measure when comparing AMCOL’s financial performance to other companies, although such comparisons may be affected by differences in the manner in which some companies compute EBITDA.
Dividend Payout Ratio • %
1
Return on Average Equity • %
1
31.1
32.2
30.6
18.3 15.3 15.4
04
05
06
04
05
06
The following graph sets forth a five-year comparison of cumulative total shareholder returns for: (i) AMCOL (which trades on the New York Stock Exchange); (ii) the S&P SmallCap 600 Index; and (iii) a customer peer group of publicly traded companies. The peer group consists of companies whose businesses, sales sizes, market capitalization and stock trading volumes are similar to that of AMCOL. The peer group consists of the following companies: Calgon Carbon Corporation, Compass Minerals International, Inc., Martin Marietta Materials, Inc., Minerals Technologies Inc., Oil-Dri Corporation of America and RPM International Inc. The graph assumes that $100 was invested at the close of business on December 31, 2001 and assumes the reinvestment of all dividends. All returns were calculated assuming dividend reinvestment on a quarterly basis. Returns were adjusted for spinoffs and other special dividends for both AMCOL and the peer group companies. Further, the tax-effectiveness of any distributions to shareholders was not taken into account. The returns of each company in the peer group have been weighted according to market capitalization.
Comparison of Cumulative Five Year Total Return
$500 400 300 200 100 0 12/01
12/02
AMCOL International Corp
12/03
12/04
S&P SmallCap 600 Index
12/05
Peer Group
12/06
Company Name / Index
AMCOL International Corp. S&P SmallCap 600 Index Peer Group
12/01
100 100 100
12/02
81.86 85.37 83.96
12/03
291.36 118.48 112.36
12/04
293.51 145.32 138.72
12/05
305.48 156.48 150.98
12/06
420.72 180.14 193.22
1
Computed using income from continuing operations
14
Shareowner Data Per Share Shareholders’ Equity Diluted Earnings From Continuing Operations Dividends Diluted Weighted Average Shares (millions)
2004 $7.55 $1.03 $.32 30.7
2005 $8.36 $1.18 $.38 30.8
2006 $9.85 $1.60 $.49 31.0
Consolidated Statement of Operations ($ in thousands) Year ended Dec. 31 2004 Net Sales Cost of Sales Gross Profit GS&A Operating Profit Interest Expense, Net Other Income, Net Income From Continuing Operations Before Income Taxes and Income from Affiliates and Joint Ventures Income Taxes Income From Continuing Operations Before Income from Affiliates and Joint Ventures Income From Affiliates and Joint Ventures Income From Continuing Operations Income From Discontinued Operations Net Income $461,778 343,210 118,568 82,584 35,984 (826) (86) 2005 $535,924 397,901 138,023 90,947 47,076 (1,660) (393) 2006 $611,556 452,090 159,466 102,078 57,388 (2,951) 231
35,072 4,687
45,023 11,645
54,668 10,425
30,385
33,378
44,243
1,180 31,565 – $31,565
2,912 36,290 4,755 $41,045
5,420 49,663 585 $50,248
SEGMENT RESULTS ($ in thousands) Year ended Dec. 31
MINERALS Net Sales Cost of Sales Gross Profit GS&A Operating Profit $264,167 211,228 52,939 22,307 $30,632
2004 100.0% 80.0% 20.0% 8.4% 11.6% $295,686 236,916 58,770 22,268 $36,502
2005 100.0% 80.1% 19.9% 7.5% 12.3% $316,751 255,064 61,687 24,983 $36,704
2006 100.0% 80.5% 19.5% 7.9% 11.6%
ENvIRONMENTAL Net Sales Cost of Sales Gross Profit GS&A Operating Profit $147,896 93,360 54,536 35,926 $18,610 100.0% 63.1% 36.9% 24.3% 12.6% $171,143 110,815 60,328 36,978 $23,350 100.0% 64.7% 35.3% 21.6% 13.6% $203,128 133,414 69,714 42,963 $26,751 100.0% 65.7% 34.3% 21.2% 13.2%
OILFIELD SER v ICES Net Sales Cost of Sales Gross Profit GS&A Operating Profit $24,827 18,205 6,622 4,710 $1,912 100.0% 73.3% 26.7% 19.0% 7.7% $39,703 26,711 12,992 7,674 $5,318 100.0% 67.3% 32.7% 19.3% 13.4% $61,928 39,933 21,995 10,934 $11,061 30.5% 64.5% 35.5% 17.7% 17.9%
TRANSPORTATION Net Sales Cost of Sales Gross Profit GS&A Operating Profit $40,650 36,179 4,471 2,751 $1,720 100% 89.0% 11.0% 6.8% 4.2% $49,708 43,775 5,933 3,216 $2,717 100.0% 88.1% 11.9% 6.5% 5.5% $50,228 44,158 6,070 3,198 $2,872 100.0% 87.9% 12.1% 6.4% 5.7%
CORPORATE Intersegment Shipping Revenues Intersegment Shipping Costs Gross Profit GS&A Nanocomposites/Business Development Expenses Operating Loss $(15,762) (15,762) – 13,244 3,646 $(16,890) – – – – – – $(20,316) (20,316) – 17,190 3,621 $(20,811) – – – – – – $(20,479) (20,479) – 17,507 2,493 $(20,000) – – – – – –
Certain statements contained in this Corporate Report constitute “forward-looking statements” made in reliance upon the safe harbor contained in Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include those relating to anticipated growth, stock prices, levels of capital expenditures, expansion into global markets, acquisition opportunities and the development of new products and services. AMCOL’s actual results for such periods may materially differ due to a variety of factors. Such factors include actual growth in AMCOL’s various markets; utilization of AMCOL’s various plants; operating costs; raw material prices; weather; currency exchange rates and devaluations; delays in development, production and marketing of new products; integration of acquired businesses; and other factors set forth from time to time in AMCOL’s Form 10-K and other reports filed with the Securities and Exchange Commission. Any of these factors could cause AMCOL’s actual results to differ materially from those described in the forward-looking statements.
16
AMCOL International Corporation
FORM 10-K
2006
E x e c u t i v e Management Team
Larry Washow | President & Chief Exec u t i v e O f f i c e r A M C O L Gary Castagna | Senior Vice President & C h i e f F i n a n c i a l O f f i c e r A M C O L Ryan McKendrick | President CETCO & V o l c l a y I n t e r n a t i o n a l Gary Morrison | President American Co l l o i d C o m p a n y
B o a r d o f D i rectors
John Hughes | age 64, became a director of the Company in 1984 and in May 1998 became Chairman of the Board of Directors. He is a member of the Executive Committee. Prior to his retirement, he was Chief Executive Officer of the Company from 1985 to May 2000. During his 35-year career, he held numerous positions with the Company. Jay D. Proops | age 65, became a director in 1995. He is a member of the Audit, Executive and Nominating/Governance Committees. He is the Chairman of the Nominating/ Governance Committee. He is a private investor and former Vice Chairman and co-founder of The Vigoro Corporation. Mr. Proops is also a director of Chemtura Corporation.
Larry Washow | age 53, became a director of the Company in 1998 and is a member of the Executive Committee. He has been President of the Company since May 1998 and Chief Executive Officer of the Company since May 2000. He was Senior Vice President of the Company prior thereto and served as President of a subsidiary of the Company.
Clarence O. Redman | age 64, became a director in 1989. He is a member of the Executive Committee and served as Secretary of the Company from 1982 to Feb. 2007. Prior to his retirement from Lord, Bissell & Brook, LLP, in February 2007, he served as counsel to the Company.
Dale E. Stahl | age 59, became a director in 1995. He is Arthur Brown | age 66, became a director of the Company in 1990. He is a member and Chairman of the Audit Committee and a member of the Compensation Committee. Prior to his retirement, he was President and Chief Executive Officer of Hecla Mining Company, a producer of silver and gold. Mr. Brown is currently the Chairman of the Board of Directors for Hecla Mining Company. a member of the Executive and Nominating/Governance Committees and Chairman of the Compensation Committee. Prior to his retirement in September 2003, he was President and CEO/COO of Inland Paperboard and Packaging, the corrugated and containerboard manufacturing subsidiary of Temple-Inland, Inc., since June 2000. Prior thereto, he was President and Chief Operating Officer of Gaylord Container Corporation, a manufacturer and distributor of brown paper Daniel P. Casey | age 64, became a director of the Company in 2002. He is a member of the Audit, Compensation, and Executive Committees. He is a retired Chief Financial Officer and Vice Chairman of the Board of Gaylord Container Corp., a manufacturer and distributor of brown paper and packaging products. Mr. Casey is also on the Board of Directors for Caraustar Industries, Inc., a recycled packaging company, and serves on its Audit Committee. Paul C. Weaver | age 44, became a director in 1995. He is a member and Chairman of the Executive Committee and a member of the Nominating/Governance Committee. In Robert E. Driscoll III | age 68, became a director in 1985, and served as a member of the Audit and Compensation Committees. He is a retired Dean and Professor of Law at the University of South Dakota. On February 13, 2007, he retired from the AMCOL International Board of Directors. 2002, Mr. Weaver joined Information Resources, Inc., as a Vice President. Prior thereto, he was Managing Partner of Audrey L. Weaver | age 52, became a director in 1997. She is a member of the Compensation Committee. Ms. Weaver is a private investor and is the first cousin to Mr. Weaver. and packaging products.
Consumer Aptitudes, Inc. Both companies engage in marketing research. Mr. Weaver is the first cousin to Ms. Weaver.
S h a r e h o l d e r Services
STOCK LISTING NYSE | ACO
Corporate Information
CORPORATE HEADqUARTERS AMCOL International Corp. 1500 West Shure Drive Arlington Heights, Illinois 60004-7803 U.S.A. T | 847.394.8730 F | 847.577.5576 www.amcol.com AvAILABLE INFORMATION The Company’s Chief Executive Officer, Lawrence E. Washow, certified to the New York Stock Exchange (NYSE) on May 12, 2006, pursuant to Section 303A.12 of the NYSE’s listing standards, that he was not aware of any violation by the Company of the NYSE’s corporate governance listing standards as of that date.
IN vESTOR I NqUIRIES Gary L. Castagna Senior Vice President, Chief Financial Officer
TRANSFER A GENT AND REGISTRAR American Stock Transfer and Trust Company 59 Maiden Lane New York, NY 10038-5441 U.S.A. T | 800.937.5449 718.921.8145 F | 718.921.8116
FOREIGN LOCATIONS Australia Brazil Canada
Copies of Certifications dated March 16, 2007 of the Company’s Chief Executive Officer, Lawrence E. Washow, and Chief Financial Officer, Gary L. Castagna, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, are attached as Exhibits 31.1 and 31.2, respectively, to the Company’s Annual Report on Form 10-K by going to the investor section of AMCOL International’s website at www.amcol. com, by going to the SEC’s website at www.sec. gov or by calling us at 847-394-8730. This information is also available at no charge by sending a request to the Company’s Investor Relations Service Center at AMCOL International, 1500 West Shure Drive, Arlington Heights, IL 60004.
INDEPENDENT REGISTERED ACCOUNTANTS Ernst & Young LLP Sears Tower 233 South Wacker Drive Chicago, Illinois 60606-6301 U.S.A.
Chile China Denmark Egypt France India
LEGAL COUNSEL Lord, Bissell & Brook LLP 111 South Wacker Drive Chicago, Illinois 60606-4410 U.S.A.
Ireland Japan Mexico Nigeria Poland
INTERIM REPORTS AMCOL’s quarterly earnings releases are posted at AMCOL’s Internet site: www.amcol.com. Or contact us at 847.394.8730 to have the releases mailed to you.
Singapore Scotland South Korea Spain Thailand United Kingdom
E n v i r o n m e n tal Considerations
A portion of this corporate report is printed on FSC-certified Mohawk Options 100% PC White, which is manufactured entirely with non-polluting wind energy and contains 100% post-consumer recycled fiber. The FSC trademark identifies forests that have been certified in accordance with the rules of the Forest Stewardship Council.
Some of the advantages derived from using Mohawk Options 100% PC are: 66.75 trees preserved for the future 28,354 gallons of water/wastewater flow saved 3,138 lbs. solid waste not generated 47,280,400 BTU’s energy not consumed 192.75 lbs. waterbourne waste not created 6177 lbs. net greenhouse gases prevented
Cert no. XXX-XXX-000
AMCOL International Corporation