In reviewing the transcript of the Q4 teleconference, management supplied some helpful data. ODC shipped 967,000 tons of clay in FY09, with revenue for the year at $236,245,000. Thus revenue per ton was about $244.

We now know that Cat's Pride sales to Wal-Mart were above ODC's average revenue/ton. Let's assume that Cat's Pride sales to Wal-Mart brought in $250/ton. In one ton (2000 pounds) there are 142.86 14lb Cat's Pride Scoop jugs. Thus, $250/ton divided by 142.86 jugs equals $1.75 wholesale price that ODC charges for each 14lb Cat's Pride Scoop jug. Of course, it is possible that the price ODC receives is higher, and then the price per jug would be higher.

ODC's CEO said on the teleconference that over eight million 14lb Cat's Pride Scoop jugs were sold in Wal-Mart annually. Let's take eight million for this example, and multiply eight million by the $1.75 wholesale price. This example shows ODC's sales decreasing by $14 million in FY10. Thus, I suspect that ODC's price per ton for Cat's Pride Scoopable, is over $250/ton.

Biblioguy