v3.26.3
OPERATING SEGMENTS Level 1 (Notes)
 12 Months Ended
Jul. 31, 2026
OPERATING SEGMENTS [Abstract]  
Operating Segments OPERATING SEGMENTS
We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately, and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, the farm and fleet channel, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, sports field product users and marketers of consumer products. Given the similar nature of products and customers, sales of our silica gel based crystal litter are included with our cat litter products and reported as part of the Retail and Wholesale Products Group segment. The Business to Business Products Group customers include processors and refiners of edible oils, renewable diesel, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; and distributors of animal health and nutrition products. Our operating segments are also our reportable segments. The accounting policies of the segments are the same as those described in Note 1 of the Notes to the Consolidated Financial Statements.

Net sales for our principal products by segment are as follows (in thousands):
Business to Business Products GroupRetail and Wholesale Products Group
Year Ended July 31,
Product202620252024202620252024
Cat Litter$— $— $— $265,318 $255,926 $241,884 
Industrial and Sports— — — 48,328 47,050 45,232 
Agricultural and Horticultural49,232 44,338 33,558 — — — 
Bleaching Clay and Fluids Purification104,753 110,105 92,464 — — — 
Animal Health and Nutrition26,213 28,153 24,449 — — — 
Net Sales$180,198 $182,596 $150,471 $313,646 $302,976 $287,116 
Our chief operating decision maker (“CODM”) is our President and CEO. The CODM regularly reviews net sales, gross profit, and operating income by segment to assess profitability and assist in the allocation of resources. Net sales and operating income for each segment are provided below, along with the Significant Segment Expense categories that are regularly provided and used by the CODM when assessing segment profitability and the allocation of resources. The significant amounts within the segment operating expenses include cost of goods sold, compensation and benefits, and advertising. The other operating expenses in the table below is comprised of all other SG&A expenses which include but are not limited to travel, research & development, technical service support, and amortization of intangibles. Our CODM reviews the performance of each segment regularly by analyzing financial results in conjunction with our internal financial forecasts.

    The corporate expenses line in the table below represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual.
Year Ended July 31, 2026
(in thousands)
Business to Business Products Group
Retail and Wholesale Products Group
Total
Net Sales$180,198 $313,646 $493,844 
Cost of Goods Sold(108,603)(247,731)(356,334)
Gross Profit71,595 65,915 137,510 
Compensation and Benefits(9,644)(8,516)(18,160)
Advertising(1,078)(5,969)(7,047)
Other Operating Expenses(5,525)(7,700)(13,225)
Operating Income55,348 43,730 99,078 
Corporate Expenses(31,096)
Income from Operations67,982 
Total Other Income, Net 1,501 
Income Before Income Taxes $69,483 
Income Tax Expense $(12,514)
Net Income $56,969 

Year Ended July 31, 2025
(in thousands)
Business to Business Products Group
Retail and Wholesale Products Group
Total
Net Sales$182,596 $302,976 $485,572 
Cost of Goods Sold(106,691)(235,798)(342,489)
Gross Profit75,905 67,178 143,083 
Compensation and Benefits(8,748)(8,366)(17,114)
Advertising(1,115)(6,439)(7,554)
Other Operating Expenses(6,246)(8,236)(14,482)
Operating Income59,796 44,137 103,933 
Corporate Expenses(35,713)
Income from Operations68,220 
Total Other Expense, Net(2,009)
Income Before Income Taxes$66,211 
Income Tax Expense$(12,215)
Net Income$53,996 
Year Ended July 31, 2024
(in thousands)
Business to Business Products Group
Retail and Wholesale Products Group
Total
Net Sales$150,471 $287,116 $437,587 
Cost of Goods Sold(89,789)(222,704)(312,493)
Gross Profit60,682 64,412 125,094 
Compensation and Benefits(9,109)(6,645)(15,754)
Advertising(891)(8,148)(9,039)
Other Operating Expenses(5,093)(5,815)(10,908)
Operating Income45,589 43,804 89,393 
Corporate Expenses(37,748)
Income from Operations51,645 
Total Other Expense, Net(1,994)
Income Before Income Taxes49,651 
Income Tax Expense(10,225)
Net Income$39,426 

We do not rely on any operating segment asset allocations and do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance.

As of July 31,
Assets
20262025
(in thousands)
Business to Business Products$104,325 $104,857 
Retail and Wholesale Products217,787 200,644 
Unallocated assets 106,674 86,723 
Total Assets$428,786 $392,224 

The following is a summary by fiscal year of financial information by geographic region (in thousands):
202620252024
   Sales to unaffiliated customers by:
      Domestic operations$474,077 $465,451 $416,603 
      Foreign subsidiaries$19,767 $20,121 $20,984 
   Sales or transfers between geographic areas:
     Domestic operations$6,204 $6,534 $6,102 
Foreign subsidiaries$— $— $— 

As of July 31, 2026, long-lived assets were $172.2 million and $1.1 million for domestic and foreign operations respectively. As of July 31, 2025, long-lived assets were $162.8 million and $1.2 million for domestic and foreign operations respectively.
    
Sales to our largest customer are $90.8 million, $90.6 million, and $86.5 million in fiscal years 2026, 2025, and 2024, respectively. These sales are included in our Retail and Wholesale Products Group. There are no other customers with sales equal to or greater than 10% of our total sales.