|Calgon Carbon Announces Second Quarter Results|
PITTSBURGH, Aug. 2 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation (NYSE: CCC) announced results for the second quarter ended June 30, 2007.
The company reported net income and income from continuing operations of $4.5 million or $0.09 per common share on a fully diluted basis for the second quarter of 2007, as compared to net income of $2.4 million or $0.06 per common share on a fully diluted basis for the second quarter of 2006, and income from continuing operations of $2.1 million or $0.05 per common share on a fully diluted basis for the second quarter of 2006.
For the second quarter of 2007, income from operations was $8.6 million versus income of $3.0 million for the comparable period in 2006. For the second quarter of 2006, income from operations included a $4.9-million pre-tax gain from a property insurance settlement for damage at the company's Pearl River plant which was caused by Hurricane Katrina in 2005.
Net sales for the second quarter of 2007 were $88.4 million versus second quarter 2006 net sales of $80.5 million, an increase of 9.8%. Currency translation had a $1.8-million positive impact on sales for the second quarter of 2007 due to the stronger Euro and the British Pound Sterling.
For the second quarter of 2007, sales for the Activated Carbon and Service segment increased by 10.8% versus the second quarter of 2006. The increase was primarily due to higher pricing and demand for activated carbon/service products in the industrial process and environmental air treatment markets and higher pricing in the potable water market. Equipment sales increased by 12.8% in the second quarter of 2007 versus the second quarter of 2006, due to higher demand for odor control systems. A 16.0% decrease in Consumer sales for the second quarter of 2007 was attributable to lower demand for Preserve(R) products.
Net sales less the cost of products sold as a percentage of net sales for the second quarter of 2007 was 32.7% versus 25.5% for the second quarter of 2006. The increase was primarily due to higher pricing on certain carbon and service products.
Selling, administrative and research expenses for the second quarter of 2007 decreased 9.6% versus the second quarter of 2006, primarily due to lower legal expenses.
For the second quarter of 2007, the company's income tax provision was $3.1 million versus a benefit of $0.9 million for the comparable period in the prior year. The company recorded its second quarter 2007 tax provision at a 43.7% rate and estimates that its tax rate for the full year will approximate 50%. The company's tax rate is impacted by many factors including tax liabilities in foreign jurisdictions without benefit of a foreign tax credit in the U.S., the expiration of the Extraterritorial Income Exclusion, the recording of tax contingencies for uncertain tax positions and the projection of taxable income by jurisdiction.
Equity in income from equity investments was $0.4 million for the second quarter of 2007 versus $0.0 million for the comparable period in 2006. The increase was primarily due to lower cost of products sold and a favorable mix for products manufactured by the company's joint venture with Mitsubishi Chemical Company in Japan.
Calgon Carbon's board of directors did not declare a quarterly dividend.
Net income and income from continuing operations for the first half of 2007 was $6.5 million or $0.14 per common share on a fully diluted basis, as compared to net income of $1.0 million or $0.03 per common share on a fully diluted basis for the first half of 2006 and a loss from continuing operations of $0.9 million or $0.02 per common share on a fully diluted basis.
For the six months ended June 30, 2007, income from operations was $13.5 million, versus $1.8 million for the first half of 2006. The 2006 income included a $4.9-million pre-tax gain from a property insurance settlement.
Commenting on the quarter, John Stanik, Calgon Carbon's chairman and chief executive officer, said, "We are pleased with second quarter results, as they represent progress in achieving higher prices for our carbon and service products and lower legal expenses, both year-over-year and sequentially. The results also reflect a lower cost structure that resulted from our re- engineering plan. These are key drivers for continued improvement in our company's performance in 2007."
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air cleaner and safer.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This document contains certain statements that are forward-looking relative to the company's future strategy and performance. They involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to be materially different from any future performance.
Calgon Carbon Corporation Condensed Consolidated Statement of Income (Dollars in thousands except per share data) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Net Sales $88,428 $80,510 $171,458 $157,089 Cost of Products Sold 59,556 59,962 117,980 117,373 Depreciation and Amortization 4,331 4,794 8,592 9,592 Selling, Administrative & Research 15,916 17,611 31,350 33,180 Gain from Property Insurance Settlement - (4,899) - (4,899) Restructuring Charge - 1 - 7 79,803 77,469 157,922 155,253 Income from Operations 8,625 3,041 13,536 1,836 Interest Income (Expense) - Net (1,010) (1,290) (2,158) (2,778) Other Income (Expense) - Net (408) (514) (811) (1,358) Income (Loss) from Continuing Operations Before Income Tax and Equity in Income (Loss) from Equity Investments 7,207 1,237 10,567 (2,300) Income Tax Provision (Benefit) 3,147 (925) 5,527 (1,270) Income (Loss) from Continuing Operations Before Equity in Income (Loss) from Equity Investments 4,060 2,162 5,040 (1,030) Equity in Income (Loss) from Equity Investments 402 (23) 1,456 180 Income (Loss) from Continuing Operations 4,462 2,139 6,496 (850) Income from Discontinued Operations - 297 - 1,872 Net Income $4,462 $2,436 $6,496 $1,022 Net Income (Loss) per Common Share Basic: Income (Loss) from Continuing Operations $.11 $.05 $.16 $(.02) Income from Discontinued Operations $ - $.01 $ - $.05 Net Income $.11 $.06 $.16 $.03 Diluted: Income (Loss) from Continuing Operations $.09 $.05 $.14 $(.02) Income from Discontinued Operations $ - $.01 $ - $.05 Net Income $.09 $.06 $.14 $.03 Weighted Average Shares Outstanding (Thousands) Basic 40,291 39,876 40,258 39,865 Diluted 47,745 40,077 45,807 39,865 Calgon Carbon Corporation Segment Data - Continuing Operations: Segment Sales 2Q07 2Q06 YTD 2007 YTD 2006 Carbon and Service 74,723 67,435 143,406 132,620 Equipment 10,658 9,446 21,624 17,887 Consumer 3,047 3,629 6,428 6,582 Total Sales (thousands) $88,428 $80,510 $171,458 $157,089 Segment Operating Income (loss)* 2Q07 2Q06 YTD 2007 YTD 2006 Carbon and Service 13,015 9,061 21,488 14,109 Equipment (607) (2,013) (736) (3,672) Consumer 548 788 1,376 998 Total Income from continuing operations (thousands) $12,956 $7,836 $22,128 $11,435 *Before depreciation, amortization, and restructuring charges Calgon Carbon Corporation Condensed Consolidated Balance Sheet (Dollars in thousands) (Unaudited) June 30, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $16,628 $5,631 Receivables 61,542 55,036 Inventories 71,466 70,339 Other current assets 17,852 17,706 Total current assets 167,488 148,712 Property, plant and equipment, net 102,690 106,101 Other assets 56,843 67,551 Total assets $327,021 $322,364 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $63,649 $ - Other current liabilities 48,909 55,526 Total current liabilities 112,558 55,526 Long-term debt 12,925 74,836 Other liabilities 46,229 44,129 Total liabilities 171,712 174,491 Total shareholders' equity 155,309 147,873 Total liabilities and shareholders' equity $327,021 $322,364
SOURCE Calgon Carbon Corporation
Web site: http://www.calgoncarbon.com