|Calgon Carbon Announces Third Quarter Results|
PITTSBURGH, Nov. 2 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation (NYSE: CCC) announced results for the third quarter ended September 30, 2007.
The company reported net income of $4.9 million or $0.10 per common share on a fully diluted basis for the third quarter of 2007, as compared to a net loss of $0.5 million or $0.01 per common share on a fully diluted basis for the third quarter of 2006.
For the third quarter of 2007, income from operations was $6.5 million versus $1.5 million for the comparable period in 2006. Results for the third quarter of 2006 included a pre-tax gain of $3.2 million related to an insurance settlement for business interruption which was caused by Hurricane Katrina in 2005.
Net sales for the third quarter of 2007 were $84.9 million versus third quarter 2006 sales of $79.7 million, an increase of 6.5%. Currency translation had a $2.0-million positive impact on sales for the third quarter of 2007 due to the stronger Euro and the British Pound Sterling.
For the third quarter of 2007, sales for the Activated Carbon and Service segment increased by 6.6% versus the third quarter of 2006. The increase was primarily due to higher pricing for activated carbon products and services and higher volume in the industrial process and environmental air treatment markets. Equipment sales increased by 5.9% in the third quarter of 2007 versus the third quarter of 2006. The increase resulted primarily from higher demand for odor control equipment and from systems that utilize ultraviolet light for disinfection of drinking water and wastewater. A 6.9% increase in Consumer sales was attributable to higher demand for activated carbon cloth.
Net sales less the cost of products sold as a percentage of net sales for the third quarter of 2007 was 32.1% versus 26.1% for the third quarter of 2006. The increase was primarily the result of higher pricing and volume on certain carbon and service products.
Selling, administrative and research expenses for the third quarter of 2007 were $16.3 million, a decrease of 8.0% from the third quarter of 2006. The decline was primarily the result of lower legal expenses.
For the third quarter of 2007, the company's income tax provision was $0.4 million versus $0.1 million for the comparable period in the prior year. The company's third quarter effective tax rate of 8% reflects a reduction in its estimated annualized effective tax rate from 52% as of June 30, 2007 to 38% as of September 30, 2007, including the third quarter reversal of uncertain tax position liabilities due to statute expirations. The company's tax rate is also impacted by other factors which include tax liabilities in foreign jurisdictions without benefit of a foreign tax credit in the U.S., the recording of tax contingencies for uncertain tax positions, and the projection of taxable income by jurisdiction.
Net sales for the nine months ended September 30, 2007 were $256.3 million, versus $236.8 million for the comparable period in 2006, an increase of 8.3%. Year to date, foreign currency translation had a $6.2-million positive impact on sales due to the stronger Euro and the British Pound Sterling.
For the nine months ended September 30, 2007, income from operations was $20.1 million, versus $3.4 million for the comparable period in 2006. Net income for the nine months ended September 30, 2007 was $11.4 million, as compared to $0.6 million for the comparable period in 2006. Net income for the nine months ended September 30, 2006 was comprised of a loss of $1.3 million from continuing operations and income from discontinued operations of $1.9 million. Results for the nine months ended September 30, 2006 included pre-tax gains of $5.4 million on the sales of the company's charcoal and solvent recovery businesses and $8.1-million from insurance settlements related to business interruption and damage at the company's Pearl River Plant due to Hurricane Katrina.
Fully diluted earnings per share for the nine months ended September 30, 2007 were $0.24, versus $0.01 for the comparable period in 2006. Fully diluted earnings per common share for the nine months ended September 30, 2006 were comprised of a loss of $0.03 from continuing operations and earnings of $0.05 per common share from discontinued operations.
Calgon Carbon's board of directors did not declare a quarterly dividend.
Commenting on the results, John Stanik, chairman, president and chief executive officer of Calgon Carbon, said, "While we recognize the significant impact that our lower tax provision had on the third quarter results, we are pleased with the progress shown in the quarter. Higher prices on activated carbon and service products, a lower cost structure, and lower legal expenses contributed to improved results year-over-year. These three factors will play a continuing role in achieving year-over-year improvement in the fourth quarter."
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
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 Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Net Sales $84,861 $79,680 $256,319 $236,769 Cost of Products Sold 57,642 58,897 175,622 176,270 Depreciation and Amortization 4,427 4,719 13,019 14,311 Selling, Administrative & Research 16,272 17,693 47,622 50,873 Gain from Property Insurance Settlement - (3,173) - (8,072) Restructuring Charge - - - 7 78,341 78,136 236,263 233,389 Income from Operations 6,520 1,544 20,056 3,380 Interest Income (Expense) - Net (908) (1,297) (3,066) (4,075) Other Income (Expense) - Net (482) (660) (1,293) (2,018) Income (Loss) from Continuing Operations Before Income Tax and Equity in Income from Equity Investments 5,130 (413) 15,697 (2,713) Income Tax Provision (Benefit) 396 114 5,923 (1,156) Income (Loss) from Continuing Operations Before Equity in Income from Equity Investments 4,734 (527) 9,774 (1,557) Equity in Income from Equity Investments 310 31 1,766 211 Income (Loss) from Continuing Operations 5,044 (496) 11,540 (1,346) Income (Loss) from Discontinued Operations (96) 38 (96) 1,910 Net Income (Loss) $4,948 $(458) $11,444 $564 Net Income (Loss) per Common Share Basic: Income (Loss) from Continuing Operations $.12 $(.01) $.28 $(.03) Income from Discontinued Operations $(.00) $.00 $(.00) $.05 Net Income (Loss) $.12 $(.01) $.28 $.01 Diluted: Income (Loss) from Continuing Operations $.10 $(.01) $.24 $(.03) Income from Discontinued Operations $(.00) $.00 $(.00) $.05 Net Income (Loss) $.10 $(.01) $.24 $.01 Weighted Average Shares Outstanding (Thousands) Basic 40,357 39,882 40,289 39,871 Diluted 50,358 39,882 47,324 39,871 Calgon Carbon Corporation Condensed Consolidated Balance Sheet (Dollars in thousands) (Unaudited) September 30, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $19,371 $5,631 Receivables 58,157 55,036 Inventories 78,227 70,339 Other current assets 20,069 17,706 Total current assets 175,824 148,712 Property, plant and equipment, net 103,187 106,101 Other assets 54,910 67,551 Total assets $333,921 $322,364 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $63,818 $- Other current liabilities 49,683 55,526 Total current liabilities 113,501 55,526 Long-term debt 12,925 74,836 Other liabilities 46,073 44,129 Total liabilities 172,499 174,491 Total shareholders' equity 161,422 147,873 Total liabilities and shareholders' equity $333,921 $322,364 Calgon Carbon Corporation Segment Data - Continuing Operations: Segment Sales 3Q07 3Q06 YTD 2007 YTD 2006 Carbon and Service 72,322 67,869 215,728 200,489 Equipment 9,255 8,740 30,879 26,627 Consumer 3,284 3,071 9,712 9,653 Total Sales (thousands) $84,861 $79,680 $256,319 $236,769 Segment Operating Income (loss)* 3Q07 3Q06 YTD 2007 YTD 2006 Carbon and Service 10,709 6,776 32,197 20,885 Equipment (219) (848) (955) (4,520) Consumer 457 335 1,833 1,333 Total Income from continuing operations (thousands) $10,947 $6,263 $33,075 $17,698 *Before depreciation, amortization, and restructuring charges
SOURCE Calgon Carbon Corporation
CONTACT: Gail Gerono of Calgon Carbon Corporation, +1-412-787-6795