|Calgon Carbon Announces Fourth Quarter Results|
PITTSBURGH, Feb. 22 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation (NYSE: CCC) announced results for the fourth quarter and year ended December 31, 2007.
The company reported net income of $3.8 million or $0.08 per common share on a fully diluted basis for the fourth quarter of 2007, as compared to a net loss of $8.4 million or a loss of $0.21 per common share for the fourth quarter of 2006.
Net income for the fourth quarter of 2007 consisted of income from continuing operations of $3.9 million and a loss from discontinued operations of $0.1 million. The net loss for the fourth quarter of 2006 consisted of a loss from continuing operations of $7.7 million and a loss from discontinued operations of $0.7 million. On a fully diluted basis, earnings per common share for the fourth quarter of 2006 consisted of a loss of $0.19 per common share from continuing operations and a loss of $0.02 per common share from discontinued operations.
Included in the loss for the fourth quarter and year ended 2006 was a goodwill impairment charge of $6.9 million related to the company's ultraviolet light business unit that is part of the company's Equipment segment.
Net sales from continuing operations for the fourth quarter of 2007 were $94.8 million versus fourth quarter 2006 sales of $79.4 million, an increase of 19.5%. Currency translation had a $3.1 million positive impact on sales for the fourth quarter of 2007 due to the stronger Euro and the British Pound Sterling.
For the fourth quarter of 2007, sales for the Activated Carbon and Service segment increased by 23.3% versus the fourth quarter of 2006. The increase was primarily due to higher volume and pricing for certain activated carbon products and service for the potable water market, and for higher pricing in the industrial process market. Equipment sales decreased by 7.2%, primarily due to lower demand for carbon adsorption equipment in the U.S. This was partially offset by higher demand for UV systems. Consumer sales for the fourth quarter of 2007 increased 35.4% due to higher demand for activated carbon cloth.
Net sales less the cost of products sold as a percentage of net sales for the fourth quarter of 2007 was 29.7%, versus 23.9% for the fourth quarter of 2006. The increase was primarily due to higher pricing on certain activated carbon products and services.
Selling, administrative and research expenses for the fourth quarter of 2007 increased by 13.3% versus the fourth quarter of 2006. This was principally due to employee-related expenses.
Net sales from continuing operations for the year ended December 31, 2007 were $351.1 million, versus $316.1 million for the comparable period in 2006, an increase of 11.1%. For the year, foreign currency translation had a $9.3 million positive impact on sales due to the stronger Euro and the British Pound Sterling.
For the year ended December 31, 2007, net income was $15.3 million, which consisted of income from continuing operations of $15.5 million and a loss of $0.2 million from discontinued operations. The company reported a net loss of $7.8 million for 2006, which consisted of a loss from continuing operations of $9.0 million and income from discontinued operations of $1.2 million. In addition to the $6.9 million impairment charge, results for the year ended December 31, 2006 included a pre-tax gain of $8.1 million related to an insurance settlement for business interruption and property damage to the company's Pearl River plant, which was caused by Hurricane Katrina, and an after-tax gain of $1.7 million on the sale of the company's charcoal and solvent recovery businesses.
Fully diluted earnings per share for the year ended December 31, 2007 were $0.31, all of which were from continuing operations. The loss per share on a fully diluted basis for 2006 was $0.20, consisting of a loss per share from continuing operations of $0.23 and earnings per share from discontinued operations of $0.03.
Calgon Carbon's board of directors did not declare a quarterly dividend.
Commenting on the results for the quarter, John S. Stanik, Calgon Carbon's president and chief executive officer said, "We are pleased with the quarter- over-quarter and year-over-year sales growth which reflect significant price increases and greater demand for certain activated carbon products and services in 2007.
Our earnings for the fourth quarter, however, did not fully benefit from the improvement in sales due to increases in the cost of certain raw materials and outsourced products. In addition, we took steps to improve our financial position that had an adverse affect on quarterly earnings. Also, the full impact of price increases instituted in October had not yet been fully realized in the quarter.
Going forward, the negative factors should have a much smaller impact on results. We intend to include cost increases on raw materials in our pricing structure, and we expect to achieve the pricing targets that we set in October."
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 Twelve Months Ended December 31, December 31, 2007 2006 2007 2006 Net Sales $94,805 $79,353 $351,124 $316,122 Cost of Products Sold 66,651 60,402 242,273 236,673 Depreciation and Amortization 4,229 4,622 17,248 18,933 Selling, Administrative & Research 17,425 15,379 65,047 66,251 Gain from Property Insurance Settlement - - - (8,072) Goodwill Impairment Charge - 6,940 - 6,940 Restructuring Charge - - - 7 88,305 87,343 324,568 320,732 Income (Loss) from Operations 6,500 (7,990) 26,556 (4,610) Interest Income (Expense) - Net (747) (1,080) (3,813) (5,155) Other Income (Expense) - Net (148) (192) (1,441) (2,209) Income (Loss) from Continuing Operations Before Income Tax and Equity in Income from Equity Investments 5,605 (9,262) 21,302 (11,974) Income Tax Provision (Benefit) 1,903 (1,521) 7,826 (2,676) Income (Loss) from Continuing Operations Before Equity in Income from Equity Investments 3,702 (7,741) 13,476 (9,298) Equity in Income from Equity Investments 211 75 1,977 286 Income (Loss) from Continuing Operations 3,913 (7,666) 15,453 (9,012) Income (Loss) from Discontinued Operations (70) (696) (166) 1,214 Net Income (Loss) $3,843 $(8,362) $15,287 $(7,798) Net Income (Loss) per Common Share Basic: Income (Loss) from Continuing Operations $.10 $(.19) $.38 $(.23) Income (Loss) from Discontinued Operations $(.00) $(.02) $(.00) $.03 Net Income (Loss) $.10 $(.21) $.38 $(.20) Diluted: Income (Loss) from Continuing Operations $.08 $(.19) $.31 $(.23) Income (Loss) from Discontinued Operations $(.00) $(.02) $(.00) $.03 Net Income (Loss) $.08 $(.21) $.31 $(.20) Weighted Average Shares Outstanding (Thousands) Basic 39,959 40,092 39,788 39,927 Diluted 51,102 40,092 50,557 39,927 Calgon Carbon Corporation Condensed Consolidated Balance Sheet (Dollars in thousands) (Unaudited) December 31, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $30,304 $5,631 Receivables 57,548 55,036 Inventories 81,280 70,339 Other current assets 20,546 17,706 Total current assets 189,678 148,712 Property, plant and equipment, net 105,512 106,101 Other assets 52,950 67,551 Total assets $348,140 $322,364 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $64,011 $- Other current liabilities 55,750 55,526 Total current liabilities 119,761 55,526 Long-term debt 12,925 74,836 Other liabilities 43,205 44,129 Total liabilities 175,891 174,491 Total shareholders' equity 172,249 147,873 Total liabilities and shareholders' equity $348,140 $322,364 Calgon Carbon Corporation Segment Data - Continuing Operations: Segment Sales 4Q07 4Q06 YTD 2007 YTD 2006 Carbon and Service 79,880 64,790 295,608 265,279 Equipment 10,449 11,257 41,328 37,884 Consumer 4,476 3,306 14,188 12,959 Total Sales (thousands) $94,805 $79,353 $351,124 $316,122 Segment Operating Income (loss)* 4Q07 4Q06 YTD 2007 YTD 2006 Carbon and Service 10,383 3,817 42,580 24,702 Equipment (132) (541) (1,087) (5,061) Consumer 478 296 2,311 1,629 Total Income from Operations (thousands) $10,729 $3,572 $43,804 $21,270 *Before depreciation, amortization, and restructuring charges
SOURCE Calgon Carbon Corporation