EX-99.1 2 v112583_ex99-1.htm
Exhibit 99.1
 
P. O. BOX 717 PITTSBURGH, PA 15230-0717 (412) 787-6700
 
 
CALGON CARBON ANNOUNCES FIRST QUARTER RESULTS

PITTSBURGH, PA - May 2, 2008 - Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2008.

The company reported net income of $10.9 million for the first quarter of 2008, as compared to net income of $2.0 million for the first quarter of 2007. On a fully diluted share basis, earnings per common share for the first quarter of 2008 were $0.21 versus $0.05 for the first quarter of 2007.

Included in the first quarter results is a non-recurring pre-tax gain of $9.3 million from the settlement of a lawsuit involving Calgon Carbon’s purchase of the common stock of Advanced Separation Technologies Incorporated (AST) in 1996. On an after-tax basis the gain was $5.7 million, or $0.11 per common share on a fully diluted basis.

Net sales for the first quarter of 2008 were $90.3 million versus first quarter 2007 net sales of $83.0 million, an increase of 8.8%. Currency translation had a
$2.7-million positive impact on sales for the first quarter of 2008 due to the stronger Euro and the British Pound Sterling.

For the first quarter of 2008, sales for the Activated Carbon and Service segment increased by 12.0% versus the first quarter of 2007. The increase was due to higher demand and pricing in the food, environmental water treatment, respirator, and mercury removal markets and to higher demand in the environmental air treatment and metals recovery markets. Equipment sales declined by 11.6% in the first quarter of 2008 versus the comparable period in 2007, primarily due to lower demand for ion exchange systems, which was partially offset by an increase in demand for ultraviolet light systems. A 10.5% increase in Consumer sales for the first quarter of 2008 was attributable to higher demand for PreZerve® products and carbon cloth.

Net sales less the cost of products sold as a percentage of net sales for the first quarter of 2008 was 31.6% versus 29.6% for the first quarter of 2007. The increase was primarily due to higher pricing on certain carbon and service products.
 
Selling, administrative and research (SG&A) expenses for the first quarter of 2008 increased by 5.6% versus the comparable period in 2007. In the first quarter of 2007, SG&A expense included the positive effect of a settlement with Trojan Technologies related to the company’s patents for the use of ultraviolet light to disinfect drinking water.
 
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Equity in income from equity investments was $0.4 million for the first quarter of 2008 versus $1.1 million for the comparable period in 2007. The decrease was primarily due to higher product costs.

Calgon Carbon’s board of directors did not declare a quarterly dividend.

Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “We are off to a good start in 2008. The first quarter results reflect continued progress in obtaining fair market prices for our activated carbon products and services. Revenue growth, derived from price increases and sales of outsourced products, will remain a key driver of the company’s performance throughout the year.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making air and water 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.


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Calgon Carbon Corporation
 Condensed Consolidated Statement of Income
 (Dollars in thousands except per share data)
 (Unaudited)
 
   
Quarter Ended
 
   
March 31,
 
   
2008
 
2007
 
Net Sales
 
$
90,331
 
$
83,030
 
Cost of Products Sold
   
61,765
   
58,424
 
Depreciation and Amortization
   
3,926
   
4,261
 
Selling, Administrative & Research
   
16,291
   
15,434
 
Gain from AST Settlement
   
(9,250
)
 
-
 
     
72,732
   
78,119
 
Income from Operations
   
17,599
   
4,911
 
Interest Expense - Net
   
(839
)
 
(1,148
)
Other Expense - Net
   
(90
)
 
(403
)
Income From Operations Before Income Tax and
             
 Equity in Income from Equity Investments
   
16,670
   
3,360
 
Income Tax Provision
   
6,234
   
2,380
 
Income from Operations Before
             
 Equity in Income from Equity Investments
   
10,436
   
980
 
Equity in Income from Equity Investments
   
438
   
1,054
 
Net Income
 
$
10,874
 
$
2,034
 
Net Income per Common Share
             
 Basic
             
 Diluted
 
$
.27
 
$
.05
 
   
$
.21
 
$
.05
 
Weighted Average Shares
             
 Outstanding (Thousands)
             
 Basic
   
40,240
   
40,225
 
 Diluted
   
51,756
   
42,661
 





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 Calgon Carbon Corporation
 Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
   
March 31,
 
December 31,
 
   
2008
 
2007
 
ASSETS
         
Current assets:
         
 Cash and cash equivalents
 
$
35,135
 
$
30,304
 
 Receivables
   
58,524
   
57,548
 
 Inventories
   
83,761
   
81,280
 
 Other current assets
   
19,661
   
20,546
 
 Total current assets
   
197,081
   
189,678
 
Property, plant and equipment, net
   
110,828
   
105,512
 
Other assets
   
52,492
   
52,950
 
 Total assets
 
$
360,401
 
$
348,140
 
LIABILITIES AND SHAREHOLDERS' EQUITY
             
Current liabilities:
             
 Short-term debt
 
$
1,566
 
$
1,504
 
 Current portion of long-term debt
   
62,662
   
62,507
 
 Other current liabilities
   
52,251
   
55,750
 
 Total current liabilities
   
116,479
   
119,761
 
Long-term debt
   
12,925
   
12,925
 
Other liabilities
   
42,127
   
43,205
 
 Total liabilities
   
171,531
   
175,891
 
Total shareholders' equity
   
188,870
   
172,249
 
 Total liabilities and shareholders' equity
 
$
360,401
 
$
348,140
 
 
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 Calgon Carbon Corporation
Segment Data:
 
         
Segment Sales
 
1Q08
 
1Q07
 
           
Carbon and Service
   
76,898
   
68,683
 
Equipment
   
9,697
   
10,966
 
Consumer
   
3,736
   
3,381
 
               
Total Sales (thousands)
 
$
90,331
 
$
83,030
 
               
Segment
             
Operating Income (Loss)*
   
1Q08
   
1Q07
 
               
Carbon and Service
   
17,376
   
8,473
 
Equipment
   
3,443
   
(129
)
Consumer
   
706
   
828
 
Total Income from
             
 Operations (thousands)
 
$
21,525
 
$
9,172
 
 
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