EX-99.1 2 v121466_ex99-1.htm Unassociated Document
 
 
P. O. BOX 717          PITTSBURGH, PA         15230-0717            (412) 787-6700
 
For Immediate Release      
Contact: Gail A. Gerono
412 787-6795

CALGON CARBON ANNOUNCES SECOND QUARTER RESULTS

PITTSBURGH, PA - July 31, 2008 - Calgon Carbon Corporation (NYSE:CCC)
announced results for the second quarter ended June 30, 2008.

The company reported net income of $13.3 million for the second quarter of 2008, as compared to net income of $4.5 million for the second quarter of 2007. Net income for the second quarter of 2008 consisted of income from continuing operations of $9.8 million and income from discontinued operations of $3.5 million which represents the final adjustment to the sale price of the company’s charcoal business that was sold in the first quarter of 2006. On a fully diluted basis, net income per common share for the second quarter of 2008 was $0.25, consisting of $0.19 from continuing operations and $0.06 from discontinued operations. This compares with fully diluted net income per common share of $0.09 for the second quarter of 2007, all of which was from continuing operations.

Income from operations for the second quarter of 2008 was $16.1 million versus income from operations of $8.6 million for the comparable period in 2007.

Net sales for the second quarter of 2008, were $108.5 million versus second quarter 2007 sales of $88.4 million, an increase of 22.7%. Currency translation had a $3.5-million positive impact on sales for the second quarter of 2008 due to the strong Euro.

For the second quarter of 2008, sales of the Activated Carbon and Service segment increased by 27.5% versus the second quarter of 2007. The increase was primarily due to higher demand and pricing in the food, potable water, and environmental air treatment markets, and higher pricing in the environmental water treatment and industrial process markets. Equipment sales were comparable to the second quarter of 2007. A 19.6% decrease in consumer sales for the second quarter of 2008 was attributable to lower demand for the company’s PreZerve® products.

Net sales less the cost of products sold as a percentage of net sales for the second quarter of 2008 was 34.5% versus 32.7% for the second quarter of 2007. The increase was due primarily to higher pricing on certain activated carbon and service products.



Selling, administrative and research expenses for the second quarter of 2008 increased 7.8% versus the second quarter of 2007, principally due to higher employee-related costs which were partially offset by a decrease in bad debt expense. Selling, administrative and research expenses as a percentage of sales were 15.8% as compared to 18.0% for the second quarter of 2007.

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

Net income for the six months ended June 30, 2008 was $24.1 million versus $6.5 million for the comparable period of 2007. Net income for the first half of 2008 included a non-recurring after-tax gain of $5.7 million from the settlement of a lawsuit and a non-recurring after-tax gain of $3.5 million related to the sale of the company’s charcoal business. Fully diluted net income per common share for the first half of 2008 was $0.47, which consisted of $0.40 from continuing operations and $0.07 from discontinued operations. Fully diluted net income per common share for the first half of 2007 was $0.14, all of which was from continuing operations.

Income from operations for the six months ended June 30, 2008 was $33.7 million as compared to income from operations of $13.5 million for the first half of 2007.

Commenting on the results, John Stanik, Calgon Carbon’s chairman, president and chief executive officer said, “We are pleased with the results. Sales for the second quarter were the highest quarterly sales in our company’s 23-year history. Gross margin showed significant improvement - both year-over-year and sequentially. In addition, we made solid progress toward our strategic goal of reducing SG&A as a percentage of sales. These metrics reflect our continued success in obtaining higher value for our activated carbon products and services.”

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
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2008
 
2007
 
2008
 
2007
 
                   
Net Sales
 
$
108,476
 
$
88,428
 
$
198,807
 
$
171,458
 
                           
Cost of Products Sold
   
71,021
   
59,556
   
132,786
   
117,980
 
                           
Depreciation and Amortization
   
4,199
   
4,331
   
8,125
   
8,592
 
                           
Selling, Administrative & Research
   
17,154
   
15,916
   
33,445
   
31,350
 
                           
Gain from AST Settlement
   
-
   
-
   
(9,250
)
 
-
 
                           
     
92,374
   
79,803
   
165,106
   
157,922
 
                           
Income from Operations
   
16,102
   
8,625
   
33,701
   
13,536
 
                           
Interest Expense - Net
   
(779
)
 
(1,010
)
 
(1,618
)
 
(2,158
)
                           
Other Expense - Net
   
(480
)
 
(408
)
 
(570
)
 
(811
)
                           
Income From Continuing Operations Before Income Tax and
   
14,843
   
7,207
   
31,513
   
10,567
 
Equity in Income (Loss) from Equity Investments
                         
                           
Income Tax Provision
   
4,887
   
3,147
   
11,121
   
5,527
 
                           
Income from Continuing Operations Before Equity in
                         
Income (Loss) from Equity Investments
   
9,956
   
4,060
   
20,392
   
5,040
 
                           
Equity in Income (Loss) from Equity Investments
   
(139
)
 
402
   
299
   
1,456
 
                           
Income from Continuing Operations
   
9,817
   
4,462
   
20,691
   
6,496
 
                           
Income from Discontinued Operations
   
3,447
   
-
   
3,447
   
-
 
                           
Net Income
 
$
13,264
 
$
4,462
 
$
24,138
 
$
6,496
 
                           
Net Income per Common Share
                         
Basic:
                         
Income from Continuing Operations
 
$
.24
 
$
.11
 
$
.51
 
$
.16
 
Income from Discontinued Operations
 
$
.09
 
$
-
 
$
.09
 
$
-
 
Total
 
$
.33
 
$
.11
 
$
.60
 
$
.16
 
 
                         
Diluted:
                         
Income from Continuing Operations
 
$
.19
 
$
.09
 
$
.40
 
$
.14
 
Income from Discontinued Operations
 
$
.06
 
$
-
 
$
.07
 
$
-
 
Total
 
$
.25
 
$
.09
 
$
.47
 
$
.14
 
                           
Weighted Average Shares
                         
  Outstanding (Thousands)
                         
Basic
   
40,559
   
40,291
   
40,400
   
40,258
 
                           
Diluted
   
52,025
   
47,745
   
51,891
   
45,807
 
 


Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
   
June 30,
 
December 31,
 
 
 
2008
 
2007
 
           
ASSETS
         
           
Current assets:
         
           
Cash and cash equivalents
 
$
38,549
 
$
30,304
 
               
Receivables
   
66,430
   
57,548
 
               
Inventories
   
86,729
   
81,280
 
               
Other current assets
   
23,227
   
20,546
 
               
Total current assets
   
214,935
   
189,678
 
 
             
Property, plant and equipment, net
   
112,260
   
105,512
 
               
Other assets
   
53,867
   
52,950
 
               
Total assets
 
$
381,062
 
$
348,140
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
             
               
Current liabilities:
             
               
Short-term debt
 
$
1,600
 
$
1,504
 
 
             
Current portion of long-term debt
   
65,744
   
62,507
 
               
Other current liabilities
   
55,317
   
55,750
 
               
Total current liabilities
   
122,661
   
119,761
 
               
Long-term debt
   
10,000
   
12,925
 
               
Other liabilities
   
41,668
   
43,205
 
               
Total liabilities
   
174,329
   
175,891
 
               
Total shareholders' equity
   
206,733
   
172,249
 
               
Total liabilities and shareholders' equity
 
$
381,062
 
$
348,140
 
 

 

Calgon Carbon Corporation
           
 
Segment Data:
                 
                   
Segment Sales
 
2Q08
 
2Q07
 
YTD 2008
 
YTD 2007
 
                   
Activated Carbon and Service
   
95,284
   
74,723
   
172,182
   
143,406
 
Equipment
   
10,742
   
10,658
   
20,439
   
21,624
 
Consumer
   
2,450
   
3,047
   
6,186
   
6,428
 
                           
Total Sales (thousands)
 
$
108,476
 
$
88,428
 
$
198,807
 
$
171,458
 
                           
Segment
                         
Operating Income (loss)*
   
2Q08
 
 
2Q07
 
 
YTD 2008
 
 
YTD 2007
 
                           
Activated Carbon and Service
   
19,766
   
13,015
   
37,142
   
21,488
 
Equipment
   
519
   
(607
)
 
3,962
   
(736
)
Consumer
   
16
   
548
   
722
   
1,376
 
                           
Income from Operations (thousands)
 
$
20,301
 
$
12,956
 
$
41,826
 
$
22,128
 
 
*Before depreciation and amortization