EX-99.1 2 v130300_ex99-1.htm
 
  
P. O. BOX 717 PITTSBURGH, PA 15230-0717 (412) 787-6700

 

For Immediate Release
Contact: Gail A. Gerono
412 787-6795


CALGON CARBON ANNOUNCES THIRD QUARTER RESULTS


PITTSBURGH, PA - October 31, 2008 - Calgon Carbon Corporation (NYSE:CCC) announced results for the third quarter ended September 30, 2008.

The company reported net income of $6.3 million for the third quarter of 2008, as compared to net income of $4.9 million for the third quarter of 2007. On a fully diluted basis, net income per common share for the third quarter of 2008 was $0.12, as compared to fully diluted net income per common share of $0.10 for the third quarter of 2007.

Income from operations for the third quarter of 2008 was $12.3 million versus income from operations of $6.5 million for the comparable period in 2007.

Net sales for the third quarter of 2008, were $99.1 million versus third quarter 2007 sales of $84.9 million, an increase of 16.7%. Currency translation had a $1.0-million positive impact on sales for the third quarter of 2008 due to the strong Euro.

For the third quarter of 2008, sales of the Activated Carbon and Service segment increased by 17.8% versus the third quarter of 2007. The increase was due to higher pricing and volume for activated carbon products and services in the environmental water treatment, potable water treatment, and food industries. Equipment sales increased 26.0% versus the third quarter of 2007. The increase resulted from higher demand for carbon adsorption and odor control equipment and from systems that utilize ultraviolet light for disinfection of drinking water. A 33.4% decrease in Consumer sales for the third quarter of 2008 was attributable to lower demand for activated carbon cloth in the medical sector and for the company’s PreZerve® products.

Net sales less the cost of products sold as a percentage of net sales for the third quarter of 2008 was 33.9% versus 32.1% for the third 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 third quarter of 2008 increased 6.4% versus the third quarter of 2007. The increase was principally due to higher legal expenses related to the Department of Commerce’s administrative review of its April 2007 anti-dumping order on certain activated carbon products from China. Selling, administrative and research expenses as a percentage of sales were 17.5% as compared to 19.2% for the third quarter of 2007.
 
 
For the third quarter of 2008, the company’s tax provision was $4.0 million versus $0.4 million for the comparable period in 2007. The third quarter tax rates for 2008 and 2007 were 38.0% and 8.0%, respectively . The tax rate for the third quarter of 2007 was favorably impacted by the reversal of uncertain tax position liabilities due to statute expirations. The company estimates that its 2008 full-year effective tax rate to be 36.0%

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

Net income for the nine months ended September 30, 2008 was $30.5 million versus $11.4 million for the comparable period of 2007. Net income for the nine months ended September 30, 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 $3.2 million related to the sale of the company’s charcoal business. Fully diluted net income per common share for the nine months ended September 30, 2008 was $0.58. Fully diluted net income per common share for the nine months ended September 30, 2007 was $0.24.

Income from operations for the nine months ended September 30, 2008 was $46.0 million as compared to income from operations of $20.1 million for the nine months ended September 30, 2007.

Commenting on the results, John Stanik, Calgon Carbon’s chairman, president and chief executive officer said, “Once again, both revenue and operating income increased quarter-over-quarter. In addition, gross margin improved, both year-over-year and sequentially. We are pleased with the third quarter performance and with our continued progress in offsetting cost increases in raw materials, energy and transportation.

During the quarter we also reduced debt by 55.0% from year-end 2007. This was achieved by exchanging outstanding Senior Convertible Notes for Calgon Carbon common stock. We completed similar transactions in the fourth quarter which further reduced total outstanding debt to approximately $12.0 million. Today our company has unprecedented growth opportunities coupled with a strong balance sheet which provides financial flexibility.”

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,
  
   
2008
 
2007
 
2008
 
2007
  
                   
Net Sales
 
$
99,069
  
$
84,861
  
$
297,876
  
$
256,319
  
                           
Cost of Products Sold
    
65,461
   
57,642
   
198,247
   
175,622
 
                           
Depreciation and Amortization
    
4,036
   
4,427
   
12,161
   
13,019
 
                           
Selling, Administrative & Research
    
17,311
   
16,272
   
50,756
   
47,622
 
                           
Gain from AST Settlement
    
-
   
-
   
(9,250
)
  
-
 
                           
     
86,808
   
78,341
   
251,914
   
236,263
 
                           
Income from Operations
    
12,261
   
6,520
   
45,962
   
20,056
 
                           
Interest Expense - Net
    
(582
)
  
(908
)
  
(2,200
)
  
(3,066
)
                           
Other Expense - Net
    
(1,157
)
  
(482
)
  
(1,727
)
  
(1,293
)
                           
                           
Income From Continuing Operations Before Income Tax and
    
10,522
   
5,130
   
42,035
   
15,697
 
Equity in Income from Equity Investments
                          
                           
Income Tax Provision
   
4,024
   
396
   
15,145
   
5,923
 
                           
Income from Continuing Operations Before Equity in
                          
Income from Equity Investments
    
6,498
   
4,734
   
26,890
   
9,774
 
                           
Equity in Income from Equity Investments
    
38
   
310
   
337
   
1,766
 
                           
Income from Continuing Operations
    
6,536
   
5,044
   
27,227
   
11,540
 
                           
Income (Loss) from Discontinued Operations
   
(211
)
  
(96
)
  
3,236
   
(96
)
                           
Net Income
 
$
6,325
  
$
4,948
  
$
30,463
  
$
11,444
  
                           
Net Income per Common Share
                          
Basic:
                         
Income from Continuing Operations
  
$
.16
  
$
.12
  
$
.67
  
$
.28
  
Income (Loss) from Discontinued Operations
  
$
(.01
)
$
-
  
$
.08
  
$
-
  
Total
  
$
.15
  
$
.12
  
$
.75
  
$
.28
  
                           
Diluted:
                         
Income from Continuing Operations
  
$
.12
  
$
.10
  
$
.52
  
$
.24
  
Income (Loss) from Discontinued Operations
  
$
-
  
$
-
  
$
.06
  
$
-
  
Total
  
$
.12
  
$
.10
  
$
.58
  
$
.24
  
                           
Weighted Average Shares
                          
Outstanding (Thousands)
                          
Basic
    
41,376
   
40,357
   
40,727
   
40,289
 
Diluted
    
53,798
   
50,358
   
52,536
   
47,324
 
 
 
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
   
September 30,
 
December 31,
 
 
 
2008
 
2007
  
           
ASSETS
          
           
Current assets:
          
           
Cash and cash equivalents
  
$
37,263
  
$
30,304
  
               
Receivables
    
63,136
   
57,548
 
               
Inventories
    
88,384
   
81,280
 
               
Other current assets
    
25,081
   
20,546
 
               
Total current assets
    
213,864
   
189,678
 
               
Property, plant and equipment, net
    
114,340
   
105,512
 
               
Other assets
    
51,992
   
52,950
 
               
Total assets
  
$
380,196
  
$
348,140
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
              
               
Current liabilities:
              
               
Short-term debt
  
$
1,606
  
$
1,504
  
               
Current portion of long-term debt
    
32,919
   
62,507
 
               
Other current liabilities
    
54,309
   
55,750
 
               
Total current liabilities
    
88,834
   
119,761
 
               
Long-term debt
   
-
   
12,925
 
               
Other liabilities
    
39,425
   
43,205
 
               
Total liabilities
    
128,259
   
175,891
 
               
Total shareholders' equity
    
251,937
   
172,249
 
               
Total liabilities and shareholders' equity
  
$
380,196
  
$
348,140
  
 
 
Calgon Carbon Corporation
 
Segment Data:
                  
                   
Segment Sales
  
3Q08
  
3Q07
  
YTD 2008
  
YTD 2007
  
                   
Activated Carbon and Service
    
85,219
   
72,322
   
257,401
   
215,728
 
Equipment
    
11,662
   
9,255
   
32,101
   
30,879
 
Consumer
    
2,188
   
3,284
   
8,374
   
9,712
 
                           
Total Sales (thousands)
  
$
99,069
  
$
84,861
  
$
297,876
  
$
256,319
  
                           
Segment
                          
Operating Income (loss)*
    
3Q08
    
3Q07
    
YTD 2008
    
YTD 2007
  
                           
Activated Carbon and Service
    
15,941
   
10,705
   
53,083
   
32,197
 
Equipment
    
588
   
(215
)
  
4,550
   
(955
)
Consumer
    
(232
)
  
457
   
490
   
1,833
 
                           
Income from Operations (thousands)
  
$
16,297
  
$
10,947
  
$
58,123
  
$
33,075
  
 
 
 
*Before depreciation and amortization