CARBO Ceramics' CEO Discusses Q3 2013 Results - Earnings Call Transcript

Nov. 1.13 | About: CARBO Ceramics (CRR)

CARBO Ceramics Inc. (NYSE:CRR)

Q3 2013 Earnings Call

October 31, 2013 11:30 AM ET

Executives

Gary Kolstad – President and CEO

Ernesto Bautista – VP and CFO

Analysts

Brian Uhlmer – Global Hunter Securities

Stephen Gengaro – Sterne Agee & Leach, Inc.

Michael Cerasoli – Goldman Sachs

Luke Lemoine – Capital One Southcoast Inc.

Jeff Tillery – Tudor, Pickering, Holt & Co.

Avinash Kant – D. A. Davidson

Darren Gacicia – Guggenheim Securities

Tom Dillon

Operator

Hello and welcome to today’s CARBO Ceramics Inc. Third Quarter 2013 Earnings Conference Call. At this time all participants are in listen-only mode. After management’s remarks we will conduct a question and answer session and instructions will follow at that time. Please be advised, this call is being recorded today October 31, 2013, and your participation implies consent to our recording this call. If you do not agree to these terms, please disconnect. I would like to remind all participants that during the course of this conference call, the company will make statements that provide information other than historical information and will include projections concerning the companies’ feature prospects, revenues expanses or profits.

These statements are considered forward looking statements under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from these projections. These statements reflect the company’s belief based on current conditions, but are subject to certain risks and uncertainties that are detailed in the company’s press release and public fillings. Your host for today’s call is Gary Kolstad

Mr. Kolstad, please begin your call.

Gary Kolstad

Good morning and welcome to everyone, thank you for joining us. This morning I will provide you an overview of our third quarter results followed by an update on the outlook for the business and then will open it up for questions. First of all the production enhancement businesses we are very pleased with the performance of production enhancement businesses for the third quarter of 2013. Third quarter revenue set a new high for the company driven by strong demand for CARBO’s high quality, high conductivity ceramic proppant combined with market share gains.

A quarterly record on ceramic sales volume was also achieved with ceramic proppant volumes of 41% sequentially while ceramic proppant pricing was relatively stable. To meet these demand for products in the major US shale basins such as the Bakken, Eagle Ford and Permian as well as in Canada. We drew down finish goods inventory. Being a leader on production enhancement technology remains our focus, to that and we expand our production enhancement solutions during the quarter and unveiled a new proppant technology Crypto spare is an also conductive, also high strength proppant technology engineered to maximize and sustained hydrocarbon flow at high closer stresses for the life of the well.

During the quarter, we all expanded upon our technical marketing campaign incorporating our full suite of product enhancement solutions that allows clients to design build and optimize frac. These includes an emphasis on the synergistic value that reside Fracpro, the industry has most widely utilize fracture stimulation software and StrataGen are highly specialized completions in reservoir consult. In taking this holistic approach, our clients are provided complete service as design to increase the recoverable results and enhance the return on investment. We also continue to educate the industry on the negative aspects of lower quality Chinese ceramic proppant.

Through imagery, the campaign highlights the irregular size and shape, the rough surfaces and the internal defects of palates. Long term conductivity data confirms the damaging effects these characteristics have unveiled production and EUR. Our environmental business, Falcon Technologies, expanded its engineer to protect products week during the quarter by installing its first surface monitor impoundment solution. These impoundment provides clients in easy method to handle water throughout completion operations.

Now, for brief our review of our financial problems in the third quarter, revenues for the third quarter of 2013 increase 33% compared to the third quarter of 2012, this increases mainly attributed to a 48% increase in proppant sales volume offset by a 6% decrease in average sale price for all proppants. North America, which we define as Canada and US proppant sales volumes increase 63% while international proppant sales volumes decrease 17% compared to same period last year.

Operating proppant for the third quarter of 2013, increase 26% compared to the third quarter of 2012, the increase in operating prop was primary the result of higher prop and sales volumes up by a change in product sales mix with more sand based products and an increase in SG&A expense. That income for third quarter 2013 increase 26% compared to the third quarter of 2012. With that update, on third quarter, I’d now like to turn to our outlook for the business. We come entered in 2013 that the second half of 2013 could be stronger than the first half of 2013.

This is proving to be the case and it reinforces our confidence in continuing drills in our core ceramics proppant business. We are therefore, accelerating the planning stages of Millen Line 2 which will have 250 million pound per year capacity. In an effort to shorten the timeline from formal approval to plan startup, a number of long retimed items have already been purchased for Millen Line 2. Construction of Millen Line 1 remains unscheduled with anticipate completion by the end of the of the second quarter in 2014.

Once complete the Millen Line 1, we will take our annual ceramic proppant capacity from 1.7 billion pounds to 2 billion pounds. We anticipate the industry activity during the fourth quarter of 2013. We will experience typical reductions due to the holidays and seasonality. In addition, we will see a sequential decline in sales volume due to the large draw down of our ceramic proppant inventory cause by high demand in the third quarter. Even the exceptional third quarter results and that we were able to reduce inventory significantly, we aggressively focused on building capacity of Millen.

While the general pricing environment appears to have stabilized, we believed the continued over supply of pressure pumping equipment in the industry we will likely keep price increases from been realized in the near term. Commercialization of Cryptosphere are new all ultra-high conductivity, ultra high strength proppant technology is progressing well. We continue to complete the formal qualification milestones with appliance and anticipate initial sales of Cryptosphere during the first half of 2014.

The next phase for Cryptosphere will be to apply this technology to our existing manufacturing footprint. Applying Cryptosphere technologies to our existing proppant product should help to expand our technology lead in the industry and most importantly further increase the production and EUR of our client’s oils and gas wells. The resin coated sand product line continued to see marked expansion during the third quarter of 2013. We also experienced improvement in RCF’s manufacturing.

While this likely slowest drill from the near term, we believe focusing on secondary containments and new product technology introductions to allow Falcon to achieve long-term drills and improved profitability. CARBO’s R and D efforts are centered on listening to our clients and delivering technologies that focus on value creation for both of us. We excite about the opportunities that lie ahead for CARBO. It is our belief that capitalizing on these opportunities will strengthen CARBO’s position as a leader in production enhancement and environmental solutions and continue to build an enduring company.

And with that we will turn it over to questions.

Question-and-Answer Session

Operator

Ladies and gentlemen, we will now begin the question and answer session. (Operator Instructions) We will pass momentarily to assemble our roster.

Our first question will come from Brian Uhlmer of GHS.

Brian Uhlmer – Global Hunter Securities

Hey, good morning gentleman, how are you?

Gary Kolstad

Good morning Brian.

Brian Uhlmer – Global Hunter Securities

I have had couple real quick ones, first of you said pricing was relatively flat, is that across all the relative business lines in sand resin coats and ceramics and the different shape, sizes, strength etc.

Gary Kolstad

On the ceramic it was basically flat. We are seeing improving trends in the RCF’s products.

Brian Uhlmer – Global Hunter Securities

Okay, now secondly and more importantly for the next couple of quarters when I like at your current aspects, your other current aspects which you didn’t split out yet. They are up 10% is that primarily receivables or they may be draw a joint venture, what I would have expected that number to be?

Gary Kolstad

That’s right, that’s right Brian, that’s primarily receivables.

Brian Uhlmer – Global Hunter Securities

Okay. So where do we stand on the finish goods inventory and then directly obviously and our seasonal decline of we talking with the inventory draw down, you know about 10 to 15% type volume decline or something more typical seasonal 5%?

Gary Kolstad

Let me take step at that, you now basically, I think looking at the first quarter, you know our manufacturing capacity is something around 435 million a quarter, or slightly more than that the stated plan capacity. So, I think when you look at the fourth quarter, you have to kind of take that figure because we reduce down you now we sold about 535 million Q3 that means we drew down inventory roughly 100 million pounds on the ceramic side.

So, looking at the fourth quarter, we would expected to something a long manufacturing capacity to last the seasonality and whether that we always see especially in December. So, you know, that is kind of the broad frame worked on that.

Brian Uhlmer – Global Hunter Securities

Okay. So there is really a fairly a de minimis amount left an inventory that call still be sold beyond that product capacity, is that what are you saying?

Gary Kolstad

Taken down 100 million yeah, we are up to kind of get the pipeline refilled, yes.

Brian Uhlmer – Global Hunter Securities

Got it, got it and [indiscernible] and Millen Line 1 Q2 14, [indiscernible] early 2Q, late 2Q and give us some kind of whether had one is to get again one way versus the other and then what are your current targets?

Gary Kolstad

Yeah, I think we still think towards the end of Q2 and one of the reasons for now starkly sometimes we get it done little bit earlier, but one of the things that happen this year very unique to Georgia is tremendous amount of rain all time record levels of rain, so that has had some affect, but having said that we still think will be done near the end of Q2.

Brian Uhlmer – Global Hunter Securities

Perfect, we turn back over thank you.

Gary Kolstad

Thanks bye.

Operator

Our next question will come from Stephen Gengaro, Sterne Agee & Leach, Inc.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Thanks, good morning guys. I missed the very beginning of the call, but have you seen anything obviously your volumes had a big move in the quarter, which were anything in near that was short term in nature and I am speaking specifically in North Dakota we saw big rising completions in July. Is that any of these impact and we were trying to get arms around there huge increase with little more detail?

Gary Kolstad

Yeah, just kind put a broader look at that the answer is yes to your question, but what we saw is that we saw some are very big clients increased their activity. We gained new clients and we gained market shares, so kind of those three things drill, but when we look at the major place, you know the Bodkin has absolutely seen more client acceptance of ceramics in the need for ceramics there in the major way and then the Permian and Eagle Ford also grown ceramics for us.

And in particular to your questions one of the things that had been seen since 2011, in that’s that in the industry today, we should expect more quarter league movements, let’s say because of the fact that were working. So, you know why always had Canada having its normal spring breakup and Q2 were activity goes down about nothing, but you have to think in that same terms per North Dakota and Montana about the Bakken so we will continue to see that so Q3 logically for the Bakken is a good time usually for weather and everything else no road bands etc. So it’s a combination kind of all those 5-6 things.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Okay, thank you and then what I think about was the margins expansion sequentially is that more function of overhead and strong utilization it seems like that based on the fact that prices seemed, you know flourish, is that a fair assessment?

Gary Kolstad

That’s correct Stephen that’s the big driver. Yeah, you know we could set the years in our priority as volume growth we have good margin, so for us we always try and drive volume growth and you got to see the benefits of high utilization in this quarter.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Okay, that’s very helpful, thank you.

Operator

Our next question will come from Michael Cerasoli of Goldman Sachs.

Michael Cerasoli – Goldman Sachs

Thank you, obviously good amount of volumes were drawn out of inventory. Can you may be help detail with the margins look like on product that you did sell out of inventory in and how they compare versus what was the margins on the in quarter production?

Gary Kolstad

There would be no real difference there Michael.

Michael Cerasoli – Goldman Sachs

Okay and then you know, when you talk about even thing for quite some time about how the CARBO growth story is the volumes not necessarily on pricing, I am just curious may be if you can dive inside little deeper if the decision to speed up to the development of Millen Line 2 you know it clearly there seems to be a lot of demand what keep pricing from moving higher why not wait until pricing does kind of adjust a little bit higher before deciding to build or is it really just kind of you see that much ramp in terms of market share?

Gary Kolstad

Well when look at the company, we tend to look in terms of years not quarters than so and when we’re planning investments of plans those are yearly or multiyear type investments, so you know we are not going to wait on that and we were comfortable with our margins and in fact we thought us increasing volume might have a very nice effect for those people that are send a strong message on our capability of service, the industry at a pricing that fits our client and a margin that fits us and you combine that with all the other 5 or 6 things I said about what we think is happening with ceramic proppant in the industry and it just make sense to us, which is very consistent. Every year, we had said the same thing, we need to grow capacity.

Michael Cerasoli – Goldman Sachs

Gary, now for an end just my last quick question based on Millen Line 2. You ordered some of the Longley time equipment that is needed there. Line 1 took a little bit longer because it was your kind of setting of the facility this line 2 what I would expect would be more quick of a ramp, could we see this online you know by early 2015 like the mid 1Q 15 or would it have to be would still likely be more like late 2015?

Gary Kolstad

I think conservatively would probably put out there we would expect it about mid-year 2015.

Michael Cerasoli – Goldman Sachs

Got it, thank you.

Operator

Our next question will come from Luke Lemoine, Capital One Southcoast Inc.

Luke Lemoine – Capital One Southcoast Inc.

Hey, good morning.

Gary Kolstad

Good morning.

Luke Lemoine – Capital One Southcoast Inc.

Gary, I think that I have heard that people are no longer using ceramics, or I am just kidding? CARBO [indiscernible] in Russia. I know that it’s totally been a CARBO prop market for you. Have you switched production there completely or is that just you know partial production from you plant there?

Gary Kolstad

No partial production in particular field is the usage, so no, not in any respect.

Luke Lemoine – Capital One Southcoast Inc.

Okay, alright that’s it from me, thanks.

Operator

Our next question will come from Mark [indiscernible].

Unidentified Analyst

Morning guys.

Gary Kolstad

Good morning Mark.

Unidentified Analyst

Question with respect to Cryptosphere, and I think last quarter you have mentioned some step-up

Gary Kolstad

Actually that cost it actually and involves part of my part of earlier comment.

Unidentified Analyst

Okay.

Gary Kolstad

So, I stated about the same. We would expect that you know spending would sail off to certain degree as we done a full commercialization and the plant is running at capacity, but some span will continue obviously as we migrate the Cryptosphere technology to the broader manufacturing factor.

Unidentified Analyst

Yeah and that’s the follow-up, you know what is the timeline in evaluating when you might go forward with the role out it is just something that potential from Millen 2, you know how are you thinking about that?

Gary Kolstad

We are currently in engineering phase of retrofitting a plant, so the likelihood of going ahead on that would probably precede Millen 2, so on the timeline we will probably retrofit an existing plant before Millen 2 starts.

Unidentified Analyst

Okay, will that be a whole, full 250 kind of run rate that’s retrofitted or much smaller initially?

Gary Kolstad

Well if I tell you it’s the amount that you might try and identify the plant we are going to do it and someone uphold off on that, but we probably start the process of retrofitting and you know it will take us little while on that, but we are right in the middle of that right now.

Unidentified Analyst

Got it, got it, okay guys that’s it for me, thanks.

Operator

The next question will come from Jeff Tillery of Tudor, Pickering, Holt & Co.

Jeff Tillery – Tudor, Pickering, Holt & Co.

Hi, good morning.

Gary Kolstad

Good morning Jeff.

Jeff Tillery – Tudor, Pickering, Holt & Co.

With this shear amount of volume you guys sold in the third quarter could you just give us some color around the logistics of giving that delivered to customers, how your distribution of logistic system fair as look forward because of what is made on 1 and 2 round my and this becomes more regular pattern and opportunities so just one understand the logistics what happened in third quarter.

Gary Kolstad

Yeah, you know the distribution team did a great job this is good taste you know you run up 100 plus million pound compared previous quarter little more than that and they really did bang-up job there. We still will have improvements on that cost structure on distribution as we move into the later part of 2014.

I think it’s more of the second half 2014 type of situation and as we had mentioned before what we’re doing as you know going for the rolling stock into to having more storage of the consumption and so all that stuff is in process reducing the rolling stock, increasing the storage, but yeah we were pretty pleased with that, we just wish we had more profit now to fill up distribution channels.

Jeff Tillery – Tudor, Pickering, Holt & Co.

Would you characterize shipping that much product inefficient on a per unit basis due you see improvement and the fourth quarter its volume has become comeback to more normal level or now?

Gary Kolstad

I think we will see improvement when we have more storage of the consumption and I would say it’s kind of neutral it’s not more expensive this past quarter at all thought it’s fairly neutral because we are using rolling assets, so it’s just kind of standard stuff.

Jeff Tillery – Tudor, Pickering, Holt & Co.

Last question, as I think about the margins for the fourth quarter, should I think about so obviously Q3 benefitted from very high volumes, Q2 was heard by not available on just somewhere in the middle for Q4 in terms of margin is relatively for Q2 and Q3?

Gary Kolstad

Yeah, I think may be gone under and that Ernesto can finish it up. You know the volumes were trying to imply, you know it’s going to be, you know our manufacturing capacity less seasonality and holidays, so from volume standpoint, there so I don’t whether you know you model somewhere between Q2 you know what that was would margin improvement, Ernesto you want to comment?

Ernesto Bautista

So, on margin improvement I would say you think Q2 is probably a reasonable starting point, which may be a modest improvement from a margin standpoint. The improvement in margin being given by some amount of increased volume compared to Q2.

Jeff Tillery – Tudor, Pickering, Holt & Co.

Okay great, thank you guys.

Operator

Our next question will come from Avinash Kant of D. A. Davidson.

Avinash Kant – D. A. Davidson

Good morning Gary and Ernesto.

Gary Kolstad

Good morning.

Avinash Kant – D. A. Davidson

The first question I had was you talked little bit about the qualification of Cryptosphere. Could you give us some color in terms of people or customers who are qualifying this product, are they qualifying this for new applications or some of them are also thinking about replacing existing purchases with this product?

Gary Kolstad

When we say that it isn’t normal, I mean thereby now it’s better than anything ever produced, but what you are trying to make sure of is in these incredibly deep wells it’s no definite BOPs pipes, tools, etc. everything you know given this enormous importance of some of these really, really deep wells in the gulf of Mexico there is a qualification process and testing process that takes place and that’s what we really mean.

Avinash Kant – D. A. Davidson

So, they couldn’t have done it with existing ceramic products?

Gary Kolstad

The existing products will not produce, nor provide the EURs that this product will.

Avinash Kant – D. A. Davidson

Okay, one other question I had was you talked about domestic sales being up 63% and you talk little about the dynamic behind that. Could you give us some color on why the international sales were down 17%?

Gary Kolstad

Well first of all it’s a very small portion of our business, you know NAAM is the majority of our business sale. If the international business changes a little bit it’s a large percentage, so we did not say anything too alarming there small volume probably the one that was down more another was China markets and you know you fully expect that and given their excess capacity sitting in China.

Avinash Kant – D. A. Davidson

Okay, and the final question, with the new lines coming up what should we think of CapEx going forward for the next year by the way what was the CapEx for the quarter?

Gary Kolstad

So capital for the quarter was approximately $30 million for the 4 years we would have anticipated that we would end of the year somewhere between 95 and 105 million. For 2014, we would expect that at this point, we are going to preliminary CapEx plan, but our initial expectation is that 2014 is going to be notes of the 2013 span mainly driven by the fact that we would be completing Millen 1 potentially obviously starting Millen 2 and then completing any retrofit related to Cryptosphere, so those will be the main drivers.

Avinash Kant – D. A. Davidson

Bid up significantly or little bit?

Gary Kolstad

Will follow up in the fourth quarter specifically we are still going through that analysis.

Avinash Kant – D. A. Davidson

Thank you so much.

Operator

The next question will come from Darren Gacicia of Guggenheim Securities.

Darren Gacicia – Guggenheim Securities

Hey thanks for taking my question. Great quarter, I wanted to ask, if you look at the new technology, there is a product in itself, but there is process involved here that you patterned it is well correct?, Like the [indiscernible] process itself it has been patterned, yes?

Gary Kolstad

We have changed the manufacturing process as well as the secrets cells in it, yes.

Darren Gacicia – Guggenheim Securities

The direct question is that is it pattern protected as well?

Gary Kolstad

We have put in an application and we have not heard back yet on that, so we obviously filled IP a long time ago.

Darren Gacicia – Guggenheim Securities

The question they cannot follow up on this it seems that when people were more concerned about current directions. The one of the issues was that there was new entrance and people kind of coming in and there was definitely one of the following crowd then of leading crowd in terms of what they were doing with products. These seems to kind of take you with step change up in terms of quality in the rest. Would you think that does over time now with market share and how you proceed with kind of growing relative to the average of the market?

Gary Kolstad

Well, I think you are correct they will take step change upwards in quality, which quality of course is measured by conductivity and well production EUR, so that’s the important part there, and I think in our current products are the industry leading and in some cases you have the poor quality Chinese that so far below it. So, they have to catch up to that barrier may be someday. I think the North American producers will improve their quality, we have no doubts about that, but then these moves in up another step.

So, we believe and this was some of the reasons why we are getting more excited about adding capacity. We believe these drives our business for many, many, many years ahead.

And a constant good sold and then kind of margins underlying the process or equal to existing process, yes?

Gary Kolstad

Well we should hope so you know that what we kind of target all the time when we do this so we keep the cross sided equation pretty similar, we really like that and once again it’s all about production and recovery for us if do that right and help E&P in the service companies, we will always be in demand.

Darren Gacicia – Guggenheim Securities

Great thanks a lot.

Operator

Our next question will come from Tom Dillon [ph].

Tom Dillon

Trying and engage the permanent increase of cast structure versus the onetime items. Thanks.

Ernesto Bautista

I don’t think that we break that up. What we previously said was that are initiatives and distribution would total from a capital dollar standpoint something between $30 million and $40 million that has not changed, we changed what we were spending on, but I think the total dollar might at least in the year of 2013. For [indiscernible] we don’t typically disclose the actual amount of R and D. We are very efficiently in the way we use our R&D dollars by utilizing third parties and being able to utilize the depth of bench baited at national laboratory or something like that as appose to hire any additional people in-house.

So it is small dollar amount in relative terms for the amount of R&D effort that goes on.

Tom Dillon

Okay, thanks and then can you reiterate your deep water market opportunity? and this may be an early volume size expectation for first half 2014 or?

Gary Kolstad

Yeah, when we had recent communication on that, we can’t employed, we thought something around we might although sale about 10 million pounds a Cryptosphere age in 2014.

Tom Dillon

Okay and now just to follow up to that will your deep water ceramic operations require any new equipment or it is just going to be retrofitting what you already have?

Gary Kolstad

First of all it’s not deep water, it’s deep wells. So, it could be any place in the world, but we would probably highlight the lower territory and might have seen probably this why people think deep water. But no not for us in remember that product as it exist today will be produced out of our pilot plant. So, these volumes will be limited until we retrofit an existing plant or build a new plant for Cryptosphere itself.

Tom Dillon

Okay, thanks.

Operator

Our next question will be a follow-up from Stephen Gengaro – Sterne Agee & Leach, Inc.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Gentleman, do you mind just a quick question on the margin fund. If we think about the incremental margin opportunities, but also what we seen historically is there range you would expect on volume without price improvement an example?, examples like this quarter percent 43% incremental sequentially and it has been 20% over a year, I just curious to how to think about that going forward. Is there a reasonable way to frame the margin?

Gary Kolstad

Yeah, I think, it’s a little bit complicated there are few variables that going to that including product next until. I do not know that we have not commented on range of margin based on volume previously because of that.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Okay, I think that I had asked the question just to trying to get the hand all around. The best way to take about the margin progression going forward and it seem like the volume rise led to a pretty sharp increase in EBITDA.

Gary Kolstad

And that’s accurate, that’s accurate statement. You know, but again it’s just kind of lot of will be depending on next as well as we look forward.

Stephen Gengaro – Sterne Agee & Leach, Inc.

Okay thank you.

Operator

And it is time there appear to be no further questions. Mr. Kolstad, I will turn the call back to you for closing remarks.

Gary Kolstad

Thank you and thank you buddy for joining us this morning. Couple of key points to close on, we are very pleased with the third quarter results. Our proppant volume for the fourth quarter of 2013 will decline sequentially due to the holiday’ and seasonality that was explained earlier. In addition, the large drawdown of finish goods during the third quarter limits are ability to drop on inventory to meet demand about our quarterly stated ceramic manufacture capacity of 435 million pounds.

The proppant pricing appears to have stabilized, and the continued over-supply of pressure pump equipment likely keeps spikes increase from been realized in the near term. We have more opportunities in front of us today than we had in our company’s 34 year history. Well we talked about building manufacturing capacity today we did not really talked too much about the technology platforms we were setting forth and those will drive our business as well, so we are not just a capacity story and a high quality story and a conductive story, we are also a technology story and we are extremely focused on improving production and recovery.

I am confident our team’s ability to execute on this many technology and gross initiatives that’s going to drive our production enhancement businesses and our environmental business in the future, and with that we thank you and hope you join us in next quarter.

Operator

Ladies and gentlemen, the conference has now concluded, we thank you for attending today’s presentation. You may now disconnect your lines.

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Carbo Ceramics (CRR): Q3 EPS of $1.31 beats by $0.48. Revenue of $201.5M (+33% Y/Y) beats by $41.09M. (PR)