Calgon Carbon Announces First Quarter Results
PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (CCC) announced results for the first quarter ended March 31, 2013.
Net sales for the first quarter of 2013 were $135.0 million, essentially flat versus the comparable period in 2012. Currency translation had a $3.1 million negative impact on sales for the first quarter of 2013 due to the weaker yen.
The company reported net income of $9.8 million for the first quarter of 2013, as compared to net income of $7.7 million for the first quarter of 2012. On a fully diluted share basis, earnings per common share for the first quarter of 2013 were $0.18 versus $0.14 for the first quarter of 2012.
For the first quarter of 2013, sales for the Activated Carbon and Service segment increased 1.4% as compared to the first quarter of 2012. The increase was due to higher demand for activated carbon products and services in the municipal and industrial process markets. These increases were largely offset by lower demand for granular activated carbon in the food market, as well as lower demand and pricing for powdered activated carbon for mercury removal from electric generating units.
Equipment sales declined 13.7% in the first quarter of 2013 versus the comparable period of 2012 due primarily to lower sales of ballast water treatment and ion exchange systems. These decreases were partially offset by higher sales of traditional UV systems and carbon adsorption equipment.
The $1.0 million, or 31.3%, decline in consumer sales was attributed to lower demand for activated carbon cloth.
Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2013 was 31.6%, versus 31.3% for the first quarter of 2012. In the first quarter of 2013, the margin rate benefited from the $0.4 million settlement of an insurance claim related to Hurricane Isaac.
Selling, administrative and research (SG&A) expenses for the first quarter of 2013 were $20.9 million versus $23.9 million for the comparable period of 2012. The decrease was due to lower employee related expenses, due in part to the companys cost reduction initiatives. SG&A as a percentage of sales improved to 15.5% as compared to 17.5% for the first quarter of 2012.
The income tax rate for the first quarter of 2013 was 30.4% versus 35% for the first quarter of 2012. The lower tax rate for the first quarter of 2013 was due to activity related to the companys Datong, China, subsidiary which was sold in March of 2013.
Commenting on the quarter, Randy Dearth, Calgon Carbons President and Chief Executive Officer, said, I am very pleased with the pace at which we are implementing our cost reduction initiatives and their positive impact in the first quarter, especially on operating expense.
Although revenue was flat for the first quarter of 2013 versus last years first quarter, the companys bottom line results showed significant improvement. Going forward we should see higher margins as we continue to implement the second phase of our cost reduction program which specifically targets margin improvement. In addition, price increases on our activated carbon products and services that we initiated earlier this year should begin to have a positive impact on both sales and margins.
For more information about Calgon Carbons leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as expect, believe, estimate, anticipate, or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the companys most recent Annual Report pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the companys actual results in future periods to be materially different from any future performance suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the companys control. Some of the factors that could affect future performance of the company are changes in, or delays in the implementation of, regulations that cause a market for our products, acquisitions, higher energy and raw material costs, costs of imports and related tariffs, labor relations, capital and environmental requirements, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the companys most recent Annual Report.
|Calgon Carbon Corporation|
|Condensed Consolidated Statements of Comprehensive Income|
|(Dollars in thousands except per share data)|
|Cost of Products Sold (Excluding Depreciation)||92,415||93,826|
|Depreciation and Amortization||6,747||6,513|
|Selling, Administrative & Research||20,928||23,946|
|Environmental and Litigation||-||153|
|Income from Operations||14,974||12,170|
|Interest Expense - Net||(53||)||(7||)|
|Other Expense - Net||(828||)||(251||)|
|Income Before Income Tax Provision||14,093||11,912|
|Income Tax Provision||4,279||4,174|
|Other Comprehensive Income (Loss), Net of Tax|
|Foreign Currency Translation||(6,333||)||1,994|
|Employee Benefit Plans||(378||)||(558||)|
|Net Income per Common Share|
|Basic and Diluted||$||.18||$||.14|
|Weighted Average Shares|
|Calgon Carbon Corporation|
Segment Data (unaudited):
|Activated Carbon and Service||118,897||117,237|
|Activated Carbon and Service||20,924||17,303|
|Income from Operations *||$||21,721||$||18,683|
|*Before depreciation and amortization.|
|Calgon Carbon Corporation|
|Condensed Consolidated Balance Sheet|
|(Dollars in thousands)|
|March 31,||December 31,|
|Cash and cash equivalents||$||14,554||$||18,161|
|Other current assets||39,501||45,961|
|Total current assets||270,500||273,206|
|Property, plant and equipment, net||262,078||262,993|
|Liabilities and Shareholders' Equity|
|Other current liabilities||83,032||96,085|
|Total current liabilities||99,139||115,650|
|Total shareholders' equity||357,349||351,297|
|Total liabilities and shareholders' equity||$||572,897||$||577,769|
Calgon Carbon Corporation
Gail A. Gerono, Vice President Investor Relations and Communications, 412-787-6795
Source: Calgon Carbon CorporationCopyright Business Wire 2013