Calgon Carbon Announces Fourth Quarter and 2012 Results

Calgon Carbon Announces Fourth Quarter and 2012 Results

PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (NYS: CCC) announced results for the fourth quarter and year ended December 31, 2012.

Income from operations for the fourth quarter of 2012 was $14.7 million versus $8.2 million for the comparable period in 2011. Net income for the fourth quarter of 2012 was $9.1 million, or $0.16 per common share on a fully diluted basis, versus $4.9 million, or $0.09 per common share on a fully diluted basis, for the fourth quarter of 2011.


Commenting on the results, Randy Dearth, Calgon Carbon's president and chief executive officer, said, "The Company's performance for the quarter was solid despite a challenging business environment.

"In addition to growth from our traditional business in 2013, we will also realize positive impacts from our cost improvement program that we implemented in 2012. We will continue to focus on increasing profitability through process improvement, enhanced operating efficiencies, and worldwide cost reductions."

"As for the long term, we continue to believe that emerging environmental markets, including mercury removal from coal-fired power plants, ballast water treatment, and control of disinfection byproducts in drinking water, will provide opportunities for significant growth throughout this decade."

Net sales for the fourth quarter of 2012 were $141.8 million, an increase of 2.6% over sales of $138.2 million for the fourth quarter of 2011. Currency translation had a $1.0 million negative impact on sales for the fourth quarter of 2012 due to the stronger U.S. dollar.

For the fourth quarter of 2012, sales for the company's Activated Carbon and Service segment were $127.2 million versus $122.0 million for the fourth quarter of 2011, a 4.2% increase. Higher demand for granular activated carbon (GAC) products for drinking water treatment and for GAC used in respirators was primarily responsible for the increase.

Equipment sales declined 15% in the fourth quarter of 2012 versus the comparable quarter of 2011 due to lower revenue recognition on ballast water treatment, ion exchange, and carbon adsorption systems. This was partially offset by higher revenue recognition on ultraviolet systems for drinking water treatment.

For the fourth quarter of 2012, Consumer segment sales increased $0.5 million, or 22.7%, as compared to the fourth quarter of 2011. This was due to increased demand for activated carbon cloth, the company's sole consumer product.

Net sales less the cost of products sold as a percentage of net sales for the fourth quarter of 2012 was 31.2%, up slightly from 30.9% for the fourth quarter of 2011.

Selling, administrative and research expenses for the fourth quarter of 2012 were $20.5 million versus $27.0 million for the comparable period of 2011, a decrease of 24.1%. Lower research and development activities related to new products and lower legal and outside services expenses contributed to the favorable comparison. For the fourth quarter of 2011, selling, administrative and research expenses included $2.2 million in severance expenses related to management changes.

Results for the fourth quarter of 2012 included restructuring charges of $2.3 million which were comprised of severance and pension-related expense. These charges were components of phase one of a cost improvement program that was completed in the fourth quarter of 2012.

For the year ended December 31, 2012, the company reported income from operations of $39.9 million versus $57.2 million for the year ended December 31, 2011. Net income for the year ended December 31, 2012, was $23.3 million versus $39.2 million for the year ended December 31, 2011. Results for the year ended December 2012 included a $10.2 million restructuring charge related to a cost reduction program. Earnings per common share on a fully diluted basis were $0.41 for the year ended December 31, 2012, as compared to $0.69 per common share for the year ended December 31, 2011.

Net sales for the year ended December 31, 2012, were $562.3 million, an increase of 3.8% over the comparable period in 2011. For the year ended December 31, 2012, foreign currency translation had a $7.5 million negative impact on sales due to the stronger U.S. dollar.

For more information about Calgon Carbon's 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 company's most recent Annual Reportpursuant 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 company's 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 company's 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 company's most recent Annual Report.

      
 
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
December 31,December 31,
20122011
 
Assets
 
Current assets:
 
Cash and cash equivalents$18,161$13,574
 
Restricted cash-1,152
 
Receivables101,918102,540
 
Inventories107,166118,348
 
Other current assets 45,961 42,327
 
Total current assets273,206277,941
 
Property, plant and equipment, net262,993234,549
 
Other assets 41,570 40,500
 
Total assets$577,769$552,990
 
 
Liabilities and Shareholders' Equity
 
Current liabilities:
 
Short-term debt$19,565$22,894
 
Current portion of long-term debt-3,372
 
Other current liabilities 96,085 89,721
 
Total current liabilities115,650115,987
 
Long-term debt44,4081,103
 
Other liabilities 66,414 58,783
 
Total liabilities226,472175,873
 
Total shareholders' equity 351,297 377,117
 
Total liabilities and shareholders' equity$577,769$552,990
 

        
 
Calgon Carbon Corporation
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
 
Quarter EndedTwelve Months Ended
December 31,December 31,
2012201120122011
 
Net Sales$141,777 $138,200 $562,255 $541,472 
 
Cost of Products Sold97,55695,501392,382364,384
 
Depreciation and Amortization6,6097,01526,32024,337
 
Selling, Administrative & Research20,51727,01593,37095,856
 
Restructuring Charges2,253-10,211-
 
Environmental and Contingencies 130  420  111  (337)
 
 127,065  129,951  522,394  484,240 
 
Income from Operations14,7128,24939,86157,232
 
Interest Income (Expense) - Net(54)160(45)467
 
Other Income (Expense) - Net (674) (818) (2,480) (1,309)
 
Income Before Income Tax Provision13,9847,59137,33656,390
 
Income Tax Provision 4,881  2,650  14,064  17,166 
 
Net Income$9,103 $4,941 $23,272 $39,224 
 
Net Income per Common Share
Basic$.16$.09$.41$.70
 
Diluted$.16$.09$.41$.69
 

Weighted Average Shares Outstanding (Thousands)

Basic55,39056,38156,30456,243
 
Diluted55,83757,03256,83656,994
 

          
 
Calgon Carbon Corporation
 
 

Segment Data:

 

Segment Sales

4Q124Q11YTD 2012YTD 2011
 
Activated Carbon and Service127,194122,046485,755486,468
Equipment11,83313,91366,05046,274
Consumer 2,750  2,241  10,450 8,730 
 
Total Sales (thousands)$141,777$138,200$562,255$541,472
 
Segment

Operating Income (loss)*

4Q124Q11YTD 2012YTD 2011
 
Activated Carbon and Service21,92416,35061,69585,989
Equipment(1,203)(629)2,054(2,172)
Consumer 600  (457)  Read Full Story

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