Calgon Carbon Reports 2013 Second Quarter Results

Before you go, we thought you'd like these...
Before you go close icon

Calgon Carbon Reports 2013 Second Quarter Results

Q2 2013 results versus Q2 2012 results:

  • Fully diluted EPS of $0.24 - up 26.3%
  • Gross margin (before depreciation and amortization) 33.0% versus 31.0%

PITTSBURGH--(BUSINESS WIRE)-- Calgon Carbon Corporation (NYS: CCC) reported results for the second quarter ended June 30, 2013.


Net income for the second quarter of 2013 was $13.0 million versus $10.9 million for the comparable period of 2012, a 19.2% increase. On a fully diluted basis, net income per common share for the second quarter of 2013 was $0.24 as compared to $0.19 for the second quarter of 2012.

The company reported net sales of $140.4 million for the second quarter of 2013 versus $148.4 million for the second quarter of 2012. Currency translation had a $3.2 million negative effect on sales for the second quarter of 2013 due to the weaker yen.

For the second quarter of 2013, sales for the Activated Carbon and Service segment declined 1.9% as compared to the second quarter of 2012. The decline was primarily due to lower demand for activated carbon in the environmental air and environmental wastewater markets. Our 2013 price increase, higher demand for activated carbon products and services for the municipal market in Japan, and higher sales of activated carbon for the respirator market offset this decline.

Equipment sales for the second quarter of 2013 decreased by $5.6 million, or 28.1% versus the comparable period in 2012, due to lower revenue from ballast water treatment systems. Higher sales of traditional UV disinfection systems and ion exchange systems partially offset the decline.

Consumer sales for the second quarter of 2013 were comparable to sales in the second quarter of 2012.

For the second quarter of 2013, net sales less the cost of products sold (excluding depreciation) as a percentage of net sales was 33.0% versus 31.0% for the second quarter of 2012. The increase was attributed to our 2013 price increase, lower plant maintenance costs and the corporate-wide cost improvement initiative.

Selling, administrative and research (SA&R) expenses for the second quarter of 2013 were $18.9 million versus $23.1 million for the comparable period of 2012. The decrease was primarily due to lower employee related expenses resulting from the company's cost improvement initiatives. SA&R for the second quarter of 2013 also included a $0.9 million benefit from the reduction of a multiemployer pension plan liability.

Including the aforementioned benefit, SA&R expenses as a percentage of sales improved to 13.4% for the second quarter of 2013 versus 15.6% for the comparable quarter of 2012.

Net sales for the six months ended June 30, 2013, were $275.5 million, a 3.3% decline over the comparable period in 2012. Currency translation had a $6.2 million negative impact on sales for the first half of 2013 due to the weaker yen.

Net income for the six months ended June 30, 2013, was $22.8 million versus $18.6 million for the comparable period of 2012. Fully diluted net income per common share for the first half of 2013 was $0.42. Fully diluted net income per common share for the first half of 2012 was $0.33.

Randy Dearth, Calgon Carbon's President and Chief Executive Officer, commented on the results, "We continue to make progress with our $30 million cost improvement initiative - both the pace at which we are realizing results, as well the magnitude of the reduction in costs and expenses. I am pleased with the results of our efforts to increase our income from operations. The comparison of quarter-over-quarter and year-over-year results clearly demonstrates our success.

"We will continue to aggressively implement our cost improvement program in advance of the expected step change in sales as compliance with mercury removal and ballast water disinfection regulations draws near."

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 Statements of Comprehensive Income
(Dollars in thousands except per share data)
(Unaudited)
 
Quarter EndedSix Months Ended
June 30,June 30,
2013201220132012
 
Net Sales$140,432 $148,403 $275,472 $285,011 
 
Cost of Products Sold (Excluding Depreciation)94,057102,456186,472196,282
 
Depreciation and Amortization7,3056,44214,05212,955
 
Selling, Administrative & Research18,85123,09239,77947,038
 
Restructuring(18)-(42)-
 
Environmental and Litigation -  (172) -  (19)
 
 120,195  131,818  240,261  256,256 
 
Income from Operations20,23716,58535,21128,755
 
Interest (Expense) Income - Net(117)17(170)10
 
Other Expense - Net (341) (513) (1,169) (764)
 
Income Before Income Tax Provision19,77916,08933,87228,001
 
Income Tax Provision 6,809  5,205  11,088  9,379 
 
Net Income$12,970 $10,884 $22,784 $18,622 
 
Other Comprehensive Income (Loss), Net of Tax
Foreign Currency Translation770(4,337)(5,518)(2,343)
Derivatives(15)454559581
Employee Benefit Plans 1,713  (474) 1,335  (1,032)
 
Comprehensive Income$15,438 $6,527 $19,160 $15,828 
 
Net Income per Common Share
Basic and Diluted$.24$.19$.42$.33
 

Weighted Average Shares Outstanding (Thousands)

Basic53,79956,63953,71056,576
 
Diluted54,54757,19054,37657,157
 

          
 
Calgon Carbon Corporation
 
 

Segment Data (unaudited):

(in thousands)
 

Segment Sales

2Q132Q12YTD 2013YTD 2012
 
Activated Carbon and Service124,009126,353242,906243,590
Equipment14,30219,88728,21036,005
Consumer 2,121  2,163 4,356  5,416
 
Net Sales$140,432$148,403$275,472$285,011
 
Segment

Operating Income (loss)*

2Q132Q12YTD 2013YTD 2012
 
Activated Carbon and Service27,70620,52648,60537,829
Equipment(624)1,999(231)2,531
Consumer 442  502 847  1,350
 
Income from Operations *$27,524$23,027$49,221$41,710

 

 

*Before depreciation and amortization and restructuring. The 2013 quarter and year to date periods include $(18) thousand and $(42) thousand, respectively, of restructuring.

      
 
 
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
June 30,December 31,
20132012
 
Assets
 
Current assets:
 
Cash and cash equivalents$20,764$18,161
 
Receivables100,521101,918
 
Inventories108,505107,166
 
Other current assets 42,501 45,961
 
Total current assets272,291273,206
 
Property, plant and equipment, net262,602262,993
 
Other assets 39,696 41,570
 
Total assets$574,589$577,769
 
Liabilities and Shareholders' Equity
 
Current liabilities:
 
Short-term debt$61$19,565
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Sun, Jan 22
Set Your Location
City, State, or Zip