Conference Call Scheduled for Today, 10:00 a.m. Central Time -
Quarterly revenues of $91.8 million were down 11 percent compared
to the prior year - Quarterly global proppant sales volume of 296
million pounds was down 3 percent versus the prior year, despite a
corresponding 51 percent drop in the U.S. drilling rig count - Net
income of $14.4 million, or $0.62 per diluted share, for the
quarter - Acquired the assets of BBL Falcon Industries, Ltd. on
October 2, 2009 HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- CARBO
Ceramics Inc. (NYSE:CRR) today reported net income of $14.4
million, or $0.62 per diluted share, on revenues of $91.8 million
for the quarter ended September 30, 2009. The Company previously
reported that it had sold its fracture and reservoir diagnostics
business. Because of the transaction, which closed on October 10,
2008, the 2008 operating results of this business have been
accounted for as discontinued operations. Continuing operations
include the Company's ceramic proppant, software, consulting
services and geotechnical monitoring businesses. President and CEO
Gary Kolstad commented, "We are pleased with our third quarter
results. Looking forward, we remain cautious about the demand in
North America where depressed and volatile industry conditions
still exist. In the near term, pricing remains competitive. Despite
this climate, we continue to experience growing acceptance of our
products by E&P companies that understand the benefits
associated with Economic Conductivity(TM) resulting from the use of
our high quality ceramic proppants such as CARBOHYDROPROP®." Third
Quarter Results Revenues for the third quarter of 2009 decreased 11
percent compared to the third quarter of 2008 and increased 32
percent sequentially. Worldwide proppant sales volume totaled 296
million pounds for the third quarter of 2009, representing a
year-over-year decrease of 3 percent and a sequential increase of
37 percent. Proppant sales volume for the third quarter grew in the
U.S. both year-over-year and sequentially. Operating profit for the
third quarter of 2009 increased $0.9 million compared to the third
quarter of 2008. Revenue decreases, resulting from decreases in
volume and average selling price experienced during the third
quarter of 2009, were offset by decreases in cost of sales, which
was positively affected by a favorable product mix, lower freight
costs and lower natural gas prices. Selling, general,
administrative and other operating expenses for the third quarter
of 2009 decreased $0.8 million on a year-over-year basis. Income
from continuing operations for the third quarter of 2009 decreased
$0.9 million compared to the third quarter of 2008, mainly due to
tax-related benefits realized during the third quarter of 2008.
Technology and Business Highlights -- On October 2, 2009, a
wholly-owned subsidiary of CARBO purchased substantially all of the
assets of BBL Falcon Industries, Ltd. ("Falcon"), a supplier of
spill prevention and containment systems for the oil and gas
industry. The acquisition expands CARBO's product and service
offerings to its existing client base of E&P and oilfield
service companies. Falcon uses proprietary technology to provide
value-added solutions that are designed to enable its clients to
extend the life of their storage assets, reduce the potential for
hydrocarbon spills and provide secure containment of stored
materials. -- Three technical papers, co-authored by CARBO
engineers, were presented at the 2009 SPE Annual Technical
Conference and Exhibition in New Orleans. The papers covered
fracture efficiency and economic gains when employing ceramics in
the Bakken and Haynesville shale reservoirs. -- Using a full suite
of surface and subsurface instrumentation, Applied Geomechanics is
monitoring the second largest active landslide in Colorado. The
system comprises 3DTracker GPS, Little Dipper borehole tiltmeters
and vibrating wire piezometers. Data is monitored continuously
using Web monitoring software. Outlook CEO Gary Kolstad commented
on the outlook for the Company stating, "While we experienced a
positive trend this quarter in the North American rig count, which
achieved 13 percent sequential growth, opinions vary as to whether
this is the start of a recovery or simply a short-term correction.
From our perspective, we believe that a sustainable recovery in the
oil and gas industry is inevitable; however, the exact timing of
the recovery is difficult to pinpoint." Mr. Kolstad continued, "We
remain committed to expanding our client base and product and
service offerings. The acquisition of the Falcon assets in early
October is an example of our commitment to invest our cash reserves
in high-growth, cash-generating businesses. Newly incorporated as
Falcon Technologies and Services, Inc., its existing management
team will build on its leading technology position and already
successful strategy by taking advantage of CARBO's well-established
geographic footprint, a common client base and our ability to fund
product innovation. We expect that the transaction will be
accretive to our financial results in 2010." As previously
announced, a conference call to discuss the Company's third quarter
results is scheduled for today at 10:00 a.m. central time (11:00
a.m. eastern). To participate in the teleconference, investors
should dial 1-800-860-2442 about 10 minutes before the start time
and reference the CARBO conference call. International callers
should dial 1-412-858-4600. The conference call can also be
accessed by visiting the company's Web site,
http://www.carboceramics.com/. CARBO is the world's largest
supplier of ceramic proppant, the provider of the world's most
popular fracture simulation software, and provides leading fracture
design and consulting services. The Company also provides a broad
range of technologies for spill prevention, containment and
geotechnical monitoring. The statements in this news release that
are not historical statements, including statements regarding our
future financial and operating performance, are forward-looking
statements within the meaning of the federal securities laws,
including the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are based on management's current
expectations and estimates, which involve risks and uncertainties
that could cause actual results to differ materially from those
expressed in forward-looking statements. Among these factors are
changes in overall economic conditions, changes in demand and
prices charged for our products, changes in the demand for, or
price of, oil and natural gas, risks of increased competition,
technological, manufacturing and product development risks, loss of
key customers, changes in government regulations, foreign and
domestic political and legislative risks, the risks of war and
international and domestic terrorism, risks associated with foreign
operations and foreign currency exchange rates and controls,
weather-related risks and other risks and uncertainties described
in our publicly available filings with the Securities and Exchange
Commission. We assume no obligation to update forward-looking
statements, except as required by law. Three Months Ended Nine
Months Ended September 30 September 30 -----------------
---------------- 2009 2008 2009 2008 ----- ---- ---- ---- (In
thousands except (In thousands except per share data) per share
data) Revenues $91,783 $102,587 $251,747 $282,247 Cost of sales
59,512 70,449 160,300 196,645 ------ ------ ------- ------- Gross
profit 32,271 32,138 91,447 85,602 Selling, general &
administrative expenses 10,819 10,183 31,082 27,502 Start-up costs
- - - 231 Loss on disposal or impairment of assets 37 1,449 128
1,559 ------ ------ ------ ------ Operating profit 21,415 20,506
60,237 56,310 Interest income, net 78 21 398 77 Foreign currency
exchange gain (loss), net 30 (511) (216) 916 Other income, net (50)
75 128 262 ------ ------ ------ ------ Income before income taxes
21,473 20,091 60,547 57,565 Income taxes 7,071 4,779 20,330 17,649
------------ ------ ------ ------ ------ Income from continuing
operations 14,402 15,312 40,217 39,916 ----------- ------ ------
------ ------ Discontinued operations (1): Operating results, net
of income taxes - 3,108 - 6,265 ------- ------- ------- ------- Net
income $14,402 $18,420 $40,217 $46,181 ======= ======= =======
======= (1) Discontinued operations include the Company's fracture
mapping and reservoir monitoring assets, which were sold on October
10, 2008. Basic earnings per share: Continuing operations $0.62
$0.62 $1.73 $1.62 Discontinued operations - 0.13 - 0.26 ----- -----
----- ----- Basic earnings per share $0.62 $0.75 $1.73 $1.88 =====
===== ===== ===== Diluted earnings per share: Continuing operations
$0.62 $0.62 $1.73 $1.62 Discontinued operations - 0.13 - 0.26 -----
----- ----- ----- Diluted earnings per share $0.62 $0.75 $1.73
$1.88 ===== ===== ===== ===== Average shares outstanding: Basic
22,919 24,482 23,153 24,466 ====== ====== ====== ====== Diluted
22,933 24,512 23,170 24,518 ====== ====== ====== ======
Depreciation and amortization: Continuing operations $5,970 $6,220
$18,294 $18,473 Discontinued operations - 1,038 - 3,994 ------
------ ------- ------- $5,970 $7,258 $18,294 $22,467 ====== ======
======= ======= Selected Balance Sheet Information September 30,
2009 December 31, 2008 ------------------ ----------------- (In
thousands) Assets ------ Cash and cash equivalents $90,911 (a)
$154,817 Other current assets 144,340 140,895 Property, plant and
equipment, net 261,509 244,902 Intangible and other assets, net
2,953 3,806 Total assets 504,572 549,279 Liabilities and
Shareholders' Equity ----------------------------- Accrued income
taxes $1,231 $47,929 Other current liabilities 32,246 35,919
Deferred income taxes 25,482 22,897 Shareholders' equity 445,613
442,534 -------- -------- Total liabilities and shareholders'
equity $504,572 $549,279 ======== ======== (a) On October 2, 2009,
CARBO acquired the assets of BBL Falcon Industries, Ltd. for cash
consideration of $23.0 million. DATASOURCE: CARBO Ceramics Inc.
CONTACT: Ernesto Bautista III, CFO of CARBO Ceramics Inc.,
+1-281-921-6400 Web Site: http://www.carboceramics.com/
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