Calgon Carbon Corporation (NYSE: CCC) announced results for the
second quarter ended June 30, 2011.
The company reported net income of $11.3 million for the second
quarter of 2011, as compared to net income of $2.9 million for the
second quarter of 2010. On a fully diluted basis, net income per
common share for the second quarter of 2011 was $0.20, as compared
to $0.05 for the second quarter of 2010.
Income from operations for the second quarter of 2011 was $17.4
million, versus $4.3 million for the comparable period of 2010.
Both income from operations and net income for the second
quarter of 2010 included an $11.5 million ($7.2 million after-tax)
charge for a litigation contingency.
Net sales for the second quarter of 2011 were $135.3 million, an
$11.7 million, or a 9.5%, increase over the comparable period in
2010. Currency translation had a $6.6 million positive impact on
sales for the second quarter due to the weak dollar.
For the second quarter of 2011, sales for the Activated Carbon
and Service segment increased 10.1%, as compared to the second
quarter of 2010. The increase was due principally to higher demand
for certain activated carbon and service products in the
environmental water, environmental air, and food markets.
Equipment sales for the second quarter of 2011 increased 5.0%
over the second quarter of 2010 due to higher revenue from ballast
water treatment systems. For the second quarter of 2011, Consumer
sales were comparable to the second quarter of 2010.
Net sales less the cost of products sold as a percentage of net
sales for the second quarter of 2011 was 32.8% versus 34.8% for the
second quarter of 2010. One percentage point of the decline was
attributable to a $1.3 million charge related to the PreZerve®
product line, which was previously disclosed as being discontinued.
An increase in sales of lower margin outsourced carbon products
also contributed to the decline.
Selling, administrative and research expenses for the second
quarter of 2011 were comparable to the second quarter of 2010. As a
percentage of sales, however, SG&A improved to 16.6% for the
second quarter of 2011 versus 17.8% for the second quarter of
2010.
Environmental and litigation contingencies for the second
quarter of 2011 included a $1.3 million reduction in the estimate
to complete a remediation project at the company’s production
facility in Columbus, Ohio. In the second quarter of 2010, the
company recorded an $11.5 million litigation contingency
charge.
Calgon Carbon’s board of directors did not declare a quarterly
dividend.
Net sales for the six months ended June 30, 2011, were $259.7
million, a $33.2 million, or a 14.6%, increase over the comparable
period in 2010. Of this increase, $17.9 million is attributable to
an additional three months of Calgon Carbon Japan net revenue,
since its results were fully consolidated as of April 1, 2010.
Results for the six months ended June 30, 2010, included a gain
on acquisitions of $2.7 million.
Currency translation had a $7.5 million positive impact on sales
for the first half of 2011 due to the weak dollar.
Net income for the six months ended June 30, 2011, was $19.8
million versus $12.4 million for the comparable period of 2010.
Fully diluted net income per common share for the first half of
2011 was $0.35. Fully diluted net income per common share for the
first half of 2010 was $0.22.
Commenting on the quarter, John Stanik, Calgon Carbon’s
chairman, president and chief executive officer, said, “Calgon
Carbon’s performance for the quarter was solid, as sales
strengthened and mix improved as the quarter progressed. Margins
also improved sequentially, excluding the effect of the PreZerve
inventory charge.”
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
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 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 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 Statement of
Income (Dollars in thousands except per share data) (Unaudited)
Quarter Ended Six Months Ended June 30, June 30, 2011 2010
2011 2010 Net Sales
$ 135,298
$ 123,574 $
259,678 $ 226,501
Cost of Products Sold 90,864 80,512 173,853 146,303
Depreciation and Amortization 5,655 5,261 11,195 10,338
Selling, Administrative & Research 22,499 22,044 44,831
41,695 Environmental and Litigation Contingencies
(1,135 ) 11,500
(956 )
11,500 117,883
119,317
228,923 209,836
Income from Operations 17,415 4,257 30,755 16,665
Interest - Net 58 2 103 110 Gain on Acquisitions - - - 2,666
Other Expense - Net
(46 )
(172 ) (236
) (475 )
Income From Operations Before Income
Taxand Equity in Income from Equity Investments
17,427 4,087 30,622 18,966 Income Tax Provision
6,136 1,171
10,854 6,686
Income from Operations Before Equityin
Income from Equity Investments
11,291 2,916 19,768 12,280 Equity in Income from Equity
Investments
- -
- 112
Net Income $ 11,291
$ 2,916 $
19,768 $ 12,392
Net Income per Common Share Basic $ .20 $ .05 $ .35 $
.22 Diluted $ .20 $ .05 $ .35 $ .22
Weighted Average Shares Outstanding
(Thousands)
Basic 56,188 55,830 56,156 55,770 Diluted 57,054 56,748
56,974 56,737
Calgon Carbon Corporation
Segment
Data:
Segment
Sales
2Q11 2Q10 YTD 2011 YTD 2010 Activated Carbon and Service
121,522 110,381 234,406 200,833 Equipment 11,681 11,129 20,798
21,289 Consumer
2,095
2,064 4,474
4,379 Total Sales (thousands)
$ 135,298 $ 123,574 $
259,678 $ 226,501 Segment
Operating Income
(loss)*
2Q11 2Q10 YTD 2011 YTD 2010 Activated Carbon and Service
24,890 9,275 43,957 26,962 Equipment (484 ) 243 (866 ) (72 )
Consumer
(1,336 )
- (1,141 )
113 Income from Operations
(thousands) $ 23,070 $ 9,518
$ 41,950 $ 27,003
*Before depreciation and amortization. The 2011 quarter and year
to date periods include a $1.3 million charge related to the
PreZerve product line in the Consumer Segment as well as a $1.3
million reduction in an environmental liability in the Activated
Carbon and Service segment. The 2010 quarter and year to date
periods for the Activated Carbon and Service segment include a
charge of $11.5 million related to a litigation contingency.
Calgon
Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands) (Unaudited) June 30, December 31,
2011 2010
Assets Current assets: Cash
and cash equivalents $ 13,927 $ 33,992 Restricted cash 1,275
1,173 Receivables 92,490 94,354 Inventories 113,201
101,693 Other current assets 40,673 40,836
Total current assets 261,566 272,048 Property, plant
and equipment, net 217,623 186,834 Other assets
41,738 42,681 Total assets $ 520,927 $ 501,563
Liabilities and Shareholders' Equity Current
liabilities: Short-term debt $ 18,019 $ 21,442
Current portion of long-term debt 3,010 3,203 Other current
liabilities 72,773 80,529 Total current
liabilities 93,802 105,174 Long-term debt 4,098 3,721
Other liabilities 52,631 49,430 Total
liabilities 150,531 158,325 Redeemable non-controlling
interest - 274 Total shareholders' equity 370,396
342,964 Total liabilities and shareholders' equity $
520,927 $ 501,563
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