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8-K - FORM 8-K - CALGON CARBON Corp | l41945e8vk.htm |
Exhibit 99.1
CALGON CARBON ANNOUNCES FOURTH QUARTER RESULTS
PITTSBURGH, PA February 23, 2011 Calgon Carbon Corporation (NYSE: CCC) announced results for
the fourth quarter and year ended December 31, 2010.
The company reported net income of $12.5 million, or $0.22 per common share on a fully diluted
basis, for the fourth quarter of 2010 which included $2.8 million of income from discrete tax
items, including the release of a valuation allowance on foreign tax credits. Net income for the
fourth quarter of 2009 was $13.2 million or $0.23 per common share on a fully diluted basis.
Net sales for the fourth quarter of 2010 were $131.5 million, an increase of 18.8% versus fourth
quarter 2009 sales of $110.7 million. For the fourth quarter of 2010, the net effect on sales from
acquisitions completed in 2010 was $18.8 million. Currency translation had a $1.8-million negative
impact on sales for the fourth quarter of 2010, due to the stronger dollar.
For the fourth quarter of 2010, sales for the Activated Carbon and Service segment increased by
20.7% versus the fourth quarter of 2009, including 17.2% from the acquisitions mentioned above.
The increase from the companys traditional businesses was primarily due to higher demand for
activated carbon products in the potable water and respirator markets. This was partially offset by
a decline in demand for activated carbon products in the food market.
Equipment sales increased by 13.3% versus the fourth quarter of 2009, due to revenue recognition
from ballast water treatment systems. Sales from the companys traditional equipment businesses
declined slightly. The 27.9% decline in Consumer sales was attributable to lower demand for
activated carbon cloth and PreZerve® products.
Net sales less the cost of products sold as a percentage of net sales for the fourth quarter of
2010 was 33.0%, versus 42.2% for the fourth quarter of 2009. Results for the fourth quarter of
2009 included $2.4 million related to the receipt of, or estimated refunds of, tariff deposits.
Results for the fourth quarter of 2009 also benefited from
unusually low repair and maintenance
expense. Sales from Calgon Carbon Japan and Hyde Marine, whose margins were lower than the
corporate average, had an adverse impact on margins in the fourth quarter of 2010.
Selling, administrative and research expenses for the fourth quarter of 2010 were 7.3% higher than
for the comparable period of 2009, due to on-going expenses related to acquisitions completed in
the first quarter of 2010. For the fourth quarter of 2010 SG&A as a percentage of revenue was
16.4% as compared to 18.2% for the comparable period in 2009.
Net sales for the year ended December 31, 2010 were $482.3 million, versus $411.9 million for 2009,
an increase of 17.1%. For the year, foreign currency translation had a $3.2 million negative impact on sales due to the stronger U.S. dollar.
Net income for the year ended December 31, 2010 was $34.9 million versus $39.2 million for the
comparable period of 2009. The 2010 results included a $12.0 million pre-tax charge related to
settlements of lawsuits and environmental related matters. The results for the year ended December
31, 2010 also included $3.8 million from discrete tax items including the release of a valuation
allowance on foreign tax credits. The 2009 results included $4.8 million from the release of
valuation allowance on foreign tax credits.
Fully diluted earnings per share for the year ended December 31, 2010 were $0.61. For 2009,
earnings per share on a fully diluted basis were $0.69.
Calgon Carbons board of directors did not declare a quarterly dividend.
Commenting on the results, John Stanik, Calgon Carbons chairman, president and chief executive
officer, said, We continue to improve our top-line growth which included contributions from our
most recent acquisitions and Calgon Carbons traditional businesses. While the decline in the
fourth quarter margins was anticipated given our recent acquisitions, we expect to see margin
improvement going forward as we continue to integrate Calgon Carbon Japan and implement global
price increases that were previously announced.
Excluding the impact of non-recurring legal and environmental expenses, the companys 2010
performance represents a significant improvement year-over-year and positions Calgon Carbon for
continued growth in 2011 and beyond.
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 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 Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
Quarter Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Sales |
$ | 131,469 | $ | 110,692 | $ | 482,341 | $ | 411,910 | ||||||||
Cost of Products Sold |
88,139 | 63,975 | 316,884 | 266,597 | ||||||||||||
Depreciation and Amortization |
6,253 | 5,692 | 22,082 | 18,130 | ||||||||||||
Selling, Administrative & Research |
21,574 | 20,110 | 85,071 | 72,789 | ||||||||||||
Litigation and Other Contingencies |
500 | 711 | 12,000 | 961 | ||||||||||||
116,466 | 90,488 | 436,037 | 358,477 | |||||||||||||
Income from Operations |
15,003 | 20,204 | 46,304 | 53,433 | ||||||||||||
Interest Net |
233 | 149 | 323 | 173 | ||||||||||||
Gain on Acquisitions |
| | 2,666 | | ||||||||||||
Loss on debt extinguishment |
| | | (899 | ) | |||||||||||
Other Expense Net |
(210 | ) | (515 | ) | (1,395 | ) | (3,089 | ) | ||||||||
Income From Operations Before Income Tax
and Equity in Income (Loss) from Equity
Investments |
15,026 | 19,838 | 47,898 | 49,618 | ||||||||||||
Income Tax Provision |
2,520 | 6,567 | 13,160 | 11,754 | ||||||||||||
Income from Operations Before Equity
in Income (Loss) from Equity Investments |
12,506 | 13,271 | 34,738 | 37,864 | ||||||||||||
Equity in Income (Loss) from Equity Investments |
| (43 | ) | 112 | 1,295 | |||||||||||
Net Income |
$ | 12,506 | $ | 13,228 | $ | 34,850 | $ | 39,159 | ||||||||
Net Income per Common Share |
||||||||||||||||
Basic |
$ | .22 | $ | .24 | $ | .62 | $ | .72 | ||||||||
Diluted |
$ | .22 | $ | .23 | $ | .61 | $ | .69 | ||||||||
Weighted Average Shares
Outstanding (Thousands) |
||||||||||||||||
Basic |
56,020 | 55,622 | 55,867 | 54,757 | ||||||||||||
Diluted |
56,816 | 56,654 | 56,742 | 56,529 |
Calgon Carbon Corporation
Segment Data:
Segment Sales | 4Q10 | 4Q09 | YTD 2010 | YTD 2009 | ||||||||||||
Activated Carbon and Service |
116,879 | 96,820 | 427,713 | 358,196 | ||||||||||||
Equipment |
12,615 | 11,132 | 46,010 | 43,916 | ||||||||||||
Consumer |
1,975 | 2,740 | 8,618 | 9,798 | ||||||||||||
Total Sales (thousands) |
$ | 131,469 | $ | 110,692 | $ | 482,341 | $ | 411,910 |
Segment | ||||||||||||||||
Operating Income (loss)* | 4Q10 | 4Q09 | YTD 2010 | YTD 2009 | ||||||||||||
Activated Carbon and Service |
23,446 | 24,988 | 69,584 | 68,717 | ||||||||||||
Equipment |
1,112 | 707 | 1,990 | 2,584 | ||||||||||||
Consumer |
(3,302 | ) | 201 | (3,188 | ) | 262 | ||||||||||
Income from Operations (thousands) |
$ | 21,256 | $ | 25,896 | $ | 68,386 | $ | 71,563 |
* | Before depreciation and amortization. The Activated Carbon and Service segment includes a reduction of $2.8 million and a charge of $8.7 million for the quarter and year-to-date periods ended 2010, respectively, related to legal and other contingencies. The Consumer segment includes a charge of $3.3 million for both the quarter and year-to-date periods 2010 related to a legal contingency. |
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 33,992 | $ | 38,029 | ||||
Restricted cash |
1,173 | 5,556 | ||||||
Receivables |
94,354 | 64,304 | ||||||
Inventories |
101,693 | 84,587 | ||||||
Other current assets |
40,836 | 29,369 | ||||||
Total current assets |
272,048 | 221,845 | ||||||
Property, plant and equipment, net |
186,834 | 155,100 | ||||||
Other assets |
42,681 | 48,773 | ||||||
Total assets |
$ | 501,563 | $ | 425,718 | ||||
Liabilities and Shareholders Equity |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ | 21,442 | $ | | ||||
Current portion of long-term debt |
3,203 | | ||||||
Other current liabilities |
80,529 | 62,021 | ||||||
Total current liabilities |
105,174 | 62,021 | ||||||
Long-term debt |
3,721 | | ||||||
Other liabilities |
49,430 | 56,611 | ||||||
Total liabilities |
158,325 | 118,632 | ||||||
Redeemable Non-Controlling Interest |
274 | | ||||||
Total shareholders equity |
342,964 | 307,086 | ||||||
Total liabilities and shareholders equity |
$ | 501,563 | $ | 425,718 | ||||