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Calgon Carbon Announces Third Quarter Results

Selling, administrative and research expenses for the third quarter of 2013 were $21.0 million, as compared to $25.8 million for the third quarter of 2012. The decrease relates to expense control efforts as well as the absence of charges in 2012, including $3.4 million in employee-related expenses.

Net sales for the nine months ended September 30, 2013 were $414.8 million, a 1.3% decrease over the comparable period of 2012. Revenue from ballast water treatment systems was $14.8 million lower than in the comparable period of 2012. In addition, currency translation had a $10.0 million negative effect on sales for the nine months ended September 30, 2013, primarily due to the weaker yen.

Net income for the nine months ended September 30, 2013, was $34.7 million versus $14.2 million for the comparable period of 2012. Income from operations for the nine months ended September 30, 2012 was $53.1 million as compared to $25.1 million for nine months ended September 30, 2012. The 111.1% increase includes a significant positive impact from the company’s cost improvement initiatives.

Fully diluted net income per common share for the nine months ended September 30, 2013, was $0.64 as compared to $0.25 for the comparable period of 2012.

Commenting on the results, Randy Dearth, Calgon Carbon’s President and Chief Executive Officer, said, “The results for the quarter and year-to-date periods clearly show the significant benefits from our corporate initiatives. Going forward, these initiatives along with our focus on growth opportunities will strengthen our position as a leader in the markets we serve.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.

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 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 (Loss)
(Dollars in thousands except per share data)
(Unaudited)
 
Quarter Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
 
Net Sales $ 139,375   $ 135,467   $ 414,847   $ 420,478  
 
Cost of Products Sold (Excluding Depreciation) 93,001 98,544 279,473 294,826
 
Depreciation and Amortization 7,347 6,756 21,399 19,711
 
Selling, Administrative & Research 20,976 25,815 60,755 72,853
 
Restructuring (87 ) 7,958 (129 ) 7,958
 
Environmental and Litigation   266     -     266     (19 )
 
  121,503     139,073     361,764     395,329  
 
Income (Loss) from Operations 17,872 (3,606 ) 53,083 25,149
 
Interest (Expense) Income - Net (119 ) (1 ) (289 ) 9
 
Other Expense - Net   (395 )   (1,042 )   (1,564 )   (1,806 )
 
Income Before Income Tax Provision (Benefit) 17,358 (4,649 ) 51,230 23,352
 
Income Tax Provision (Benefit)   5,473     (196 )   16,561     9,183  
 
Net Income (Loss) $ 11,885   $ (4,453 ) $ 34,669   $ 14,169  
 
Other Comprehensive Income (Loss), Net of Tax
Foreign Currency Translation 4,551 3,797 (967 ) 1,454
Derivatives (391 ) (17 ) 168 564
Employee Benefit Plans   425     (39 )   1,759     (1,071 )
 
Comprehensive Income (Loss) $ 16,470   $ (712 ) $ 35,629   $ 15,116  
 
Net Income (Loss) per Common Share
Basic $ .22 $ (.08 ) $ .64 $ .25
Diluted $ .22 $ (.08 ) $ .64 $ .25
 

Weighted Average Shares Outstanding (Thousands)

Basic 53,900 56,682 53,774 56,611
 
Diluted 54,674 57,197 54,506 57,171
 
                   
 

Calgon Carbon Corporation

 
 

Segment Data (unaudited):

(in thousands)
 

Segment Sales

3Q13 3Q12 YTD 2013 YTD 2012
 
Activated Carbon and Service $ 123,027 $ 114,971 $ 365,933 $ 358,561
Equipment 13,419 18,212 41,629 54,217
Consumer   2,929     2,284   7,285     7,700
 
Net Sales $ 139,375 $ 135,467 $ 414,847 $ 420,478
 
Segment

Operating Income (loss) *

3Q13 3Q12 YTD 2013 YTD 2012
 
Activated Carbon and Service $ 24,951 $ 9,900 $ 73,556 $ 47,729
Equipment (628 ) 726 (859 ) 3,257
Consumer   809     482   1,656     1,832
 

Income from Operations *

$ 25,132 $ 11,108 $ 74,353 $ 52,818
 

* Before depreciation and amortization and restructuring. The 2013 quarter and year to date periods include a $0.2 million and $1.1 million benefit related to a multi-employer pension plan within the Activated Carbon and Service segment. The 2012 quarter and year to date periods include a $1.7 million multi-employer pension charge, a $1.7 million charge related to an agreement with the Company's former Chief Executive Officer, and a $1.7 million write-off for obsolete inventory which were all within the Activated Carbon and Service segment.

 
           
 
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
 
September 30, December 31,
2013 2012
 
Assets
 
Current assets:
 
Cash and cash equivalents $ 29,977 $ 18,161
 
Receivables 105,169 101,918
 
Inventories 107,842 107,166
 
Other current assets   40,816   45,961
 
Total current assets 283,804 273,206
 
Property, plant and equipment, net 264,792 262,993
 
Other assets   39,470   41,570
 
Total assets $ 588,066 $ 577,769
 
Liabilities and Shareholders' Equity
 
Current liabilities:
 
Short-term debt $ 270 $ 19,565
 
Other current liabilities   78,937   96,085
 
Total current liabilities 79,207 115,650
 
Long-term debt 48,340 44,408
 
Other liabilities   67,895   66,414
 
Total liabilities 195,442 226,472
 
Total shareholders' equity   392,624   351,297
 

Total liabilities and shareholders' equity

$ 588,066 $ 577,769
 




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