Calgon Carbon Announces First Quarter Results

Calgon Carbon Corporation (NYSE: CCC) announced results for the first quarter ended March 31, 2012.

The company reported net income of $7.7 million for the first quarter of 2012, as compared to net income of $8.5 million for the first quarter of 2011. On a fully diluted share basis, earnings per common share for the first quarter of 2012 were $0.14 versus $0.15 for the first quarter of 2011.

Net sales for the first quarter of 2012 were $136.6 million, a 9.8% increase over net sales of $124.4 million for the first quarter of 2011. Currency translation had a $0.3 million negative impact on sales for the first quarter of 2012 due to the stronger dollar.

For the first quarter of 2012, sales for the Activated Carbon and Service segment increased 3.9% as compared to the first quarter of 2011. The increase was due to higher demand for activated carbon products and services in four of six market segments: food, metals recovery, environmental air, and environmental water.

Equipment sales increased by 76.8% in the first quarter of 2012 versus the comparable period in 2011 due primarily to higher revenue from ballast water treatment systems and, to a lesser extent, from ion exchange equipment. The increase was partially offset by lower revenue from sales of carbon adsorption equipment.

The increase in consumer sales was attributed to higher demand for activated carbon cloth.

Net sales less the cost of products sold (excluding depreciation and amortization), as a percentage of net sales for the first quarter of 2012 was 31.3%, versus 33.3% for the first quarter of 2011. The decline was due to higher 2012 plant maintenance costs, unfavorable product mix, and increased raw material costs in the Activated Carbon and Service segment as well as a higher proportion of our total revenue attributed to the Equipment segment. Costs related to the repair of two new reactivation facilities in Belgium and China also contributed to the decline.

Selling, administrative and research (SG&A) expenses for the first quarter of 2012 were $23.9 million versus $22.3 for the comparable period of 2011. The increase was primarily the result of employee related expenses, including staff additions at Hyde Marine, the company’s ballast water treatment business. SG&A as a percentage of sales improved to 17.5% as compared to 18.0% for the first quarter of 2011.

Calgon Carbon’s board of directors did not declare a quarterly dividend.

Commenting on the quarter, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, “Demand for activated carbon increased year-over-year, and pricing overall was stable. The sequential increase in Calgon Carbon Japan’s margins was a good start but, going forward we will intensify efforts to improve margins in all regions.”

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

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 Statements of Income
(Dollars in thousands except per share data)
    Quarter Ended
March 31,
2012       2011
Net Sales $ 136,608   $ 124,380  
Cost of Products Sold 93,826 82,989
Depreciation and Amortization 6,513 5,540
Selling, Administrative & Research 23,946 22,332
Environmental and Litigation   153     179  
  124,438     111,040  
Income from Operations 12,170 13,340
Interest Income (Expense) - Net (7 ) 45
Other Income (Expense) - Net   (251 )   (190 )
Income Before Income Tax Provision 11,912 13,195
Income Tax Provision   4,174     4,718  
Net Income $ 7,738   $ 8,477  
Net Income per Common Share
Basic and Diluted $ .14 $ .15

Weighted Average Shares Outstanding (Thousands)
Basic 56,512 56,124
Diluted 57,124 56,893
Calgon Carbon Corporation

Segment Data:
(in thousands)

Segment Sales
1Q12 1Q11
Activated Carbon and Service 117,237 112,884
Equipment 16,118 9,117
Consumer   3,253   2,379  
Net Sales $ 136,608 $ 124,380

Operating Income (Loss)*
1Q12 1Q11
Activated Carbon and Service 17,303 19,067
Equipment 532 (382 )
Consumer   848   195  
Income from Operations * $ 18,683 $ 18,880
*Before depreciation and amortization.
Calgon Carbon Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands)
March 31, December 31,
2012 2011
Current assets:
Cash and cash equivalents $ 11,789 $ 13,574
Restricted cash 1,183 1,152
Receivables 98,722 102,540
Inventories 123,455 118,348
Other current assets   44,598   42,327
Total current assets 279,747 277,941
Property, plant and equipment, net 241,241 234,549
Other assets   40,115   40,500
Total assets $ 561,103 $ 552,990
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt $ 27,615 $ 22,894
Current portion of long-term debt 3,207 3,372
Other current liabilities   83,632   89,721
Total current liabilities 114,454 115,987
Long-term debt 302 1,103
Other liabilities   59,236   58,783
Total liabilities 173,992 175,873
Total shareholders' equity   387,111   377,117
Total liabilities and shareholders' equity $ 561,103 $ 552,990

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