Calgon Carbon Announces Fourth Quarter and 2012 Results

  Calgon Carbon Announces Fourth Quarter and 2012 Results

Business Wire

PITTSBURGH -- February 21, 2013

Calgon Carbon Corporation (NYSE: CCC) announced results for the fourth quarter
and year ended December 31, 2012.

Income from operations for the fourth quarter of 2012 was $14.7 million versus
$8.2 million for the comparable period in 2011. Net income for the fourth
quarter of 2012 was $9.1 million, or $0.16 per common share on a fully diluted
basis, versus $4.9 million, or $0.09 per common share on a fully diluted
basis, for the fourth quarter of 2011.

Commenting on the results, Randy Dearth, Calgon Carbon’s president and chief
executive officer, said, “The Company’s performance for the quarter was solid
despite a challenging business environment.

“In addition to growth from our traditional business in 2013, we will also
realize positive impacts from our cost improvement program that we implemented
in 2012. We will continue to focus on increasing profitability through process
improvement, enhanced operating efficiencies, and worldwide cost reductions.”

“As for the long term, we continue to believe that emerging environmental
markets, including mercury removal from coal-fired power plants, ballast water
treatment, and control of disinfection byproducts in drinking water, will
provide opportunities for significant growth throughout this decade.”

Net sales for the fourth quarter of 2012 were $141.8 million, an increase of
2.6% over sales of $138.2 million for the fourth quarter of 2011. Currency
translation had a $1.0 million negative impact on sales for the fourth quarter
of 2012 due to the stronger U.S. dollar.

For the fourth quarter of 2012, sales for the company’s Activated Carbon and
Service segment were $127.2 million versus $122.0 million for the fourth
quarter of 2011, a 4.2% increase. Higher demand for granular activated carbon
(GAC) products for drinking water treatment and for GAC used in respirators
was primarily responsible for the increase.

Equipment sales declined 15% in the fourth quarter of 2012 versus the
comparable quarter of 2011 due to lower revenue recognition on ballast water
treatment, ion exchange, and carbon adsorption systems. This was partially
offset by higher revenue recognition on ultraviolet systems for drinking water
treatment.

For the fourth quarter of 2012, Consumer segment sales increased $0.5 million,
or 22.7%, as compared to the fourth quarter of 2011. This was due to increased
demand for activated carbon cloth, the company’s sole consumer product.

Net sales less the cost of products sold as a percentage of net sales for the
fourth quarter of 2012 was 31.2%, up slightly from 30.9% for the fourth
quarter of 2011.

Selling, administrative and research expenses for the fourth quarter of 2012
were $20.5 million versus $27.0 million for the comparable period of 2011, a
decrease of 24.1%. Lower research and development activities related to new
products and lower legal and outside services expenses contributed to the
favorable comparison. For the fourth quarter of 2011, selling, administrative
and research expenses included $2.2 million in severance expenses related to
management changes.

Results for the fourth quarter of 2012 included restructuring charges of $2.3
million which were comprised of severance and pension-related expense. These
charges were components of phase one of a cost improvement program that was
completed in the fourth quarter of 2012.

For the year ended December 31, 2012, the company reported income from
operations of $39.9 million versus $57.2 million for the year ended December
31, 2011. Net income for the year ended December 31, 2012, was $23.3 million
versus $39.2 million for the year ended December 31, 2011. Results for the
year ended December 2012 included a $10.2 million restructuring charge related
to a cost reduction program. Earnings per common share on a fully diluted
basis were $0.41 for the year ended December 31, 2012, as compared to $0.69
per common share for the year ended December 31, 2011.

Net sales for the year ended December 31, 2012, were $562.3 million, an
increase of 3.8% over the comparable period in 2011. For the year ended
December 31, 2012, foreign currency translation had a $7.5 million negative
impact on sales due to the stronger U.S. dollar.

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 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 Balance Sheet
(Dollars in thousands)
(Unaudited)
                                                                   
                                                 December 31,     December 31,
                                                 2012             2011
                                                                   
Assets
                                                                   
Current assets:
                                                                   
Cash and cash equivalents                        $   18,161       $   13,574
                                                                   
Restricted cash                                      -                1,152
                                                                   
Receivables                                          101,918          102,540
                                                                   
Inventories                                          107,166          118,348
                                                                   
Other current assets                                 45,961           42,327
                                                                   
Total current assets                                 273,206          277,941
                                                                   
Property, plant and equipment, net                   262,993          234,549
                                                                   
Other assets                                         41,570           40,500
                                                                   
Total assets                                     $   577,769      $   552,990
                                                                   
                                                                   
Liabilities and Shareholders' Equity
                                                                   
Current liabilities:
                                                                   
Short-term debt                                  $   19,565       $   22,894
                                                                   
Current portion of long-term debt                    -                3,372
                                                                   
Other current liabilities                            96,085           89,721
                                                                   
Total current liabilities                            115,650          115,987
                                                                   
Long-term debt                                       44,408           1,103
                                                                   
Other liabilities                                    66,414           58,783
                                                                   
Total liabilities                                    226,472          175,873
                                                                   
Total shareholders' equity                           351,297          377,117
                                                                   
Total liabilities and shareholders'              $   577,769      $   552,990
equity
                                                                       

                                                                  
                                                                    
Calgon Carbon Corporation
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
                                                                    
                       Quarter Ended                 Twelve Months Ended
                       December 31,                  December 31,
                       2012          2011            2012          2011
                                                                    
Net Sales              $ 141,777     $ 138,200       $ 562,255     $ 541,472  
                                                                    
Cost of                  97,556        95,501          392,382       364,384
Products Sold
                                                                    
Depreciation
and                      6,609         7,015           26,320        24,337
Amortization
                                                                    
Selling,
Administrative           20,517        27,015          93,370        95,856
& Research
                                                                    
Restructuring            2,253         -               10,211        -
Charges
                                                                    
Environmental
and                      130           420             111           (337    )
Contingencies
                                                                    
                         127,065       129,951         522,394       484,240  
                                                                    
Income from              14,712        8,249           39,861        57,232
Operations
                                                                    
Interest
Income                   (54     )     160             (45     )     467
(Expense) -
Net
                                                                    
Other Income
(Expense) -              (674    )     (818    )       (2,480  )     (1,309  )
Net
                                                                    
Income Before
Income Tax               13,984        7,591           37,336        56,390
Provision
                                                                    
Income Tax               4,881         2,650           14,064        17,166   
Provision
                                                                    
Net Income             $ 9,103       $ 4,941         $ 23,272      $ 39,224   
                                                                    
Net Income per
Common Share
Basic                  $ .16         $ .09           $ .41         $ .70
                                                                    
Diluted                $ .16         $ .09           $ .41         $ .69
                                                                    
Weighted
Average Shares
Outstanding
(Thousands)
Basic                    55,390        56,381          56,304        56,243
                                                                    
Diluted                  55,837        57,032          56,836        56,994
                                                                              

                                                                  
                                                                    
Calgon
Carbon
Corporation
                                                                    
                                                                    
Segment
Data:
                                                                    
Segment              4Q12            4Q11            YTD 2012      YTD 2011
Sales
                                                                    
Activated
Carbon and             127,194         122,046         485,755       486,468
Service
Equipment              11,833          13,913          66,050        46,274
Consumer               2,750           2,241           10,450        8,730    
                                                                    
Total Sales          $ 141,777       $ 138,200       $ 562,255     $ 541,472
(thousands)
                                                                    
Segment
Operating
Income               4Q12            4Q11            YTD 2012      YTD 2011
(loss)*
                                                                    
Activated
Carbon and             21,924          16,350          61,695        85,989
Service
Equipment              (1,203  )       (629    )       2,054         (2,172  )
Consumer               600             (457    )       2,432         (2,248  )
                                                                    
Income from
Operations           $ 21,321        $ 15,264        $ 66,181      $ 81,569
(thousands)
                                                                    
                                                                    

* Before depreciation and amortization. The 2012 quarter includes a $2.3
million restructuring charge related to the Activated Carbon and Service
segment. The year to date 2012 period includes a $10.2 million restructuring
charge and a $1.7 million pension charge related to the Activated Carbon and
Service Segment. The 2012 year to date period also includes a $1.7 million
charge related to the Company's former CEO which has been primarily allocated
to the Activated Carbon and Service segment. The 2011 quarter includes a $0.3
million charge related to the former PreZerve product line in the Consumer
Segment and a $2.2 million separation charge primarily allocated to the
Activated Carbon and Service segment. The year to date 2011 period includes a
$1.3 million reduction in an environmental liability in the Activated Carbon
and Service segment as well as the above mentioned separation charge. The year
to date 2011 period also includes $2.2 million of charges related to the
former PreZerve product line in the Consumer segment.

Contact:

Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795