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
Calgon Carbon Announces Fourth Quarter and 2012 Results
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