UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 11, 2001
CARBO CERAMICS INC.
(Exact name of registrant as specified in its charter)
Delaware |
001-15903 |
72-1100013 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
6565 MacArthur Boulevard, Suite 1050, Irving, TX |
75039 |
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (972) 401-0090
ITEM 5. OTHER EVENTS
On October 11, 2001, Carbo Ceramics Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing third quarter 2001 earnings and ground-breaking on its China plant.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Press release dated October 11, 2001
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CARBO CERAMICS INC.
/s/ C. MARK PEARSON
C. Mark Pearson
President and Chief Executive Officer
/s/ PAUL G. VITEK
Paul G. Vitek
Sr. Vice President, Finance and
Chief Financial Officer
Date: October 11, 2001
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
99.1 Copy of Carbo Ceramics Inc. press release dated October 11, 2001
Conference Call Scheduled for Today, 9:00 a.m. Central Time IRVING, Texas, Oct. 11 -- CARBO Ceramics Inc., a manufacturer of ceramic proppants for use in the hydraulic fracturing of natural gas and oil wells, today announced net income of $8.3 million or $0.55 per share (on a diluted basis), on revenues of $36.6 million, for the quarter ended September 30, 2001. Both revenue and net income were the highest realized for any quarter in the company's history. For the nine months ended September 30, 2001, the company reported net income of $22.1 million or $1.47 per diluted share, on revenues of $106.1 million. Net income for the quarter increased 90 percent versus the third quarter of 2000 while net income for the nine months ended September 30, 2001 increased 107 percent from the same period a year earlier. Third quarter revenues rose 45 percent from the same period a year earlier due to a 32 percent increase in sales volume and a 10 percent increase in the average selling price. The improvement in average selling price was attributable to a price increase that went into effect in January of this year and an increase in the demand for the company's premium-priced, high-strength products. Operating margins continued to improve due primarily to higher throughput rates at the company's manufacturing facilities. Selling, general and administrative expenses increased compared to the third quarter a year earlier due to an increase in expenses that vary directly with sales volume and higher legal and consulting fees. For the nine months ended September 30, 2001, revenues increased 53 percent compared to the same period a year earlier due to a 36 percent increase in sales volume and a 13 percent improvement in the average selling price. The increase in sales volume and improved operating efficiencies at the company's plants resulted in an improvement in operating margins to 32% for the nine months ended September 30, 2001. While selling, general and administrative expenses increased by $2.0 million from the same period a year earlier, expenses as a percentage of revenues declined from 14 percent to 11 percent. The company also announced that construction of its new manufacturing facility in Louyang, China commenced with a ground-breaking ceremony on September 14, 2001. The plant will have annual capacity of approximately 40 million pounds and is expected to be operational by the end of 2002. Commenting on the quarter's results and the outlook for the remainder of the year, C. Mark Pearson, President and Chief Executive Officer of CARBO Ceramics, said, "We are extremely pleased with the results for the third quarter. Each of our plants operated at full capacity and combined to produce record volumes to meet the continued strong demand for our products. Based on the typical seasonal slowdown and the recent decline in gas prices and drilling activity, we may see a modest decline in sales volume for the fourth quarter of this year. However, we believe that our biggest challenge for the future is adding capacity to meet growing demand and we will continue to expand our manufacturing capabilities worldwide." As previously announced, a conference call to discuss the company's third quarter results has been scheduled for Thursday October 11, at 9:00 a.m. central time. The call can be accessed live or on a delayed basis via the company's Web site, http://www.carboceramics.com. CARBO Ceramics Inc. is based in Irving, Texas. This news release contains forward-looking statements that involve risks and uncertainties including price volatility, operation and other risks and other factors described in the Company's publicly available SEC reports, which could cause actual results to differ materially from those indicated in the forward-looking statements. Three Months Ended Nine Months Ended September 30 September 30 2001 2000 2001 2000 (In thousands except per share data) Revenues $ 36,627 $25,269 $106,105 $ 69,368 Operating expenses: Cost of goods sold 20,190 14,967 61,182 43,239 Selling, general & administrative 4,047 3,498 11,359 9,392 Plant start-up costs 15 --- 15 27 Total operating expenses 24,252 18,465 72,556 52,658 Operating income 12,375 6,804 33,549 16,710 Net interest income 235 91 722 97 Other income (expense) 48 7 70 1 Income before income taxes 12,658 6,902 34,341 16,808 Income taxes 4,403 2,547 12,261 6,166 Net income $8,255 $4,355 $22,080 $10,642 Earnings per share: Basic $0.55 $0.30 $1.48 $0.73 Diluted $0.55 $0.29 $1.47 $0.72 Average shares outstanding: Basic 14,933 14,690 14,884 14,641 Diluted 15,044 14,895 15,033 14,814 Selected Balance Sheet Information September 30, 2001 Dec. 31, 2000 (in thousands) Total current assets $77,350 $47,415 Net property, plant and equipment 80,500 78,007 Total assets 157,850 125,422 Total current liabilities 15,943 9,415 Deferred income taxes 11,526 9,867 Shareholders' equity 130,381 106,140 Total liabilities and shareholders' equity $ 157,850 $ 125,422