0001157523-12-004368.txt : 20120808 0001157523-12-004368.hdr.sgml : 20120808 20120808081946 ACCESSION NUMBER: 0001157523-12-004368 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120808 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120808 DATE AS OF CHANGE: 20120808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALGON CARBON CORPORATION CENTRAL INDEX KEY: 0000812701 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INORGANIC CHEMICALS [2810] IRS NUMBER: 250530110 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10776 FILM NUMBER: 121015127 BUSINESS ADDRESS: STREET 1: P O BOX 717 STREET 2: 400 CALGON CARBON DR CITY: PITTSBURGH STATE: PA ZIP: 15230-0717 BUSINESS PHONE: 4127876700 MAIL ADDRESS: STREET 1: P.O. BOX 717 CITY: PITTSBURGH STATE: PA ZIP: 15230-0717 8-K 1 a50369547.htm CALGON CARBON CORPORATION 8-K

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): August 8, 2012

CALGON CARBON CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-10776

25-0530110

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

P.O. Box 717, Pittsburgh, PA  15230-0717

15230-0717

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code (412) 787-6700

 

(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02 Results of Operations and Financial Condition.

On August 8, 2012, Calgon Carbon Corporation issued a Press Release announcing its results for the second fiscal quarter ended June 30, 2012 and certain other information that is furnished as Exhibit 99.1 hereto.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.  The following Exhibit 99.1 is being furnished pursuant to Item 601 of Regulation S-K and General Instruction B2 to this Form 8-K:

Exhibit No.   Description
99.1 Press Release dated August 8, 2012


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.

CALGON CARBON CORPORATION

(Registrant)
 
Date: August 8, 2012

/s/ Richard D. Rose

(Signature)

Richard D. Rose

Senior Vice President, General Counsel and Secretary

EX-99.1 2 a50369547ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

Calgon Carbon Reports 2012 Second Quarter Results

Q2 2012 results versus Q2 2011 results:

  • Net Sales up 9.7%
  • Equipment sales up 70.3%
  • Fully diluted EPS $0.19 versus $0.20
  • Gross margin (before depreciation and amortization) 31.0% versus 32.8% due to higher maintenance and coal costs
  • Selling, administrative and research expense 15.6% of sales versus 16.6% of sales

PITTSBURGH--(BUSINESS WIRE)--August 8, 2012--Calgon Carbon Corporation (NYSE: CCC) reported results for the second quarter ended June 30, 2012.

The company reported net sales of $148.4 million for the second quarter of 2012, a $13.1 million, or 9.7% increase over the second quarter of 2011. Currency exchange had a $3.1 million negative effect on sales for the second quarter of 2012 due to the stronger dollar.

Net income for the second quarter of 2012 was $10.9 million versus $11.3 million for the comparable period of 2011. Net income for the second quarter of 2011 included a $1.3 million reduction in the estimate to complete a remediation project at one of the company’s production facilities. On a fully diluted basis, net income per common share for the second quarter of 2012 was $0.19 as compared to $0.20 for the second quarter of 2011.

For the second quarter of 2012, sales for the Activated Carbon and Service segment increased 4.0%, as compared to the second quarter of 2011. The increase was primarily due to higher demand for certain activated carbon and service products in the potable water market and higher pricing on activated carbon products for the metals recovery market.


Equipment sales for the second quarter of 2012 increased 70.3% versus the comparable period in 2011, primarily due to higher revenue recognition from ballast water treatment systems. For the second quarter of 2012, Consumer sales were comparable to the second quarter of 2011.

For the second quarter of 2012, net sales less the cost of products sold as a percentage of net sales was 31.0% versus 32.8% for the second quarter of 2011. The decline resulted primarily from higher coal and plant maintenance costs. Results for the second quarter of 2011 included a $1.3 million charge related to a discontinued product line in the company’s Consumer segment.

Selling, administrative and research expenses for the second quarter of 2012 were $23.1 million as compared to $22.5 million for the second quarter of 2011. The increase was principally due to expenses related to the testing of new activated carbon products. Selling, administrative and research expenses as a percentage of sales improved to 15.6% for the second quarter of 2012 versus 16.6% for the second quarter of 2011.

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

Net sales for the six months ended June 30, 2012, were $285.0 million, a $25.3 million, or a 9.8%, increase over the comparable period in 2011. Currency translation had a $3.3 million negative impact on sales for the first half of 2012 due to the stronger dollar.

Net income for the six months ended June 30, 2012, was $18.6 million versus $19.8 million for the comparable period of 2011. Fully diluted net income per common share for the first half of 2012 was $0.33. Fully diluted net income per common share for the first half of 2011 was $0.35.

Randy Dearth, Calgon Carbon’s president and chief executive officer, commented on the results, “Calgon Carbon is a company with strong fundamentals and unprecedented opportunities as a provider of environmental solutions. Several factors, including the global economic slowdown, rising raw material and maintenance costs, and delays in implementation of environmental regulations, have created a challenging business environment for the company. In response, Calgon Carbon’s management has initiated a program which, I believe, will result in annual cost savings in excess of $10 million.”

“As I assume leadership of the company, my first priority will be to fully implement this cost reduction program as quickly as possible. I am also committed to identifying additional initiatives that will further strengthen the company’s competitive position. I believe that these efforts should result in significant and sustained earnings growth.”


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 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 Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
  Quarter Ended   Six Months Ended
June 30, June 30,
2012   2011 2012   2011
 
Net Sales $ 148,403   $ 135,298   $ 285,011   $ 259,678  
 
Cost of Products Sold 102,456 90,864 196,282 173,853
 
Depreciation and Amortization 6,442 5,655 12,955 11,195
 
Selling, Administrative & Research 23,092 22,499 47,038 44,831
 
Environmental and Litigation   (172 )   (1,135 )   (19 )   (956 )
 
  131,818     117,883     256,256     228,923  
 
Income from Operations 16,585 17,415 28,755 30,755
 
Interest Income (Expense) - Net 17 58 10 103
 
Other Income (Expense) - Net   (513 )   (46 )   (764 )   (236 )
 
Income Before Income Tax Provision 16,089 17,427 28,001 30,622
 
Income Tax Provision   5,205     6,136     9,379     10,854  
 
Net Income $ 10,884   $ 11,291   $ 18,622   $ 19,768  
 
Net Income per Common Share
Basic $ .19 $ .20 $ .33 $ .35
 
Diluted $ .19 $ .20 $ .33 $ .35
 

Weighted Average Shares Outstanding (Thousands)

Basic 56,639 56,188 56,576 56,156
 
Diluted 57,190 57,054 57,157 56,974
 

Calgon Carbon Corporation

       

Segment Data:

 

Segment Sales

2Q12 2Q11 YTD 2012 YTD 2011
 
Activated Carbon and Service 126,353 121,522 243,590 234,406
Equipment 19,887 11,681 36,005 20,798
Consumer   2,163   2,095     5,416   4,474  
 
Total Sales (thousands) $ 148,403 $ 135,298 $ 285,011 $ 259,678
 
Segment

Operating Income (loss)*

2Q12 2Q11 YTD 2012 YTD 2011
 
Activated Carbon and Service 20,526 24,890 37,829 43,957
Equipment 1,999 (484 ) 2,531 (866 )
Consumer   502   (1,336 )   1,350   (1,141 )
 
Income from Operations (thousands) $ 23,027 $ 23,070 $ 41,710 $ 41,950
 

*Before depreciation and amortization. The 2011 quarter and year to date periods include a $1.3 million charge related to a discontinued product line in the Consumer Segment as well as a $1.3 million reduction in an environmental liability in the Activated Carbon and Service segment.

 

Calgon Carbon Corporation

Condensed Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)
   
June 30, December 31,
2012 2011
 
Assets
 
Current assets:
 
Cash and cash equivalents $ 16,575 $ 13,574
 
Restricted cash 1,106 1,152
 
Receivables 102,426 102,540
 
Inventories 118,297 118,348
 
Other current assets   45,728   42,327
 
Total current assets 284,132 277,941
 
Property, plant and equipment, net 253,791 234,549
 
Other assets   40,438   40,500
 
Total assets $ 578,361 $ 552,990
 
Liabilities and Shareholders' Equity
 
Current liabilities:
 
Short-term debt $ 35,065 $ 22,894
 
Current portion of long-term debt 2,572 3,372
 
Other current liabilities   87,553   89,721
 
Total current liabilities 125,190 115,987
 
Long-term debt 284 1,103
 
Other liabilities   58,331   58,783
 
Total liabilities 183,805 175,873
 
Total shareholders' equity   394,556   377,117
 

Total liabilities and shareholders' equity

$ 578,361 $ 552,990

CONTACT:
Calgon Carbon Corporation
Gail A. Gerono, 412-787-6795
www.calgoncarbon.com