Friday February 26, 2010
Calgon Carbon Announces Fourth Quarter Results
Source: Business Wire
The company reported net income of $13.2 million or $0.23 per common share on a fully diluted basis for the fourth quarter of 2009. Net income for the fourth quarter of 2008 was $6.3 million or $0.11 per common share on a fully diluted basis, which consisted of income of $0.12 from continuing operations and a loss of $0.01 from discontinued operations.
Income from operations for the fourth quarter of 2009 was $20.2 million, as compared to $11.7 million for the fourth quarter of 2008.
Net sales for the fourth quarter of 2009 were $110.7 million versus fourth quarter 2008 sales of $102.4 million, an increase of 8.1%. Currency translation had a $3.5-million positive impact on sales for the fourth quarter of 2009 due to the stronger Euro and British Pound Sterling.
For the fourth quarter of 2009, sales for the Activated Carbon and Service segment increased by 14.0% versus the fourth quarter of 2008. The increase was primarily due to higher demand for activated carbon products in the environmental air treatment market and higher pricing in the food and potable water markets. Equipment sales decreased by 26.7%, due to lower demand for ion exchange, odor control and traditional carbon adsorption systems. Consumer sales for the fourth quarter of 2009 increased 20.1% due to higher demand for activated carbon cloth and PreZerve® products.
Net sales less the cost of products sold as a percentage of net sales for the fourth quarter of 2009 was 42.2%, versus 33.0% for the fourth quarter of 2008. The increase was primarily due to higher pricing for certain activated carbon products and services and $2.4 million related to the receipt of, or estimated refunds of, tariff deposits.
Selling, administrative and research expenses for the fourth quarter of 2009 were 18.8% higher than for the comparable period of 2008 as a result of acquisition due diligence costs, higher employee-related costs and legal expense.
Net sales for the year ended December 31, 2009 were $411.9 million, versus $400.3 million for the comparable period in 2008, an increase of 2.9%. For the year, foreign currency translation had a $10.2-million negative impact on sales due to the stronger U.S. dollar.
For the year ended December 31, 2009, net income was $39.2 million, which includes earnings of $4.8 million from the reversal of valuation allowances related to foreign tax credits. For the year ended December 31, 2008, the company reported net income of $31.6 million which consisted of $28.8 million from continuing operations and $2.8 million from discontinued operations. Results for the full year 2008 also included a non-recurring after-tax gain of $5.7 million from the settlement of a law suit.
Fully diluted earnings per share for the year ended December 31, 2009 were $0.69. For 2008, earnings per share on a fully diluted basis were $0.59 which consisted of $0.54 from continuing operations and $0.05 from discontinued operations.
In May 2008, Accounting Standards Codification (ASC) 470-20 “Debt with Conversion and Other Options” was issued. ASC 470-20 affected the accounting treatment for convertible debt instruments that allow for either mandatory or optional cash settlements. ASC 470-20 affected the accounting associated with the company’s senior convertible notes. Guidance within this ASC required the company to recognize additional non-cash interest expense based on the market rate for similar debt instruments without the conversion feature, as well as losses on induced conversions. ASC 470-20 was effective for fiscal periods beginning in 2009 and required retrospective application. The company adopted this accounting guidance in the first quarter of 2009 and, accordingly, the prior periods’ financial statements included herein have been adjusted. Adoption of this guidance reduced previously reported earnings per diluted share for the fourth quarter and full year fiscal 2008 by $0.03 and $0.13, respectively.
Calgon Carbon’s board of directors did not declare a quarterly dividend.
Commenting on the results for the quarter, John S. Stanik, Calgon Carbon’s president and chief executive officer said, “We are pleased with the growth achieved in both sales and earnings in the fourth quarter and for the full year. Favorable pricing and increased demand for activated carbon to remove mercury from coal-fired power plant flue gas offset the economic slowdown’s adverse effect on demand for certain products and services.”
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.
Contact:
Calgon Carbon Corporation, Gail A. Gerono, 412-787-6795
