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Calgon Carbon Announces Full Year and Fourth Quarter Results
PITTSBURGH, PA — February 5, 2002 — Calgon Carbon
Corporation announced results for the full year and fourth quarter
ended December 31, 2001.
Fourth Quarter
Sales for the fourth quarter of 2001 were $64.0 million, versus $66.6
million reported for the fourth quarter of 2000. Sales increased in
the Engineered Solutions segment due to higher sales of the company's
ion exchange and ultraviolet light systems. Consumer sales were up
over the fourth quarter of 2000 due to greater demand for the
company's carbon cloth. Sales in both the Activated Carbon and Service
segments were adversely affected in the fourth quarter of 2001 by the
continuing downturn in the economy.
Operating income before depreciation, amortization, and restructuring
charges for the fourth quarter of 2001 increased 8.7% despite lower
Carbon and Service sales and special charges totaling $1.1 million,
including higher production costs related to a strike at the company's
Big Sandy plant, severance expense, and costs related to the
construction of the company's new activated carbon plant in China,
which will begin operation later this year. The increase in Engineered
Solutions operating income in the fourth quarter of 2001 versus 2000
reflected higher sales in the period. Operating loss for the Consumer
segment was lower in the fourth quarter 2001 due to a combination of
higher sales and lower promotional expenses.
For the fourth quarter of 2001, net income, including the $0.3 million
pre-tax restructuring charge, was $0.2 million versus $2.6 million in
the fourth quarter of 2000, including the $2.3-million pre-tax
reversal of the 1999 restructuring charge. On a per share basis, the
company earned $0.01 in the fourth quarter of 2001 versus $0.07 in the
comparable period in 2000.
Full Year
Sales for the year 2001 were $270.6 as compared to $269.0 in 2000, an
increase of 1%. Sales were up year-over-year in all business segments,
except Activated Carbon. Net income for 2001, including a pre-tax
restructuring charge of $0.3 million, was $8.0 million, as compared to
$9.8 million in 2000, including a $2.3-million pre-tax reversal of a
1999 restructuring charge and $1.9 million in special charges recorded
as normal operating costs to adjust the associated liabilities to
management's estimates. Earnings per share for 2001 were $0.21 versus
$0.25 for 2000. On a diluted basis, earnings per share for 2001 were
$0.20.
Commenting on the results, Jim Cederna, Calgon Carbon's chairman and
chief executive officer, said, "We are pleased with the successful
implementation of our strategy to grow Service and Solutions sales. We
are better positioned to grow our Carbon and Consumer sales in the
future because of the changes and investments we made during 2001. Our
people also did a good job of controlling expenses to help offset
higher materials, energy, and other costs. Based upon the progress
made in 2001, we expect company sales to grow faster in 2002 and
earnings to improve in spite of the global economy."
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania,
is a global leader in service and solutions for purifying water and
air. The company employs approximately 1,000 people at 13 operating
facilities and 12 sales and service centers worldwide.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This document contains certain
statements that are forward-looking relative to the company's future
strategy and performance. 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 in this document. Further, the company operates in an
industry where it may be influenced by economic and other factors
beyond the company's control.
Segment Data
| Segment Sales |
2001 |
2000 |
4Q01 |
4Q00 |
|
| Activated Carbon |
$ 109,317 |
$ 124,695 |
$ 27,402 |
$ 29,305 |
| Service |
92,336 |
90,978 |
21,336 |
23,821 |
| Engineered Solutions |
48,227 |
32,724 |
11,193 |
10,150 |
| Consumer Health |
20,713 |
20,586 |
4,102 |
3,358 |
|
| Total Sales (thousands) |
$ 270,593 |
$ 268,983 |
$ 64,033 |
$ 66,634 |
|
| Segment Operating Income* |
2001 |
2000 |
4Q01 |
4Q00 |
|
| Activated Carbon |
$ 14,203 |
$ 21,769 |
$ 2,319 |
$ 1,944 |
| Service |
20,824 |
19,743 |
3,591 |
4,251 |
| Engineered Solutions |
3,001 |
(1,062) |
532 |
490 |
| Consumer Health |
(2,031) |
(2,250) |
(1,215) |
(1,876) |
|
| Total Income (loss) from operations (thousands) |
$ 35,997 |
$ 38,200 |
$ 5,227 |
$ 4,809 |
|
| |
| * Before depriciation, amortization, and restructuring charges. |
Condensed Consolidated Statement of Income
(Dollars in thousands except per share data)
(Unaudited)
|
Quarter Ended |
|
Twelve Months Ended |
|
December 31, 2001 |
December 31, 2000 |
|
December 31, 2001 |
December 31, 2000 |
|
| Net Sales |
$ 64,033 |
$ 66,634 |
|
$ 270,593 |
$ 268,983 |
|
| Cost of Products Sold |
45,895 |
46,014 |
|
183,505 |
173,810 |
| Depreciation and Amortization |
5,339 |
4,962 |
|
20,336 |
20,597 |
| Selling, Administrative & Research |
12,911 |
15,811 |
|
51,091 |
56,973 |
| Restructuring Charge |
324 |
(2,284) |
|
324 |
(2,284) |
|
| |
64,469 |
64,503 |
|
255,256 |
249,096 |
|
| Income (Loss) from Operations |
(436) |
2,131 |
|
15,337 |
19,887 |
| Interest Income (Expense) – Net |
(484) |
(1,185) |
|
(3,152) |
(4,820) |
| Other Income (Expense) – Net |
358 |
(1,977) |
|
(564) |
(375) |
|
| Income (Loss) Before Income, Taxes and Minority Interest |
(562) |
2,923 |
|
11,621 |
14,692 |
| Provision (Benefit) for Income Taxes |
(792) |
250 |
|
3,594 |
4,496 |
|
| Income Before Minority Interest |
230 |
2,673 |
|
8,027 |
10,196 |
| Minority Interest |
— |
(100) |
|
(53) |
(344) |
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| Net Income |
$ 230 |
$2,573 |
|
$7,974 |
$9,852 |
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| Basic Net Income per Common Share |
$.01 |
$.07 |
|
$.21 |
$.25 |
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| Diluted Net Income per Common Share |
$.01 |
$.07 |
|
$.20 |
$.25 |
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| Weighted Average Shares Outstanding (Thousands) |
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| Basic |
38,831 |
38,810 |
|
38,811 |
38,807 |
| Diluted |
39,266 |
38,855 |
|
39,138 |
38,870 |
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
|
December 31, 2001 |
December 31, 2000 |
|
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| ASSETS |
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| Current assets: |
|
|
| Cash and cash equivalents |
$ 3,567 |
$ 4,334 |
| Receivables |
44,233 |
50,906 |
| Inventories |
42,104 |
36,938 |
| Other current assets |
14,631 |
11,907 |
|
|
| Total current assets |
104,535 |
104,085 |
| Property, plant and equipment, net |
143,661 |
151,350 |
| Other assets |
83,518 |
84,205 |
|
| Total assets |
$ 331,714 |
$ 339,640 |
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities: |
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|
| Short-term debt |
$ 9,487 |
$ 9,120 |
| Long-term debt due within one year |
1,275 |
10,180 |
| Other current liabilities |
37,705 |
44,079 |
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| Total current liabilities |
48,467 |
63,379 |
| Long-term debt |
53,635 |
48,077 |
| Other liabilities |
45,803 |
41,251 |
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| Total liabilities |
147,905 |
152,707 |
| Minority Interest |
— |
1,944 |
| Total shareholders’ equity |
183,809 |
184,989 |
|
| Total liabilities and shareholders’ equity |
$331,714 |
$339,640 |
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