Calgon Carbon Announces First Quarter Results

PITTSBURGH, May. 02 /PRNewswire/ --

PITTSBURGH, May 2 /PRNewswire-FirstCall/ -- Calgon Carbon Corporation announced results for the first quarter ended March 31, 2008.

The company reported net income of $10.9 million for the first quarter of 2008, as compared to net income of $2.0 million for the first quarter of 2007. On a fully diluted share basis, earnings per common share for the first quarter of 2008 were $0.21 versus $0.05 for the first quarter of 2007.

Included in the first quarter results is a non-recurring pre-tax gain of $9.3 million from the settlement of a lawsuit involving Calgon Carbon's purchase of the common stock of Advanced Separation Technologies Incorporated (AST) in 1996. On an after-tax basis the gain was $5.7 million, or $0.11 per common share on a fully diluted basis.

Net sales for the first quarter of 2008 were $90.3 million versus first quarter 2007 net sales of $83.0 million, an increase of 8.8%. Currency translation had a $2.7-million positive impact on sales for the first quarter of 2008 due to the stronger Euro and the British Pound Sterling.

For the first quarter of 2008, sales for the Activated Carbon and Service segment increased by 12.0% versus the first quarter of 2007. The increase was due to higher demand and pricing in the food, environmental water treatment, respirator, and mercury removal markets and to higher demand in the environmental air treatment and metals recovery markets. Equipment sales declined by 11.6% in the first quarter of 2008 versus the comparable period in 2007, primarily due to lower demand for ion exchange systems, which was partially offset by an increase in demand for ultraviolet light systems. A 10.5% increase in Consumer sales for the first quarter of 2008 was attributable to higher demand for PreZerve(R) products and carbon cloth.

Net sales less the cost of products sold as a percentage of net sales for the first quarter of 2008 was 31.6% versus 29.6% for the first quarter of 2007. The increase was primarily due to higher pricing on certain carbon and service products.

Selling, administrative and research (SG&A) expenses for the first quarter of 2008 increased by 5.6% versus the comparable period in 2007. In the first quarter of 2007, SG&A expense included the positive effect of a settlement with Trojan Technologies related to the company's patents for the use of ultraviolet light to disinfect drinking water.

Equity in income from equity investments was $0.4 million for the first quarter of 2008 versus $1.1 million for the comparable period in 2007. The decrease was primarily due to higher product costs.

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

Commenting on the quarter, John Stanik, Calgon Carbon's chairman, president and chief executive officer, said, "We are off to a good start in 2008. The first quarter results reflect continued progress in obtaining fair market prices for our activated carbon products and services. Revenue growth, derived from price increases and sales of outsourced products, will remain a key driver of the company's performance throughout the year."

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making air and water cleaner and safer.

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.

Calgon Carbon Corporation Condensed Consolidated Statement of Income (Dollars in thousands except per share data) (Unaudited) Quarter Ended March 31, 2008 2007 Net Sales $90,331 $83,030 Cost of Products Sold 61,765 58,424 Depreciation and Amortization 3,926 4,261 Selling, Administrative & Research 16,291 15,434 Gain from AST Settlement (9,250) - 72,732 78,119 Income from Operations 17,599 4,911 Interest Expense - Net (839) (1,148) Other Expense - Net (90) (403) Income From Operations Before Income Tax and Equity in Income from Equity Investments 16,670 3,360 Income Tax Provision 6,234 2,380 Income from Operations Before Equity in Income from Equity Investments 10,436 980 Equity in Income from Equity Investments 438 1,054 Net Income $10,874 $2,034 Net Income per Common Share Basic Diluted $.27 $.05 $.21 $.05 Weighted Average Shares Outstanding (Thousands) Basic 40,240 40,225 Diluted 51,756 42,661 Calgon Carbon Corporation Condensed Consolidated Balance Sheet (Dollars in thousands) (Unaudited) March 31, December 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $35,135 $30,304 Receivables 58,524 57,548 Inventories 83,761 81,280 Other current assets 19,661 20,546 Total current assets 197,081 189,678 Property, plant and equipment, net 110,828 105,512 Other assets 52,492 52,950 Total assets $360,401 $348,140 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt $1,566 $1,504 Current portion of long-term debt 62,662 62,507 Other current liabilities 52,251 55,750 Total current liabilities 116,479 119,761 Long-term debt 12,925 12,925 Other liabilities 42,127 43,205 Total liabilities 171,531 175,891 Total shareholders' equity 188,870 172,249 Total liabilities and shareholders' equity $360,401 $348,140 Calgon Carbon Corporation Segment Data: Segment Sales 1Q08 1Q07 Carbon and Service 76,898 68,683 Equipment 9,697 10,966 Consumer 3,736 3,381 Total Sales (thousands) $90,331 $83,030 Segment Operating Income (Loss)* 1Q08 1Q07 Carbon and Service 17,376 8,473 Equipment 3,443 (129) Consumer 706 828 Total Income from Operations (thousands) $21,525 $9,172 *Before depreciation and amortization