Conference Call Scheduled for Today, 10:00 a.m. Central Time --
Quarterly revenues of $69.3 million were down 22% compared to the
prior year, despite a corresponding 50% drop in the U.S. drilling
rig count -- Quarterly global proppant sales volume of 216 million
pounds was down 23 percent versus the prior year -- Net income of
$9.4 million, or $0.41 per diluted share, for the quarter --
Quarterly dividend was raised for the 9th consecutive year HOUSTON,
July 30 /PRNewswire-FirstCall/ -- CARBO Ceramics Inc. (NYSE:CRR)
today reported net income of $9.4 million, or $0.41 per diluted
share, on revenues of $69.3 million for the quarter ended June 30,
2009. The Company previously reported that it had sold its fracture
and reservoir diagnostics business. Because of the transaction,
which closed on October 10, 2008, the 2008 operating results of
this business have been accounted for as discontinued operations.
Continuing operations include the Company's ceramic proppant,
software, consulting services and geotechnical monitoring
businesses. President and CEO Gary Kolstad commented, "The economic
challenges faced by the oil and gas industry over the last several
months have resulted in significant reductions in drilling and
completion activities. Given this trend, we are pleased with our
second quarter operating results. While our sales volumes and
associated revenues were lower than those experienced last quarter
and during the same period last year, the percentage declines in
either case are better than the declines experienced in the
worldwide and North American rig counts. In the second quarter, we
continued to see strong demand for our newest product
CARBOHYDROPROP in the large resource plays, and more operator
acceptance of the benefits of Economic Conductivity(TM). We believe
these events are particularly significant given the operating
environment we faced during the quarter, and are a testament to the
value that E&P companies can derive from CARBO's products."
Second Quarter Results Revenues for the second quarter of 2009
decreased 22 percent compared to the second quarter of 2008 and
decreased 24 percent compared to the first quarter of 2009.
Worldwide proppant sales volume totaled 216 million pounds for the
second quarter of 2009, representing a year-over-year decrease of
23 percent and a sequential decrease of 14 percent. Quarterly
proppant sales volume in the U.S. decreased 17 percent
year-over-year, but actually grew by 1 percent sequentially, in
spite of drilling rig count decreases of approximately 50 percent
and 30 percent, respectively. Operating profit for the second
quarter of 2009 decreased $3.2 million compared to the second
quarter of 2008, while operating margins increased slightly, as a
lower sales volume was partially offset by reduced freight and
other operational costs and a favorable product mix. Selling,
general and administrative expenses were virtually flat
year-over-year and lower sequentially, as savings were realized
from cost reduction initiatives. Income from continuing operations
for the second quarter of 2009 decreased $2.4 million compared to
the second quarter of 2008. As previously disclosed, on August 28,
2008, the Company's Board of Directors authorized the repurchase of
up to two million shares of the Company's common stock. During the
second quarter of 2009, the Company repurchased under this plan a
total of 236,885 shares at an aggregate cost of $8.2 million. As of
June 30, 2009, the Company had repurchased and retired
approximately 1.7 million shares under this plan. Technology and
Business Highlights Highlights for the second quarter of 2009
included: -- Over 2 million pounds of CARBOECONOPROP were pumped
for Brigham Exploration Company (Brigham) in conjunction with the
completion of the Strobeck 27-34 #1H well in North Dakota's
Williston Basin. In their announcement, Brigham stated that the
initial production rate from this Three Forks formation well was
2,021 barrels of oil equivalent per day, and further reported that
this appears to be the second highest initial rate for a Three
Forks completion. This result once again shows the validity of
Economic Conductivity(TM) and how an incremental investment in high
quality proppant can improve production and help optimize an
operator's return on investment. -- E&P operators continued to
select CARBO's proppant when stimulating their unconventional gas
reservoirs, as U.S. proppant sales volume for the quarter actually
increased sequentially versus an approximate 30 percent decrease in
the U.S. drilling rig count. In the Haynesville, CARBO provided a
variety of proppant to over a dozen different operators, with
increasing volumes, while also supplying products in the Marcellus,
Bakken, Montney, Eagleford and Woodford resource plays. -- CARBO's
geotechnical monitoring company, Applied Geomechanics, Inc., is
providing the FAA with concrete strain gauges at the National
Airport Pavement Test Facility in Atlantic City, NJ. These sensors
are used to evaluate performance of new concrete mix designs under
simulated, full-scale accelerated aircraft loading. Outlook CEO
Gary Kolstad commented on the outlook for the Company stating,
"Although the decline rate of the North American rig count has
recently slowed, it is still unclear as to when the market will
bottom. At some point, the self-correcting nature of the oil and
gas industry should react positively to the reduced natural gas
drilling activity; however it is possible that a notable recovery
is not experienced until sometime in 2010. Nevertheless, we will
continue to focus our efforts on expanding our client base in the
large resource plays where our business keeps building as a result
of the growing acceptance for our products. With respect to our
financial situation, our balance sheet and overall financial
condition remain strong. In fact, we recently announced an increase
to our quarterly dividend demonstrating continued confidence in
CARBO's outlook and financial strength." As previously announced, a
conference call to discuss the Company's second quarter results has
been scheduled for today at 10:00 a.m. central time (11:00 a.m.
eastern). To participate in the call, please dial 800-860-2442 and
refer to the "CARBO Ceramics Conference Call." International
callers should dial 412-858-4600. The call can also be accessed
live or on a delayed basis via the Company's Web site,
http://www.carboceramics.com/. CARBO Ceramics Inc., based in
Houston, Texas, is the world's largest supplier of ceramic
proppant, the provider of the world's most popular fracture
simulation software, and a leading provider of fracture design and
consulting services. The Company also provides a broad range of
technologies for geotechnical monitoring. The statements in this
news release that are not historical statements, including
statements regarding our future financial and operating
performance, are forward-looking statements within the meaning of
the federal securities laws, including the Private Securities
Litigation Reform Act of 1995. All forward-looking statements are
based on management's current expectations and estimates, which
involve risks and uncertainties that could cause actual results to
differ materially from those expressed in forward-looking
statements. Among these factors are changes in overall economic
conditions, changes in demand and prices charged for our products,
changes in the demand for, or price of, oil and natural gas, risks
of increased competition, technological, manufacturing and product
development risks, loss of key customers, changes in government
regulations, foreign and domestic political and legislative risks,
the risks of war and international and domestic terrorism, risks
associated with foreign operations and foreign currency exchange
rates and controls, weather-related risks and other risks and
uncertainties described in our publicly available filings with the
Securities and Exchange Commission. We assume no obligation to
update forward-looking statements, except as required by law. Three
Months Ended Six Months Ended June 30 June 30 ------- ------- 2009
2008 2009 2008 ------------ ------------ ------------ ------------
(In thousands except per (In thousands except per share data) share
data) Revenues $69,322 $89,285 $159,964 $179,660 Cost of sales
46,130 62,865 100,788 126,196 ------ ------ ------- ------- Gross
profit 23,192 26,420 59,176 53,464 Selling, general &
administrative expenses 8,831 8,737 20,263 17,319 Start-up costs -
- - 231 Loss on disposal or impairment of assets 24 178 91 110 --
--- -- --- Operating profit 14,337 17,505 38,822 35,804 Interest
income, net 116 22 320 56 Foreign currency exchange (loss) gain,
net (205) (66) (246) 1,427 Other income, net 3 170 178 187 --- ---
--- --- Income before income taxes 14,251 17,631 39,074 37,474
Income taxes 4,864 5,882 13,259 12,870 ------------ ----- -----
------ ------ Income from continuing operations 9,387 11,749 25,815
24,604 ----------- ----- ------ ------ ------ Discontinued
operations (1): Operating results, net of income taxes - 1,781 -
3,157 --- ----- --- ----- Net income $9,387 $13,530 $25,815 $27,761
====== ======= ======= ======= (1) Discontinued operations include
the Company's fracture mapping and reservoir monitoring assets,
which were sold on October 10, 2008. Basic earnings per share:
Continuing operations $0.41 $0.48 $1.11 $1.01 Discontinued
operations - 0.07 - 0.13 --- ---- --- ---- Basic earnings per share
$0.41 $0.55 $1.11 $1.14 ===== ===== ===== ===== Diluted earnings
per share: Continuing operations $0.41 $0.48 $1.11 $1.00
Discontinued operations - 0.07 - 0.13 --- ---- --- ---- Diluted
earnings per share $0.41 $0.55 $1.11 $1.13 ===== ===== ===== =====
Average shares outstanding: Basic 23,086 24,466 23,272 24,459
====== ====== ====== ====== Diluted 23,137 24,577 23,324 24,557
====== ====== ====== ====== Depreciation and amortization:
Continuing operations $6,133 $6,188 $12,324 $12,253 Discontinued
operations - 1,502 - 2,956 --- ------ --- ------- $6,133 $7,690
$12,324 $15,209 ====== ====== ======= ======= Selected Balance
Sheet Information June 30, 2009 Dec. 31, 2008 -------------
------------- (In thousands) Assets ------ Cash and cash
equivalents $92,475 $154,817 Other current assets 134,182 140,895
Property, plant and equipment, net 250,506 244,902 Intangible and
other assets, net 3,391 3,806 Total assets 485,413 549,279
Liabilities and Shareholders' Equity
------------------------------------ Accrued income taxes $ -
$47,929 Other current liabilities 22,804 35,919 Deferred income
taxes 24,747 22,897 Shareholders' equity 437,862 442,534 -------
------- Total liabilities and shareholders' equity $485,413
$549,279 ======== ======== DATASOURCE: CARBO Ceramics Inc. CONTACT:
Ernesto Bautista III, CFO of CARBO Ceramics Inc., +1-281-921-6400
Web Site: http://www.carboceramics.com/
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