Carbo Ceramics Inc. (CRR) filed Quarterly Report for the period ended 2009-09-30.
CARBO Ceramics Inc. is the world's largest producer and supplier of ceramicproppants for use in the hydraulic fracturing of natural gas and oil wells.Demand for ceramic proppants depends primarily upon the demand for natural gas and oil and on the number of natural gas and oil wells drilled completed or recompleted worldwide. More specifically the demand for ceramic proppants is dependent on the number of oil and gas wells that are hydraulically fractured to stimulate production. Carbo Ceramics Inc. has a market cap of $1.35 billion; its shares were traded at around $58.39 with a P/E ratio of 22.63 and P/S ratio of 3.47. The dividend yield of Carbo Ceramics Inc. stocks is 1.23%. Carbo Ceramics Inc. had an annual average earning growth of 12.5% over the past 10 years.
Highlight of Business Operations:
Selling, General and Administrative (SG&A) and Other Operating Expenses. SG&A expenses totaled $10.8 million for the third quarter of 2009 compared to $10.2 million for the same period in 2008. As a percentage of revenues, SG&A expenses increased to 11.8% compared to 9.9% for third quarter of 2008. SG&A expenses in the third quarter of 2009 included $1.2 million related to the relocation of certain Company offices and costs associated with the acquisition of the Falcon assets, which more than offset benefits realized from cost reduction initiatives. Other operating expenses of $1.4 million in the third quarter of 2008 mainly resulted from write-off of a prepayment for the purchase of ceramic proppant from a third party proppant manufacturer.
Income from Discontinued Operations, Net of Income Taxes. Income from discontinued operations for the third quarter of 2008 was $3.1 million and includes gross profit of $8.6 million offset by selling, general, and administrative expenses of $3.6 million. Income taxes related to discontinued operations for the third quarter of 2008 was $1.9 million. The sale of the discontinued operations was completed on October 10, 2008.
Selling, General and Administrative (SG&A) and Other Operating Expenses. SG&A expenses totaled $31.1 million for the nine months ended September 30, 2009 compared to $27.5 million for the same period in 2008. As a percentage of revenues, SG&A expenses increased to 12.3% compared to 9.7% for the same nine month period in 2008. The increases primarily resulted from higher administrative expenses necessary to support the infrastructure for an enterprise information system implemented during the second quarter of 2008, additional allowances for the collection of doubtful accounts, costs associated with the relocation of certain Company offices and Falcon acquisition costs. Other operating expenses decreased $1.7 million primarily resulting from costs of $0.2 million incurred in early 2008 associated with the start-up of the second production line at the Company’s Toomsboro facility and $1.4 million from write-off of a prepayment for the purchase of ceramic proppant from a China proppant manufacturer in the third quarter of 2008.
Income Tax Expense. Income tax expense was $20.3 million, or 33.6% of pretax income, for the nine months ended September 30, 2009 compared to $17.6 million, or 30.7% of pretax income for the same period last year. The $2.7 million increase is due to higher pre-tax income combined with a higher effective tax rate primarily associated with a benefit relating to a mining depletion adjustment that the Company recorded during the third quarter of 2008 relating to amounts claimed on the 2007 tax return filed, an amended 2006 return as well as deductions available for mining activities during the first and second quarters of 2008.
Income from Discontinued Operations, Net of Income Taxes. Income from discontinued operations for the nine months ended September 30, 2008 was $6.2 million and includes gross profit of $19.5 million offset by selling, general, and administrative expenses of $9.5 million. Income taxes related to discontinued operations for the nine months ended September 30, 2008 was $3.8 million. The sale of the discontinued operations was completed on October 10, 2008.
At September 30, 2009, the Company had cash and cash equivalents of $90.9 million compared to cash and cash equivalents of $154.8 million at December 31, 2008. For the nine months ended September 30, 2009, the Company generated $5.9 million of cash from operating activities of continuing operations, which included using $64.2 million for income tax payments associated with the sale of discontinued operations on October 10, 2008, third and fourth quarter 2008 estimated tax payments that were deferred to 2009 as a result of hurricane Gustav tax relief, and 2009 taxable income. The Company also generated $0.6 million from employee exercises of stock options. Uses of cash included $35.4 million for capital expenditures, $12.1 million for the payment of cash dividends, $22.7 million for repurchases of the Company’s Common Stock, and $0.2 million from the effect of exchange rate changes on cash.
Rate This Article: |
  |