Calgon Carbon Corp. (CCC) filed Quarterly Report for the period ended 2010-03-31.
Calgon Carbon Corp. has a market cap of $865.4 million; its shares were traded at around $15.41 with a P/E ratio of 20.5 and P/S ratio of 2.1. Calgon Carbon Corp. had an annual average earning growth of 2.3% over the past 10 years.
This is the annual revenues and earnings per share of CCC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CCC.
Highlight of Business Operations:
Consolidated net sales increased by $12.3 million or 13.6% for the quarter ended March 31, 2010 versus the quarter ended March 31, 2009. The total positive impact of foreign currency translation on consolidated net sales for the quarter ended March 31, 2010 was $2.2 million. Net sales for the quarter ended March 31, 2010 for the Activated Carbon and Service segment increased $12.7 million or 16.3% versus the similar 2009 period. The increase was primarily due to higher demand in the environmental air treatment market for products related to mercury removal of approximately $8.9 million. Also contributing to the increase was higher demand in the municipal and respirator markets of $1.6 million and $1.6 million, respectively. Foreign currency translation had a positive impact of $2.0 million. Net sales for the Equipment segment decreased $0.7 million or 6.8% in the first quarter 2010 versus the comparable 2009 period. The decrease was primarily due to lower revenue for ion exchange systems. Foreign currency translation had a positive impact of $0.1 million. Net sales for the quarter ended March 31, 2010 for the Consumer segment increased by $0.3 million or 17.5% versus the quarter ended March 31, 2009. The increase was primarily attributable to higher demand for activated carbon cloth. Foreign currency translation had a positive impact of $0.1 million.
Net sales less cost of products sold, as a percentage of net sales, was 36.1% for the quarter ended March 31, 2010 compared to 32.5% for the similar 2009 period, a 3.6 percentage point increase or $7.7 million. The Activated Carbon and Service segment increased by $7.9 million which was primarily related to the aforementioned increase in demand in the environmental air treatment, municipal, and respirator markets. The Equipment segment decreased $0.4 million principally related to volume shortfalls for ion exchange systems. The Consumer segment decreased $0.2 million which was related to product mix of $0.1 million and volume of $0.1 million. The Companys cost of products sold excludes depreciation; therefore it may not be comparable to that of other companies.
Cash flows provided by operating activities were $17.1 million for the period ended March 31, 2010 compared to $8.7 million for the comparable 2009 period. The $8.4 million increase is primarily due to favorable working capital changes of $5.0 million principally related to inventory of $3.5 million, as a result of inventory control measures in Europe and the U.S. including the reduction of purchases of outsourced carbon related products. Also contributing to the increase was improved earnings of $3.0 million.
In accordance with guidance within ASC 470-20, the debt discount of $21.9 million was being amortized over the period from August 18, 2006 (the issuance date) to June 15, 2011 (the first put date on the Notes). The effective interest rate for all periods on the liability component was approximately 13.8%. The Company also incurred original issuance costs of $0.4 million which had been deferred and were being amortized over the same period as the discount. For the three months ended March 31, 2009, the Company recorded interest expense of $0.2 million related to the Notes, of which $0.1 million related to the amortization of the discount and $0.1 million related to contractual coupon interest.
The Company is obligated to make future payments under various contracts such as debt agreements, lease agreements, and unconditional purchase obligations. As of March 31, 2010, there have been no material changes in the payment terms of lease agreements and unconditional purchase obligations since December 31, 2009, except for the addition of debt totaling $22.5 million and the redeemable non-controlling interest of $1.6 million, related to the Companys increase in ownership of its joint venture CCJ (Refer to Notes 1 and 10 to the Condensed Consolidated Financial Statements included in Item 1). The Company is obligated to make principal payments on debt outstanding at March 31, 2010 of $1.9 million in 2010, $17.3 million in 2011, $2.6 million in 2012, and $0.7 million in 2013.
Capital expenditures for property, plant and equipment totaled $8.9 million for the three months ended March 31, 2010 compared to expenditures of $12.9 million for the same period in 2009. The expenditures for the period ended March 31, 2010 consisted primarily of improvements to the Companys manufacturing facilities of $5.1 million and $1.1 million for customer capital. The comparable 2009 period consisted primarily of improvements to the Companys manufacturing facilities of $10.4 million, of which $5.4 million was directly related to the April 2009 re-start of a previously idled production line at the Companys Catlettsburg, Kentucky facility, and $1.3 million for customer capital. Capital expenditures for 2010 are projected to be approximately $65.0 million to $75.0 million. The aforementioned expenditures are expected to be funded by operating cash flows, cash on hand, and borrowings.