Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

News Feed Item

CARBO Announces Second Quarter 2014 Earnings

Conference Call Scheduled for Today, 10:30 a.m. Central Time

HOUSTON, July 31, 2014 /PRNewswire/ -- CARBO Ceramics Inc. (NYSE: CRR) today reported net income of $23.0 million, or $1.00 per share, on revenues of $176.6 million for the quarter ended June 30, 2014.

Logo - http://photos.prnewswire.com/prnh/20120503/MM00528LOGO

President and CEO Gary Kolstad commented, "The CARBO production enhancement business, based upon our Design, Build, and Optimize the Frac technologies, strengthened in the second quarter of 2014.  We were pleased to achieve 19 percent sequential revenue growth.

"We gained new clients in several oil and gas basins, where operators utilized the integrated technologies of the Design, Build, and Optimize the Frac platform and achieved exceptional well production results.  STRATAGEN® engineers using FRACPRO® to design and optimize fracs, coupled with our high quality, high conductivity ceramic proppant has led to higher production, EUR and ROI for the operators.

"Ceramic proppant sales volumes increased sequentially, as fracturing activity rebounded from first quarter's harsh weather conditions and rail-related logistical challenges.  Ceramic proppant demand exceeded our second quarter capacity which necessitated our dipping into finished goods inventory.  We have also continued to see growth from clients that have become more aware of the negative impact that low quality, Chinese ceramic proppant can have on their well production.  Pricing for CARBO ceramic proppant was relatively stable during the quarter.

"We are excited to announce that Millen Line 1 is now operational.  Once it reaches its stated capacity, our total annual ceramic capacity will be two billion pounds.  Construction also continues on Millen Line 2 and the retrofit of an existing plant to our new proppant technology, KRYPTOSPHERE.   

"We are continuing to build out our distribution network as we grow and should start seeing benefits in the second half of the year.  We believe these investments should help address the distribution challenges resulting from quarterly fluctuations in industry activity, and the increased amount of proppant being used per well. 

"Developing production enhancement technologies that improve well production and EUR remains the core element of our strategy. The latest CARBO production assurance technology, SCALEGUARD®, was pumped during the quarter in a number of wells, with very positive initial results.  SCALEGUARD is a ceramic proppant, infused with scale-inhibiting chemical that is placed throughout the fracture as part of the standard fracturing process.  This proppant-delivered technology affords our clients long-term protection against scaling, compared to alternative products available today which provide a much shorter-term benefit.

"The Board of Directors recently approved a 10 percent increase in our quarterly dividend.  This marks the fourteenth consecutive year of increases and reflects the Board's continued confidence in the long-term prospects for CARBO, and a commitment to increase value for our shareholders as we execute on our long-term growth strategies," Mr. Kolstad said.

Second Quarter Results

Revenues for the second quarter of 2014 increased 15 percent, or $22.8 million, compared to the second quarter of 2013. The increase is mainly attributable to an increase in proppant sales volumes, as specified in the table below.

Operating profit for the second quarter of 2014 increased 43 percent, or $10.2 million, compared to the second quarter of 2013. The increase is primarily the result of higher ceramic sales volumes and a favorable ceramic product mix, net of higher SG&A expenses.

Net income for the second quarter of 2014 increased 41 percent, or $6.7 million, compared to the second quarter of 2013.

Proppant Sales Volumes

(in million lbs)

Three Months Ended

June 30, 2014

Three Months Ended

June 30, 2013




Ceramic

454

378

Resin-Coated Sand (RCS)

43

68

Northern White Sand

271

11

Total

768

457




Technology and Business Highlights

  • A Permian Basin operator has significantly enhanced well production by utilizing the integrated technologies of the Design, Build, and Optimize the Frac platform to maximize production.  When the operator began working with CARBO, the focus was on improving ultimate recovery by optimizing the fracture design.  Today, the company is also utilizing STRATAGEN consulting services and CARBOLITE®, a high-performance, low-density ceramic proppant, to increase their ROI.
  • In the Bone Springs play of the Permian basin, an independent operator was using resin-coated sand in their well stimulation program.  Recently, the operator replaced the resin-coated sand with CARBOECONOPROP®, a low-density ceramic proppant, and significantly enhanced production due to improved conductivity.
  • CARBONRT® momentum continues with its use in unique applications and expansion into new markets.  This non-radioactive detectable technology was employed in a North American well to verify that the well casing remained isolated from a nearby water treatment facility, ensuring regulatory compliance.  Also, CARBONRT was used in Argentina to measure the propped fracture height and confirm confinement of the hydraulic fracturing treatments within target boundaries. CARBONRT has now been employed for fracture diagnostics in 16 countries.
  • In the Rockies, SCALEGUARD was successfully pumped as part of the standard fracturing process in several wells during the quarter. SCALEGUARD provides long-term protection against scale formation while maintaining maximum fracture conductivity.  The operator was pleased with the very positive initial results and is planning additional wells utilizing SCALEGUARD services.
  • FRACPRO released the iPhone version of their FRACPRO REMOTE app.  This application, now for all iOS devices, allows users to connect remotely to a frac job and receive data in real time.

Outlook

CEO Gary Kolstad commented on the outlook for CARBO stating, "The third quarter has recently been the most active quarter in the year for the industry in North America.  We believe our ceramic proppant sales volumes will approximate our quarterly productive capacity with the possibility of drawing down some finished goods inventories, which are at a lower level than last year.  We anticipate pricing for ceramic proppant to remain relatively stable during the third quarter of 2014.

"Millen Line 1 production is ramping up, and we expect to be at full rate by the end of the third quarter of 2014.  Construction on Millen Line 2 and the retrofit of an existing plant to produce KRYPTOSPHERE LD are proceeding well, and both are expected to be completed by the end of the second quarter of 2015.  The completion of Millen Line 2 will take our total annual ceramic proppant capacity to 2.25 billion pounds and, in combination with Millen Line 1, will result in an increase to our ceramic proppant capacity of 29 percent in approximately one year.  We continue to believe there is increasing demand for high quality, high conductivity ceramic proppant, which provides us with confidence in bringing on additional ceramic proppant capacity. 

"Distribution of proppant to the well site remains an important part of the CARBO service offering to our clients. A recent challenge the industry is facing is a tight supply of trucking services in certain areas to transport proppant to the well site.  Given this industry issue, we may likely face increased transportation costs and delivery issues. 

"We continue to build inventories of KRYPTOSPHERE HD, our new ultra-conductive, high density ceramic proppant for deep well applications.  Completion activity in our target market for KRYPTOSPHERE HD, the Gulf of Mexico, continues to be delayed.  While ultimately this timing is out of our control, we are optimistic that opportunities for lower tertiary completions will increase in 2015.

"Going forward, we remain excited not only about the advancements we are making in proppant technology with KRYPTOSPHERE but also in the production enhancement technologies we are developing in our three platforms: Production Assurance, Flow Enhancement and Fracture Evaluation.  Using proppant as the delivery mechanism for these technologies is unique, as it is the one thing that stays in the reservoir for the life of the well.  We see significant opportunities to leverage our proppant-delivered technologies to solve production-related problems, maximize production, increase EUR, and provide valuable information about the reservoir," Mr. Kolstad concluded.

Conference Call

As previously announced, a conference call to discuss the CARBO second quarter results is scheduled for today at 10:30 a.m. Central Time (11:30 a.m. Eastern).  Due to historical high call volume, CARBO is offering participants the opportunity to register in advance for the conference through the following link:

http://dpregister.com/10047976

Registered participants will immediately receive an email with a calendar reminder and a dial-in number and PIN that will allow them immediate access to the call.

Participants who do not wish to pre-register for the call may dial in using (866) 652-5200 (for U.S. and Canadian callers) or (412) 317-6060 (for locations outside North America) and ask for the "CARBO Ceramics" call. The conference call also can be accessed through CARBO's website, www.carboceramics.com.

A telephonic replay of the earnings conference call will be available through August 4, 2014, at 9:00 a.m. Eastern Time. To access the replay from the U.S. and Canada, please dial 1-877-344-7529; international callers outside North America should dial 1-412-317-0088. Please reference conference number 10047976. Interested parties may also access the archived webcast of the earnings teleconference through CARBO's website approximately two hours after the end of the call.

About CARBO

CARBO is an oilfield services technology company providing industry-leading products and services for:

Production Enhancement

Our Production Enhancement businesses increase E&P Operators' Production and EUR…by providing industry leading technology to Design, Build, and Optimize the Frac.

Environmental Services

Our Environmental Services business protects E&P Operators' assets, minimizes environmental risk, and lowers operating costs (LOE).

Forward-Looking Statements

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 the cost of raw materials and natural gas used in manufacturing our products, our ability to manage distribution costs effectively, 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, distribution 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.

- tables follow -


Three Months Ended

June 30


Six Months Ended

June 30


2014


2013


2014


2013


(In thousands except per share data)


(In thousands except per share data)

Revenues

$   176,561


$   153,744


$    325,125


$    301,402

Cost of sales

122,913


114,411


227,113


219,684

Gross profit

53,648


39,333


98,012


81,718

SG&A and other operating expenses

18,728


15,457


35,681


32,451

Start-up costs

811


-


811


-

Operating profit

34,109


23,876


61,520


49,267

Other income, net

200


212


292


325

Income before income taxes

34,309


24,088


61,812


49,592

Income taxes

11,292


7,781


20,368


15,709

Net income

$     23,017


$     16,307


$      41,444


$      33,883

Earnings per share:








  Basic

$          1.00


$          0.71


$         1.79


$         1.47

  Diluted

$          1.00


$          0.71


$         1.79


$         1.47









Average shares outstanding:








  Basic

22,948


22,953


22,948


22,972

  Diluted

22,948


22,953


22,948


22,972









Depreciation and amortization

$      11,903


$      11,486


$     23,706


$     23,394

                               

Balance Sheet Information


June 30, 2014


December 31, 2013


(In thousands)

Assets




  Cash and cash equivalents

$         46,379


$         94,250

  Other current assets

284,972


277,132

  Property, plant and equipment, net

544,743


478,535

  Goodwill

12,164


12,164

  Intangible and other assets, net

17,103


16,870

Total assets

$       905,361


$       878,951





Liabilities and Shareholders' Equity




  Current liabilities

$         57,275


$         56,688

  Deferred income taxes

54,473


53,676

  Shareholders' equity

793,613


768,587

Total liabilities and shareholders' equity

$       905,361


$       878,951





 

SOURCE CARBO Ceramics Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.