Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

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
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st 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 devic...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...