Click here to close now.


News Feed Item

CARBO Announces Fourth Quarter And Fiscal Year 2013 Earnings

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

HOUSTON, Jan. 30, 2014 /PRNewswire/ -- CARBO Ceramics Inc. (NYSE: CRR) today reported net income of $20.9 million, or $0.90 per share, on revenues of $164.5 million for the quarter ended December 31, 2013.


CEO Gary Kolstad commented, "Our Production Enhancement businesses had a good year with several company records set.  Ceramic proppant volumes in 2013 set a record, topping 1.7 billion pounds, despite a market that was over-supplied with low-quality Chinese ceramic proppants.  We grew our presence in the Resin-Coated Sand (RCS) market, with RCS sales volumes growing over four-fold to 241 million pounds.  Clients continue to trust CARBO to deliver the highest quality, highest conductivity proppants to increase production and ultimate recovery in their wells.  We also had record business results and expanding client bases in both Fracpro® and StrataGen®.

"We are committed to leadership in Production Enhancement technology.  Our Design, Build, and Optimize the Frac platform provides a complete solution to maximize our clients' well production and increase estimated ultimate recovery (EUR).  Using this approach, we are able to address each client's specific needs, whether that be creating a comprehensive fracture solution or simply providing a single component of our Design, Build, and Optimize the Frac platform.

"We finished the year on a strong note. Activity rebounded in December after heavy rains and icy weather hampered sales volumes in both the Eagle Ford and the Permian during the early part of the fourth quarter.  Although the marketplace remains competitive, our proppant pricing was stable when compared to the third quarter of 2013. 

"We continue our technical marketing campaign, which highlights the damaging effects low-quality Chinese ceramic proppants have on well production and EUR.  The success of this campaign supports our increasing investments in manufacturing capacity.  Construction on Millen Line 1 continued at our new ceramic facility.  In addition, construction on Millen Line 2 will commence in the first half of 2014.  When both lines are completed, they will add 500 million pounds of annual ceramic proppant capacity.  On the technology front, completion of formal qualifications with our clients for KRYPTOSPHERE, an ultra-high conductivity, ultra-high strength proppant, continued during the quarter.

"Falcon Technologies®, our Environmental Services business, saw its fourth quarter 2013 results negatively impacted, largely due to seasonality as well as the idling of its tank-lining services during the third quarter of 2013," Mr. Kolstad said.

Fourth Quarter Results

Revenues for the fourth quarter of 2013 increased 7 percent, or $10.9 million, compared to the fourth quarter of 2012. The increase is mainly attributable to an increase in proppant sales volumes. North American (defined as Canada and the U.S.) proppant sales volumes increased 38 percent, while international proppant sales volumes decreased 33 percent, compared to the same period last year, primarily due to decreases in China and Mexico.

Operating profit for the fourth quarter of 2013 increased 4 percent, or $1.3 million, compared to the fourth quarter of 2012. The increase is mainly attributable to an increase in proppant sales volumes, partially offset by a change in product mix (as shown in the table below) and an increase in SG&A expense.

Net income for the fourth quarter of 2013 increased 5 percent, or $1.0 million, compared to the fourth quarter of 2012.

Proppant Sales Volumes

(in million lbs)

Three Months Ended

December 31, 2013

Three Months Ended

December 31, 2012













* Includes raw sand sold in the course of producing substrate for resin-coating.

Full Year Results

For the year ended December 31, 2013, revenues increased 3 percent, or $21.9 million, compared to 2012. The increase is mainly attributable to an increase in proppant sales volumes.

CARBO's worldwide proppant sales volume totaled 2.06 billion pounds for the full year 2013, an increase of 20 percent compared to 2012.  Sales volume in North America increased 29 percent. International sales volume decreased 17 percent primarily due to decreases in China, Mexico, and Africa.

Full year net income for 2013 decreased 20 percent, or $21.0 million, compared to 2012.

Proppant Sales Volumes

(in million lbs)

Twelve Months Ended

December 31, 2013

Twelve Months Ended

December 31, 2012













* Includes raw sand sold in the course of producing substrate for resin-coating.

Technology and Business Highlights

  • In the Permian Basin, CARBO's lightweight ceramic proppants, CARBOLITE® and CARBOECONOPROP®, continue to gain momentum with several operators.  These operators are pleased with the resulting well production increases in their horizontal completions. 
  • In the Tarim Basin in China, PetroChina is using CARBOHSP®, a high strength premium proppant, in its deep (>6,000 meters) tight gas wells. The company has stated that the product's performance and production results have been exceptional.
  • In the Delaware Basin of West Texas, an operator is using CARBOBOND® RCS, a premium, curable, resin-coated sand proppant, in its Upper Wolfcamp horizontal completions. The operator has observed that production from its first horizontal well using CARBOBOND RCS is significantly outperforming the previous five horizontal offset wells that employed non-CARBO proppant technology. As a result of the well's success, the operator plans to utilize CARBOBOND RCS in additional wells.
  • In the Eagle Ford, an active operator utilized StrataGen for 2013 stimulation consulting services that resulted in significant improvement in operational efficiencies, reduced non-productive time and accelerated production revenue, compared to 2012 results. The operator drilled over 50 wells, completed over 1,200 stages and pumped approximately 180 million pounds of proppant. Fracpro fracture design software was critical in wellbore and fracture modelling to enable the design and efficiency improvements.
  • In the Marcellus and Niobrara, StrataGen was awarded Data and Neural Analysis® (DANA) projects with two new clients to evaluate completion efficiency and frac effectiveness.
  • In the Bakken, a major operator enlisted Falcon to install Secondary Containments systems. The largest unit was over 10,000 sq. ft. and employed Falcon Liner® Tank Base products. Another large Bakken operator has implemented Falcon Liner Tank Base units in its containment operations.


CEO Gary Kolstad commented on the longer-term outlook for CARBO stating, "An increase in capital spend on the part of E&Ps in 2014 should result in solid industry activity.  Consequently, we anticipate demand for our industry-leading production enhancement services and products to remain intact.  Specifically regarding proppant sales, we believe 2014 will be another good year for volumes, aided by our technical marketing campaign that continues to highlight the superior conductivity of CARBO's ceramic proppant compared to low-quality Chinese ceramic proppant.  In the near term, we expect ceramic proppant volumes for the first quarter of 2014 to increase when compared with the fourth quarter of 2013.  Current market conditions remain competitive, which leads us to believe that pricing may remain at current levels.     

"Based on the solid demand we witnessed in the second half of 2013, we are pleased that Millen Line 1 remains on schedule with completion expected by the end of the second quarter of 2014.  This addition could prove timely as the third quarter is typically an active quarter.  With construction commencing soon on Millen Line 2, we anticipate startup could occur before the end of the second quarter of 2015.  Once both lines are completed, our ceramic manufacturing capacity will increase by 500 million pounds to a total of 2.25 billion pounds per year, resulting in an approximate 29 percent increase in CARBO's ceramic production capacity over the next 18 months.

"We are starting to build inventory of KRYPTOSPHERE-H, CARBO's new ultra-high conductivity, ultra-high strength proppant technology.  Product testing and qualification with clients are continuing and all results to date have been positive.  While many deep well completions in the Gulf of Mexico have been delayed in 2014, it is anticipated that initial sales of KRYPTOSPHERE-H could begin as early as the third quarter of 2014.  As we have mentioned before, the next phase of our KRYPTOSPHERE product development will be to apply this technology to our existing manufacturing footprint.  Engineering of a retrofit of an existing plant is underway.  Once the retrofit is complete, applying KRYPTOSPHERE technology to our production platform will expand our technology lead in the industry and, most importantly, further assist in increasing the production and EUR of our clients' oil and gas wells.

"Our RCS product line continued to see further market expansion during the fourth quarter of 2013, with sales volumes near quarterly capacity levels.  We anticipate continued demand for our high quality, high conductivity resin-coated sand during 2014.  

"New product development continued across our proppant-delivered technology platforms: Production Assurance, Production Intelligence and Production Flow Enhancement.  During 2014, we expect to use field trials to test new products across these proppant-delivered technology platforms. 

"Falcon Technologies' growth during 2013 was negatively impacted by lower demand for tank lining services.  As a result, near-term growth lagged internal projections.  However, long-term growth projections remain intact with a renewed focus on new and existing product lines aimed at protecting the environment and our clients' assets and reputations.   

"CARBO's Design, Build, and Optimize the Frac platform describes more than our production enhancement businesses. It symbolizes a culture within CARBO committed to the long term profitable growth of the company, supported by continuous efforts to develop new technologies, while creating value for our clients.  We believe this culture enables us to build an enduring company.  We have many opportunities ahead of us, and our strong balance sheet positions us well to capitalize on these opportunities in 2014 and beyond," Mr. Kolstad concluded.

Conference Call

As previously announced, a conference call to discuss the CARBO's fourth 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:

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,

A telephonic replay of the earnings conference call will be available through February 10, 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 10038995. 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.


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 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, 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

December 31

Twelve Months Ended

December 31





(In thousands except per share data)

(In thousands except per share data)


$   164,520

$   153,622

$    667,398

$    645,536

Cost of sales





Gross profit





  SG&A and other operating expenses





Operating profit





Interest income, net





Foreign currency exchange loss, net





Other expense, net





Income before income taxes





Income taxes





Net income

$     20,854

$      19,827

$      84,886

$      105,933

Earnings per share:


$          0.90

$          0.86

$         3.67

$         4.59


$          0.90

$          0.86

$         3.67

$         4.59

Average shares outstanding:











Depreciation and amortization

$      12,326

$      11,560

$     47,472

$     44,893


Selected Balance Sheet Information

December 31, 2013

December 31, 2012

(In thousands)


  Cash and cash equivalents

$         94,250

$         90,635

  Other current assets



  Property, plant and equipment, net



  Intangible and other assets, net



Total assets



Liabilities and Shareholders' Equity

  Accrued income taxes

$                   -

$              727

  Other current liabilities



  Deferred income taxes



  Shareholders' equity



Total liabilities and shareholders' equity

$       878,951

$       808,878


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.

Latest Stories
As operational failure becomes more acceptable to discuss within the software industry, the necessity for holding constructive, actionable postmortems increases. But most of what we know about postmortems from "pop culture" isn't actually relevant for the software systems we work on and within. In his session at DevOps Summit, J. Paul Reed will look at postmortem pitfalls, techniques, and tools you'll be able to take back to your own environment so they will be able to lay the foundations for h...
Containers are all the rage among developers and web companies, but they also represent two very substantial benefits to larger organizations. First, they have the potential to dramatically accelerate the application lifecycle from software builds and testing to deployment and upgrades. Second they represent the first truly hybrid-approach to consuming infrastructure, allowing organizations to run the same workloads on any cloud, virtual machine or physical server. Together, they represent a ver...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in high-performance, high-efficiency server, storage technology and green computing, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology is a premier provider of advanced server Building Block Solutions® for Data ...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at @DevOpsSummit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete en...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes.
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Between the compelling mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how busine...
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.