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




Resin-Coated Sand (RCS)



Northern White Sand






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.


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:


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.


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





(In thousands except per share data)

(In thousands except per share data)


$   176,561

$   153,744

$    325,125

$    301,402

Cost of sales





Gross profit





SG&A and other operating expenses





Start-up costs





Operating profit





Other income, net





Income before income taxes





Income taxes





Net income

$     23,017

$     16,307

$      41,444

$      33,883

Earnings per share:


$          1.00

$          0.71

$         1.79

$         1.47


$          1.00

$          0.71

$         1.79

$         1.47

Average shares outstanding:











Depreciation and amortization

$      11,903

$      11,486

$     23,706

$     23,394


Balance Sheet Information

June 30, 2014

December 31, 2013

(In thousands)


  Cash and cash equivalents

$         46,379

$         94,250

  Other current assets



  Property, plant and equipment, net






  Intangible and other assets, net



Total assets

$       905,361

$       878,951

Liabilities and Shareholders' Equity

  Current liabilities

$         57,275

$         56,688

  Deferred income taxes



  Shareholders' equity



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.

Latest Stories
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
With privacy often voiced as the primary concern when using cloud based services, SyncriBox was designed to ensure that the software remains completely under the customer's control. Having both the source and destination files remain under the user?s control, there are no privacy or security issues. Since files are synchronized using Syncrify Server, no third party ever sees these files.
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
"We are an integrator of carrier ethernet and bandwidth to get people to connect to the cloud, to the SaaS providers, and the IaaS providers all on ethernet," explained Paul Mako, CEO & CTO of Massive Networks, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I believe that this may finally be the year that the CIO role ‘crosses the Rubicon,' leaving behind its traditional, IT-focused orientation. But I don't believe that either of the previous predictions of this outcome — fading into oblivion or rising to a business executive level — is correct. Instead, I think this is the year that we will see the role of the CIO transformed into something altogether different.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical Infrastructure as a Service cloud provider but it's been designed around data privacy," explained Julian Box, CEO and co-founder of Calligo, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.