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Actionable news in CRR: CARBO CERAMICS Inc,

Carbo Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Quarterly revenues of $75.8 million increased 3% sequentially.

Quarterly ceramic proppant sales volumes increased 24% sequentially.

Quarterly GAAP net loss of $13.9 million, or a loss of $0.60 per share.

This net loss includes $3.6 million, or $0.15 per share, of after-tax costs associated with slowing and idling production and $2.3 million, or $0.10 per share in miscellaneous after-tax charges.

HOUSTON, TX (October 29, 2015) CARBO Ceramics Inc. (NYSE:

) today reported a GAAP net loss of $13.9 million, or a loss of $0.60 per share, on revenues of $75.8 million for the quarter ended September 30, 2015. This net loss includes $3.6 million, or $0.15 per share, of after-tax costs associated with slowing and idling production and $2.3 million, or $0.10 per share in miscellaneous after-tax charges.

CEO Gary Kolstad commented, The industry environment remains extremely challenging, but we continued to grow the number of clients using our production enhancement technologies, despite being in an environment where E&P operators are focused on a reduction of cash spend. KRYPTOSPHERE

HD and SCALEGUARD

technologies were again successfully employed in the ultra-deep Lower Tertiary formation in the Gulf of Mexico during the quarter. In addition, our total ceramic proppant sales volumes increased 24% sequentially, while imports of low quality Chinese ceramic proppant remained very low. Clients using our

Design, Build, and Optimize the Frac

platform continue to experience success in their production results. This platform allows our clients to configure a customized solution for their reservoir, increase well production and estimated ultimate recovery (EUR), and lower finding and development costs.

In addition to increased production, E&P operators are benefiting from significant cost reductions in lease operating expense (LOE) when they use SCALEGUARD. This technology is designed to eliminate costly workovers that are normally needed to remove production damage caused by scale and avoid costly remedial chemical injections. We are not aware of any workovers on wells that have used SCALEGUARD, and some of them have been on production for over 500 days.

We continued to navigate through a challenging operating environment marked by depressed industry activity. Our cash preservation and cost reduction efforts remain a top priority in managing through this downturn. Measures taken during the quarter to better match the organizational structure to expected activity levels included the idling of additional ceramic proppant production capacity, delaying future capital expenditures and reducing operational and overhead costs across the company, Mr. Kolstad said.

CARBO Ceramics Third Quarter 2015 Earnings Release

Page 2

Third Quarter Results

Revenues for the third quarter of 2015 decreased 51%, or $79.6 million, compared to the third quarter of 2014. The decrease was mainly attributable to a decrease in proppant sales volumes (as specified in the Proppant Sales Volumes table below) and market-driven reductions in the average selling prices.

Operating loss for the third quarter of 2015 was $19.2 million compared to an operating profit of $19.0 million in the third quarter of 2014. The decrease was mainly attributable to the decrease in ceramic proppant sales volumes and a decrease in average ceramic proppant selling price. In addition, the Company expensed $5.5 million in unabsorbed production costs as a result of low production levels and idled facilities. Operating loss was further impacted by $1.7 million in severance costs and a $1.7 million loss on derivative instruments. These other production costs and miscellaneous charges are presented in the tables below. The impact of these items was partially offset by SG&A cost cutting measures implemented in early 2015 and throughout the year. In addition, the Company recorded a $5.0 million impairment of long-lived assets and a $2.8 million inventory adjustment during the third quarter of 2014, which did not reoccur during the third quarter of 2015.

Net loss for the third quarter of 2015 was $13.9 million, compared to net income of $13.7 million in the third quarter of 2014.

(in million lbs)

Three Months Ended

September 30, 2014

Resin Coated Sand

Northern White Sand

Summary of Other Production Costs and Miscellaneous Charges

(In thousands)

Slowing and idling...


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