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[July 2000]
CARBO Ceramics Inc. announces second quarter earnings
CARBO Ceramics Inc. (NYSE: CRR), a manufacturer of ceramic proppants for use in the hydraulic fracturing of natural gas and oil wells, has announced a net income of $3.8 million or $0.26 per share (on a diluted basis) on revenues of $22.0 million, for the quarter ended June 30, 2000. For the six months ended June 30, 2000, the company reported net income of $6.3 million or $0.43 per share. Net income for the quarter increased 51 percent from the second quarter of 1999 and 55 percent from this year's first quarter. Net income for the six months ended June 30, 2000 declined 5 percent from the same period a year earlier.
While sales volume and revenues declined slightly versus this year's first quarter due primarily to the anticipated seasonal slowdown in Canada, a recovering export market and improved operating margins contributed to the significant improvement In net income for the second quarter. As a result of the completion of the startup process at the company's McIntyre production facility, manufacturing costs at all three of the company's plants declined in the second quarter, and operating margins improved to their highest level since June 1999.
Selling, general and administrative expenses increased $0.5 million versus the second quarter of 1999. The increased expenditures were attributable to professional and legal fees including those associated with a secondary stock offering completed in May. Operating results also benefited from a reduction in start-up expenses related to the Company's McIntyre facility, which totaled $0.7 million in the second quarter of 1999.
Jesse P. Orsini, President and Chief Executive Officer of CARBO Ceramics stated, "The strong fundamentals in the oil and gas industry provide a very positive environment for our products, and I am pleased with the progress we have made in expanding our marketing program. We will continue to commit the resources necessary to demonstrate the economic utility of ceramic proppants to producers of oil and gas worldwide."
The company also announced that its Board of Directors declared a dividend of $.075 per share payable on August 15, 2000, to shareholders of record on July 31, 2000.
CARBO Ceramics Inc. is based in Irving, Texas.
ENDS