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[October 2000]
Carbo Ceramics Inc. Announces Third Quarter Earnings; Declares Quarterly Dividend
Irving, Texas -- CARBO Ceramics Inc. (NYSE: CRR), a manufacturer of ceramic proppants for use in the hydraulic fracturing of natural gas and oil wells, today announced net income of $4.4 million or $0.29 per share (on a diluted basis) on revenues of $25,3 million, for the quarter ended September 30, 2000. For the nine months ended September 30, 2000, the company reported net income of $10.6 million or $0.72 per share (on a diluted basis) on revenues of $69.4 million. Net income for the quarter increased 76 percent from the third quarter of 1999 and 14 percent from this year's second quarter. Net income for the nine months ended September 30, 2000, increased 17 percent from the same period a year earlier.
Total sales volume and revenue for the third quarter each represent new quarterly records for the company. The record sales volume of 103.7 million pounds was the result of an increase in international shipments for both oil and gas based activity and continued strong North American shipments driven by drilling activity in the natural gas market. International shipments increased 87 percent versus last year's third quarter and 41 percent versus this year's second quarter. These shipments were broadly distributed to Eastern and Western Europe, South America, the Middle East and the Asia/Pacific region.
The average selling price for the third quarter was $.244 per pound, an increase of nearly 4 percent versus the second quarter due to an increase in the sale of higher-priced products and the full benefit of a June price increase on one of the company's products. Despite this increase, gross profit margins were unchanged as compared to the second quarter due to increased manufacturing costs brought on by higher natural gas prices.
Selling, general and administrative expenses for the third quarter increased $1.4 million compared to the same period a year earlier. While much of the increase was due to an increase in variable expenses related to higher sales volume, the company also increased sales and marketing activities and incurred development expenses in connection with its investigation of manufacturing opportunities in the expanding market in China.
The company also announced that its Board of Directors declared a dividend of $.075 per share payable on November 15, 2000, to shareholders of record on October 31, 2000.
A conference call to discuss the company's third quarter and nine month results has been scheduled for Wednesday, October 11, at 10:00 a.m. central time. To participate in the call, dial (913) 981-4912 and refer to confirmation code 846899. The call can also be accessed live or on a delayed basis via the company's Web site, www.carboceramics.com,
ENDS