CARBO Ceramics Inc. Announces Second Quarter 2010 Earnings

CARBO Ceramics Inc. Announces Second Quarter 2010 Earnings

Conference Call Scheduled for Today, 10:00 a.m. Central Time

- Quarterly revenues of $111.5 million were up 61 percent compared to the prior year

- Quarterly global proppant sales volume of 314 million pounds up 45 percent versus the prior year

- Net income of $18.7 million, or $0.81 per diluted share, for the quarter

- Quarterly dividend was raised for the 10th consecutive year

PR Newswire -- July 29, 2010









HOUSTON, July 29 /PRNewswire-FirstCall/ -- CARBO Ceramics Inc. (NYSE: CRR) today reported net income of $18.7 million, or $0.81 per diluted share, on revenues of $111.5 million for the quarter ended June 30, 2010.



President and CEO Gary Kolstad commented, "We are pleased with the results for the second quarter. The economic success that our clients have experienced when using our highly conductive proppant in both oil and natural gas plays has helped maintain demand at a high level. Although we were able to marginally draw down from our finished goods inventory during the second quarter, we remain capacity constrained, and as mentioned on last quarter's conference call, we expect proppant sales volumes to track closely with our production capacity over the next several months. Construction is progressing well on the third 250 million pound production line at our Toomsboro, Georgia facility, and we still expect this line to commence production in November of this year. We continue to see solid revenue growth in the Falcon Technologies business, and were pleased to have announced an 11 percent increase in our quarterly dividend, illustrating the Board of Directors' confidence in the current and future financial strength of the Company."



Mr. Kolstad continued, "During the second quarter, our commitment to technology development continued as we expanded our iProp(TM) family of detectable proppants with the introduction of CARBONRT(TM), an innovative, environmentally responsible, non-radioactive traceable proppant. In addition, the production of CARBOBOND(TM) at our New Iberia resin-coating facility continued the enhancement of our highly conductive proppant suite."



Second Quarter Results



Revenues for the second quarter of 2010 increased 61 percent, or $42.2 million, when compared to the second quarter of 2009. The Company's worldwide proppant sales volume totaled 314 million pounds for the second quarter of 2010 and represents a year-over-year increase of 45 percent. North American proppant sales volume increased 42 percent year-over-year, while international proppant sales volume increased 61 percent compared to the same period last year.



Operating profit for the second quarter of 2010 increased 101 percent, or $14.5 million, compared to the second quarter of 2009. This increase is due to higher sales volume and an increase in the average proppant selling price, partially offset by an increase in freight costs. Selling, general, administrative and other operating expenses for the second quarter of 2010 increased $3.6 million on a year-over-year basis, largely due to the inclusion of the Falcon Technologies business that was acquired in October 2009 and higher research and development spending.



Net income for the second quarter of 2010 increased 100 percent, or $9.3 million, compared to the second quarter of 2009.



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