CARBO Revenue Increases 33% in 2018 Second Quarter
CARBO Ceramics’ revenues for the second quarter reached $58 million, an increase of 33% compared to revenue of $43.6 million in the same period of 2017.
CARBO Ceramics Inc. recently reported its financial results for the second quarter of 2018. Revenues for the second quarter reached $58 million, an increase of 33% compared to revenue of $43.6 million in the same period of 2017. The largest contributors to this increase were reportedly oilfield technology products, frac sand, environmental products and industrial products.
The operating loss for the second quarter of 2018 improved to $12.8 million, compared to $23.7 million in the same period of 2017, primarily due to increased sales combined with a reduction in certain fixed structural costs. Approximately 75% of the operating loss for the second quarter of 2018 consisted of non-cash expenses, according to the company.
“Our results continue to improve as we execute on our transformation strategy to diversify our revenue streams and return the company to profitability,” said Gary Kolstad, CEO. “Revenue for the second quarter of 2018 increased 33% year-on-year, driven by solid performance in all three business sectors.
“Oilfield technology ceramic revenue grew 61% year-on-year. As previously noted, we expected to see healthy ceramic technology product sales during the second and third quarters of 2018, driven in part by KRYPTOSPHERE® sales.
“STRATAGEN®, our fracture consulting group, is seeing strong revenue growth as revenue increased 59% year-on-year. Our client list is expanding in North America as well as internationally.
“Overall, we expect modest improvement in base ceramic revenue for the year compared to 2017. Second quarter base ceramic revenue was down 17% year-on-year (adjusted for the sale of our Russian ceramic business), with the decline primarily due to work shifting to the second half of 2018. We continue to be successful in reducing our reliance on base ceramic. Base ceramic sales made up approximately 80% of our revenue in 2014 compared to approximately 20% year-to-date.
“Frac sand revenue increased 126% year-on-year. Frac sand provides cash flow generation and the opportunity to stay in front of our clients to promote our technology products.
“Industrial ceramic revenue grew 37% year-on-year. Recently introduced industrial ceramic technology products are having a positive impact on our revenue growth. In addition, our idled plant assets are being evaluated for many different contract manufacturing opportunities. Discussions continue with a number of industrial companies interested in contract manufacturing of products, and we are assisting clients with product development utilizing our unique processing systems such as pelletizing, resin coating, chemical infusion, heat treatment and particle size manipulation. Third-quarter contract manufacturing projects have already begun, and we are excited about the financial benefit that contract manufacturing will bring the company as these idle plant assets are put to work producing cash.
“ASSETGUARD™ revenues for the second quarter of 2018 increased 29% year-on-year driven by increased GROUNDGUARD® sales and other manufactured products. We continue to invest in this business to grow our suite of high value, technology products. During the quarter, we completed an enhancement to our manufacturing facility to create a new slip-resistant GROUNDGUARD.
“Based on our client discussions and current industry activity, we continue to estimate our full year 2018 revenue to approximate $250 million,” said Kolstad. “As a result, we expect continued improvement in revenue and positive EBITDA with strong incremental margins year-on-year in the second half of 2018.”
For more information, visit www.carboceramics.com.