Carbo Ceramics Inc. reported financial results for the first quarter of 2018, including:
• Revenue for the first quarter of 2018 of $49.4 million, an increase of 42 percent year-on-year, resulting from strong revenue growth in its three business sectors: oilfield, industrial and environmental.
• Cash balance of approximately $70 million as of March 31, 2018; expect to maintain a strong cash balance.
• Revenue growth contributed to a strong Adjusted EBITDA incremental margin of 42 percent year-on-year; expect higher incremental margins for the remainder of 2018.
• Management reiterates 2018 full year revenue guidance of approximately $250 million.
CEO Gary Kolstad commented, “We continue to show solid progress on our transformation strategy to diversify our revenue streams and return the company to profitability. Revenue for the first quarter of 2018 increased 42 percent year-on-year driven by strong growth in our oilfield and industrial business sectors. We continue to expand our suite of technologies into other industries to drive future growth. Our growing top line revenue contributed to a strong Adjusted EBITDA incremental margin of 42 percent year-on-year. Our oilfield technologies continue to exhibit the value they bring clients, as sales volumes increased 20 percent year-on-year. The technology products, including Kryptosphere, The Guard Family, Carboair, and Carbonrt continue to perform well in the market. Base ceramic sales volumes increased 12 percent year-on-year (adjusted for the sale of our Russia ceramic business.)
“We, like others, had disruptions in rail service during the quarter, which negatively impacted the volume of frac sand we were able to move out of our Wisconsin facility,” Kolstad added. “However, we still achieved a large increase in frac sand sales volume due to client demand, as well as the capacity increases we realized from the fourth quarter 2017 start-up of an additional sand operation in the Northeast. In addition to improving profitability and providing cash flow, frac sand sales drive opportunities to stay in front of our clients to discuss and promote our technologies and the ways that CARBO can add value through technology products and engineered completions.”