CARBO Ceramics Inc. reported financial results for the first quarter of 2019. Including:
• Revenue for the first quarter of 2019 of $47.5 million, a decrease of 4% year-on-year.
• Gross Loss for the first quarter of 2019 of $7.9 million, improved $2.2 million year-on-year despite 4% lower revenue.
• Adjusted EBITDA improved by approximately $1.0 million year-on-year driven by improved revenue mix, higher pricing and lower costs.
• Expecting a sequentially stronger second quarter of 2019 primarily due to higher ceramic technology sales.
• Cash and cash equivalents and restricted cash of approximately $81.8 million at March 31, 2019.
• Subsequent to quarter end, $27 million in debt was repaid on April 1, 2019. On a pro forma basis, cash and cash equivalents and restricted cash balance was approximately $55 million with debt outstanding of $65M.
CEO Gary Kolstad commented, “While first quarter consolidated revenues declined year-on-year, we were pleased to see our industrial sector and environmental sector revenue increase. The continued volatility in our oilfield sector reinforces our belief that we are on the right path to return the company to profitability by diversifying our revenue streams and reducing our reliance on the oil and gas industry. To support this diversification effort, we continue to develop and commercialize products for all three of our market sectors. Maintaining a solid cash balance during the execution of our transformation strategy is of high importance.