HOUSTON, Jan. 7, 2019 /PRNewswire/ -- CARBO Ceramics Inc.
(NYSE: CRR) announced that it has closed on the sale of its
Millen, Georgia facility with a
final purchase price of $23
million. Net proceeds are expected to approximate
$21 million after certain
post-closing items are completed.
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CEO Gary Kolstad commented, "In
keeping with our previously discussed transformation strategy, we
have completed the sale of the Millen facility. The City of Millen was a great partner to us over
the years and we have appreciated being part of their
community.
"We are pleased that our cash and cash equivalents and
restricted cash balance ended the year at approximately
$60 million, excluding proceeds from
the sale of Millen, compared to
$59 million at the end of the third
quarter of 2018. Maintaining a solid cash position during our
transformation is a priority.
"Including proceeds from the sale of Millen, we are entering 2019 with over
$80 million in cash and approximately
$92 million in debt, and expect to
use some of this cash to pay down debt during the year. In
addition, we are always looking for potential technology additions
to enhance our transformation strategy.
"Regarding our results for the fourth quarter of 2018, we expect
revenue to approximate $50 million as
the oil and gas industry continued to be challenging. We
expect full year 2018 revenue to approximate $211 million, an increase of 12% compared to
2017.
"We continue to drive the transformation of our businesses by
focusing on growth in technology products and market share in three
business sectors: Oilfield, Industrial, and Environmental. By
employing a disciplined approach to our transformation strategy, we
believe we are constructing a solid foundation for CARBO that helps
minimize the cyclical nature of the oil and gas industry. We
remain committed to diversifying our revenue streams and building
an enduring company," Mr. Kolstad concluded.
The preliminary results set forth above are based on
management's initial review of the Company's operations for the
quarter and year ended December 31, 2018 and are subject
to revision based upon the Company's year-end closing procedures
and the completion and external audit of the Company's year-end
financial statements by its independent registered public
accounting firm. Actual results may differ materially from these
preliminary results as a result of the completion of year-end
closing procedures, final adjustments and other developments
arising between now and the time that the Company's financial
results are finalized, and such changes could be material.
In addition, these preliminary results are not a
comprehensive statement of the Company's financial results for the
fourth quarter or full year ended December
31, 2018, and should not be viewed as a substitute for full,
audited financial statements prepared in accordance with generally
accepted accounting principles, and are not necessarily indicative
of the Company's results for any future period. The Company
expects to announce full 2018 financial results in advance of its
quarterly conference call, currently planned for Thursday,
January 31, 2019.
About CARBO
CARBO (NYSE: CRR) is a global technology company
that provides products and services to the oil and gas and
industrial markets to enhance value for its clients. The
Company has two reportable operating segments: 1) oilfield and
industrial technologies and services and 2) environmental
technologies and services.
CARBO Oilfield Technologies – is a leading
provider of market-leading technologies to create engineered
production enhancements solutions that help E&P operators to
design, build and optimize the frac – increasing well production
and estimated ultimate recovery, and lower finding and development
cost per barrel of oil equivalent.
CARBO Industrial Technologies - is a leading
provider of high-performance ceramic media and industrial
technologies engineered to increase clients' process efficiency,
improve end-product quality and reduce operating cost. Our minerals
processing and custom manufacturing services help bring new
products to market faster and meet customer demands while
minimizing investment.
CARBO Environmental Technologies – is a leading
provider of spill prevention and containment solutions that provide
the highest level of protection for clients' assets and the
environment in oil and gas, industrial, and commercial
applications. Our range of innovative products feature a
proprietary polyurea coating technology that creates a seamless,
impermeable, maintenance-free layer of protection.
For more information, please visit www.carboceramics.com.
Forward-Looking Statements
The statements in this news release that are not historical
statements, including statements regarding our future financial and
operating performance and liquidity and capital resources, are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements describe future expectations, plans, results or
strategies and can often be identified by the use of terminology
such as "may", "will", "estimate", "intend", "continue", "believe",
"expect", "anticipate", "should", "could", "potential",
"opportunity", or other similar terminology. All
forward-looking statements are based on management's current
expectations and estimates, which involve risks and uncertainties
that could cause actual results to differ materially from those
expressed in forward-looking statements. Among these factors
are changes in overall economic conditions, changes in the demand
for, or price of, oil and natural gas, changes in the cost of raw
materials and natural gas used in manufacturing our products, risks
related to our ability to access needed cash and capital, our
ability to meet our current and future debt service obligations,
including our ability to maintain compliance with our debt
covenants, our ability to manage distribution costs effectively,
changes in demand and prices charged for our products, risks of
increased competition, technological, manufacturing and product
development risks, our dependence on and loss of key customers and
end users, changes in foreign and domestic government regulations,
including environmental restrictions on operations and regulation
of hydraulic fracturing, changes in foreign and domestic political
and legislative risks, risks of war and international and domestic
terrorism, risks associated with foreign operations and foreign
currency exchange rates and controls, weather-related risks, risks
associated with the successful implementation of our transformation
strategy, and other risks and uncertainties. Additional
factors that could affect our future results or events are
described from time to time in our reports filed with the
Securities and Exchange Commission (the "SEC"). Please see
the discussion set forth under the caption "Risk Factors" in our
most recent annual report on Form 10-K, and similar disclosures in
subsequently filed reports with the SEC. We assume no
obligation to update forward-looking statements, except as required
by law.
FOR MORE INFORMATION:
Media:
Jamie Efurd, Marketing Director
+1 281-921-6400
Investors:
Mark Thomas, Director, Investor
Relations
+1 281-921-6400
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SOURCE CARBO Ceramics Inc.