Delaware
|
25-0530110
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Large accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
Class
|
Outstanding
at June 1, 2007
|
Common
Stock, $.01 par value
|
40,361,590
shares
|
|
|
Page
|
PART
1
-
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
|
||
Item
1.
|
Condensed
Consolidated Financial Statements
|
|
Introduction
to the Condensed Consolidated Financial Statements
|
2
|
|
Condensed
Consolidated Statements of Operations (unaudited)
|
3
|
|
Condensed
Consolidated Balance Sheets (unaudited)
|
4
|
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
5
|
|
Notes
to Condensed Consolidated Financial Statements (unaudited)
|
6
|
|
Item
2.
|
Management's
Discussion and Analysis of Results of
Operations and Financial Condition
|
24
|
Item
4.
|
Controls
and Procedures
|
30
|
|
||
PART
II
-
OTHER
INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
31
|
Item
1a.
|
Risk
Factors
|
31
|
Item
2c.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
31
|
Item
3.
|
Defaults
Upon Senior Securities
|
31
|
Item
6.
|
Exhibits
|
32
|
SIGNATURES
|
|
33
|
CERTIFICATIONS
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Net
sales
|
$
|
83,030
|
$
|
76,579
|
|||
Cost
of products sold (excluding depreciation)
|
58,424
|
57,411
|
|||||
Depreciation
and amortization
|
4,261
|
4,798
|
|||||
Selling,
general and administrative expenses
|
14,606
|
14,372
|
|||||
Research
and development expenses
|
828
|
1,197
|
|||||
Restructuring
charge
|
-
|
6
|
|||||
|
78,119
|
77,784
|
|||||
Income
(loss) from operations
|
4,911
|
(1,205
|
)
|
||||
Interest
income
|
302
|
86
|
|||||
Interest
expense
|
(1,450
|
)
|
(1,574
|
)
|
|||
Other
expense—net
|
(403
|
)
|
(844
|
)
|
|||
Income
(loss) from continuing operations before income taxes and equity
in income
from equity investments
|
3,360
|
(3,537
|
)
|
||||
Income
tax provision (benefit)
|
2,380
|
(345
|
)
|
||||
Income
(loss) from continuing operations before equity in income from
equity investments
|
980
|
(3,192
|
)
|
||||
Equity
in income from equity investments
|
1,054
|
203
|
|||||
Income
(loss) from continuing operations
|
2,034
|
(2,989
|
)
|
||||
Income
from discontinued operations - net of tax
|
-
|
1,575
|
|||||
Net
income (loss)
|
$
|
2,034
|
$
|
(1,414
|
)
|
||
Basic
and diluted income (loss) from continuing operations per common
share
|
$
|
.05
|
$
|
(.08
|
)
|
||
Income
from discontinued operations per common share
|
$
|
.00
|
$
|
.04
|
|||
Basic
and diluted income (loss) per common share
|
$
|
.05
|
$
|
(.04
|
)
|
||
Weighted
average shares outstanding
|
|||||||
Basic
|
40,224,585
|
39,854,726
|
|||||
Diluted
|
42,660,625
|
39,854,726
|
March
31,
|
December
31,
|
||||||
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
8,898
|
$
|
5,631
|
|||
Receivables
(net of allowance of $2,198 and $1,981)
|
59,792
|
55,036
|
|||||
Revenue
recognized in excess of billings on uncompleted contracts
|
7,103
|
7,576
|
|||||
Inventories
|
73,368
|
70,339
|
|||||
Deferred
income taxes - current
|
7,173
|
5,761
|
|||||
Other
current assets
|
4,323
|
4,369
|
|||||
Total
current assets
|
160,657
|
148,712
|
|||||
Property,
plant and equipment, net
|
103,479
|
106,101
|
|||||
Equity
investments
|
8,332
|
6,971
|
|||||
Intangibles
|
9,087
|
8,521
|
|||||
Goodwill
|
27,540
|
27,497
|
|||||
Deferred
income taxes - long-term
|
11,094
|
20,225
|
|||||
Other
assets
|
3,332
|
4,337
|
|||||
Total
assets
|
$
|
323,521
|
$
|
322,364
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Short-term
debt
|
$
|
62,960
|
$
|
-
|
|||
Accounts
payable and accrued liabilities
|
38,656
|
36,614
|
|||||
Billings
in excess of revenue recognized on uncompleted contracts
|
2,716
|
2,516
|
|||||
Accrued
interest
|
653
|
1,440
|
|||||
Payroll
and benefits payable
|
7,189
|
6,533
|
|||||
Accrued
income taxes
|
4,883
|
8,423
|
|||||
Total
current liabilities
|
117,057
|
55,526
|
|||||
Long-term
debt
|
12,925
|
74,836
|
|||||
Deferred
income taxes - long-term
|
1,694
|
1,679
|
|||||
Accrued
pension and other liabilities
|
43,659
|
42,450
|
|||||
Total
liabilities
|
175,335
|
174,491
|
|||||
Commitments
and contingencies
|
|||||||
Shareholders'
equity:
|
|||||||
Common
shares, $.01 par value, 100,000,000 shares authorized,
42,550,290 and 42,550,290 shares issued
|
425
|
425
|
|||||
Additional
paid-in capital
|
71,274
|
70,345
|
|||||
Retained
earnings
|
91,731
|
94,035
|
|||||
Accumulated
other comprehensive income
|
12,067
|
10,305
|
|||||
175,497
|
175,110
|
||||||
Treasury
stock, at cost, 2,842,390 and 2,819,690 shares
|
(27,311
|
)
|
(27,237
|
)
|
|||
Total
shareholders' equity
|
148,186
|
147,873
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
323,521
|
$
|
322,364
|
Three
Months Ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from operating activities
|
|||||||
Net
income (loss)
|
$
|
2,034
|
$
|
(1,414
|
)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|||||||
Gain
from sale of assets, pre-tax
|
-
|
(6,078
|
)
|
||||
Depreciation
and amortization
|
4,261
|
4,800
|
|||||
Equity
in income from equity investments
|
(1,054
|
)
|
(203
|
)
|
|||
Employee
benefit plan provisions
|
520
|
1,154
|
|||||
Changes
in assets and liabilities:
|
|||||||
Increase
in receivables
|
(4,528
|
)
|
(1,803
|
)
|
|||
Increase
in inventories
|
(2,818
|
)
|
(2,683
|
)
|
|||
Decrease in
revenue in excess of billings on uncompleted contracts and other
current
assets
|
548
|
(1,036
|
)
|
||||
Increase
(decrease) in accounts payable, accrued liabilities, and billings
in
excess of revenue
|
1,901
|
(1,228
|
)
|
||||
Increase
(decrease) in accrued income taxes
|
743
|
725
|
|
||||
Increase
in deferred income taxes
|
301
|
1,270
|
|||||
Other
items - net
|
1,515
|
2,367
|
|
||||
Net
cash provided by (used in) operating activities
|
3,423
|
(4,129
|
)
|
||||
Cash
flows from investing activities
|
|||||||
Proceeds
from the sale of assets
|
-
|
19,120
|
|||||
Property,
plant and equipment expenditures
|
(1,965
|
)
|
(3,093
|
)
|
|||
Proceeds
from disposals of property, plant and equipment
|
147
|
52
|
|||||
Net
cash (used in) provided by investing activities
|
(1,818
|
)
|
16,079
|
||||
|
|||||||
Cash
flows from financing activities
|
|||||||
Proceeds
from borrowings
|
5,144
|
32,300
|
|||||
Repayments
of borrowings
|
(4,095
|
)
|
(44,726
|
)
|
|||
Treasury
stock purchased
|
(74
|
)
|
-
|
||||
Common
stock issued through exercise of stock options
|
-
|
27
|
|||||
Net
cash provided by (used in) financing activities
|
975
|
(12,399
|
)
|
||||
Effect
of exchange rate changes on cash
|
687
|
(614
|
)
|
||||
Increase
(decrease) in cash and cash equivalents
|
3,267
|
(1,063
|
)
|
||||
Cash
and cash equivalents, beginning of period
|
5,631
|
5,446
|
|||||
Cash
and cash equivalents, end of period
|
$
|
8,898
|
$
|
4,383
|
1. |
Inventories:
|
March
31,
2007 |
December
31,
2006 |
||||||
Raw
materials
|
$
|
19,054
|
$
|
16,587
|
|||
Finished
goods
|
54,314
|
53,752
|
|||||
$
|
73,368
|
$
|
70,339
|
2. |
Supplemental Cash Flow
Information:
|
3. |
Dividends:
|
4. |
Comprehensive
income (loss):
|
|
Three
Months Ended March 31,
|
||||||
2007
|
2006
|
||||||
Net
income (loss)
|
$
|
2,034
|
$
|
(1,414
|
)
|
||
Other
comprehensive income, net of taxes
|
1,762
|
858
|
|||||
Comprehensive
income (loss)
|
$
|
3,796
|
$
|
(556
|
)
|
Three
Months Ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
Net
Sales
|
|||||||
Carbon
and Service
|
$
|
68,683
|
$
|
65,185
|
|||
Equipment
|
10,966
|
8,441
|
|||||
Consumer
|
3,381
|
2,953
|
|||||
$
|
83,030
|
$
|
76,579
|
||||
Income
(loss) from continuing operations
|
|||||||
before
depreciation, amortization,
|
|||||||
restructuring,
and income taxes
|
|||||||
Carbon
and Service
|
$
|
8,473
|
$
|
5,048
|
|||
Equipment
|
(129
|
)
|
(1,659
|
)
|
|||
Consumer
|
828
|
210
|
|||||
9,172
|
3,599
|
||||||
Depreciation
and amortization
|
|||||||
Carbon
and Service
|
3,888
|
4,449
|
|||||
Equipment
|
240
|
210
|
|||||
Consumer
|
133
|
139
|
|||||
4,261
|
4,798
|
||||||
Income
(loss) from continuing operations before
|
|||||||
restructuring
and income taxes
|
$
|
4,911
|
$
|
(1,199
|
)
|
||
Reconciling
items:
|
|||||||
Restructuring
charges
|
-
|
(6
|
)
|
||||
Interest
income
|
302
|
86
|
|||||
Interest
expense
|
(1,450
|
)
|
(1,574
|
)
|
|||
Other
expense - net
|
(403
|
)
|
(844
|
)
|
|||
Consolidated
income (loss) from continuing operations
|
|||||||
before
income taxes and equity in income from equity
|
|||||||
investments
|
$
|
3,360
|
$
|
(3,537
|
)
|
March
31, 2007
|
December
31, 2006
|
||||||
Total
Assets
|
|||||||
Carbon
and Service
|
$
|
277,046
|
$
|
277,134
|
|||
Equipment
|
33,520
|
34,031
|
|||||
Consumer
|
12,955
|
11,199
|
|||||
Consolidated
total assets
|
$
|
323,521
|
$
|
322,364
|
Three
months ended March 31
|
|||||||
(Thousands)
|
2007
|
2006
|
|||||
Carbon
products
|
$
|
62,728
|
$
|
59,589
|
|||
Capital
equipment
|
8,091
|
6,224
|
|||||
Equipment
leasing
|
3,252
|
3,515
|
|||||
Spare
parts
|
2,875
|
2,217
|
|||||
Carbon
cloth products
|
2,863
|
1,995
|
|||||
Home
consumer products
|
518
|
958
|
|||||
Other
services
|
2,703
|
2,081
|
|||||
Total
sales
|
$
|
83,030
|
$
|
76,579
|
6. |
Derivative
Instruments
|
7. |
Contingencies
|
8. |
Goodwill & Intangible
Assets
|
(Thousands)
|
||||||||||
At
December 31, 2006
|
||||||||||
Carrying
|
Carrying
|
|||||||||
Fair
Value of
|
Value
of
|
Value
of
|
||||||||
Reporting
Unit
|
Unit
|
Unit
|
Goodwill
|
|||||||
Activated
Carbon and Service Segment:
|
||||||||||
Americas/Asia
|
$
|
187,000
|
$
|
141,740
|
$
|
16,768
|
||||
Europe
|
56,800
|
43,306
|
4,288
|
|||||||
Equipment
Segment:
|
||||||||||
ISEP
equipment
|
||||||||||
(ISEP)
|
22,900
|
4,668
|
4,419
|
|||||||
Ultraviolet
light
|
||||||||||
equipment
(UV)
|
14,445
|
9,222
|
1,962
|
|||||||
Consumer
Segment
|
N/A
|
N/A
|
60
|
|||||||
Total
|
$
|
27,497
|
Carbon
&
|
|
|
|
|
|
|
|
||||||
|
|
Service
|
|
Equipment
|
|
Consumer
|
|
|
|
||||
|
|
Segment
|
|
Segment
|
|
Segment
|
|
Total
|
|||||
Balance
as of January 1, 2007
|
$
|
21,056
|
$
|
6,381
|
$
|
60
|
$
|
27,497
|
|||||
Foreign
exchange
|
25
|
18
|
-
|
43
|
|||||||||
Balance
as of March 31, 2007
|
$
|
21,081
|
$
|
6,399
|
$
|
60
|
$
|
27,540
|
March
31, 2007
|
||||||||||||||||
Weighted
Average Amortization Period
|
|
Gross
Carrying Amount
|
|
Foreign
Exchange
|
|
Accumulated
Amortization
|
|
Net
Carrying Amount
|
||||||||
Amortized
Intangible Assets:
|
||||||||||||||||
Patents
|
15.4
Years
|
$
|
1,369
|
$
|
-
|
$
|
(814
|
)
|
$
|
555
|
||||||
Customer
Relationships
|
17.0
Years
|
9,323
|
17
|
(3,893
|
)
|
5,447
|
||||||||||
Customer
Contracts
|
2.8
Years
|
664
|
(20
|
)
|
(644
|
)
|
-
|
|||||||||
License
Agreement
|
5.0
Years
|
500
|
-
|
(342
|
)
|
158
|
||||||||||
Product
Certification
|
7.9
Years
|
1,682
|
-
|
(394
|
)
|
1,288
|
||||||||||
Unpatented
Technology
|
20.0
Years
|
2,875
|
-
|
(1.236
|
)
|
1,639
|
||||||||||
Total
|
16.0
Years
|
$
|
16,413
|
$
|
(3
|
)
|
$
|
(7,323
|
)
|
$
|
9,087
|
December
31, 2006
|
||||||||||||||||
Weighted
Average Amortization Period
|
Gross
Carrying Amount
|
Foreign
Exchange
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||||||
Amortized
Intangible Assets:
|
||||||||||||||||
Patents
|
15.4
Years
|
$
|
1,369
|
$
|
-
|
$
|
(793
|
)
|
$
|
576
|
||||||
Customer
Relationships
|
17.0
Years
|
9,323
|
11
|
(3,596
|
)
|
5,738
|
||||||||||
Customer
Contracts
|
2.8
Years
|
664
|
(20
|
)
|
(644
|
)
|
-
|
|||||||||
License
Agreement
|
5.0
Years
|
500
|
-
|
(317
|
)
|
183
|
||||||||||
Product
Certification
|
7.9
Years
|
665
|
-
|
(321
|
)
|
344
|
||||||||||
Unpatented
Technology
|
20.0
Years
|
2,875
|
-
|
(1.195
|
)
|
1,680
|
||||||||||
Total
|
16.0
Years
|
$
|
15,396
|
$
|
(9
|
)
|
$
|
(6,866
|
)
|
$
|
8,521
|
(Thousands)
|
||||
For
the year ending December 31:
|
||||
2007
|
$
|
1,785
|
||
2008
|
$
|
1,585
|
||
2009
|
$
|
1,312
|
||
2010
|
$
|
1,168
|
||
2011
|
$
|
824
|
9. |
Borrowing Arrangements
|
10. |
Pensions
|
Three
Months Ended March 31
|
|||||||
Pension
Benefits (in thousands)
|
2007
|
2006
|
|||||
Service
cost
|
$
|
322
|
$
|
647
|
|||
Interest
cost
|
1,174
|
1,252
|
|||||
Expected
return on plan assets
|
(1,229
|
)
|
(1,063
|
)
|
|||
Amortization
of prior service cost
|
61
|
81
|
|||||
Net
actuarial loss amortization
|
69
|
253
|
|||||
Net
periodic pension cost
|
$
|
397
|
$
|
1,170
|
Three
Months Ended March 31
|
|||||||
Pension
Benefits (in thousands)
|
2007
|
2006
|
|||||
Service
cost
|
$
|
181
|
$
|
253
|
|||
Interest
cost
|
426
|
422
|
|||||
Expected
return on plan assets
|
(320
|
)
|
(272
|
)
|
|||
Amortization
of net transition amount
|
11
|
13
|
|||||
Net
actuarial loss amortization
|
25
|
48
|
|||||
Net
periodic pension cost
|
$
|
323
|
$
|
464
|
11. |
Earnings Per
Share
|
Three
Months Ended March 31,
|
|||||||
(Dollars
in thousands, except per share amounts)
|
2007
|
2006
|
|||||
Income
(loss) from continuing operations available to
|
|||||||
common
shareholders
|
$
|
2,034
|
$
|
(2,989
|
)
|
||
Weighted
Average Shares Outstanding
|
|||||||
Basic
|
40,224,585
|
39,854,726
|
|||||
Effect
of Dilutive Securities
|
2,436,040
|
-
|
|||||
Diluted
|
42,660,625
|
39,854,726
|
|||||
Basic
and diluted net income (loss) from continuing
|
|||||||
operations
per common share
|
$
|
.05
|
$
|
(.08
|
)
|
Conversion
Price:
|
$
|
5.10
|
||
Number
of underlying shares:
|
14,705,880
|
|||
Principal
Amount:
|
$
|
75,000,000
|
Formula:
|
Number
of extra dilutive shares
|
||||
=((Stock
Price * Underlying Shares) - Principal)/Stock Price
|
|||||
Condition:
|
Only
applies when share price exceeds
$5.10
|
Stock
Price
|
Conversion
Price
|
Price
Difference
|
Included
in
Share
Count
|
Share
Dilution Per Price Difference
|
|||||||||
$
5.10
|
|
$5.10
|
|
$0.00
|
-
|
-
|
|||||||
$
5.60
|
|
|
$5.10
|
|
$0.50
|
1,313,023
|
2,626,046
|
||||||
$
6.10
|
|
$5.10
|
|
$1.00
|
2,410,798
|
2,410,798
|
|||||||
$
7.10
|
|
$5.10
|
|
$2.00
|
4,142,500
|
2,071,250
|
|||||||
$
8.10
|
|
$5.10
|
|
$3.00
|
5,446,621
|
1,815,540
|
|||||||
$
9.10
|
|
$5.10
|
|
$4.00
|
6,464,122
|
1,616,031
|
|||||||
$
10.10
|
|
$5.10
|
|
$5.00
|
7,280,137
|
1,456,027
|
|||||||
$
11.10
|
|
$5.10
|
|
$6.00
|
7,949,123
|
1,324,854
|
|||||||
$
12.10
|
|
$5.10
|
|
$7.00
|
8,507,533
|
1,215,362
|
12. |
Other Financial
Information
|
Condensed
Consolidating Statements of Operations
Three
months ended March 31, 2007
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Net
sales
|
$
|
71,860
|
$
|
11,887
|
$
|
12,313
|
$
|
(13,030
|
)
|
$
|
83,030
|
|||||
Cost
of products sold
|
52,715
|
9,695
|
9,044
|
(13,030
|
)
|
58,424
|
||||||||||
Depreciation
and amortization
|
3,427
|
277
|
557
|
-
|
4,261
|
|||||||||||
Selling,
general and administrative expenses
|
12,592
|
1,305
|
709
|
-
|
14,606
|
|||||||||||
Research
and development expense
|
736
|
92
|
-
|
-
|
828
|
|||||||||||
Interest
(income) expense - net
|
5,276
|
(3,896
|
)
|
(232
|
)
|
-
|
1,148
|
|||||||||
Other
expense - net
|
330
|
235
|
(162
|
)
|
-
|
403
|
||||||||||
Provision
for income taxes
|
1,609
|
69
|
|
702
|
-
|
2,380
|
||||||||||
Results
of affiliates’ operations
|
6,859
|
903
|
-
|
(7,762
|
)
|
-
|
||||||||||
Equity
in income from equity investments
|
-
|
-
|
1,049
|
5
|
1,054
|
|||||||||||
Net
income (loss)
|
$
|
2,034
|
$
|
5,013
|
$
|
2,744
|
$
|
(7,757
|
)
|
$
|
2,034
|
Condensed
Consolidating Statements of Operations
Three
months ended March 31, 2006
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Net
sales
|
$
|
68,431
|
$
|
9,959
|
$
|
10,568
|
$
|
(12,379
|
)
|
$
|
76,579
|
|||||
Cost
of products sold
|
52,257
|
8,720
|
8,813
|
(12,379
|
)
|
57,411
|
||||||||||
Depreciation
and amortization
|
4,309
|
398
|
91
|
-
|
4,798
|
|||||||||||
Selling,
general and administrative expenses
|
13,623
|
(70
|
)
|
819
|
-
|
14,372
|
||||||||||
Research
and development expense
|
1,111
|
86
|
-
|
-
|
1,197
|
|||||||||||
Restructuring
|
6
|
-
|
-
|
-
|
6
|
|||||||||||
Interest
(income) expense - net
|
4,999
|
(3,444
|
)
|
(67
|
)
|
-
|
1,488
|
|||||||||
Other
expense - net
|
463
|
125
|
256
|
-
|
844
|
|||||||||||
Provision
(benefit) for income taxes
|
2,272
|
96
|
(2,713
|
)
|
-
|
(345
|
)
|
|||||||||
Results
of affiliates’ operations
|
9,004
|
5,382
|
-
|
(14,386
|
)
|
-
|
||||||||||
Equity
in income from equity investments
|
-
|
-
|
203
|
-
|
203
|
|||||||||||
Income
(loss) from continuing operations
|
(1,605
|
)
|
9,430
|
3,572
|
(14,386
|
)
|
(2,989
|
)
|
||||||||
Income
(loss) from discontinued operations
|
191
|
(178
|
)
|
1,562
|
-
|
1,575
|
||||||||||
Net
income (loss)
|
$
|
(1,414
|
)
|
$
|
9,252
|
$
|
5,134
|
$
|
(14,386
|
)
|
$
|
(1,414
|
)
|
Condensed
Consolidating Balance Sheets
|
||||||||||||||||
March
31, 2007
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Cash
& Cash Equivalents
|
$
|
5,396
|
$
|
2,114
|
$
|
21,679
|
$
|
(20,291
|
)
|
$
|
8,898
|
|||||
Receivables
|
46,425
|
16,240
|
5,446
|
(8,319
|
)
|
59,792
|
||||||||||
Inventories
|
60,529
|
7,347
|
5,459
|
33
|
73,368
|
|||||||||||
Other
current assets
|
15,372
|
1,596
|
1,631
|
-
|
18,599
|
|||||||||||
Total
current assets
|
127,722
|
27,297
|
34,215
|
(28,577
|
)
|
160,657
|
||||||||||
Intercompany
accounts receivable
|
56,271
|
164,358
|
1,602
|
(222,231
|
)
|
-
|
||||||||||
Property,
plant, and equipment, net
|
89,033
|
6,933
|
7,513
|
-
|
103,479
|
|||||||||||
Intangibles
|
5,528
|
3,559
|
-
|
-
|
9,087
|
|||||||||||
Goodwill
|
16,674
|
8,306
|
2,560
|
-
|
27,540
|
|||||||||||
Equity
investments
|
226,123
|
102,975
|
8,142
|
(328,908
|
)
|
8,332
|
||||||||||
Other
assets
|
7,113
|
3,580
|
3,733
|
-
|
14,426
|
|||||||||||
Total
assets
|
$
|
528,464
|
$
|
317,008
|
$
|
57,765
|
$
|
(579,716
|
)
|
$
|
323,521
|
|||||
Short-term
debt
|
$
|
62,056
|
$
|
-
|
$
|
904
|
$
|
-
|
$
|
62,960
|
||||||
Accounts
payable
|
31,012
|
18,824
|
5,221
|
(13,685
|
)
|
41,372
|
||||||||||
Other
current liabilities
|
30,043
|
805
|
3,874
|
(21,997
|
)
|
12,725
|
||||||||||
Total
current liabilities
|
123,111
|
19,629
|
9,999
|
(35,682
|
)
|
117,057
|
||||||||||
Intercompany
accounts payable
|
153,114
|
51,791
|
10,253
|
(215,158
|
)
|
-
|
||||||||||
Long-term
debt
|
12,925
|
-
|
-
|
-
|
12,925
|
|||||||||||
Other
non-current liabilities
|
91,128
|
12,196
|
10,457
|
(68,428
|
)
|
45,353
|
||||||||||
Shareholders'
equity
|
148,186
|
233,392
|
27,056
|
(260,448
|
)
|
148,186
|
||||||||||
Total
liabilities and shareholders' equity
|
$
|
528,464
|
$
|
317,008
|
$
|
57,765
|
$
|
(579,716
|
)
|
$
|
323,521
|
Condensed
Consolidating Balance Sheets
|
||||||||||||||||
December
31, 2006
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Cash
& Cash Equivalents
|
$
|
-
|
$
|
2,507
|
$
|
19,556
|
$
|
(16,432
|
)
|
$
|
5,631
|
|||||
Receivables
|
44,741
|
15,014
|
5,187
|
(9,906
|
)
|
55,036
|
||||||||||
Inventories
|
57,143
|
7,323
|
5,840
|
33
|
70,339
|
|||||||||||
Other
current assets
|
14,927
|
1,549
|
1,230
|
-
|
17,706
|
|||||||||||
Total
current assets
|
116,811
|
26,393
|
31,813
|
(26,305
|
)
|
148,712
|
||||||||||
Intercompany
accounts receivable
|
54,887
|
157,438
|
384
|
(212,709
|
)
|
-
|
||||||||||
Property,
plant, and equipment, net
|
91,670
|
6,986
|
7,445
|
-
|
106,101
|
|||||||||||
Intangibles
|
4,835
|
3,686
|
-
|
-
|
8,521
|
|||||||||||
Goodwill
|
16,674
|
8,281
|
2,542
|
-
|
27,497
|
|||||||||||
Equity
investments
|
218,957
|
101,376
|
6,786
|
(320,148
|
)
|
6,971
|
||||||||||
Other
assets
|
17,156
|
3,870
|
3,536
|
-
|
24,562
|
|||||||||||
Total
assets
|
$
|
520,990
|
$
|
308,030
|
$
|
52,506
|
$
|
(559,162
|
)
|
$
|
322,364
|
|||||
Accounts
payable
|
$
|
30,807
|
$
|
18,626
|
$
|
4,164
|
$
|
(14,467
|
)
|
$
|
39,130
|
|||||
Other
current liabilities
|
31,256
|
666
|
3,424
|
(18,950
|
)
|
16,396
|
||||||||||
Total
current liabilities
|
62,063
|
19,292
|
7,588
|
(33,417
|
)
|
55,526
|
||||||||||
Intercompany
accounts payable
|
146,151
|
48,611
|
10,867
|
(205,629
|
)
|
-
|
||||||||||
Long-term
debt
|
74,836
|
-
|
-
|
-
|
74,836
|
|||||||||||
Other
non-current liabilities
|
90,067
|
12,292
|
9,539
|
(67,769
|
)
|
44,129
|
||||||||||
Shareholders'
equity
|
147,873
|
227,835
|
24,512
|
(252,347
|
)
|
147,873
|
||||||||||
Total
liabilities and shareholders' equity
|
$
|
520,990
|
$
|
308,030
|
$
|
52,506
|
$
|
(559,162
|
)
|
$
|
322,364
|
|||||
Condensed
Consolidating Statements of Cash Flows
|
||||||||||||||||
Three
months ended March 31, 2007
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Net
cash (used in) provided by operating activities
|
$
|
(4,087
|
)
|
$
|
3,491
|
$
|
2,967
|
$
|
1,052
|
$
|
3,423
|
|||||
Investing
activities:
|
||||||||||||||||
Property,
plant and equipment expenditures
|
(1,656
|
)
|
(128
|
)
|
(181
|
)
|
-
|
(1,965
|
)
|
|||||||
Investment
from (in) affiliates
|
-
|
(60
|
)
|
61
|
(1
|
)
|
-
|
|||||||||
Other
|
147
|
-
|
-
|
-
|
147
|
|||||||||||
Net
cash (used in) provided by investing activities
|
(1,509
|
)
|
(188
|
)
|
(120
|
)
|
(1
|
)
|
(1,818
|
)
|
||||||
Financing
activities:
|
||||||||||||||||
Net
borrowings (repayments)
|
4,871
|
-
|
931
|
(4,753
|
)
|
1,049
|
||||||||||
Intercompany
and equity transactions
|
4,687
|
(3,739
|
)
|
(1,837
|
)
|
889
|
-
|
|||||||||
Other
|
(74
|
)
|
(1
|
)
|
-
|
1
|
(74
|
)
|
||||||||
Net
cash provided by (used in) financing activities
|
9,484
|
(3,740
|
)
|
(906
|
)
|
(3,863
|
)
|
975
|
||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
1,508
|
44
|
182
|
(1,047
|
)
|
687
|
||||||||||
Increase
(decrease) in cash and cash equivalents
|
5,396
|
(393
|
)
|
2,123
|
(3,859
|
)
|
3,267
|
|||||||||
Cash
and cash equivalents, beginning of period
|
-
|
2,507
|
19,556
|
(16,432
|
)
|
5,631
|
||||||||||
Cash
and cash equivalents, end of period
|
$
|
5,396
|
$
|
2,114
|
$
|
21,679
|
$
|
(20,291
|
)
|
$
|
8,898
|
Condensed
Consolidating Statements of Cash Flows
|
||||||||||||||||
Three
months ended March 31, 2006
|
||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and Eliminating Entries
|
Consolidated
|
||||||||||||
Net
cash (used in) provided by operating activities
|
$
|
(6,056
|
)
|
$
|
4,033
|
$
|
(1,559
|
)
|
$
|
(547
|
)
|
$
|
(4,129
|
)
|
||
Investing
activities:
|
||||||||||||||||
Proceeds
from divestitures
|
-
|
-
|
19,120
|
-
|
19,120
|
|||||||||||
Property,
plant and equipment expenditures
|
(2,801
|
)
|
(48
|
)
|
(244
|
)
|
-
|
(3,093
|
)
|
|||||||
Investment
from (in) affiliates
|
-
|
(98
|
)
|
98
|
-
|
-
|
||||||||||
Other
|
52
|
-
|
-
|
-
|
52
|
|||||||||||
Net
cash (used in) provided by investing activities
|
(2,749
|
)
|
(146
|
)
|
18,974
|
-
|
16,079
|
|||||||||
Financing
activities:
|
||||||||||||||||
Net
repayments
|
(10,654
|
)
|
(607
|
)
|
(80
|
)
|
(1,085
|
)
|
(12,426
|
)
|
||||||
Intercompany
and equity transactions
|
5,168
|
(5,048
|
)
|
(120
|
)
|
-
|
-
|
|||||||||
Other
|
27
|
30
|
-
|
(30
|
)
|
27
|
||||||||||
Net
cash used in financing activities
|
(5,459
|
)
|
(5,625
|
)
|
(200
|
)
|
(1,115
|
)
|
(12,399
|
)
|
||||||
Effect
of exchange rate changes on cash and cash equivalents
|
934
|
90
|
(2,215
|
)
|
577
|
(614
|
)
|
|||||||||
(Decrease)
increase in cash and cash equivalents
|
(13,330
|
)
|
(1,648
|
)
|
15,000
|
(1,085
|
)
|
(1,063
|
)
|
|||||||
Cash
and cash equivalents, beginning of period
|
3,049
|
3,681
|
9,836
|
(11,120
|
)
|
5,446
|
||||||||||
Cash
and cash equivalents, end of period
|
$
|
(10,281
|
)
|
$
|
2,033
|
$
|
24,836
|
$
|
(12,205
|
)
|
$
|
4,383
|
13. |
Related Party
Transactions
|
14. |
Income
Taxes
|
15. |
New Accounting
Pronouncements
|
16. |
Reclassifications
|
Due
in
|
||||||||||||||||||||||
(Thousands)
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
Thereafter
|
|
Total
|
|||||||||
Short-term
debt *
|
$
|
904
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
65,000
|
$
|
-
|
$
|
65,904
|
||||||||
Long-term
debt
|
-
|
-
|
2,925
|
-
|
10,000
|
-
|
12,925
|
|||||||||||||||
Operating
leases
|
4,127
|
3,056
|
2,673
|
2,357
|
2,000
|
10,604
|
24,817
|
|||||||||||||||
Unconditional
purchase
|
||||||||||||||||||||||
obligations**
|
26,981
|
19,853
|
10,019
|
7,753
|
5,711
|
-
|
70,317
|
|||||||||||||||
Total
contractual cash
|
||||||||||||||||||||||
Obligations
|
$
|
32,012
|
$
|
22,909
|
$
|
15,617
|
$
|
10,110
|
$
|
82,711
|
$
|
10,604
|
$
|
173,963
|
Item
1.
|
Legal
Proceedings
|
See
Note 7 to
the unaudited interim Condensed Consolidated Financial Statements
contained herein.
|
|
Item
1a.
|
Risk
Factors
|
There
were no material changes in the Company’s risk factors from the risks
disclosed in the Company’s Form 10-K for the year ended December 31,
2006.
|
|
Item 2c. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period
|
Total
Number
of
Shares
Purchased
(a)
|
Average
Price
Paid
Per
Share (b)
|
Total
Number of
Shares
Purchased
as
Part of Publicly
Announced
Repurchase
Plans
or
Programs (c)
|
Maximum
Number
(or
Approximate
Dollar
Value)
of
Shares that May
Yet
be Purchased
Under
the Plans or
Programs
(d)
|
|||||||||
January
1 - January 31, 2007
|
---
|
---
|
---
|
---
|
|||||||||
February
1 - February 28, 2007
|
11,921
|
$
|
6.22
|
---
|
---
|
||||||||
March
1 - March 31, 2007
|
10,779
|
$
|
8.10
|
---
|
---
|
Item
3.
|
Defaults
Upon Senior Securities
|
Item
6.
|
Exhibits
|
|
||
|
|
CALGON
CARBON
CORPORATION
(REGISTRANT)
|
Date: June 5, 2007 | /s/ Leroy M. Ball | |
Leroy
M.
Ball
Senior
Vice
President,
|
||
Chief Financial Officer |
Exhibit
No.
|
Description
|
Method
of Filing
|
31.1
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
31.2
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
302 of
the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
32.1
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
32.2
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
99.1
|
Amendment
No. 2 to Credit Agreement, as amended on May 29,
2007.
|
Filed
herewith
|