x
|
Annual
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
|
Delaware
|
25-0530110
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
|
Identification No.)
|
400 Calgon Carbon Drive
|
||
Pittsburgh, Pennsylvania
|
15205
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, par value $0.01 per share
|
New York Stock Exchange
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
|
Form
10-K
|
||
Document
|
Part Number
|
|
Proxy
Statement filed pursuant to Regulation 14A in connection with registrant's
Annual Meeting of Shareholders to be held on April 30,
2009.
|
III
|
PART
I
|
||||||
Item
1.
|
Business
|
5
|
||||
Item
1A.
|
Risk
Factors
|
19
|
||||
Item
1B.
|
Unresolved
Staff Comments
|
29
|
||||
Item
2.
|
Properties
|
30
|
||||
Item
3.
|
Legal
Proceedings
|
33
|
||||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
35
|
||||
PART
II
|
||||||
Item
5.
|
Market
for Registrant’s Common Equity, Related Shareholder Matters and Issuer
Repurchases of Equity Securities
|
35
|
||||
Item
6.
|
Selected
Financial Data
|
37
|
||||
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
38
|
||||
|
Item
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
59
|
|||
Item
8.
|
Financial
Statements and Supplementary Data
|
60
|
||||
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
137
|
||||
Item
9A.
|
Controls
and Procedures
|
137
|
||||
Item
9B.
|
Other
Information
|
138
|
||||
PART
III
|
||||||
Item
10.
|
Directors,
Executive Officers, and Corporate Governance of the
Registrant
|
138
|
||||
Item
11.
|
Executive
Compensation
|
138
|
||||
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Shareholder Matters
|
139
|
||||
Item
13.
|
Certain
Relationships, Related Transactions, and Director
Independence
|
140
|
||||
Item
14.
|
Principal
Accounting Fees and Services
|
141
|
||||
PART
IV
|
||||||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
142
|
||||
SIGNATURES
|
147
|
|||||
CERTIFICATIONS
|
|
|
|
·
|
Corporate
Governance Guidelines
|
|
·
|
Audit
Committee Charter
|
|
·
|
Compensation
Committee Charter
|
|
·
|
Corporate
Governance Committee Charter
|
|
·
|
Code
of Business Conduct and Ethics
|
|
·
|
Code
of Ethical Business Conduct Supplement for Chief Executive and Senior
Financial Officers
|
|
·
|
Director
Orientation and Continuing Education
Policy
|
|
·
|
Executive
Committee Charter
|
|
·
|
providing
for a board of directors with staggered, three-year
terms;
|
|
·
|
requiring
super-majority voting to affect certain amendments to our certificate of
incorporation and bylaws;
|
|
·
|
limiting
the persons who may call special stockholders’
meetings;
|
|
·
|
limiting
stockholder action by written
consent;
|
|
·
|
establishing
advance notice requirements for nominations for election to the board of
directors or for proposing matters that can be acted upon at stockholders’
meetings; and
|
|
·
|
allowing
our board of directors to issue shares of preferred stock without
stockholder approval.
|
2008
|
2007
|
|||||||||||||||||||||||
Fiscal Quarter
|
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
||||||||||||||||||
First
|
18.92 | 13.19 | - | 9.52 | 5.43 | - | ||||||||||||||||||
Second
|
20.23 | 12.63 | - | 12.20 | 7.37 | - | ||||||||||||||||||
Third
|
23.03 | 14.04 | - | 14.74 | 10.30 | - | ||||||||||||||||||
Fourth
|
21.64 | 9.11 | - | 16.96 | 11.64 | - |
Period
|
Total
Number
of Shares
Purchased (a)
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced
Repurchase Plans
or Programs
|
Maximum
Number
(or Approximate
Dollar Value)
of Shares that
May
Yet be Purchased
Under the Plans
or
Programs
|
||||||||||||
October
1 – October 31, 2008
|
— | — | — | — | ||||||||||||
November
1 – November 30, 2008
|
23,730 | $ | 15.11 | — | — | |||||||||||
December
1 – December 31, 2008
|
— | — | — | — |
(Dollars in thousands, except per share data)
|
2008(5)
|
2007
|
2006(4)
|
2005
|
2004(3)
|
|||||||||||||||
Income
Statement Data:
|
||||||||||||||||||||
Net
sales
|
$ | 400,270 | $ | 351,124 | $ | 316,122 | $ | 290,835 | $ | 295,877 | ||||||||||
Income
(loss) from continuing operations
|
$ | 35,564 | $ | 15,453 | $ | (9,012 | ) | $ | (10,507 | ) | $ | 3,968 | ||||||||
Income
(loss) from continuing operations per common share, basic
|
$ | 0.80 | $ | 0.39 | $ | (0.23 | ) | $ | (0.27 | ) | $ | 0.10 | ||||||||
Income
(loss) from continuing operations per common share,
diluted
|
$ | 0.67 | $ | 0.31 | $ | (0.23 | ) | $ | (0.27 | ) | $ | 0.10 | ||||||||
Cash dividends declared per common
share
|
$ | - | $ | - | $ | - | $ | 0.09 | $ | 0.12 | ||||||||||
Balance
Sheet Data (at year end):
|
||||||||||||||||||||
Total
assets
|
$ | 387,596 | $ | 348,140 | $ | 322,364 | $ | 347,868 | $ | 363,898 | ||||||||||
Long-term debt
|
$ | - | (1) | $ | 12,925 | (2) | $ | 74,836 | $ | 83,925 | $ | 84,600 |
(1)
|
Excludes
$8.7 million of debt which is classified as current. See Note 8
to the Consolidated Financial Statements for further
information.
|
(2)
|
Excludes
$62.5 million of debt which is classified as current. See Note
8 to the Consolidated Financial Statements for further
information.
|
(3)
|
Includes
the February 2004 acquisition of Waterlink Specialty
Products.
|
(4)
|
Includes
the gain from insurance settlement and the goodwill impairment charge of
$8.1 million and $6.9 million, respectively. See Notes 2 and 6
to the Consolidated Financial Statements for further
information.
|
(5)
|
Includes
the gain on AST Settlement of $9.3 million. See Note 17 to the
Consolidated Financial Statements for further
information.
|
Due
in
|
||||||||||||||||||||||||||||
(Thousands)
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
Total
|
|||||||||||||||||||||
Short-term
debt
|
$ | 1,605 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,605 | ||||||||||||||
Current
portion of long-term debt*
|
2,925 | - | 5,851 | - | - | - | 8,776 | |||||||||||||||||||||
Interest
on Notes
|
325 | 325 | 190 | - | - | - | 840 | |||||||||||||||||||||
Operating
leases
|
5,727 | 5,097 | 4,515 | 4,247 | 3,765 | 7,783 | 31,134 | |||||||||||||||||||||
Unconditional
purchase
obligations**
|
26,175 | 25,600 | 23,318 | 1,575 | 1,575 | 263 | 78,506 | |||||||||||||||||||||
Total contractual
cash
obligations
|
$ | 36,757 | $ | 31,022 | $ | 33,874 | $ | 5,822 | $ | 5,340 | $ | 8,046 | $ | 120,861 |
Hypothetical
Rate
|
||||||||||||||||
Increase
(Decrease)
|
||||||||||||||||
U.S.
Plans
|
European
Plans
|
|||||||||||||||
(Thousands)
|
(1%)
|
1%
|
(1%)
|
1%
|
||||||||||||
Discount
rate
|
||||||||||||||||
Pension
liabilities at December 31, 2008
|
$ | 11,622 | $ | (10,136 | ) | $ | 5,429 | $ | (4,350 | ) | ||||||
Pension
Costs for the year ended December 31, 2008
|
$ | 401 | $ | (788 | ) | $ | 370 | $ | (289 | ) | ||||||
Indexation
|
||||||||||||||||
Pension
liabilities at December 31, 2008
|
$ | - | $ | - | $ | (690 | ) | $ | 759 | |||||||
Pension
Costs for the year ended December 31, 2008
|
$ | - | $ | - | $ | (54 | ) | $ | 78 | |||||||
Expected
return on plan assets
|
||||||||||||||||
Pension
costs for the year ended December 31, 2008
|
$ | 674 | $ | (674 | ) | $ | 246 | $ | (246 | ) | ||||||
Compensation
|
||||||||||||||||
$ | (847 | ) | $ | 866 | $ | (1,524 | ) | $ | 1,718 | |||||||
Pension
costs for the year ended December 31, 2008
|
$ | (188 | ) | $ | 196 | $ | (256 | ) | $ | 320 |
Year Ended December 31
|
||||||||||||
(Dollars in thousands except per share
data)
|
2008
|
2007
|
2006
|
|||||||||
Net
sales
|
$ | 390,066 | $ | 341,508 | $ | 306,770 | ||||||
Net
sales to related parties
|
10,204 | 9,616 | 9,352 | |||||||||
Total
|
400,270 | 351,124 | 316,122 | |||||||||
Cost
of products sold (excluding depreciation)
|
266,885 | 242,273 | 236,673 | |||||||||
Depreciation
and amortization
|
16,674 | 17,248 | 18,933 | |||||||||
Selling,
general and administrative expenses
|
64,149 | 61,348 | 62,010 | |||||||||
Research
and development expenses
|
4,129 | 3,699 | 4,248 | |||||||||
Gain
on AST settlement (Note 17)
|
(9,250 | ) | - | - | ||||||||
Gain
from insurance settlement (Note 2)
|
- | - | (8,072 | ) | ||||||||
Goodwill
impairment charge (Note 6)
|
- | - | 6,940 | |||||||||
|
342,587 | 324,568 | 320,732 | |||||||||
Income
(loss) from operations
|
57,683 | 26,556 | (4,610 | ) | ||||||||
Interest
income
|
1,504 | 1,695 | 822 | |||||||||
Interest
expense
|
(3,673 | ) | (5,508 | ) | (5,977 | ) | ||||||
Other
expense – net
|
(2,703 | ) | (1,441 | ) | (2,209 | ) | ||||||
Income
(loss) from continuing operations before income taxes and equity in income
of equity investments
|
52,811 | 21,302 | (11,974 | ) | ||||||||
Income
tax provision (benefit) (Note 13)
|
18,101 | 7,826 | (2,676 | ) | ||||||||
Income
(loss) from continuing operations before equity in income of equity
investments
|
34,710 | 13,476 | (9,298 | ) | ||||||||
Equity
in income of equity investments, net
|
854 | 1,977 | 286 | |||||||||
Income
(loss) from continuing operations
|
35,564 | 15,453 | (9,012 | ) | ||||||||
Income
(loss) from discontinued operations, net (Note 3)
|
2,793 | (166 | ) | 1,214 | ||||||||
Net
income (loss)
|
38,357 | 15,287 | (7,798 | ) | ||||||||
Other
comprehensive (loss) income, net of tax (benefit)provision of
$(9,507),$3,449, and $2,752, respectively
|
(23,458 | ) | 6,703 | 9,238 | ||||||||
Comprehensive
income
|
$ | 14,899 | $ | 21,990 | $ | 1,440 | ||||||
Basic
income (loss) from continuing operations per common share
|
$ | .80 | $ | .39 | $ | (.23 | ) | |||||
|
||||||||||||
Income
from discontinued operations per common share
|
$ | .06 | $ | - | $ | .03 | ||||||
Basic
net income (loss) per common share
|
$ | .86 | $ | .39 | $ | (.20 | ) | |||||
Diluted
income (loss) from continuing operations per common share
|
$ | .67 | $ | .31 | $ | (.23 | ) | |||||
|
||||||||||||
Income
from discontinued operations per common share
|
$ | .05 | $ | - | $ | .03 | ||||||
Diluted
net income (loss) per common share
|
$ | .72 | $ | .31 | $ | (.20 | ) | |||||
Weighted
average shares outstanding, in thousands
|
||||||||||||
Basic
|
44,679 | 39,788 | 39,927 | |||||||||
Diluted
|
53,385 | 50,557 | 39,927 |
December 31
|
||||||||
(Dollars in thousands)
|
2008
|
2007
|
||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 16,750 | $ | 30,304 | ||||
Receivables,
net of allowance for losses of $1,596 and $2,834
|
62,300 | 55,195 | ||||||
Receivables
from related parties
|
2,215 | 2,353 | ||||||
Revenue
recognized in excess of billings on uncompleted contracts
|
8,870 | 7,698 | ||||||
Inventories
|
93,725 | 81,280 | ||||||
Deferred
income taxes – current
|
9,241 | 9,246 | ||||||
Other
current assets
|
7,821 | 3,602 | ||||||
Total
current assets
|
200,922 | 189,678 | ||||||
Property,
plant and equipment, net
|
122,960 | 105,512 | ||||||
Equity
investments
|
11,747 | 8,593 | ||||||
Intangibles,
net
|
5,930 | 7,760 | ||||||
Goodwill
|
26,340 | 27,845 | ||||||
Deferred
income taxes – long-term
|
13,129 | 6,419 | ||||||
Other
assets
|
6,568 | 2,333 | ||||||
Total
assets
|
$ | 387,596 | $ | 348,140 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued liabilities
|
$ | 39,647 | $ | 39,436 | ||||
Billings
in excess of revenue recognized on uncompleted contracts
|
4,639 | 3,727 | ||||||
Accrued
interest
|
140 | 1,461 | ||||||
Payroll
and benefits payable
|
10,522 | 9,182 | ||||||
Accrued
income taxes
|
1,088 | 1,944 | ||||||
Short-term
debt
|
1,605 | 1,504 | ||||||
Current
portion of long-term debt
|
8,776 | 62,507 | ||||||
Total
current liabilities
|
66,417 | 119,761 | ||||||
Long-term
debt
|
- | 12,925 | ||||||
Deferred
income taxes – long-term
|
242 | 1,361 | ||||||
Accrued
pension and other liabilities
|
68,199 | 41,844 | ||||||
Total
liabilities
|
134,858 | 175,891 | ||||||
Commitments
and contingencies (Notes 9 and 17)
|
||||||||
Shareholders’
equity:
|
||||||||
Common
shares, $.01 par value, 100,000,000 shares authorized, 56,961,297 and
43,044,318 shares issued
|
570 | 430 | ||||||
Additional
paid-in capital
|
144,040 | 77,299 | ||||||
Retained
earnings
|
143,193 | 104,936 | ||||||
Accumulated
other comprehensive (loss) income
|
(6,450 | ) | 17,008 | |||||
281,353 | 199,673 | |||||||
Treasury
stock, at cost, 2,902,264 and 2,827,301 shares
|
(28,615 | ) | (27,424 | ) | ||||
Total
shareholders’ equity
|
252,738 | 172,249 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 387,596 | $ | 348,140 |
Year Ended December 31
|
||||||||||||
(Dollars in thousands)
|
2008
|
2007
|
2006
|
|||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income (loss)
|
$ | 38,357 | $ | 15,287 | $ | (7,798 | ) | |||||
Adjustments
to reconcile net income (loss) to net cash provided by (used
in) operating activities:
|
||||||||||||
Gain
on insurance settlement
|
- | - | (8,072 | ) | ||||||||
Gain
from divestiture
|
(4,353 | ) | - | (6,719 | ) | |||||||
Depreciation
and amortization
|
16,674 | 17,248 | 18,935 | |||||||||
Non-cash
impairment and restructuring charges
|
- | - | 7,728 | |||||||||
Equity
in income from equity investments
|
(854 | ) | (1,977 | ) | (286 | ) | ||||||
Distributions
received from equity investments
|
526 | 739 | - | |||||||||
Employee
benefit plan provisions
|
2,063 | 3,076 | 3,285 | |||||||||
Stock-based
compensation
|
2,884 | 2,887 | 1,309 | |||||||||
Excess
tax benefit from stock-based compensation
|
(2,578 | ) | - | - | ||||||||
Deferred
income tax expense (benefit)
|
3,347 | 3,196 | (973 | ) | ||||||||
Changes
in assets and liabilities—net of effects from foreign
exchange:
|
||||||||||||
(Increase)
decrease in receivables
|
(9,975 | ) | (1,098 | ) | 3,232 | |||||||
Increase
in inventories
|
(14,931 | ) | (9,559 | ) | (1,508 | ) | ||||||
(Increase)
decrease in revenue in excess of billings on uncompleted contracts and
other current assets
|
(2,074 | ) | 287 | 2,800 | ||||||||
Decrease
in restructuring reserve
|
- | - | (293 | ) | ||||||||
Increase
(decrease) in accounts payable and
accrued liabilities
|
2,610 | 5,390 | (6,631 | ) | ||||||||
Pension
contributions
|
(6,215 | ) | (7,787 | ) | (11,395 | ) | ||||||
Other
items—net
|
89 | 1,724 | 601 | |||||||||
Net
cash provided by (used in) operating activities
|
25,570 | 29,413 | (5,785 | ) | ||||||||
Cash
flows from investing activities
|
||||||||||||
Proceeds
from divestitures
|
- | - | 21,265 | |||||||||
Property,
plant and equipment expenditures
|
(33,006 | ) | (11,789 | ) | (12,855 | ) | ||||||
Proceeds
from insurance settlement for property and equipment
|
- | - | 4,595 | |||||||||
Proceeds
from disposals of property, plant and equipment
|
910 | 513 | 1,205 | |||||||||
Net
cash (used in) provided by investing activities
|
(32,096 | ) | (11,276 | ) | 14,210 | |||||||
Cash
flows from financing activities
|
||||||||||||
Issuance
of debt obligations
|
- | 1,504 | 71,911 | |||||||||
Reductions
of debt obligations
|
(11,000 | ) | - | - | ||||||||
Revolving
credit facility borrowings (repayments),net
|
- | - | (81,000 | ) | ||||||||
Treasury
stock purchased
|
(1,191 | ) | (187 | ) | (108 | ) | ||||||
Common
stock issued
|
5,120 | 3,090 | 464 | |||||||||
Excess
tax benefit from stock-based compensation
|
2,578 | 942 | - | |||||||||
Other
|
(456 | ) | - | - | ||||||||
|
||||||||||||
Net
cash (used in) provided by financing activities
|
(4,949 | ) | 5,349 | (8,733 | ) | |||||||
Effect
of exchange rate changes on cash
|
(2,079 | ) | 1,187 | 493 | ||||||||
(Decrease)
increase in cash and cash equivalents
|
(13,554 | ) | 24,673 | 185 | ||||||||
Cash
and cash equivalents, beginning of year
|
30,304 | 5,631 | 5,446 | |||||||||
Cash
and cash equivalents, end of year
|
$ | 16,750 | $ | 30,304 | $ | 5,631 |
Accumulated
|
||||||||||||||||||||||||||||||||||||
Common
|
Additional
|
Other
|
||||||||||||||||||||||||||||||||||
Shares
|
Common
|
Paid-In
|
Retained
|
Comprehensive
|
Treasury
Stock
|
|||||||||||||||||||||||||||||||
(Dollars
in thousands)
|
Issued
|
Shares
|
Capital
|
Earnings
|
Income
(Loss)
|
Sub-Total
|
Shares
|
Amount
|
Total
|
|||||||||||||||||||||||||||
Balance,
December 31, 2005
|
42,459,733 | $ | 425 | $ | 68,989 | $ | 101,833 | $ | 6,442 | $ | 177,689 | 2,787,258 | $ | (27,129 | ) | $ | 150,560 | |||||||||||||||||||
2006
|
||||||||||||||||||||||||||||||||||||
Net
loss
|
- | - | - | (7,798 | ) | - | (7,798 | ) | - | - | (7,798 | ) | ||||||||||||||||||||||||
Cumulative
effect adjustment due to the adoption of SFAS No. 158, net of
tax
|
- | - | - | - | (5,375 | ) | (5,375 | ) | - | - | (5,375 | ) | ||||||||||||||||||||||||
Employee
and director stock plans
|
90,557 | - | 1,356 | - | - | 1,356 | - | - | 1,356 | |||||||||||||||||||||||||||
Translation
adjustments, net of tax
|
- | - | - | - | 4,644 | 4,644 | - | - | 4,644 | |||||||||||||||||||||||||||
Additional
minimum pension
|
||||||||||||||||||||||||||||||||||||
liability,
net of tax
|
- | - | - | - | 4,790 | 4,790 | - | - | 4,790 | |||||||||||||||||||||||||||
Unrecognized
loss on
|
||||||||||||||||||||||||||||||||||||
derivatives,
net of tax
|
- | - | - | - | (196 | ) | (196 | ) | - | - | (196 | ) | ||||||||||||||||||||||||
Treasury
stock purchased
|
- | - | - | - | - | - | 15,190 | (108 | ) | (108 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2006
|
42,550,290 | $ | 425 | $ | 70,345 | $ | 94,035 | $ | 10,305 | $ | 175,110 | 2,802,448 | $ | (27,237 | ) | $ | 147,873 | |||||||||||||||||||
2007
|
||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | 15,287 | - | 15,287 | - | - | 15,287 | |||||||||||||||||||||||||||
Translation
adjustments, net of tax
|
- | - | - | - | 2,557 | 2,557 | - | - | 2,557 | |||||||||||||||||||||||||||
Unrecognized
gain on derivatives, net of tax
|
- | - | - | - | 498 | 498 | - | - | 498 | |||||||||||||||||||||||||||
Employee
benefit plans, net of tax
|
||||||||||||||||||||||||||||||||||||
(See
Note 12)
|
- | - | - | - | 3,648 | 3,648 | - | - | 3,648 | |||||||||||||||||||||||||||
Cumulative
effect adjustment due to the adoption of FIN 48, (See Note
13)
|
- | - | - | (4,386 | ) | - | (4,386 | ) | - | - | (4,386 | ) | ||||||||||||||||||||||||
Employee
and director stock plans
|
494,028 | 5 | 6,954 | - | - | 6,959 | - | - | 6,959 | |||||||||||||||||||||||||||
Treasury
stock purchased
|
- | - | - | - | - | - | 24,853 | (187 | ) | (187 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2007
|
43,044,318 | $ | 430 | $ | 77,299 | $ | 104,936 | $ | 17,008 | $ | 199,673 | 2,827,301 | $ | (27,424 | ) | $ | 172,249 | |||||||||||||||||||
2008
|
||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | 38,357 | - | 38,357 | - | - | 38,357 | |||||||||||||||||||||||||||
Translation
adjustments, net of tax
|
- | - | - | - | (4,744 | ) | (4,744 | ) | - | - | (4,744 | ) | ||||||||||||||||||||||||
Unrecognized
loss on derivatives, net of tax
|
- | - | - | - | (755 | ) | (755 | ) | - | - | (755 | ) | ||||||||||||||||||||||||
Employee
benefit plans, net of tax
|
||||||||||||||||||||||||||||||||||||
(See
Note 12)
|
- | - | - | - | (17,959 | ) | (17,959 | ) | - | - | (17,959 | ) | ||||||||||||||||||||||||
Employee
and director stock plans
|
950,689 | 10 | 10,794 | - | - | 10,804 | - | - | 10,804 | |||||||||||||||||||||||||||
Conversion
of Notes (See Note 8)
|
12,966,290 | 130 | 55,947 | - | - | 56,077 | - | - | 56,077 | |||||||||||||||||||||||||||
Treasury
stock purchased
|
- | - | - | - | - | - | 74,963 | (1,191 | ) | (1,191) | ||||||||||||||||||||||||||
Other
|
- | - | - | (100 | ) | - | (100 | ) | - | - | (100 | ) | ||||||||||||||||||||||||
Balance,
December 31, 2008
|
56,961,297 | $ | 570 | $ | 144,040 | $ | 143,193 | $ | (6,450 | ) | $ | 281,353 | 2,902,264 | $ | (28,615 | ) | $ | 252,738 |
Charcoal/Liquid
|
Solvent Recovery
|
|||||||||||||||||||||||
Year Ended December 31
|
Year Ended December 31
|
|||||||||||||||||||||||
(Dollars in thousands)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Net
sales
|
$ | - | $ | - | $ | 1,375 | $ | - | $ | - | $ | 2,775 | ||||||||||||
Income
(loss) from operations
|
- | - | (589 | ) | - | - | (161 | ) | ||||||||||||||||
Other
income (expense)-net
|
4,353 | - | 4,715 | - | (302 | ) | 63 | |||||||||||||||||
Income
(loss) before income taxes
|
4,353 | - | 4,126 | - | (302 | ) | (98 | ) | ||||||||||||||||
Provision
(benefit) for income
|
||||||||||||||||||||||||
taxes
|
1,560 | 45 | 2,848 | - | (91 | ) | (34 | ) | ||||||||||||||||
Income
(loss) from discontinued operations
|
$ | 2,793 | $ | 45 | $ | 1,278 | $ | - | $ | (211 | ) | $ | (64 | ) |
December 31
|
||||||||
(Thousands)
|
2008
|
2007
|
||||||
Raw
materials
|
$ | 27,241 | $ | 22,321 | ||||
Finished
goods
|
66,484 | 58,959 | ||||||
Total
|
$ | 93,725 | $ | 81,280 |
December 31
|
||||||||
(Thousands)
|
2008
|
2007
|
||||||
Land
and improvements
|
$ | 12,837 | $ | 13,381 | ||||
Buildings
|
29,789 | 29,361 | ||||||
Machinery,
equipment and customer capital
|
314,014 | 314,453 | ||||||
Computer
hardware and software
|
17,057 | 18,897 | ||||||
Furniture
and vehicles
|
7,737 | 8,274 | ||||||
Construction-in-progress
|
25,699 | 10,045 | ||||||
|
407,133
|
394,411 | ||||||
Less accumulated
depreciation
|
(284,173 | ) | (288,899 | ) | ||||
Net
|
$ | 122,960 | $ | 105,512 |
(Dollars in Thousands)
|
Activated
Carbon and
Service Segment
|
Equipment
Segment
|
Consumer
Segment
|
Total
|
||||||||||||
Balance
as of January 1, 2007
|
$ | 21,056 | $ | 6,381 | $ | 60 | $ | 27,497 | ||||||||
Foreign
currency translation
|
56 | 292 | - | 348 | ||||||||||||
Balance
as of December 31, 2007
|
21,112 | 6,673 | 60 | 27,845 | ||||||||||||
Foreign
currency translation
|
(1,149 | ) | (356 | ) | - | (1,505 | ) | |||||||||
Balance
as of December 31, 2008
|
$ | 19,963 | $ | 6,317 | $ | 60 | $ | 26,340 |
December 31, 2008
|
|||||||||||||||||||
Weighted
|
|||||||||||||||||||
Average
|
Gross
|
Net
|
|||||||||||||||||
Amortization
|
Carrying
|
Foreign
|
Accumulated
|
Carrying
|
|||||||||||||||
Period
|
Amount
|
Exchange
|
Amortization
|
Amount
|
|||||||||||||||
Amortized
Intangible Assets:
|
|||||||||||||||||||
Patents
|
15.4 Years
|
$ | 1,369 | $ | - | $ | (961 | ) | $ | 408 | |||||||||
Customer Relationships
|
17.0 Years
|
9,323 | (256 | ) | (5,678 | ) | 3,389 | ||||||||||||
License Agreement
|
5.0 Years
|
500 | - | (500 | ) | - | |||||||||||||
Product Certification
|
7.9 Years
|
1,682 | - | (903 | ) | 779 | |||||||||||||
Unpatented Technology
|
20.0 Years
|
2,875 | - | (1,521 | ) | 1,354 | |||||||||||||
Total
|
16.0 Years
|
$ | 15,749 | $ | (256 | ) | $ | (9,563 | ) | $ | 5,930 |
December 31, 2007
|
|||||||||||||||||||
Weighted
|
|||||||||||||||||||
Average
|
Gross
|
Net
|
|||||||||||||||||
Amortization
|
Carrying
|
Foreign
|
Accumulated
|
Carrying
|
|||||||||||||||
Period
|
Amount
|
Exchange
|
Amortization
|
Amount
|
|||||||||||||||
Amortized Intangible Assets:
|
|||||||||||||||||||
Patents
|
15.4 Years
|
$ | 1,369 | $ | - | $ | (877 | ) | $ | 492 | |||||||||
Customer Relationships
|
17.0 Years
|
9,323 | 30 | (4,743 | ) | 4,610 | |||||||||||||
License Agreement
|
5.0 Years
|
500 | - | (416 | ) | 84 | |||||||||||||
Product Certification
|
7.9 Years
|
1,682 | - | (625 | ) | 1,057 | |||||||||||||
Unpatented Technology
|
20.0 Years
|
2,875 | - | (1,358 | ) | 1,517 | |||||||||||||
Total
|
16.0 Years
|
$ | 15,749 | $ | 30 | $ | (8,019 | ) | $ | 7,760 |
For the year ending December 31: | ||||
2009
|
$ | 1,299 | ||
2010
|
$ | 1,155 | ||
2011
|
$ | 847 | ||
2012
|
$ | 657 | ||
2013
|
$ | 582 |
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Beginning
Balance
|
$ | 1,123 | $ | 1,133 | $ | 1,028 | ||||||
Payments
and replacement product
|
(471 | ) | (293 | ) | (184 | ) | ||||||
Additions
to warranty reserve for warranties issued
during the period
|
524 | 366 | 476 | |||||||||
Change
in the warranty reserve for pre-existing
warranties
|
(81 | ) | (83 | ) | (187 | ) | ||||||
Ending
Balance
|
$ | 1,095 | $ | 1,123 | $ | 1,133 |
Long-Term
Debt
|
December 31
|
|||||||
(Thousands)
|
2008
|
2007
|
||||||
Convertible
Senior Notes
|
$ | 6,000 | $ | 75,000 | ||||
Industrial
revenue bonds
|
2,925 | 2,925 | ||||||
Total
|
8,925 | 77,925 | ||||||
Less
current portion of long-term debt (net of debt discount)
|
(8,776 | ) | (62,507 | ) | ||||
Less
debt discount
|
(149 | ) | (2,493 | ) | ||||
Net
|
$ | - | $ | 12,925 |
December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Raw
and other materials
|
$ | 31,837 | $ | 22,145 | $ | 28,519 | ||||||
Transportation
|
5,733 | 4,840 | 4,494 | |||||||||
Information
systems and services
|
2,663 | 2,386 | 2,503 | |||||||||
Total
payments
|
$ | 40,233 | $ | 29,371 | $ | 35,516 |
Due in
|
||||||||||||||||||||||||
(Thousands)
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
||||||||||||||||||
Raw
and other materials
|
$ | 22,558 | $ | 21,983 | $ | 21,743 | $ | - | $ | - | $ | - | ||||||||||||
Transportation
|
1,575 | 1,575 | 1,575 | 1,575 | 1,575 | 263 | ||||||||||||||||||
Information
systems and services
|
2,042 | 2,042 | - | - | - | - | ||||||||||||||||||
Total
contractual cash obligations
|
$ | 26,175 | $ | 25,600 | $ | 23,318 | $ | 1,575 | $ | 1,575 | $ | 263 |
Years Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Average
grant date exercise price per share of stock appreciation
rights
|
- | - | $ | 6.19 | ||||||||
Average
grant date exercise price per share of unvested awards –
options
|
$ | 14.41 | $ | 7.89 | $ | 7.55 | ||||||
Dividend
yield
|
.00 | % | .00 | % | .00 | % | ||||||
Expected
volatility
|
35 | % | 33-34 | % | 34-37 | % | ||||||
Risk-free
interest rates
|
2.76 | % | 3.99-4.54 | % | 3.62-5.20 | % | ||||||
Expected
lives of options
|
6 years
|
3-6 years
|
3-6 years
|
|||||||||
Average
grant date fair value per share of stock appreciation
rights
|
- | - | $ | 1.85 | ||||||||
Average
grant date fair value per share of unvested option awards
|
$ | 5.64 | $ | 3.25 | $ | 3.03 |
Weighted-
|
|||||||||||||
Average
|
|||||||||||||
Weighted-
|
Remaining
|
Aggregate
|
|||||||||||
Average
|
Contractual
|
Intrinsic
|
|||||||||||
Exercise
|
Term
|
Value
|
|||||||||||
Shares
|
Price
|
(in years)
|
(in thousands)
|
||||||||||
Outstanding
at beginning of year
|
1,574,525 | $ | 6.69 | ||||||||||
Granted
|
80,625 | 17.45 | |||||||||||
Exercised
|
(420,761 | ) | 6.71 | ||||||||||
Canceled
|
(900 | ) | 7.81 | ||||||||||
Outstanding
at December 31, 2008
|
1,233,489 | $ | 7.38 |
4.91
|
$
|
9,466
|
|||||||
Exercisable
at December 31, 2008
|
1,112,300 | $ | 6.62 |
4.48
|
$
|
8,944
|
Weighted-
|
|||||||||||||
Average
|
|||||||||||||
Weighted-
|
Remaining
|
Aggregate
|
|||||||||||
Average
|
Contractual
|
Intrinsic
|
|||||||||||
Exercise
|
Term
|
Value
|
|||||||||||
Shares
|
Price
|
(in years)
|
(in thousands)
|
||||||||||
Outstanding at
beginning of year
|
464,867 | $ | 7.35 | ||||||||||
Granted
|
- | - | |||||||||||
Exercised
|
(331,175 | ) | 7.30 | ||||||||||
Canceled
|
(6,100 | ) | 15.50 | ||||||||||
Outstanding
at December 31, 2008
|
127,592 | $ | 7.09 |
6.39
|
$
|
965
|
|||||||
Exercisable
at December 31, 2008
|
127,592 | $ | 7.09 |
6.39
|
$
|
965
|
Years Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Dividend
yield
|
.00 | % | .00 | % | .00 | % | ||||||
Expected
volatility
|
35-37 | % | 49-53 | % | 45.6 | % | ||||||
Risk-free
interest rates
|
2.10-3.52 | % | 4.54-5.13 | % | 4.69 | % | ||||||
Performance
period
|
3 years
|
3 years
|
3 years
|
TSR
|
||||||||||||||||
Performance
|
Fair
Value
|
Minimum
|
Target
|
Maximum
|
||||||||||||
Period
|
(in thousands)
|
Shares
|
Shares
|
Shares
|
||||||||||||
2006-2008
|
$ | 784 | - | 64,400 | 128,800 | |||||||||||
2007-2009
|
825 | - | 60,150 | 120,300 | ||||||||||||
2008-2010
|
612 | - | 22,700 | 45,400 |
Performance
Restricted
Stock Awards
|
Restricted
Stock Awards
|
TSR
Performance
Stock Awards
(a)
|
Total
|
Weighted-
Average
Grant Date
Fair Value
(per share)
|
||||||||||||||||
Nonvested
at January 1, 2008
|
69,600 | 435,766 | 124,550 | 629,916 | $ | 6.10 | ||||||||||||||
Granted
|
- | 72,825 | 22,700 | 95,525 | 16.07 | |||||||||||||||
Vested
|
(69,600 | ) | (204,116 | ) | - | (273,716 | ) | 6.14 | ||||||||||||
Forfeited
or Expired
|
- | (19,424 | ) | - | (19,424 | ) | 5.44 | |||||||||||||
Nonvested
at December 31, 2008
|
- | 285,051 | 147,250 | 432,301 | $ | 8.31 |
2008
|
2007
|
2006
|
||||||||||
Number
of shares granted
|
95,525 | 412,180 | 257,200 | |||||||||
Weighted-average
grant date fair value per share
|
$ | 16.07 | $ | 5.80 | $ | 5.91 |
Performance
Restricted
Stock Awards
|
Restricted
Stock Awards
|
TSR
Performance
Stock Awards
|
Total
|
Weighted-
Average
Grant Date
Fair Value
(per share)
|
||||||||||||||||
Nonvested
at January 1, 2008
|
- | - | - | - | $ | - | ||||||||||||||
Granted
|
- | 21,143 | - | 21,143 | 14.87 | |||||||||||||||
Vested
|
- | - | - | - | - | |||||||||||||||
Forfeited
or Expired
|
- | - | - | - | - | |||||||||||||||
Nonvested
at December 31, 2008
|
- | 21,143 | - | 21,143 | $ | 14.87 |
(Thousands)
|
2008
|
2007
|
||||||
Change
in Projected Benefit Obligations
|
||||||||
Projected
benefit obligations at January 1
|
$ | 76,773 | $ | 79,888 | ||||
Service
cost
|
1,024 | 1,070 | ||||||
Interest
cost
|
4,777 | 4,664 | ||||||
Actuarial
loss (gain)
|
2,884 | (4,623 | ) | |||||
Benefits
paid
|
(3,096 | ) | (2,207 | ) | ||||
Settlement
|
- | (1,754 | ) | |||||
Curtailment
|
(1,039 | ) | (265 | ) | ||||
Projected
benefit obligations at December 31
|
81,323 | 76,773 | ||||||
Change
in Plan Assets
|
||||||||
Fair
value of plan assets at January 1
|
65,752 | 61,784 | ||||||
Actual
return on plan assets
|
(19,522 | ) | 2,516 | |||||
Employer
contributions
|
4,085 | 5,413 | ||||||
Settlement
|
- | (1,754 | ) | |||||
Benefits
paid
|
(3,096 | ) | (2,207 | ) | ||||
Fair
value of plan assets at December 31
|
47,219 | 65,752 | ||||||
Funded
status at December 31
|
$ | (34,104 | ) | $ | (11,021 | ) | ||
Amounts
recognized in the Balance sheet
|
||||||||
Current
liability – Accrued benefit cost
|
$ | (82 | ) | $ | (82 | ) | ||
Noncurrent
liability – Accrued benefit cost
|
(34,022 | ) | (10,939 | ) | ||||
Net
amount recognized
|
$ | (34,104 | ) | $ | (11,021 | ) |
2008
|
2007
|
|||||||
Accumulated
prior service cost
|
$ | 634 | $ | 1,142 | ||||
31,340 | 4,208 | |||||||
Net
amount recognized, before tax effect
|
$ | 31,974 | $ | 5,350 |
2008
|
2007
|
|||||||
Weighted
average actuarial assumptions at December 31:
|
||||||||
Discount
rate
|
6.06 | % | 6.15 | % | ||||
Rate
of increase in compensation levels
|
4.00 | % | 4.00 | % |
Target
|
Percentage of Plan Assets
|
|||||||||||
Allocation
|
at Year End
|
|||||||||||
Asset
Category
|
2009
|
2008
|
2007
|
|||||||||
Equity
securities
|
68.0 | % | 69.9 | % | 74.3 | % | ||||||
Debt
securities
|
30.0 | 30.1 | 25.1 | |||||||||
Other
|
2.0 | - | 0.6 | |||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % |
Year
|
Pension
Benefits (Thousand)
|
|||
Employer
contributions
|
||||
2009
|
$ | 1,070 | ||
Benefit
Payments
|
||||
2009
|
$ | 4,297 | ||
2010
|
4,778 | |||
2011
|
4,898 | |||
2012
|
5,082 | |||
2013
|
4,961 | |||
2014
– 2018
|
30,728 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Service
cost
|
$ | 1,024 | $ | 1,070 | $ | 2,459 | ||||||
Interest
cost
|
4,777 | 4,664 | 4,884 | |||||||||
Expected
return on assets
|
(5,388 | ) | (4,994 | ) | (4,375 | ) | ||||||
Prior
service cost
|
227 | 248 | 303 | |||||||||
Net
amortization
|
384 | 351 | 842 | |||||||||
Settlement
|
- | (122 | ) | - | ||||||||
Curtailment
|
(480 | ) | (265 | ) | 788 | |||||||
Net
periodic pension cost
|
$ | 544 | $ | 952 | $ | 4,901 |
Year Ended December 31
|
||||||||
(Thousands)
|
2008
|
2007
|
||||||
Curtailment
effect
|
$ | (558 | ) | $ | 265 | |||
Settlements
|
- | 122 | ||||||
Current
year actuarial loss (gain)
|
27,793 | (2,410 | ) | |||||
Amortization
of actuarial loss
|
(384 | ) | (351 | ) | ||||
Amortization
of prior service cost
|
(227 | ) | (248 | ) | ||||
Total
recognized in other comprehensive income
|
$ | 26,624 | $ | (2,622 | ) | |||
Total
recognized in net periodic pension cost and other comprehensive
income
|
$ | 27,168 | $ | (1,670 | ) |
Prior
service cost
|
$ | 203 | ||
Net
actuarial loss
|
2,048 | |||
Total
at December 31
|
$ | 2,251 |
2008
|
2007
|
2006
|
||||||||||
Weighted
average actuarial assumptions at December 31:
|
||||||||||||
Discount
rate
|
6.23 | % | 5.93 | % | 5.60 | % | ||||||
Expected
annual return on plan assets
|
8.00 | % | 8.00 | % | 8.25 | % | ||||||
Rate
of increase in compensation levels
|
4.00 | % | 4.00 | % | 4.00 | % |
(Thousands)
|
2008
|
2007
|
||||||
Change in Projected Benefit
Obligations
|
||||||||
Projected
benefit obligations at January 1
|
$ | 36,363 | $ | 36,822 | ||||
Service
cost
|
765 | 783 | ||||||
Interest
cost
|
2,140 | 1,885 | ||||||
Employee
contributions
|
188 | 192 | ||||||
Actuarial
gain
|
(293 | ) | (4,312 | ) | ||||
Benefits
paid
|
(1,311 | ) | (1,519 | ) | ||||
Foreign currency exchange rate
changes
|
(6,920 | ) | 2,512 | |||||
Projected benefit obligations at December
31
|
30,932 | 36,363 | ||||||
Change in Plan
Assets
|
||||||||
Fair
value of plan assets at January 1
|
23,143 | 19,842 | ||||||
Actual
return on plan assets
|
(2,198 | ) | 840 | |||||
Employer
contributions
|
2,130 | 2,374 | ||||||
Employee
contributions
|
188 | 192 | ||||||
Benefits
paid
|
(1,311 | ) | (1,519 | ) | ||||
Foreign currency exchange rate
changes
|
(4,702 | ) | 1,414 | |||||
Fair value of plan assets at December
31
|
17,250 | 23,143 | ||||||
Funded Status at December
31
|
$ | (13,682 | ) | $ | (13,220 | ) | ||
Amounts
recognized in the Balance sheet
|
||||||||
Current
liability – Accrued benefit cost
|
$ | (521 | ) | $ | (541 | ) | ||
Noncurrent liability – Accrued benefit
cost
|
(13,161 | ) | (12,679 | ) | ||||
Net amount recognized
|
$ | (13,682 | ) | $ | (13,220 | ) |
(Thousands)
|
2008
|
2007
|
||||||
Accumulated
net actuarial loss
|
$ | 3,584 | $ | 1,073 | ||||
Accumulated transition
obligation
|
74 | 139 | ||||||
Net amount recognized, before tax
effect
|
$ | 3,658 | $ | 1,212 |
2008
|
2007
|
|||||||
Weighted
average actuarial assumptions at December 31:
|
||||||||
Discount
rate
|
5.69 | % | 5.68 | % | ||||
Rate of increase in compensation
levels
|
4.03 | % | 4.29 | % |
Percent
of Plan Assets
|
||||||||||||
Target Allocation
|
at Year-End
|
|||||||||||
Asset Category
|
2009
|
2008
|
2007
|
|||||||||
Equity
Securities
|
36.7 | % | 33.5 | % | 41.7 | % | ||||||
Debt
Securities
|
48.3 | 50.7 | 42.2 | |||||||||
Other
|
15.0 | 15.8 | 16.1 | |||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % |
Projected
Benefit Obligation
|
Accumulated
Benefit
|
|||||||||||||||
Exceeds
the Fair Value of
|
Obligation
Exceeds the Fair
|
|||||||||||||||
Plan’s Assets
|
Value of Plan’s Assets
|
|||||||||||||||
(Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Projected
benefit obligation
|
$ | 30,932 | $ | 36,363 | $ | 24,169 | $ | 30,393 | ||||||||
Accumulated
benefit obligation
|
$ | 28,272 | $ | 32,524 | $ | 22,706 | $ | 27,611 | ||||||||
Fair value of plan assets
|
$ | 17,250 | $ | 23,143 | $ | 11,658 | $ | 17,562 |
Year
|
Pension Benefits (Thousands)
|
|||
Employer
contributions
|
||||
2009
|
$ | 1,690 | ||
Benefit
Payments
|
||||
2009
|
$ | 1,381 | ||
2010
|
1,355 | |||
2011
|
1,658 | |||
2012
|
1,744 | |||
2013
|
1,387 | |||
2014 – 2018
|
7,354 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Service
cost
|
$ | 765 | $ | 783 | $ | 871 | ||||||
Interest
cost
|
2,140 | 1,885 | 1,560 | |||||||||
Expected
return on assets
|
(1,529 | ) | (1,405 | ) | (1,128 | ) | ||||||
Net amortization
|
83 | 157 | 226 | |||||||||
Net periodic pension cost
|
$ | 1,459 | $ | 1,420 | $ | 1,529 |
Year Ended December 31
|
||||||||
(Thousands)
|
2008
|
2007
|
||||||
Current
year actuarial loss (gain)
|
$ | 3,435 | $ | (3,746 | ) | |||
Amortization
of actuarial loss
|
(29 | ) | (109 | ) | ||||
Amortization
of transition obligation
|
(54 | ) | (48 | ) | ||||
Foreign currency exchange
|
(906 | ) | 196 | |||||
Total recognized in other comprehensive
income
|
$ | 2,446 | $ | (3,707 | ) | |||
Total
recognized in net periodic pension cost and other comprehensive
income
|
$ | 3,905 | $ | (2,287 | ) |
Net
transition obligation
|
$ | 45 | ||
Net actuarial loss
|
108 | |||
Total at December 31
|
$ | 153 |
2008
|
2007
|
2006
|
||||||||||
Weighted
average actuarial assumptions at December 31:
|
||||||||||||
Discount
rate
|
5.63 | % | 4.89 | % | 4.45 | % | ||||||
Expected
annual return on plan assets
|
6.25 | % | 6.45 | % | 6.71 | % | ||||||
Rate of increase in compensation
levels
|
4.08 | % | 3.90 | % | 3.80 | % |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Current
|
||||||||||||
Federal
|
$ | 11,765 | $ | 1,138 | $ | (1,090 | ) | |||||
State
and local
|
829 | (17 | ) | 19 | ||||||||
Foreign
|
3,720 | 3,418 | 801 | |||||||||
16,314 | 4,539 | (270 | ) | |||||||||
Deferred
|
||||||||||||
Federal
|
1,740 | 706 | (1,762 | ) | ||||||||
State
and local
|
398 | 292 | (978 | ) | ||||||||
Foreign
|
(351 | ) | 2,289 | 334 | ||||||||
1,787 | 3,287 | (2,406 | ) | |||||||||
Provision (benefit) for income taxes for
continuing operations
|
$ | 18,101 | $ | 7,826 | $ | (2,676 | ) |
Year Ended December 31
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
U.S.
federal statutory rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
State
income taxes, net of federal income tax benefit
|
1.6 | 1.2 | 5.2 | |||||||||
Non-deductible
goodwill impairment
|
- | - | (17.1 | ) | ||||||||
Tax
rate differential on foreign income
|
(3.2 | ) | 0.1 | (5.9 | ) | |||||||
Extraterritorial
income exclusion
|
- | - | 4.8 | |||||||||
Net
foreign tax credits
|
0.5 | 4.9 | (1.0 | ) | ||||||||
Tax
statute expiration
|
(0.4 | ) | (6.7 | ) | 3.8 | |||||||
Change
in uncertain tax positions
|
1.6 | 7.6 | - | |||||||||
Change
in tax rates
|
- | (5.2 | ) | - | ||||||||
Other – net
|
(0.8 | ) | (0.2 | ) | (2.4 | ) | ||||||
Effective income tax rate for continuing
operations
|
34.3 | % | 36.7 | % | 22.4 | % |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Continuing
operations
|
$ | 18,101 | $ | 7,826 | $ | (2,676 | ) | |||||
Discontinued
operations
|
1,560 | (91 | ) | 2,814 | ||||||||
Other
comprehensive income
|
(9,507 | ) | 3,449 | 2,752 | ||||||||
Cumulative
effect of change in accounting principle
|
- | - | (2,739 | ) | ||||||||
Total
provision for income taxes
|
$ | 10,154 | $ | 11,184 | $ | 151 |
Type (Thousands)
|
Amount
|
Expiration Date
|
||||||
Foreign
tax credits
|
$ | 12,177 | 2009-2018 | |||||
State
tax credits
|
766 |
2027
|
||||||
Operating
loss carryforwards – state*
|
52,492 | 2010-2027 | ||||||
Operating loss carryforwards -
foreign
|
213 |
None
|
December 31
|
||||||||
(Thousands)
|
2008
|
2007
|
||||||
Deferred
tax assets**
|
||||||||
State
net operating loss and credit carryforwards***
|
$ | 15,037 | $ | 13,090 | ||||
Accruals
|
6,932 | 9,340 | ||||||
Inventories
|
5,764 | 4,119 | ||||||
Pensions
|
15,849 | 6,888 | ||||||
Goodwill
and other intangible assets
|
268 | 2,770 | ||||||
Valuation allowance
|
(7,977 | ) | (6,218 | ) | ||||
Total deferred tax assets
|
35,873 | 29,989 | ||||||
Deferred
tax liabilities
|
||||||||
Property,
plant and equipment
|
$ | 11,797 | $ | 10,136 | ||||
U.S.
liability on Belgian net deferred tax assets
|
42 | 1,224 | ||||||
U.S.
liability on German net deferred tax assets
|
- | 2,575 | ||||||
U.S.
liability on deferred foreign income
|
733 | 1,572 | ||||||
Cumulative translation adjustment on undistributed
earnings
|
1,174 | 178 | ||||||
Total deferred tax
liabilities
|
13,746 | 15,685 | ||||||
Net deferred tax asset
|
$ | 22,127 | $ | 14,304 |
Thousands
|
U.S. Foreign
Tax Credits
|
State
Operating Loss
Carryforwards
|
Foreign
Operating Loss
Carryforwards
|
Total
Valuation
Allowance
|
||||||||||||
Balance
as of January 1, 2007
|
$ | 3,477 | $ | 608 | $ | 1,657 | $ | 5,742 | ||||||||
Increase
due to uncertainty in realization of tax benefits
|
2,441 | - | - | 2,441 | ||||||||||||
Decrease
due to expired net operating loss carryforwards
|
- | (37 | ) | (1,657 | ) | (1,694 | ) | |||||||||
Decrease
due to utilization of state net operating loss
carryforwards
|
- | (271 | ) | - | (271 | ) | ||||||||||
Balance
as of December 31, 2007
|
5,918 | 300 | - | 6,218 | ||||||||||||
Increase
due to uncertainty of realization of tax benefit
|
3,943 | - | - | 3,943 | ||||||||||||
Decrease
due to a reduction of tax benefits in current year
|
(1,946 | ) | - | - | (1,946 | ) | ||||||||||
Decrease
due to utilization of state net operating loss
carryforwards
|
- | (238 | ) | - | (238 | ) | ||||||||||
Balance
as of December 31, 2008
|
$ | 7,915 | $ | 62 | $ | - | $ | 7,977 |
Thousands
|
2008
|
2007
|
||||||
Balance
at January 1
|
$ | 11,953 | $ | 9,477 | ||||
Gross
increases for tax positions of prior years
|
1,919 | 124 | ||||||
Gross
decreases for tax positions of prior years
|
(2,100 | ) | (1,187 | ) | ||||
Gross
increases for tax positions of current year
|
809 | 4,476 | ||||||
Lapse
of statute of limitations
|
(332 | ) | (937 | ) | ||||
Balance
at December 31
|
$ | 12,249 | $ | 11,953 |
Jurisdiction
|
Years
|
|
United
States
|
2000, 2003, 2005 – 2008
|
|
Kentucky
|
2004 – 2008
|
|
Canada
|
2004 – 2008
|
|
Pennsylvania
|
2003 – 2008
|
|
Germany
|
2003 – 2008
|
|
UK
|
2002 – 2008
|
|
Belgium
|
1999 – 2008
|
Accumulated
|
||||||||||||||||
Currency
|
Pension
|
Other
|
||||||||||||||
Translation
|
Benefit
|
Comprehensive
|
||||||||||||||
Adjustment
|
Adjustments
|
Other
|
Income (Loss)
|
|||||||||||||
Balance,
January 1, 2006
|
$ | 14,635 | $ | (7,821 | ) | $ | (372 | ) | $ | 6,442 | ||||||
Net
Change
|
4,644 | (585 | ) | (196 | ) | 3,863 | ||||||||||
Balance,
December 31, 2006
|
19,279 | (8,406 | ) | (568 | ) | 10,305 | ||||||||||
Net
Change
|
2,557 | 3,648 | 498 | 6,703 | ||||||||||||
Balance,
December 31, 2007
|
21,836 | (4,758 | ) | (70 | ) | 17,008 | ||||||||||
Net
Change
|
(4,744 | ) | (17,959 | ) | (755 | ) | (23,458 | ) | ||||||||
Balance,
December 31, 2008
|
$ | 17,092 | $ | (22,717 | ) | $ | (825 | ) | $ | (6,450 | ) |
For the Year Ended
|
||||||||||||
(Dollars in thousands, except per share
amounts)
|
2008
|
2007
|
2006
|
|||||||||
Income
(loss) from continuing operations available to common
shareholders
|
$ | 35,564 | $ | 15,453 | $ | (9,012 | ) | |||||
Weighted
Average Shares Outstanding
|
||||||||||||
Basic
|
44,679,169 | 39,788,063 | 39,926,572 | |||||||||
Effect
of Dilutive Securities
|
8,706,256 | 10,769,218 | - | |||||||||
Diluted
|
53,385,425 | 50,557,281 | 39,926,572 | |||||||||
Basic
net income (loss) from continuing operations per common
share
|
$ | .80 | $ | .39 | $ | (.23 | ) | |||||
Diluted
net income (loss) from continuing operations per common
share
|
$ | .67 | $ | .31 | $ | (.23 | ) |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Net
sales
|
||||||||||||
Activated
Carbon and Service
|
$ | 342,326 | $ | 295,608 | $ | 265,279 | ||||||
Equipment
|
47,288 | 41,328 | 37,884 | |||||||||
Consumer
|
10,656 | 14,188 | 12,959 | |||||||||
Consolidated net sales
|
$ | 400,270 | $ | 351,124 | $ | 316,122 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Income
(loss) from continuing operations before amortization and goodwill
impairment charge
|
||||||||||||
Activated
Carbon and Service
|
$ | 53,368 | $ | 28,038 | $ | 8,475 | ||||||
Equipment
|
6,018 | ( 1,715 | ) | (5,748 | ) | |||||||
Consumer
|
(159 | ) | 2,029 | 1,347 | ||||||||
$ | 59,227 | $ | 28,352 | $ | 4,074 |
Goodwill
impairment charge
|
- | - | (6,940 | ) | ||||||||
Amortization
|
(1,544 | ) | (1,796 | ) | (1,744 | ) | ||||||
Interest
income
|
1,504 | 1,695 | 822 | |||||||||
Interest
expense
|
(3,673 | ) | (5,508 | ) | (5,977 | ) | ||||||
Other expense—net
|
(2,703 | ) | (1,441 | ) | (2,209 | ) | ||||||
Consolidated
income (loss) from continuing operations before income taxes and equity in income of equity
investments
|
$ | 52,811 | $ | 21,302 | $ | (11,974 | ) |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Depreciation
|
||||||||||||
Activated
Carbon and Service
|
$ | 13,854 | $ | 14,542 | $ | 16,220 | ||||||
Equipment
|
997 | 628 | 687 | |||||||||
Consumer
|
279 | 282 | 282 | |||||||||
$ | 15,130 | $ | 15,452 | $ | 17,189 | |||||||
Amortization
|
1,544 | 1,796 | 1,744 | |||||||||
Consolidated depreciation and
amortization
|
$ | 16,674 | $ | 17,248 | $ | 18,933 |
December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Total
assets
|
||||||||||||
Activated
Carbon and Service
|
$ | 334,952 | $ | 302,432 | $ | 277,134 | ||||||
Equipment
|
38,914 | 32,046 | 34,031 | |||||||||
Consumer
|
13,730 | 13,662 | 11,199 | |||||||||
Consolidated total assets
|
$ | 387,596 | $ | 348,140 | $ | 322,364 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Property,
plant and equipment expenditures
|
||||||||||||
Activated
Carbon and Service
|
$ | 33,033 | $ | 10,947 | $ | 11,728 | ||||||
Equipment
|
1,294 | 684 | 1,127 | |||||||||
Consumer
|
615 | 158 | - | |||||||||
Consolidated property, plant and equipment
expenditures (¹)
|
$ | 34,942 | $ | 11,789 | $ | 12,855 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Carbon
products
|
$ | 317,940 | $ | 267,934 | $ | 241,974 | ||||||
Capital
equipment
|
35,155 | 31,601 | 28,119 | |||||||||
Equipment
leasing
|
16,020 | 13,943 | 14,789 | |||||||||
Carbon
cloth products
|
12,133 | 11,262 | 8,639 | |||||||||
Spare
parts
|
8,581 | 9,727 | 9,765 | |||||||||
Home
consumer products
|
2,074 | 2,926 | 4,320 | |||||||||
Other services
|
8,367 | 13,731 | 8,516 | |||||||||
Total sales
|
$ | 400,270 | $ | 351,124 | $ | 316,122 |
Year Ended December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Net
sales
|
||||||||||||
United
States
|
$ | 218,864 | $ | 192,843 | $ | 175,649 | ||||||
United
Kingdom
|
25,913 | 28,569 | 26,121 | |||||||||
Canada
|
17,721 | 13,312 | 10,439 | |||||||||
Germany
|
17,111 | 17,056 | 16,039 | |||||||||
France
|
16,562 | 13,953 | 11,249 | |||||||||
Belgium
|
10,888 | 8,738 | 7,860 | |||||||||
Japan
|
10,656 | 10,304 | 9,689 | |||||||||
China
|
9,127 | 3,954 | 2,179 | |||||||||
Netherlands
|
7,336 | 5,192 | 3,813 | |||||||||
Spain
|
6,702 | 5,565 | 5,600 | |||||||||
Mexico
|
5,317 | 4,285 | 5,047 | |||||||||
Switzerland
|
5,286 | 4,492 | 3,985 | |||||||||
Finland
|
3,427 | 2,534 | 2,184 | |||||||||
Italy
|
3,272 | 2,807 | 3,184 | |||||||||
Other
|
42,088 | 37,520 | 33,084 | |||||||||
Consolidated net sales
|
$ | 400,270 | $ | 351,124 | $ | 316,122 |
December 31
|
||||||||||||
(Thousands)
|
2008
|
2007
|
2006
|
|||||||||
Long-lived
assets
|
||||||||||||
United
States
|
$ | 113,528 | $ | 95,142 | $ | 103,256 | ||||||
Belgium
|
25,455 | 25,343 | 21,216 | |||||||||
Japan
|
11,566 | 9,148 | 6,783 | |||||||||
United
Kingdom
|
8,620 | 11,684 | 12,096 | |||||||||
China
|
7,382 | 7,209 | 7,129 | |||||||||
Germany
|
3,963 | 61 | 59 | |||||||||
Canada
|
3,029 | 3,454 | 2,873 | |||||||||
France
|
2 | 2 | 15 | |||||||||
173,545 | 152,043 | 153,427 | ||||||||||
Deferred taxes
|
13,129 | 6,419 | 20,225 | |||||||||
Consolidated long-lived
assets
|
$ | 186,674 | $ | 158,462 | $ | 173,652 |
Condensed Consolidating Statements of Income
(Loss)
|
||||||||||||||||||||
Year ended December 31,
2008
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ | 379,369 | $ | 46,414 | $ | 57,096 | $ | (82,609 | ) | $ | 400,270 | |||||||||
Cost
of products sold
|
266,970 | 36,553 | 45,971 | (82,609 | ) | 266,885 | ||||||||||||||
Depreciation
and amortization
|
14,347 | 1,577 | 750 | - | 16,674 | |||||||||||||||
Selling,
general and administrative expenses
|
55,249 | 4,701 | 4,199 | - | 64,149 | |||||||||||||||
Research
and development expense
|
3,747 | 382 | - | - | 4,129 | |||||||||||||||
Gain
on AST Settlement
|
(9,250 | ) | - | - | - | (9,250 | ) | |||||||||||||
Interest
(income) expense - net
|
16,138 | (13,139 | ) | (830 | ) | - | 2,169 | |||||||||||||
Other
expense – net
|
2,172 | 374 | 157 | - | 2,703 | |||||||||||||||
Provision
for income taxes
|
17,114 | 285 | 702 | - | 18,101 | |||||||||||||||
Results
of affiliates’ operations
|
25,475 | 876 | - | (26,351 | ) | - | ||||||||||||||
Equity
in income of equity investments
|
- | - | 854 | - | 854 | |||||||||||||||
Income
from continuing operations
|
38,357 | 16,557 | 7,001 | (26,351 | ) | 35,564 | ||||||||||||||
Income
from discontinued operations
|
- | - | 2,793 | - | 2,793 | |||||||||||||||
Net
income
|
$ | 38,357 | $ | 16,557 | $ | 9,794 | $ | (26,351 | ) | $ | 38,357 |
Condensed Consolidating Statements of Income
(Loss)
|
||||||||||||||||||||
Year ended December 31,
2007
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ | 306,866 | $ | 46,782 | $ | 49,069 | $ | (51,593 | ) | $ | 351,124 | |||||||||
Cost
of products sold
|
219,088 | 35,439 | 39,339 | (51,593 | ) | 242,273 | ||||||||||||||
Depreciation
and amortization
|
13,885 | 1,098 | 2,265 | - | 17,248 | |||||||||||||||
Selling,
general and administrative expenses
|
52,792 | 4,925 | 3,631 | - | 61,348 | |||||||||||||||
Research
and development expense
|
3,317 | 382 | - | - | 3,699 | |||||||||||||||
Interest
(income) expense - net
|
20,723 | (15,985 | ) | (925 | ) | - | 3,813 | |||||||||||||
Other
(income) expense – net
|
1,298 | 1,351 | (1,208 | ) | - | 1,441 | ||||||||||||||
Provision
for income taxes
|
4,216 | 1,184 | 2,426 | - | 7,826 | |||||||||||||||
Results
of affiliates’ operations
|
23,695 | 41 | - | (23,736 | ) | - | ||||||||||||||
Equity
in income (loss) of equity investments
|
- | - | 1,980 | (3 | ) | 1,977 | ||||||||||||||
Income
(loss) from continuing operations
|
15,242 | 18,429 | 5,521 | (23,739 | ) | 15,453 | ||||||||||||||
Income
(loss) from discontinued operations
|
45 | (211 | ) | - | - | (166 | ) | |||||||||||||
Net
income (loss)
|
$ | 15,287 | $ | 18,218 | $ | 5,521 | $ | (23,739 | ) | $ | 15,287 |
Condensed Consolidating Statements of Income
(Loss)
|
||||||||||||||||||||
Year ended December 31,
2006
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
sales
|
$ | 278,914 | $ | 43,106 | $ | 41,986 | $ | (47,884 | ) | $ | 316,122 | |||||||||
Cost
of products sold
|
214,570 | 35,711 | 34,276 | (47,884 | ) | 236,673 | ||||||||||||||
Depreciation
and amortization
|
15,708 | 1,123 | 2,102 | - | 18,933 | |||||||||||||||
Selling,
general and administrative expenses
|
46,754 | 3,558 | 3,619 | - | 53,931 | |||||||||||||||
Research
and development expense
|
3,890 | 358 | - | - | 4,248 | |||||||||||||||
Restructuring/impairment
charges
|
1,097 | - | 5,850 | - | 6,947 | |||||||||||||||
Interest
(income) expense - net
|
20,579 | (14,684 | ) | (740 | ) | - | 5,155 | |||||||||||||
Other
(income) expense – net
|
1,707 | 1,254 | (752 | ) | - | 2,209 | ||||||||||||||
Benefit
for income taxes
|
(2,271 | ) | (191 | ) | (214 | ) | - | (2,676 | ) | |||||||||||
Results
of affiliates’ operations
|
15,306 | (635 | ) | - | (14,671 | ) | - | |||||||||||||
Equity
in income of equity investments
|
- | - | 283 | 3 | 286 | |||||||||||||||
Income
(loss) from continuing operations
|
(7,814 | ) | 15,342 | (1,872 | ) | (14,668 | ) | (9,012 | ) | |||||||||||
Income
(loss) from discontinued operations
|
16 | (79 | ) | 2,265 | (988 | ) | 1,214 | |||||||||||||
Net
income (loss)
|
$ | (7,798 | ) | $ | 15,263 | $ | 393 | $ | (15,656 | ) | $ | (7,798 | ) |
Condensed Consolidating Balance Sheets
|
||||||||||||||||||||
December 31, 2008
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Cash
and Cash Equivalents
|
$ | 1,598 | $ | 3,067 | $ | 23,351 | $ | (11,266 | ) | $ | 16,750 | |||||||||
Receivables
|
53,709 | 13,443 | 5,547 | (8,184 | ) | 64,515 | ||||||||||||||
Inventories
|
78,517 | 6,509 | 8,638 | 61 | 93,725 | |||||||||||||||
Other
current assets
|
22,282 | 921 | 2,729 | - | 25,932 | |||||||||||||||
Total
current assets
|
156,106 | 23,940 | 40,265 | (19,389 | ) | 200,922 | ||||||||||||||
Intercompany
accounts receivable
|
53,704 | 185,535 | 4,526 | (243,765 | ) | - | ||||||||||||||
Property,
plant, and equipment, net
|
109,348 | 5,872 | 7,740 | - | 122,960 | |||||||||||||||
Intangibles
|
3,506 | 2,424 | - | - | 5,930 | |||||||||||||||
Goodwill
|
16,674 | 7,189 | 2,477 | - | 26,340 | |||||||||||||||
Equity
investments
|
267,730 | 100,202 | 11,566 | (367,751 | ) | 11,747 | ||||||||||||||
Other
assets
|
13,081 | 1,928 | 4,688 | - | 19,697 | |||||||||||||||
Total
assets
|
$ | 620,149 | $ | 327,090 | $ | 71,262 | $ | (630,905 | ) | $ | 387,596 | |||||||||
Short-term
debt
|
$ | - | $ | - | $ | 1,605 | $ | - | $ | 1,605 | ||||||||||
Current
portion of long-term debt
|
8,776 | - | - | - | 8,776 | |||||||||||||||
Accounts
payable
|
36,081 | 15,317 | 2,887 | (9,999 | ) | 44,286 | ||||||||||||||
Other
current liabilities
|
24,529 | 278 | 1,621 | (14,678 | ) | 11,750 | ||||||||||||||
Total
current liabilities
|
69,386 | 15,595 | 6,113 | (24,677 | ) | 66,417 | ||||||||||||||
Intercompany
accounts payable
|
180,197 | 44,717 | 13,623 | (238,537 | ) | - | ||||||||||||||
Long-term
debt
|
- | - | - | - | - | |||||||||||||||
Other
non-current liabilities
|
117,828 | 9,559 | 9,274 | (68,220 | ) | 68,441 | ||||||||||||||
Shareholders'
equity
|
252,738 | 257,219 | 42,252 | (299,471 | ) | 252,738 | ||||||||||||||
Total
liabilities and shareholders' equity
|
$ | 620,149 | $ | 327,090 | $ | 71,262 | $ | (630,905 | ) | $ | 387,596 |
Condensed
Consolidating Balance Sheets
|
||||||||||||||||||||
December 31, 2007
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Cash
and Cash Equivalents
|
$ | 20,802 | $ | 3,683 | $ | 25,930 | $ | (20,111 | ) | $ | 30,304 | |||||||||
Receivables
|
47,184 | 15,259 | 5,004 | (9,899 | ) | 57,548 | ||||||||||||||
Inventories
|
67,501 | 8,221 | 5,525 | 33 | 81,280 | |||||||||||||||
Other
current assets
|
18,015 | 1,334 | 1,197 | - | 20,546 | |||||||||||||||
Total
current assets
|
153,502 | 28,497 | 37,656 | (29,977 | ) | 189,678 | ||||||||||||||
Intercompany
accounts receivable
|
57,071 | 175,462 | 2,138 | (234,671 | ) | - | ||||||||||||||
Property,
plant, and equipment, net
|
90,435 | 7,263 | 7,814 | - | 105,512 | |||||||||||||||
Intangibles
|
4,586 | 3,174 | - | - | 7,760 | |||||||||||||||
Goodwill
|
16,674 | 8,337 | 2,834 | - | 27,845 | |||||||||||||||
Equity
investments
|
246,633 | 102,187 | 9,151 | (349,378 | ) | 8,593 | ||||||||||||||
Other
assets
|
4,908 | 1,313 | 2,531 | - | 8,752 | |||||||||||||||
Total
assets
|
$ | 573,809 | $ | 326,233 | $ | 62,124 | $ | (614,026 | ) | $ | 348,140 | |||||||||
Short-term
debt
|
$ | - | $ | - | $ | 1,504 | $ | - | $ | 1,504 | ||||||||||
Current
portion of long-term debt
|
62,507 | - | - | - | 62,507 | |||||||||||||||
Accounts
payable
|
33,424 | 19,914 | 3,417 | (13,592 | ) | 43,163 | ||||||||||||||
Other
current liabilities
|
33,219 | 299 | 2,592 | (23,523 | ) | 12,587 | ||||||||||||||
Total
current liabilities
|
129,150 | 20,213 | 7,513 | (37,115 | ) | 119,761 | ||||||||||||||
Intercompany
accounts payable
|
168,342 | 48,144 | 11,079 | (227,565 | ) | - | ||||||||||||||
Long-term
debt
|
12,925 | - | - | - | 12,925 | |||||||||||||||
Other
non-current liabilities
|
91,143 | 8,782 | 11,350 | (68,070 | ) | 43,205 | ||||||||||||||
Shareholders'
equity
|
172,249 | 249,094 | 32,182 | (281,276 | ) | 172,249 | ||||||||||||||
Total
liabilities and shareholders' equity
|
$ | 573,809 | $ | 326,233 | $ | 62,124 | $ | (614,026 | ) | $ | 348,140 |
Condensed Consolidating Statements of Cash Flows
|
||||||||||||||||||||
Year ended December 31, 2008
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
cash provided by operating activities
|
$ | 12,729 | $ | 12,988 | $ | 31 | $ | (178 | ) | $ | 25,570 | |||||||||
Investing
activities:
|
||||||||||||||||||||
Property,
plant and equipment expenditures
|
(31,577 | ) | (1,045 | ) | (384 | ) | - | (33,006 | ) | |||||||||||
Investment
from (in) affiliates
|
- | 1,092 | (1,092 | ) | - | - | ||||||||||||||
Other
|
547 | 363 | - | - | 910 | |||||||||||||||
Net
cash (used in) provided by investing activities
|
(31,030 | ) | 410 | (1,476 | ) | - | (32,096 | ) | ||||||||||||
Financing
activities:
|
||||||||||||||||||||
Reductions
of debt obligations
|
(19,845 | ) | - | - | 8,845 | (11,000 | ) | |||||||||||||
Intercompany
and equity transactions
|
15,201 | (11,770 | ) | (3,431 | ) | - | - | |||||||||||||
Excess
Tax benefit for stock-based compensation
|
2,578 | - | - | - | 2,578 | |||||||||||||||
Other
|
3,473 | - | - | - | 3,473 | |||||||||||||||
Net
cash provided by (used in) financing activities
|
1,407 | (11,770 | ) | (3,431 | ) | 8,845 | (4,949 | ) | ||||||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(2,311 | ) | (2,243 | ) | 2,297 | 178 | (2,079 | ) | ||||||||||||
(Decrease)
increase in cash and cash equivalents
|
(19,205 | ) | (615 | ) | (2,579 | ) | 8,845 | (13,554 | ) | |||||||||||
Cash
and cash equivalents, beginning of year
|
20,802 | 3,683 | 25,930 | (20,111 | ) | 30,304 | ||||||||||||||
Cash
and cash equivalents, end of year
|
$ | 1,597 | $ | 3,068 | $ | 23,351 | $ | (11,266 | ) | $ | 16,750 |
Condensed Consolidating Statements of Cash Flows
|
||||||||||||||||||||
Year ended December 31, 2007
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
cash provided by operating activities
|
$ | 7,511 | $ | 18,090 | $ | 4,116 | $ | (304 | ) | $ | 29,413 | |||||||||
Investing
activities:
|
||||||||||||||||||||
Property,
plant and equipment expenditures
|
(10,408 | ) | (1,045 | ) | (336 | ) | - | (11,789 | ) | |||||||||||
Investment
from (in) affiliates
|
- | (136 | ) | 136 | - | - | ||||||||||||||
Other
|
318 | - | 195 | - | 513 | |||||||||||||||
Net
cash used in investing activities
|
(10,090 | ) | (1,181 | ) | (5 | ) | - | (11,276 | ) | |||||||||||
Financing
activities:
|
||||||||||||||||||||
Net
borrowings (repayments)
|
4,579 | - | 1,498 | (4,573 | ) | 1,504 | ||||||||||||||
Intercompany
and equity transactions
|
19,135 | (18,493 | ) | (1,536 | ) | 894 | - | |||||||||||||
Other
|
3,845 | - | - | - | 3,845 | |||||||||||||||
Net
cash provided by (used in) financing activities
|
27,559 | (18,493 | ) | (38 | ) | (3,679 | ) | 5,349 | ||||||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(4,178 | ) | 2,760 | 2,301 | 304 | 1,187 | ||||||||||||||
Increase
(decrease) in cash and cash equivalents
|
20,802 | 1,176 | 6,374 | (3,679 | ) | 24,673 | ||||||||||||||
Cash
and cash equivalents, beginning of year
|
- | 2,507 | 19,556 | (16,432 | ) | 5,631 | ||||||||||||||
Cash
and cash equivalents, end of year
|
$ | 20,802 | $ | 3,683 | $ | 25,930 | $ | (20,111 | ) | $ | 30,304 |
Condensed
Consolidating Statements of Cash Flows
|
||||||||||||||||||||
Year ended December 31,
2006
|
||||||||||||||||||||
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Consolidating
and
Eliminating
Entries
|
Consolidated
|
||||||||||||||||
Net
cash (used in) provided by operating activities
|
$ | (19,366 | ) | $ | 16,235 | $ | (1,865 | ) | $ | (789 | ) | $ | (5,785 | ) | ||||||
Investing
activities:
|
||||||||||||||||||||
Proceeds
from insurance settlement for property and equipment
|
4,595 | - | - | - | 4,595 | |||||||||||||||
Proceeds
from divestitures
|
830 | - | 20,435 | - | 21,265 | |||||||||||||||
Property,
plant and equipment expenditures
|
(12,005 | ) | (223 | ) | (627 | ) | - | (12,855 | ) | |||||||||||
Investment
from (in) affiliates
|
11,217 | (1,284 | ) | (9,933 | ) | - | - | |||||||||||||
Other
|
1,203 | - | 2 | - | 1,205 | |||||||||||||||
Net
cash provided by (used in) investing activities
|
5,840 | (1,507 | ) | 9,877 | - | 14,210 | ||||||||||||||
Financing
activities:
|
||||||||||||||||||||
Net
borrowings (repayments)
|
(4,069 | ) | (607 | ) | 5 | (4,418 | ) | (9,089 | ) | |||||||||||
Intercompany
and equity transactions
|
13,588 | (16,719 | ) | 4,025 | (894 | ) | - | |||||||||||||
Other
|
356 | 30 | - | (30 | ) | 356 | ||||||||||||||
Net
cash provided by (used in) financing activities
|
9,875 | (17,296 | ) | 4,030 | (5,342 | ) | (8,733 | ) | ||||||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
602 | 1,394 | (2,322 | ) | 819 | 493 | ||||||||||||||
(Decrease)
increase in cash and cash equivalents
|
(3,049 | ) | (1,174 | ) | 9,720 | (5,312 | ) | 185 | ||||||||||||
Cash
and cash equivalents, beginning of year
|
3,049 | 3,681 | 9,836 | (11,120 | ) | 5,446 | ||||||||||||||
Cash
and cash equivalents, end of year
|
$ | - | $ | 2,507 | $ | 19,556 | $ | (16,432 | ) | $ | 5,631 |
|
·
|
Level 1 -
|
Quoted
prices (unadjusted) in active markets for identical assets or
liabilities;
|
|
·
|
Level 2
-
|
Inputs,
other than the quoted prices in active markets, that are observable either
directly or indirectly; and
|
|
·
|
Level 3
-
|
Unobservable
inputs that reflect the reporting entity’s own
assumptions.
|
(Thousands)
|
Level
1
|
Level
2
|
Level
3
|
|||||||||
Assets
|
||||||||||||
Natural
gas derivatives
|
$ | - | $ | - | $ | - | ||||||
Financial
derivatives
|
- | 1,617 | - | |||||||||
Liabilities
|
||||||||||||
Natural
gas derivatives
|
$ | - | $ | 2,234 | $ | - | ||||||
Financial
derivatives
|
- | 73 | - |
2008
|
2007
|
|||||||||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||||||||||||||
(Thousands except per share data)
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||||||||||
Net
sales
|
$ | 90,331 | $ | 108,476 | $ | 99,069 | $ | 102,394 | $ | 83,030 | $ | 88,428 | $ | 84,861 | $ | 94,805 | ||||||||||||||||
Gross
profit from continuing operations
|
$ | 28,566 | $ | 37,455 | $ | 33,608 | $ | 33,756 | $ | 24,606 | $ | 28,872 | $ | 27,219 | $ | 28,154 | ||||||||||||||||
Net
income from continuing
|
||||||||||||||||||||||||||||||||
operations
|
$ | 10,874 | $ | 9,817 | $ | 6,536 | $ | 8,337 | $ | 2,034 | $ | 4,462 | $ | 5,044 | $ | 3,913 | ||||||||||||||||
Income
(loss) from discontinued operations
|
$ | - | $ | 3,447 | $ | (211 | ) | $ | (443 | ) | $ | - | $ | - | $ | (96 | ) | $ | (70 | ) | ||||||||||||
Net
income
|
$ | 10,874 | $ | 13,264 | $ | 6,325 | $ | 7,894 | $ | 2,034 | $ | 4,462 | $ | 4,948 | $ | 3,843 | ||||||||||||||||
Common
Stock Data:
|
||||||||||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||||||||||
Income
from continuing
|
||||||||||||||||||||||||||||||||
operations
per common share
|
$ | 0.27 | $ | 0.24 | $ | 0.15 | $ | 0.16 | $ | 0.05 | $ | 0.11 | $ | 0.12 | $ | 0.10 | ||||||||||||||||
Income
(loss) from discontinued
|
||||||||||||||||||||||||||||||||
operations
per common share
|
$ | - | $ | 0.09 | $ | - | $ | (0.01 | ) | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Net
income per common share
|
$ | 0.27 | $ | 0.33 | $ | 0.15 | $ | 0.15 | $ | 0.05 | $ | 0.11 | $ | 0.12 | $ | 0.10 | ||||||||||||||||
Diluted:
|
||||||||||||||||||||||||||||||||
Income
from continuing
|
||||||||||||||||||||||||||||||||
operations
per common share
|
$ | 0.21 | $ | 0.19 | $ | 0.12 | $ | 0.15 | $ | 0.05 | $ | 0.09 | $ | 0.10 | $ | 0.08 | ||||||||||||||||
Income
(loss) from discontinued
|
||||||||||||||||||||||||||||||||
operations
per common share
|
$ | - | $ | 0.06 | $ | - | $ | (0.01 | ) | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Net
income per common share
|
$ | 0.21 | $ | 0.25 | $ | 0.12 | $ | 0.14 | $ | 0.05 | $ | 0.09 | $ | 0.10 | $ | 0.08 | ||||||||||||||||
Average
common shares outstanding
|
||||||||||||||||||||||||||||||||
Basic
|
40,240 | 40,558 | 44,625 | 53,247 | 40,225 | 40,291 | 40,357 | 39,959 | ||||||||||||||||||||||||
Diluted
|
51,756 | 52,025 | 53,798 | 55,662 | 42,661 | 47,745 | 50,358 | 51,102 |
Plan
category
|
Number
of
securities
to be
issued
upon
exercise
of
outstanding
options,
warrants
and
rights
(a)
|
Weighted-average
exercise
price of
outstanding
options,
warrants
and
rights
(b)
|
Number
of
securities
remaining
available
for future
issuance
under
equity
compensation
plans
(excluding
securities
reflected
in
column (a))
(c)
|
|||||||||
Equity
compensation
plans
approved
by
security
holders
|
1,361,081 | $ | 7.35 | 1,978,857 | ||||||||
Equity
compensation
plans not
approved
by
security
holders
|
- | - | 49,490 | (1) | ||||||||
Total
|
1,361,081 | $ | 7.35 | 2,028,347 |
Page
|
|
Report
of Management
|
60
|
Internal
Controls– Report of Independent Registered Public Accounting
Firm
|
62
|
Financial
Statements – Report of Independent Registered Public Accounting
Firms
|
63
|
Consolidated
Statements of Income (Loss) and Comprehensive Income for the
Years
|
|
Ended
December 31, 2008, 2007 and 2006
|
65
|
Consolidated
Balance Sheets as of December 31, 2008 and 2007
|
66
|
Consolidated
Statements of Cash Flows for the Years Ended
|
|
December
31, 2008, 2007 and 2006
|
67
|
Consolidated
Statements of Shareholders’ Equity for Years Ended
|
|
December
31, 2008, 2007 and 2006
|
68
|
Notes
to the Consolidated Financial Statements
|
69
|
|
B.
|
Financial
Statements Schedule for the years ended December 31, 2008, 2007 and
2006.
|
Balance
at
|
Additions
|
Deductions
|
Balance
|
|||||||||||||
Beginning
|
Charged
to Costs
|
Returns
and
|
at
End
|
|||||||||||||
Description
|
of Year
|
and Expenses
|
Write-Offs
|
of Year
|
||||||||||||
Year
ended December 31, 2008
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ | 2,834 | $ | 199 | $ | (1,437 | ) | $ | 1,596 | |||||||
Year
ended December 31, 2007
|
||||||||||||||||
Allowance
for doubtful accounts
|
1,981 | 1,239 | (386 | ) | 2,834 | |||||||||||
Year
ended December 31, 2006
|
||||||||||||||||
Allowance
for doubtful accounts
|
2,172 | 902 | (1,093 | ) | 1,981 |
Balance
at
|
Additions
|
Balance
|
||||||||||||||
Beginning
|
Charged
to Costs
|
at
End
|
||||||||||||||
Description
|
of Year
|
and Expenses
|
Reductions
|
of Year
|
||||||||||||
Year
ended December 31, 2008
|
||||||||||||||||
Income
tax valuation allowance
|
$ | 6,218 | $ | 3,943 | $ | (2,184 | ) | $ | 7,977 | |||||||
Year
ended December 31, 2007
|
||||||||||||||||
Income
tax valuation allowance
|
5,742 | 2,441 | (1,965 | ) | 6,218 | |||||||||||
Year
ended December 31, 2006
|
||||||||||||||||
Income
tax valuation allowance
|
3,382 | 2,360 | - | 5,742 |
Page
|
||
3.1
|
Amended
Certificate of Incorporation
|
(a)
|
3.2
|
Amended
and Restated By-laws of the Company
|
Filed herewith
|
4.1
|
Amended
Rights Agreement, dated as of January 27, 2005
|
(b)
|
4.2
|
Indenture,
dated August 18, 2006
|
(c)
|
4.3
|
Registration
Rights Agreement, dated August 18, 2006
|
(d)
|
10.1*
|
Calgon
Carbon Corporation 2008 Equity Incentive Plan
|
(e)
|
10.4*
|
1997
Directors’ Fee Plan
|
(f)
|
10.5*
|
Employment
agreement between Calgon Carbon Corporation and executive officers. The
form of employment agreement has been entered into with the following
executive officer, C. H. S. (Kees) Majoor
|
(g)
|
10.6
|
Calgon
Carbon Corporation Senior Credit Facility
|
(h)
|
10.7
|
Amendment
No. 1 to Calgon Carbon Corporation Senior Credit Facility
|
(i)
|
10.8
|
Purchase
Agreement among Waterlink, Inc. and Barnebey Sutcliffe Corporation
and
Calgon
Carbon Corporation
|
(j)
|
10.9*
|
Employment
agreement between Calgon Carbon Corporation and executive officers. The
form of employment agreement has been entered into with the following
executive officers, Leroy M. Ball, Gail A. Gerono, Robert P.
O’Brien, and Dennis M. Sheedy
|
(k)
|
10.10*
|
Employment
agreement between Calgon Carbon Corporation and John S.
Stanik
|
(l)
|
10.11
|
First
Amendment to Credit Agreement, as amended on February 5,
2007
|
(m)
|
10.12
|
Second
Amendment to Credit Agreement, as amended on May 29, 2007
|
(n)
|
10.13
|
Third
Amendment to Credit Agreement, as amended on August 14,
2008
|
(o)
|
10.14
|
Fourth
Amendment to Credit Agreement, as amended on September 30,
2008
|
(p)
|
14.1
|
Code
of Business Conduct and Ethics
|
Filed
herewith
|
21.0
|
The
wholly owned subsidiaries of the Company at December 31, 2008 are
Chemviron Carbon GmbH, a German corporation; Calgon Carbon Canada, Inc., a
Canadian corporation; Chemviron Carbon Ltd., a United Kingdom corporation;
Calgon Carbon Investments, Inc., a Delaware corporation; Solarchem
Environmental Systems, Inc., a Nevada corporation; Charcoal Cloth
(International) Limited, a United Kingdom corporation; Charcoal Cloth
Limited, a United Kingdom corporation; Waterlink (UK) Holdings
Ltd., a United Kingdom corporation, Sutcliffe Croftshaw Ltd., a United
Kingdom corporation; Sutcliffe Speakman Ltd., a United Kingdom
corporation; Sutcliffe Speakman Carbons Ltd., a United Kingdom
corporation; Lakeland Processing Ltd., a United Kingdom corporation;
Sutcliffe Speakmanco 5 Ltd., a United Kingdom corporation; Advanced
Separation Technologies Incorporated, a Florida corporation; Calgon Carbon
(Tianjin) Co., Ltd., a Chinese corporation; Datong Carbon Corporation, a
Chinese corporation; Calgon Carbon Asia PTE Ltd., a Singapore corporation;
BSC Columbus, LLC, a Delaware limited liability company; CCC Columbus,
LLC, a Delaware limited liability company; and CCC Distribution, a
Delaware limited liability company. In addition, the Company
owns 49% of Calgon Mitsubishi Chemical Corporation, a Japanese corporation
and 20% of Calgon Carbon (Thailand) Company Ltd., a Thailand
corporation
|
Filed
herewith
|
23.1
|
Consent
of Independent Registered Public Accounting Firm
|
Filed
herewith
|
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
|
Note:
|
The
Registrant hereby undertakes to furnish, upon request of the Commission,
copies of all instruments defining the rights of holders of long-term debt
of the Registrant and its consolidated subsidiaries. The total amount of
securities authorized thereunder does not exceed 10% of the total assets
of the Registrant and its subsidiaries on a consolidated
basis.
|
(a)
|
Incorporated
herein by reference to Exhibit 3.1 to the Company's report on Form 10-K
filed for the fiscal year ended December 31, 1990.
|
(b)
|
Incorporated
herein by reference to Exhibit 4.1 of the Company’s report on Form 8-K
dated January 28, 2005.
|
(c)
|
Incorporated
herein by reference to Exhibit 4.1 to the Company’s report on Form 8-K
dated August 18, 2006.
|
(d)
|
Incorporated
herein by reference to Exhibit 4.2 to the Company’s report on Form 8-K
dated August 18, 2006.
|
(e)
|
Incorporated
herein by reference to Exhibit A to the Company’s definitive proxy
statement filed on April 3, 2008.
|
(f)
|
Incorporated
herein by reference to Exhibit 10.4 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2005.
|
(g)
|
Incorporated
herein by reference to Exhibit 10.2 to the Company’s report on Form 10-Q
filed for the fiscal quarter ended March 31, 2005
|
(h)
|
Incorporated
herein by reference to Exhibit 10.1 to the Company’s report on Form 8-K
dated January 31, 2006.
|
(i)
|
Incorporated
herein by reference to Exhibit 10.7 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2005.
|
(j)
|
Incorporated
herein by reference to Exhibit 10.9 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2003.
|
(k)
|
Incorporated
herein by reference to Exhibit 10.9 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2006.
|
(l)
|
Incorporated
herein by reference to Exhibit 10.9 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2006.
|
(m)
|
Incorporated
herein by reference to Exhibit 10.9 to the Company’s report on Form 10-K
filed for the fiscal year ended December 31, 2006.
|
(n)
|
Incorporated
herein by reference to Exhibit 99.1 to the Company’s report on Form 10-Q
filed for the fiscal quarter ended March 31, 2007.
|
(o)
|
Incorporated
herein by reference to Exhibit 10.1 to the Company’s report on Form 8-K
dated August 14, 2008.
|
(p)
|
Incorporated
herein by reference to Exhibit 10.6 to the Company’s report on Form 10-Q
filed for the fiscal quarter ended September 30,
2008.
|
Calgon
Carbon Corporation
|
||
By
|
/s/ JOHN S. STANIK
|
|
John
S. Stanik
|
||
Chairman,
President and Chief Executive Officer
|
||
March
13, 2009
|
Signature
|
Title
|
Date
|
||
/s/ JOHN S. STANIK
|
Chairman,
President and Chief
Executive
Officer
|
March
13, 2009
|
||
John
S. Stanik
|
|
|||
/s/ LEROY M.
BALL
|
Chief
Financial Officer (and Principal
Accounting
Officer)
|
March
13, 2009
|
||
Leroy
M. Ball
|
|
|||
/s/ ROBERT W.
CRUICKSHANK
|
Director
|
March
13, 2009
|
||
Robert
W. Cruickshank
|
||||
/s/ RANDALL S. DEARTH
|
Director
|
March
13, 2009
|
||
Randall
S. Dearth
|
||||
/s/ WILLIAM J. LYONS
|
Director
|
March
13, 2009
|
||
William
J. Lyons
|
||||
/s/ WILLIAM R. NEWLIN
|
Director
|
March
13, 2009
|
||
William
R. Newlin
|
||||
/s/ JULIE S. ROBERTS
|
Director
|
March
13, 2009
|
||
Julie
S. Roberts
|
||||
/s/ TIMOTHY G. RUPERT
|
Director
|
March
13, 2009
|
||
Timothy
G. Rupert
|
||||
/s/ SETH E. SCHOFIELD
|
Director
|
March
13, 2009
|
||
Seth
E. Schofield
|
||||
/s/ ROBERT L. YOHE
|
Director
|
March
13, 2009
|
||
Robert
L. Yohe
|