SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 1997
THE CARBIDE/GRAPHITE GROUP, INC.
Delaware 0-20490 25-1575609
(State of Incorporation) (Commission File Number) (IRS Employer
Identification Code)
One Gateway Center, 19th Floor
Pittsburgh, PA
15222
(Address of principal executive offices)
Registrant's telephone number, including area code:
(412) 562-3700
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Item 1 through Item 4 Not applicable.
Item 5 -- Other Events
On February 13, 1997, the Registrant released the following information
with respect to its results for the quarter and six months ended January 31,
1997:
Pittsburgh, PA - February 13, 1997 - The Carbide/Graphite Group, Inc.
(NASDAQ NNM: CGGI) today announced results for its fiscal 1997 second quarter
ended January 31, 1997. Earnings from continuing operations for the second
quarter were a record $4.6 million, or $0.53 per share, compared with $3.7
million, or $0.43 per share, in the fiscal 1996 second quarter, a 23.3% increase
in earnings per share. Fiscal 1996's second quarter included non-recurring
income which increased last year's results by $0.07 per share. For the six
months ended January 31, 1997, earnings from continuing operations were $8.1
million, or $0.93 per share, compared with $6.4 million, or $0.76 per share, in
the six months ended January 31, 1996, a 22.4% increase.
Net sales for the quarter ended January 31, 1997 were $75.1 million, an
increase of 16.5% over a year ago and a quarterly record for the Company.
Graphite electrode product sales increased to $55.0 million versus $44.1 million
a year ago due to increased shipments and selling prices of graphite electrodes
and needle coke. Graphite electrode shipments during the fiscal 1997 second
quarter were 28.6 million pounds versus 27.6 million pounds in the prior year
comparable quarter, a 3.5% increase. The net price for graphite electrodes in
the fiscal 1997 second quarter increased 7.1% over the prior year comparable
quarter. Calcium carbide product sales were $20.1 million in the fiscal 1997
second quarter versus $20.4 million last year. Calcium carbide shipments were
40.6 thousand tons, a 2.1% decrease from a year ago due to lower pipeline
acetylene demand.
Net sales for the six months ended January 31, 1997 were $142.8 million, an
increase of 11.3% over a year ago. Graphite electrode product sales increased to
$103.3 million versus $87.4 million a year ago. Graphite electrode shipments
during the first half of fiscal 1997 were 55.4 million pounds compared to 54.2
million pounds in fiscal 1996. Calcium carbide product sales were $39.5 million
during the six months ended January 31, 1997 versus $41.0 million in fiscal
1996.
During the quarter ended January 31, 1997, the Company generated operating
income of $9.2 million versus $7.8 million in last year's second quarter. Last
year's operating income included a non-recurring $1.0 million favorable utility
rate settlement. Operating income for the six months ended January 31, 1997 was
$16.7 million versus $15.1 million for the comparable six-month period a year
ago.
Nicholas Kaiser, Chairman and Chief Executive Officer, commented, "The
combination of strong domestic electrode sales in advance of the recent price
increase and increased levels of needle coke production since the August
maintenance turnaround contributed to the record results. Needle coke production
continues to run at levels about 15% higher than last year, and demand for
needle coke and graphite electrodes remains high. We expect graphite electrode
shipments to return to normal levels in the third quarter."
The Carbide/Graphite Group, Inc. is a leading manufacturer of industrial
graphite and calcium carbide products with manufacturing facilities in St.
Marys, Pennsylvania; Niagara Falls, New York; Louisville, Kentucky; Calvert
City, Kentucky; and Seadrift, Texas.
Note: This news release may contain forward looking statements as defined
in the Private Securities Litigation Reform Act of 1995. Actual future results
and trends could differ materially from those set forth in such statements due
to various factors. Such factors include the possibility that increased demand
or prices for the Company's products may not occur or continue, changing
economic and competitive conditions, technological developments, and other risks
and uncertainties, including those detailed in the Company's filings with the
Securities and Exchange Commission.
Details regarding the Company's operating results follow:
(Continue)
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The Carbide/Graphite Group, Inc.
(in thousands, except share and per share amounts)
<TABLE>
<CAPTION>
Quarter ended Six Months ended
January 31, January 31,
----------------------------- -----------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
(Unaudited)
Net sales .................................... $75,081 $64,436 $142,797 $128,312
Cost of goods sold ........................... 61,827 53,235 117,727 106,452
Selling, general and administrative .......... 3,407 2,980 7,428 6,149
Other compensation ........................... 647 361 914 886
Other (income) expense ....................... -- 26 -- (277)
-------------- -------------- -------------- --------------
Operating income ........................ 9,200 7,834 16,728 15,102
Special financing expenses (A) ............... -- -- -- 603
Interest expense, net ....................... 2,092 2,230 4,197 4,841
-------------- -------------- -------------- --------------
Income before income taxes ............. 7,108 5,604 12,531 9,658
Provision for income taxes .................. 2,487 1,911 4,387 3,306
-------------- -------------- -------------- --------------
Income from continuing operations ...... 4,621 3,693 8,144 6,352
Extraordinary loss, net of tax benefit (B) ... -- (1,105) -- (1,933)
============== ============== ============== ==============
Net income ......................... $4,621 $2,588 $8,144 $4,419
============== ============== ============== ==============
Earnings Per Share Information:
Weighted average common and
common equivalent shares ................. 8,797,471 8,661,462 8,789,349 8,400,892
Income from continuing operations ............ $0.53 $0.43 $0.93 $0.76
Net income ................................... $0.53 $0.30 $0.93 $0.53
</TABLE>
<TABLE>
<CAPTION>
January 31, July 31, 1996 January 31,
Balance Sheet Summary: 1997 1996
-------------- -------------- --------------
(Unaudited, except July 31, 1996 amounts)
<S> <C> <C> <C>
Cash & cash equivalents (C)................... $26,724 $26,724 $26,962
Total assets ............................... 219,493 212,870 200,646
Long-term debt ............................. 81,763 81,763 85,245
Stockholders' equity ......................... 85,153 74,808 62,272
</TABLE>
A Represents accounting, legal, printing and other fees associated with
the Company's initial public offering of its common stock.
B Represents premiums paid and the write-off of deferred financing costs
associated with the repurchase of Senior Notes.
C Includes short-term investments.
# # #
Item 6 through Item 8 Not applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the following hereunto duly authorized.
The Carbide/Graphite Group, Inc.
/s/ Nicholas T. Kaiser
Nicholas T. Kaiser
Chief Executive Officer
Dated: February 19, 1997
