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): May 20, 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 May 20, 1997, the Registrant released the following information with
respect to its results for the quarter and nine months ended April 30, 1997:
THE CARBIDE/GRAPHITE GROUP, INC. REPORTS EARNINGS OF $0.54 PER SHARE, $0.62 PER
SHARE BEFORE NON-RECURRING CHARGE, IN FISCAL 1997 THIRD QUARTER
Pittsburgh, PA - May 20, 1997 - The Carbide/Graphite Group, Inc. (NASDAQ
NNM: CGGI) today announced results for its fiscal 1997 third quarter ended April
30, 1997. Earnings from continuing operations for the third quarter were $4.7
million, or $0.54 per share, which is equivalent to $0.62 per share before a
non-recurring after-tax charge of $0.7 million for expenses associated with the
retirement of two executives during the quarter. Last year's third quarter
earnings from continuing operations were $4.0 million, or $0.46 per share. For
the nine months ended April 30, 1997, earnings from continuing operations were
$12.9 million, or $1.46 per share, versus $10.3 million, or $1.22 per share, in
last year's comparable period.
Net sales for the quarter ended April 30, 1997 were $74.9 million, an
increase of 15% over a year ago. Graphite electrode product sales increased to
$54.5 million versus $45.1 million a year ago due to increased shipments and
selling prices of graphite electrodes and needle coke. Graphite electrode
shipments during the fiscal 1997 third quarter were 27.6 million pounds compared
to 24.9 million pounds in last year's fiscal third quarter, while electrodes
prices increased 3% during the current quarter. Needle coke shipments during the
fiscal 1997 third quarter were 17.3 thousand tons compared to 10.4 thousand tons
in last year's fiscal third quarter, while needle coke prices increased 13%
during the current quarter. Calcium carbide product sales were $20.4 million in
the fiscal 1997 third quarter versus $20 million last year.
Net sales for the nine months ended April 30, 1997 were $217.7 million, an
increase of 13% over a year ago. Graphite electrode product sales increased to
$157.8 million versus $132.5 million a year ago. Graphite electrode shipments
during the nine months ended April 30, 1997 were 83 million pounds compared to
79 million pounds in the fiscal 1996 comparable period, while needle coke
shipments were 43.7 thousand tons compared to 29.2 thousand tons a year ago.
Calcium carbide product sales were $59.9 million during the nine months ended
April 30, 1997 versus $61 million in the fiscal 1996 comparable period.
During the quarter ended April 30, 1997, the Company generated operating
income of $9.4 million, despite the $1.1 million pre-tax non-recurring charge,
versus $8.0 million in last year's third quarter. Operating income for the nine
months ended April 30, 1997 was $26.2 million versus $23.1 million for the
comparable nine-month period a year ago. Operating income in last year's
nine-month period included a non-recurring $1.0 million favorable utility rate
settlement.
The Company's effective tax rate for the quarter ended April 30, 1997 was
37% versus 28% in the prior year comparable quarter. Last year's effective tax
rate was unusually low due to prior period tax benefits realized in the fiscal
1996 third quarter.
Walter Fowler, Chairman and Chief Executive Officer, commented, "Product
demand within the graphite segment increased during the third quarter with
needle coke shipments up 16% over the preceding quarter and 67% over last year's
third quarter. Graphite electrode shipments were strong during the quarter, up
11% over last year's third quarter and are now up 5% on a year to date basis
over last year. Higher prices also contributed to increased graphite revenues
with needle coke prices up 13% and electrode prices up 3% compared to last
year's third quarter. Compared to the first two quarters of fiscal 1997, the
calcium carbide business operating profit improved as a result of a strong
production quarter with both of our carbide facilities running at capacity for
most of the quarter, and a small increase in sales. Over the next several
quarters, we will continue to focus on our strategy of adding value through
investing in our production facilities, including the completion of our graphite
electrode modernization program and the initial work on the $28 million
Longitudinal graphitizing project announced in April."
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:
<TABLE>
<CAPTION>
The Carbide/Graphite Group, Inc.
(in thousands, except share and per share amounts)
Quarter ended Nine Months ended
April 30, April 30,
-----------------------------------------------------------
1997 1996 1997 1996
-----------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C>
Net sales ..................................... $74,923 $65,174 $217,720 $193,486
Cost of goods sold ............................ 60,644 53,478 178,371 159,930
Selling, general and administrative ........... 3,417 3,119 10,845 9,268
Other compensation ............................ 318 588 1,232 1,474
Early retirement/severance charges (A) ........ 1,100 -- 1,100 --
Other (income) expense ........................ -- 24 -- (253)
-----------------------------------------------------------
Operating income ......................... 9,444 7,965 26,172 23,067
Special financing expenses (B) ................ -- 286 -- 889
Interest expense, net ........................ 1,902 2,148 6,099 6,989
-----------------------------------------------------------
Income before income taxes .............. 7,542 5,531 20,073 15,189
Provision for income taxes ................... 2,794 1,551 7,181 4,857
-----------------------------------------------------------
Income from continuing operations ....... 4,748 3,980 12,892 10,332
Extraordinary loss, net of tax benefit (C) .... -- (67) -- (2,000)
-----------------------------------------------------------
Net Income ........................... $4,748 $3,913 $12,892 $8,332
============================================ --------------
Earnings Per Share Information:
Weighted average common and
common equivalent shares .................. 8,824,924 8,699,653 8,806,969 8,496,116
Income from continuing operations ............. $0.54 $0.46 $1.46 $1.22
Net income .................................... $0.54 $0.45 $1.46 $0.98
</TABLE>
<TABLE>
<CAPTION>
Balance Sheet Summary: April 30, 1997 July 31, 1996 April 30, 1996
--------------------------------------------
(Unaudited, except July 31, 1996 amounts)
<S> <C> <C> <C>
Cash & cash equivalents (D).................... $24,760 $26,724 $28,682
Total assets ................................ 227,835 212,870 205,820
Long-term debt .............................. 81,763 81,763 84,284
Stockholders' equity .......................... 90,661 74,808 69,430
</TABLE>
(A) Represents non-recurring expenses associated with the retirement of
two executives of the Company.
(B) Represents accounting, legal, printing and other fees associated
with the Company's public offerings of its common stock.
(C) Represents premiums paid and the write-off of deferred financing
costs associated with the repurchase of Senior Notes.
(D) 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/ Walter B. Fowler
Walter B. Fowler
Chief Executive Officer
Dated: June 3, 1997
