BOOTS & COOTS ANNOUCES RESULTS FOR THE FIRST SIX MONTHS OF 2005
Company Continues to Grow Prevention Business: Up 67 Percent Year-Over-Year
HOUSTON, August 10, 2005 — Boots & Coots International Well Control, Inc. (Amex: WEL), a global prevention, emergency response and restoration company for the oil and gas industry, today reported revenues of $19.1 million for the first six months of 2005 compared to revenues of $11.3 million for the prior year period. Net income was $1.8 million for the six months ended June 30, 2005, compared to a net income of $0.5 million in the prior period. The 2005 operating margins were reduced by pass-though charges incurred during the first quarter. Net income attributable to common shareholders for the six months ended June 30, 2005 was $1.4 million, or $0.04 per diluted share, compared to net income attributable to common shareholders in 2004 of $0.2 million, or $0.01 per diluted share.
"During the quarter we saw increased activity in our prevention service segment, and our business development efforts over the last year have brought a predictable and sustainable activity level," said Jerry Winchester, President and Chief Executive Officer. "Year-to-date prevention revenues were $7.2 million as compared to $4.3 million for the same period last year, which puts us right on plan for this segment. While well control and emergency response provide our historical foundation, they remain largely unpredictable as seen in the lower revenues of the current quarter. We will continue to develop profitable new business opportunities that are not emergency-related. The success of these programs enables us to meet our customer’s risk management needs, and we believe that they will provide the foundation for our continued growth."
For the quarter ended June 30, 2005, revenues were $4.8 million compared with revenues of $6.9 million for the same period of 2004. Net income (loss) from continuing operations for the quarter was $(0.7) million compared to $0.5 million for the second quarter of 2004. Net income (loss) attributable to common shareholders was $(0.9) million, or $(0.03) per diluted share in the second quarter of 2005, compared to a net income in the prior period of $0.3 million, or $0.01 per diluted share.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $3.1 million for the six months ended June 30, 2005, compared to $2.0 million in the prior period. For the second quarter, EBITDA was $11,000 compared to $1.4 million in the second quarter of 2004.
Operational highlights include:
-
Prevention revenues were $4.1 million for the second quarter of 2005 compared to $2.2 million for the second quarter of 2004. During the quarter, the company continued to expand its scope of services in Algeria and Venezuela through new and amended SafeGuard contracts.
-
Response revenues were $0.6 million for the second quarter of 2005 as compared to $4.7 million in the second quarter of 2004.
-
At June 30, 2005, the company reported working capital of $3.2 million and total debt of $6.2 million.
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
SUMMARY OF OPERATING RESULTS
(UNAUDITED)
(in thousands except per share amounts)
| |
Three Months Ended June 30, |
Six Months Ended June 30, |
| |
2005 |
2004 |
2005(1) |
2004 |
| Revenue |
$4,762 |
$6,936 |
$19,052 |
$11,347 |
| Earnings Before Interest, Taxes, Depreciation and Amortization |
$11 |
$1,400 |
$3,071 |
$1,980 |
| Income (Loss) From Continuing Operations |
$(663) |
$485 |
$1,810 |
$493 |
| Income (Loss) From Discontinued Operations, net of income taxes |
$-- |
$(2) |
$-- |
$(2) |
| Net Income (Loss) |
$(663) |
$483 |
$1,810 |
$491 |
| Preferred Dividend Requirements and Accretion |
$216 |
$194 |
$427 |
$316 |
| Net Income (Loss) Attributable to Common Shareholders |
$(879) |
$289 |
$1,383 |
$175 |
|
Basic Earnings Income (Loss) Per Common Share:
Continuing Operations
Discontinued Operations
Net Income (Loss)
|
$(0.03)
$0.00
$(0.03) |
$0.01
$0.00
$0.01 |
$0.05
$0.00
$0.05 |
$0.01
$0.00
$0.01 |
|
Diluted Earnings Income (Loss) Per Common Share:
Continuing Operations
Discontinued Operations
Net Income (Loss)
|
$0.03)
$0.00
$(0.03) |
$0.01
$0.00
$0.01 |
$0.04
$0.00
$0.04 |
$0.01
$0.00
$0.01 |
|
Weighted Average Common Shares Outstanding
Basic
Diluted
|
29,499
29,499 |
27,360
27,878 |
29,495
31,063 |
27,330
27,880 |
(1) Revenue for the six months ended June 30, 2005, include $5,341 of pass-through third-party charges related to personnel security incurred in the first quarter of 2005.
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
RECONCILIATION BETWEEN CONSOLIDATED STATEMENT OF
OPERATIONS AND EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(UNAUDITED)
(in thousands except per share amounts)
| |
Three Months Ended June 30, |
Six Months Ended June 30, |
| |
2005 |
2004 |
2005 |
2004 |
| Net Income (Loss) |
$(663) |
$483 |
$1,810 |
$491 |
| Loss from Discontinued Operations, Net of Income Taxes |
$-- |
$2 |
$-- |
$2 |
| Income Tax Expense |
$179 |
$286 |
$383 |
$609 |
| Interest Expense and Other |
$276 |
$377 |
$438 |
$377 |
| Depreciation and Amortization |
$219 |
$252 |
$440 |
$501 |
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (1) |
$11 |
$1,400 |
$3,071 |
$1,980 |
(1) Earnings before Interest, Income taxes, Depreciation, and Amortization (“EBITDA”) is a non-GAAP financial measure, as it excludes amounts or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculate and presented in accordance with GAAP in financial statements. “GAAP” refers to generally accepted accounting principles in the United States. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Pursuant to the requirements of Regulation G, whenever we refer to a non-GAAP financial measure, we also present the most directly comparable financial measure and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure and such comparable GAAP financial measure. Management believes that EBITDA may provide additional information with respect to the company’s performance or ability to meet its debt service and working capital requirements.
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
| |
June 30, 2005
(unaudited) |
December 31, 2004 |
| Current Assets |
$10,000 |
$13,618 |
| Current Liabilities (a) |
$6,791 |
$11,065 |
| Total Working Capital (b) |
$3,209 |
$2,553 |
| Total Assets |
$14,188 |
$18,393 |
| Long Term Debt and Notes Payable (c) |
$4,659 |
$6,148 |
| Total Liabilities |
$11,450 |
$17,213 |
| Total Stockholders' Equity |
$2,738 |
$1,180 |
(a) June 30, 2005 and December 31, 2004 includes $296 and $332, respectively, for the current portion of Troubled Debt Restructuring interest related to the 2000 refinancing of the Prudential Loan Agreement.
(b) The Company defines Working Capital as all current assets, including cash, less all current liabilities, which includes current maturities of long-term debt.
(c) Net of current maturities of long term debt. June 30, 2005 and December 31, 2004 includes $459 and $598, respectively, for the long-term portion of Troubled Debt Restructuring interest related to the 2000 refinancing of the Prudential Loan Agreement.
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