|
BOOTS &
COOTS ANNOUCES RESULTS FOR THE FIRST NINE MONTHS OF 2005
HOUSTON,
November 9, 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 $23.7 million for the first nine
months of 2005 compared to revenues of $14.7 million for the prior year
period. Net income was $1.3 million for the nine months ended September
30, 2005, compared to a net loss of $0.8 million in the prior year
period. The 2005 operating margins were reduced by pass-though charges
incurred during the first quarter. Net income attributable to common
shareholders for the nine months ended September 30, 2005 was $0.7
million, or $0.02 per diluted share, compared to a net loss
attributable to common shareholders for the nine months ended September
30, 2004 of $1.4 million, or $0.05 per diluted share.
“Prevention service segment revenues from SafeGuard contracts
in
Algeria, Kazakhstan and India were up during the quarter. In Venezuela
however, we experienced delays due to certain management changes at the
customer level,” said Jerry Winchester, President and Chief
Executive Officer. “While we expect these delays to be
temporary,
our SafeGuard business will be affected in the fourth quarter, so we
are revising our estimate for prevention revenues from $15.0 million to
$13.5 million for 2005. We have an excellent relationship with, and
perform critical services for our contractor in Venezuela, and we
expect to be fully operational again under that contract in the first
quarter of 2006.”
“Results continue to strengthen,” continued
Winchester.
“Revenues from the rest of our SafeGuard business are at or
above
plan and steadily continue to increase quarter over quarter. This
supports the fact that our strategy to focus on the prevention business
is the right strategy. The impact that our programs make for our
customers will continue to create opportunities for us and move us
toward our goal to become the premier pressure control services company
in the industry.”
For the quarter ended September 30, 2005, revenues were $4.6 million
compared with revenues of $3.3 million for the same period of 2004. Net
loss from continuing operations for the quarter was $0.5 million
compared to a $1.3 million loss for the third quarter of 2004. Net loss
attributable to common shareholders was $0.7 million, or $0.02 per
diluted share in the third quarter of 2005, compared to a net loss in
the prior year period of $1.6 million, or $0.05 per diluted share.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
was $3.3 million for the nine months ended September 30, 2005, compared
to $1.5 million in the prior year period. For the third quarter of
2005, EBITDA was $0.3 million compared to $(0.5) million in the third
quarter of 2004.
Operational highlights include:
- Prevention revenues were $3.1 million for the third
quarter
of 2005, compared to $1.9 million for the third quarter of 2004.
Prevention revenues were $10.3 million for the nine months ended
September 30, 2005, compared to $6.3 million in the prior period.
- Response revenues were $1.5 million for the third
quarter
of 2005, as compared to $1.4 million in the third quarter of 2004.
Response revenues were $13.3 million for the nine months ended
September 30, 2005, compared to $8.4 million in the prior period.
- At September 30, 2005, the company reported working
capital of $2.5 million and total debt of $5.9 million.
BOOTS
& COOTS INTERNATIONAL WELL CONTROL, INC.
SUMMARY OF OPERATING RESULTS
(unaudited)
(in
thousands except per share amounts)
|
|
Three Months Ended
Sept
30,
|
Nine
Months Ended
Sept
30,
|
|
|
2005
|
2004
|
2005(1)
|
2004
|
|
Revenue
|
$4,612
|
$3,308
|
$23,664
|
$14,655
|
|
Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA)
|
$262
|
$(475)
|
$3,333
|
$1,505
|
|
Income
(Loss) From Continuing Operations
|
$(469)
|
$(1,310)
|
$1,341
|
$(817)
|
|
Income
(Loss) From Discontinued Operations, Net of Income Taxes
|
$--
|
$(23)
|
$--
|
$(25)
|
|
Net Income (Loss)
|
$(469)
|
$(1,333)
|
$1,341
|
$(842)
|
|
Preferred Dividend Requirements
and Accretion
|
$222
|
$219
|
$649
|
$535
|
|
Net Income (Loss) Attributable
to
Common Shareholders
|
$(691)
|
$(1,552)
|
$692
|
$(1,377)
|
|
Basic Earnings (Loss)
Per Common Share:
-
Continuing
Operations
-
Discontinued
Operations
-
Net Income (Loss)
|
$(0.02)
$0.00
$(0.02)
|
$(0.05)
$0.00
$(0.05)
|
$0.02
$0.00
$0.02
|
$(0.05)
$0.00
$(0.05)
|
|
Diluted Earnings (Loss) Per
Common Share:
-
Continuing
Operations
-
Discontinued
Operations
-
Net
Income (Loss)
|
$(0.02)
$0.00
$(0.02)
|
$(0.05)
$0.00
$(0.05)
|
$0.02
$0.00
$0.02
|
$(0.05)
$0.00
$(0.05)
|
|
Weighted Average Common Shares
Outstanding
|
29,499
29,499
|
28,405
28,405
|
29,497
31,376
|
27,380
27,380
|
(1)
Revenue for the nine months ended
September 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)
|
|
Three Months Ended
Sept
30,
|
Nine
Months Ended
Sept
30,
|
|
|
2005
|
2004
|
2005
|
2004
|
|
Net Income (Loss)
|
$(469)
|
$(1,333)
|
$1,341
|
$(842)
|
|
Loss from Discontinued
Operations, Net of Income Taxes
|
$--
|
$23
|
$--
|
$25
|
|
Income Tax Expense
|
$494
|
$247
|
$877
|
$856
|
|
Interest Expense and
Other
|
$85
|
$309
|
$523
|
$686
|
|
Depreciation and
Amortization
|
$152
|
$279
|
$592
|
$780
|
|
Earnings
Before Interest, Taxes, Depreciation and Amortization (EBITDA) (1)
|
$262
|
$(475)
|
$3,333
|
$1,505
|
-
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)
|
|
Sept
30,
2005
(unaudited)
|
December 31,
2004
|
|
Current Assets
|
$9,578
|
$13,618
|
|
Current
Liabilities(a)
|
$7,058
|
$11,065
|
|
Total Working Capital
(b)
|
$2,520
|
$2,553
|
|
Total Assets
|
$13,656
|
$18,393
|
|
Long
Term Debt and Notes Payable (c)
|
$4,296
|
$6,148
|
|
Total Liabilities
|
$11,354
|
$17,213
|
|
Total Shareholders’
Equity
|
$2,302
|
$1,180
|
-
September
30, 2005 and December 31, 2004 includes $278 and $332, respectively,
for the current portion of Troubled Debt Restructuring interest related
to the 2000 refinancing of the Prudential Loan Agreement.
-
The
Company defines Working Capital as all current assets, including cash,
less all current liabilities, which includes current maturities of
long-term debt.
-
Net
of current maturities of long term debt. September 30, 2005 and
December 31, 2004 includes $396 and $598, respectively, for the
long-term portion of Troubled Debt Restructuring interest related to
the 2000 refinancing of the Prudential Loan Agreement.
^Back to Top
|
News
